Document:

exv10w11

Exhibit 10.11

CBAYSYSTEMS HOLDINGS LIMITED

 

2007 EQUITY INCENTIVE PLAN

 

Approved by the Company on 12 June 2007

&

Amended by the Board of Directors on 4 September 2008

 

 

INDEX

	 	 	 	 	 
	 	 	Page
	1. PURPOSE
	 	 	1	 
	2. ADMINISTRATION
	 	 	1	 
	3. PARTICIPANTS
	 	 	1	 
	4. SHARES AVAILABLE UNDER THE PLAN
	 	 	1	 
	5. TYPES OF BENEFITS
	 	 	2	 
	6. SHARE OPTIONS
	 	 	2	 
	7. INCENTIVE STOCK OPTIONS
	 	 	2	 
	8. SHARE APPRECIATION RIGHTS
	 	 	3	 
	9. RESTRICTED SHARES AND RESTRICTED STOCK UNITS
	 	 	3	 
	10. OTHER AWARDS
	 	 	4	 
	11. PERFORMANCE TARGETS
	 	 	4	 
	12. CHANGE IN CONTROL
	 	 	5	 
	13. TERMINATION OF EMPLOYMENT/SERVICE
	 	 	5	 
	14. ADJUSTMENTS
	 	 	5	 
	15. SUB PLANS
	 	 	5	 
	17. AMENDMENTS
	 	 	6	 
	18. TERMINATION
	 	 	6	 

 

 

CBAYSYSTEMS HOLDINGS LIMITED

2007 EQUITY INCENTIVE PLAN

	1.	 	Purpose
	 
	 	 	The purpose of the CBaySystems Holdings Limited 2007 Equity Incentive Plan (the “Plan”) is
to attract and retain directors, officers, consultants and other employees for CBaySystems
Holdings Limited (the “Company”) and its subsidiaries (together the “Group”) and to provide
such persons with incentives and rewards for superior performance.
	 
	2.	 	Administration
	 
	2.1	 	The Plan will be administered by a duly authorised committee of the board of directors of
the Company (the “Board”).
	 
	2.2	 	The Board will have authority to construe and interpret the Plan and any benefits granted
under the Plan, to establish and amend rules for the Plan administration, to change the terms
and conditions of options and other benefits at or after grant, and to make all other
determinations which it deems necessary or advisable for the administration of the Plan.
	 
	2.3	 	In considering the making of awards under this Plan:

	 	(a)	 	the Board will have regard to (i) at any time while Shares are traded on AiM
(being the market of that name operated by the London Stock Exchange), the provisions
of AiM Rule 21, and (ii) the provisions of any code of dealing adopted by the Company
relating the dealings of directors and other relevant persons in securities of the
Company; and
	 
	 	(b)	 	awards over Shares or by reference to the value of Shares may only be
authorised by the Board during a period of 42 days following (i) the date of
announcement of the annual or interim results of the Company or (ii) the date on which
listing particulars or a prospectus or document containing equivalent information in
relation to Shares of the Company is published or (iii) the date of adoption of the
Plan, provided that grants outside these periods may be authorised by the Board in
circumstances which, in its discretion and acting in good faith, it considers
sufficiently exceptional to justify the grant of awards at that time.

	3.	 	Participants
	 
	3.1	 	Participants in the Plan may consist of officers, consultants or other employees of the
Company or any one or more of its subsidiaries selected by the Board considering all factors
that it deems relevant in such selection and in determining the type and amount of their
respective benefits.
	 
	3.2	 	Designation of a participant in any year shall not require the Board to designate that
person to receive a benefit in any other year or to receive the same type or amount of
benefit as granted to that participant in any other year or as granted to any other
participant in any year.
	 
	4.	 	Shares available under the Plan
	 
	4.1	 	The aggregate number of ordinary shares of the Company (“Shares”) which may be issued
and/or transferred pursuant to awards made under the Plan will not exceed, when aggregated
with the number of Shares issued or remaining issuable or transferred or remaining

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	 	 	transferable in respect of awards made under the Plan, ten percent (10%) of the number of
Shares then in issue. (When calculating this limit, Shares issued or remaining issuable
and treasury shares transferred or remaining transferable by the Company will be taken
into account)
	 
	4.2	 	The market value per Share at any time for the purposes of this Plan will be determined in
such manner as the Board considers equitable, or as required by law or regulation.
	 
	4.3	 	The Company will, with respect to all Shares issued pursuant to an award under the Plan,
apply for the same listings as are applicable to Shares already in issue.
	 
	5.	 	Types of benefits
	 
	5.1	 	Benefits under the Plan shall consist of share options, share appreciation rights,
restricted shares, restricted stock units and other share, share based or cash awards, all as
described below. Such benefits will not be pensionable.
	 
	5.2	 	Each right granted under the Plan will be evidenced by means of an agreement, certificate or
other form of written record approved by the Board setting out the terms and conditions of
the award and may be in an electronic medium or limited to notation in the books and records
of the Company.
	 
	5.3	 	Each award will be personal to the participant and will not be capable of being assigned,
transferred, mortgaged, charged or otherwise disposed of or encumbered (whether in whole or
in part). If the participant does or suffers any act or thing whereby he or she would or
might be deprived of the legal or beneficial ownership of an award, the award will be
forfeited immediately.
	 
	6.	 	Share Options
	 
	6.1	 	Share options (“Share Options”) consist of a right to purchase Shares which may be granted
to participants at any time as determined by the Board, subject to the provisions of this
Plan.
	 
	6.2	 	The Board will determine the terms of any Share Option including, but without limitation, (a)
the number of Shares subject to each Share Option, (b) the option price per Share (which may
not be less than the market value per Share at grant), (c) the terms and conditions upon which
the Share Option may be exercised and its expiry date (being no later than the tenth
anniversary of its grant), and (d) the terms for payment of the option price upon exercise,
including by way of cash payment or such other methods of payment as the Board, in its
discretion, deems appropriate.
	 
	7.	 	Incentive Stock Options
	 
	7.1	 	Notwithstanding the other provisions of this Plan to the contrary, to the extent
that Share
Options are granted to US persons, which options are intended to qualify as “Incentive
Stock Options” under Section 422 of the US Internal Revenue Code, the following provisions
will apply:

	 	(a)	 	the maximum number of Shares for which Incentive Stock Options may be
issued
shall be 1,233,366 Shares, subject to Rule 4.1 and to adjustment as provided in
Section 14 of this Plan provided that any such adjustment will be made only if and
to the extent that such adjustment would not cause any option intended to qualify
as an Incentive Stock Option to fail so to qualify;

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	 	(b)	 	the persons eligible to receive Incentive Stock Options (potential “Optionees”)
shall be U.S. persons who are determined to be key employees of the Group who meet
the definition of “employees” under Section 3401(c) of the Code;
	 
	 	(c)	 	the price payable on exercise of an Incentive Stock Option (the “Option
Price”) shall be not less than the fair market value of the underlying Shares on the
date that the Incentive Stock Option is granted.

	7.2	 	Incentive Stock Options shall be granted within ten years from the date this Plan is adopted
or the date this Plan is approved by shareholders, whichever is earlier.
	 
	7.3	 	Incentive Stock Options shall not be exercisable after the expiration of ten years from the
date of grant.
	 
	7.4	 	Incentive Stock Options shall not be transferable other than by will or the laws of descent
and distribution and is exercisable during the Optionee’s lifetime only by him.
	 
	7.5	 	If the Optionee owns stock possessing more than ten per cent. of the combined voting power
of all classes of stock of the Company, such Optionee may only be granted an Incentive Stock
Option if the Option price is at least 110 per cent. of the fair market value of a Share on,
and the Option is not exercisable after, the expiration of five years from the date that the
Option is granted.
	 
	7.6	 	To the extent that the aggregate fair market value of Shares with respect to which Incentive
Stock Options are exercisable for the first time by any individual during any calendar year
exceeds US$100,000, such options shall be treated as Share Options which are not Incentive
Stock Options.
	 
	8.	 	Share appreciation rights
	 
	8.1	 	Share appreciation rights (“SARs”) consist of a right to receive from the Company an amount
determined by the Board expressed as a percentage (not exceeding 100 per cent.) of the
difference between the market value per Share at the time of grant of the SAR and at the time
of exercise. SARs may be granted to participants at any time as determined by the Board,
subject to the terms of this Plan, in tandem with Share Options or on a free-standing basis.
	 
	8.2	 	The Board will determine the terms of any SAR including, but without limitation, (a) the
number of Shares subject to each SAR, (b) the amount payable on exercise of a SAR (being not
less than the option price per Share if granted in tandem with a Share Option and not less
than the market value per Share at grant if granted on a free-standing basis), (c) the terms
and conditions upon which the SAR may be exercised and its expiry date (being no later than
the tenth anniversary of its grant), and (d) the terms for payment by the Company on exercise
of the SAR, whether in cash or Shares or any combination thereof as determined by the Board
at the time of grant.
	 
	9.	 	Restricted Shares and Restricted stock units
	 
	9.1	 	Restricted Shares (“Restricted Shares”) consist of Shares which may be granted or sold to
participants subject to such terms and conditions (including the risk of forfeiture and
prohibition on transfer) as determined by the Board, subject to the provisions of this Plan.
	 
	9.2	 	Restricted stock units (“RSUs”) consist of a right which may be granted or sold to
participants to receive Shares or cash at the end of a specified period after vesting in
accordance with the terms and conditions of such grant as determined by the Board subject to
the provisions of this Plan.

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	9.3	 	The Board will determine the terms of any award of Restricted Shares or RSUs
including, but without limitation, restrictions and conditions such as (a) a prohibition
against sale, assignment, transfer, mortgage, charge or other disposal or encumbrance for
a specified period and (b) a requirement that the participant forfeits (or, in the case of
shares or rights sold to the participant, resells to the Company) such shares or rights in
the event of termination of employment during the period of restriction.
	 
	9.4	 	The grant or sale of Restricted Shares or RSUs may be made without additional consideration
or in consideration of a payment by a participant that is less than the market value per
Share at the date of award of such Restricted Shares or RSUs.
	 
	10.	 	Other awards
	 
	10.1	 	The Board may, subject to limitations under applicable law, grant to any participants such
other award that may be denominated or payable in, valued in whole or in part by reference
to, or otherwise based on or related to Shares or factors that may influence the value of
such Shares including, without limitation, convertible or exchangeable debt securities, other
rights convertible or exchangeable into Shares, purchase rights for Shares, awards with the
value in payment contingent upon performance of the Company or specified companies in the
Group, affiliates or other business units thereof or any other factors designated by the
Board, and awards valued by reference to the book value of Shares or the value of securities
of, or the performance of specified companies in the Group or affiliates or other business
units of the Company or companies in the Group.
	 
	10.2	 	The Board will determine the terms and conditions of such awards.
	 
	10.3	 	Shares delivered pursuant to an award in the nature of a purchase right granted under this
section 10 will be purchased for such consideration, paid for at such time, by such methods
and in such forms (including, without limitation, cash, Shares, other awards, notes or other
property) as the Board will determine.
	 
	10.4	 	Cash awards, as the only element of or part of or supplemental to any other award granted
under this Plan, may also be granted pursuant to this section 10.
	 
	10.5	 	The Board may grant Shares as a bonus, or may grant other awards in lieu of obligations of
the Company or any company in the Group to pay cash or deliver other property under this Plan
or under other plans or compensatory arrangements, subject to such terms as will be
determined by the Board.
	 
	11.	 	Performance targets
	 
	11.1	 	Awards under this Plan may be made subject to the attainment of performance targets in such
objective manner as the Board considers appropriate. Performance targets may be set by
reference to the performance of any one or more of the Company and other companies in the
Group or to the performance of the participant or of the subsidiary, division, department,
regional function within the Company or a Group company in which the participant is employed
or engaged. Performance targets may also be made relative to the performance of other
companies.
	 
	11.2	 	The Board may, in circumstances it considers in good faith to be appropriate, subsequently
amend any target or condition imposed in accordance with this section 11 should an event or
events have occurred that cause the Board reasonably to consider that the amended target or
condition would be a fairer measure of the performance of the participant and that the

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	 	 	amended condition would be no more difficult to satisfy than it would have been without
such amendment.
	 
	12.	 	Change in Control
	 
	12.1	 	All awards under this Plan shall prescribe the extent to which, subject to any reasonable
Board discretion, upon a Change in Control (as defined below) of the Company, outstanding
Share Options and SARs will become vested and exercisable, restrictions on Restricted Shares
and RSUs will lapse and performance targets will be deemed achieved and all other terms and
conditions met, and all other awards will be delivered or paid.
	 
	12.2	 	For the purposes of this Plan, a “Change in Control” shall mean such event or events as are
prescribed at the time of the grant of an award under this Plan covering prescribed changes
in ownership of the Shares, or in the voting control, of the Company (which may include any
reconstruction or winding up of the Company).
	 
	13.	 	Termination of employment/service
	 
	13.1	 	Awards under this Plan may prescribe the extent to which, subject to any reasonable Board
discretion, in the case of termination of employment or service by reason of death,
disability, redundancy or retirement, or on the transfer of an employing company or business
out of the direct or indirect ownership of the Company, or in other special circumstances,
Share Options and SARs will become vested and exercisable, restrictions on Restricted Shares
and RSUs will lapse and performance targets will be deemed achieved and all other terms and
conditions met, and all other awards will be delivered or paid.
	 
	13.2	 	In all other circumstances, awards under the Plan will lapse on termination of employment or
service.
	 
	14.	 	Adjustments
	 
	14.1	 	The Board may make or provide for such adjustments in the number and kind of Shares and/or
the option price or other price of Shares subject to outstanding awards granted under this
Plan as it may, in its discretion and in good faith, determine as equitably required to
prevent dilution or enlargement of the rights of participants that would otherwise result from
any change in the capital structure of the Company including, but without limitation, from (a)
any stock dividend, stock split, combination of Shares, recapitalisation or other change in
the capital structure of the Company, or (b) any merger, consolidation, spin off,
reorganisation, partial or complete liquidation or other distribution of assets, issuance of
rights or warrants to purchase securities, or (c) any other corporate transaction or event
having an effect similar to any of the foregoing (other than a Change in Control).
	 
	14.2	 	In the event of any transaction or event described in section 14.1 above, the Board, in its
discretion, may provide in substitution for any or all outstanding awards under this Plan
such alternative consideration as it, in good faith, may determine to be equitable in the
circumstances, and the Board may require in connection therewith the surrender of all awards
so replaced.
	 
	15.	 	Sub Plans
	 
	15.1	 	In order to facilitate the making of any grant or combination of grants under this Plan,
the Board may provide such special terms for awards to participants as the Board may consider
necessary or appropriate to accommodate differences in local law, tax policy or custom.

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	15.2	 	The Board may approve such supplements to or amendments, restatements or
alternative
versions of this Plan as it may consider necessary or appropriate for such purposes
without thereby affecting the terms of this Plan as in effect for any other purpose
provided that the provisions in this Plan in relation to:

	 	(a)	 	the definition and scope of participants under this Plan (see section 3.1 above);
	 
	 	(b)	 	the limitations on the amount of Shares subject to the Plan (see section 4.1
above); and
	 
	 	(c)	 	the adjustment provisions in section 14 above,

	 	 	cannot be altered to the advantage of participants without the prior approval of
shareholders of the Company in general meeting (except for minor amendments to benefit the
administration of the Plan, to take account of any change in legislation or to obtain or
maintain favourable tax, exchange control or regulatory treatment for participants in the
Plan or for the Company or any companies in the Group).
	 
	16.	 	Taxes
	 
	16.1	 	To the extent that the Company or any other company in the Group is required to withhold
any taxes or pay any taxes in any jurisdiction (including without limitation social
security or equivalent contributions) in connection with any payment made to or benefit
realised by a participant or other person under this Plan, and the amounts available to
the Company or relevant Group company for such withholding or payment are insufficient, it
will be a condition of receipt by the participant of such payment or the realisation of
such benefit that the participant or such other person makes arrangements satisfactory to
the Company for payment or reimbursement of such taxes required to be withheld (or paid by
the Company or relevant Group Company) which arrangements (in the discretion of the Board)
may include relinquishment of a portion of such benefit.
	 
	17.	 	Amendments
	 
	17.1	 	The Board may at any time amend the Plan in whole or in part provided that any amendment
which may require approval by the shareholders of the Company in order to comply with
applicable law and the rules of AIM and/or any other relevant investment exchange will not be
effective until such approval has been obtained.
	 
	17.2	 	The Board may amend the terms of any award granted under this Plan provided that no amendment
to the material advantage of participants may be made without the prior approval of the
shareholders of the Company (other than a change to the performance targets in accordance with
Section 11 of this Plan) and no such amendment may impair the rights of any participant
without his or her consent.
	 
	18.	 	Termination
	 
	18.1	 	No grant will be made under this Plan more than ten years after the date on which it is first
approved by shareholders of the Company but all grants made on or prior to such date will
continue in effect thereafter subject to the terms of such grant and of this Plan.

6exv10w12

Exhibit 10.12

DATED          

 

SHARE OPTION AGREEMENT

THE CBAYSYSTEMS HOLDINGS LIMITED

2007 EQUITY INCENTIVE PLAN

 

 

 

SHARE OPTION AGREEMENT

DATED:

PARTIES

	(1)	 	CBAYSYSTEMS HOLDINGS LIMITED (registered in the British Virgin Islands with no. 1389112)
whose registered office is at Palm Grove House, P.O. Box 3190, Road Town, British Virgin
Islands (the “Company”); and
	 
	(2)	 	___________ (the “Optionholder”).

RECITALS:

	(A)	 	The Optionholder is an employee of the Company.
	 
	(B)	 	The Company has agreed to grant to the Optionholder an option over ordinary shares in the
capital of the Company pursuant to the terms of the CBaySystems Holdings Limited 2007 Equity
Incentive Plan.
	 
	(C)	 	It is intended that the option evidenced by this agreement shall not be an incentive stock
option as defined in Section 422 of the US Internal Revenue Code of 1986, as amended, and any
regulations promulgated thereunder.

OPERATIVE PROVISIONS:

	1.	 	Interpretation
	 
	1.1	 	The following words and expressions shall bear the following meanings except where the
context otherwise requires:

	 	 	 	 	 

	 

	 	“Admission”
	 	means admission of the Shares to trading on AIM (being the
market of that name operated by the London Stock Exchange)
or any other recognised investment exchange as defined in
section 285 of the Financial Services and Markets Act
2000;
	 
	 	 	 	 
	 

	 	“Board”
	 	means the board of directors of the Company;
	 
	 	 	 	 
	 

	 	“Exercise Date”
	 	means the date on which the Option or part thereof is
exercised in accordance with clause 4;
	 
	 	 	 	 
	 

	 	“Group”
	 	means the Company together with any subsidiaries of the
Company, within the meaning of section 1159 of the
Companies Act 2006;
	 
	 	 	 	 
	 

	 	“Grant Date”
	 	means ______;
	 
	 	 	 	 
	 

	 	“Option”
	 	means the right granted pursuant to clause 2 of this
agreement to acquire the Shares at the Option Price;

 

 

	 	 	 	 	 

	 

	 	“Option Period”
	 	means the period commencing on the Grant Date and ending
on the tenth anniversary of the Grant Date;
	 
	 	 	 	 
	 

	 	“Option Price”
	 	means
______ per Share, as adjusted (if appropriate) in
accordance with clause 6;
	 
	 	 	 	 
	 

	 	“Shares”
	 	means ordinary shares in the capital of the Company;
	 
	 	 	 	 
	 

	 	“Tax Liability”
	 	means the amount of all income and other taxes and social
security contributions (which, for the avoidance of doubt,
shall include employee’s and employer’s social security
contributions and medicare) or taxes which any member of
the Group would be required to withhold or account for to
the relevant taxation authority;
	 
	 	 	 	 
	 

	 	“vest”
	 	refers to the Optionholder becoming entitled on the
occurrence of an event after the Grant Date to exercise
some or all of the Option and the term “vested” shall be
interpreted accordingly.

	1.2	 	Except insofar as the context otherwise requires:

	 	(a)	 	any reference to a statute or statutory provision shall be construed as if it
referred also to that provision as for the time being amended or re-enacted; and
	 
	 	(b)	 	any reference to the singular number shall be construed as if it referred also
to the plural number and vice versa.

	1.3	 	References to clauses are to clauses in this agreement.
	 
	2.	 	Option
	 
	 	 	The Company hereby grants to the Optionholder with effect from the Grant Date an option to
acquire _______ Shares at the Option Price on the terms of this agreement.
	 
	3.	 	Conditions of Option
	 
	3.1	 	The Option shall, subject to earlier exercise being permitted under clauses 3.3 or 5, vest
over the following proportions of shares on the following dates:

	 	(a)	 	33.33% of the Shares subject to the Option (rounded down to the nearest whole
Share) shall vest on the first anniversary of the Grant Date (the “First Anniversary”);
	 
	 	(b)	 	16.66% of the Shares subject to the Option (rounded down to the nearest whole
Share) shall vest on the date that is six months after the First Anniversary;
	 
	 	(c)	 	16.66% of the Shares subject to the Option (rounded down to the nearest whole
Share) shall vest on the second anniversary of the Grant Date (the “Second
Anniversary”);
	 
	 	(d)	 	16.66% of the Shares subject to the Option (rounded down to the nearest whole
Share) shall vest on the date that is six months after the Second Anniversary; and
	 
	 	(e)	 	the balance of the Shares subject to the Option shall vest on the third
anniversary of the Grant Date.

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	3.2	 	The Option may not be validly exercised later than the end of the Option Period and shall
automatically lapse at the end of the Option Period.
	 
	3.3	 	If the Optionholder ceases to be an employee or officer of, or consultant or adviser to, any
member of the Group:

	 	(a)	 	in circumstances where the Optionholder’s service agreement or other terms of
his service or relationship with any member of the Group is terminated by the
applicable member of the Group without Cause (as defined in clause 3.5) other than
pursuant to clause 3.3 (b) or 3.4(c); or
	 
	 	(b)	 	in circumstances where the Optionholder terminates his service agreement or
other terms of his service or relationship with any member of the Group for a Good
Reason, as (and to the extent that) such term is defined in the Optionholder’s service
agreement or other terms of his service or relationship with any member of the Group
(other than pursuant to clause 3.3(a) or 3.4(c))

	 	 	any balance of Options that are not exercised at the date upon which the Optionholder ceases
to be an employee, officer of, consultant or adviser to any member of the Group shall
immediately become exercisable pursuant to the terms of this Agreement.
	 
	3.4	 	If the Optionholder ceases to be an employee or officer of, or consultant or adviser to, any
member of the Group (a “Leaver”):

	 	(a)	 	in circumstances involving a breach by the Optionholder of the restrictive
covenants under his service agreement with any member of the Group and/or where the
Optionholder’s employment or engagement is terminated for Cause (as defined in clause
3.5), the Option shall immediately cease to be exercisable and shall lapse immediately
save that the Board may, in its absolute discretion, otherwise permit the Option to be
exercised in whole or in part during such period as the Board may specify (after which
the Option shall lapse), provided that such period shall end no later than the last day
of the Option Period and provided further that the Option cannot be exercised over a
number of Shares greater than that arrived at if the Optionholder is a Leaver pursuant
to sub-clause (b) below; or
	 
	 	(b)	 	for any reason other than one specified in sub-clause (a) or (c) of this clause
3.4, the Option shall continue to be exercisable over those Shares in relation to which
the Option has vested on the date that the Optionholder becomes a Leaver (including,
without limitation, any portion of the Option that becomes vested upon the
Optionholder’s termination date pursuant to clause 3.3) provided that such exercise
must take place within the period of ninety days following the date that the
Optionholder becomes a Leaver, failing which the Option shall lapse; or
	 
	 	(c)	 	as a result of death or disability, the Option shall continue to be exercisable
over those Shares in relation to which the Option has vested on the date that the
Optionholder becomes a Leaver provided that such exercise must take place within the
period of one year following the date that the Optionholder becomes a Leaver, failing
which the Option shall lapse; and

	 	 	any Options that are not vested at the time the Optionholder becomes a Leaver shall lapse
immediately. Notwithstanding the provisions of this clause 3.4, if there is a Management
Stockholder’s Agreement (a “MSA”) in effect between the Company and the Optionholder at the
date the Optionholder becomes a Leaver and such MSA provides for a post-termination exercise
period with respect to the Options that is different from the terms set forth in this

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	 	 	clause 3.4, the provisions of the MSA shall be deemed incorporated herein by reference and
shall apply to the Options in lieu of this clause 3.4.
	 
	3.5	 	If the Optionholder is party to an employment, consulting or severance agreement with the
Company that contains a definition of “cause” for termination of employment or other
relationship, “Cause” shall have the meaning ascribed to such term in such agreement.
Otherwise, “Cause” shall mean wilful misconduct by the Optionholder or wilful failure by the
Optionholder to perform his responsibilities to the Company (including, without limitation,
breach by the Optionholder of any provision of any employment, consulting, advisory,
nondisclosure, non-competition or other similar agreement between the Optionholder and the
Company), as determined by the Board, which determination shall be conclusive. The
Optionholder shall also be considered to have been discharged for “Cause” if the Board
determines, within 30 days after the Optionholder’s resignation, that discharge for Cause was
warranted.
	 
	3.6	 	The Option is personal to the Optionholder and is not capable of being assigned, transferred,
mortgaged, charged or otherwise disposed of or encumbered (whether in whole or in part and
either voluntarily or by operation of law) without the express written permission of the
Board, except by will or the laws of descent and distribution. If the Optionholder purports
or attempts to assign, transfer, mortgage, charge or otherwise deal with or dispose of or
encumber the Option (whether in whole or in part) contrary to the provisions of this clause or
if the Optionholder is adjudicated bankrupt, the Option shall immediately lapse.
	 
	4.	 	Exercise of Option
	 
	4.1	 	The Option shall, subject to clauses 3 and 4.2, be exercisable by the Optionholder by notice
in writing to the Company and at any time prior to the expiry of the Option Period:

	 	(a)	 	specifying the number of Shares in respect of which the Option is being
exercised; and
	 
	 	(b)	 	accompanied by the payment of the aggregate Option Price for the Shares in
respect of which the Option is exercised (which, being a cheque or similar instrument,
shall be valid only if met on first presentation).

	4.2	 	The Optionholder irrevocably undertakes to meet any Tax Liability in respect of the exercise
of the Option. The exercise of the Option pursuant to clause 4.1 shall only be valid if
either:

	 	(a)	 	the Optionholder remits to the Company (on behalf of any member of the Group)
at the time of exercise of the Option (in cleared funds) a sum equal to the Tax
Liability arising by reference to the exercise of the Option in connection with the
payment made to or benefit realised by the Optionholder; or
	 
	 	(b)	 	the Optionholder enters into such other arrangements satisfactory to the
Company, in its sole discretion, to secure the payment of the Tax Liability referred to
in sub-clause (a) above to any member of the Group.

	4.3	 	The Optionholder hereby irrevocably covenants and undertakes to the Company:

	 	(a)	 	to indemnify and keep indemnified the Company and each other member of the
Group against, and on demand to reimburse the relevant member of the Group for, any Tax
Liability in any jurisdiction in respect of the Optionholder’s income or gains or any
other withholding obligation (limited only to the extent that such amount may be
lawfully recovered from the Optionholder at the relevant time) arising in connection
with any event or circumstances after the Option is exercised that give rise

4

 

	 	 	 	to such a liability in respect of any Shares acquired by the Optionholder on
exercise of the Option; and
	 
	 	(b)	 	to make such other arrangements as may be satisfactory to the Company in its
absolute discretion to meet any such liability as is described in sub-clause (a) above.

	4.4	 	Within 30 days of the exercise of the Option, the Company shall allot to the Optionholder the
Shares in respect of which the Option is exercised.
	 
	4.5	 	Shares issued on exercise of the Option shall rank pari passu in all respects with Shares in
issue on the date of exercise except that they will not entitle holders to receive any
dividends or other distributions declared for payment to holders of Shares on the register of
members at a record date which precedes the date of exercise.
	 
	4.6	 	The Company shall procure that sufficient Shares are available so as to satisfy any exercise
of the Option.
	 
	5.	 	Takeovers and Liquidation
	 
	5.1	 	If there is a Change in Control, the Board shall give the Optionholder reasonable prior
notice of such impending event and the Option shall become exercisable over all of the Shares
to which the Option applies, whether vested or not on the date the notice is served on the
Optionholder, and, if so determined by the Board prior to the Change in Control and
communicated in writing to the Optionholder, the Option shall lapse immediately prior to the
consummation of such Change in Control unless exercised by the Optionholder.
	 
	5.2	 	For the purposes of clause 5.1, “Change in Control” shall mean the occurrence of any of the
following (i) the sale or disposition, in one or a series of related transactions, of all or
substantially all, of the assets of the Company to any “person” or “group” (as such terms are
defined in Sections 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended,
or any successor thereto (the “Act”)) other than CBay Inc. or SAC Private Capital Group, LLC
or any of their affiliates (the “Permitted Holders”); (ii) any person or group, other than the
Permitted Holders, is or becomes the “beneficial owner,” as such term is defined in Rule 13d-3
under the Act (or any successor rule thereto) (a “Beneficial Owner”) (except that a person
shall be deemed to have “beneficial ownership” of all shares that any such person has the
right to acquire, whether such right is exercisable immediately or only after the passage of
time), directly or indirectly, of more than 50% of the total voting power of the voting stock
of the Company (or any entity which controls the Company), including by way of merger,
consolidation, tender or exchange offer or otherwise; (iii) a reorganization,
recapitalization, merger or consolidation (a “Corporate Transaction”) involving the Company,
unless securities representing 50% or more of the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of directors of the
Company or the corporation resulting from such Corporate Transaction (or the parent of such
corporation) are held subsequent to such transaction by the person or persons who were the
Beneficial Owners of the outstanding voting securities entitled to vote generally in the
election of directors of the Company immediately prior to such Corporate Transaction, in
substantially the same proportions as their ownership immediately prior to such Corporate
Transaction; (iv) during any twelve month period, individuals who at the beginning of such
period constituted the Board of Directors of the Company (the “Board”) (together with any new
directors whose election by such Board or whose nomination for election by the shareholders of
the Company was approved by a vote of a majority of the directors of the Company, then still
in office, who were either directors at the beginning of such period or whose election or
nomination for election was previously so approved) cease for any reason to constitute a
majority of the Board, then in office; or (vi) SAC PEI CB Investment, L.P. ceases to be the
Beneficial Owner

5

 

		 	of at least 5% of the total voting power of the voting stock of the Company (or any entity
which controls the Company).
	 
	6.	 	Variation of Share Capital
	 
	6.1	 	In the event of any issue of shares by way of capitalisation of profits or reserves or by way
of rights, or in the event of any consolidation or sub-division or reduction or other
variation of share capital, then the number and/or nominal value of Shares comprised in the
Option and/or the Option Price shall be adjusted by the Company in such manner and with effect
from such date as equitably determined by the Board pursuant to paragraph 14 of the Plan.
	 
	6.2	 	The Company shall give notice in writing to the Optionholder of any adjustment under clause
6.1 as soon as reasonably practicable.
	 
	7.	 	Rights of Optionholder
	 
	7.1	 	The rights of the Optionholder in respect of the Option are a matter entirely separate from
any pension right or term or condition of employment or service and the grant of the Option
shall not be construed as giving the Optionholder the right to continued employment or service
or any other relationship with any member of the Group. If the Optionholder shall cease for
any reason to be employed or engaged within the Group, his rights and benefits under the
Option or in connection therewith (actual or prospective) or any loss thereof shall not in any
way entitle him to claim for compensation against any member of the Group and shall not be
taken into account in assessing any compensation to which he may otherwise be entitled. The
Optionholder’s contract of employment or other terms of service or engagement shall be deemed
to be varied accordingly, if necessary.
	 
	7.2	 	The Company shall not be obliged to provide the Optionholder with copies of any accounts,
notices, circulars or other documents sent to holders of ordinary shares in the capital of the
Company.
	 
	8.	 	Notices
	 
	 	 	Without prejudice to any other method available for the giving of notice, any notice or
other communication desired to be given or made hereunder may be given or made by personally
delivering the same or sending the same by first class post or legible facsimile, in the
case of the Company to its registered address and in the case of the Optionholder to his
last known address or to the address of the place of business at which he performs the whole
or most of the duties of his office. Where a notice or communication is given by first
class post, it shall be deemed to have been received on the second business day after
posting of the same and if personally delivered or sent by legible facsimile shall be deemed
to have been received on despatch if delivered or sent on a business day or (if not so
delivered or sent) on the first business day thereafter.
	 
	9.	 	Transfer Restrictions
	 
	9.1	 	The Optionholder acknowledges that the securities that are the subject of this Agreement have
not been registered under any federal or state securities laws of the United States and that
such securities may not be resold in the United States without such registration or an opinion
of counsel satisfactory to the Company that such registration is not required.
	 
	9.2	 	The Optionholder acknowledges that there are transfer restrictions on the Shares, which are
detailed in Part XI of the publicly available admission document in relation to Admission

6

 

	 	 	entitled “Selling Restrictions” and that they will comply with such restrictions upon
exercise of the Option and subsequent sale of the Shares.
	 
	10.	 	Provisions of the Plan
	 
	 	 	This Option is subject to the provisions of the Plan, a copy of which has been provided to
the Optionholder.
	 
	11.	 	Proper Law
	 
	 	 	This agreement shall be governed by and construed in accordance with English law and the
parties hereby irrevocably submit themselves to the exclusive jurisdiction of the courts of
England.
	 
	12.	 	Rights of Third Parties
	 
	12.1	 	The parties agree and acknowledge that:

	 	(a)	 	nothing in this agreement is intended to benefit any person who is not a party
to it (a “Non-Party”) and accordingly no Non-Party has any right under the Contracts
(Rights of Third Parties) Act 1999 to enforce any term of this agreement except as
expressly provided herein and in particular but without limitation in relation to the
payment by the Optionholder of any Tax Liability pursuant to clause 4.2; and
	 
	 	(b)	 	no consent of any Non-Party shall be required for any revision of or amendment
to this agreement save in relation to clause 4.2 for which the Company’s written
approval will be required.

	12.2	 	The provisions of clause 12.1 do not affect any right or remedy of a third party which exists
or is available otherwise than by the Contracts (Rights of Third Parties) Act 1999.
	 
	13.	 	Counterparts
	 
	 	 	This agreement may be executed in any number of counterparts, each of which, when executed
and delivered, shall be an original, and all counterparts together shall constitute one and
the same instruments.

IN WITNESS whereof the parties have signed this agreement the day and year first above written.

	 	 	 	 	 	 	 

	EXECUTED as a DEED of

	 	 	)	 	 	 
	CBAYSYSTEMS HOLDINGS LIMITED

	 	 	)	 	 	 
	acting by:

	 	 	)	 	 	 

	 	 	 	 	 	 	 

	 

	 	Director
	 	 
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Director/Secretary
	 	 
 

	 	 

7

 

	 	 	 	 	 	 	 

	EXECUTED as a DEED by

	 	 	 	          )	 	 
	 
	 
 

	 	) 
	 	 
 

	 	 
	in the presence of:

	 	 	 	          )	 	 

	 	 	 	 	 

	Witness Signature: 

Witness Name: 

	 
	Witness Occupation:

	 	 
	 
	Witness Address: 

	 	 

8

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