Document:

exv4w6

Exhibit 4.6

FORM OF MEDQUIST HOLDINGS INC.

RESTRICTED STOCK AWARD AGREEMENT

          THIS RESTRICTED STOCK AWARD AGREEMENT (this “Award” or “Agreement”) is made by
and between MedQuist Holdings Inc. (the “Company”) and Roger L. Davenport (the
“Grantee”) as of this __ day of July, 2011 (the “Effective Date”).

          WHEREAS, in order to induce the Grantee to join the employ of the Company, and to further
align the Grantee’s financial interests with those of the Company’s stockholders, the Board
approved this Award of shares of common stock of the Company subject to the restrictions and on the
terms and conditions contained in this Agreement (the “Restricted Stock”); and

          WHEREAS, this Award of Restricted Stock is intended to constitute a non-plan based “inducement
grant,” as described in the Nasdaq Listing Rule 5635(c)(4).

          NOW, THEREFORE, in consideration of these premises and the agreements set forth herein, the
parties, intending to be legally bound hereby, agree as follows:

     1. Award of Restricted Shares.

          (a) The Company hereby awards the Grantee 250,000 shares of Restricted Stock (the
“Restricted Shares”).

          (b) The Company maintains the MedQuist Holdings Inc. 2010 Equity Incentive Plan (the
“Plan”), which provides the general terms and restrictions for certain equity incentive
awards made to the Company’s employees, directors, consultants, and other individuals who provide
services to the Company. This Award of Restricted Stock is not awarded pursuant to the Plan and
the Restricted Shares granted hereunder shall not be granted from the shares of Common Stock set
aside for Awards to be made under the Plan, but rather is intended to constitute a non-plan based
“inducement grant,” as described in Nasdaq Listing Rule 5635(c)(4). Nonetheless, the terms and
provisions of the Plan relating to restricted stock (including, without limitation, Sections 4, 9
and 12 of the Plan) are hereby incorporated into this Agreement by this reference, as though fully
set forth herein, as if the Restricted Shares were granted pursuant to the Plan. Except as
otherwise expressly set forth herein, this Agreement shall be construed in accordance with the
provisions of the Plan and any interpretations, amendments, rules and regulations promulgated by
the Committee from time to time pursuant to the Plan. Unless the context herein otherwise
requires, the terms defined in the Plan shall have the same meanings herein.

     2. Vesting of Restricted Shares. The Restricted Shares are subject to forfeiture to
the Company until they become vested and non-forfeitable in accordance with this Section 2. While
subject to forfeiture, the Restricted Shares may not be sold, pledged, assigned, otherwise
encumbered or transferred in any manner, whether voluntarily or involuntarily by the operation of
law.

          (a) Provided the Grantee remains in continuous service with the Company through each
applicable vesting date, the Restricted Shares subject hereto shall become vested and
non-forfeitable as follows:

               i. 33 1/3% of the total number of Restricted Shares subject hereto shall become
vested and non-forfeitable on the first anniversary of the Effective Date; and

               ii. 16 2/3% of the total number of Restricted Shares subject hereto shall become
vested and non-forfeitable on the each of the 18-month, 24-month, 30-month and 36-month
anniversaries of the Effective Date.

 

 

          (b) Upon cessation of the Grantee’s service with the Company for any reason, any Restricted
Shares which then remain forfeitable will immediately and automatically, without any action on the
part of the Company, be forfeited, and the Grantee will have no further rights with respect to
those shares.

          (c) Solely for purposes of this Agreement, employment or service with the Company will be
deemed to include employment or service with any subsidiary or Affiliate of the Company (for only
so long as such entity remains a subsidiary or Affiliate).

          (d) Notwithstanding the foregoing, if the Grantee’s employment is terminated by the Company
without “Cause” (other than by reason of death or “Disability”) or if the Grantee resigns for “Good
Reason,” as those terms are defined in the Employment Agreement dated July [ ] , 2011 by
and between Company and Grantee (the “Employment Agreement”) (provided that in either such
case the Grantee does not immediately thereafter commence employment with an Affiliate of the
Company) and the Grantee timely complies with the conditions set forth in the Employment Agreement
regarding the execution of a release of claims in favor of the Company, the Restricted Shares shall
become fully vested and non-forfeitable at the time specified in the Employment Agreement.

          (e) The Restricted Shares shall become fully vested and non-forfeitable upon the consummation
of a “Change in Control,” as that term is defined in the Employment Agreement.

     3. Issuance of Shares.

          (a) The Company will cause the Restricted Shares to be issued in the Grantee’s name either by
book-entry registration or issuance of a stock certificate or certificates.

          (b) Unless otherwise provided by the Committee in writing, the Restricted Shares shall not be
transferable by Grantee other than by will or the laws of descent and distribution.

          (c) While the Restricted Shares remain forfeitable, the Company will cause an appropriate
stop-transfer order to be issued and to remain in effect with respect to the Restricted Shares. As
soon as practicable following the time that any Restricted Share becomes nonforfeitable (and
provided that appropriate arrangements have been made with the Company for the withholding or
payment of any taxes that may be due with respect to such share), the Company will cause that
stop-transfer order to be removed. The Company may also condition delivery of certificates for
Restricted Shares upon receipt from the Grantee of any undertakings that it may determine are
appropriate to facilitate compliance with federal and state securities laws.

          (d) If any certificate is issued in respect of Restricted Shares, that certificate will be
legended and held in escrow by the Company or an agent of the Company. In addition, the Grantee
may be required to execute and deliver to the Company a stock power with respect to those
Restricted Shares. At such time as those Restricted Shares become nonforfeitable, the Company will
cause a new certificate to be issued without that portion of the legend referencing the previously
applicable forfeiture conditions and will cause that new certificate to be delivered to the Grantee
(provided that appropriate arrangements have been made with the Company for the withholding or
payment of any taxes that may be due with respect to such shares).

     4. Substitute Property. If, while any of the Restricted Shares remain subject to
forfeiture, there occurs a merger, reclassification, recapitalization, stock split, stock dividend
or other similar event or transaction resulting in new, substituted or additional securities being
issued or delivered to the Grantee by reason of the Grantee’s ownership of the Restricted Shares,
such securities will constitute “Restricted

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Shares” for all purposes of this Agreement and any certificate issued to evidence such
securities will immediately be deposited with the secretary of the Company (or his or her designee)
and subject to the escrow described in Section 3, above.

     5. Rights of Grantee During Restricted Period. The Grantee will have the right to
vote the Restricted Shares and to receive dividends and distributions with respect to the
Restricted Shares; provided, however, that any cash dividends or distributions paid in respect of
the Restricted Shares while those shares remain subject to forfeiture will be withheld by the
Company and will be delivered to the Grantee (without interest and net of any required tax
withholding) only if and when the Restricted Shares giving rise to such dividends or distributions
become vested and non-forfeitable.

     6. Securities Laws. The Board may from time to time impose any conditions on the
Restricted Shares as it deems necessary or advisable to ensure that the Restricted Shares are
issued and sold in compliance with the requirements of any stock exchange or quotation system upon
which the shares are then listed or quoted, the Securities Act of 1933 and all other applicable
laws.

     7. Tax Consequences.

          (a) The Grantee acknowledges that the Company has not advised the Grantee regarding the
Grantee’s income tax liability in connection with the grant or vesting of the Restricted Shares.
The Grantee has had the opportunity to review with his or her own tax advisors the federal, state
and local tax consequences of the transactions contemplated by this Agreement. The Grantee is
relying solely on such advisors and not on any statements or representations of the Company or any
of its agents. The Grantee understands that the Grantee (and not the Company) shall be responsible
for the Grantee’s own tax liability that may arise as a result of the transactions contemplated by
this Agreement.

          (b) If the Grantee makes an election under Section 83(b) of the Code with respect to the grant
of the Restricted Shares, the Grantee agrees to notify the Company in writing on the day of such
election. The amount includible in the Grantee’s income as a result of that election will be
subject to tax withholding. The Grantee will be required to remit to the Company in cash, or make
other arrangements reasonably satisfactory to the Company for the satisfaction of such tax
withholding amount; failure to do so within three business days of making the Section 83(b)
election will result in forfeiture of all the Restricted Shares.

          (c) The Grantee shall be required to pay to the Company or any Affiliate, and the Company or
any Affiliate shall have the right and is hereby authorized to withhold, from any cash, shares of
Common Stock, other securities or other property deliverable under any Award or from any
compensation or other amounts owing to the Grantee, the amount (in cash, Common Stock, other
securities or other property) of any required withholding taxes in respect of the Restricted Shares
and to take such other action as may be necessary in the opinion of the Committee or the Company to
satisfy all obligations for the payment of such withholding and taxes.

          (d) Without limiting the generality of clause (c) above, the Committee may, in its sole
discretion, permit the Grantee to satisfy, in whole or in part, the foregoing withholding liability
by the delivery of shares of Common Stock (which are Mature Shares) owned by the Grantee having a
Fair Market Value equal to such withholding liability (but no more than the minimum required
statutory withholding liability).

     8. The Plan. Although this Award of Restricted Stock is not granted under the Plan,
the terms of the Plan have been incorporated herein by reference. Accordingly, the Grantee agrees
to be bound by all of the terms and conditions of the Plan, as such Plan may be amended from time
to time in

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accordance with the terms thereof. This Award of Restricted Stock will be administered by the
Board or its designated Committee, who will have the same authority with respect to this Award of
Restricted Stock as described in Section 4 of the Plan. A copy of the Plan in its present form is
available for inspection during business hours by the Grantee at the Company’s principal office.
All questions regarding the interpretation of the terms of this Award of Restricted Stock,
including all questions regarding the application and interpretation of Plan provisions
incorporated herein, will be determined by the Board or its designated Committee, whose
determination will be final, binding and conclusive.

     9. Consent to Electronic Delivery. The Grantee hereby authorizes the Company to
deliver electronically any prospectuses or other documentation related to this Agreement, the Plan
and any other compensation or benefit plan or arrangement in effect from time to time (including,
without limitation, reports, proxy statements or other documents that are required to be delivered
to participants in such plans or arrangements pursuant to federal or state laws, rules or
regulations). For this purpose, electronic delivery will include, without limitation, delivery by
means of e-mail or e-mail notification that such documentation is available on the Company’s
intranet site. Upon written request, the Company will provide to the Grantee a paper copy of any
document also delivered to the Grantee electronically. The authorization described in this
paragraph may be revoked by the Grantee at any time by written notice to the Company.

     10. Entire Agreement. This Agreement, including the terms incorporated herein by
reference, represents the entire agreement between the parties hereto relating to the subject
matter hereof, and merges and supersedes all prior and contemporaneous discussions, agreements and
understandings of every nature relating to the subject matter hereof. Notwithstanding anything to
the contrary, this Agreement will not supersede any other restrictive covenant agreement between
the Grantee and the Company or any of its Affiliates, and the Grantee shall be bound both by the
restrictions set forth in such other restrictive covenants agreements and the restrictions set
forth in this Agreement.

     11. Severability. Whenever possible, each provision and term of this Agreement shall
be interpreted in a manner to be effective and valid, but if any provision or term of this
Agreement is held to be prohibited or invalid, then such provision or term will be ineffective only
to the extent of such prohibition or invalidity, without invalidating or affecting in any manner
whatsoever the remainder of such provision or term or the remaining provisions or terms of this
Agreement. If any of the covenants set forth in this Agreement are held to be unreasonable,
arbitrary or against public policy, such covenants will be considered divisible with respect to
scope, time and geographic area, and in such lesser scope, time and geographic area, will be
effective, binding and enforceable against the Grantee.

     12. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware, without regard to the principles of conflicts of laws. Any
legal proceeding arising out of or relating to this Agreement will be instituted in a state or
federal court in the State of Delaware, and the Grantee and the Company hereby consent to the
personal and exclusive jurisdiction of such court(s) and hereby waive any objection(s) that they
may have to personal jurisdiction, the laying of venue of any such proceeding and any claim or
defense of inconvenient forum.

     13. Amendment. 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, except for any
changes under Sections 9, 12 and 14 of the Plan permitted to Awards made under the Plan without
consent.

     14. Execution. This Agreement may be executed, including execution by facsimile
signature, in one or more counterparts, each of which will be deemed an original, and all of which
together shall be deemed to be one and the same instrument.

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     15. 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.

     16. Notices. Any written notices provided for in this Agreement or the Plan shall be
in writing and shall be deemed sufficiently given if either hand delivered or if sent by fax or
overnight courier, or by postage paid first class mail. Notices sent by mail shall be deemed
received three business days after mailing but in no event later than the date of actual receipt.
Notices shall be directed, if to the Grantee, at the Grantee’s address indicated by the Company’s
records, or if to the Company, to the attention of the secretary of the Company at the Company’s
principal executive office.

     17. No Rights to Employment. Nothing contained in this Agreement shall be construed
as giving Grantee 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
Grantee at any time for any reason whatsoever.

     18. Beneficiary. The Grantee 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. Any notice should be made to the attention of the secretary of the Company
at the Company’s principal executive office. If no designated beneficiary survives the Grantee, the
Grantee’s estate shall be deemed to be Grantee’s beneficiary.

     19. Clawback/Forfeiture.

          (a) Grantee’s Conduct. Notwithstanding anything to the contrary contained herein, if
the Company as a result of misconduct or fraud is required to prepare a financial restatement due
to the material noncompliance of the Company with any financial reporting requirement under the
securities laws, where the Grantee (i) engaged in fraud resulting in such financial restatement, or
(ii) knowingly or through gross negligence engaged in misconduct resulting in such financial
restatement, the Grantee shall forfeit any or all of the Restricted Shares, whether or not vested,
then held by the Grantee and repay to the Company an amount in cash equal to all or any portion of
the sales proceeds received by the Grantee in connection with the sale or other disposition of any
such Restricted Shares during the three-year period preceding the date on which the Company first
determines that it must prepare the financial restatement (or, if no proceeds were received by the
Grantee in any such disposition, an amount equal to the aggregate Fair Market Value of the
Restricted Shares so disposed of, determined as of the date of such disposition). For the
avoidance of doubt, the Grantee’s failure to have personal knowledge of the conduct of any other
individual that contributed to a financial restatement shall not, in and of itself, be sufficient
to trigger this provision.

          (b) Conduct of Others or Errors. Notwithstanding anything to the contrary contained
herein, the Grantee shall repay the Company any amount in excess of what the Grantee should have
received under the terms of the Award for any reason (including without limitation by reason of a
financial restatement, mistake in calculation or other administrative error) with respect to any
sale or other disposition of any Restricted Shares during the three-year period preceding the date
on which the Company first determines that it must prepare the financial restatement or otherwise
first discovers the mistake or error and promptly notifies the Grantee.

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          (c) Compliance. The Grantee will agree to revise this Section 19 to the extent
necessary for the Company to comply with any regulatory guidance promulgated under Section 954 of
the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

[Signature page follows]

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     IN WITNESS WHEREOF, the Company’s duly authorized representative and the Grantee have each
executed this Restricted Stock Award Agreement on the respective date below indicated.

	 	 	 	 	 	 	 

	 	 	MEDQUIST HOLDINGS INC.	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	By	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	GRANTEE	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Signature	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Date:exv4w7

Exhibit 4.7

DATED 12 JUNE 2007

	 	(1)	 	CBAYSYSTEMS HOLDINGS LIMITED
	 
	 	(2)	 	V. RAMAN KUMAR

 

SHARE OPTION AGREEMENT

 

 

 

SHARE OPTION AGREEMENT

	 	 	 	 	 	 	 

	DATED:

	 	12 June
	 	2007.	 	 

PARTIES

	(1)	 	CBAYSYSTEMS HOLDNGS LIMITED (registered in the British Virgin Islands with no. 1398112) whose
registered office is at Palm Grove House, P.O. Box 3190, Road Town, British Virgin Islands
(the “Company”); and
	 
	(2)	 	V. Raman Kumar of Flat #2, Hermes House, Worli Sea Face, Mumbai 400 025, India (the
“Optionholder”).

RECITALS:

	(A)	 	The Optionholder is an employee of the Company.
	 
	(B)	 	The Company wishes to grant to the Optionholder an individual option over ordinary shares in
the capital of the Company on the terms of this agreement in recognition of past performance.
	 
	(C)	 	The Optionholder is an accredited investor for the purposes of Rule 506 of Regulation D
issued by the US SEC.
	 
	(D)	 	It is intended that the option evidenced by this agreement shall not be an incentive stock
option as defined in Section 422 of the US Internal Revenue Code of 1986, as amended, and any
regulations promulgated thereunder.

OPERATIVE PROVISIONS:

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

	 	 	 	 

	 

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

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

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

	“First Tranche”
	 	means 691,040 Shares subject to the Option;

 

 

	 	 	 	 	 

	 

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

	 	“Grant Date”
	 	means the date of this agreement;
	 
	 

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

	 	“Option Period”
	 	Means: (a) in relation to the First Tranche and Second Tranche, the period
commencing on the date of this agreement and ending on 31 December 2008; and (b) in
relation to the Third Tranche, the period commencing on the date of this agreement and
ending on the tenth anniversary of the date of this agreement;
	 
	 

	 	“Option Price”
	 	means the price per Share as determined in accordance with clause 2, as
adjusted (if appropriate) in accordance with clause 6;
	 
	 

	 	“Second Tranche”
	 	455,360 Shares subject to the Option;
	 
	 

	 	“Shares”
	 	means ordinary shares of the Company,
	 
	 

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

	 	“Third Tranche”
	 	253,680 Shares subject to the Option;
	 
	 

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

	1.2	 	Except insofar as the context otherwise requires:

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

	1.3	 	References to clauses are to clauses in this agreement.

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	2.	 	Option
	 
	2.1	 	The Company hereby grants to the Optionholder an Option to acquire 1,400,080 Shares as
follows:

	 	(a)	 	as to the First Tranche, at an Option Price of $1.30;
	 
	 	(b)	 	as to the Second Tranche, at an Option Price of $1.75;
	 
	 	(c)	 	as to the Third Tranche, at an Option Price of $1.75;
	 
	 	 	 	and otherwise on the terms of this agreement.

	3.	 	Conditions of Option
	 
	3.1	 	The Option shall, subject to earlier exercise being permitted under clauses 3.3 or 5.2, vest
as follows:

	 	(a)	 	as to the First Tranche, on 1 January 2008;
	 
	 	(b)	 	as to the Second Tranche, on 1 January 2008; and
	 
	 	(c)	 	as to the Third Tranche, on the date of Admission.

	3.2	 	The Option may not be validly exercised (i) later than the end of the relevant Option Period
and (ii) unless the Optionholder is then an accredited investor for the purposes of Rule 506
of Regulation D under the United States Securities Act of 1933: or any applicable successor
provision. The Option shall automatically lapse at the end of the relevant Option Period.
	 
	3.3	 	This clause 3.3 shall apply only in relation to the Third Tranche (the “Third Tranche
Option”), and all references to “Optionholder” and “Option” are to be construed accordingly.
If the Optionholder ceases to be an employee or officer of, or .consultant or adviser to, any
member of the Group (a “Leaver”):

	 	(a)	 	in circumstances involving a breach by the Optionholder of his service
agreement or other terms of his service or relationship with any member of the Group
for Cause (as defined in clause 3.4), the Third Tranche Option shall immediately cease
to be exercisable and shall lapse three months thereafter save that the Board may, in
its absolute discretion, otherwise permit the Third Tranche Option to be exercised in
whole or in part during such period as the Board may specify (after which the Third
Tranche Option shall lapse), provided that such period shall end no later than the last
day of the Option Period and provided further that the Option cannot be exercised over
a number of Shares greater than that arrived at if the Optionholder is a Leaver
pursuant to sub-clause (b) below; or
	 
	 	(b)	 	for any reason other than one specified in sub-clause (a) above, the Option
shall continue to be exercisable over those Shares in relation to which the Third

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	 	 	 	Tranche Option has vested on the date that the Optionholder becomes a Leaver
provided that such exercise must take place within the period of six months
following the date that the Optionholder becomes a Leaver, failing which the Third
Tranche Option shall lapse.

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

	4.	 	Exercise of Option
	 
	4.1	 	The Option shall, subject to clauses 3 and 4.2, be exercisable by the Optionholder by notice
in writing to the Company at any time prior to the expiry of the relevant Option Period:

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

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

	 	(a)	 	the Optionholder remits to the Company (on behalf of any member of the Group)
at the time of exercise of the Option (in cleared funds) a sum equal to the Tax
Liability arising by reference to the exercise of the Option in connection with the
payment made to or benefit realised by the Optionholder; or

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	 	(b)	 	the Optionholder enters into such other arrangements satisfactory to the
Company, in its sole discretion, to secure the payment of the Tax Liability referred to
in sub-clause (a) above to any member of the Group.

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

	 	(a)	 	to indemnify and keep indemnified the Company and each other member of the
Group against, and on demand to reimburse the relevant member of the Group for, any Tax
Liability in any jurisdiction in respect of the Optionholder’s income or gains or any
other withholding obligation (limited only to the extent that such amount may be
lawfully recovered from the Optionholder at the relevant time) arising in connection
with any event or circumstances after the Option is exercised that give rise to such a
liability in respect of any Shares acquired by the Optionholder on exercise of the
Option; and
	 
	 	(b)	 	to make such other arrangements as may be satisfactory to the Company in its
absolute discretion to meet any such liability as is described in sub-clause (a) above.

	4.4	 	Within 30 days of the exercise of the Option, the Company shall allot to the Optionholder the
Shares in respect of which the Option is exercised.
	 
	4.5	 	Shares issued on exercise of the Option shall rank pari passu in all respects with Shares in
issue on the date of exercise except that they will not entitle holders to receive any
dividends or other distributions declared for payment to holders of Shares on the register of
members at a record date which precedes the date of exercise.
	 
	4.6	 	The Company shall procure that sufficient Shares are available so as to satisfy any exercise
of the Option.
	 
	5.	 	Takeovers and Liquidation
	 
	5.1	 	For the purposes of this Rule 5, a “Reorganisation Event” shall mean:

	 	(a)	 	any merger or consolidation of the Company with or into another entity as a
result of which all of the Shares are converted into or exchanged for the right to
receive cash, securities or other property, or are cancelled;
	 
	 	(b)	 	any exchange of Shares for cash, securities or other property pursuant to a
share exchange transaction as a result of which any person is or becomes the beneficial
owner of Shares representing more than 50% of the combined voting power or fair market
value of outstanding securities in the Company; or
	 
	 	(c)	 	any liquidation or dissolution of the Company,

	5.2	 	In connection with a Reorganisation Event, the Board shall give the Optionholder reasonable
prior notice of such impending event and the Option shall become exercisable in full (which,
for the avoidance of doubt, shall include the proportion of the Option

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	 	 	which was not yet vested immediately prior to the Reorganisation Event) and shall lapse
immediately prior to the consummation of such Reorganisation Event unless exercised by the
Optionholder.
	 
	6.	 	Variation of Share Capital
	 
	6.1	 	In the event of any issue of shares by way of capitalisation of profits or reserves or by way
of rights, or in the .event of any consolidation or sub-division or reduction or other
variation of share capital, then the number and/or nominal value of Shares comprised in the
Option and/or the Option Price shall be adjusted by the Company in such manner and with effect
from such date as the Company may determine to be appropriate to reflect all securities in the
Company, which are derived from such Shares after the date of this agreement and which are so
derived without receipt of consideration by the Company, provided that such adjustment shall
be ineffective to the extent that the aggregate Option Price originally payable by the
Optionholder on the exercise of the Option would in effect be increased.
	 
	6.2	 	The Company shall give notice in writing to the Optionholder of any adjustment under clause
6.1 as soon as reasonably practicable.
	 
	7.	 	Rights of Optionholder
	 
	7.1	 	The rights of the Optionholder in respect of the Option are a matter entirely separate from
any pension right or term or condition of employment or service and the grant of the Option
shall not be construed as giving the Optionholder the right to continued employment or service
or any other relationship with any member of the Group. If the Optionholder shall cease for
any reason to be employed or engaged within the Group, his rights and benefits under the
Option or in connection therewith (actual or prospective) or any loss thereof shall not in any
way entitle him to claim for compensation against any member of the Group and shall not be
taken into account in assessing any compensation to which he may otherwise be entitled. The
Optionholder’s contract of employment or other terms of service or engagement shall be deemed
to be varied accordingly, if necessary.
	 
	7.2	 	The Company shall not be obliged to provide the Optionholder with copies of any accounts,
notices, circulars or other documents sent to holders of ordinary shares in the capital of the
Company.
	 
	8.	 	Notices
	 
	 	 	Without prejudice to any other method available for the giving of notice, any notice or
other communication desired to be given or made hereunder may be given or made by personally
delivering the same or sending the same by first class post or legible facsimile, in the
case of the Company to its registered address and in the case of the Optionholder to his
last known address or to the address of the place of business at which he performs the whole
or most of the duties of his office. Where a notice or communication is given by first
class post, it shall be deemed to have been received on the second business day after

6

 

	 	 	posting of the same and if personally delivered or sent by legible facsimile shall be deemed
to have been received on despatch if delivered or sent on a business day or (if not so
delivered or sent) on the first business day thereafter.
	 
	9.	 	Accredited Investor Warranty
	 
	 	 	The Optionholder hereby warrants that he is an accredited investor for the purposes of Rule
506 of Regulation D issued by the US SEC.
	 
	10.	 	Transfer Restrictions
	 
	10.1	 	The Optionholder acknowledges that the securities that are the subject of this Agreement have
not been registered under any federal or state securities laws of the United States and that
such securities may not be resold in the United States without such registration or an opinion
of counsel satisfactory to the Company that such registration is not required.
	 
	10.2	 	The Optionholder acknowledges that there are transfer restrictions on the Shares which are
detailed in Part XI of the publicly available admission document in relation to Admission
entitled “Selling Restrictions” and that they will comply with such restrictions upon exercise
of the Option and subsequent sale of the Shares.
	 
	11.	 	Proper Law
	 
	 	 	This agreement shall be governed by and construed in accordance with English law and the
parties hereby irrevocably submit themselves to the exclusive jurisdiction of the courts of
England.
	 
	12.	 	Rights of Third Parties
	 
	12.1	 	The parties agree and acknowledge that:

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

	12.2	 	The provisions of clause 12.1 do not affect any right or remedy of a third party which exists
or is available otherwise than by the Contracts (Rights of Third Parties) Act 1999.

7

 

	13.	 	Counterparts
	 
	 	 	This agreement may be executed in any number of counterparts, each of which, when executed
and delivered, shall be an original, and all counterparts together shall constitute one and
the same instruments.

8

 

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

	 	 	 	 	 	 	 	 

	EXECUTED as a DEED of

	 	 	)	 	 	 
	CBAYSYSTEMS HOLDINGS LIMITED

	 	 	)	 	 	 
	acting by:

	 	 	)	 	 	 
 

	 	 	 	 	 	 

	 

	 	Director
	 	/s/ Nadir Godrej
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Director/Secretary
	 	/s/ Nadir Godrej
	 

	 	 	 	 
	 

	 	 	 	By Attorney Nadir Godrej

	 	 	 	 	 

	EXECUTED as a DEED by

	 	 	)	 
	V. RAMAN KUMAR

	 	 	)	 
	in the presence of:

	 	 	)	 

	 	 	 

	Witness Signature:

	 	/s/ Tom McKay
	 
	 	 
	Witness Name:

	 	Tom McKay
	 
	 	 
	Witness Occupation:

	 	Trainee Solicitor
	 
	 	 
	Witness Address:

	 	Jones Day, 21 Tudor Street, London EC4Y 0DJ

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