Document:

Non-Qualified Stock Option Agreement between Rohit Kapoor and the Company

 Exhibit 10.42 
  
 EXECUTION VERSION 
  
 EXLSERVICE HOLDINGS, INC. 2006 OMNIBUS AWARD PLAN 
 NONQUALIFIED STOCK OPTION AGREEMENT 
  
 THIS OPTION AGREEMENT (the “Agreement”), dated as of July 27, 2006 (the “Date of Grant”), is made by and between ExlService Holdings, Inc., a Delaware corporation (the
“Company”), and Rohit Kapoor (“Participant”). 
  
 WHEREAS, the Company has adopted the ExlService Holdings, Inc. 2006 Omnibus Award Plan (the “Plan”), pursuant to which options may be granted to purchase shares of the Company’s Series B Common
Stock, par value $0.001 per share (“Stock”); and 
  
 WHEREAS, the Compensation Committee of the Board of Directors of the Company (the “Committee”) has determined that it is in the best interests of the Company and its stockholders to grant the stock option award provided for
herein to Participant subject to the terms set forth herein; 
  
 NOW, THEREFORE, for and in consideration of the premises and the covenants of the parties contained in this Agreement, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto, for
themselves, their successors and assigns, hereby agree as follows: 
  
 1. Grant of Option. 
  
 (a)
Grant. The Company hereby grants to Participant an option (the “Option”) to purchase 75,000 shares of Stock (such shares of Stock, the “Option Shares”), on the terms and conditions set forth in this Agreement
and as otherwise provided in the Plan. The Option is not intended to qualify as an incentive stock option within the meaning of Section 422 of the Code. 
  

(b) Incorporation by Reference, Etc. The provisions of the Plan are hereby incorporated herein by reference. Except as otherwise
expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan and any capitalized terms not otherwise defined in this Agreement shall have the definitions set forth in the Plan. The Committee shall have
final authority to interpret and construe the Plan and this Agreement and to make any and all determinations under them, and its decision shall be binding and conclusive upon Participant and his legal representative in respect of any questions
arising under the Plan or this Agreement. 
  
 2. Terms and
Conditions. 
  
 (a) Option Price. The
Option Price, being the price at which Participant shall be entitled to purchase the Option Shares upon the exercise of all or any portion of the Option, shall be $23.75 per share. 
  
 (b) Expiration Date. Subject to Section 2(d) hereof, the Option shall expire at the end of the
period commencing on the Date of Grant and ending at 11:59 p.m. 

 
Eastern Time (“ET”) on the day preceding the tenth anniversary of the Date of Grant (the “Option Period”). 
  
 (c) Exercisability of the Option. 
  
 (i) Except as may otherwise be provided herein, the Option
shall become vested and exercisable as follows: 
  

			
	 Vested Percent of Option

	  	Date of Vesting

	25%	  	November 14, 2006
	50%	  	November 14, 2007
	75%	  	November 14, 2008
	100%	  	November 14, 2009

  
 (ii)
Notwithstanding the foregoing, in the event that a “Change in Control” (as defined in the Plan) occurs at a time when any portion of the Option remains unvested, then effective upon the consummation of the Change in Control, the vesting of
the portion of the Option which is not then fully vested shall accelerate such that the portion of the Option which would have become vested during the one-year period following the Change in Control shall become vested effective as of the
consummation of the Change in Control. Moreover, (a) in the event that Participant’s employment with the Company is terminated by the Company without Cause (x) at any time following a Change in Control or (y) in specific
contemplation of a Change in Control, or (b) in the event Participant resigns for “Good Reason” (as defined below) at any time following a Change in Control, upon and subject to the execution (and non-revocation during any applicable
revocation period) of a standard release by Participant of all employment-related claims against the Company and its subsidiaries and each of their employees, officers and directors, Participant shall be entitled to immediate vesting as of the
termination date of any portion of the Option which is unvested as of the termination date. “Good Reason” shall mean: 
  
 (A) a substantial reduction of Participant’s duties or responsibilities, or Participant being required to report to any person other than the Board,
provided that, if there is a Change of Control and Participant retains similar title and similar authority with the Company or any entity that acquires the Company (or any affiliate or subsidiary of such entity) following such Change of Control, the
parties agree that any change in the title of Participant shall not constitute a significant reduction of Participant’s duties and authorities hereunder; 
  

(B) Participant’s job title as an officer of the Company is adversely changed, provided that if there is a Change of Control and Participant
retains similar title and similar authority with the Company or any entity that acquires the Company (or any affiliate or subsidiary of such entity) following such Change of Control, the parties agree that any 

  

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change in the title of Participant shall not constitute a significant reduction of Participant’s duties and authorities hereunder; 
  
 (C) a reduction of Participant’s then base salary or annual cash bonus
opportunity to below 75% of base salary at target; 
  
 (D) a
change in the office or location where Participant is based on the Date of Grant of more than thirty (30) miles, which new location is more than thirty (30) miles from Participant’s primary residence; or 
  
 (E) a breach by the Company of any material term of any employment,
consulting, or similar agreement between the Company and Participant; 
  
 provided that, a termination by Participant with Good Reason shall be effective for purposes of this Agreement only if, within thirty (30) days following Participant’s first becoming aware of the
circumstances giving rise to Good Reason, Participant delivers to the Company a “notice of termination” for Good Reason by Participant to the Company, and the Company within fifteen (15) days following its receipt of such notification
has failed to cure the circumstances giving rise to Good Reason. 
  
 (iii) If Participant’s employment with the Company ceases upon the end of the term of an employment agreement between Participant and the Company following the Company’s notification of the Participant of
the Company’s decision not to extend the Participant’s employment term in accordance with the terms of such employment agreement between Executive and the Company as is in effect at the time such notification is given, then the vesting of
the portion of the Option which is not then fully vested shall accelerate such that the portion of the Option which would have become vested during the one-year period following such cessation of employment shall become vested effective as of such
cessation of employment. 
  
 (iv) The Option may
be exercised only by written notice, substantially in the form attached hereto as Exhibit A (or a successor form provided by the Committee) delivered in person or by mail in accordance with Section 3(b) hereof and accompanied by
(i) payment of the Option Price, (ii) if such exercise occurs prior to the completion by the Company of an underwritten public offering and sale of equity securities of the Company pursuant to an effective registration statement under the
Securities Act (an “Initial Offering”), an executed copy of the Stock Purchase Agreement, substantially in the form attached hereto as Exhibit B, by and between the Company and Participant (the “Stock Purchase
Agreement”), and (iii) if Participant is married, is a resident of a state which is a “community property” state and such exercise occurs prior to the completion of an Initial Offering, an executed spousal consent
substantially in the form attached hereto as Exhibit C. The Option Price shall be paid by Participant to the Company (A) by certified check, (B) following an Initial Offering, by means of a net exercise whereby the number of Option
Shares received by Participant shall equal the excess, if any, of (x) the number of Option Shares that would have been received by Participant upon such exercise had Participant paid the purchase price for the Option Shares in cash over
(y) a number of Option Shares, the aggregate fair market value of which is equal to the aggregate purchase price that would have been paid as determined pursuant to the immediately preceding clause (x), or (C) by any other method approved
by the Committee 

  

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in writing. If requested by the Committee, Participant shall promptly deliver his copy of this Agreement to the Secretary of the Company who shall endorse
thereon a notation of such exercise and promptly return such Agreement to Participant. 
  
 (d) Effect of Termination of Employment on Options. In the event that Participant ceases to be employed by the Company or its
Affiliates for any reason, the unvested portion of the Option shall expire upon such cessation of employment and the vested portion of the Option (to the extent then outstanding) shall expire at 11:59 p.m., ET on the earlier of (i) the last day
of the Option Period or (ii) the date that is one hundred eighty (180) days after the date of such termination. In such event, the vested portion of the Option shall remain exercisable by Participant until its expiration. 
  
 (e) Compliance with Legal Requirements. The granting
and exercising of the Option, and any other obligations of the Company under this Agreement, shall be subject to all applicable federal and state laws, rules and regulations and to such approvals by any regulatory or governmental agency as may be
required. The Committee, in its sole discretion, may postpone the issuance or delivery of Option Shares as the Committee may consider appropriate and may require Participant to make such representations and furnish such information as it may
consider appropriate in connection with the issuance or delivery of Option Shares in compliance with applicable laws, rules and regulations. 
  
 (f) Transferability. The Option shall not be transferable by Participant other than by will or the laws of descent and
distribution. 
  
 (g) Rights as
Stockholder. Participant shall not be deemed for any purpose to be the owner of any shares of Stock subject to this Option unless, until and to the extent that (i) this Option shall have been exercised pursuant to its terms, (ii) if
applicable, Participant shall have executed the Stock Purchase Agreement, (iii) the Company shall have issued and delivered to Participant the Option Shares and (iv) Participant’s name shall have been entered as a stockholder of
record with respect to such Option Shares on the books of the Company. 
  
 (h) Tax Withholding. Prior to the delivery of a certificate or certificates representing the Option Shares, Participant must pay to the Company in the form of a certified check any such additional amount as the
Company determines that it is required to withhold under applicable federal, state or local tax laws in respect of the exercise or the transfer of Option Shares; provided that the Committee may, in its sole discretion, allow such withholding
obligation to be satisfied by any other method described in Section 12(d) of the Plan. 
  
 3. Miscellaneous. 
  
 (a) Confidentiality of the Agreement. Participant agrees to keep confidential the terms of this Agreement, unless and until such terms have been disclosed publicly other than through a breach by Participant of
this covenant. This provision does not prohibit Participant from providing this information on a confidential and privileged basis to 

  

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Participant’s attorneys or accountants for purposes of obtaining legal or tax advice or as otherwise required by law. 
  
 (b) Waiver. Any right of the Company contained in
this Agreement may be waived in writing by the Committee. No waiver of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a
waiver of any right to damages. No waiver by any party of any breach of this Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach. 
  
 (c) Notices. All notices, demands and other
communications provided for or permitted hereunder shall be made in writing and shall be by registered or certified first-class mail, return receipt requested, facsimile, courier service or personal delivery: 
  
 if to the Company: 
  
 ExlService Holdings, Inc. 
 350 Park Avenue, 10th Floor 
 New York, NY 10022 
 Facsimile: (212) 872-1524 
 Attention: General Counsel 
  
 with a copy to: 
  
 Oak Hill Capital Management, Inc. 
 Park Avenue Tower 
 65 East 55th Street, 36th Floor

 New York, NY 10022 
 Facsimile: (212) 758-3572 
 Attention: John R. Monsky, Esq. 
  
 with a copy to: 
  
 Paul, Weiss, Rifkind, Wharton & Garrison LLP

 1285 Avenue of the Americas 
 New York, NY 10019-6064 
 Facsimile: (212) 373-3000 
 Attention: Michael J. Segal, Esq. 
  
 if to Participant: 
  
 Rohit Kapoor 
 8 Cornell Street 
 Scarsdale, NY 10583 
  

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 All such notices, demands and other communications shall be deemed to have been duly
given when delivered by hand, if personally delivered; when delivered by courier, if delivered by commercial courier service; five (5) business days after being deposited in the mail, postage prepaid, if mailed; and when receipt is mechanically
acknowledged, if faxed. 
  
 (d)
Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and
enforceable to the extent permitted by law. 
  
 (e) No Rights to Employment. Nothing contained in this Agreement shall be construed as giving Participant any right to be retained, in any position, as an employee, consultant or director of the Company or its Affiliates or shall
interfere with or restrict in any way the right of the Company or its Affiliates, which are hereby expressly reserved, to remove, terminate or discharge Participant at any time for any reason whatsoever. 
  
 (f) Modifications. No change, modification or waiver
of any provision of this Agreement shall be valid unless the same be in writing and signed by the parties hereto. 
  
 (g) Bound by Plan. By signing this Agreement, Participant acknowledges that he has received a copy of the Plan and has had an
opportunity to review the Plan and agrees to be bound by all the terms and provisions of the Plan. 
  
 (h) Beneficiary. Participant may file with the Committee a written designation of a beneficiary on such form as may be prescribed
by the Committee and may, from time to time, amend or revoke such designation. If no designated beneficiary survives Participant, Participant’s estate shall be deemed to be Participant’s beneficiary. 
  
 (i) Successors. The terms of this Agreement shall be
binding upon and inure to the benefit of the Company and its successors and assigns, and of Participant and the beneficiaries, executors, administrators, heirs and successors of Participant. 
  
 (j) Entire Agreement. This Agreement, the Plan and,
if applicable, the Stock Purchase Agreement contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect
thereto. No change, modification or waiver of any provision of this Agreement shall be valid unless the same be in writing and signed by the parties hereto. 
  
 (k) Governing Law. This Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware without
regard to principles of conflicts of law thereof, or principals of conflicts of laws of any other jurisdiction which could cause the application of the laws of any jurisdiction other than the State of Delaware. 
  
 (l) JURY TRIAL WAIVER. THE PARTIES EXPRESSLY AND
KNOWINGLY WAIVE ANY RIGHT TO A JURY TRIAL IN THE EVENT ANY ACTION 

  

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ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT IS LITIGATED OR HEARD IN ANY COURT. 
  
 (m) Headings. The headings of the Sections hereof are provided for convenience only and are not to
serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement. 
  
 (n) Signature in Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument. 
  
 [Remainder of page intentionally left blank; signature page to follow] 
  

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

  

			
	EXLSERVICE HOLDINGS, INC.
		
	By:	 	/s/ Amit Shashank
	 	 	Name: Amit Shashank
	 	 	Title: General Counsel
	
	ROHIT KAPOOR
	
	/s/ Rohit Kapoor

  
 [Signature
Page to Nonqualified Stock Option Agreement] 
  

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 Exhibit A 
  

NOTICE OF OPTION EXERCISE 
  
 PURSUANT TO THE EXLSERVICE HOLDINGS, INC. 2006 OMNIBUS AWARD PLAN 
  
 To exercise your option to purchase shares of ExlService Holdings, Inc. (the “Company”) Series B common stock
(“Shares”), please fill out this form [and execute the attached Stock Purchase Agreement]1 and return
[them][it] to the Corporate Secretary of the Company. 
  
 I hereby exercise my right to purchase              Shares under the option granted to me pursuant to
the Nonqualified Stock Option Agreement between myself and the Company, dated as of                     , 20    . I
am vested in my option as to the Shares being purchased hereunder. 
  
 Payment of Exercise Price. The per-Share exercise price of the option is $            . The total exercise price for the Shares I am purchasing is
$            . I elect to pay that total exercise price by one of the following methods [CHECK ONE]: 
  

	 	 ̈	 	By certified check, which is enclosed. 

  

	 	 ̈	 	By the “net exercise” method described in Section 2(c)(iv) of the Stock Option Agreement. I understand that the Company will withhold a number of Shares having a
value equal to the total exercise price. 

  

	 	 ̈	 	By another method specifically approved by the Committee which administers the ExlService Holdings, Inc. 2006 Omnibus Award Plan – describe below after receiving approval from
the Chief Financial Officer of the Company 

  

	 	    	 	____________________________________________________________________ 

  
 Tax Withholding. Required payroll taxes and income tax withholding in connection with this option exercise total
$            . (Please contact the office of the Chief Financial Officer of the Company to determine this amount.) I elect to pay that withholding by one of the following methods
[CHECK ONE]: 
  

	 	 ̈	 	By certified check, which is enclosed. 

  

	 	 ̈	 	By another method specifically approved by the Committee which administers the ExlService Holdings, Inc. 2006 Omnibus Award Plan – describe below after receiving approval from
the Chief Financial Officer of the Company 

  

	 	    	 	____________________________________________________________________ 

	1	 	Only if the Option is exercised while the Company is private. 

 I understand that this option exercise is not effective unless and until this Notice of Option Exercise [and the executed
Stock Purchase Agreement]2 is enclosed, along with any necessary certified checks. I hereby represent that, to the
best of my knowledge and belief, I am legally entitled to exercise this option. 
  

			
		
	Signature:	 	 
		
	Rohit Kapoor:	 	 
		
	Social Security Number:	 	 
		
	Date:	 	 

	2	 	Only if the Option is exercised while the Company is private. 

 Exhibit B 
  

EXLSERVICE HOLDINGS, INC. 
 STOCK
PURCHASE AGREEMENT 
 (FOR USE WITH STOCK OPTIONS) 
  
 THIS STOCK PURCHASE AGREEMENT (the “Agreement”) is made as of the date indicated on the signature page
hereof, by and between ExlService Holdings, Inc., a Delaware corporation (the “Company”) and the person whose name and signature appears as the “Purchaser” on the signature page hereof (the “Purchaser”).

  
 WHEREAS, the Purchaser desires to acquire the number of shares
(the “Shares”) of Series B common stock, $0.001 par value per share, of the Company set forth in the notice of exercise to which the Agreement is attached (the “Exercise Notice”) at the purchase price also set forth
therein pursuant to his/her exercise of a non-qualified stock option issued by the Company to the Purchaser pursuant to the ExlService Holdings, Inc. 2006 Omnibus Award Plan (the “Plan”) and as reflected in the ExlService Holdings,
Inc. Nonqualified Stock Option Agreement between the Company and the Purchaser (the “Option Agreement”) and the Company desires to issue said Shares to the Purchaser, subject to the restrictions on transfer and other rights or
obligations hereinafter set forth; and 
  
 WHEREAS, the parties
wish to impose certain restrictions on the transfer or encumbrance of the Shares issued to the Purchaser and to give the Company or a third party the right to purchase the Shares upon the occurrence of certain events; 
  
 NOW, THEREFORE, for and in consideration of the premises and the covenants of
the parties contained in the Agreement, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows: 
  
 1. Purchase of Shares. The Purchaser hereby subscribes for and, upon
acceptance by the Company hereof, shall purchase the Shares. The aggregate purchase price for the Shares set forth in the Exercise Notice and the amount of payroll taxes and income tax withholding required to be paid to the Company by the Purchaser
in connection with such purchase shall be paid by the Purchaser in the manner prescribed in the Option Agreement. Upon receipt of payment by the Company for the Shares, the Company shall issue to the Purchaser one or more certificates in the name of
the Purchaser for the Shares. The Purchaser agrees that the Shares shall be subject to all of the terms and conditions of the Agreement. 
  
 2. Drag Along Rights. 
  
 (a) If at any time prior to the completion by the Company of an underwritten public offering and sale of equity securities (an
“Initial Offering”) of the Company pursuant to an effective registration statement under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “Securities Act”), the
holders of a majority-in-interest of the total outstanding shares of Series A common stock and Series B common stock of the Company (the “Majority Stockholders”) desire to sell more than 75% of 

 
the total outstanding number of Series A common stock and Series B common stock of the Company (the “Total Shares”) held by such Majority
Stockholders, pursuant to a bona fide offer to purchase such Total Shares from any individual, firm, corporation, partnership, trust, incorporated or unincorporated association, joint venture, joint stock company, limited liability company,
governmental authority or other entity of any kind (a “Person”) who is not an affiliate of the transferor or transferors, as the case may be (a “Third-Party Purchaser”) (the “Drag-Along Sale”), then
such Majority Stockholders shall have the right to require the Purchaser to sell to such Third-Party Purchaser in connection with such sale, the percentage of the Shares which shall equal the corresponding percentage the Majority Stockholders
propose to sell of the Total Shares held by the Majority Stockholders to such Third-Party Purchaser in connection with such sale. Such right shall be exercisable by written notice (a “Drag-Along Notice”) given to the Purchaser which
shall state (i) that such Majority Stockholders propose to effect the sale of all or a percentage of their Total Shares to such Third-Party Purchaser, (ii) the proposed purchase price to be paid by the Third-Party Purchaser for the Total
Shares of such Majority Stockholders, and (iii) the name of the Third-Party Purchaser. The Purchaser agrees that, upon receipt of a Drag-Along Notice, the Purchaser shall be obligated to sell to such Third-Party Purchaser in connection with
such sale, the percentage of the Series B common stock of the Company held by the Purchaser which shall equal the corresponding percentage the Majority Stockholders propose to sell of Total Shares held by the Majority Stockholders to such
Third-Party Purchaser in connection with such sale, upon the terms and conditions of such transaction (and otherwise take all reasonably necessary action to cause the consummation of the proposed transaction, including voting such Shares in favor of
such transaction). 
  
 (b) In the event that the
Majority Stockholders shall provide a Drag-Along Notice to the Purchaser in connection with a proposed Drag-Along Sale, the Purchaser shall prior to the closing of any such proposed Drag-Along Sale, execute any purchase agreement or other
certificates, instruments and other agreements required by the Third-Party Purchaser to consummate the proposed Drag-Along Sale; provided, however, that any such purchase agreement or other certificates, instruments and other
agreements shall be on terms no less favorable to the Purchaser than those executed by the Majority Stockholders with respect to the Total Shares proposed to be transferred by such Majority Stockholders in connection with such Drag-Along Sale,
including without limitation, the amount and form of the purchase price therefor, the provision of, and representation and warranty as to, information requested by the Third-Party Purchaser from the Majority Stockholders and the provision of
requisite indemnifications from the Majority Stockholders, and at the closing of any such proposed Drag-Along Sale, deliver to the Majority Stockholder such instruments of transfer as shall be requested by the Third-Party Purchaser with respect to
the Shares to be transferred, against receipt of the purchase price therefor. 
  
 (c) The Purchaser hereby irrevocably and unconditionally waives any rights of appraisal, dissenter’s rights or similar rights that the Purchaser may have in connection with the Drag-Along Sale. The Purchaser
shall cause to be irrevocably and unconditionally waived any such rights that any affiliate of the Purchaser may have in connection with such Drag-Along Sale. 

 (d) If at any time the Company proposes to merge with or consolidate into any entity or
enter into an arrangement having an effect substantially similar thereto, the Purchaser hereby irrevocably and unconditionally agrees to vote all of the Shares held by the Purchaser in favor of such merger or arrangement and the Purchaser hereby
irrevocably and unconditionally agrees to waive any rights of appraisal, dissenter’s rights or similar rights that the Purchaser may have with respect thereto. 
  
 3. Assignment of Rights. The Purchaser agrees that the Company has the right to assign its rights under
Section 2 hereof, with respect to the purchase of part or all of the Shares, to one or more other persons or entities (the “Assignee(s)”) in its sole discretion and in whatever proportions it decides and the Purchaser agrees
that any such assignment shall constitute a novation as among the Company, the Purchaser and the Assignee(s) with respect to the rights and obligations of the Company and the Purchaser set forth in Section 2 hereof so that such rights and
obligations with respect to the purchase of that part or all of the Shares (if any) assigned to the Assignee(s) in whatever proportions have been decided by the Company, shall thereafter exist between the Purchaser and the Assignee(s). 

 
 4. Restrictions on Transfer. The Purchaser shall not sell,
transfer, pledge, encumber, lease, gift, grant participation rights in or otherwise assign (“Transfer”) any of the Shares to any person or entity unless the Purchaser receives the prior written consent of the Company;
provided that, in the case of any Transfer of the Shares to the Purchaser’s heirs (the “Transferee”) through testamentary or intestate disposition, such Transfer shall not require the prior written consent of the
Company so long as: (i) the Company is notified of any such Transfer by the Transferee as soon as possible after such Transfer has occurred, and (ii) the Transferee shall agree in writing to be bound by the terms of the Agreement and that
the Shares acquired by the Transferee shall be subject to the terms of the Agreement and the Transferee shall furnish copies of all instruments effecting such Transfer and such other certificates, instruments and documents as the Company may
request. Any attempt to Transfer any of the Shares in violation of the terms and conditions of the Agreement shall be null and void ab initio and the Company shall not register or effect any such Transfer. 
  
 5. Compliance With The Agreement. The Company shall not be required to
transfer any Shares upon its books or to recognize any purported new transferee thereof in any manner, unless every applicable provision of the Agreement has first been complied with to the satisfaction of the Company or has been waived in writing
by the Company. The provisions of the Agreement shall not be discharged with respect to any Shares by any transfer made in compliance with the Agreement but shall apply anew to such shares in the hands of the new transferee thereof. If the Purchaser
or any legal representative or any transferee attempts to transfer any of the Shares without compliance with the requirements and restrictions of the Agreement, the Purchaser shall not, until full compliance therewith, be entitled to any of the
rights and privileges of a shareholder of the Company, and no person purporting to claim or hold by, through or under him shall in any way be recognized; but this provision shall in no way relieve the Purchaser or any legal representative or any
transferee from the obligation to offer, transfer or sell the Shares to the Company as herein provided. 

 6. Investment Representations. The Purchaser represents, warrants and covenants to the Company, as
of the date of the Agreement, as follows: 
  
 (a)
Purchaser is purchasing the Shares for his own account and with no intention of distributing or reselling such Shares or any part thereof in any transaction that would be in violation of the securities laws of the United States of America or any
state, without prejudice, however, to the rights of the Purchaser at all times to sell or otherwise dispose of all or any part of the Shares (subject to the terms and conditions of the Agreement) under an effective registration statement under the
Securities Act or under an exemption from such registration available under the Securities Act, and subject, nevertheless, to the disposition of the Purchaser’s property being at all times within their control. If the Purchaser should in the
future decide to dispose of any of any of the Shares, the Purchaser understands and agrees that the Purchaser may do so only in compliance with the Securities Act and applicable state securities laws as then in effect. 
  
 (b) Purchaser has had such opportunity as Purchaser has
deemed adequate to obtain from representatives of the Company such information as is necessary to permit him to evaluate the merits and risks of his investment in the Company. 
  
 (c) Purchaser has sufficient experience in business, financial and investment matters to be able to evaluate
the risks involved in the purchase of the Shares and to make an informed investment decision with respect to such purchase. 
  
 (d) Purchaser can afford the complete loss of his investment in and the value of the Shares and is able to bear the economic risk of
holding such Shares for an indefinite period. 
  
 (e) Purchaser understands that (i) the Shares have not been registered under the Securities Act and are “restricted securities” within the meaning of Rule 144 under the Securities Act; (ii) the Shares cannot be sold,
transferred or otherwise disposed of unless they are subsequently registered under the Securities Act or an exemption from registration is then available; (iii) in any event, the exemption from registration under Rule 144 will not be available
for at least one (1) year and even then will not be available unless a public market then exists for the Shares, adequate information concerning the Company is then available to the public, and other terms and conditions of Rule 144 are
complied with; and (iv) there is now no registration statement on file with the Securities and Exchange Commission with respect to any stock of the Company and the Company has no obligation or current intention to register the Shares under the
Securities Act except as may be provided in any agreement between the Company and the Purchaser. 
  
 (f) A legend substantially in the following form will be placed on the certificate or certificates representing the Shares: 
  
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT 

 
WITH A VIEW TO DISTRIBUTION OR RESALE, AND MAY NOT BE SOLD, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION
STATEMENT FOR SUCH SECURITIES UNDER THE SECURITIES ACT OF 1933, AND ANY APPLICABLE STATE SECURITIES LAWS, UNLESS EXLSERVICE HOLDINGS, INC. HAS RECEIVED AN OPINION OF COUNSEL, WHICH OPINION IS SATISFACTORY TO THE CORPORATION, TO THE EFFECT THAT SUCH
REGISTRATIONS ARE NOT REQUIRED. 
  
 THE SALE, ASSIGNMENT,
HYPOTHECATION, PLEDGE, ENCUMBRANCE OR OTHER DISPOSITION (EACH A “TRANSFER”) AND VOTING OF ANY OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE RESTRICTED BY THE TERMS OF A CERTAIN STOCK PURCHASE AGREEMENT, DATED AS OF
                    , 2006, BY AND BETWEEN THE EXLSERVICE HOLDINGS, INC. (THE “COMPANY”) AND ROHIT KAPOOR AND THE AMENDED AND
RESTATED CERTIFICATE OF INCORPORATION OF THE COMPANY, COPIES OF WHICH MAY BE INSPECTED AT THE COMPANY’S PRINCIPAL OFFICE. THE COMPANY WILL NOT REGISTER THE TRANSFER OF SUCH SECURITIES ON THE BOOKS OF THE COMPANY UNLESS AND UNTIL THE TRANSFER
HAS BEEN MADE IN COMPLIANCE WITH THE TERMS OF SUCH STOCK PURCHASE AGREEMENT AND THE AMENDED AND RESTATED CERTIFICATE OF INCORPORATION. 
  
 7. Broker’s, Finder’s or Similar Fees. There are no brokerage commissions, finder’s fees or similar fees or commissions payable by
the Purchaser in connection with the transactions contemplated hereby based on any agreement, arrangement or understanding with the Purchaser or any action taken by the Purchaser. 
  
 8. Adjustments for Stock Splits, Stock Dividends, etc. 
  
 (a) If from time to time during the term of the Agreement there is any stock split-up, stock dividend, stock
distribution or other reclassification of the Shares, any and all new, substituted or additional securities to which the Purchaser is entitled by reason of his ownership of the Shares shall be immediately subject to the terms of the Agreement.

  
 (b) If the Shares are converted into or
exchanged for, or stockholders of the Company receive by reason of any distribution in total or partial liquidation, securities of another corporation, or other property (including cash), pursuant to any merger of the Company or acquisition of its
assets, then the rights of the Company under the Agreement shall inure to the benefit of the Company’s successor and the Agreement shall apply to the securities or other property received upon such conversion, exchange or distribution in the
same manner and to the same extent as the Shares. 
  
 9.
Definitions. Any capitalized terms not otherwise defined in this Agreement shall have the definitions set forth in the Plan. 

 10. Severability. The invalidity or unenforceability of any provision of the Agreement shall not
affect the validity or enforceability of any other provision of the Agreement, and each other provision of the Agreement shall be severable and enforceable to the extent permitted by law. 
  
 11. Waiver. Any provision contained in the Agreement may be waived in writing by the Board. No waiver of any right
hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages. No waiver by any party of any breach of the
Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach. 
  
 12. Successors. The terms of the Agreement shall be binding upon and inure to the benefit of the Company and its successors and assigns, and of the
Executive and the beneficiaries, executors, administrators, heirs and successors of the Executive. 
  
 13. No Rights to Employment. Nothing contained in the Agreement shall be construed as giving the Executive any right to be retained, in any
position, as an employee, consultant or director of the Company or its Subsidiaries or shall interfere with or restrict in any way the right of the Company or its Subsidiaries, which are hereby expressly reserved, to remove, terminate or discharge
the Executive at any time for any reason whatsoever, with or without cause. 
  
 14. Notice. All notices, demands and other communications provided for or permitted hereunder shall be made in writing and shall be by registered or certified first-class mail, return receipt requested,
facsimile, courier service or personal delivery: 
  
 if to the
Company: 
  
 ExlService Holdings, Inc. 
 350 Park Avenue, 10th
Floor 
 New York, NY 10022 
 Facsimile: (212) 872-1524 
 Attention: General Counsel 

 with a copy to: 
  

Oak Hill Capital Management, Inc. 
 Park
Avenue Tower 
 65 East 55th Street, 36th Floor 
 New York, NY 10022 
 Facsimile:
(212) 758-3572 
 Attention: John R. Monsky, Esq. 
  
 with a copy to: 
  
 Paul, Weiss, Rifkind, Wharton & Garrison LLP 
 1285 Avenue of the Americas 
 New York, NY 10019-6064 
 Facsimile: (212) 373-3000 
 Attention: Michael J. Segal, Esq. 
  
 if to the Purchaser: 
  
 Rohit Kapoor 
 8 Cornell Street 
 Scarsdale, NY 10583

  
 All such notices, demands and other communications shall be
deemed to have been duly given when delivered by hand, if personally delivered; when delivered by courier, if delivered by commercial courier service; five (5) business days after being deposited in the mail, postage prepaid, if mailed; and
when receipt is mechanically acknowledged, if faxed. 
  
 15.
Modifications. No change, modification or waiver of any provision of the Agreement shall be valid unless the same be in writing and signed by the parties hereto. 
  
 16. Construction. The Agreement and all matters connected therewith shall be construed and all questions shall be
determined by the Board acting in its sole discretion and the decisions of such Board shall be binding upon all interested parties. The Agreement and the Option Agreement collectively contain the entire agreement and understanding of the parties
hereto with respect to the subject matter contained herein and supersede all prior written communications, representations and negotiations in respect thereto. 
  

17. Governing Law. The Agreement shall be construed and interpreted in accordance with the laws of the State of New York without regard to
principles of conflicts of law thereof, or principals of conflicts of laws of any other jurisdiction which could cause the application of the laws of any jurisdiction other than the State of New York. 
  
 18. Termination. The Agreement shall become null and void and shall be
of no further force or effect immediately upon (i) the closing of the Company’s Initial Offering, or (ii) a written agreement to such effect between the Company and the Purchaser or his successor 

 
or assign. Notwithstanding the foregoing, all of the representations and warranties made herein shall survive the execution and delivery of the Agreement
until the date that is twelve (12) months following the Initial Offering. 
  
 19. Lock-Up. The Purchaser hereby agrees that, in connection with an Initial Offering, if requested by the Company or any representative of the underwriters (the “Managing Underwriter”), the
Purchaser shall not sell or otherwise transfer any Shares during the period specified by the Company’s Board of Directors at the request of the Managing Underwriter (the “Market Standoff Period”), with such period not to exceed
one hundred eighty (180) days following the effective date of a registration statement of the Company filed under the Securities Act. The Company may impose stop-transfer instructions with respect to the Shares subject to the foregoing
restrictions until the end of such Market Standoff Period. 
  
 20.
Headings. The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of the Agreement. 
  
 21. Signature in Counterparts. The Agreement may be signed in
counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 
  
 [Remainder of page intentionally left blank; signature page to follow] 

 IN WITNESS WHEREOF, the parties hereto have executed the Agreement as of the day and the year first
written above. 
  

									
	EXLSERVICE HOLDINGS, INC.	 	 	 	ROHIT KAPOOR
					
	By:	 	/s/ Amit Shashank	 	 	 	 By:
	 	/s/ Rohit Kapoor
	 	 	 	 	 	 	 	 	Rohit Kapoor
					
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Rohit Kapoor
					
	 	 	 	 	 	 	 SSN:
	 	 
					
	 	 	 	 	 	 	 Address:
	 	 
	 	 	 	 	 	 	 
					
	 	 	 	 	 	 	 Date:
	 	 
	 	 	 	 	 	 	 

 Exhibit C 
  

CONSENT OF SPOUSE 
  
 I, [                    ], spouse of Rohit
Kapoor, have read and approve of the Stock Purchase Agreement, dated as of             , 20[    ], by and between ExlService Holdings, Inc. and Rohit
Kapoor. In consideration of the sale of shares of ExlService Holdings, Inc. to my spouse, as set forth in the Stock Purchase Agreement, I hereby appoint my spouse as my attorney-in-fact in respect to the exercise of any rights under the Stock
Purchase Agreement and agree to be bound by the provisions of the Stock Purchase Agreement, insofar as I may have any rights in said Stock Purchase Agreement or any shares issued pursuant thereto under the community property laws of the
[                    ] or similar laws relating to marital property in effect in the state of our residence as of the date of the signing of
the foregoing Stock Purchase Agreement. 
  

	Dated:	 	                    , 20[    ].

  

	
	
	  
	SignatureAmendment to ExlService Holdings, Inc 2006 Omnibus Award Plan

 Exhibit 10.43 
 AMENDMENT TO 
 EXLSERVICE HOLDINGS INC. 
 2006 OMNIBUS AWARD PLAN 
 The ExlService Holdings, Inc. 2006 Omnibus Award Plan
(the “Plan”) is hereby amended as follows, effective September 29, 2006: 
 1. Section 2 (mm) of the Plan is
amended to read as follows: 
 ““Senior Participant” shall mean each of the Chief Executive Officer and the President of the
Company and an employee of the Company or an Affiliate that is designated as a member of the Advisory Council (or its successor) or an employee that regularly attends the regularly scheduled meetings of the Advisory Council (or its successor) as a
special invitee thereof.” 
 2. Section 5(a) of the Plan is amended to read as follows: 
 “Subject to Section 13, the aggregate number of shares of Stock in respect of which Awards may be granted under the Plan is 1,651,077
shares;” 
 3. Continuing Effect of Plan. Except as expressly modified hereby, the provisions of the Plan are and shall remain in
full force and effect. 
 IN WITNESS HEREOF, the undersigned have acknowledged and executed this amendment to the Plan as of the date set
forth above. 
  

			
	EXLSERVICE HOLDINGS, INC.
		
	By:	 	 /s/ Rohit Kapoor

	Name:	 	Rohit Kapoor
	Title:	 	President and Chief Financial Officer

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