Document:

Exhibit 10.31

 

STOCK PURCHASE AGREEMENT

 

This
STOCK PURCHASE AGREEMENT (this “Agreement”) is made as of 16th April 2008
by and between Ebix, Inc., a Delaware corporation (the “Company”) and Brit
Insurance Holdings PLC. (“Brit”)

 

In
consideration of the mutual covenants of the parties set forth in this
Agreement and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.          Sale and Purchase of Company
Shares. Simultaneously upon
the execution and subject to the terms and conditions of this Agreement, Brit
shall sell, convey, transfer and deliver all right, title and interest in and
to 400,000 shares of common stock of Ebix (the “Shares”), free and clear of all
Liens (as defined below) to the Company and the Company shall purchase the
Shares from Brit for sixty dollars ($60) per Share, namely an aggregate
purchase price of twenty four million dollars ($24,000,000)(the “Purchase Price”).

 

2.          Deliveries. Upon the execution of the Agreement by the
Company and Brit, (a) Brit shall deliver to the company the certificates
evidencing the company Shares, duly endorsed in blank or accompanied by duly
executed stock transfer powers, and (b) the Company shall pay the Purchase
Price for the Company Shares for the Brit by wire transfer of immediately
available funds pursuant to wiring instructions provided in writing by Brit.

 

3.          Warranties and
Representations of Brit. Brit
hereby represents and warrants to the Company as follows:

 

(a)         Title to company Shares. Brit is the  sole record and beneficial owner of the Shares, free and clear of any claims, liens, charges or
encumbrances whatsoever (collectively, “Liens”), and has good and marketable
title to the Shares owned by it, and has full right, power and authority to
sell the Shares to the Company as provided herein. There are no agreements,
arrangements, rights or commitments of any character relating to the sale,
purchase, redemption or other transfer of the Shares to be sold, assigned,
conveyed, transferred and delivered by Brit hereunder. Brit has sole voting
power and
sole power of disposition and
sole power to agree to all of the matters set forth in this Agreement, in each
case with respect to all of the Shares, with no limitations, qualifications or
restrictions on such rights and powers, except to the extent that its power of
disposition may be subject to

 

 

compliance
with applicable United States federal and state securities laws, and Brit has
not granted and will not grant such rights and powers to any other person or
entity.

 

(b)        No Conflicts, Advice. Brit has the power and authority to engage in the transactions  contemplated hereby, and neither the execution and delivery of this
Agreement, nor  the consummation of the transactions contemplated
hereby, does or will violate any constitution, statute, regulation, rule,
injunction, judgment, order, decree, ruling, charge or other restriction of any
government, governmental agency, regulatory or self-regulatory body or court to
which Brit is subject or any provision of its organizational documents or other
similar governing instruments, or conflict with, violate or constitute a
default under any agreement, credit facility, debt or other Instrument or
understanding to which Brit is a party. Brit has consulted such legal, tax and
investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase
of the Shares.

 

(c)         Purchase Price. Brit is familiar with current public
disclosure regarding the operations, assets, condition (financial and other)
and future prospects of the Company and considers the Purchase Price to be fair
and reasonable as of the date hereof.

 

(d)        Shares.
Brit is not selling the Sale
Shares “on the basis of ” (as defined in Rule 10b5-1 of the Securities
Exchange Act of 1934, as amended) any material, non-public information about
the Shares or the Company.

 

4.               Representations, Warranties
and Undertakings of the Company.

 

(a)         No Conflicts, Advice. The Company hereby represents and warrants to
Brit that it has the power and authority to engage in the transactions
contemplated hereby, and that neither the execution and delivery of this
Agreement, nor the consummation of the transactions contemplated hereby, does
or will violate any constitution, statute, regulation, rule, injunction,
judgment, order, decree, ruling, charge or other restriction of any government,
governmental agency, regulatory or self-regulatory body or court to which the
Company is subject or any provision of its organizational documents or other
similar governing instruments, or conflict with, violate or constitute a
default under any agreement, credit facility, debt or other instrument or understanding
to which the Company is a party. The Company has consulted such

 

 

legal,
tax and investment advisors as it, in its sole discretion, has deemed necessary
or appropriate in connection with its purchase of the Shares.

 

(b)        Compliance, Indemnification. The Company hereby represents and warrants to
Brit that it has complied and will comply with all applicable United States
federal and state securities laws and other laws, rules and orders
applicable to its acquisition of the Shares. The Company undertakes and agrees
to fully indemnify and hold harmless Brit and its affiliates, officers, agents
and employees from and against any losses, expenses, claims, damages or
liabilities suffered by any of them related to or arising directly or
indirectly out of or in connection with the Company’s acquisition of the
Shares.

 

(C)       Shares. The Company hereby acknowledges and agrees
that the Shares are being offered and sold to it by Brit in a transaction
exempt from registration under the US Securities Act of 1933, as amended (the “Securities
Act”), and that the Shares may not be resold absent registration under or an
exemption from the Securities Act.

 

5.               Miscellaneous

 

(a)         Severability. If any provision of this Agreement is held to
be illegal, invalid or unenforceable under any present or future law, and if
the rights or obligations of any party hereto under this Agreement will not be
materially and adversely affected thereby, (i) such provision will be
fully severable, (ii) this Agreement will be construed and enforced as if
such illegal, invalid or unenforceable provision had never comprised a part
hereof, (iii) the remaining provisions of this Agreement will remain in
full force and effect and will not be affected by  the illegal, invalid or unenforceable
provision, or by its severance here from and (iv) in lieu of such illegal,
invalid or unenforceable provision, there will be added automatically as a
party of this Agreement a legal, valid and enforceable provision as similar in
terms to such illegal, invalid or unenforceable provisions as may be possible.

 

(b)        Amendment, Waiver. This Agreement may be amended, or any provision of the Agreement may be
waived only in writing signed by the parties hereto. The waiver by any party
hereto of a breach of any

 

 

provision
of this Agreement shall not operate or be construed as a continuing waiver or
as a waiver of any other breach.

 

(c)         Further Assurances. Each party will execute all documents and take such other actions as
any other party may reasonably request in order to consummate the transactions
provided for herein and to accomplish the purposes of this Agreement.

 

(d)        Counterparts. This Agreement may be executed simultaneously in two (2) or more
counterparts, including counterparts bearing a facsimile signature copy, each
of which shall be deemed an original but all of which together shall constitute
one and the same agreement and shall become effective when one or more
counterparts have been signed by each of the parties hereto and delivered to
the other. The parties hereto intend that a facsimile signature copy of the
Agreement shall have the same force and effect as an original signature.

 

(e)         Governing Law. This Agreement shall be construed and
enforced in accordance with and all  questions concerning the construction,
validity, interpretation, and performances of this Agreement shall be governed
by the internal laws of the State of Georgia, without giving effect to
provisions thereof regarding conflict of laws.

 

(f)           Survival. All representations, warranties, covenants
and agreements made herein shall survive the consummation of the transactions
contemplated by this Agreement.

 

(g)        Binding Effect. This Agreement will be binding upon and inure to the benefit of the
parties hereto and their respective heirs, successors and permitted assigns,
but will not be assignable or delegable by either party hereto without the
prior written consent of the other party hereto.

 

(h)        No Strict Construction. The language used in this Agreement will be
deemed to be the language chosen by the parties hereto to express their mutual
intent, and no rule of strict construction will be applied against any
party hereto.

 

(End of document, signature page follows)

 

 

IN
WITNESS WHEREOF, the parties have executed this Stock Purchase Agreement as of
the date first above written.

 

 

EBIX, Inc.

 

	
  By:

  	
  /s/
  Robin Raina

  	
   

  
	
  Name:
  Robin Raina

  	
   

  
	
  Title:
  President and CEO

  	
   

  

 

 

Brit
Insurance Holdings plc

 

	
  By:

  	
   /s/ Matthew Scales F.D.

  	
   

  
	
  Name: Matthew Scales F.D.

  	
   

  
	
  Title:  
  Director

  	
   

  

 

 

STOCK
TRANSFER POWER

 

FOR
VALUE RECEIVED, Brit Insurance Holdings, PLC hereby sells, assigns and
transfers unto Ebix, Inc., a Delaware corporation (“Ebix”), 400,000 shares
of common stock (the “Shares”) of Ebix standing in its name on the books of
Ebix and does hereby irrevocably constitute and appoint the Secretary of Ebix
to transfer the said Shares on the books of Ebix with full power of
substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Brit
  Insurance Holdings plc:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  In
  presence of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name:Exhibit 10.1

 

AGREEMENT

 

THIS
AGREEMENT (“Agreement”) is made and entered into on this 11th
day of April 2008 by and among (i) Zale Corporation and Zale Delaware, Inc.
(collectively “Zale”), (ii) Claire’s Stores, Inc. and Claire’s
Boutiques, Inc. (collectively “Claire’s”), and (iii) John A.
Zimmermann (“Zimmermann”).

 

Recitals

 

WHEREAS, Zimmermann and
Zale are parties to that certain Settlement and Release Agreement, entered into
in March 2008 (the “Settlement Agreement”), and certain provisions that
survived the execution and delivery of the Settlement Agreement contained in
that certain Employment Agreement, dated February 16, 2006, between
Zimmermann and Zale Corporation (the “Employment Agreement”).  Terms used herein and not defined herein
shall have the meanings attributed thereto in the Settlement Agreement.

 

WHEREAS, Zimmermann has
entered into an employment arrangement with Claire’s, which is scheduled to
commence on April 14, 2008 (the “Commencement Date”).

 

WHEREAS, Zale has
agreed to specifically carve out Claire’s and its direct and indirect
subsidiaries and parents that operate or service Claire’s specialty retail
stores, including Icing stores and Afterthought stores, (collectively “Claire’s
Parties”), from the definition of Competing Business contained in paragraph 11
of the Settlement Agreement and paragraph 9 of the Employment Agreement in
consideration of a payment of $125,000 from Claire’s.

 

WHEREAS, pursuant to
paragraph 7(a)(ii) of the Settlement Agreement, and subject to the terms
and conditions of the Settlement Agreement, Zale is to provide future Severance
Pay (as defined in the Settlement Agreement).

 

NOW
THEREFORE, in consideration of the recitals and mutual
promises, covenants and agreements set forth herein, the parties agree as follows:

 

1.             Although Zimmermann disputes
whether Claire’s Parties fall within the definition of Competing Business as
used in the Settlement Agreement and in the Employment Agreement, Zale agrees
to specifically carve out the Claire’s Parties from the definition of Competing
Business as used in the Settlement Agreement and in the Employment Agreement solely
for the purpose of Zimmermann becoming employed by Claire’s in consideration of
a payment by Claire’s by wire transfer to Zale of $125,000 (the “Claire’s Payment”),
to be paid by Claire’s upon execution of this Agreement by all parties.  As a result of this carve out, Zale agrees to
not seek any enforcement or take any action against the Claire’s Parties or
Zimmermann under paragraph 11 of the Settlement Agreement or paragraph 9 of the
Employment Agreement based on Zimmermann’s 

 

 

employment
by Claire’s; however, this carve out does not waive or modify any of the other
obligations that Zimmermann has or owes to Zale under the Employment Agreement
and/or under the Settlement Agreement including, but not limited to the no
hire/non-solicitation of employees, trade secrets, confidentiality, and
proprietary information obligations of Zimmermann contained in paragraphs 10
and 11 of the Employment Agreement and paragraphs 8 and 10 of the Settlement
Agreement.  In the event the Commencement
Date does not occur for any reason, this Agreement shall be null and void, neither
Claire’s nor Zale shall have any obligations under this Agreement, and Zale
shall return to Claire’s any Claire’s Payment that has been actually received
by Zale.

 

2.             Claire’s and Zimmermann represent
to Zale that the salary to be paid to Zimmermann by Claire’s during the period
between the Commencement Date and February 19, 2009 (assuming all of the
following occur: (a) the Commencement Date occurs, (b) Zimmermann
remains employed through February 19, 2009, and (c) Zale pays all
Severance Pay to Zimmermann for the period prior to the Commencement Date) is
greater than the future Severance Pay owed subsequent to the Commencement Date by
Zale to Zimmermann under paragraph 7(a)(ii) of the Settlement Agreement.

 

3.             Other than as specifically modified
hereby, this Agreement shall not act as a modification or wavier by either Zale
or Zimmermann with respect to their rights or obligations under the Settlement
Agreement or under the Employment Agreement.

 

4.             The parties agree to keep this
Agreement and the terms contained herein confidential, and will not disclose
this Agreement or its terms to persons outside of their respective companies,
other than legal counsel, outside accountants, or in response to any court
order or other legal process, except as necessary to enforce its terms or as
may be required by law.  In that
connection, Claire’s, Zimmermann and Zale agree and acknowledge that Zale and
Claire’s may disclose this Agreement or portions hereof in public filings with
the United States Securities and Exchange Commission.

 

5.             This Agreement may be executed in
counterparts, which when taken together shall constitute one Agreement.  A signature sent by fax or electronic means
on this Agreement shall constitute an original signature for all purposes.

 

2

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

 

	
  ZALE
  CORPORATION

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Rodney Carter

  	
   

  
	
  Its:

  	
  EVP,
  CAO and CFO

  	
   

  
	
   

  	
   

  
	
  ZALE
  DELAWARE, INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Rodney Carter

  	
   

  
	
  Its:

  	
  EVP,
  CAO and CFO

  	
   

  
	
   

  	
   

  	
   

  
	
  CLAIRE’S
  STORES, INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Rebecca Orand

  	
   

  
	
  Its:

  	
  SVP
  and General Counsel

  	
   

  
	
   

  	
   

  
	
  CLAIRE’S
  BOUTIQUES, INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Rebecca Orand

  	
   

  
	
  Its:

  	
  SVP
  and General Counsel

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  John A. Zimmermann

  	
   

  
	
  JOHN
  A. ZIMMERMANN

  	
   

  
				

 

3

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