Document:

Exhibit 4.1

 

 

 

FIRST
SUPPLEMENTAL INDENTURE

 

DATED
AS OF JUNE 7, 2005

 

TO
THE

 

INDENTURE

 

DATED
AS OF DECEMBER 8, 2003

 

BETWEEN

 

CONCORD
COMMUNICATIONS, INC.,

as Issuer,

 

AND

 

WILMINGTON
TRUST COMPANY,

as Trustee

 

3.0%
Convertible Senior Notes due 2023

 

 

 

 

FIRST SUPPLEMENTAL INDENTURE dated as of June 7,
2005 (this “First  Supplement”) to the INDENTURE dated as of December 8,
2003 (such Indenture, as so supplemented and as the same may be further
amended, supplemented or otherwise modified from time to time, the “Indenture”),
between Concord Communications, Inc., a Massachusetts corporation, as
Issuer (the “Company”), and Wilmington Trust Company, a Delaware banking
corporation, as Trustee (the “Trustee”) for the 3.0% Convertible Senior
Notes due 2023 (the “Notes”).  All
capitalized terms used herein which are not otherwise specifically defined
herein shall have the respective meaning as ascribed thereto in the Indenture.

 

W I T N E S S E T H :

 

WHEREAS, the parties have heretofore executed
and delivered the Indenture providing for the issuance of the Notes;

 

WHEREAS, pursuant to that certain Agreement
and Plan of Merger (the “Merger  Agreement”), dated as of April 7,
2005, by and among the Company, Computer Associates International, Inc., a
Delaware corporation (“Computer  Associates”), and Minuteman
Acquisition Corp., a Delaware corporation and a wholly owned subsidiary of
Computer Associates (“Merger  Sub”), which Merger Agreement was
filed as Exhibit 2.1 to the Current Report on Form 8-K filed by
Concord with the Securities and Exchange Commission on April 7, 2005,
Merger Sub is merging with and into the Company, with the Company as the
surviving corporation (the “Merger”);

 

WHEREAS, pursuant to Section 12.4 of the
Indenture, the Company and the Trustee are required to enter into a
supplemental indenture as a result of the Merger;

 

WHEREAS, pursuant to Section 11.1(c) of the Indenture, the Company and the Trustee may amend the Indenture without the consent of any Holder to provide for conversion rights of Holders of the Notes upon the occurrence of the Merger; and
 

WHEREAS, the Board of Directors of the
Company has authorized the execution and delivery of this First Supplement.

 

NOW THEREFORE, in consideration of the
foregoing and for other good and valuable consideration, the receipt of which
is hereby acknowledged, the Company and the Trustee mutually covenant and agree
as follows:

 

ARTICLE I

AMENDMENTS

 

SECTION 1.1  Conversion Right.  The Indenture is hereby amended to provide
that, subject to and from and after the effective time of the Merger, the Notes
shall cease to be convertible into the right to receive Common Stock and shall
instead be convertible solely into the right to receive from the Company that
amount of Merger Consideration (as defined below) that a converting Holder of
Notes would have been entitled to receive upon the Merger had such Notes been
converted into Common Stock immediately prior to the Merger, without interest
thereon.

 

 

SECTION 1.2  Merger Consideration.

 

(a)        Pursuant
to the Merger Agreement: (i) each share of Common Stock (other than shares
owned by the Company as treasury stock or owned by Computer Associates or
Merger Sub, which will be cancelled in accordance with the terms of the Merger
Agreement, and Dissenting Shares (as defined in the Merger Agreement)) issued
and outstanding immediately prior to the Merger shall be automatically
converted into the right to receive $17.00 in cash per share, without
interest (the “Merger  Consideration”); and (ii) upon the
Merger, all such shares of Common Stock shall no longer be outstanding and
shall automatically be cancelled and shall cease to exist, and each holder of a
certificate representing any such shares of Common Stock shall cease to have
any rights with respect thereto, except the right (other than in respect of
Dissenting Shares) to receive the Merger Consideration upon the surrender of
such certificate in accordance with Merger Agreement, without interest;

 

(b)        In
the event that the Company changes the number of shares of Common Stock or
securities convertible or exchangeable into or exercisable for shares of Common
Stock issued and outstanding prior to the Merger as a result of a
reclassification, stock split (including a reverse stock split), stock dividend
or distribution, recapitalization, merger, subdivision, issuer tender or
exchange offer, or other similar transaction, the Merger Consideration shall be
equitably adjusted in conjunction with all applicable adjustments set forth in Article XII
of the Indenture.

 

ARTICLE II
MISCELLANEOUS

 

SECTION 2.1  The Indenture.  Except as amended by this First Supplement,
the Indenture shall remain in full force and effect in accordance with its
terms.  This First Supplement shall be
deemed to be part of the Indenture.

 

SECTION 2.2  Governing Law.  This Indenture shall be governed by, and
construed in accordance with, the laws of the State of New York.

 

SECTION 2.3  Legal, Valid and Binding Obligation.  Each party hereto hereby represents and
warrants that this First Supplement is a legal, valid and binding obligation of
such party and is enforceable against such party in accordance with its terms.

 

SECTION 2.4  References to Supplemental Indenture.  Whenever in any certificate, letter, notice
or other instrument reference is made to the Indenture, such reference without more shall include reference to this First
Supplement.

 

SECTION 2.5  Multiple Originals.  All parties may sign any number of copies of
this First Supplement.  Each signed copy
shall be an original, but all of them together shall represent the same
agreement.

 

SECTION 2.6  Severability.  In case any one or more of the provisions in
this First Supplement shall be held invalid, illegal or unenforceable, in any
respect for any reason, the validity, legality and enforceability of any such
provision in every other respect and of the

 

2

 

remaining provisions
shall not in any way be affected or impaired thereby, it being intended that
all of the provisions hereof shall be enforceable to the full extent permitted
by law.

 

SECTION 2.7  Effects of Headings.  The headings in the sections in this First
Supplement are for convenience only. 
Said headings shall not be deemed to be part of this First Supplement or
affect the construction hereof and in no way define, limit, extend or describe
the scope or intent of the provisions herein.

 

SECTION 2.8  Trustee Disclaimer.  In addition to and without limitation of the
provisions of Article I, the Trustee accepts the amendment of the
Indenture effectuated by this First Supplement and agrees to perform the trust
created by the Indenture as hereby amended, but only upon the terms and
conditions set forth in the Indenture, including the terms and provisions
defining and limiting the liabilities and responsibilities of the Trustee,
which terms and provisions shall in like manner define and limit its
liabilities and responsibilities in the performance of the trust created by the
Indenture as amended by this First Supplement, and without limiting the generality
of the foregoing, the Trustee shall not be responsible in any manner whatsoever
for or with respect to any of the recitals or statements contained herein, all
of which recitals and statements are made solely by the Company, or for or with
respect to (i) the validity or sufficiency of this First Supplement or any
of the terms or provisions hereof, (ii) the proper authorization hereof by
the Company by corporate action or otherwise, (iii) the due execution
hereof by the Company or (iv) the consequences (direct or indirect and
whether deliberate or inadvertent) of any amendment herein provided for, or any
consent obtained, and the Trustee makes no representation with respect to such
matters.

 

[remainder of page intentionally left blank]

 

3

 

IN
WITNESS WHEREOF this First Supplement has been executed by duly authorized
representatives of the parties hereto as of the day, month, and year first
above written.

 

 

	
   

  	
  Company:

  
	
   

  	
   

  
	
   

  	
  CONCORD COMMUNICATIONS, INC.,

  
	
   

  	
  As Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Blaeser

  	
   

  
	
   

  	
  Name:

  	
  John Blaeser

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Trustee:

  
	
   

  	
   

  
	
   

  	
  WILMINGTON TRUST COMPANY,

  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Mary C. St. Amand

  	
   

  
	
   

  	
  Name:

  	
  Mary C. St. Amand

  
	
   

  	
  Title:

  	
  Assistant Vice President

  
					

 

 

[Signature page to Supplemental Indenture]Exhibit 10.1

 

RESTRICTED
STOCK AGREEMENT

 

THIS RESTRICTED STOCK
AGREEMENT (this “Agreement”), dated as of                    ,
2005 (the “Grant Date”), is entered into between Ebix, Inc., a                   
corporation (the “Company”), and                                       
(the “Grantee”).

 

WHEREAS,
the Company previously established and currently maintains the Ebix, Inc.
1996 Stock Incentive Plan, as amended (the “Plan”), for the purpose of
attracting and retaining directors, officers and other key employees of and
consultants to the Company and its Subsidiaries and to provide such persons
with incentives and rewards for superior performance;

 

WHEREAS,
Grantee is an individual who is to render valuable service to the Company, and
this Agreement is executed pursuant to, and is intended to carry out the
purposes of, the Plan in connection with the Company’s grant of restricted
stock to Grantee;

 

WHEREAS,
for purposes of the Agreement, the definitions of capitalized terms contained
in the Plan are hereby incorporated herein by reference, except to the extent
that any term is specifically defined in this Agreement;

 

NOW, THEREFORE,
in consideration of the above premises and the mutual covenants and agreements
hereinafter set forth and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
have agreed, and do hereby agree, as follows:

 

1.                                      Definitions.  For purposes of this Agreement, the following
terms are defined as set forth below:

 

“Cause” means (i) the conviction of the
Grantee for a felony under Federal law or the law of the state in which such
action occurred, (ii) dishonesty in the course of fulfilling the Grantee’s
duties as an employee or director of, or consultant or advisor to, the Company
or (iii) willful and deliberate failure on the part of the Grantee to
perform such duties in any material respect. 
Notwithstanding the foregoing, if the Grantee and the Company or a
Subsidiary have entered into an employment or services agreement which defines
the term “Cause” (or a similar term), such definition shall govern for purposes
of determining whether such Grantee has been terminated for Cause for purposes
of this Agreement.  The determination of
Cause shall be made by the Committee, in its sole discretion.

 

“Change in Control”  shall mean the happening of any of the
following events:

 

(a)                                  An acquisition by any
individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or
more of either (1) the then outstanding Common Shares (the “Outstanding
Company Common Shares”) or (2) the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Company

 

 

Voting Securities”); excluding, however, the following: (1) any
acquisition directly from the Company, other than an acquisition by virtue of
the exercise of a conversion privilege unless the security being so converted
was itself acquired directly from the Company, (2) any acquisition by the
Company; (3) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by the Company or any corporation controlled by
the Company; or (4) any acquisition by any Person pursuant to a
transaction which complies with clauses (1), (2) and (3) of subsection (a) of
this definition; or

 

(b)                                 Within any period of
24 consecutive months, a change in the composition of the Board such that the
individuals who, immediately prior to such period, constituted the Board (such
Board shall be hereinafter referred to as the “Incumbent Board”) cease for any
reason to constitute at least a majority of the Board; provided, however, for
purposes of this definition, that any individual who becomes a member of the
Board during such period, whose election, or nomination for election by the
Company’s stockholders, was approved by a vote of at least a majority of those
individuals who are members of the Board and who were also members of the
Incumbent Board (or deemed to be such pursuant to this proviso) shall be
considered as though such individual were a member of the Incumbent Board; but,
provided further, that any such individual whose initial assumption of office
occurs as a result of either an actual or threatened election contest (as such
terms are used in Rule 14a-11 of Regulation 14A promulgated under the
Exchange Act) or other actual or threatened solicitation of proxies or consents
by or on behalf of a Person other than the Board shall not be so considered as
a member of the Incumbent Board; or

 

(c)                                  The approval by the
stockholders of the Company of a reorganization, merger or consolidation or
sale or other disposition of all or substantially all of the assets of the
Company (“Corporate Transaction”); excluding, however, such a Corporate
Transaction pursuant to which (1) all or substantially all of the
individuals and entities who are the beneficial owners, respectively, of the
Outstanding Company Common Shares and Outstanding Company Voting Securities
immediately prior to such Corporate Transaction will beneficially own, directly
or indirectly, more than 50% of, respectively, the outstanding shares of common
stock, and the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors, as the case may be, of
the corporation resulting from such Corporate Transaction (including, without
limitation, a corporation which as a result of such transaction owns the
Company or all or substantially all of the Company’s assets, either directly or
through one or more subsidiaries) in substantially the same proportions as
their ownership, immediately prior to such Corporate Transaction, of the
Outstanding Company Common Shares and Outstanding Company Voting Securities, as
the case may be, (2) no Person (other than the Company; any employee
benefit plan (or related trust) sponsored or maintained by the Company, by any
corporation controlled by the Company, or by such corporation resulting from
such Corporate Transaction) will beneficially own, directly or indirectly, more
than 50% of, respectively, the outstanding shares of common stock of the
corporation resulting from such Corporate Transaction or the combined voting
power of the outstanding voting securities of such corporation entitled to vote
generally in the election of directors, except to the extent that such
ownership existed with respect to the Company prior to the

 

2

 

Corporate Transaction, and (3) individuals who were members of the
Board immediately prior to the approval by the stockholders of the Corporation
of such Corporate Transaction will constitute at least a majority of the
members of the board of directors of the corporation resulting from such
Corporate Transaction; or

 

(d)                                 The approval by the
stockholders of the Company of a complete liquidation or dissolution of the
Company, other than to a corporation pursuant to a transaction which would
comply with clauses (1), (2) and (3) of subsection (iii) of
this definition, assuming for this purpose that such transaction were a
Corporate Transaction.

 

“Disability” means mental or physical illness
that entitles the Grantee to receive benefits under the long-term disability
plan of the Company or a Subsidiary, or if the Grantee is not covered by such a
plan or the Grantee is not an employee of the Company or a Subsidiary, a mental
or physical illness that renders a Grantee totally and permanently incapable of
performing the Grantee’s duties for the Company or a Subsidiary; provided,
however, that a Disability shall not qualify under this Agreement if it is the
result of (i) a willfully self-inflicted injury or willfully self-induced
sickness; or (ii) an injury or disease contracted, suffered or incurred
while participating in a criminal offense. 
Notwithstanding the foregoing, if the Grantee and the Company or a
Subsidiary have entered into an employment or services agreement which defines
the term “Disability” (or a similar term), such definition shall govern for
purposes of determining whether such Grantee suffers a Disability for purposes
of this Agreement.  The determination of
Disability shall be made by the Committee, in its sole discretion.  The determination of Disability for purposes
of this Agreement shall not be construed to be an admission of disability for
any other purpose.

 

“Retirement” means termination of a Grantee’s
employment on or after the date the Grantee attains age 65 or termination of a
Grantee’s employment on or after the date the Grantee attains age 55 if the
Grantee has at least ten years of Service to the Company or a Subsidiary at
such time.

 

“Service” shall mean any and all services
provided by the Grantee on a periodic basis to the Company or a Subsidiary in
the capacity of an employee, non-employee director, consultant or other
independent contractor.

 

2.                                      Grant
of Restricted Shares.   Subject to
and upon the terms and conditions set forth in this Agreement, Company hereby
grants to Grantee, as of the Grant Date, and the Grantee hereby accepts the
grant of Common Shares on a restricted basis, as set forth herein (the “Restricted
Shares”).

 

3.                                      Stock Certificates and Escrow.  Upon issuance, the certificates for
Restricted Shares shall be held in escrow by the Company until, and to the
extent, the Restricted Shares shall cease to be restricted and shall become
non-forfeitable, and the Grantee shall own such shares free of all restrictions
otherwise imposed by this Agreement. 
Restricted Shares, together with any assets or securities held in escrow
hereunder, shall be (i) surrendered to the Company for cancellation upon
forfeiture, if any, of such Restricted

 

3

 

Shares by the Grantee hereunder or (ii) subject to the provisions
of Paragraph 4, released to the Grantee to the extent the Restricted Shares are
no longer subject to any of the restrictions otherwise imposed by this
Agreement.

 

4.                                      Transfer Restrictions.  At any time prior to vesting in accordance
with this Paragraph 4, the Restricted Shares or any interest therein cannot be
directly or indirectly transferred, sold, assigned, pledged, hypothecated or
otherwise disposed of.  Subject to the
provisions of Paragraphs 5 and 6 of this Agreement, one third (1/3rd) of the
Restricted Shares shall cease to be restricted and shall become non-forfeitable
(thereafter being referred to as “Unrestricted Shares”) commencing one year
from the Grant Date and each year anniversary thereafter until the 3rd
anniversary of the Grant Date, at which time the Restricted Shares shall be
fully vested.  For purposes of
calculating the number of Restricted Shares that become Unrestricted Shares as
set forth above, share amounts shall be rounded to the nearest whole share
amount.

 

5.                                      Cessation of Service.  Notwithstanding anything to the contrary in
the Plan or in this Agreement, the provisions of this Paragraph 5 shall apply
in the event the Grantee ceases to provide Service to the Company or a
Subsidiary at any time prior to the date on which the Restricted Shares shall
become Unrestricted Shares as set forth in Paragraph 4:

 

(a)                                  Should Grantee die
while providing Service to the Company or a Subsidiary; should the Grantee cease
by reason of Disability or Retirement to provide Service to the Company or a
Subsidiary; or should the Company or a Subsidiary terminate the Service of the
Grantee for any reason other than for Cause at any time prior to the date on
which the Restricted Shares shall cease to be restricted and shall become
non-forfeitable as set forth in Paragraph 4, then the Restricted Shares
immediately shall become Unrestricted Shares, and the Grantee immediately shall
own such shares free of all restrictions otherwise imposed by this Agreement.

 

(b)                                 Should Grantee
terminate Grantee’s Service to the Company or a Subsidiary for any reason other
than death, Disability or Retirement or should the Company or a Subsidiary
terminate the Grantee for Cause at any time prior to the date on which the
Restricted Shares shall become Unrestricted Shares as set forth in Paragraph 4,
then the Restricted Shares which have not previously become Unrestricted Shares
as set forth in Paragraph 4 shall be forfeited immediately.

 

6.                                      Change in Control.  Notwithstanding anything to the contrary in
the Plan or in this Agreement, should the Company or Subsidiary for which the
Grantee performs Service undergo a Change in Control at any time prior to the
date on which the Restricted Shares shall become Unrestricted Shares as set
forth in Paragraph 4, then the Restricted Shares shall immediately become
Unrestricted Shares, and the Grantee immediately shall own such shares free of
all restrictions otherwise imposed by this Agreement.

 

7.                                      Adjustment in Restricted Shares.  The Board may make or provide for such
adjustments as provided for in Paragraph 10 of the Plan.

 

4

 

8.                                      Privilege
of Stock Ownership.  The Grantee
shall be entitled to receive any dividends that become payable on or after the
Grant Date with respect to any Restricted Shares; provided, however, that no
dividends shall be payable to, or for the benefit of, the Grantee for
Restricted Shares with respect to record dates occurring prior to the Grant
Date, or with respect to record dates occurring on or after the date, if any,
on which the Grantee has forfeited such  Restricted Shares.  The Grantee shall be entitled to vote the
Restricted Shares on or after the Grant Date to the same extent as would have
been applicable to the Grantee if the Restricted Shares had then been fully
vested and non-forfeitable; provided, however, that the Grantee shall not be
entitled to vote the Restricted Shares with respect to record dates for such
voting rights occurring prior to the Grant Date, or with respect to record
dates occurring on or after the date, if any, on which the Grantee has
forfeited the Restricted Shares.

 

9.                                      Governing
Law.  The interpretation,
performance, and enforcement of this Agreement shall be governed by the laws of
the State of Delaware without resort to that State’s conflict-of-laws rules.

 

10.                               Compliance
with Laws and Regulations.

 

(a)                                  The issuance of
Restricted Shares shall be subject to compliance by the Company and Grantee
with all applicable requirements of law relating thereto and with all
applicable regulations of any stock exchange on which shares of the Company’s
Stock may be listed at the time of such exercise and issuance.

 

(b)                                 In connection with the
grant of Restricted Shares, the Grantee shall execute and deliver to the
Company such representations in writing as may be requested by the Company in
order for it to comply with the applicable requirements of Federal and State
securities laws.

 

11.                               Successors
and Assigns.  Except as otherwise
expressly set forth in this Agreement, the provisions of this Agreement shall
inure to the benefit of, and be binding upon, the succeeding administrators,
heirs, and legal representatives of the Grantee and the successors and assigns
of the Company.

 

12.                               Liability
of Company.  The inability of
Company to obtain approval from any regulatory body having authority deemed by
the Company to be necessary to the lawful issuance and transfer of any
Restricted Shares pursuant to this Agreement shall relieve the Company of any
liability with respect to the non-issuance or transfer of the Restricted Shares
as to which such approval shall not have been obtained. The Company, however,
shall use its best efforts to obtain all such approvals.

 

13.                               No
Duty to Disclose Information.  The Company (or any
Subsidiary) shall not have any duty or obligation to disclose affirmatively to
a record or beneficial holder of Common Shares, Restricted Shares or
Unrestricted Shares, and such holder shall have no right to be advised of, any
material information regarding the Company (or any Subsidiary) at any time
prior to, upon or in connection with receipt of Restricted Shares.

 

5

 

14.                               No
Impairment of Rights.  This
Agreement shall not in any way affect the right of the Company to adjust,
reclassify, reorganize or otherwise make changes in its capital or business
structure or to merge, consolidate, dissolve, liquidate or sell or transfer all
or any part of its business or assets.

 

15.                               No
Employment/Service Contract. 
Nothing in this Agreement or in the Plan shall confer upon the Grantee
any right to continue in the Service of the Company (or any of its
Subsidiaries) for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Company (or any such Subsidiary) or the
Grantee, which rights are hereby expressly reserved by each party, to terminate
the Grantee’s Service at any time for any reason whatsoever, with or without
cause.

 

16.                               Notices.  Any notices, consents, or other communication
required to be sent or given hereunder by any of the parties shall in every
case be in writing and shall be deemed properly served if (a) delivered
personally, (b) sent by registered or certified mail, in all such cases
with first class postage prepaid, return receipt requested, (c) delivered
to a nationally recognized overnight courier service or (d) sent by
facsimile transmission (with a copy sent by first class mail) to the parties at
the addresses set forth below:

 

If to the Company:                                             Ebix, Inc.

1900 E. Golf Road

Suite 1200

Schaumburg, IL 60173-5037

Attention: Richard J. Baum

 

With a copy
to:                                                             Katten
Muchin Zavis Rosenman

525 West Monroe Street, Suite 1900

Chicago, IL 60661-3693

Attention: Mark D. Wood

 

If to the Grantee,
at the address set forth on the signature page hereof.

 

17.                               Construction.  Notwithstanding
any other provision of this Agreement, this Agreement and the Restricted
Shares granted hereunder are made and granted pursuant to the Plan and are in
all respects limited by and subject to the express provisions of the Plan, as
amended from time to time. The reasonable interpretation and construction of
the Plan, this Agreement and the Restricted Shares by the Board, and such rules and
regulations as may be adopted by the Board for the purpose of administering the
Plan, shall be final and binding upon the Grantee (or any other person or
persons holding the Restricted Shares).

 

18.                               Entire
Agreement.  This Agreement, together with the Plan,
constitute the entire obligation of the parties hereto with respect to the
subject matter hereof and shall supersede any prior expressions of intent or
understanding with respect to this transaction.

 

6

 

19.                               Amendment.  Any
amendment to this Agreement shall be in writing and signed by the Company and
the Grantee.

 

20.                               Waiver;
Cumulative Rights.  The failure or delay of either party to
require performance by the other party of any provision hereof shall not affect
its right to require performance of such provision unless and until such
performance has been waived in writing. 
Each and every right hereunder is cumulative and may be exercised in
part or in whole from time to time.

 

21.                               Counterparts.  This
Agreement may be signed in two counterparts, each of which shall be an
original, but both of which shall constitute but one and the same instrument.  For the purposes of this Paragraph 21, a
faxed copy shall be accepted as an original.

 

22.                               Headings.  The
headings contained in this Agreement are for reference purposes only and shall
not affect the meaning or interpretation of this Agreement.

 

23.                               Severability.  If
any provision of this Agreement shall for any reason be held to be invalid or
unenforceable, such invalidity or unenforceability shall not effect any other
provision hereof, and this Agreement shall be construed as if such invalid or
unenforceable provision were omitted.

 

24.                               Tax
Consequences.  The Company shall
not be liable or responsible in any way for any and all tax (including any
withholding tax) consequences relating to the Restricted Shares, and the
Grantee agrees to undertake to determine, and be responsible for, any and all
tax (including any withholding tax) consequences to himself or herself with
respect to the Restricted Shares. 
Notwithstanding any other provision of this Agreement, the Restricted
Shares, together with any other assets or securities held in escrow hereunder,
shall not be released to the Grantee unless, as provided in Paragraph 12 of the
Plan, the Grantee shall have paid to the Company, or made arrangements
satisfactory to the Company regarding the payment of, any Federal, state, local
or foreign taxes of any kind required by law to be withheld with respect to the
grant of the Restricted Shares or the lapse of restrictions otherwise imposed
by this Agreement.

 

25.                               Section 83(b) Election.  The Grantee understands that Section 83
of the Code may tax as compensation income the difference between the amount
paid for the Restricted Shares, if any, and the fair market value of the
Restricted Shares as of the date any restrictions on the Restricted Shares
lapse in the absence of an election under Section 83(b) of the Code.
In this context, “restriction” means the forfeitability of the Restricted
Shares pursuant to the terms of this Agreement. 
In the event the Common Shares are registered under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), “restriction” with
respect to officers, directors, and 10% stockholders may also mean the
six-month period after the acquisition of the Restricted Shares during which
sales of certain securities by such officers, directors, and ten percent (10%)
stockholders would give rise to liability under Section 16(b) of the
Exchange Act.  The Grantee understands that
he may elect to be taxed at the time the Grantee receives the Restricted Shares
and while the Restricted Shares are subjected to restrictions rather than
waiting to be taxed on the Restricted

 

7

 

Shares when and as the
restrictions lapse. 
The Grantee realizes that he may choose this tax treatment by filing an
election under Section 83(b) of the Code with the Internal Revenue
Service within thirty (30) days from the date hereof and by filing a copy of
such election with his tax return for the tax year in which the Restricted
Shares were subjected to the restrictions. 
THE GRANTEE UNDERSTANDS THAT FAILURE TO MAKE THIS FILING IN A TIMELY
MANNER MAY RESULT IN THE RECOGNITION OF COMPENSATION INCOME BY THE GRANTEE,
AS THE RESTRICTIONS LAPSE, ON ANY DIFFERENCE BETWEEN THE PURCHASE PRICE, IF
ANY, AND THE FAIR MARKET VALUE OF THE RESTRICTED SHARES AT THE TIME SUCH
RESTRICTIONS LAPSE.  THE GRANTEE
ACKNOWLEDGES THAT IT IS THE GRANTEE’S SOLE RESPONSIBILITY AND NOT THE COMPANY’S
TO TIMELY FILE THE ELECTION UNDER SECTION 83(b) OF THE CODE.  THE GRANTEE ACKNOWLEDGES THAT HE SHALL
CONSULT HIS OWN TAX ADVISERS REGARDING THE ADVISABILITY OR NON-ADVISABILITY OF
MAKING THE ELECTION UNDER SECTION 83(b) OF THE CODE AND ACKNOWLEDGES
THAT HE SHALL NOT RELY ON THE COMPANY OR ITS ADVISERS FOR SUCH ADVICE.

 

IN WITNESS WHEREOF, the parties have executed
this Restricted Stock Agreement on the day and year first above written.

 

	
   

  	
  Ebix, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Employee:

  
	
   

  	
   

  
	
   

  	
   

  

 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]