Document:

exv10w1

Exhibit 10.1

ASHFORD HOSPITALITY TRUST, INC.

2011 STOCK INCENTIVE PLAN

May 17, 2011

 

 

ASHFORD HOSPITALITY TRUST, INC.

2011 STOCK INCENTIVE PLAN

Table of Contents

	 	 	 	 	 

	ARTICLE I INTRODUCTION
	 	 	1	 
	1.1 Purpose
	 	 	1	 
	1.2 Shares Subject to the Plan
	 	 	1	 
	1.3 Administration of the Plan
	 	 	1	 
	1.4 Amendment and Discontinuance of the Plan
	 	 	2	 
	1.5 Granting of Awards to Participants
	 	 	2	 
	1.6 Term of Plan
	 	 	2	 
	1.7 Leave of Absence
	 	 	2	 
	1.8 Definitions
	 	 	2	 
	ARTICLE II NONQUALIFIED STOCK OPTIONS
	 	 	7	 
	2.1 Grants
	 	 	7	 
	2.2 Calculation of Exercise Price
	 	 	7	 
	2.3 Terms and Conditions of Options
	 	 	7	 
	2.4 Amendment
	 	 	9	 
	2.5 Acceleration of Vesting
	 	 	9	 
	2.6 Other Provisions
	 	 	9	 
	2.7 Option Repricing
	 	 	9	 
	ARTICLE III INCENTIVE OPTIONS
	 	 	10	 
	3.1 Eligibility
	 	 	10	 
	3.2 Exercise Price
	 	 	10	 
	3.3 Dollar Limitation
	 	 	10	 
	3.4 10% Stockholder
	 	 	10	 
	3.5 Options Not Transferable
	 	 	10	 
	3.6 Compliance with 422
	 	 	10	 
	3.7 Limitations on Exercise
	 	 	10	 
	ARTICLE IV PURCHASED STOCK
	 	 	10	 
	4.1 Eligible Persons
	 	 	10	 
	4.2 Purchase Price
	 	 	11	 
	4.3 Payment of Purchase Price
	 	 	11	 
	ARTICLE V BONUS STOCK
	 	 	11	 
	ARTICLE VI STOCK APPRECIATION RIGHTS AND PHANTOM STOCK
	 	 	11	 
	6.1 Stock Appreciation Rights
	 	 	11	 
	6.2 Phantom Stock Awards
	 	 	12	 
	ARTICLE VII RESTRICTED STOCK
	 	 	12	 
	7.1 Eligible Persons
	 	 	12	 
	7.2 Restricted Period and Vesting
	 	 	12	 
	ARTICLE VIII I PERFORMANCE AWARDS
	 	 	13	 
	8.1 Performance Awards
	 	 	13	 
	8.2 Performance Goals
	 	 	13	 
	ARTICLE IX OTHER STOCK OR PERFORMANCE BASED AWARDS
	 	 	15	 
	ARTICLE X CERTAIN PROVISIONS APPLICABLE TO ALL AWARDS
	 	 	15	 

 

 

	 	 	 	 	 

	10.1 General
	 	 	15	 
	10.2 Stand-Alone, Additional, Tandem, and Substitute Awards
	 	 	16	 
	10.3 Term of Awards
	 	 	16	 
	10.4 Form and Timing of Payment under Awards; Deferrals
	 	 	16	 
	10.5 Vested and Unvested Awards
	 	 	17	 
	10.6 Exemptions from Section 16(b) Liability
	 	 	17	 
	10.7 Other Provisions
	 	 	17	 
	ARTICLE XI WITHHOLDING FOR TAXES
	 	 	17	 
	ARTICLE XII MISCELLANEOUS
	 	 	18	 
	12.1 No Rights to Awards
	 	 	18	 
	12.2 No Right to Employment
	 	 	18	 
	12.3 Governing Law
	 	 	18	 
	12.4 Severability
	 	 	18	 
	12.5 Other Laws
	 	 	18	 
	12.6 Shareholder Agreements
	 	 	18	 

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ASHFORD HOSPITALITY TRUST, INC.

2011 STOCK INCENTIVE PLAN

ARTICLE I

INTRODUCTION

     1.1 Purpose. The Ashford Hospitality Trust, Inc. 2011 Stock Incentive Plan (the
“Plan”) is intended to promote the interests of Ashford Hospitality Trust, Inc., a Maryland
corporation, (the “Company”) and its stockholders by encouraging Employees, Consultants and
Non-Employee Directors of the Company or its Affiliates (as defined below) to acquire or increase
their equity interests in the Company, thereby giving them an added incentive to work toward the
continued growth and success of the Company. The Board of Directors of the Company (the
“Board”) also contemplates that through the Plan, the Company and its Affiliates will be
better able to compete for the services of the individuals needed for the continued growth and
success of the Company.

     1.2 Shares Subject to the Plan. The aggregate number of shares of Common Stock, $.01 par
value per share, of the Company (“Common Stock”) that may be issued under the Plan
commencing on May 17, 2011, the date the stockholders approved the Plan set forth herein, shall not
exceed 5,750,000 shares of outstanding Common Stock.

     In the event that at any time after the Effective Date the outstanding shares of Common Stock
are changed into or exchanged for a different number or kind of shares or other securities of the
Company by reason of a merger, consolidation, recapitalization, reclassification, stock split,
stock dividend, combination of shares or the like, the aggregate number and class of securities
available under the Plan shall be ratably adjusted by the Committee (as defined below), whose
determination shall be final and binding upon the Company and all other interested persons. In the
event the number of shares to be delivered upon the exercise or payment of any Award granted under
the Plan is reduced for any reason whatsoever or in the event any Award granted under the Plan can
no longer under any circumstances be exercised or paid, the number of shares no longer subject to
such Award shall thereupon be released from such Award and shall thereafter be available under the
Plan for the grant of additional Awards. Shares issued pursuant to the Plan (i) may be treasury
shares, authorized but unissued shares or, if applicable, shares acquired in the open market and
(ii) shall be fully paid and nonassessable.

     1.3 Administration of the Plan. The Plan shall be administered by the Committee. Subject to
the provisions of the Plan, the Committee shall interpret the Plan and all Awards under the Plan,
shall make such rules as it deems necessary for the proper administration of the Plan, shall make
all other determinations necessary or advisable for the administration of the Plan and shall
correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any
Award under the Plan in the manner and to the extent that the Committee deems desirable to
effectuate the Plan. Any action taken or determination made by the Committee pursuant to this and
the other paragraphs of the Plan shall be conclusive on all parties. The act or determination of a
majority of the Committee shall be deemed to be the act or determination of the Committee.

 

 

     1.4 Amendment and Discontinuance of the Plan. The Board may amend, suspend or terminate the
Plan; provided, however, no amendment, suspension or termination of the Plan may without the
consent of the holder of an Award terminate such Award or adversely affect such person’s rights
with respect to such Award in any material respect; provided further, however, that any amendment
which would constitute a “material revision” of the Plan (as that term is used in the rules of the
New York Stock Exchange) shall be subject to shareholder approval.

     1.5 Granting of Awards to Participants. The Committee shall have the authority to grant,
prior to the expiration date of the Plan, Awards to such Employees, Consultants and Non-Employee
Directors as may be selected by it on the terms and conditions hereinafter set forth in the Plan.
In selecting the persons to receive Awards, including the type and size of the Award, the Committee
may consider any factors that it may deem relevant.

     1.6 Term of Plan. The Plan shall be effective as of May 17, 2011 (the “Effective Date”),
subject to approval by the shareholders of the Company. The provisions of the Plan are applicable
to all Awards granted on or after the Effective Date. If not sooner terminated under the
provisions of Section 1.4, the Plan shall terminate upon, and no further Awards shall be made,
after the tenth anniversary of the Effective Date.

     1.7 Leave of Absence. If an employee is on military, sick leave or other bona fide leave of
absence, such person shall be considered an “Employee” for purposes of an outstanding Award during
the period of such leave provided it does not exceed 90 days, or, if longer, so long as the
person’s right to reemployment is guaranteed either by statute or by contract. If the period of
leave exceeds 90 days, the employment relationship shall be deemed to have terminated on the 91st
day of such leave, unless the person’s right to reemployment is guaranteed by statute or contract.

     1.8 Definitions. As used in the Plan, the following terms shall have the meanings set forth
below:

     “1933 Act” means the Securities Act of 1933, as amended.

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

     “Affiliate” means (i) Remington, (ii) any entity in which the Company or
Remington, directly or indirectly, owns 10% or more of the combined voting power, as
determined by the Committee, (iii) any “parent corporation” of the Company or
Remington (as defined in section 424(e) of the Code), (iv) any “subsidiary
corporation” of any such parent corporation (as defined in section 424(f) of the
Code) of the Company or Remington and (v) any trades or businesses, whether or not
incorporated which are members of a controlled group or are under common control (as
defined in Sections 414(b) or (c) of the Code) with the Company or Remington.

     “Awards” means, collectively, Options, Purchased Stock, Bonus Stock, Stock
Appreciation Rights, Phantom Stock, Restricted Stock, Performance Awards, or Other
Stock or Performance Based Awards.

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     “Bonus Stock” is defined in Article V.

     “Cause” for termination of any Participant who is a party to an agreement of
employment with or services to the Company shall mean termination for “Cause” as
such term is defined in such agreement, the relevant portions of which are
incorporated herein by reference. If such agreement does not define “Cause” or if a
Participant is not a party to such an agreement, “Cause” means (i) the willful
commission by a Participant of a criminal or other act that causes or is likely to
cause substantial economic damage to the Company or an Affiliate or substantial
injury to the business reputation of the Company or Affiliate; (ii) the commission
by a Participant of an act of fraud in the performance of such Participant’s duties
on behalf of the Company or an Affiliate; or (iii) the continuing willful failure of
a Participant to perform the duties of such Participant to the Company or an
Affiliate (other than such failure resulting from the Participant’s incapacity due
to physical or mental illness) after written notice thereof (specifying the
particulars thereof in reasonable detail) and a reasonable opportunity to be heard
and cure such failure are given to the Participant by the Committee. For purposes
of the Plan, no act, or failure to act, on the Participant’s part shall be
considered “willful” unless done or omitted to be done by the Participant not in
good faith and without reasonable belief that the Participant’s action or omission
was in the best interest of the Company or an Affiliate, as the case may be.

     “Change of Control” shall be deemed to have occurred upon any of the following
events:

     (i) any “person” (as defined in Section 3(a)(9) of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), and as modified in Section 13(d) and 14(d) of the Exchange
Act) other than (A) the Company or any of its subsidiaries, (B) any employee benefit plan of
the Company or any of its subsidiaries, (C) Remington or any Affiliate, (D) a company owned,
directly or indirectly, by stockholders of the Company in substantially the same proportions
as their ownership of the Company, or (E) an underwriter temporarily holding securities
pursuant to an offering of such securities (a “Person”), becomes the “beneficial owner” (as
defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the
Company representing 30% or more of the shares of voting stock of the Company then
outstanding; provided, however, that an initial public offering of Common Stock shall not
constitute a Change of Control;

     (ii) the consummation of any merger, organization, business combination or
consolidation of the Company or one of its subsidiaries with or into any other company,
other than a merger, reorganization, business combination or consolidation which would
result in the holders of the voting securities of the Company outstanding immediately prior
thereto holding securities which represent immediately after such merger, reorganization,
business combination or consolidation more than 50% of the combined voting power of the
voting securities of the Company or the surviving company or the parent of such surviving
company;

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     (iii) the consummation of a sale or disposition by the Company of all or substantially
all of the Company’s assets, other than a sale or disposition if the holders of the voting
securities of the Company outstanding immediately prior thereto hold securities immediately
thereafter which represent more than 50% of the combined voting power of the voting
securities of the acquiror, or parent of the acquiror, of such assets, or
the stockholders of the Company approve a plan of complete liquidation or dissolution
of the Company; or

     (iv) individuals who, as of the Effective Date, constitute the Board (the
“Incumbent Board”) cease for any reason to constitute at least a majority of the
Board; provided, however, that any individual becoming a director subsequent to the
Effective Date whose election by the Board, was approved by a vote of at least a majority
of the directors then comprising the Incumbent Board shall be considered as though such
individual were a member of the Incumbent Board, but excluding, for this purpose, any such
individual whose initial assumption of office occurs as a result of an election contest with
respect to the election or removal of directors or other solicitation of proxies or consents
by or on behalf of a person other than the Board.

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

     “Committee” means the compensation committee appointed by the Board to
administer the Plan or, if none, the Board; provided however, that with respect to
any Award granted to a Covered Employee which is intended to be “performance-based
compensation” as described in Section 162(m)(4)(c) of the Code, the Committee shall
consist solely of two or more “outside directors” as described in Section
162(m)(4)(c)(i) of the Code.

     “Consultant” means any individual, other than a Director or an Employee, who
renders consulting or advisory services to the Company or an Affiliate.

     “Covered Employee” shall mean the Chief Executive Officer of the Company or the
four highest paid officers of the Company other than the Chief Executive Officer as
described in Section 162(m)(3) of the Code.

     “Disability” means an inability to perform the Participant’s material services
for the Company for a period of 90 consecutive days or a total of 180 days, during
any 365-day period, in either case as a result of incapacity due to mental or
physical illness, which is determined to be total and permanent. A determination of
Disability shall be made by a physician satisfactory to both the Participant (or his
guardian) and the Company, provided that if the Participant (or his guardian and the
Company do not agree on a physician, the Participant and the Company shall each
select a physician and these two together shall select a third physician, whose
determination as to Disability shall be binding on all parties. Eligibility for
disability benefits under any policy for long-term disability benefits provided to
the Participant by the Company shall conclusively establish the Participant’s
disability.

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     “Employee” means any employee of the Company or an Affiliate.

     “Employment” includes any period in which a Participant is an Employee or a
paid Consultant to the Company or an Affiliate.

     “Fair Market Value or FMV Per Share”. The Fair Market Value or FMV Per Share
of the Common Stock shall be the closing price on the New York Stock Exchange or
other national securities exchange or over-the-counter market, if
applicable, for the date of the determination, or if no trade of the Common
Stock shall have been reported for such date, the closing sales price quoted on such
exchange for the most recent trade prior to the determination date. If shares of
the Common Stock are not listed or admitted to trading on any exchange,
over-the-counter market or any similar organization as of the determination date,
the FMV Per Share shall be determined by the Committee in good faith using any fair
and reasonable means selected in its discretion.

     “Good Reason” means termination of employment by an Employee, termination of
service by a Consultant or resignation from the Board of a Non-Employee Director
under any of the following circumstances:

     (i) if such Employee, Consultant or Non-Employee Director is a party to an
agreement for employment with or services to the Company, which agreement includes a
definition of “Good Reason” for termination of employment with or services to the
Company, “Good Reason” shall have the same definition for purposes of the Plan as is
set forth in such agreement, the relevant portions of which are incorporated herein
by reference.

     (ii) if such Employee, Consultant or Non-Employee Director is not a party to an
agreement with the Company that defines the term “Good Reason,” such term shall mean
termination of employment or service under any of the following circumstances, if
the Company fails to cure such circumstances within thirty (30) days after receipt
of written notice from the Participant to the Company setting forth a description of
such Good Reason:

     (i) the removal from or failure to re-elect the Participant to the
office or position in which he or she last served;

     (ii) the assignment to the Participant of any duties, responsibilities,
or reporting requirements inconsistent with his or her position with the
Company, or any material diminishment, on a cumulative basis, of the
Participant’s overall duties, responsibilities, or status;

     (iii) a material reduction by the Company in the Participant’s fees,
compensation, or benefits; or

     (iv) the requirement by the Company that the principal place of
business at which the Participant performs his duties be changed to a
location more than fifty (50) miles from downtown Dallas, Texas.

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     “Incentive Option” means any option which satisfies the requirements of Code
Section 422 and is granted pursuant to Article III of the Plan.

     “Non-Employee Director” means persons who are members of the Board but who are
neither Employees nor Consultants of the Company or any Affiliate.

     “Non-Qualified Option” shall mean an option not intended to satisfy the
requirements of Code Section 422 and which is granted pursuant to Article II of the
Plan.

     “Option” means an option to acquire Common Stock granted pursuant to the
provisions of the Plan, and refers to either an Incentive Stock Option or a
Non-Qualified Stock Option, or both, as applicable.

     “Option Expiration Date” means the date determined by Committee which shall not
be more than ten years after the date of grant of an Option.

     “Optionee” means a Participant who has received or will receive an Option.

     “Other Stock-Based Award” means an award granted pursuant to Article IX of the
Plan that is not otherwise specifically provided for, the value of which is based in
whole or in part upon the value of a share of Common Stock.

     “Outstanding Company Common Stock” means, as of any date of determination, the
then outstanding shares of Common Stock of the Company.

     “Outstanding Company Voting Securities” means, as of any date of determination,
the combined voting power of the then outstanding voting securities of the Company
entitled to vote generally on the election of directors.

     “Participant” means any Non-Employee Director, Employee or Consultant granted
an Award under the Plan.

     “Performance Award” means an Award granted pursuant to Article VIII of the
Plan, which, if earned, shall be payable in shares of Common Stock, cash or any
combination thereof as determined by the Committee.

     “Purchased Stock” means a right to purchase Common Stock granted pursuant to
Article IV of the Plan.

     “Phantom Shares” means an Award of the right to receive shares of Common Stock
issued at the end of a Restricted Period which is granted pursuant to Article VI of
the Plan.

     “Reload Option” is defined in Section 2.3(f).

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     “Remington” means Remington Hotel Corporation, a Texas corporation or Remington
Lodging & Hospitality, L.P., a Delaware limited partnership.

     “Restricted Period” shall mean the period established by the Committee with
respect to an Award during which the Award either remains subject to forfeiture or
is not exercisable by the Participant.

     “Restricted Stock” shall mean any share of Common Stock, prior to the lapse of
restrictions thereon, granted under Article VII of the Plan.

     “Stock Appreciation Rights” means an Award granted pursuant to Article VI of
the Plan.

ARTICLE II

NONQUALIFIED STOCK OPTIONS

     2.1 Grants. The Committee may grant Options to purchase the Common Stock to any Employee,
Consultant or Non-Employee Director according to the terms set forth below.

     2.2 Calculation of Exercise Price. The exercise price to be paid for each share of Common
Stock deliverable upon exercise of each Option granted under this Article II shall not be less than
the FMV Per Share on the date of grant of such Option. The exercise price for each Option granted
under Article II shall be subject to adjustment as provided in Section 2.3(d).

     2.3 Terms and Conditions of Options. Options shall be in such form as the Committee may from
time to time approve, shall be subject to the following terms and conditions and may contain such
additional terms and conditions, not inconsistent with this Article II, as the Committee shall deem
desirable:

     (a) Option Period and Conditions and Limitations on Exercise. No Option shall be exercisable
later than the Option Expiration Date. To the extent not prohibited by other provisions of the
Plan, each Option shall be exercisable at such time or times as the Committee in its discretion may
determine at the time such Option is granted.

     (b) Manner of Exercise. In order to exercise an Option, the person or persons entitled to
exercise it shall deliver to the Company payment in full for the shares being purchased, together
with any required withholding taxes. The payment of the exercise price for each Option shall
either be (i) in cash or by check payable and acceptable to the Company, (ii) with the consent of
the Committee, by tendering to the Company shares of Common Stock owned by the person for more than
six months having an aggregate Fair Market Value as of the date of exercise that is not greater
than the full exercise price for the shares with respect to which the Option is being exercised and
by paying any remaining amount of the exercise price as provided in (i) above, or (iii) subject to
such instructions as the Committee may specify, at the person’s written request the Company may
deliver certificates for the shares of Common Stock for which the Option is being exercised to a
broker for sale on behalf of the person, provided that the person has irrevocably instructed such
broker to remit directly to the Company on the person’s behalf the full amount of the exercise
price from the proceeds of such sale. In the event that the person elects to make payment as
allowed under clause (ii) above, the Committee may, upon confirming that the

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optionee owns the number of additional shares being tendered, authorize the issuance of a new certificate for the
number of shares being acquired pursuant to the exercise of the Option less the number of shares
being tendered upon the exercise and return to the person (or not require surrender of) the
certificate for the shares being tendered upon the exercise. If the Committee so requires, such
person or persons shall also deliver a written representation that all shares being purchased are
being acquired for investment and not with a view to, or for resale in connection with, any
distribution of such shares.

     (c) Options not Transferable. Except as provided below, no Non-qualified Option granted
hereunder shall be transferable other than by (i) will or by the laws of descent and
distribution or (ii) pursuant to a domestic relations order and, during the lifetime of the
Participant to whom any such Option is granted, and it shall be exercisable only by the Participant
(or his guardian). Any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of,
or to subject to execution, attachment or similar process, any Option granted hereunder, or any
right thereunder, contrary to the provisions hereof, shall be void and ineffective, shall give no
right to the purported transferee, and shall, at the sole discretion of the Committee, result in
forfeiture of the Option with respect to the shares involved in such attempt. With respect to a
specific Non-qualified Option, the Participant (or his guardian) may transfer, for estate planning
purposes, all or part of such Option to one or more immediate family members or related family
trusts or partnerships or similar entities.

     (d) Adjustment of Options. In the event that at any time after the Effective Date the
outstanding shares of Common Stock are changed into or exchanged for a different number or kind of
shares or other securities of the Company by reason of merger, consolidation, recapitalization,
reclassification, stock split, stock dividend, combination of shares or the like, the Committee
shall make an appropriate and equitable adjustment in the number and kind of shares as to which all
outstanding Options granted, or portions thereof then unexercised, shall be exercisable, to the end
that after such event the shares subject to the Plan and each Participant’s
proportionate interest shall be maintained as before the occurrence of such event. Such
adjustment in an outstanding Option shall be made without change in the total price applicable to
the Option or the unexercised portion of the Option (except for any change in the aggregate price
resulting from rounding-off of share quantities or prices) and with any necessary corresponding
adjustment in exercise price per share. Any such adjustment made by the Committee shall be final
and binding upon all Participants, the Company, and all other interested persons.

     (e) Listing and Registration of Shares. Each Option shall be subject to the requirement that
if at any time the Committee determines, in its discretion, that the listing, registration, or
qualification of the shares subject to such Option under any securities exchange or under any state
or federal law, or the consent or approval of any governmental regulatory body, is necessary or
desirable as a condition of, or in connection with, the issue or purchase of shares thereunder,
such Option may not be exercised in whole or in part unless such listing, registration,
qualification, consent or approval shall have been effected or obtained and the same shall have
been free of any conditions not acceptable to the Committee.

     (f) Reload Options. A Non-qualified Option may, in the discretion of the Committee, include a
reload stock Option right which shall entitle the Participant, upon (i) the exercise of such
original Non-qualified Option prior to the Participant’s termination of employment and (ii)

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payment of the appropriate exercise price in shares of Common Stock that have been owned by such
Participant for at least six months prior to the date of exercise, to receive a new Non-qualified
Option (the “Reload Option”) to purchase, at the FMV Per Share on the date of the exercise
of the original Non-qualified Option, the number of shares of Common Stock equal to the number of
whole shares delivered by the Participant in payment of the exercise price of the original
Non-qualified Option. Such Reload Option shall be subject to the same terms and conditions,
including expiration date, and shall be exercisable at the same time or times as the original
Non-qualified Option with respect to which it is granted.

     2.4 Amendment. The Committee may, without the consent of the person or persons entitled to exercise any
outstanding Option, amend, modify or terminate such Option; provided, however, such amendment,
modification or termination shall not, without such person’s consent, reduce or diminish the value
of such Option determined as if the Option had been exercised, vested, cashed in or otherwise
settled on the date of such amendment or termination. The Committee may at any time or from time
to time, in its discretion, in the case of any Option which is not then immediately exercisable in
full, accelerate the time or times at which such Option may be exercised to any earlier time or
times.

     2.5 Acceleration of Vesting. Any Option granted hereunder which is not otherwise vested shall vest (unless specifically
provided to the contrary by the Committee in the document or instrument evidencing an Option
granted hereunder) upon (i) termination of an Employee or Consultant or removal of a Non-Employee
Director without Cause or termination by an Employee or Consultant or resignation of a Non-Employee
Director with Good Reason; (ii) termination, removal or
resignation of an Employee, Consultant or Non-Employee Director for any reason within one (1)
year from the effective date of the Change of Control; or death or Disability of the Participant.

     2.6 Other Provisions.

     (a) The person or persons entitled to exercise, or who have exercised, an Option shall not be
entitled to any rights as a stockholder of the Company with respect to any shares subject to such
Option until he shall have become the holder of record of such shares.

     (b) No Option granted hereunder shall be construed as limiting any right which the Company or
any Affiliate may have to terminate at any time, with or without cause, the employment of any
person to whom such Option has been granted.

     (c) Notwithstanding any provision of the Plan or the terms of any Option, the Company shall
not be required to issue any shares hereunder if such issuance would, in the judgment of the
Committee, constitute a violation of any state or federal law or of the rules or regulations of any
governmental regulatory body.

     2.7 Option Repricing. With stockholder approval only, the Committee, in its absolute discretion, may grant to
holders of outstanding Non-Qualified Options, in exchange for the surrender and cancellation of
such Non-Qualified Options, new Non-Qualified Options having exercise prices lower (or higher with
any required consent) than the exercise price provided in

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the Non-Qualified Options so surrendered
and canceled and containing such other terms and conditions as the Committee may deem appropriate.

ARTICLE III

INCENTIVE OPTIONS

     The terms specified below shall be applicable to all Incentive Options. Except as modified by
the provisions of this Article III, all the provisions of Article II shall be applicable to
Incentive Options. Options which are specifically designated as Non-Qualified Options shall
not be subject to the terms of this Section III.

     3.1 Eligibility. Incentive Options may only be granted to Employees.

     3.2 Exercise Price. The exercise price per Share shall not be less than one hundred percent (100%) of the FMV
Per Share on the option grant date.

     3.3 Dollar Limitation. The aggregate Fair Market Value (determined as of the respective date or dates of grant) of
shares of Common Stock for which one or more options granted to any Employee under the Plan (or any
other option plan of the Corporation or any Parent or Subsidiary) may for the first time become
exercisable as Incentive Options during any one (1) calendar year shall not exceed the sum of One
Hundred Thousand Dollars ($100,000). To the extent the Employee holds two (2) or more such options
which become exercisable for the first time in the same calendar year, the foregoing limitation on
the exercisability of such options as Incentive Options shall be applied on the basis of the order
in which such options are granted.

     3.4 10% Stockholder. If any Employee to whom an Incentive Option is granted is a 10% Stockholder, then the
exercise price per share shall not be less than one hundred ten percent (110%) of the FMV Per Share
on the option grant date and the option term shall not exceed five (5) years measured from the
option grant date.

     3.5 Options Not Transferable. No Incentive Option granted hereunder shall be transferable other than by will or by the
laws of descent and distribution and shall be exercisable during the Optionee’s lifetime only by
such Optionee.

     3.6 Compliance with 422. All Options that are intended to be Incentive Stock Options shall be designated as such in
the Option grant and in all respects shall be issued in compliance with Code Section 422.

     3.7 Limitations on Exercise. No Incentive Option shall be exercisable more than three (3) months after the Optionee
ceases to be an Employee for any reason other than death or Disability, or more than one (1) year
after the Optionee ceases to be an Employee due to death or Disability.

ARTICLE IV

PURCHASED STOCK

     4.1 Eligible Persons. The Committee shall have the authority to sell shares of Common Stock to such Employees,
Consultants and Non-Employee Directors of the Company or its

-10-

 

Affiliates as may be selected by it,
on such terms and conditions as it may establish, subject to the further provisions of this Article
IV. Each issuance of Common Stock under this Plan shall be evidenced by an agreement which shall
be subject to applicable provisions of this Plan and to such other provisions not inconsistent with
this Plan as the Committee may approve for the particular sale transaction.

     4.2 Purchase Price. The price per share of Common Stock to be purchased by a Participant under this Plan shall
be determined in the sole discretion of the Committee, and may be less than, but shall not greater
than the FMV Per Share at the time of purchase.

     4.3 Payment of Purchase Price. Payment of the purchase price of Purchased Stock under this Plan shall be made in full in
cash.

ARTICLE V

BONUS STOCK

     The Committee may, from time to time and subject to the provisions of the Plan, grant shares
of Bonus Stock to Employees, Consultants or Non-Employee Directors. Bonus Stock shall be shares of
Common Stock that are not subject to a Restricted Period under Article VII.

ARTICLE VI

STOCK APPRECIATION RIGHTS AND PHANTOM STOCK

     6.1 Stock Appreciation Rights. The Committee is authorized to grant Stock Appreciation Rights to Employees, Consultants or
Non-Employee Directors on the following terms and conditions.

     (a) Right to Payment. A Stock Appreciation Right shall confer on the Participant to whom it
is granted a right to receive, upon exercise thereof, the excess of (A) the FMV Per Share on the
date of exercise over (B) the grant price of the Stock Appreciation Right as determined by the
Committee.

     (b) Rights Related to Options. A Stock Appreciation Right granted in connection with an
Option shall entitle a Participant, upon exercise thereof, to surrender that Option or any portion
thereof, to the extent unexercised, and to receive payment of an amount computed pursuant to
Subsection 5.1(a)(i) hereof. That Option shall then cease to be exercisable to the extent
surrendered. A Stock Appreciation Right granted in connection with an Option shall be exercisable
only at such time or times and only to the extent that the related Option is exercisable and shall
not be transferable (other than by will or the laws of descent and distribution) except to the
extent that the related Option is transferable.

     (c) Right Without Option. A Stock Appreciation Right granted independent of an Option shall
be exercisable as determined by the Committee and set forth in the Award agreement governing the
Stock Appreciation Right.

     (d) Terms. The Committee shall determine at the date of grant the time or times at which and
the circumstances under which a Stock Appreciation Right may be exercised in whole or in part
(including based on achievement of performance goals and/or future service requirements),

-11-

 

the
method of exercise, whether or not a Stock Appreciation Right shall be in tandem or in
combination with any other Award, and any other terms and conditions of any Stock Appreciation
Right.

     6.2 Phantom Stock Awards. The Committee is authorized to grant Phantom Stock Awards to Participants, which are rights
to receive cash equal to the Fair Market Value of specified number of shares of Common Stock at the
end of a specified deferral period, subject to the following terms and conditions:

     (a) Award and Restrictions. Satisfaction of a Phantom Stock Award shall occur upon expiration
of the deferral period specified for such Phantom Stock Award by the Committee or, if permitted by
the Committee, as elected by the Participant. In addition, Phantom Stock Awards shall be subject
to such restrictions (which may include a risk of forfeiture), if any, as the Committee may impose,
which restrictions may lapse at the expiration of the deferral period or at earlier specified times
(including based on achievement of performance goals and/or future service requirements),
separately or in combination, installments or otherwise, as the Committee may determine.

     (b) Forfeiture. Except as otherwise determined by the Committee or as may be set forth in any
Award, employment or other agreement pertaining to a Phantom Stock Award, upon termination of
employment or services during the applicable deferral period or portion thereof to which forfeiture
conditions apply, all Phantom Stock Awards that are at that time subject to deferral (other than a
deferral at the election of the Participant) shall be forfeited; provided that the Committee may
provide, by rule or regulation or in any Award agreement, or may determine in any individual case,
that restrictions or forfeiture conditions relating to Phantom Stock Awards shall be waived in
whole or in part in the event of terminations resulting from specified causes, and the Committee
may in other cases waive in whole or in part the forfeiture of Phantom Stock Awards.

     (c) Performance Goals. To the extent the Committee determines that any Award granted pursuant
to this Article VI shall constitute performance-based compensation for purposes of Section 162(m)
of the Code, the grant or settlement of the Award shall, in the Committee’s discretion, be subject
to the achievement of performance goals determined and applied in a manner consistent with Section
8.2.

ARTICLE VII

RESTRICTED STOCK

     7.1 Eligible Persons. All Employees, Consultants and Non-Employee Directors shall be eligible for grants of
Restricted Stock.

     7.2 Restricted Period and Vesting.

     (a) Unless the Award specifically provides otherwise, Restricted Stock shall be subject to
restrictions on transfer by the Participant and repurchase by the Company such that the Participant
shall not be permitted to transfer such shares and the Company shall have the right to repurchase
or recover such shares for the amount of cash paid therefor, if any, if the Participant shall
terminate employment from or services to the Company or its Affiliates, as applicable,

-12-

 

provided
that such transfer and repurchase restrictions shall lapse with respect to 33.33% of such initial
shares on the first anniversary of the date of grant and on each subsequent anniversary of the date
of grant that the Participant shall remain continuously as an Employee, Non-Employee Director or
Consultant of the Company or its Affiliates, as applicable; subject to section 7.2(b) below.

     (b) Notwithstanding the foregoing, unless the Award specifically provides otherwise, all
Restricted Stock not otherwise vested shall vest upon (i) termination of an Employee or Consultant
or removal of a Non-Employee Director without Cause; (ii) termination by an Employee or Consultant
or resignation of a Non-Employee Director with Good Reason; (iii) termination, resignation or
removal of an Employee, Consultant or Non-Employee Director for any reason within one (1) year from
the effective date of a Change of Control; or (iv) death or Disability of the Participant.

     (c) Each certificate representing Restricted Stock awarded under the Plan shall be registered
in the name of the Participant and, during the Restricted Period, shall be left in deposit with the
Company and a stock power endorsed in blank. The grantee of Restricted Stock shall have all the
rights of a stockholder with respect to such shares including the right to vote and the right to
receive dividends or other distributions paid or made with respect to such shares. Any certificate
or certificates representing shares of Restricted Stock shall bear a legend similar to the
following:

The shares represented by this certificate have been issued pursuant
to the terms of the Ashford Hospitality Trust, Inc. 2011 Stock
Incentive Plan and Grant of Restricted Stock dated _______, 20____
and may not be sold, pledged, transferred, assigned or otherwise
encumbered in any manner except as is set forth in the terms of such
plan or grant.

ARTICLE VIIII

PERFORMANCE AWARDS

     8.1 Performance Awards. The Committee may grant Performance Awards based on performance criteria measured over a
period of not less than one year and not more than five years. The Committee may use such business
criteria and other measures of performance as it may deem appropriate in establishing any
performance conditions, and may exercise its discretion to increase the amounts payable under any
Award subject to performance conditions except as limited under Section 8.2 in the case of a
Performance Award granted to a Covered Employee.

     8.2 Performance Goals. The grant and/or settlement of a Performance Award shall be contingent upon terms set forth
in this Section 8.2.

     (a) General. The performance goals for Performance Awards shall consist of one or more
business criteria and a targeted level or levels of performance with respect to each of such
criteria, as specified by the Committee. In the case of any Award granted to a Covered Employee,
performance goals shall be designed to be objective and shall otherwise meet the

-13-

 

requirements of
Section 162(m) of the Code and regulations thereunder (including Treasury Regulations sec. 1.162-27
and successor regulations thereto), including the requirement that the level or levels of
performance targeted by the Committee are such that the achievement of performance goals is
“substantially uncertain” at the time of grant. The committee may determine that such Performance
Awards shall be granted and/or settled upon achievement of any one performance goal or that two or
more of the performance goals must be achieved as a condition to the grant and/or settlement of
such Performance Awards. Performance goals may differ among Performance Awards granted to any one
Participant or for Performance Awards granted to different Participants.

     (b) Business Criteria. One or more of the following business criteria for the Company, an a
consolidated basis, and/or for specified subsidiaries, divisions or business or geographical units
of the Company (except with respect to the total stockholder return and earnings per share
criteria), shall be used by the Committee in establishing performance goals for Performance Awards
granted to a Participant: (A) earnings per share; (B) increase in revenues; (C) increase in cash
flow; (D) increase in cash flow return; (E) return on net assets; (F) return on assets; (G) return
on investment; (H) return on capital; (I) return on equity; (J) economic value added; (K) gross
margin; (L) net income; (M) pretax earnings; (N) pretax earnings before interest, depreciation and
amortization; (O) pretax operating earnings after interest expense and before incentives, service
fees, and extraordinary or special items; (P) operating income; (Q) total stockholder return; (R)
debt reduction; and (S) any of the above goals determined on the absolute or relative basis or as
compared to the performance of a published or special index deemed applicable by the Committee
including, but not limited to, the Standard & Poor’s 500 Stock Index or a group of comparable
companies.

     (c) Performance Period; Timing for Establishing Performance Goals. Achievement of performance
goals in respect of Performance Awards shall be measured over a performance period of not less than
one year and not more than three years, as specified by the Committee. Performance goals in the
case of any Award granted to a Participant shall be established not later than 90 days after the
beginning of any performance period applicable to such Performance Awards, or at such other date as
may be required or permitted for “performance-based compensation” under Section 162(m) of the Code.

     (d) Settlement of Performance Awards; Other Terms. After the end of each performance period,
the Committee shall determine the amount, if any, of Performance Awards payable to each Participant
based upon achievement of business criteria over a performance period. The Committee may not
exercise discretion to increase any such amount payable in respect of a Performance Award designed
to comply with Section 162(m) of the Code. The Committee shall specify the circumstances in which
such Performance Awards shall be paid or forfeited in the
event of termination of employment by the Participant prior to the end of a performance period
or settlement of Performance Awards.

     (e) Written Determinations. All determinations by the Committee as to the establishment of
performance goals, the amount of any Performance Award, and the achievement of performance goals
relating to Performance Awards shall be made in writing in the case of any Award granted to a
Participant. The Committee may not delegate any responsibility relating to such Performance
Awards.

-14-

 

     (f) Status of Performance Awards under Section 162(m) of the Code. It is the intent of the
Company that Performance Awards granted to persons who are designated by the Committee as likely to
be Covered Employees within the meaning of Section 162(m) of the Code and regulations thereunder
(including Treasury Regulations sec. 1.162-27 and successor regulations thereto) shall, if so
designated by the Committee, constitute “performance-based compensation” within the meaning of
Section 162(m) of the Code and regulations thereunder. Accordingly, the terms of this Section 8.2
shall be interpreted in a manner consistent with Section 162(m) of the Code and regulations
thereunder. The foregoing notwithstanding, because the Committee cannot determine with certainty
whether a given Participant will be a Covered Employee with respect to a fiscal year that has not
yet been completed, the term Covered Employee as used herein shall mean only a person designated by
the Committee, at the time of grant of a Performance Award, who is likely to be a Covered Employee
with respect to that fiscal year. If any provision of the Plan as in effect on the date of
adoption or any agreements relating to Performance Awards that are designated as intended to comply
with Section 162(m) of the Code does not comply or is inconsistent with the requirements of Section
162(m) of the Code or regulations thereunder, such provision shall be construed or deemed amended
to the extent necessary to conform to such requirements.

ARTICLE IX

OTHER STOCK OR PERFORMANCE BASED AWARDS

     The Committee is hereby authorized to grant to Employees, Non-Employee Directors and
Consultants of the Company or its Affiliates, Other Stock or Performance-Based Awards, which shall
consist of a right which (i) is not an Award described in any other Article and (ii) is denominated
or payable in, valued in whole or in part by reference to, or otherwise based on or related to,
shares of Common Stock (including, without limitation, securities convertible into shares of Common
Stock) or cash as are deemed by the Committee to be consistent with the purposes of the Plan.
Subject to the terms of the Plan, the Committee shall determine the terms and conditions of any
such Other Stock or Performance-Based Award.

ARTICLE X

CERTAIN PROVISIONS APPLICABLE TO ALL AWARDS

     10.1 General. Awards may be granted on the terms and conditions set forth herein. In addition, the
Committee may impose on any Award or the exercise thereof, such additional terms and conditions,
not inconsistent with the provisions of the Plan, as the Committee shall determine,
including terms requiring forfeiture of Awards in the event of termination of employment by
the Participant and terms permitting a Participant to make elections relating to his or her Award.
Notwithstanding the foregoing, the Committee may amend any Award without the consent of the holder
if the Committee deems it necessary to avoid adverse tax consequences to the holder under Code
Section 409A. The Committee shall retain full power and discretion to accelerate or waive, at any
time, any term or condition of an Award that is not mandatory under this Plan; provided,
however, that the Committee shall not have discretion to accelerate or waive any term or
condition of an Award (i) if such discretion would cause the Award to have adverse tax consequences
to the Participant under 409A, or (ii) if the Award is intended to qualify as “performance-based
compensation” for purposes of Section 162(m) of the Code and such discretion would cause the Award
not to so qualify. Except in cases in which the

-15-

 

Committee is authorized to require other forms of
consideration under the Plan, or to the extent other forms of consideration must be paid to satisfy
the requirements of the Maryland General Corporation Law, no consideration other than services may
be required for the grant of any Award.

     10.2 Stand-Alone, Additional, Tandem, and Substitute Awards. Subject to Section 2.7, awards granted under the Plan may, in the discretion of the
Committee, be granted either alone or in addition to, in tandem with, or in substitution or
exchange for, any other Award or any award granted under another plan of the Company, any
Affiliate, or any business entity to be acquired by the Company or an Affiliate, or any other right
of a Participant to receive payment from the Company or any Affiliate. Such additional, tandem and
substitute or exchange Awards may be granted at any time. If an Award is granted in substitution
or exchange for another Award, the Committee shall require the surrender of such other Award in
consideration for the grant of the new Award. In addition, Awards may be granted in lieu of cash
compensation, including in lieu of cash amounts payable under other plans of the Company or any
Affiliate.

     10.3 Term of Awards. The term or Restricted Period of each Award that is an Option, Stock Appreciation Right,
Phantom Stock or Restricted Stock shall be for such period as may be determined by the Committee;
provided that in no event shall the term of any such Award exceed a period of ten years (or such
shorter terms as may be require in respect of an Incentive Stock Option under Section 422 of the
Code).

     10.4 Form and Timing of Payment under Awards; Deferrals. Subject to the terms of the Plan and any applicable Award agreement, payments to be made by
the Company of a Subsidiary upon the exercise of an Option or other Award or settlement of an Award
may be made in a single payment or transfer, in installments, or on a deferred basis. The
settlement of any Award may, subject to any limitations set forth in the Award agreement, be
accelerated and cash paid in lieu of shares in connection with such settlement, in the discretion
of the Committee or upon occurrence of one or more specified events; provided, however, that such
discretion may not be exercised by the Committee if the exercise of such discretion would result in
adverse tax consequences to the Participant under section 409A of the Code. In the discretion of
the Committee, Awards granted pursuant to
Article VI or VIII of the Plan may be payable in shares to the extent permitted by the terms
of the applicable Award agreement. Installment or deferred payments may be required by the
Committee (subject to Section 1.4 of the Plan, including the consent provisions thereof in the case
of any deferral of an outstanding Award not provided for in the original Award agreement) or
permitted at the election of the Participant on terms and conditions established by the Committee;
provided, however, that no deferral shall be required or permitted by the Committee if such
deferral would result in adverse tax consequences to the Participant under section 409A of the
Code. Payments may include, without limitation, provisions for the payment or crediting of
reasonable interest on installment or deferred payments or the grant or crediting of amounts in
respect of installment or deferred payments denominated in shares. Any deferral shall only be
allowed as is provided in a separate deferred compensation plan adopted by the Company. The Plan
shall not constitute any “employee benefit plan” for purposes of Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended.

-16-

 

     10.5 Vested and Unvested Awards. After the satisfaction of all of the terms and conditions set by the Committee with respect
to an Award of (i) Restricted Stock, a certificate, without the legend set forth in Section 7.2(a),
for the number of shares that are no longer subject to such restrictions, terms and conditions
shall be delivered to the Employee, (ii) Phantom Stock, to the extent not paid in cash, a
certificate for the number of shares equal to the number of shares of Phantom Stock earned, and
(iii) Stock Appreciation Rights or Performance Awards, cash and/or a certificate for the number of
shares equal in value to the number of Stock Appreciation Rights or amount of Performance Awards
vested shall be delivered to the person. Upon termination, resignation or removal of a Participant
under circumstances that do not cause such Participant to become fully vested, any remaining
unvested Options, shares of Restricted Stock, Phantom Stock, Stock Appreciation Rights or
Performance Awards, as the case may be, shall either be forfeited back to the Company or, if
appropriate under the terms of the Award, shall continue to be subject to the restrictions, terms
and conditions set by the Committee with respect to such Award.

     10.6 Exemptions from Section 16(b) Liability. It is the intent of the Company that the grant of any Awards to or other transaction by a
Participant who is subject to Section 16 of the Exchange Act shall be exempt from Section 16(b) of
the Exchange Act pursuant to an applicable exemption (except for transactions acknowledged by the
Participant in writing to be non-exempt). Accordingly, if any provision of this Plan or any Award
agreement does not comply with the requirements of Rule 16b-3 as then applicable to any such
transaction, such provision shall be construed or deemed amended to the extent necessary to conform
to the applicable requirements of Rule 16b-3 so that such Participant shall avoid liability under
Section 16(b) of the Exchange Act.

     10.7 Other Provisions. No grant of any Award shall be construed as limiting any right which the Company or any
Affiliate may have to terminate at any time, with or without cause, the employment of any person to
whom such Award has been granted.

ARTICLE XI

WITHHOLDING FOR TAXES

     Any issuance of Common Stock pursuant to the exercise of an Option or payment of any other
Award under the Plan shall not be made until appropriate arrangements satisfactory to the Company
have been made for the payment of any tax amounts (federal, state, local or other) that may be
required to be withheld or paid by the Company with respect thereto. Such arrangements may, at the
discretion of the Committee, include allowing the person to tender to the Company shares of Common
Stock owned by the person, or to request the Company to withhold shares of Common Stock being
acquired pursuant to the Award, whether through the exercise of an Option or as a distribution
pursuant to the Award, which have an aggregate FMV Per Share as of the date of such withholding
that is not greater than the sum of all tax amounts to be withheld with respect thereto, together
with payment of any remaining portion of such tax amounts in cash or by check payable and
acceptable to the Company.

     Notwithstanding the foregoing, if on the date of an event giving rise to a tax withholding
obligation on the part of the Company the person is an officer or individual subject to Rule 16b-3,
such person may direct that such tax withholding be effectuated by the Company withholding

-17-

 

the
necessary number of shares of Common Stock (at the tax rate required by the Code) from such Award
payment or exercise.

ARTICLE XII

MISCELLANEOUS

     12.1 No Rights to Awards. No Participant or other person shall have any claim to be granted any Award, there is no
obligation for uniformity of treatment of Participants, or holders or beneficiaries of Awards and
the terms and conditions of Awards need not be the same with respect to each recipient.

     12.2 No Right to Employment. The grant of an Award shall not be construed as giving a Participant the right to be
retained in the employ of the Company or any Affiliate. Further, the Company or any Affiliate may
at any time dismiss a Participant from employment, free from any liability or any claim under the
Plan, unless otherwise expressly provided in the Plan or in any Award Agreement.

     12.3 Governing Law. The validity, construction, and effect of the Plan and any rules and regulations relating
to the Plan shall be determined in accordance with applicable federal law and the laws of the State
of Maryland, without regard to any principles of conflicts of law.

     12.4 Severability. If any provision of the Plan or any Award is or becomes or is deemed to be invalid,
illegal, or unenforceable in any jurisdiction or as to any Participant or Award, or would
disqualify the Plan or any Award under any law deemed applicable by the Committee, such
provision shall be construed or deemed amended to conform to the applicable laws, or if it
cannot be construed or deemed amended without, in the determination of the Committee, materially
altering the intent of the Plan or the Award, such provision shall be stricken as to such
jurisdiction, Participant or Award and the remainder of the Plan and any such Award shall remain in
full force and effect.

     12.5 Other Laws. The Committee may refuse to issue or transfer any shares or other consideration under an
Award if, acting in its sole discretion, it determines that the issuance of transfer or such shares
or such other consideration might violate any applicable law.

     12.6 Shareholder Agreements. The Committee may condition the grant, exercise or payment of any Award upon such person
entering into a stockholders’ agreement in such form as approved from time to time by the Board.

-18-Exhibit 4.1

Exhibit 4.1

EBIX, INC.

2010 Stock Incentive Plan

ARTICLE I

The Plan

1.1 Establishment of the Plan. Ebix, Inc., a Delaware corporation (the “Corporation”
or the “Company”), hereby establishes the “Ebix, Inc. 2010 Stock Incentive Plan”
(hereinafter referred to as the “Plan”). The Plan permits the grant of incentives in the
form of Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation Rights, Restricted
Stock, Restricted Stock Units, or an Unrestricted Stock Award, and any combination thereof. Unless
otherwise defined, all capitalized terms have the meaning ascribed to them in Article II.

1.2 Purpose. The purpose of the Plan is to advance the interests of the Corporation and its
shareholders by offering officers, employees, and directors incentives that will promote the
identification of their personal interests with the long-term financial success of the Corporation
and with growth in shareholder value. The Plan is designed to strengthen the Corporation’s ability
to recruit, attract, and retain, highly qualified managers and staff, and qualified and
knowledgeable independent directors capable of furthering the future success of the Corporation by
encouraging the ownership of Shares (as defined below) by such employees and directors and to
strengthen the mutuality of interest between employees and directors, on one hand, and the
Corporation’s shareholders, on the other hand. The equity investments granted under the Plan are
expected to provide employees with an incentive for productivity and to provide both employees and
directors with an opportunity to share in the growth and value of the Corporation.

ARTICLE II

Definitions

As used in this Plan, unless the context otherwise requires, the following capitalized terms
are defined as follows:

2.1 “Additive SARs” shall have the meaning set forth in Section 7.1(b) of this Plan.

2.2 “Award” shall mean any award under this Plan of any Stock Option, SAR, Restricted Stock,
or RSU. Each separate grant of Stock Options, SARs, Restricted Stock, RSUs, or Unrestricted Stock,
to an Employee or a Director, and each group of Stock Options, SARs, Restricted Stock, RSUs, or
Unrestricted Stock which mature on a separate date is treated as a separate Award.

2.3 “Award Agreement” means the written agreement between the Corporation and a Participant
implementing the grant of, and evidencing and reflecting the terms of, an Award.

2.4 “Board” or “Board of Directors” means the Board of Directors of the Corporation, as
constituted from time to time.

2.5 “Cause” means a determination by the Board of Directors that a Participant has: (a)
engaged in any type of disloyalty to the Corporation, including without limitation fraud,
embezzlement, theft, or dishonesty in the course of his or her employment or service, or has
otherwise breached a duty owed to the Corporation, (b) been convicted of a misdemeanor involving
moral turpitude or a felony, (c)
pled nolo contendere to a felony, (d) disclosed trade secrets, customer lists, or
confidential information of the Corporation to unauthorized parties, except as may be required by
law, or (e) materially breached any material agreement with the Corporation, unless such agreement
was materially breached first by the Corporation.

 

 

 

2.6 “Change of Control” shall have the meaning set forth in Section 9.2 of this Plan.

2.7 “Code” means the Internal Revenue Code of 1986, as amended, and the rules and regulations
thereunder. Reference to any provision of the Code or rule or regulation thereunder shall be
deemed to include any amended or successor provision, rule, or regulation.

2.8 “Committee” means the committee appointed by the Board in accordance with Section 3.1 of
the Plan, if one is appointed, to administer this Plan. If no such committee has been appointed,
the term Committee shall refer to the Board of Directors.

2.9 “Common Shares” or “Shares” means the common shares, $0.10 par value per share, of the
Corporation.

2.10 “Corporation” shall mean Ebix, Inc. or any successor thereto as provided in Section 13.8
hereto.

2.11 “Date of Exercise” means the date on which the Corporation receives notice of the
exercise of a Stock Option in accordance with the terms of Section 6.9 of this Plan, of a SAR in
accordance with the terms of Article VII of this Plan.

2.12 “Date of Grant” or “Award Date” shall be the date on which an Award is made by the
Committee under this Plan. Such date shall be the date designated in a resolution adopted by the
Committee pursuant to which the Award is made; provided, however, that such date shall not be
earlier than the date of such resolution and action thereon by the Committee. In the absence of a
date of grant or award being specifically set forth in the Committee’s resolution, or a fixed
method of computing such date, then the Date of Grant or Award Date shall be the date of the
Committee’s resolution and action.

2.13 “Director” means any person who is a member of the Board of Directors of the Corporation
or any of its Subsidiaries.

2.14 “Employee” means any person who is an officer or full-time employee of the Corporation or
any of its Subsidiaries and who receives from it regular compensation (other than pension,
retirement allowance, retainer, or fee under contract). An Employee does not include independent
contractors or temporary employees.

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

2.16 “Exercise Period” means the period during which a Stock Option or a SAR may be exercised.

2.17 “Exercise Price” means the price for Shares at which a Stock Option may be exercised.

 

2

 

2.18 “Fair Market Value” of a Common Share on a particular date shall be the closing price for
a Common Share as quoted on the National Association of Securities Dealers Automated Quotation
System (“Nasdaq”), or any other national securities exchange on which the Common Shares are listed
(as
reported by the Wall Street Journal or, if not reported thereby, any other authoritative
source selected by the Committee), or if there is no trading on that date, on the next preceding
date on which there were reported share prices. If the Common Shares are quoted on any other
inter-dealer quotation system (but not quoted by Nasdaq or any national securities exchange), then
the Fair Market Value per Common Share on a particular date shall be the mean of the bid and asked
prices for a Common Share as reported in the Wall Street Journal or, if not reported thereby, any
other authoritative source selected by the Committee. If the Common Shares are not quoted by the
Nasdaq or any other inter-dealer quotation system, and are not listed on any national securities
exchange, then the “Fair Market Value” of a Common Share shall be determined by the Committee
pursuant to any reasonable method adopted by it in good faith for such purpose. In the case of an
Incentive Stock Option, if the foregoing method of determining the fair market value is
inconsistent with Section 422 of the Code, “Fair Market Value” shall be determined by the Committee
in a manner consistent with the Code and shall mean the value as so determined. In the case of all
other Awards, if the foregoing method of determining the fair market value would result in a
current inclusion in gross income under Section 409A of the Code, “Fair Market Value” shall be
determined by the Committee in a manner consistent with Section 409A of the Code in order to avoid
the current inclusion in gross income and shall mean the value as so determined.

2.19 “Freestanding SARs” shall have the meaning set forth in Section 7.1(c) of this Plan.

2.20 “Incentive Stock Option” or “ISO” means any Stock Option awarded under this Plan intended
to be and designated as an incentive stock option within the meaning of Section 422 of the Code.

2.21 “Non-Employee Director” shall have the meaning as set forth in, and interpreted under,
Rule 16b-3(b)(3) promulgated by the SEC under the Exchange Act, or any successor definition adopted
by the SEC.

2.22 “Nonqualified Stock Option” means any Stock Option awarded under this Plan which is not
an Incentive Stock Option.

2.23 “Participant” means each Employee or Director to whom an Award has been granted under
this Plan.

2.24 “Payment Share” shall have the meaning set forth in Section 6.9(b) of this Plan.

2.25 “Person” shall mean an individual, partnership, corporation, limited liability company or
partnership, trust, joint venture, unincorporated association, or other entity or association.

2.26 “Plan” means this Ebix, Inc. 2010 Stock Incentive Plan as defined in Section 1.1 hereof.

2.27 “Raina Affiliates” shall have the meaning set forth in Section 9.2(a) of this Plan.

2.28 “Related Option” means an Incentive Stock Option or a Nonqualified Stock Option granted
in conjunction with the grant of a Stock Appreciation Right.

2.29 “Restricted Period” shall have the meaning set forth in Section 8.3(b) of this Plan.

2.30 “Restricted Stock” shall mean the Common Shares issuable pursuant to a Participant
pursuant to Article VIII of this Plan.

 

3

 

2.31 “Restricted Stock Unit” or “RSU” shall mean the right, as described in Section 8.6 of the
Plan, to receive an amount, payable in either cash or Common Shares, equal to the value of a
specified number of Common Shares.

2.32 “RSU Vesting Period” shall have the meaning set forth in Section 8.7 of this Plan.

2.33 “SEC” means the Securities and Exchange Commission.

2.34 “Securities Act” means the Securities Act of 1933, as amended from time to time.

2.35 “Stock Appreciation Right” or “SAR” means an Award designated as a Stock Appreciation
Right granted to a Participant pursuant to Article VII of this Plan.

2.36 “Stock Option” means any Incentive Stock Option or Nonqualified Stock Option to purchase
Common Shares that are awarded under this Plan.

2.37 “Subsidiary” or “Subsidiaries” means any corporation or corporations other than the
Corporation organized under the laws of the United States or any other jurisdiction that the Board
of Directors designates, in an unbroken chain of corporations beginning with the Corporation if
each corporation other than the last corporation in the unbroken chain owns more than 50% of the
total combined voting power of all classes of stock in one of the other corporation in such chain.

2.38 “Tandem SARs” shall have the meaning set forth in Section 7.1(a) of this Plan

2.39 “Unrestricted Stock Award” means an Award of Shares pursuant to Section 8.10 of this
Plan.

2.40 “Voting Securities” shall have the meaning set forth in Section 9.2(a) of this Plan.

ARTICLE III

Administration of the Plan

3.1 The Committee. This Plan shall be administered by the Committee, subject to such terms
and conditions as the Board may prescribe from time to time. Pursuant to applicable provisions of
the Corporation’s Articles of Incorporation, as amended, and Bylaws, the Committee, which shall
consist either the entire Board or the Compensation Committee of the Board as the Board of
Directors may determine. Members of the Committee shall serve for such period of time as the Board
may determine. From time to time the Board may increase the size of the Committee and appoint
additional members, remove members (with or without cause), and appoint new members, fill vacancies
however caused, and remove all members and thereafter directly administer the Plan. During such
times as the Corporation’s Common Shares are registered under the Exchange Act, all members of the
Committee shall be: (a) “independent directors” as that terms is defined under Rule 4200 of the
NASD Marketplace Rules, and (b) “outside directors” as defined under Section 162(m)(4)(C)(i) of the
Code.

 

4

 

3.2 Duties and Powers of the Committee. Subject to the express provisions of this Plan, the
Committee shall have all the power and authority to, and shall be authorized to take any and all
actions required, necessary, or desirable to administer the Plan. In addition to any other powers,
subject to the provisions of the Plan, the Committee shall have the following powers:

(a) to select the Employees and Directors to whom Awards may from time to time be granted
pursuant to this Plan;

(b) to determine all questions as to eligibility;

(c) to determine the number of Common Shares to be covered by each Award granted under this
Plan;

(d) subject to the limitations set forth in Section 4.1 of this Plan, to determine whether
and to what extent Incentive Stock Options, Nonqualified Stock Options, SARs, RSUs, Restricted
Stock and Unrestricted Stock Awards, or any combination thereof, are to be granted or awarded
hereunder;

(e) to determine the terms and conditions (to the extent not inconsistent with this Plan) of
any Award granted hereunder, all provisions of each Award Agreement, which provisions need not be
identical (including, but not limited to, the Exercise Price, the Exercise Period, any restriction
or limitation, or any vesting schedule or acceleration thereof, regarding any Stock Option or other
Award and the Common Shares relating thereto, based on such factors as the Committee shall
determine, in its sole discretion);

(f) to determine whether, and to what extent, and under what circumstances grants of Stock
Options and other Awards under this Plan are to operate on a tandem basis and/or in conjunction
with or apart from other cash awards made by the Corporation outside of this Plan;

(g) to determine whether and under what circumstances a Stock Option may be settled in cash,
Common Shares (other than Restricted Stock), through a cashless exercise, or any combination
thereof under Section 6.8 of this Plan.

(h) to determine whether, and to what extent, and under what circumstances Common Shares or
cash payments under this Plan shall be deferred either automatically or at the election of the
Participant; provided, however, that any such deferral shall comply with the requirements and
conditions of Section 409A of the Code as to avoid the current inclusion in gross income the amount
being deferred;

(i) to accelerate the vesting or Date of Exercise of any Award, or to waive compliance by a
holder of an Award of any obligation to be performed by such holder or the terms and conditions of
an Award;

(j) to prescribe, amend, waive, or rescind rules, regulations, agreements, guidelines,
procedures, and instruments which are not contrary to the terms of the Plan and which, in its
opinion, may be necessary or advisable for the administration and operation of the Plan;

(k) to construe and interpret the provisions of the Plan or any Award Agreement;

(l) to amend the terms of previously granted Awards so long as the terms as amended are
consistent with the terms of the Plan and provided that the consent of the Participant is obtained
with respect to any amendment that would be detrimental to the Participant;

(m) require, whether or not provided for in the pertinent Award Agreement, of any person
exercising a Stock Option or otherwise receiving an Award, at the time of such exercise or receipt,
the making of any representations or agreements that the Board of Directors or Committee may deem
necessary or advisable in order to comply with the securities laws of the United States or of
any applicable jurisdiction;

 

5

 

(n) to delegate to an appropriate officer of the Corporation the authority to select Employees
for Awards and to recommend to the Committee the components of the Award to each, including vesting
requirements, subject in each case to final approval by the Committee of the selection of the
Employee and the Award;

(o) to authorize any person to execute on behalf of the Corporation any instrument required to
effectuate an Award or to take such other actions as may be necessary or appropriate with respect
to the Corporation’s rights pursuant to Awards or agreements relating to the Awards or the exercise
thereof; and

(p) to make all other determinations and take all other actions necessary or advisable for the
administration of the Plan.

3.3 Awards to Members of the Committee. Each Award granted to a Director or members of the
Committee shall be approved by the entire Board of Directors (rather than just a committee thereof)
and shall be evidenced by minutes of a meeting or the written consent of the Board of Directors and
an Award Agreement.

3.4 Requirements Relating to Section 162(m) of the Code. Any provision of this Plan
notwithstanding: (a) transactions with respect to persons whose remuneration is subject to the
provisions of Section 162(m) of the Code shall conform to the requirements of Section 162(m)(4)(C)
of the Code unless the Committee determines otherwise; (b) the Plan is intended to give the
Committee the authority to grant Awards that qualify as performance-based compensation under
Section 162(m)(4)(C) of the Code as well as Awards that do not qualify; and (c) any provision of
the Plan that would prevent the Committee from exercising the authority referred to in Section
3.4(b) of this Plan or that would prevent an Award that the Committee intends to qualify as
performance-based compensation under Section 162(m)(4)(C) of the Code from so qualifying shall be
administered, interpreted, and construed to carry out the Committee’s intention and any provision
that cannot be so administered, interpreted, and construed shall to that extent be disregarded.

3.5 Decisions Final and Binding. Unless otherwise determined by the Board of Directors, all
decisions, determinations, and actions taken by the Committee, and the interpretation and
construction of any provision of the Plan or any Award Agreement by the Committee shall be final,
conclusive, and binding on all parties concerned, including the Corporation, its shareholders and
any Person receiving an Award under the Plan.

3.6 Limitation on Liability. Notwithstanding anything herein to the contrary, except as
otherwise provided under applicable Delaware law, no member of the Board of Directors or of the
Committee shall be liable for any good faith determination, act, or failure to act in connection
with the Plan or any Award hereunder.

 

6

 

ARTICLE IV

Shares Subject to the Plan

4.1 Number of Shares.

(a) Subject to adjustment as provided in Section 4.3, the maximum aggregate number of Shares
that may be issued under this Plan shall not exceed 5,000,000 Shares, which Shares shall be
authorized but unissued Shares. Any of the authorized Shares may be used for any of the types of
Awards described in the Plan. Stock Options awarded under the Plan may be either Incentive Stock
Options or Nonqualified Stock Options, as determined by the Committee.

(b) Subject to Section 4.4, the maximum aggregate number of Stock Options, or SARs that may be
awarded and issued under the Plan to any one Participant during a calendar year shall be 1,000,000
Shares. The maximum amount of Awards, other than Stock Options and SARs, that may be awarded under
the Plan to any one Participant during a calendar year shall not exceed 1,000,000 Shares; provided,
however, that in no event shall any one Participant receive more than 1,000,000 Awards of Shares
during any calendar year. Except as provided in Section 4.2 and 4.3 of this Plan, Shares issued
upon the exercise of an Award granted pursuant to the Plan shall not again be available for the
grant of an Award hereunder.

4.2 Determination of Shares Remaining Available Under the Plan. The following shall apply in
determining the number of Shares remaining available for grant under this Plan:

(a) In connection with the granting of a Stock Option or other Award, the number of Shares
available for issuance under this Plan shall be reduced by the number of Shares in respect of which
the Stock Option or Award is granted or denominated; provided, however, that where a SAR is settled
in Common Shares, the number of Shares available for issuance under this Plan shall be reduced only
by the number of Shares issued in settlement.

(b) If any Stock Option is exercised by tendering previously acquired Common Shares to the
Corporation as full or partial payment of the Exercise Price, the number of Shares available for
issuance under this Plan shall be increased by the number of Common Shares so tendered.

(c) Whenever any outstanding Stock Option or other Award (or portion thereof) is settled in
cash or shall expire, lapse, be cancelled, or is otherwise terminated for any reason, without
having been exercised or payment having been made in respect of the entire Stock Option or Award,
the Shares allocable to the expired, lapsed, cancelled, settled or otherwise terminated portion of
the Stock Option or other Award may again be the subject of a Stock Option or other Awards granted
under this Plan.

4.3 Capital Adjustments.

(a) If by reason of a merger, consolidation, reorganization, recapitalization, combination of
Shares, stock split, reverse stock split, stock dividend, separation (including a spin-off or
split-off), or other such similar event, the number of outstanding Shares of the Corporation are
increased, decreased, changed into, or been exchanged for a different number or kind of shares, or
if additional shares or new and different shares are issued in respect of such Shares, the
Committee in its sole discretion may adjust proportionately: (i) the aggregate maximum number of
Shares available for issuance under the Plan; (ii) the aggregate maximum number of Shares or SARs
for which Awards can be granted to any one Participant; (iii) the number and class of Shares
covered by outstanding Awards denominated in Shares or units of Shares, (including, but not limited
to, Awards of Restricted Stock); (iv) the Exercise Price and grant prices related to outstanding
Awards; and (v) the appropriate Fair Market Value and other price determinations for such Awards.

 

7

 

(b) In the event of any other change in corporate structure affecting the Common Shares or any
distribution (other than normal cash dividends) to holders of Common Shares, such adjustments in
the number and kind of shares and the exercise, grant, or conversion prices of the affected Awards
as may be deemed equitable by the Committee shall be made to give proper effect to such event.

(c) In the event of a corporate merger, consolidation, or acquisition of property or stock,
separation (including spin-offs and split-offs), reorganization or liquidation, the Committee shall
be authorized to cause the Corporation to issue or assume stock options, whether or not in a
transaction to which Section 424(a) of the Code applies, by means of substitution of new Stock
Options for previously issued stock options or an assumption of previously issued stock options.
In such event, the aggregate maximum number of Shares available for issuance under Section 4.1 of
the Plan will be increased to reflect such substitution or assumption.

(d) Notwithstanding anything to the contrary herein, no fractional Shares will be issued and
delivered under this Plan. If any adjustment made pursuant to this Article IV would result in the
possible issuance of fractional Shares under any then-outstanding Award, the Committee may adjust
the outstanding Awards so as to eliminate fractional Shares.

(e) Any adjustment to be made with respect to Incentive Stock Options shall comply with
Sections 422 and 424 of the Code.

ARTICLE V

Eligibility

Awards may be made to any Employee or Director, except that (a) only Employees (including
Employees who also serve as Directors) may receive Incentive Stock Options, and (b) the grant of
Awards to Directors must comply with Section 3.3. A Participant who has been granted an Award may
be granted additional Awards; provided, however, that grants of Awards to individual Participants
are subject to the limitations in Section 4.1.

ARTICLE VI

Stock Options

6.1 Stock Options. Each Stock Option granted alone or in addition to other Awards granted
under this Plan shall be either an Incentive Stock Option or a Nonqualified Stock Option.

6.2 Grant of Stock Options.

(a) Subject to the terms and provisions of this Plan, the Committee shall have the authority
to grant to any Participant one or more Incentive Stock Options, Nonqualified Stock Options, or
both kinds of Stock Options. Subject to Section 4.1 and Article V, the Committee has complete and
sole discretion in determining the number of Shares subject to Stock Options to be granted to a
Participant; provided, however, that the aggregate Fair Market Value (determined at the time the
Award is made) of Shares with respect to which a Participant may first exercise ISOs granted under
the Plan during any calendar year may not exceed $100,000 or such amount as shall be specified
under Section 422 of the Code and the rules and regulations promulgated thereunder. To the extent
that any Stock Option does not
qualify as an Incentive Stock Option (whether because of its provisions or the time and manner
of its exercise or otherwise), such Stock Options or portion thereof which does not qualify shall
constitute a Nonqualified Stock Option. Stock Options granted at different times need not contain
similar provisions.

 

8

 

(b) Non-Employee Directors only may be granted Stock Options under this Article VI which are
Nonqualified Stock Options.

6.3 Incentive Stock Options. Anything in the Plan to the contrary notwithstanding, no term of
this Plan relating to Incentive Stock Options shall be interpreted, amended, or altered, nor shall
any discretion or authority granted under this Plan be so exercised, so as to disqualify the Plan
under Section 422 of the Code, or, without the consents of the Participants affected, to disqualify
any Incentive Stock Option under Section 422 of the Code.

6.4 Award Agreement. Each Stock Option granted under this Plan shall be evidenced by a an
Award Agreement between the Corporation and the Participant in accordance with Section 6.2 that
specifies the Exercise Price, the Exercise Period, the number of Shares to which the Stock Option
pertains, method of exercise and the form of consideration payable therefor, any vesting
requirements, any conditions imposed upon the exercise of the Stock Options in the event of
retirement, death, disability, or other termination of service, and such other provisions and
conditions, not inconsistent with this Plan, as the Committee may determine. Each Award Agreement
relating to a grant of Stock Options shall clearly specify whether the Stock Option is intended to
be an Incentive Stock Option within the meaning of Section 422 of the Code, or a Nonqualified Stock
Option not intended to be within the provisions of Section 422 of the Code.

6.5 Exercise Price. The Exercise Price per Share purchasable under any Stock Option granted
under this Plan shall be determined by the Committee at the Date of Grant, subject to the following
limitations:

(a) The Exercise Price of a Stock Option shall not be less than (i) 100% of the Fair Market
Value of the Common Shares on the Date of Grant, or (ii) in the case of any Participant who is
granted an Incentive Stock Option who, at the time of such grant, owns Common Shares possessing
more than 10% of the total combined voting power of all classes of stock of the Corporation or of
its parent corporation or Subsidiaries, the Exercise Price of the Incentive Stock Option shall not
be less than 110% of the of the Fair Market Value of the Common Shares on the Date of Grant.

(b) In no event shall the Exercise Price of any Stock Option be less than the par value of the
Common Shares.

6.6 No Repricing. Except for adjustments made pursuant to Section 4.3, the Exercise Price for
any outstanding Stock Option granted under this Plan may not be decreased after the Date of Grant
nor may any outstanding Stock Option granted under this Plan be surrendered to the Company as
consideration for the grant of a new Stock Option with a lower Exercise Price without the approval
of the Company’s shareholders.

6.7 Exercise Period. The Exercise Period of each Stock Option granted shall be fixed by the
Committee and shall be specified in the Award Agreement; provided, however, that no Stock Option
shall be exercisable later than ten years after the Award Date, and no Incentive Stock Option which
is granted to any optionee who, at the time such Incentive Stock Option is granted, owns stock
possessing more than 10% of the total combined voting power of all classes of stock of the
Corporation or of its parent corporation or Subsidiaries, shall be exercisable after the expiration
of five years from the Award Date.

 

9

 

6.8 Exercise of Stock Options. Stock Options granted under the Plan shall be exercisable at
such time or times and be subject to such terms and conditions as shall be set forth in the Award
Agreement (as may determined by the Committee at the time of such grant), which need not be the
same for all Participants. No Stock Option, however, shall be exercisable until the expiration of
the vesting period, if any, set forth in the Award Agreement, except to the extent such vesting
period is accelerated pursuant to Article IX of this Plan. To the extent that no vesting
conditions are stated in the Award Agreement, the Stock Options represented thereby shall be fully
vested at the Date of Grant.

6.9 Method of Exercise.

(a) Subject to the provisions of the Award Agreement, Stock Options may be exercised in whole
at any time, or in part from time to time with respect to whole Shares only, during the Exercise
Period by the delivery to the Corporation of a written notice of intent to exercise the Stock
Option, in such form as the Committee may prescribe, setting forth the number of Shares with
respect to which the Stock Option is to be exercised. The Exercise Price, which shall accompany
the written notice of exercise, shall be payable to the Corporation in full (along with the taxes
described in the last sentence of this Section 6.9) by the Participant who, if so provided in the
Award Agreement, may: (i) deliver cash or a check (acceptable to the Committee in accordance with
guidelines established for this purpose) in satisfaction of all or any part of the Exercise Price;
(ii) deliver, or cause to be withheld from the Stock Option, Shares (except for Restricted Shares)
valued at Fair Market Value on the Date of Exercise in satisfaction of all or any part of the
Exercise Price, or (iii) any combination of cash and Shares, or (iv) any other consideration and
method of payment permitted under any laws to which the Corporation is subject, in each such case
as the Committee may determine. In addition to and at the time of payment of the Exercise Price,
the Participant shall pay to the Corporation in cash the full amount of all federal and state
withholding or other employment taxes applicable to the taxable income of the Participant resulting
from the exercise.

(b) If the Exercise Price is to be paid by the surrender of previously acquired and owned
Common Shares, the Participant will make representations and warranties satisfactory to the
Corporation regarding his title to the Common Shares used to effect the purchase (the “Payment
Shares”), including without limitation, representations and warranties that the Participant has
good and marketable title to such Payment Shares free and clear of any and all liens, encumbrances,
charges, equities, claims, security interests, options or restrictions, and has full power to
deliver such Payment Shares without obtaining the consent or approval of any person or governmental
authority other than those which have already given consent or approval in a manner satisfactory to
the Corporation. If such Payment Shares were acquired upon previous exercise of Incentive Stock
Options granted within two years prior to the exercise of the Stock Option or acquired by the
Participant within one year prior to the exercise of the Stock Option, such Participant shall be
required, as a condition to using the Payment Shares in payment of the Exercise Price of the Stock
Option, to acknowledge the tax consequences of doing so, in that such previously exercised
Incentive Stock Options may have, by such action, lost their status as Incentive Stock Options, and
the Participant may recognize ordinary income for tax purposes as a result. In no event can
Restricted Stock be used as Payment Shares.

6.10 Transfer Restrictions. Neither the Stock Options granted under the Plan nor any rights
or interest in such Stock Options may be sold, pledged, hypothecated, assigned, or otherwise
disposed of or transferred by such Participant, other than by will or by the laws of descent and
distribution. Except as permitted by the Committee, during the lifetime of Participant to whom a
Stock Option is granted, the Stock Options shall be exercisable only by him or her or, in the event
of the Participant’s permanent and total disability as determined by the Committee in accordance
with applicable Corporation policies, by his or her legal representative.

 

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6.11 Termination of Stock Options. Subject to the applicable provisions of the Award
Agreement and this Article VI, upon termination of a Participant’s employment with the Corporation
or its Subsidiaries for any reason, all stock options shall vest or expire in accordance with the
terms and conditions established by the Committee at or after grant. Unless otherwise provided in
the Award Agreement:

(a) Termination by Death. If a Participant’s employment or service with the Corporation or
its Subsidiaries terminates by reason of death, then for a period of one year (or such other period
as the Committee may specify at grant) from the date of such death or until the end of the Exercise
Period of such Award, whichever period is shorter, any Stock Option held by a Participant may be
exercised by the legal representative of the estate or by a person who acquires the right to
exercise such Stock Option by bequest or inheritance, subject to the limitations of Section 6.12
with respect to Incentive Stock Options, to the extent that such Participant was entitled to
exercise the Award at the date of such death.

(b) Termination by Disability. If a Participant’s employment or service with the Corporation
or its Subsidiaries terminates by reason of permanent and total disability, as determined by the
Committee in accordance with applicable Corporation personnel policies, then for a period of one
year (or such other period as the Committee may specify at grant) from the date of such termination
of employment or service, or until the end of the Exercise Period of such Award, whichever is
shorter, any Stock Option held by a Participant may be exercised by the Participant, or his or her
legal representative, subject to the limitations of Section 6.12 with respect to Incentive Stock
Options, to the extent that such Participant was entitled to exercise the Award at the date of such
termination; provided, however, that, if the Participant dies within such one year period (or such
other period as the Committee may specify at grant), then for a period of one year from the date of
death or until the end of the Exercise Period of such Award, whichever period is shorter, any
unexercised Stock Options held by such Participant shall thereafter be exercisable to the extent to
which they were exercisable at the time of such termination due to disability. In the event of
termination of employment by reason of permanent and total disability, as determined by the
Committee in accordance with applicable Corporation personnel policies or that of its Subsidiaries,
if an Incentive Stock Option is exercised after the expiration of the exercise periods that apply
for purposes of Section 422 of the Code (currently one year from such termination), such Stock
Option will thereafter be treated as a Nonqualified Stock Option.

(c) Termination by Retirement. If a Participant’s employment or service with the Corporation
or its Subsidiaries terminates by reason of normal or late retirement under any retirement plan of
the Corporation or its Subsidiaries or, with the consent of Committee, then for a period of three
months (or such other period as the Committee may specify at grant) from the date of such
termination of employment or service, or until the end of the Exercise Period of such Award,
whichever is shorter, any Stock Option held by a Participant may be exercised by the Participant,
or his or her legal representative, subject to the limitations of Section 6.12 with respect to
Incentive Stock Options, to the extent that such Participant was entitled to exercise the Award at
the date of such termination; provided, however, that, if the Participant dies within such three
month period, then for a period of one year from the date of death or until the end of the Exercise
Period of such Award, whichever period is shorter, any unexercised Stock Options held by such
Participant shall thereafter be exercisable to the extent to which they were exercisable at the
time of such retirement. In the event of termination of employment by reason of retirement
pursuant to any retirement plan of the Corporation or its Subsidiaries or with the consent of the
Committee, if an Incentive Stock Option is exercised after the expiration of the exercise periods
that apply for purposes of Section 422 of the Code (currently three months from such termination),
such Stock Option will thereafter be treated as a Nonqualified Stock Option.

 

11

 

(d) Other Termination of Employee. Unless otherwise determined by the Committee at or after
grant and except as provided in Section 9.1 hereof, if a Participant’s employment by the
Corporation or its Subsidiaries terminates for any reason other than death, disability, or
retirement covered by Sections 6.10 (a), (b), or (c) of this Plan: (i) any Stock Options that were
not exercisable at the date of such termination (which date shall be determined by the Committee in
its sole discretion) will expire automatically, and (ii) any Stock Options exercisable on the date
of termination will remain exercisable only for the lesser of three months or the balance of such
Exercise Period of such Stock Option; provided, however, that the Participant was not involuntarily
terminated by the Corporation or its Subsidiaries for Cause. If the Participant dies within such
three month period (or such other period as the Committee may specify at grant), then for a period
of one year from the date of death or until the end of the Exercise Period of such Stock Option,
whichever period is shorter, any unexercised Stock Options held by such Participant shall
thereafter be exercisable to the extent to which they were exercisable at the time of such
termination. Notwithstanding any other provision of this Plan except for Section 9.1 hereof, upon
termination of a Participant’s employment with the Corporation or any of its Subsidiaries for
Cause, all of the Participant’s unexercised Stock Options will terminate immediately upon the date
of such termination (which date shall be determined by the Committee in its sole discretion) and
the Participant shall forfeit all Shares for which the Corporation has not yet delivered share
certificates to the Participant. In such event, the Corporation shall refund to the Participant
the Exercise Price paid to it, if any, in the same form as it was paid (or in cash at the
Corporation’s discretion). The Corporation may withhold delivery of share certificates pending
resolution of any inquiry that could lead to a finding that a termination of a Participant’s
employment was for Cause.

(e) Non-Employee Director Resignation or Termination of Service. Except as covered by
Sections 6.11(a), (b), or (c) of this Plan, if a Participant serving as a Non-Employee Director
terminates his or her service by resigning from the Board of Directors or by failing to run for
election to an additional term as a Director after being offered nomination for an additional term
by a nominating or similar committee of the Board of Directors (or in lieu of such committee, by
the entire Board of Directors), then (i) any Stock Options that were not exercisable at the date of
such termination of service will expire automatically, and (ii) any exercisable Stock Options as of
such date held by the Participant may thereafter be exercised by the Participant for a period of
three months from the date of such resignation or, in the case of a failure to run for election to
an additional term, from (A) the date of such stockholder meeting at which such election of
Directors takes place, or (B) until the end of the Exercise Period, whichever is shorter (or such
other period as the Committee may specify at grant). If a Participant serving as a Non-Employee
Director does not resign and is not offered nomination for an additional term, all Stock Options
held by such Participant shall immediately vest on the date that the Participant’s service as a
Director of the Corporation terminates and such Stock Options shall be exercisable until the end of
the Exercise Period for such Stock Options. Notwithstanding any other provision of this Plan, upon
removal of a Director by shareholders of the Corporation for cause under applicable state law, all
of the Participant’s unexercised Stock Options will terminate immediately upon the date of such
termination (which date shall be determined by the Committee in its sole discretion) and the
Participant shall forfeit all Shares for which the Corporation has not yet delivered share
certificates to the Participant. In such event, the Corporation shall refund to the Participant
the Exercise Price paid to it, if any, in the same form as it was paid (or in cash at the
Corporation’s discretion).

 

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6.12 Incentive Stock Option Limitations.

(a) To the extent that the aggregate Fair Market Value (determined as of the Date of Grant) of
the Common Shares with respect to which Incentive Stock Options are exercisable for the first time
by a Participant during any calendar year under the Plan and/or any other stock option plan of the
Corporation or any Subsidiary or parent corporation (within the meaning of Section 424 of the
Code) exceeds $100,000, such Stock Options shall be treated as Stock Options which are not
Incentive Stock Options.

(b) To the extent (if any) permitted under Section 422 of the Code, or the applicable rules
and regulations promulgated thereunder or any applicable Internal Revenue Service pronouncement, if
(i) a Participant’s employment with the Corporation or any Subsidiary is terminated by reason of
death, disability, or retirement covered by Section 6.11(a), (b), or (c) of this Plan, and (ii) the
portion of the Incentive Stock Option that is otherwise exercisable during the post-termination
period specified under Sections 6.11(a), (b), or (c), applied without regard to the $100,000
limitation currently contained in Section 422(d) of the Code, is greater than the portion of the
Stock Option that is immediately exercisable as an “incentive stock option” during such
post-termination period under Section 422 of the Code, such excess shall be treated as a
Nonqualified Stock Option.

(c) In the event that the application of any of the provisions of Section 6.12(a) or (b) of
this Plan is not necessary in order for Stock Options to qualify as Incentive Stock Options, or
should additional provisions be required, the Committee may amend the Plan accordingly, without the
necessity of obtaining the approval of the stockholders of the Corporation.

6.13 Buy-Out and Settlement Provisions. The Committee may at any time offer to buy-out a
Stock Option previously granted, based on such terms and conditions as the Committee shall
establish and communicate to the Participant at the time that such offer is made.

6.14 No Rights as Stockholder. No Participant or transferee of a Stock Option shall have any
rights as a stockholder of the Corporation with respect to any Shares subject to a Stock Option
(including without limitation, rights to receive dividends, vote, or receive notice of meetings)
prior to the purchase of such Shares by the exercise of such Stock Option as provided in this Plan.
A Stock Option shall be deemed to be exercised and the Common Shares thereunder purchased when
written notice of exercise has been delivered to the Corporation in accordance with Section 6.9 of
the Plan and the full Exercise Price for the Shares with respect to which the Stock Options is
exercised has been received by the Corporation, accompanied with any agreements required by the
terms of the Plan and the applicable Award Agreement; provided, however, that if the Participant
has been terminated for Cause, only those Common Shares for which a certificate has been delivered
to the Participant by the Corporation will be deemed to be purchased by such Participant. Full
payment may consist only of such consideration and method of payment allowable under this Article
VI of the Plan. No adjustment will be made for a cash dividend or other rights for which the
record date precedes the Date of Exercise, except as provided in Section 4.4 of the Plan.

6.15 Sale of Common Shares Upon Exercise of Stock Option. Unless the Committee provides
otherwise in the Award Agreement, Common Shares acquired pursuant to the exercise of Stock Option
shall not be subject to any restrictions on transferability under this Plan, except as provided in
Section 12.1 of this Plan. With respect to Common Shares acquired pursuant to the exercise of an
Incentive Stock Option, a transfer or other disposition of such Common Shares by a Participant
(other than by will or the laws of descent and distribution) may not qualify for favorable tax
treatment under Section 421(a) of the Code if such transfer or other disposition shall occur before
the expiration of the later of (i) the two year period commencing on the Date of Grant of the ISO,
or (ii) the one year period commencing on the Date of Exercise of the ISO.

 

13

 

ARTICLE VII

Stock Appreciation Rights

7.1 Grant of Stock Appreciation Rights. Subject to the terms and conditions of the Plan,
Stock Appreciation Rights may be granted to Participants, at the discretion of the Committee, in
any of the following forms: (a) in connection with the grant, and exercisable in lieu of Stock
Options (“Tandem SARs”), (b) in connection with and exercisable in addition to the grant of Stock
Options (“Additive SARs”), (c) independent of the grant of Stock Options (“Freestanding SARs”), or
(d) in any combination of the foregoing. Non-Employee Directors may not be granted any SARs under
this Plan other than Tandem SARs and Additive SARs.

7.2 Exercise of Tandem SARs

(a) Tandem SARs may be exercised with respect to all or part of the Shares subject to the
Related Option. The exercise of Tandem SARs shall cause a reduction in the number of Shares
subject to the Related Option equal to the number of Shares with respect to which the Tandem SAR is
exercised. Conversely, the exercise, in whole or part, of a Related Option, shall cause a
reduction in the number of Shares subject to the Tandem SAR equal to the number of Shares with
respect to which the Related Option is exercised.

(b) Notwithstanding any other provision of the Plan to the contrary, a Tandem SAR shall expire
no later than the expiration of the Related Option and shall be exercisable only when the Related
Option is eligible to be exercised. In addition, if the Related Option is an ISO, a Tandem SAR
shall be exercised for no more than 100% of the difference between the Fair Market Value of Shares
subject to the Related Option at the time the Tandem SAR is exercised and the Option Price of the
Related Option.

7.3 Exercise of Additive SARs. Additive SARs shall be deemed to be exercised upon, and in
addition to, the exercise of the Related Option. The deemed exercise of Additive SARs shall not
reduce the number of Shares with respect to which the Related Option remains unexercised.

7.4 Exercise of Freestanding SARs. Freestanding SARs may be exercised upon whatever terms and
conditions the Committee, in its sole discretion, imposes upon such SARs.

7.5 Other Conditions Applicable to SARs.

(a) No SAR granted under the Plan shall be exercisable until the expiration of at least one
year after the Date of Grant, except that such limitation shall not apply (i) in the case of death,
disability, or retirement of a Participant covered by Sections 6.11(a), (b), or (c) hereof, (ii) a
termination of service covered by the last sentence of Section 6.11(e) hereof, or (iii) as set
forth in Article VIII of this Plan. In no event shall the term of any SAR granted under the Plan
exceed seven years from the Award Date. A SAR may be exercised only when the Fair Market Value of
a Share exceeds either (i) the Fair Market Value per Share on the Award Date in the case of a
Freestanding SAR, or (ii) the Exercise Price of the Related Option in the case of either a Tandem
SAR or Additive SAR. A SAR shall be exercised by delivery to the Committee of a notice of exercise
in the form prescribed by the Committee.

 

14

 

(b) In the event of a termination of service for any reason of death, disability or retirement
covered by Section 6.11(a), (b), or (c) of this Plan, or pursuant to the last sentence of Section
6.11(e) hereof, unless otherwise determined by the Committee at grant, all Additive SARs and
Freestanding SARs shall be fully vested and thereafter may be exercised by the participant or
his or her legal representatives for a period of one year from the date of such termination of
service or until the end of the Exercise Period for such SAR, whichever is shorter; provided,
however, that the Participant was not involuntarily terminated for Cause. Notwithstanding any
other provision of this Plan, upon termination of a Participant’s service with the Corporation or
it Subsidiaries for Cause, all of the Participant’s unexercised Additive SARs and Freestanding SARs
will terminate immediately upon the date of such termination as determined in accordance with
Section 6.11(d) hereof.

(c) In the event of a termination of service for any reason other than death, disability or
retirement covered by Section 6.11(a), (b), or (c), or pursuant to the last sentence of Section
6.11(e) hereof, unless otherwise determined by the Committee at grant: (i) any Additive SAR and
any Freestanding SAR that was not exercised at the date of termination will expire automatically,
and (ii) any exercisable Additive SARs and Freestanding SARs will remain exercisable for a period
of three months from the date of such termination of service until the end of the Exercise Period
for such SAR, whichever is shorter; provided, however, that the Participant was not involuntarily
terminated for Cause. Notwithstanding any other provision of this Plan, upon termination of a
Participant’s service with the Corporation or it Subsidiaries for Cause, all of the Participant’s
unexercised Additive SARs and Freestanding SARs will terminate immediately upon the date of such
termination as determined in accordance with Section 6.11(d) hereof.

7.6 Payment Upon Exercise of SARs.

(a) Subject to the provisions of the Award Agreement, upon the exercise of a SAR, the
Participant is entitled to receive, without any payment to the Corporation (other than required tax
withholding amounts), an amount equal to the product of multiplying (i) the number of Shares with
respect to which the SAR is exercisable by (ii) an amount equal to the excess of: (A) the Fair
Market Value per Share on the Date of Exercise of the SAR over (B) either (x) in the case of a
Freestanding SAR, the Fair Market Value per Share on the Award Date of the Freestanding SAR, or (y)
the Exercise Price of the Related Option in the case of either a Tandem SAR or Additive SAR.

(b) Payment to the Participant shall be made in (i) Shares, valued at the Fair Market Value of
the Date of Exercise, (ii) cash if the Participant has so elected in his written notice of
exercise, (iii) a combination thereof, or (iv) by any other method as the Committee may determine.

7.7 Non-Transferability of SARs. Except as specifically provided in the Award Agreement, no
SARs granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, otherwise than by will or by the laws of descent and distribution. Further, all SARs
granted to a Participant under the Plan shall be exercisable during his lifetime only by such
Participant or his guardian or legal representative.

ARTICLE VIII

Restricted Stock, Restricted Stock Units, and Unrestricted Stock Awards

8.1 Awards of Restricted Stock. Subject to the terms and provisions of this Plan, the
Committee, at any time and from time to time, may grant shares of Restricted Stock or Restricted
Stock Units under the Plan to such Participants and in such amounts as it may determine. Shares of
Restricted Stock or RSUs may be issued either alone or in addition to other Awards granted under
the Plan. The Committee shall determine the eligible Persons to whom, and the time or times at
which, grants of Restricted Stock or RSUs will be made. The Committee shall impose such terms and
conditions and/or restrictions on any Shares of Restricted Stock or RSUs granted under the Plan as
it may deem desirable,
including, but not limited to, a requirement that Participants pay a stipulated purchase price
for each share of Restricted Stock or each RSU (subject to Section 8.2(c)), the time or times
within which such Awards may be subject to forfeiture, the vesting schedule and rights to
acceleration thereof, and restrictions under applicable Federal and State securities laws. The
Committee also may condition the grant of Restricted Stock or RSUs upon the attainment of specified
performance goals or such other factors as the Committee may determine, in its sole discretion.
The provisions of Restricted Stock Awards need not be the same with respect to each Participant,
and such Awards to individual Participants need not be the same in subsequent years.

 

15

 

8.2 Award Agreement for Restricted Stock and RSUs.

(a) The prospective Participant selected to receive a Restricted Stock Award shall not have
any rights with respect to such Award, unless and until such Participant has executed an Award
Agreement evidencing the Restricted Stock Award and has delivered a fully executed copy thereof to
the Corporation, and has otherwise complied with the applicable terms and conditions of such Award.
Each Award Agreement relating to Restricted Stock shall specify the Restricted Period (as defined
in Section 8.3(b) below), the conditions to be satisfied prior to removal of such restrictions, the
number of shares of Restricted Stock granted, and such other provisions as the Committee shall
determine.

(b) Each RSU granted under this Plan shall be evidenced by an Award Agreement that specifies
the number of Common Shares to which it relates, any restrictions, vesting periods, or other
conditions or requirements to be satisfied as a condition to such RSU becoming payable to the
Participant. In no event shall a RSU become payable to a Participant until at least one year shall
have transpired from the Award Date.

(c) Award Agreements relating to Restricted Stock and RSUs shall set forth the purchase price
for such Restricted Shares or RSUs, as the case may be, which purchase prices may be equal to or
less than their par value and may be zero. Each Restricted Stock and RSU Award Agreement shall
contain at least one term, condition, or restriction constituting a “substantial risk of
forfeiture” as defined in Sections 83(c) and 409A of the Code.

8.3 Certain Conditions and Restrictions. The shares of Restricted Stock awarded pursuant to
this Plan shall be subject to the following minimum restrictions and conditions:

(a) Acceptance. Awards of Restricted Stock must be accepted within a period of sixty (60)
days (or such shorter period as the Committee may specify at grant) after the Award Date, by
executing an Award Agreement relating to the Restricted Stock which is the subject of such Award
and by paying whatever price (if any) the Committee has designated hereunder.

(b) Restriction Period. Subject to the provisions of this Plan and the Award Agreement,
during a period set by the Committee commencing with the Award Date (the “Restriction Period”), the
Participant shall not be permitted to sell, transfer, pledge, assign, hypothecate, or otherwise
dispose of shares of Restricted Stock awarded under this Plan. Such restrictions may be subject to
a vesting schedule and/or the satisfaction of other conditions or requirements as the Committee
shall impose. Within these limits, the Committee, in its sole discretion, may provide for the
lapse of such restrictions in installments and may accelerate or waive such restrictions in whole
or in part, based on service, performance and/or such other factors or criteria as the Committee
may determine in its sole discretion. No such restrictions shall be removed until the expiration
of at least one year after the Award Date, except that such limitation shall not apply as set forth
in Article IX of this Plan.

 

16

 

(c) Legend. Each Participant receiving a Restricted Stock Award shall be issued a stock
certificate in respect of such shares of Restricted Stock. Such certificate shall be registered in
the name of such Participant, and shall bear an appropriate legend referring to the terms,
conditions, and restrictions applicable to such Award, substantially in the following form:

“The sale, transferability, pledge, assignment, hypothecation, or
other disposition of this certificate and the shares of stock
represented hereby are subject to the terms and conditions
(including forfeiture) of Ebix, Inc. (the “Corporation”) 2010 Stock
Incentive Plan, including the rules and administrative procedures
adopted pursuant to such plan, and an Agreement entered into between
the registered owner and the Corporation dated
 _____. Copies of such Plan and Agreement are on file in the offices of the
Corporation at Five Concourse Parkway, Suite 3200, Atlanta, Georgia
30328.

(d) Custody. The Committee may require that the stock certificates evidencing such shares of
Restricted Stock be held in custody by the Corporation until the restrictions thereon shall have
lapsed, and that, as a condition of any Restricted Stock Award, the Participant shall have
delivered a duly signed stock power, endorsed in blank, relating to the Restricted Stock covered by
such Award.

8.4 Other Restrictions on Restricted Stock. The Committee shall impose such other
restrictions on any shares of Restricted Stock granted pursuant to the Plan as it may deem
advisable including, without limitation, restrictions under applicable Federal or State securities
laws, and may legend the certificates representing Restricted Stock to give appropriate notice of
such restrictions.

8.5 Lapse of Restrictions on Restricted Stock. Except as otherwise provided in this Article
VIII, if and when the Restriction Period expires without a prior forfeiture of the Restricted Stock
subject to such Restriction Period, the certificates for such shares shall be delivered to the
Participant. All legends shall be removed from said certificates at the time of delivery to the
Participant.

8.6 Payment on RSUs. RSUs that become payable in accordance with these terms and conditions
shall be settled in cash, Common Shares, or a consideration thereof, as determined by the
Committee. Any restrictions, conditions, or other requirements to be satisfied as a condition to
payment on a RSU, including any vesting requirements, may be accelerated or waived, in whole or in
part, based on service, performance and/or such other factors or criteria as the Committee may
determine in its sole discretion.

8.7 Rights as Shareholder. Except as provided in this Section 8.7 during the Restriction
Period, in the case of Restricted Stock, and during the period between the Award Date and the date
that a RSU becomes payable in accordance with its terms (the “RSU Vesting Period”), in the
case of RSUs, Participants

(a) who hold Restricted Stock shall have full voting rights with respect to such shares as the
record owners thereof. RSUs shall have no voting rights.

(b) who held Restricted Stock and/or RSUs shall be entitled to receive all dividends and other
distributions paid with respect to such shares. If any such dividends or distributions are paid in
Shares, the Shares shall be subject to the same restrictions on transferability as the Shares of
Restricted Stock with respect to which they were distributed. Furthermore, the Committee, in its
sole discretion, as determined at the time of Award, may permit or require the payment of dividends
to be deferred. Unless otherwise determined by the Committee, any dividends payable to a
Participant during the Restriction
Period, in the case of Restricted Stock, or during the RSU Vesting Period in the case of a
RSU, shall be distributed to a Participant only if and when the restrictions on the applicable
Restricted Stock or RSU lapse.

 

17

 

8.8 Termination of Employment or Resignation of Director. Subject to the applicable
provisions of the Award Agreement and this Article VIII, upon termination of a Participant’s
employment with, the Corporation or its Subsidiaries for any reason during the Restricted Period or
the RSU Vesting Period, as the case may be, all Restricted Shares and RSUs still subject to
restriction shall vest or be forfeited in accordance with the terms and conditions established by
the Committee at or after grant. Unless otherwise provided in the Award Agreement:

(a) Termination of Service by Death, Disability, or Retirement. In the event a Participant’s
employment is terminated during the Restriction Period or the RSU Vesting Period, as the case may
be, because of death, disability, or retirement covered by Sections 6.11(a), (b), (c), or (e) of
this Plan, any remaining portion of the Restriction Period applicable to the Restricted Stock
pursuant to Section 8.3 herein shall automatically terminate and, except as otherwise provided in
Section 8.4 herein, the shares of Restricted Stock shall thereby be released and free of
restrictions.

(b) Termination of Service for Other Reasons. In the event that a Participant terminates his
employment of the Corporation or its Subsidiaries during the Restriction Period or the RSU Vesting
Period, as the case may be, for any reason other than for death, disability, or retirement, as set
forth in Sections 8.8(a) herein, then any shares of Restricted Stock or RSUs still subject to
restrictions as of the date of such termination shall automatically be forfeited and, if held by
the Participant, returned to the Corporation.

(c) Hardship. In the event of hardship or other special circumstances of a Participant whose
employment with the Corporation or its Subsidiaries is involuntarily terminated (other than for
cause), the Committee may, in its sole discretion, waive in whole or in part any or all remaining
restrictions with respect to such Participant’s shares of Restricted Stock or RSUs, based on such
factors as the Committee may deem appropriate.

8.9 Notice of Section 83(b) Election. Any Participant making an election under Section 83(b)
of the Code with respect to Restricted Stock must provide a copy thereof to the Corporation within
10 days of filing such election with the Internal Revenue Service.

8.10 Unrestricted Stock Awards. Subject to the terms and conditions of this Plan, the
Committee, at any time and from time to time, may grant Unrestricted Stock Awards free of
restrictions under the Plan to such Participants in such amounts, on such terms and conditions, and
for such consideration, including no consideration or such minimum consideration as may be required
by law, as it shall determine.

 

18

 

ARTICLE IX

Change of Control

9.1 Acceleration of Options; Lapse of Restrictions

(a) In the event of a Change of Control of the Corporation: (i) each Stock Option and SAR
then-outstanding under the Plan shall be fully exercisable, regardless of any unsatisfied vesting
requirements established under the terms of the pertinent Award Agreements, and remain so for the
duration of the Stock Option as specified in the Award Agreement, (ii) all conditions or
restrictions related to grants of Restricted Stock or payments under RSUs shall be deemed to be
immediately and fully satisfied and (A) all certificates representing such shares of Restricted
Stock shall be released and have any legal removed by the Secretary of the Corporation and thereby
become freely transferable, (B) all RSUs shall become payable hereunder, and (iii) all conditions
or restrictions related to an Award shall be accelerated or released; all in a manner, in the case
of persons subject to Section 16(b) of the Exchange Act, as to conform with the provisions of Rule
16b-3 thereunder.

(b) Awards that remain outstanding after a Change of Control shall not be terminated as a
result of a termination of service covered by Sections 6.11, 7.2, 7.5, or 8.8, and shall continue
to be exercisable until the end of the Exercise Period in accordance with their original terms,
except in the case of (i) a Participant’s death in which case termination shall occur within one
year from the date of death, or (ii) a Participant’s termination for Cause in which case the
unexercised Stock Option shall terminate as set forth in Section 6.11(d).

(c) Notwithstanding the foregoing, if any right granted pursuant to this Section 9.1 would
make a Change of Control transaction ineligible for pooling of interests accounting treatment under
applicable accounting principles that, but for this Section 9.1, would have been available for such
accounting treatment, then the Committee shall have the authority to substitute stock for cash
which would otherwise be payable pursuant to this Section 9.1 having a Fair Market Value equal to
such cash.

(d) Any amount required to be paid pursuant to this Article IX shall be paid as soon as
practicable after the occurrence of a Change of Control as provided in Section 9.3 of this Plan.

9.2 Definition of Change of Control. For purposes of this Plan, a “Change of Control” is
deemed to have occurred if:

(a) any individual, entity, or group (within the meaning of Sections 13(d)(3) or 14(d)(2) of
the Exchange Act) other than Robin Raina, his immediate family members (which shall include Mr.
Raina’s wife, children, and parents of each of Mr. Raina and his wife), or any of their respective
affiliates (“Raina Affiliates”), is or becomes, directly or indirectly, the “beneficial owner” (as
defined by Rule 13d-3 promulgated under the Exchange Act) of 20% or more of the combined voting
power of the then outstanding securities of the Corporation entitled to vote generally in the
election of Directors (“Voting Securities”); provided, however, that any acquisition by the
following will not constitute a Change of Control:

	 	(i)	 	the Corporation or any of its Subsidiaries,

	 	(ii)	 	any of the Raina Affiliates,

	 	(iii)	 	any employee benefit plan (or related trust)
of the Corporation or its Subsidiaries, or

	 	(iv)	 	any corporation, bank, or other financial
institution with respect to which, following such acquisition, more
than 50% of the combined voting power of the outstanding voting
securities of such corporation entitled to vote generally in the
election of directors is then beneficially owned by the Persons who
were the beneficial owners of the Voting Securities immediately prior
to such acquisition in substantially the same
proportion as their ownership immediately prior to such acquisition
of the Voting Securities; or

 

19

 

(b) (i) a tender offer or an exchange offer is made to acquire securities of the Corporation
whereby following such offer the offerees will hold, control, or otherwise have the direct or
indirect power to exercise voting control over 50% or more of the Voting Securities, or (ii) Voting
Securities are first purchased pursuant to any other tender or exchange offer.

(c) as a result of a tender offer or exchange offer for the purchase of securities of the
Corporation (other than such an offer by the Corporation for its own securities), or as a result of
a proxy contest, merger, consolidation, or sale of assets, or as a result of a combination of the
foregoing, during any period of two consecutive years, individuals who, at the beginning of such
period constitute the Board, plus any new Directors of the Corporation whose election or nomination
for election by the Corporation’s stockholders was or is approved by a vote of at least two-thirds
of the Directors of the Corporation then still in office who either were Directors of the
Corporation at the beginning of such two year period or whose election or nomination for election
was previously so approved (but excluding for this purpose, any individual whose initial assumption
of office was or is in connection with the actual or threatened election contest relating to the
election of Directors of the Corporation (as such term is used in Rule 14a-11 of Regulation 14A
promulgated under the Exchange Act)), cease for any reason during such two year period to
constitute at least two-thirds of the members of the Board; or

(d) the stockholders of the Corporation approve a reorganization, merger, consolidation, or
other combination, with or into any other corporation or entity regardless of which entity is the
survivor, other than a reorganization, merger, consolidation, or other combination, which would
result in the Voting Securities outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or being converted into Voting Securities of the surviving entity)
at least 60% of the combined voting power of the Voting Securities or of the voting securities of
the surviving entity outstanding immediately after such reorganization, merger, consolidation; or
other combination; or

(e) the stockholders of the Corporation approve a plan of liquidation or winding-up of the
Corporation or an agreement for the sale or disposition by the Corporation of all or substantially
all of the Corporation’s assets, or any distribution to security holders of assets of the
Corporation having a value equal to 30% or more of the total value of all assets of the
Corporation.

9.3 Occurrence of a Change of Control. A Change of Control will be deemed to have occurred:

(a) with respect to any acquisition referred to in Section 9.2(a) above, the date on which the
acquisition of such percentage shall have been completed;

(b) with respect to a tender or exchange offer, the date the offer referred to in Section
9.2(b)(i) above is made public or when documents are filed with the SEC in connection therewith
pursuant to Section 14(d) of the Exchange Act, or the date of the purchase referenced in Section
9.2(b)(ii);

 

20

 

(c) with respect to a change in the composition of the Board of Directors referred to in
Section 9.2(c), the date on which such change is adopted or is otherwise effective, whichever first
occurs; or

(d) with respect to any stockholder approval referred to in Section 9.2(d) or (e), the date of
any approval.

8.4 Application of this Article IX. The provisions of this Article IX shall apply to
successive events that may occur from time to time but shall only apply to a particular event if it
occurs prior to the expiration of this Plan and each Award issued pursuant to this Plan.

ARTICLE X

Amendment, Modification, or Termination of Plan

Insofar as permitted by applicable law, the Board, by resolution, shall have the power at any
time, and from time to time, to amend, modify, suspend, terminate or discontinue the Plan or any
part thereof including any amendment deemed necessary to ensure that the Corporation may comply
with any regulatory requirements referred to in Article XIII. The Board is specifically authorized
to amend the Plan and take such other action as it deems necessary or appropriate to comply with
Section 162(m) of the Code and the rules and regulations promulgated thereunder. Such amendment or
modification may be without stockholder approval except to the extent that such approval is
required by the Code, or pursuant to the rules and regulations under the Section 16 of the Exchange
Act, if then applicable, by any national securities exchange or inter-dealer quotation system on
which the Shares are then listed, quoted, or reported, by any regulatory authority or board having
jurisdiction with respect thereto, or under any applicable laws, rules, or regulations.
Notwithstanding the provisions of this Article X, no termination, amendment, or modification of the
Plan, other than those pursuant to Article IV hereof, shall in any manner adversely affect any
Award theretofore granted under the Plan, without the written consent of the Participant so
affected.

ARTICLE XI

Modification, Extension, and Renewal of Stock Options and Awards

Subject to the terms and conditions, and within the limitations, of the Plan, the Committee
may modify, extend, or renew outstanding Stock Options, prospectively or retroactively, or accept
the surrender of outstanding Stock Options (to the extent not theretofore exercised) granted under
the Plan or any other plan of the Corporation or a Subsidiary, and authorize the granting of new
Stock Options pursuant to the Plan in substitution therefor (to the extent not theretofore
exercised), and the substituted Stock Options may specify a lower exercise price or a longer term
than the surrendered Stock Options or have any other provisions that are authorized by the Plan.
Notwithstanding the foregoing provisions of this Article XI, (a) no amendment or modification of an
Award which adversely affects the Participant shall not be made without the consent of the affected
Participant, and (b) no Incentive Stock Option may be modified, amended, extended, or reissued if
such action would cause it to cease to be an “Incentive Stock Option” within the meaning of Section
422 of the Code, unless the Participant specifically acknowledges and consents to the tax
consequences of such action.

ARTICLE XII

Indemnification of the Committee

In addition to such other rights of indemnification as they may have as Directors or as
members of the Committee, the members of the Committee shall not be liable for any act, omission,
interpretation, construction, or determination made in good faith in connection with their
administration of and responsibilities with respect to the Plan, and the Corporation hereby agrees
to indemnify the members of the Committee against any claim, loss, damage, or reasonable expense,
including attorneys’ fees, actually and reasonably incurred in connection with the defense of any
action, suit, or proceeding, or in connection
with any appeal therein, to which they or any of them may be a party by reason of any action
taken or failure to act under or in connection with the Plan or any Award granted or made
hereunder, and against all amounts reasonably paid by them in settlement thereof or paid by them in
satisfaction of a judgment in any such action, suit, or proceeding, if such members acted in good
faith and in a manner which they believed to be in, and not opposed to, the best interests of the
Corporation and its Subsidiaries.

 

21

 

ARTICLE XIII

General Provisions

13.1 Conditions Upon Issuance of Shares. Shares shall not be issued pursuant to the exercise
of a Stock Option unless the exercise of such Stock Option and the issuance and delivery of such
Shares pursuant thereto shall comply with, and be subject to the procurement of all approvals,
permits, authorizations, and orders required under, all relevant provisions of law, including,
without limitation, the Securities Act, the Exchange Act, and the rules and regulations promulgated
thereunder, and the requirements of any stock exchange or inter-dealer quotation system upon which
the Shares may then be listed, and shall be further subject to the approval of counsel for the
Corporation with respect to such compliance. Unless the Shares have been issued to the Participant
pursuant to a registration statement declared effective by the SEC, the Committee may require each
person purchasing or otherwise acquiring Shares pursuant to a Stock Option under the Plan to
represent to and agree with the Corporation in writing to the effect that the Participant: (a) is
acquiring the Shares for his or her own personal account, for investment purposes only, and not
with an intent or a view to distribution within the meaning of Section 2(11) of the Securities Act,
and (b) will not sell, assign, pledge, hypothecate, or otherwise dispose of or transfer the Shares
to be issued upon exercise of such Stock Option except as permitted by this Plan and except in
compliance with the Securities Act and the securities laws of all other applicable jurisdictions,
as supported by an opinion of counsel if so requested by the Committee. As a further condition to
the issuance of such Shares, the Participant shall provide any other representation, warranty, or
covenant as the Committee or its counsel deems necessary under the Securities Act and the
securities laws of all other applicable jurisdictions. In addition to any legend required by this
Plan, the certificates for the Shares may include any legend which the Committee deems appropriate
to reflect any restrictions on transfer.

13.2 Reservation of Shares. The Corporation shall at all times reserve and keep available
such number of Shares as shall be sufficient to satisfy the requirements of the Plan. The
Corporation shall use its best efforts to seek to obtain from appropriate regulatory agencies any
requisite authorization in order to issue and sell such number of Shares as shall be sufficient to
satisfy the requirements of the Plan. The inability of the Corporation to obtain from any such
regulatory agency having jurisdiction the requisite authorization(s) deemed by the Corporation’s
counsel to be necessary for the lawful issuance and sale of any Shares hereunder, or the inability
of the Corporation to confirm to its satisfaction that any issuance and sale of any Shares
hereunder will meet applicable legal requirements, shall relieve the Corporation of any liability
in respect to the failure to issue or sell such Shares as to which such requisite authority shall
not have been obtained.

13.3 Limitation on Legal Rights. The establishment of the Plan shall not confer upon any
Employee or Director any legal or equitable right against the Corporation, except as expressly
provided in the Plan.

13.4 Not a Contract of Employment. This Plan is purely voluntary on the part of the
Corporation, and the continuation of the Plan shall not be deemed to constitute a contract between
the Corporation and any Participant, or to be consideration for or a condition of the employment or
service of any Participant. Participation in the Plan shall not give any Employee or Director any
right to be retained
in the service of the Corporation or any of its Subsidiaries, nor shall anything in this Plan
affect the right of the Corporation or any of its Subsidiaries to terminate any such Employee with
or without Cause.

 

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13.5 Other Compensation Plans. The adoption of the Plan shall not affect any other Stock
Option or incentive or other compensation plans in effect for the Corporation or any of its
Subsidiaries, nor shall the Plan preclude the Corporation or any Subsidiary from establishing any
other forms of incentive or other compensation plan or arrangements for Employees or Directors of
the Corporation or any of its Subsidiaries.

13.6 Assumption by the Corporation. The Corporation or its Subsidiaries may assume options,
warrants, or rights to purchase shares issued or granted by other companies whose shares or assets
shall be acquired by the Corporation or its Subsidiaries or which shall be merged into or
consolidated with the Corporation or its Subsidiaries. The adoption of this Plan shall not be
taken to impose any limitations on the powers of the Corporation or its Subsidiaries or affiliates
to issue, grant, or assume options, warrants, rights, or restricted shares, otherwise than under
this Plan, or to adopt other Stock Option or restricted share plans or to impose any requirements
of shareholder approval upon the same.

13.7 Creditors. The interests of any Participant under this Plan is not subject to the claims
of creditors and may not, in any way, be assigned, alienated, or encumbered.

13.8 Plan Binding on Successors. All obligations of the Corporation under this Plan and any
Awards granted hereunder shall be binding upon any successor and assign of the Corporation, whether
the existence of such successor or assign is a result of a direct or indirect purchase, merger,
consolidation, or otherwise, of all or substantially all of the business or assets of the
Corporation.

13.9 Unfunded Status of Plan. This Plan is intended to constitute an “unfunded” plan for
incentive and deferred compensation. With respect to any payments not yet made to a Participant by
the Corporation, nothing contained herein shall give any Participant any rights that are greater
than those of a general creditor of the Corporation.

13.10 Withholding.

(a) Tax Withholding. The Corporation shall have the power and the right to deduct or
withhold, or require a Participant to remit to the Corporation, an amount sufficient to satisfy
federal, state, and local taxes (including the Participant’s FICA obligation) required by law to be
withheld with respect to any grant, exercise, or payment under or as a result of this Plan.

(b) Share Withholding. To the extent the Code requires withholding upon the exercise of
Nonqualified Stock Options, or upon the occurrence of any other similar taxable event, the
Committee may permit or require, subject to any rules it deems appropriate, the withholding
requirement to be satisfied, in whole or in part, with or without the consent of the participant,
by having the Corporation withhold Shares having a Fair Market Value equal to the amount required
to be withheld. The value of the Shares to be withheld shall be based on Fair Market Value of the
Shares on the date that the amount of tax to be withheld is to be determined.

13.11 Beneficiary Designation. To the extent allowed by the Committee, each Participant under
the Plan may, from time to time, name any beneficiary or beneficiaries (who may be named on a
contingent or successive basis) to whom any benefit under the Plan is to be paid in case of his or
her death before he or she receives any or all of such benefit. Unless the Committee determines
otherwise, each such designation shall revoke all prior designations by the same Participant, shall
be in the form
prescribed by the Committee, and will be effective only when filed by the Participant in
writing with the Company during the Participant’s lifetime. In the absence of any such
designation, benefits remaining unpaid at the Participant’s death shall be paid to the
Participant’s estate.

 

23

 

13.12 Costs. The Corporation shall bear all expenses incurred in administrating this Plan,
including original issue, transfer, and documentary stamp taxes, and other expenses of issuing the
Shares pursuant to Awards granted hereunder.

13.13 Funding of the Plan. The Company shall not be required to establish or fund any special
or separate account or to make any segregation of assets to assure the payment of any Award under
the Plan.

13.14 Singular, Plural; Gender. Whenever used in this Plan, nouns in the singular shall
include the plural, and vice versa, and the masculine pronoun shall include the feminine gender.

13.15 Headings. Headings to the Sections and subsections are included for convenience and
reference and do not constitute part of the Plan.

13.16 Section 409A of the Code. It is the intention of the Company that no Award shall be
“deferred compensation” subject to Section 409A of the Code, unless and to the extent that the
Committee specifically determines otherwise as provided in this Section 14(k), and the Plan and the
terms and conditions of all Awards shall be interpreted accordingly. The terms and conditions
governing any Awards that the Committee determines will be subject to Section 409A of the Code,
including any rules for elective or mandatory deferral of the delivery of cash or Shares pursuant
thereto and any rules regarding treatment of such Awards in the event of a Change in Control, shall
be set forth in the applicable Award Agreement, and shall comply in all respects with Section 409A
of the Code. Notwithstanding any other provision of the Plan to the contrary, with respect to any
Award that constitutes a “nonqualified deferred compensation plan” subject to Section 409A of the
Code, any payments (whether in cash, Shares or other property) to be made with respect to the Award
upon the Participant’s Termination of Employment shall be delayed until the earlier of (A) the
first day of the seventh month following the Participant’s Termination of Employment if the
Participant is a “specified employee” within the meaning of Section 409A of the Code, and (B) the
Participant’s death.

13.17 Governing Law. This Plan and the actions taken in connection herewith shall be
governed, construed, and administered in accordance with the laws of the State of Delaware
regardless of the law that might otherwise govern under applicable Delaware principles of conflicts
of laws.

ARTICLE XIV

Effectiveness of the Plan

This Plan shall become effective on the date that it has been adopted by the Board of
Directors and subsequently approved by the Company’s Shareholders.

ARTICLE XV

Claw Back of Equity Awards

If the Company’s financial statements are required to be restated as a result of errors,
omission, or fraud, the Committee may, in its discretion, based on the facts and circumstances
surrounding the restatement, direct that the Company recover all or a portion of an equity award
from one or more
participants with respect to any fiscal year in which our financial results are negatively
affected by such restatement. To do this, the Committee may pursue various ways to recover from one
or more participants: (i) seek repayment; (ii) withhold future equity grants, bonus awards, or
salary increases; or (iii) take any combination of these actions.

 

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