Document:

EXHIBIT 10.18

 

1996 STOCK INCENTIVE PLAN, AS AMENDED

Table of Contents

 

	
  1.

  	
  Purpose

  	
   

  
	
   

  	
   

  	
   

  
	
  2

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Shares and Performance Units Available
  under the Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Option Rights

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Appreciation Rights

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Restricted Shares

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Deferred Shares

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Performance Shares and Performance Units.

  	
   

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Transferability

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Adjustments

  	
   

  
	
   

  	
   

  	
   

  
	
  11.

  	
  Fractional Shares

  	
   

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Withholding Taxes

  	
   

  
	
   

  	
   

  	
   

  
	
  13.

  	
  Participation by Directors, Officers and
  Other Key Employees of or Consultants to a Less-Than-80-Percent Subsidiary

  	
   

  
	
   

  	
   

  	
   

  
	
  14.

  	
  Certain Terminations of Employment,
  Hardship and Approved Leaves of Absence

  	
   

  
	
   

  	
   

  	
   

  
	
  15.

  	
  Foreign Participants

  	
   

  
	
   

  	
   

  	
   

  
	
  16.

  	
  Administration of the Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  17.

  	
  Amendments and Other Matters

  	
   

  

 

 

1996 STOCK INCENTIVE PLAN, AS AMENDED

 

1.     Purpose. 
The purpose of this Plan is to attract and retain directors, officers
and other key employees of and consultants to Ebix, Inc. (the “Corporation”)
and its Subsidiaries and to provide such persons with incentives and rewards
for superior performance.

 

2.     Definitions. 
(a) As used in this Plan:

 

“Appreciation Right” means
a right granted pursuant to Section 5 of this Plan, including a
Free-Standing Appreciation Right and a Tandem Appreciation Right.

 

“Base Price” means
the price to be used as the basis for determining the Spread upon the exercise
of a Free-Standing Appreciation Right.

 

“Board” means
the Board of Directors of the Corporation.

 

“Code” means
the Internal Revenue Code of 1986, as amended from time to time.

 

“Committee” means
a committee of not less than two “Non-Employee Directors” (as defined in
Rule 16b-3(b)(3)(i) under Section 16(b) of the Exchange Act)
appointed by and serving at the pleasure of the Board.

 

“Common Shares” means
(i) shares of the Common Stock, par value $.10 per share, of the
Corporation and (ii) any security into which Common Shares may be
converted by reason of any transaction or event of the type referred to in
Section 10 of this Plan.

 

“Date of Grant” means
the date specified by the Board on which a grant of Option Rights, Appreciation
Rights or Performance Shares or Performance Units or a grant or sale of
Restricted Shares or Deferred Shares shall become effective, which shall not be
earlier than the date on which the Board takes action with respect thereto.

 

“Deferral Period” means
the period of time during which Deferred Shares are subject to deferral
limitations under Section 7 of this Plan.

 

“Deferred Shares” means
an award pursuant to Section 7 of this Plan of the right to receive Common
Shares at the end of a specified Deferral Period.

 

“Exchange Act” means
the Securities Exchange Act of 1934, as amended from time to time.

 

“Free-Standing Appreciation Right” means
an Appreciation Right granted pursuant to Section 5 of this Plan that is
not granted in tandem with an Option Right or similar right.

 

“Incentive Stock Option” means
an Option Right that is intended to qualify as an “incentive stock option”
under Section 422 of the Code or any successor provision thereto.

 

“Less-Than-80-Percent Subsidiary” means
a Subsidiary with respect to which the Corporation directly or indirectly owns
or controls less than 80 percent of the total combined voting or other
decision-making power.

 

“Management Objectives” means
the achievement or performance objectives established pursuant to this Plan for
Participants who have received grants of Performance Shares or Performance
Units or, when so determined by the Board, Restricted Shares.

 

“Market Value per Share” means
the fair market value of the Common Shares as determined by the Board from time
to time.

 

“Nonqualified Option” means
an Option Right that is not intended to qualify as a Tax-Qualified Option.

 

 

“Optionee” means
the person so designated in an agreement evidencing an outstanding Option
Right.

 

“Option Price” means
the purchase price payable upon the exercise of an Option Right.

 

“Option Right” means
the right to purchase Common Shares from the Corporation upon the exercise of a
Nonqualified Option or a Tax-Qualified Option granted pursuant to
Section 4, or a Replacement Option Right granted pursuant to
Section 17(c), of this Plan.

 

“Participant” means
a person who is selected by the Board to receive benefits under this Plan and
(i) is at that time a director or an officer (including officers who are
also directors) or other key employee of or a consultant to the Corporation or
any Subsidiary or (ii) has agreed to commence serving in any such
capacity.

 

“Performance Period” means,
in respect of a Performance Share or Performance Unit, a period of time
established pursuant to Section 8 of this Plan within which the Management
Objectives relating thereto are to be achieved.

 

“Performance Share” means
a bookkeeping entry that records the equivalent of one Common Share awarded
pursuant to Section 8 of this Plan.

 

“Performance Unit” means
a bookkeeping entry that records a unit equivalent to $1.00 awarded pursuant to
Section of this Plan.

 

“Replacement Option Right” means
as Option Right granted pursuant to Section 17(c) of this Plan in exchange
for the surrender and cancellation of an option to purchase shares of another
corporation that is acquired by the Corporation or a Subsidiary by merger or
otherwise.

 

“Restricted Shares” means
Common Shares granted or sold pursuant to Section 6 of this Plan as to
which neither the substantial risk of forfeiture nor the restrictions on
transfer referred to in Section 6 hereof has expired.

 

“Spread” means,
in the case of a Free-Standing Appreciation Right, the amount by which the
Market Value per Share on the date when the Appreciation Right is exercised
exceeds the Base Price specified therein or, in the case of a Tandem
Appreciation Right, the amount by which the Market Value per Share on the date
when the Appreciation Right is exercised exceeds the Option Price specified in
the related Option Right.

 

“Subsidiary” means
a corporation, partnership, joint venture, unincorporated association or other
entity in which the Corporation has a direct or indirect ownership or other
equity interest; provided, however,
for purposes of determining whether any person may be a Participant for
purposes of any grant of Incentive Stock Options, “Subsidiary” means any
corporation in which the Corporation owns or controls directly or indirectly
more than 50 percent of the total combined voting power represented by all
classes of stock issued by such corporation at the time of the grant.

 

“Tandem Appreciation Right” means
an Appreciation Right granted pursuant to Section 5 of this Plan that is
granted in tandem with an Option Right or any similar right granted under any
other plan of the Corporation.

 

“Tax-Qualified Option” means
an Option Right that is intended to qualify under particular provisions of the
Code, including but not limited to an Incentive Stock Option.

 

3.     Shares and Performance Units Available under the Plan. 
(a) Subject to adjustment as provided in Section 10 of this
Plan, the aggregate number of Common Shares covered by outstanding awards,
except Replacement Option Rights, granted under this Plan and issued or
transferred upon the exercise or payment thereof, and the aggregate number of
Performance Units granted under this Plan, shall not 

 

 

exceed 1,137,500. Common Shares issued or transferred under this Plan
may be Common Shares of original issuance or Common Shares held in treasury or
a combination thereof.

 

(b)   Subject
to adjustment as provided in Section 10 of this Plan, the aggregate number
of Common Shares covered by Replacement Option Rights granted under this Plan
during any calendar year shall not exceed five percent of the Common Shares
outstanding on January 1 of that year.

 

(c)   For
the purposes of this Section 3:

 

(i)    Upon
payment in cash of the benefit provided by any award granted under this Plan,
any Common Shares that were covered by that award shall again be available for
issuance or transfer hereunder.

 

(ii)   Common
Shares covered by any award granted under this Plan shall be deemed to have
been issued or transferred, and shall cease to be available for future issuance
or transfer in respect of any other award granted hereunder, at the earlier of
the time when they are actually issued or transferred or the time when
dividends or dividend equivalents are paid thereon; provided, however, that Restricted Shares shall be deemed to
have been issued or transferred at the earlier of the time when they cease to
be subject to a substantial risk of forfeiture or the time when dividends are
paid thereon.

 

(iii)  Performance
Units that are granted under this Plan, but are not earned by the Participant
at the end of the Performance Period, shall be available for future grants of
Performance Units hereunder.

 

(d)   Subject
to adjustment as provided in Section 10 of this Plan, the maximum number
of shares of Common Stock that may be covered by Option Rights, Appreciation
Rights, Restricted Shares, Deferred Shares and Performance Shares, in the
aggregate, granted to any one Participant during any calendar year shall be
125,000 shares.

 

4.     Option Rights. 
The Board may from time to time authorize grants to Participants of
Option Rights upon such terms and conditions as the Board may determine in
accordance with the following provisions:

 

(a)   Each
grant shall specify the number of Common Shares to which it pertains.

 

(b)   Each
grant shall specify an Option Price per Common Share, which shall be equal to
or greater than the Market Value per Share on the Date of Grant; provided, however, that the Option Price
per Common Share of a Replacement Option Right may be less that the Market
Value per Share on the Date of Grant.

 

(c)   Each
grant shall specify the form of consideration to be paid in satisfaction of the
Option Price and the manner of payment of such consideration, which may include
(i) cash in the form of currency or check or other cash equivalent
acceptable to the Corporation, (ii) nonforfeitable, unrestricted Common
Shares that are already owned by the optionee and have a value at the time of
exercise that is equal to the Option Price, (iii) any other legal
consideration that the Board may deem appropriate, including but not limited to
any form of consideration authorized under Section (d) below, on such
basis as the Board may determine in accordance with this Plan and (iv) any
combination of the foregoing.

 

(d)   On
or after the Date of Grant of any Nonqualified Option, the Board may determine
that payment of the Option Price may also be made in whole or in part in the
form of Restricted Shares or other Shares that are subject to risk of
forfeiture or restrictions on transfer. Unless otherwise determined by the
Board on or after the Date of Grant, whenever any Option Price is paid in whole
or in part by means of any of the forms of consideration specified in this 

 

 

Section 4(d), the Common Shares received by the Optionee upon the
exercise of the Nonqualified Option shall be subject to the same risks of
forfeiture or restrictions on transfer as those that applied to the
consideration surrendered by the optionee; provided,
however, that such risks of forfeiture and restrictions on transfer
shall apply only to the same number of Common Shares received by the optionee
as applied to the forfeitable or restricted Common Shares surrendered by the
Optionee.

 

(e)   Any
grant may provide for deferred payment of the Option Price from the proceeds of
sale through a broker on the date of exercise of some or all of the Common
Shares to which the exercise relates.

 

(f)    Successive
grants may be made to the same Participant regardless of whether any Option
Rights previously granted to the Participant remain unexercised.

 

(g)   Each
grant may specify a period or periods of continuous employment of the Optionee
by the Corporation or any Subsidiary that are necessary before the Option
Rights or installments thereof shall become exercisable, and any grant may
provide for the earlier exercise of the Option Rights in the event of a change
in control of the Corporation or other similar transaction or event.

 

(h)   Option
Rights granted pursuant to this Section 4 may be Nonqualified Options or
Tax-Qualified Options or combinations thereof.

 

(i)    On
or after the Date of Grant of any Nonqualified Option, the Board may provide
for the payment to the Optionee of dividend equivalents thereon in cash or
Common Shares on a current, deferred or contingent basis, or the Board may
provide that any dividend equivalents shall be credited against the Option
Price.

 

(j)    No
Option Right granted pursuant to this Section 4 may be exercised more than
10 years from the Date of Grant.

 

(k)   Each
grant shall be evidenced by an agreement, which shall be executed on behalf of
the Corporation by an officer thereof and delivered to and accepted by the
Optionee and shall contain such terms and provisions as the Board may determine
consistent with this Plan.

 

5.     Appreciation
Rights.  The Board may also authorize grants to
Participants of Appreciation Rights. An Appreciation Right shall be a right of
the Participant to receive from the Corporation an amount, which shall be
determined by the Board and shall be expressed as a percentage (not exceeding
100 percent) of the Spread at the time of the exercise of an Appreciation
Right. Any grant of Appreciation Rights under this Plan shall be upon such
terms and conditions as the Board may determine in accordance with the
following provisions:

 

(a)   Any
grant may specify that the amount payable upon the exercise of an Appreciation
Right may be paid by the Corporation in cash, Common Shares or any combination
thereof and may (i) either grant to the Participant or reserve to the
Board the right to elect among those alternatives or (ii) preclude the
right of the Participant to receive and the Corporation to issue Common Shares
or other equity securities in lieu of cash.

 

(b)   Any
grant may specify that the amount payable upon the exercise of an Appreciation
Right shall not exceed a maximum specified by the Board on the Date of Grant.

 

(c)   Any
grant may specify (i) a waiting period or periods before Appreciation
Rights shall become exercisable and (ii) permissible dates or periods on
or during which Appreciation Rights shall be exercisable.

 

(d)   Any
grant may specify that an Appreciation Right may be exercised only in the event
of a change in control of the Corporation or other similar transaction or
event.

 

 

(e)   On
or after the Date of Grant of any Appreciation Rights, the Board may provide
for the payment to the Participant of dividend equivalents thereon in cash or
Common Shares on a current, deferred or contingent basis.

 

(f)    Each
grant shall be evidenced by an agreement, which shall be executed on behalf of
the Corporation by any officer thereof and delivered to and accepted by the
Optionee and shall describe the subject Appreciation Rights, identify any
related Option Rights, state that the Appreciation Rights are subject to all of
the terms and conditions of this Plan and contain such other terms and
provisions as the Board may determine consistent with this Plan.

 

(g)   Regarding
Tandem Appreciation Rights only: Each grant shall provide that a Tandem
Appreciation Right may be exercised only (i) at a time when the related
Option Right (or any similar right granted under any other plan of the
Corporation) is also exercisable and the Spread is positive and (ii) by
surrender of the related Option Right (or such other right) for cancellation.

 

(h)   Regarding
Free-Standing Appreciation Rights only:

 

(i)    Each
grant shall specify in respect of each Free-Standing Appreciation Right a Base
Price per Common Share, which shall be equal to or greater than the Market
Value per Share on the Date of Grant;

 

(ii)   Successive
grants may be made to the same Participant regardless of whether any Free-Standing
Appreciation Rights previously granted to the Participant remain unexercised;

 

(iii)  Each
grant shall specify the period or periods of continuous employment of the
Participant by the Corporation or any Subsidiary that are necessary before the
Free-Standing Appreciation Rights or installments thereof shall become
exercisable, and any grant may provide for the earlier exercise of the
Free-Standing Appreciation Rights in the event of a change in control of the
Corporation or other similar transaction or event; and

 

(iv)  No
Free-Standing Appreciation Right granted under this Plan may be exercised more
than 10 years from the Date of Grant.

 

6.     Restricted
Shares.  The Board may also authorize grants or sales
to Participants of Restricted Shares upon such terms and conditions as the
Board may determine in accordance with the following provisions:

 

(a)   Each
grant or sale shall constitute an immediate transfer of the ownership of Common
Shares to the Participant in consideration of the performance of services,
entitling the Participant to dividend, voting and other ownership rights,
subject to the substantial risk of forfeiture and restrictions on transfer
hereinafter referred to.

 

(b)   Each
grant or sale may be made without additional consideration from the Participant
or in consideration of a payment by the Participant that is less than the
Market Value per Share on the Date of Grant.

 

(c)   Each
grant or sale shall provide that the Restricted Shares covered thereby shall be
subject to a “substantial risk of forfeiture” within the meaning of
Section 83 of the Code for a period to be determined by the Board on the
Date of Grant, and any grant or sale may provide for the earlier termination of
such period in the event of a change in control of the Corporation or other
similar transaction or event.

 

(d)   Each
grant or sale shall provide that, during the period for which such substantial
risk of forfeiture is to continue, the transferability of the Restricted Shares
shall be prohibited or restricted in the manner and to the extent prescribed by
the Board on the Date of Grant. Such restrictions may include, but are not
limited to, rights of repurchase or first refusal in the

 

 

Corporation or provisions subjecting the Restricted Shares to a
continuing substantial risk of forfeiture in the hands of any transferee.

 

(e)   Any
grant or sale may require that any or all dividends or other distributions paid
on the Restricted Shares during the period of such restrictions be
automatically sequestered and reinvested on an immediate or deferred basis in
additional Common Shares, which may be subject to the same restrictions as the
underlying award or such other restrictions as the Board may determine.

 

(f)    Each
grant or sale shall be evidenced by an agreement, which shall be executed on
behalf of the Corporation by any officer thereof and delivered to and accepted
by the Participant and shall contain such terms and provisions as the Board may
determine consistent with this Plan. Unless otherwise directed by the Board,
all certificates representing Restricted Shares, together with a stock power
that shall be endorsed in blank by the Participant with respect to the
Restricted Shares, shall be held in custody by the Corporation until all
restrictions thereon lapse.

 

7.     Deferred Shares. 
The Board may also authorize grants or sales to Participants of Deferred
Shares upon such terms and conditions as the Board may determine in accordance
with the following provisions:

 

(a)   Each
grant or sale shall constitute the agreement by the Corporation to issue or
transfer Common Shares to the Participant in the future in consideration of the
performance of services, subject to the fulfillment during the Deferral Period
of such conditions as the Board may specify.

 

(b)   Each
grant or sale may be made without additional consideration from the Participant
or in consideration of a payment by the Participant that is less than the
Market Value per Share on the Date of Grant.

 

(c)   Each
grant or sale shall provide that the Deferred Shares covered thereby shall be
subject to a Deferral Period, which shall be fixed by the Board on the Date of
Grant, and any grant or sale may provide for the earlier termination of the
Deferral Period in the event of a change in control of the Corporation or other
similar transaction or event.

 

(d)   During
the Deferral Period, the Participant shall not have any right to transfer any
rights under the subject award, shall not have any rights of ownership in the
Deferred Shares and shall not have any right to vote the Deferred Shares, but
the Board may on or after the Date of Grant authorize the payment of dividend
equivalents on the Deferred Shares in cash or additional Common Shares on a
current, deferred or contingent basis.

 

(e)   Each
grant or sale shall be evidenced by an agreement, which shall be executed on
behalf of the Corporation by any officer thereof and delivered to and accepted
by the Participant and shall contain such terms and provisions as the Board may
determine consistent with this Plan.

 

8.     Performance Shares and Performance Units. 
The Board may also authorize grants of Performance Shares and
Performance Units, which shall become payable to the Participant upon the
achievement of specified Management Objectives, upon such terms and conditions
as the Board may determine in accordance with the following provisions:

 

(a)   Each
grant shall specify the number of Performance Shares or Performance Units to
which it pertains, which may be subject to adjustment to reflect changes in
compensation or other factors.

 

(b)   The
Performance Period with respect to each Performance Share or Performance Unit
shall be determined by the Board on the Date of Grant and may be subject to
earlier termination in the event of a change in control of the Corporation or
other similar transaction or event.

 

 

(c)   Each
grant shall specify the Management Objectives that are to be achieved by the
Participant, which may be described in terms of Corporation-wide objectives or
objectives that are related to the performance of the individual Participant or
the Subsidiary, division, department or function within the Corporation or
Subsidiary in which the Participant is employed.

 

(d)   Each
grant shall specify in respect of the specified Management Objectives a minimum
acceptable level of achievement below which no payment will be made and shall
set forth a formula for determining the amount of any payment to be made if
performance is at or above the minimum acceptable level but falls short of full
achievement of the specified Management Objectives.

 

(e)   Each
grant shall specify the time and manner of payment of Performance Shares or
Performance Units that shall have been earned, and any grant may specify that
any such amount may be paid by the Corporation in cash, Common Shares or any
combination thereof and may either grant to the Participant or reserve to the
Board the right to elect among those alternatives.

 

(f)    Any
grant of Performance Shares may specify that the amount payable with respect
thereto may not exceed a maximum specified by the Board on the Date of Grant.
Any grant of Performance Units may specify that the amount payable, or the
number of Common Shares issuable, with respect thereto may not exceed maximums
specified by the Board on the Date of Grant.

 

(g)   On
or after the Date of Grant of Performance Shares, the Board may provide for the
payment to the Participant of dividend equivalents thereon in cash or
additional Common Shares on a current, deferred or contingent basis.

 

(h)   The
Board may adjust Management Objectives and the related minimum acceptable level
of achievement if, in the sole judgment of the Board, events or transactions
have occurred after the Date of Grant that are unrelated to the performance of
the Participant and result in distortion of the Management Objectives or the
related minimum acceptable level of achievement.

 

(i)    Each
grant shall be evidenced by an agreement, which shall be executed on behalf of
the Corporation by any officer thereof and delivered to and accepted by the
Participant and shall contain such terms and provisions as the Board may
determine consistent with this Plan.

 

9.     Transferability. 
(a) Any grant of an Option Right or other “derivative security” (as
defined in Rule 16a-1 (c) under Section 16(a) of the Exchange
Act) under this Plan may permit the transfer thereof by the Participant upon
such terms and conditions as the Board shall specify.

 

(b)   Any
grant made under this Plan may provide that all or any part of the Common
Shares that are to be issued or transferred by the Corporation upon the
exercise of Option Rights or Appreciation Rights or upon the termination of the
Deferral Period applicable to Deferred Shares or in payment of Performance
Shares or Performance Units, or are no longer subject to the substantial risk
of forfeiture and restrictions on transfer referred to in Section 6 of
this Plan, shall be subject to further restrictions upon transfer.

 

10.   Adjustments. 
The Board may make or provide for such adjustments in the number of
Common Shares covered by outstanding Option Rights, Appreciation Rights, Deferred
Shares and Performance Shares granted hereunder, the Option Prices per Common
Share or Base Prices per Common Share applicable to any such Option Rights and
Appreciation Rights, and the kind of shares (including shares of another
issuer) covered thereby, as the Board may in good faith determine to be
equitably required in order to prevent dilution or expansion of the rights of
Participants that otherwise would result from (a) any stock dividend,
stock split, combination of shares, recapitalization or other change in the
capital structure of the Corporation or (b) any merger, consolidation,
spin-off, spin-out, split-off, split-up, reorganization, partial or complete
liquidation or other distribution of assets, issuance 

 

 

of warrants or other rights to purchase
securities or any other corporate transaction or event having an effect similar
to any of the foregoing. In the event of any such transaction or event, the
Board may provide in substitution for any or all outstanding awards under this
Plan such alternative consideration as it may in good faith determine to be
equitable under the circumstances and may require in connection therewith the
surrender of all awards so replaced. Moreover, the Board may on or after the
Date of Grant provide in the agreement evidencing any award under this Plan
that the holder of the award may elect to receive an equivalent award in
respect of securities of the surviving entity of any merger, consolidation or
other transaction or event having a similar effect, or the Board may provide
that the holder will automatically be entitled to receive such an equivalent
award. The Board may also make or provide for such adjustments in the numbers
of Common Shares specified in Sections 3(a)(i) and 3(a)(ii) of this
Plan as the Board may in good faith determine to be appropriate in order to
reflect any transaction or event described in this Section 10.

 

11.   Fractional
Shares.  The Corporation shall not be required to
issue any fractional Common Shares pursuant to this Plan. The Board may provide
for the elimination of fractions or for the settlement thereof in cash.

 

12.   Withholding
Taxes.  To the extent that the Corporation is
required to withhold federal, state, local or foreign taxes in connection with
any payment made or benefit realized by a Participant or other person under
this Plan, and the amounts available to the Corporation for the withholding are
insufficient, it shall be a condition to the receipt of any such payment or the
realization of any such benefit that the Participant or such other person make
arrangements satisfactory to the Corporation for payment of the balance of any
taxes required to be withheld. At the discretion of the Board, any such
arrangements may include relinquishment of a portion of any such payment or benefit.
The Corporation and any Participant or such other person may also make similar
arrangements with respect to the payment of any taxes with respect to which
withholding is not required.

 

13.   Participation by Directors, Officers and Other Key Employees of or
Consultants to a Less-Than-80-Percent Subsidiary. 
As a condition to the effectiveness of any grant or award to be made
hereunder to a Participant who is a director or an officer or other key
employee of or a consultant to a Less-Than-80-Percent Subsidiary, regardless of
whether the Participant is also employed by the Corporation or another
Subsidiary, the Board may require the Less-Than-80-Percent Subsidiary to agree
to transfer to the Participant (as, if and when provided for under this Plan and
any applicable agreement entered into between the Participant and the
Less-Than-80-Percent Subsidiary pursuant to this Plan) the Common Shares that
would otherwise be delivered by the Corporation upon receipt by the Less-Than
80-Percent Subsidiary of any consideration then otherwise payable by the
Participant to the Corporation. Any such award may be evidenced by an agreement
between the Participant and the Less-Than-80-Percent Subsidiary, in lieu of the
Corporation, on terms consistent with this Plan and approved by the Board and
the Less-Than-80-Percent Subsidiary. All Common Shares so delivered by or to a
Less-Than-80-Percent Subsidiary will be treated as if they had been delivered
by or to the Corporation for purposes of Section 3 of this Plan, and all references
to the Corporation in this Plan shall be deemed to refer to the
Less-Than-80-Percent Subsidiary except with respect to the definitions of the
Board and the Committee and in other cases where the context otherwise
requires.

 

14.   Certain Terminations of Employment,
Hardship and Approved Leaves of Absence.  Notwithstanding any other provision of this
Plan to the contrary, in the event of termination of employment by reason of
death, disability, normal retirement, early retirement with the consent of the
Corporation, termination of employment to enter public service with the consent
of the Corporation or leave of absence approved by the Corporation, or in the
event of hardship or other special circumstances, of a Participant who holds an
Option Right or Appreciation Right that is not immediately and fully
exercisable, any Restricted Shares as to which the substantial risk of
forfeiture or the prohibition or restriction on transfer has not lapsed, any
Deferred Shares as to which the Deferral Period is not complete, any
Performance Shares or Performance Units that have not been fully earned, 

 

 

or any Common Shares that are subject to any
transfer restriction pursuant to Section 9[(b)] of this Plan, the Board
may take any action that it deems to be equitable under the circumstances or in
the best interests of the Corporation, including without limitation waiving or
modifying any limitation or requirement with respect to any award under this
Plan.

 

15.   Foreign
Participants.  In order to facilitate the making of any
award or combination of awards under this Plan, the Board may provide for such
special terms for awards to Participants who are foreign nationals, or who are
employed by the Corporation or any Subsidiary outside of the United States of
America, as the Board may consider necessary or appropriate to accommodate
differences in local law, tax policy or custom. Moreover, 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, however that no such
supplements, amendments, restatements or alternative versions shall include any
provisions that are inconsistent with the terms of this Plan, as then in
effect, unless this Plan could have been amended to eliminate the inconsistency
without further approval by the stockholders of the Corporation.

 

16.   Administration of the Plan.  (a) This Plan shall be administered by
the Board, which may delegate any or all of its authority hereunder to the
Committee. To the extent of any such delegation, references in this Plan to the
Board shall be deemed to refer to the Committee, unless the context requires
otherwise. A majority of the Board shall constitute a quorum, and the acts of
the members of the Board who are present at any meeting thereof at which a
quorum is present, or acts unanimously approved by the members of the Board in
writing, shall be the acts of the Board.

 

(b)   The
interpretation and construction by the Board of any provision of this Plan or
any agreement, notification or document evidencing the grant of Option Rights,
Appreciation Rights, Restricted Shares, Deferred Shares, Performance Shares or
Performance Units, and any determination by the Board pursuant to any provision
of this Plan or any such agreement, notification or document, shall be final
and conclusive. No member of the Board shall be liable for any such action
taken or determination made in good faith.

 

17.   Amendments
and Other Matters.  (a) This Plan may be amended from time
to time by the Board; provided, however except
as expressly authorized by this Plan, no such amendment shall increase the
numbers of Common Shares specified in Sections 3(a)(i) and
3(a)(ii) hereof or the number of Performance Units specified in
Section 3(b) hereof without the further approval of the stockholders of
the Corporation.

 

(b)   With
the concurrence of the affected Participant, the Board may cancel any agreement
evidencing Option Rights or any other award granted under this Plan. In the
event of any such cancellation, the Board may authorize the granting of new
Option Rights or other awards hereunder, which may or may not cover the same
number of Common Shares as had been covered by the cancelled Option Rights or
other award, at such Option Price, in such manner and subject to such other
terms, conditions and discretion as would have been permitted under this Plan
had the cancelled Option Rights or other award not been granted.

 

(c)   The
Board may grant under this Plan any award or combination of awards authorized
under this Plan, including but not limited to Replacement Option Rights, in
exchange for the surrender and cancellation of an award that was not granted under
this Plan, including but not limited to an award that was granted by the
Corporation or a Subsidiary, or by another corporation that is acquired by the
Corporation or a Subsidiary by merger or otherwise, prior to the adoption of
this Plan by the Board, and any such award or combination of awards so granted
under this Plan may or may not cover the same number of Common Shares as had
been covered by the cancelled award and shall be subject to such other terms,
conditions and discretion as would have been permitted under this Plan had the
cancelled award not been granted.

 

 

(d)   This
Plan shall not confer upon any Participant any right with respect to
continuance of employment with the Corporation or any Subsidiary and shall not
interfere in any way with any right that the Corporation or any Subsidiary
would otherwise have to terminate any Participant’s employment at any time.

 

(e)   To
the extent that any provision of this Plan would prevent any Option Right that
was intended to qualify as a Tax-Qualified Option from so qualifying, any such
provision shall be null and void with respect to any such Option Right; provided, however that any such provision
shall remain in effect with respect to other Option Rights, and there shall be
no further effect on any provision of this Plan.

 

(f)    Notwithstanding
the foregoing, neither the Board nor any committee of the Board shall
(i) amend an Option Right to reduce its Option Price, (ii) cancel an
Option Right and regrant an Option Right with a lower Option Price than the
original Option Price of the cancelled Option Right, or (iii) take any
other action (whether in the form of an amendment, cancellation or replacement
grant) that has the effect of repricing an Option Right.Exhibit
10.20

 

FIRST
AMENDMENT TO

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

This
First Amendment to Amended and Restated Loan and Security Agreement (this
“Amendment”) is dated as of the 1st day of July, 2004 and is between EBIX,
INC., a Delaware corporation (the “Company”), and LaSalle Bank National
Association (“Bank”).

W I T N E S S E T H:

WHEREAS,
the Company and Bank are parties to that certain Amended and Restated Loan and
Security Agreement dated as of April     , 2004 (as
amended, restated, modified or supplemented and in effect from time to time,
the “Credit Agreement”);

WHEREAS, the Company has requested that the Bank
consent to the Acquisition (as hereinafter defined) and that the credit
facilities under the Credit Agreement be
modified to permit an extension of the maturity of certain Letters of Credit to
be issued in connection therewith and to permit the repurchase of certain Stock
to be issued in connection therewith; and

WHEREAS, subject to the terms and conditions of this
Amendment, Bank is agreeable to such request.

NOW, THEREFORE, the parties hereto hereby agree as
follows:

1.                                       Definitions.  Capitalized terms used in this Amendment and
not otherwise defined herein are used with the meanings given such terms in the
Credit Agreement.  In addition, for
purposes of this Amendment the terms defined in Section 2(A) of this Amendment
shall have the meanings indicated therein.

2.                                       Amendments to
the Credit Agreement.  Effective
on the Amendment Effective Date, the Credit Agreement shall be amended as
follows:

(A)                              Section 1.01 of
the Credit Agreement shall be amended by the addition thereto of the following
additional defined terms, each in its appropriate alphabetical place:

“Amendment”
means that certain First Amendment to Amended and Restated Loan and Security
Agreement dated as of July 1, 2004 between the Company and the Bank.

“Amendment
Effective Date” means the date upon which the Amendment is executed by the
Company and Bank and each of the other conditions specified in Section 3
thereof have been satisfied.

“Acquisition”
means the acquisition by Ebix Australia Pty Ltd. of the assets of Heart
Consulting Services Pty Ltd. in accordance with the terms of the Heart
Consulting Acquisition Agreement.

 

“Heart
Consulting Acquisition Agreement” shall mean that certain Agreement dated
as of July 1, 2004, between Ebix Australia Pty Ltd. and Heart Consulting
Services Pty Ltd., pursuant to which Ebix Australia Pty Ltd. is purchasing the
assets of and assuming certain liabilities of Heart Consulting Services Pty
Ltd.

“Heart
Consulting Letters of Credit” mean the three Letters of Credit to be issued
to Heart Consulting Services Pty Ltd. under the Heart Consulting Acquisition
Agreement with expiry dates of July 10, 2005, July 10, 2006 and July 10, 2007
respectively.

“Repurchase
Agreement” means the Agreement dated as of July 1, 2004, between the
Company and Heart Consulting Services Pty Ltd. providing for the redemption of
certain Stock held by Heart Consulting Services Pty Ltd. issued in connection
with the Acquisition.

(B)                                The second
sentence of Section 2.01(E) of the Credit Agreement is amended in its entirety
to read as follows:

“Each
Letter of Credit (other than the Heart Consulting Letters of Credit) shall have
an expiry date no later than 365 days after the Revolving Credit Termination
Date and will be secured by cash on terms reasonably acceptable to Bank if
outstanding at any time after the Revolving Credit Loan Termination Date if not
extended by Bank.”

(C)           Section 6.08 of the Credit Agreement
is hereby amended in its entirety to read as follows:

“Declare
or pay any dividends, or redeem or repurchase any of, or make any other payment
or distribution on account of, any Stock, except as provided in the Repurchase
Agreement.”

3.                                       Conditions to
Amendment Effective Date.  This
Amendment shall become effective and the Amendment Effective Date shall occur
upon completion of each of the following conditions to the reasonable
satisfaction of Bank:

(A)                              Execution and
Delivery of This Amendment.  This Amendment shall have been duly executed
by the Company and Bank;

(B)                                Secretary’s
Certificates; Resolutions; Incumbency.  The Company shall have delivered to Bank a
certificate of the Secretary or Assistant Secretary of the Company certifying:

(i)                                     the names,
offices and true signatures of the officers of the Company authorized to
execute, deliver and perform, as applicable, this Amendment; and

(ii)                                  true and
correct copies of resolutions of the board of directors of the Company
approving and authorizing the execution, delivery and performance by the
Company of this Amendment, and the Repurchase Agreement;

 

(C)                                Copies of
Documents.  Copies,
certified by the Secretary of the Company, of the agreements, instruments and
documents executed and delivered in connection with the closing of the
Acquisition.

(D)                               No Defaults.  No Event of Default shall have occurred and
be continuing under the Credit Agreement; and

4.                                       Representations
and Warranties.  To induce
Bank to enter into this Amendment, the Company represents and warrants that:

(A)                              the execution,
delivery and performance by the Company of this Amendment and the other
instruments, documents and agreements of the Company contemplated hereby have
been duly authorized by all requisite corporate action on the part of the
Company;

(B)                                this Amendment
has been and each other instrument, document or agreement of the Company to be
delivered in connection herewith will be when delivered, duly executed and
delivered by the Company and will constitute a valid and binding obligation of
the Company, enforceable in accordance with its terms except as such
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors’ rights generally or by
general principals of equity; and

(C)                                No Event of
Default exists as of the date of this Amendment; and

5.                                       Consent and
Waiver.  The Company has informed Bank
that the Company has formed Ebix Australia Pty Ltd. as a wholly-owned
Subsidiary of the Company, for the purpose of acquiring the assets of Heart
Consulting Services Pty Ltd.   The
Company requests that Bank consent to consummation of the Acquisition, issuance
of the Stock to Heart Consulting Services Pty Ltd. in connection therewith,
issuance of the Heart Consulting Letters of Credit and waive any Event of
Default which would otherwise arise under the Credit Agreement by reason of the
foregoing.

Effective on the Amendment Effective Date, Bank
agrees to such requests of the Company and consents to such actions by the
Company and Ebix Australia Pty Ltd. and waives any Event of Default which may
arise by reason of such actions by the Company and Ebix Australia Pty Ltd.
under the Heat Consulting Acquisition Agreement and Repurchase Agreement.

6.                                       Miscellaneous.

(A)                              Counterparts.  This Amendment may be executed in any number
of counterparts, each of which when so executed and delivered shall be an
original, but all of which shall constitute one and the same instrument.  It shall not be necessary in making proof of
this Amendment to produce or account for more than one such counterpart for
each of the parties hereto.  Delivery by
facsimile by any of the parties hereto of an executed counterpart of this
Amendment shall be effective as an original executed counterpart hereof and
shall be deemed a representation that an original executed counterpart hereof
will be delivered.

 

(B)                                Headings.  The headings of the sections and subsections
hereof are provided for convenience only and shall not in any way affect the
meaning or construction of any provision of this Amendment.

(C)                                Governing Law.  This Amendment and the rights and obligations
of the parties shall be construed and interpreted in accordance with the laws
of the State of Illinois.

(D)                               Severability.  If any provision of any of this Amendment is
determined to be illegal, invalid or enforceable, such provision shall be fully
severable and the remaining provisions shall remain full force and effect and
shall be construed without giving effect to the illegal, invalid or enforceable
provisions.

(E)                                 Successors and
Assigns.  This Amendment shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.

(F)                                 References;
Loan Document.  From and
after the date of execution of this Amendment, any reference to the Credit
Agreement contained in any notice, request, certificate or other instrument,
document or agreement executed concurrently with or after the execution and
delivery of this Amendment shall be deemed to include this Amendment unless the
context shall otherwise require.

[Balance of page left intentionally blank; signature
page follows.]

IN WITNESS WHEREOF, the parties have executed this Amendment as of the
date first set forth above.

	
  EBIX,
  INC.

  
	
   

  
	
   

  
	
  By:

  	
   /s/ RJ Baum

  	
   

  
	
  Name:

  	
  RJ Baum

  	
   

  
	
  Title:

  	
    CFO

  	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  LASALLE
  BANK NATIONAL ASSOCIATION

  
	
   

  
	
   

  
	
  By:

  	
   /s/ Wm Robertson

  	
   

  
	
  Name:

  	
  Wm Robertson

  	
   

  
	
  Title:

  	
    SVP

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