Document:

Exhibit 10.1

 

PATNI
COMPUTER SYSTEMS LIMITED

EMPLOYEE
STOCK OPTION PLAN

1.                                      Name,
Objective and Term of the Plan

a)                                      The
Company desires to amend the ‘Patni ESOP 2003’ (the “Original Plan”), which was
effective from 30th June 2003, to grant to Employees options to
purchase Equity Shares of the Company or American Depositary Receipts of the
Company in terms of the provisions set forth below. This plan shall now be
called the “Amended Patni ESOP 2003” (the “Plan”).  The amendments shall come into force with effect
from 21st June 2006 (the “Amendment Date”) and shall
replace in its entirety the Original Plan. 
The members of the Company have approved the Plan in a general meeting
held on 21st June 2006. 
The objective of the Plan is to provide an incentive to attract, retain
and reward Employees performing Services for the Participating Companies and by
motivating such Employees to contribute to the growth and profitability of the
Participating Companies.

b)                                     The
Plan will come into force with effect as from the Amendment Date or on such
other date as may be decided by the Board and shall continue to be in force
until (i) its termination by the Board or (ii) the date on which all of the
Shares available for issuance under the Plan have been issued and all restrictions
on such Shares under the terms of the Plan, if any, and the Agreements
evidencing Employee Stock Options granted under the Plan,  have lapsed, whichever is earlier.

c)                                      Under
the Plan, Employees, including Existing Option Grantees, will now have a right to
purchase Equity Shares or ADRs in accordance with the terms of the Plan and the
grant letter and/or

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Agreement in respect of such Employee Stock Option(s)
granted to such Employees.

d)                                     The
Board may subject to compliance with Applicable Laws, at any time alter, amend,
suspend or terminate the Plan.

2.                                      Definitions

2.1                                 The
terms defined in this Plan shall for the purposes of this Patni ESOP 2003, have
the meanings herein specified and terms not defined in this Plan shall have the
meanings as defined in the SEBI Act, 1992, the Securities Contracts
(Regulation) Act, 1956, the Companies Act, 1956, the SEBI (Disclosure and
Investor Protection) Guidelines 2000 and the SEBI (Employee Stock Option Scheme
& Employee Stock Purchase Scheme) Guidelines, 1999, or other Applicable
Laws or in any statutory modifications or re-enactments thereof, as the case
may be.

a)                                      “Agreement”
means the employee stock option agreement between the Company and the Option
Grantee evidencing the terms and conditions of an Employee Stock Option. The
Agreement is subject to the conditions of the Plan and includes any amendment
thereto.

b)                                     “Amendment
Date” means 21st June 2006, the effective date of this
amendment and restatement of the Original Plan.

c)                                      “American
Depositary Receipts” or “ADRs” means an equity right representing two Equity
Shares of the Company, or such other number of Equity Shares or a fraction
thereof as may be specified from time to time, issued pursuant to a Deposit
Agreement entered into by the Company with Depository and  which is traded on a Recognised Stock
Exchange in the United States.

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d)                                     “Applicable
Law” means the legal requirements relating to Stock Options Plans, including,
without limitation, the Companies Act, 1956, the SEBI Act, the SEBI Guidelines,
the Code, the Exchange Act, the Securities Act and all relevant tax,
securities, exchange control or corporate laws of India and the United States,
or of any other relevant jurisdiction or of any stock exchange on which the
Shares are listed or quoted.

e)                                      “Board”
means the Board of Directors of the Company.

f)                                        “Change
of Control” means (i) the dissolution or liquidation of the Company or a
merger, consolidation, or reorganization of the Company with one or more other
entities in which the Company is not the surviving entity, (ii) a sale of
substantially all of the assets of the Company to another person or entity, or
(iii) any transaction (including without limitation a merger or
reorganization in which the Company is the surviving entity) which results in
any person or entity (other than persons who are shareholders or affiliates
immediately prior to the transaction) owning 50 percent or more of the combined
voting power of all classes of shares of the Company.

g)                                     “Code”
means the United States Internal Revenue Code of 1986, as amended.

h)                                     “Companies
Act” means the Companies Act, 1956 and any statutory modifications or
reenactments thereof.

i)                                         “Company”
means ‘Patni Computer Systems Limited’, or any successor thereof.

j)                                         “Compensation
Committee” means a Compensation Committee constituted of the Board of Directors
from time to time to administer the Plan.

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k)                                      “Deposit
Agreement” means the agreement dated 7th December 2005, as amended or
superseded from time to time.

l)                                         “Depository”
means the depository under the Deposit Agreement.

m)                                   “Director”
means a member of the Board of the Company.

n)                                     “Eligibility
Criteria” means the entitlement for offering the Employee Stock Options as may
be determined from time to time by the Compensation Committee.

o)                                     “Employee”
means (i) a permanent employee of the Company, a Subsidiary Company or a Parent
Company, whether working in India or out of India; or (ii) a director of the
Company, a Subsidiary Company or a Parent Company whether a whole time director
or not; or (iii) an employee as defined in sub-clauses (i) or (ii) of a
subsidiary, in India or out of India, or of a holding company of the Company,
save and except provided however that (i) an employee who is a promoter or
belongs to the promoter group shall not be eligible to participate in the Plan
and (ii) a director who either by himself or through his relatives or through
any body corporate, directly or indirectly holds more than 10% of the
outstanding Equity Shares of the Company shall not be eligible to participate
in the Plan.

p)                                     “Employee
Stock Option” means the option given to an Employee, which gives such Employee
the benefit or right to purchase or subscribe at a future date the number of
Equity Shares or ADRs, as applicable, offered by the Company at a
pre-determined Exercise Price as set forth in an Agreement.

q)                                     “Equity
Shares” means equity shares of the Company of par value Rs. 2 per share

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r)                                        “Exchange
Act” means the United States Securities Exchange Act of 1934, as now in effect
or as hereafter amended.

s)                                      “Exercise”
means making of an application by an Employee to the Company for issue of
Equity Shares or ADRs as applicable, against Employee Stock Options vested in
him in pursuance of the Plan, and paying the Exercise Price for the Employee
Stock Options.

t)                                        “Exercise
Period” means such time period as stipulated in each  Agreement covering Employee Stock Options,
after Vesting within which the Employee should exercise his right to apply for
Equity Shares or ADRs as applicable, against the Employee Stock Option so
vested.

u)                                     “Exercise
Price” means the price payable by Option Grantee with respect to each Equity
Share or ADR, as applicable, for exercising the Employee Stock Option granted
to him in pursuance of the Plan. With respect to an Option Grantee whose
Employee Stock Option covers ADRs, the Exercise Price shall be denominated in
U.S. dollars.

v)                                     “Existing
Option Grantee” means an Option Grantee who has been previously granted
Employee Stock Option as of the Amendment Date under the Original Plan in terms
of the Agreement but has not yet exercised such option, whether such option is
a Vested Option or an Unvested Option, provided that the Exercise Period in
respect of the outstanding Employee Stock Option shall not have expired.

w)                                   “Fair
Market Value” means the market price of an Equity Share or ADR, as listed on a
Recognised Stock Exchange, as applicable, as defined in the SEBI Guidelines.

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x)                                       “Grant”
means the issue of an Employee Stock Option to an Employee under the Plan.

y)                                     “Incentive
Stock Option” means an “incentive stock option” within the meaning of Section
422 of the Code, or the corresponding provision of any subsequently enacted tax
statute, as amended from time to time.

z)                                       “Nonqualified
Stock Option” means an Employee Stock Option that is not an Incentive Stock
Option.

aa)                                “Option
Grantee” means an Employee having a right but not an obligation to exercise an
Employee Stock Option in pursuance of the Plan which includes an Existing
Option Grantee .

bb)                              “Parent
Company” means any future holding company of the Company.

cc)                                “Participating
Company/Companies” means any or all of the Company or its Parent Company or any
of its Subsidiary Companies, as the context may require.

dd)                              “Permanent
Incapacity” means any disability of whatsoever nature be it physical, mental or
otherwise which incapacitates or prevents or handicaps an Employee from
performing any specific job, work or task which the said Employee was capable
of performing immediately before such disablement as determined by the
Compensation Committee based on a certificate of a medical expert of their
choice; provided, however, that, with respect to rules regarding expiration of
an Incentive Stock Option following termination of the Option Grantee’s
Service, Permanent Incapacity shall mean the Option Grantee is unable to engage
in any substantial gainful activity by reason of a medically determinable
physical or mental impairment which can be

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expected to
result in death or which has lasted or is expected to last for a continuous
period of not less than 12 months.

ee)                                “Plan”
means this Patni Employee Stock Option Plan under which the Company will grant
Employee Stock Options to Employees.

ff)                                    “Recognised
Stock Exchange” means the BSE, NSE, NYSE or any other Stock Exchange as agreed
by the Board on which the Company’s Equity Shares or ADRs, as applicable are
listed or to be listed.

gg)                              “Register”
means the Register of Option Grantees to be maintained by the Company.

hh)                              “Retirement”
means retirement as per the rules of the relevant Participating Company.

ii)                                      “SEBI
Act” means the Securities & Exchange Board of India Act, 1992 as amended,
and includes all regulations and clarifications issued thereunder.

jj)                                      “SEBI
Guidelines” means the Securities and Exchange Board of India (Employee Stock
Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, as amended
and includes all regulations and clarifications issued thereunder.

kk)                                “Securities
Act” means the United States Securities Act of 1933, as now in effect or as
hereafter amended.

ll)                                      “Service”
means the Option Grantee’s employment with a Participating Company, in the
capacity of an Employee.  The Option
Grantee’s employment shall not be deemed to be terminated merely because of a
change in the capacity in which the Option Grantee renders employment to a Participating
Company or is employed by another Participating Company,

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provided that there is no interruption or termination
of the Option Grantee’s employment.  An
Option Grantee’s employment shall be deemed to be terminated if a Participating
Company (to which the Option Grantee renders employment) ceases to be a
Participating Company. Subject to the foregoing, the Compensation Committee of
the Company, in its sole discretion, shall determine whether an Option Grantee
continues in employment of a Participating Company and which determination
shall be binding and final.

mm)                          “Shares”
means Equity Shares or ADRs of the Company arising out of the exercise of
Employee Stock Options granted under the Plan.

nn)                              “Subsidiary
company” means any present or future subsidiary company of the Company, as
defined in the Companies Act, 1956 or Section 424(f) of the Code, as
applicable.

oo)                              “Ten-Percent
Stockholder” means an individual who owns more than ten percent (10%) of the
total combined voting power of all classes of outstanding stock of the Company,
its parent or any of its Subsidiary Companies. 
In determining stock ownership, the attribution rules of Section 424(d)
of the Code shall be applied.

pp)                              “Vested
Option” means an Employee Stock Option in respect of which the relevant Vesting
Period is over and the Option Grantee has become eligible to exercise the
Employee Stock Option.

qq)                              “Vesting”
means the process by which the Option Grantee is given the right to apply for
Equity Shares or ADRs, as applicable, of the Company against the Employee Stock
Option granted to him in pursuance of the Plan.

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rr)                                    “Vesting
Period” means the period during which the Vesting of the Employee Stock Option
granted to the Employee, in pursuance of the Plan takes place.

ss)                                “Unvested
Option” means an Employee Stock Option in respect of which the relevant Vesting
Period is not over and the Option Grantee has not become eligible to exercise
the Employee Stock Option.

tt)

2.2                               Interpretation

In this Plan, unless the contrary intention appears:

a)                                      the
clause headings are for ease of reference only and shall not be relevant to
interpretation;

b)                                     a
reference to a clause number is a reference to its sub-clauses;

c)                                      words
in  singular number include the plural
and vice versa;

d)                                     words
importing a gender include any other gender;

e)                                      a
reference to a clause is a reference to a clause or sub-clause of this Plan;

f)                                        a
reference to a Schedule includes a reference to any part of that Schedule which
is incorporated by reference.

3.                                      Scope
of this Plan

3.1                                 A
Special Resolution (“Resolution”) had been passed at the Annual General Meeting
of the Company held on 30th June 2003 and later ratified by the Members at the
Annual General Meeting of the Company held on 29th June 2004, authorising the
Board to issue Equity Shares to

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eligible Employees, but not exceeding 1,11,42,085
Equity Shares of the Company.

A Special Resolution has been passed at the Annual General Meeting of
the Company held on 21st June 2006, authorising the Board to, subject
to Applicable Laws, amend the Original Plan to issue Shares to eligible
Employees, including not more than 2,000,000 American Depositary Receipts (ADR)
Linked Employee Stock Options (“ADR Linked Options”) (including converting
Employee Stock Options already granted to Existing Option Grantee) to the
Employees of the Company and also to the Employees of its Subsidiaries
(including executive and non-executive Directors of the Company and its
Subsidiaries but excluding the promoter Directors) as contemplated under and in
a manner such that the aggregate number of Equity Shares to be issued shall not
exceed the limit prescribed in the Resolution. All ADRs issuable under the Plan
may be issued as Incentive Stock Options or Nonqualified Stock Options.  Equity Shares or ADRs issued or to be issued
under the Plan shall be authorized but unissued shares or, to the extent
permitted by Applicable Law, issued shares that have been reacquired by the
Company.

3.2                                 If
an Employee Stock Option expires or becomes unexercisable without having been exercised
in full, the unpurchased Shares, which were subject thereto, shall become
available for future Grant or sale under the Plan (unless the Plan stands
terminated in accordance with the terms provided herein.

3.3                                 The Exercise Price for each Employee shall
be stipulated in his/her respective Agreement.

4.                                      Administration

4.1                                 Administration
- The Plan shall be administered by the Compensation Committee.  All questions of interpretation of the Plan
or any Employee

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Stock Option shall be determined by the Compensation Committee and
whose determination shall be final and binding upon all persons having an
interest in the Plan or such Employee Stock Option.

4.2                                 The
Compensation Committee shall in accordance with this Plan and Applicable Laws,
determine the detailed terms and conditions of the Employee Stock Options,
including but not limited to:-

(a)                                  The
quantum of Employee Stock Options to be granted under the Plan per Employee and
in aggregate;

(b)                                 The
type of Shares granted (i.e. Equity Shares or ADRs) to any Employee, subject to
compliance with Applicable Laws and regulations (and such determination of the
Compensation Committee shall be final and binding);

(c)                                  The
Eligibility Criteria;

(d)                                 The
conditions under which Employee Stock Option vested in Employees may lapse in
case of termination of employment for misconduct;

(e)                                  The
Exercise Price;

(f)                                    The
Exercise Period within which the Employee should Exercise the Employee Stock
Option;

(g)                                 The
schedule for Vesting for the Exercise of Employee Stock Options by eligible
Employees within the Exercise Period;

(h)                                 The
procedure for making a fair and reasonable adjustment to the number of Employee
Stock Options and to the Exercise Price in case of corporate action such as rights
issues, bonus issues, merger, sale of division and others;

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(i)                                     The
specified time period within which the Employee shall Exercise the Vested
Options in the event of termination of service of an Employee;

(j)                                     The
Grant, Vesting and Exercise of Employee Stock Option in case of Employees who
are on long leave;

(k)                                  The
procedure for cashless exercise of Employee Stock Options, if required;

(l)                                     Policies
and systems to ensure that there is no violation of (i) Securities and Exchange
Board of India (Insider Trading) Regulations, 1992; (ii) Securities and
Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices
relating to the Securities Market) Regulations, 1995; (iii) Securities
Act; or iv) Exchange Act, by any Employee; and

(m)                               Forms, writings and/or agreements for use in
pursuance of the Plan.

5.                                      Employee
Stock Options

5.1                                 Eligibility
for Grant of Employee Stock
Options

(a)                                  Only
Employees of Participating Companies are eligible for being granted Employee
Stock Options.

(b)                                 Neither
the Plan, whether in its current form or in the form prior to the Amendment
Date, nor any Employee Stock Option shall confer upon any Option Grantee any
right with respect to continuing the Option Grantee’s relationship as Employee
with the Company, nor shall it interfere in any way with his or her right or
the Company’s right to terminate such relationship at any time, for any reason
whatsoever.

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5.2                                 Limitations
on Incentive Stock Options

An Employee Stock Option shall constitute an Incentive
Stock Option only (a) if the Option Grantee is an employee of the Company,
a Subsidiary Company or a Parent Company; (b) to the extent specifically
provided in the related Agreement; and (c) to the extent that the
aggregate Fair Market Value (determined at the time the Employee Stock Option
is granted) of the Equity Shares or ADRs, as applicable, with respect to which
all Incentive Stock Options held by such Option Grantee become exercisable for
the first time during any calendar year (under the Plan and all other plans of the
Option Grantee’s employer and its affiliates) does not exceed US$100,000.  This limitation shall be applied by taking
Employee Stock Options into account in the order in which they were granted.

5.3                               Grant
and Grant Agreement

(a)                                  The
Compensation Committee will identify eligible Employees based on the
Eligibility Criteria.  The Compensation
Committee would then Grant them an Employee Stock Option to buy Equity Shares
or ADRs, as applicable of the Company by way of a grant intimation, on terms as
are stipulated in the Plan.

(b)                                 Each
Employee Stock Option shall be evidenced by the Agreement specifying the number
of Equity Shares or ADRs as applicable, covered thereby, in such form as the
Compensation Committee shall from time to time determine. Such Agreements shall
be deemed to incorporate all of the terms of the Plan, as if the same were set
out therein. Agreements granted from time to time or at the same time need not
contain similar provisions but shall be consistent with the terms of the Plan.
Each Agreement evidencing a Grant shall specify whether such Employee Stock
Options are intended to be Nonqualified Stock Options or Incentive Stock

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Options, and in the absence of such specification such options shall be
deemed Nonqualified Stock Options.

(c)                                  The
Compensation Committee may, at its discretion but subject to compliance with
any Applicable Laws and regulations, give an option in writing to an Existing
Option Grantee to purchase Equity Shares or ADRs upon exercise of the Employee
Stock Option. The Agreement evidencing an outstanding Employee Stock Option
previously entered between the Company and such Existing Option Grantee may,
with the concurrence of the Existing Option Grantee, be amended by the
Compensation Committee, provided that the terms of the amendment are not
inconsistent with this Plan and that no amendment shall adversely affect the
rights of the Existing Option Grantee with respect to any outstanding Employee
Stock Option.

6.                                    Terms
and Conditions of Employee Stock Options

6.1                               Exercise Price

The Exercise Price of
each Employee Stock Option shall be fixed by the Compensation Committee and
stated in the Agreement evidencing such Employee Stock Option.  The Exercise Price shall not be less than the
Fair Market Value of an Equity Share or ADR, as applicable, on a Recognised
Stock Exchange on the date of Grant; provided, however, that, subject to
Applicable Law, including the SEBI Guidelines, in the event that an Option
Grantee is a Ten-Percent Stockholder, the Exercise Price of an Incentive Stock
Option granted to such Option Grantee shall not be less than 110 percent of the
Fair Market Value of an Equity Share or ADR, as applicable, on a Recognised
Stock Exchange on the date of Grant. To the extent required by Applicable Law,
in the case of a Nonqualified Stock Option, the Exercise Price shall be not
less than 100 percent of the Fair Market Value of an Equity Share or ADR, as 

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applicable, on a Recognised Stock Exchange on the date of Grant.  In no case shall the Exercise Price of any
Employee Stock Option be less than the par value of a Share of the Company.

6.2                               Vesting
and Vesting Periods

Subject to Clause 6.3 and 13.3 hereof, each Employee
Stock Option granted under the Plan shall become exercisable at such times and
under such conditions as shall be determined by the Compensation Committee and
stated in the Agreement.  For purposes of
this Clause 6.2, fractional numbers of Equity Shares or ADRs, as applicable,
subject to an Employee Stock Option shall be rounded down to the next nearest
whole number. The minimum Vesting Period of an Employee Stock Option shall not
be less than a period of 12 months from the date of Grant.

6.3                                 Term

Each Employee Stock Option granted under the Plan shall terminate, and
all rights to purchase Equity Shares or ADRs, as applicable, thereunder shall
cease, upon the expiration of ten years from the date of Grant, or under such
circumstances and on such other date prior thereto as is set forth in the Plan
and as may be fixed by the Compensation Committee and stated in the Agreement
relating to such Employee Stock Option; provided, however, that in the event
that the Option Grantee is a Ten-Percent Stockholder, an Employee Stock Option
granted to such Option Grantee that is intended to be an Incentive Stock Option
shall not be exercisable after the expiration of five years from its date of
Grant.

6.4                                 Non
Transferability of Employee Stock Options

a)                                      Employee
Stock Options shall not be transferable to any person except in the event of
death of the Option Grantee in accordance with Clause 6.5(a).

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b)                                     No
person other than the Employee to whom the Employee Stock Option is granted
shall be entitled to Exercise the Employee Stock Option except in the event of
the death of the Option Grantee in accordance with Clause 6.5(a).

c)                                      The
Employee Stock Option shall not be pledged, hypothecated, mortgaged or
otherwise alienated in any other manner.

6.5                                 Exercise
of Employee Stock Options in Certain Events

a)                                      In the event of the death of an Employee
while in employment with a Participating Company, all the Vested and Unvested
Options may be Exercised by the Option Grantee’s nominee immediately after, but
in no event later than six months from the date of death.

b)                                     In
the event of separation of an Employee from the Participating Company due to
reasons of Permanent Incapacity the Option Grantee may Exercise his or her
Vested as well as Unvested Option immediately after Permanent Incapacity but in
no event later than six months from the date of separation from employment.

c)                                      In
the event of resignation from employment for reasons of normal retirement or a
retirement specifically approved by the Participating Company, (i) all Vested
Options should be exercised by the Option Grantee immediately after, but in no
event later than six months from the date of such Option Grantee’s   retirement, but (ii) all Unvested Options
will lapse as on the date of such retirement, unless otherwise determined by
the Compensation Committee and which determination will be final and binding.

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d)                                     In
the event of resignation from employment, all Unvested Options, on the date of
the last working day subsequent to resignation, shall expire and stand
terminated with effect from that date. However, all Vested Options, as on that
date of such last working day, shall be exercised by the employee immediately
but not later than 60 days from the date of such last working day.

e)                                      In
the event of abandonment of employment by an Option Grantee without the
relevant Participating Company’s consent, all Employee Stock Options including
Vested Options but which were not exercised at the time of abandonment of
employment, shall stand terminated with immediate effect. The Compensation
Committee, at its sole discretion shall decide the date of abandonment by an
Employee and which decision shall be binding on all concerned.

f)                                        In
the event of termination of the employment of an Option Grantee due to breach
of policies of the relevant Participating Company or the terms of employment,
all Employee Stock Options, including Vested Options but which were not
exercised at the time of such breach shall stand terminated with effect from
the date of such breach.

(g)                                 Subject to Clause 13.1,
In the event of the Company being reconstituted or amalgamated or merged,
the Board shall (prior to such reconstruction or amalgamation or merger) in
accordance with Applicable Law and the recommendations of the Compensation
Committee decide as to how all Unvested Options granted to Option Grantees will
Vest and all Option Grantees will abide by the determination of the Board.

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7.                                      Rights
of the Option Grantee

7.1                                 The Employee shall not have right to
receive any dividend or to vote or in any manner enjoy the benefits of a
shareholder in respect of Employee Stock Option, till Equity Shares or ADRs as
applicable, are allotted on Exercise of Employee Stock Option.

7.2                                 Nothing herein is intended to or shall
give the Option Grantee any right or status of any kind as a shareholder of the
Company in respect of any Equity Shares or ADRs as applicable covered by the
Grant unless the Option Grantee Exercises the Employee Stock Option and becomes
a registered holder of the Equity Shares or ADRs as applicable.

7.3                                 If the Company issues Bonus or Rights
Shares, the Option Grantee will not be eligible for the Bonus or Rights Shares as
Option Grantee. Only if the Employee Stock Options are Vested and Exercised,
the Employees will be entitled for Bonus or Rights Shares as other
shareholders.

8.                                      Payment
of Exercise Price

Form of Consideration Authorised- Payment of the Exercise Price for the
Equity Shares or ADRs, as applicable, being purchased pursuant to any Employee
Stock Option shall be made in such manner as may be determined by the
Compensation Committee from time to time.

9.                                      Deduction
of Tax

The relevant Participating Company shall have the
right to deduct from the salary, for any obligation towards tax deduction
arising in connection with the Employee Stock Option or the Equity Shares or
ADRs as applicable, acquired upon the Exercise thereof.  The Company shall have no obligation to
deliver Equity Shares or ADRs as applicable, until the Participating Companies’
tax deducting obligations, if any have been satisfied by the Option Grantee.

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10.                               Consequence
of Failure to Exercise Employee Stock Option

The amount paid by
the Employee, if any, at the time of Grant:

10.1                           may be forfeited by the Participating
Company if the Employee Stock Option is not Exercised by the Employee within
the Exercise Period; or

10.2                           may be refunded to the Employee if the
Employee Stock Option is not Vested due to non- fulfillment of conditions
relating to Vesting of Option as per the Plan.

11.                               Authority
to vary terms

The Compensation Committee shall subject to the SEBI Guidelines and
Applicable Laws have the authority from time to time to vary the terms of any
of the Agreements, provided, however, that the terms and conditions of any such
new, revised or amended Agreements shall be in accordance with the terms of the
Plan.

12.                             Termination
or Amendment of the Plan

The Board may, subject to compliance with Applicable Laws, alter,
amend, suspend or terminate the Plan at any time.

13.                           Effect
of Changes in Capitalization

13.1                         Changes
in Stock

The number of Equity
Shares or ADRs, as applicable, for which Grants may be made under the Plan
shall be proportionately increased or decreased for any increase or decrease in
the number of shares of common stock of the Company on account of any
recapitalization, reclassification, stock split, reverse split, combination of
shares, exchange of shares, stock dividend or other distribution payable in
capital stock, or for any other increase or decrease in such shares effected
without receipt of consideration by the Company occurring

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after the Effective Date ( any such event hereafter referred to as a “Corporate
Event”).  In addition, subject to the
exception set forth in the last sentence of Clause 13.4, the number of Equity
Shares or ADRs, as applicable, for which Grants are outstanding shall be
proportionately increased or decreased for any increase or decrease in the
number of shares of common stock of the Company on account of any Corporate
Event.  Any such adjustment in
outstanding Employee Stock Options shall not change the aggregate Exercise
Price payable with respect to shares that are subject to the unexercised
portion of an Employee Stock Option outstanding but shall include a
corresponding proportionate adjustment in the Exercise Price per share.  The conversion of any convertible securities
of the Company shall not be treated as an increase in shares effected without receipt
of consideration. In the event of any distribution to the Company’s
shareholders of an extraordinary cash dividend or securities of any other
entity or other assets (other than ordinary dividends payable in cash or stock
of the Company) without receipt of consideration by the Company, the Company
may, in such manner as the Company deems appropriate, adjust (i) the number and
kind of Shares subject to outstanding Grants and/or (ii) the exercise price of
outstanding Employee Stock Options to reflect such distribution.

13.2                           Reorganization
in Which the Company Is the Surviving Entity and in Which No Change of Control
Occurs.

Subject to the exception set forth in the last sentence of Clause 13.4,
if the Company shall be the surviving entity in any reorganization, merger, or
consolidation of the Company with one or more other entities and in which no
Change of Control occurs, any Grant theretofore made pursuant to the Plan shall
pertain to and apply solely to the common stock shares to which a holder of the
number of Equity Shares or ADRs, as applicable, subject to such Grant would
have been entitled immediately following such reorganization, merger, or
consolidation,

 20

 

 

and with a corresponding proportionate adjustment of the Exercise Price
per share so that the aggregate Exercise Price thereafter shall be the same as
the aggregate Exercise Price of the shares remaining subject to the Employee
Stock Option immediately prior to such reorganization, merger, or
consolidation.

13.3                           Change
of Control

Subject to the exceptions set forth in the last sentence of this Clause
13.3 and the last sentence of Clause 13.4 upon the occurrence of a Change of
Control either of the following two actions shall be taken:

prior to the scheduled consummation of a Change of Control, all
Employee Stock Options outstanding hereunder shall become immediately
exercisable and shall remain exercisable for a reasonable period of time
determined by the Board in its sole discretion, or

the Board may elect, in its sole discretion, to cancel any outstanding
Grants and pay or deliver, or cause to be paid or delivered, to the holder
thereof an amount in cash or securities having a value (as determined by the Board
acting in good faith) equal to the product of the number of Equity Shares or
ADRs, as applicable, subject to the Grant (the “Grant Shares”) multiplied by
the amount, if any, by which (I) the formula or fixed price per share paid to
holders of Equity Shares or ADRs, as applicable, pursuant to such transaction
exceeds (II) the Exercise Price applicable to such Equity Shares or ADRs.

With respect to the Company’s establishment of an exercise window, (i)
any exercise of an Employee Stock Option during such period shall be
conditioned upon the consummation of the event and shall be effective only
immediately before the consummation of the event, and (ii) upon consummation of
any Change of Control the Plan, and all outstanding but unexercised Employee
Stock Options shall terminate.  The Board
shall

 21
 

 

 

send written notice of an event that will result in such a termination
to all individuals who hold Employee Stock Options not later than the time at
which the Company gives notice thereof to its shareholders.

This Clause 13.3 shall not apply to any Change of Control to the extent
that provision is made in writing in connection with such Change of Control for
the assumption or continuation of the Employee Stock Options theretofore
granted, or for the substitution for such Grants for new common stock options
relating to the stock of a successor entity, or a parent or subsidiary thereof,
with appropriate adjustments as to the number of shares (disregarding any
consideration that is not common stock) and option prices, in which event the
Grants theretofore granted shall continue in the manner and under the terms so
provided.

13.4                           Adjustments

Adjustments under Clause 13 related to shares of common stock of the
Company shall be made by the Board, whose determination in that respect shall
be final, binding and conclusive.  No
fractional shares or other securities shall be issued pursuant to any such
adjustment, and any fractions resulting from any such adjustment shall be
eliminated in each case by rounding downward to the nearest whole share.  The Board may provide in the Agreements at
the time of Grant, or any time thereafter with the consent of the Option
Grantee, for different provisions to apply to a Grant in place of those described
in Clauses 13.1, 13.2 and 13.3.

13.5                           No
Limitations on Company

The making of Grants pursuant to the Plan shall not affect or limit in
any way the right or power of the Company to make adjustments,
reclassifications, reorganizations, or changes of its capital or business

 22
 

 

 

structure or to merge, consolidate, dissolve, or liquidate, or to sell
or transfer all or any part of its business or assets.

14.                               Miscellaneous

14.1                           Government
Regulations

This Plan shall be subject to all Applicable Laws, and approvals from
governmental authorities in India, the United States or any other relevant
jurisdiction. The Grant and the allotment of Equity Shares or ADRs as
applicable under this Plan shall also be subject to the Company requiring
Employees to comply with all Applicable Laws and be subject to the approval of
the Company’s Counsel.

14.2                       Inability
to obtain authority Rule 16b-3

During any time when the Company has a class of equity
security registered under Section 12 of the Exchange Act, it is the intent of
the Company that Grants pursuant to the Plan and the exercise of Employee Stock
Options granted hereunder will qualify for the exemption provided by Rule 16b-3
under the Exchange Act.  To the extent
that any provision of the Plan or action by the Board does not comply with the
requirements of Rule 16b-3, it shall be deemed inoperative to the extent
permitted by law and deemed advisable by the Board, and shall not affect the
validity of the Plan.  In the event that
Rule 16b-3 is revised or replaced, the Board may exercise its discretion to
modify this Plan in any respect necessary to satisfy the requirements of, or to
take advantage of any features of, the revised exemption or its replacement.

14.3                         Disclaimer
of Rights

No provision in the Plan or in any Grant or Agreement shall be
construed to confer upon any individual the right to remain in the employ or
service of the Company or any of its affiliates, or to interfere in any way

 23
 

 

 

with any contractual or other right or authority of the Company either
to increase or decrease the compensation or other payments to any individual at
any time, or to terminate any employment or other relationship between any
individual and the Company or any of its affiliates.  The obligation of the Company to pay any
benefits pursuant to this Plan shall be interpreted as a contractual obligation
to pay only those amounts described herein, in the manner and under the
conditions prescribed herein.  The Plan
shall in no way be interpreted to require the Company to transfer any amounts
to a third party trustee or otherwise hold any amounts in trust or escrow for
payment to any participant or beneficiary under the terms of the Plan.

14.4                         Non-exclusivity
of the Plan

Neither the adoption of the Plan nor the submission of
the Plan to the shareholders of the Company for approval shall be construed as
creating any limitations upon the right and authority of the Board subject to
Applicable Laws to adopt such other incentive compensation arrangements (which
arrangements may be applicable either generally to a class or classes of
individuals or specifically to a particular individual or particular
individuals) as the Board in its discretion determines desirable, including,
without limitation, the granting of stock options otherwise than under the
Plan.

14.5                         Severability

If any provision of the Plan or any Agreement shall be determined to be
illegal or unenforceable by any court of law in any jurisdiction, the remaining
provisions hereof and thereof shall be severable and enforceable in accordance
with their terms, and all provisions shall remain enforceable in any other
jurisdiction.

 24
 

 

 

14.6                         Code
Section 409A

The Board intends to comply with Section 409A of the
Code, or an exemption to Section 409A of the Code, with regard to Grants
hereunder that constitute nonqualified deferred compensation within the meaning
of Section 409A of the Code.  To the
extent that the Board determines that an Option Grantee would be subject to the
additional 20 percent tax imposed on certain nonqualified deferred compensation
plans pursuant to Section 409A of the Code as a result of any provision of any
Grant granted under this Plan, such provision shall be deemed amended to the
minimum extent necessary to avoid application of such additional tax.  The nature of any such amendment shall be
determined by the Board.

14.7                           Notices

All notices of communications required to be given by
the Company to Option Grantee by virtue of this Plan shall be in writing at the
addresses available in the records of the Company and any notice to be given by
an Option Grantee to the Company shall be at the addresses mentioned below:

Company Address or to such other address as the Company may notify to
the Employees from time to time.

15.                               Governing Law and Jurisdiction

15.1                         The terms
and conditions of the Plan shall be governed by and construed in accordance
with the laws of India;

15.2                         The High Court of Bombay shall have
jurisdiction in respect of any and all matters, disputes or differences arising
in relation to or out of this Plan, and the Company and all Employees shall
submit themselves to the jurisdiction of the High Court of Bombay in connection
with this Plan. 

 25
 

 

 

15.3                         Nothing in this Clause will however limit
the right of the Company to bring proceedings against any Employee in
connection with this Plan: -

(i)                                     in any other court of competent
jurisdiction; or

(ii)                                  concurrently in more than one
jurisdiction.

16.                               General
Risks

Participation in this Plan shall not be construed as any guarantee of
return on the equity investment. Any loss due to fluctuations in the market
price of the Equity Shares or ADRs, as applicable and the risks associated with
the investment is that of the Employee alone.

17.                               Income
Tax Rules

Any applicable Income Tax Laws and Rules in India, the United States or
any other relevant jurisdiction as in force will be applicable.

============

 26Exhibit 10.2

 

PATNI
COMPUTER SYSTEMS LIMITED

EMPLOYEE STOCK OPTION
AGREEMENT

THIS EMPLOYEE STOCK
OPTION AGREEMENT (the “Option Agreement”)
is made and entered into this       day of             ,
200  , by and between Patni Computer Systems
Limited, a company incorporated under the Companies Act, 1956, and
having its registered office at S-1A, Irani Market Compound, Yerawada, Pune-411
006 (hereinafter referred to as the “Company”), And                                          Indian /             
inhabitant, residing at                                                             
(hereinafter referred to as the “Option Grantee”).

The Company has granted
to the Option Grantee an Employee Stock Option to purchase certain Shares, upon
the terms and conditions set forth in this Option Agreement. The Employee Stock
Option shall in all respects be subject to the terms and conditions of the Amended Patni ESOP 2003 (hereinafter referred to as the “Plan”).

 1
 

 

 

1.1                                 Interpretation

The terms defined in this Option Agreement shall for the purposes of
this Option Agreement, have the meanings herein specified and terms not defined
in this Option Agreement shall have the meanings as defined in the Companies
Act, 1956, SEBI Act, 1992, the Securities Contracts (Regulation) Act, 1956, the
SEBI (Disclosure and Investor Protection) Guidelines, 2000 the SEBI (Employee
Stock Option Scheme & Employee Stock Purchase Scheme) Guidelines, 1999,
other Applicable Laws and the Plan.

1.2                                 Plan

The terms and conditions as contained in the Plan shall be deemed to be
incorporated in this Option Agreement as if the same were fully set out herein.
In the event of a conflict between the terms and conditions of this Option
Agreement and the Plan, the terms and conditions of the Plan shall prevail. The
Plan and this Option Agreement constitute the entire agreement of the parties
with respect to the subject matter hereof and supersede in their entirety all
prior understandings and agreements of the Company and the Option Grantee with
respect to the subject matter hereof.

2.                                       Tax Effects: The Option Grantee should consult with his/her
own tax advisors regarding the tax effects of this Employee Stock Option.

3.                                       Grant: The Option Grantee is hereby granted an Employee
Stock Option to purchase Equity Shares  /
ADRs of the Company, subject to Applicable Laws, and the terms and conditions
of the Plan and this Option Agreement, as more particularly stipulated in
Schedule I hereto.

 2
 

 

 

4.                                       Administration by the Compensation Committee: All questions
of interpretation concerning this Option Agreement shall be determined by the
Compensation Committee and whose determination shall be final and binding upon
all persons having an interest in the Amended Patni ESOP 2003 or such Employee
Stock Option.

5.                                       Exercise of Employee Stock Option

5.1                                 The
Employee Stock Option  granted under the
Plan shall be exercisable within ten years from the date of Grant as stipulated
in Schedule I hereto, or under such circumstances and on such other date prior
thereto as is set forth in the Plan and as may be fixed by the Compensation
Committee relating to such Employee Stock Option; provided, however, that in
the event that the Option Grantee is a Ten-Percent Stockholder, an Employee
Stock Option granted to such Option Grantee that is intended to be an Incentive
Stock Option shall not be exercisable after the expiration of five years from
its date of Grant, subject to Applicable Laws and the terms and conditions of
the Plan and this Option Agreement.

5.2                                 Method of Exercising Employee Stock  Options:
Exercise of the Employee Stock Option shall be by written notice to the Company
(in the prescribed form as the Exercise Notice) which must state the election
to exercise the Employee Stock Option, the number of Equity Shares / ADRs for
which the Employee Stock Option is being exercised and such other agreement/s
as may be required by the Compensation Committee. The Exercise Notice must be
signed by the Option Grantee or his/her nominee (in case of the Option Grantee’s
death) and must be delivered in person, by certified or registered mail, return
receipt requested, by confirmed facsimile transmission, or by such other means
as the Compensation Committee may permit, to the Company Secretary of the

 3
 

 

 

Company, through the Human Resources Head of the Company ; accompanied
by (i) full payment of the aggregate Exercise Price for the number of Equity
Shares / ADRs being purchased and (ii) an executed copy, if required, of the
then current forms of agreements as may be required by the Compensation
Committee. The Employee Stock Option shall be deemed to be exercised upon
receipt by the Company of the Exercise Notice, the aggregate Exercise Price,
and if required by the Compensation Committee, such executed agreements.

5.3     Mode
of Exercise Price Payment: Payment of the aggregate Exercise
Price for the number of Equity Shares / ADRs for which the Employee Stock
Option is being exercised shall be made in such manner as may be determined by
the Compensation Committee from time to time.

5.4                             Equity
Shares/ADRs: On the Employee exercising his/her Employee Stock Option,
his/her account will be credited with the number of Equity Shares/ADRs for
which the Employee Stock Option is exercised.

5.5                              Deduction
of Tax at Source: If Applicable Laws require a Participating Company to withholding
taxes in connection with the Grant or Exercise of the Employee Stock Option or
in connection with later disposition of any Equity Shares/ADRs acquired upon
Exercise of the Employee Stock Option, the Option Grantee is hereby deemed to
have authorized such withholding from payroll and/or any other amounts payable
to the Option Grantee, and the Option Grantee otherwise agrees to make adequate
provision for, any sums required to satisfy his/her tax obligations. The
Company shall have no obligation to deliver Equity

 4
 

 

 

Shares or ADRs, as applicable, until the Participating Companies’ tax
deducting obligations, if any, have been satisfied by the Option Grantee.

5.6                              Compliances
for granting Employee Stock Option and issuing Equity Shares / ADRs: The
Grant of the Employee Stock Option and the issuance of Equity Shares / ADRs
upon exercise of the Employee Stock Option shall be subject to compliance with
all Applicable Laws, the Plan and this Option Agreement. The Employee Stock
Option may not be exercised if the issuance of Equity Shares / ADRs upon
Exercise would constitute a violation of any Applicable Laws or would be in
violation or breach of any provision in the Plan. The inability of the Company
to comply with any Applicable Laws, or the provisions of the Plan, (and in
particular Clauses 7.2 and 7.3 thereof) as may be determined by the
Compensation Committee (based upon the advice of the Company’s Legal counsel,
if necessary) as are necessary for the lawful issuance and sale of any Equity
Shares / ADRs shall absolutely relieve and discharge the Company of any and all
liability including to the Option Grantee in respect of the Company’s failure
to issue or sell such Equity Shares / ADRs. As a condition to the Exercise of
the Employee Stock Option, the Compensation Committee of the Company may
require the Option Grantee to satisfy any and all qualifications that may be
necessary or appropriate, to evidence compliance with any and all Applicable
Laws, and the provisions of the Plan and this Option Agreement and to
furthermore make any further representations or warranties as may be requested
by the Compensation Committee.

6.             Non transferability of Employee Stock Options:

6.1                               Employee
Stock Options shall not be transferable to any person except in the event of the
death of the Option Grantee, in accordance with 
6.5(a) of the Plan.

 5
 

 

 

6.2                                No
person other than the Employee to whom the Employee Stock Option is granted
shall be entitled to Exercise the Employee Stock Option except in the event of
the death of the Option Grantee in accordance with  6.5(a) of the Plan.

6.3                                 The
Employee Stock Option shall not be pledged, hypothecated, mortgaged or
otherwise alienated in any other manner.

7.                                      Exercise
of Employee Stock  Options in the case of separation of an Employee from the Participating
Company:

Subject to  6.2 of the Plan:

a)                                      In
the event of the death of an Employee while in employment with a Participating
Company, all the Vested and Unvested Options may be Exercised by the Option
Grantee’s nominee immediately after, but in no event later than six months from
the date of death.

b)                                     In
the event of separation of an Employee from the Participating Company due to
reasons of Permanent Incapacity the Option Grantee may Exercise his or her
Vested as well as Unvested Option immediately after Permanent Incapacity but in
no event later than six months from the date of separation from employment.

c)                                      In
the event of resignation from employment for reasons of normal retirement or a
retirement specifically approved by the Participating Company (i) all Vested
Options should be Exercised by the Option Grantee immediately after but in no
event later than 6 months from the date of such Option Grantee’s retirement but
(ii) all Unvested Options will lapse as on the date of such

 6
 

 

 

retirement unless otherwise determined by the
Compensation Committee, and which determination will be final and binding.

d)                                     In
the event of resignation from employment, all Unvested Options, on the date of
the last working day subsequent to resignation, shall expire and stand
terminated with effect from that date. However, all Vested Options, as on that
date of such last working day, shall be exercised by the Employee immediately
but not later than 60 days from the date of such last working day.

e)                                      In
the event of abandonment of employment by an Option Grantee without the
relevant Participating Company’s consent, all Employee Stock Options including
Vested Options but which were not Exercised at the time of abandonment of
employment, shall stand terminated with immediate effect. The Compensation
Committee, at its sole discretion shall decide the date of abandonment by an
Employee, and which decision shall be binding on all concerned.

f)                                        In
the event of termination of the employment of an Option Grantee due to breach
of policies of the relevant Participating Company or the terms of employment,
all Employee Stock Options, including Vested Options but which were not
Exercised at the time of such breach shall stand terminated with effect from
the date of such breach.

g)                                     Subject to Clause 13.1
of the Plan, in the event of the Company being reconstituted or amalgamated or
merged, the Board shall (prior to such reconstruction or amalgamation or
merger) in accordance with Applicable Law and the recommendations of the
Compensation Committee decide as to how all Unvested Options

 7
 

 

 

granted to Option Grantees will Vest and all Option
Grantees will abide by the determination of the Board.

8.                                                              In
pursuance of this Option Agreement, the Company shall give Equity Shares of the
Company / ADRs of the Company on payment of the Exercise Price, at any time
during the Exercise Period as specified in the Amended Patni ESOP 2003.

9.                                                           Covenants
of the Option Grantee:

9.1                                                         Option
Grantee confirms that he/she shall not engage himself / herself in activities
that have or will have an adverse impact on the reputation of any of the
Participating Companies.

9.2                                                       Option
Grantee confirms that while during employment with a Participating Company
he/she shall engage himself/herself exclusively in the work assigned by such
Participating Company and shall not take up any independent or individual
assignments, whether the same is part time or full time, (in an advisory
capacity or otherwise) and whether directly or indirectly.

9.3                                                         Option
Grantee confirms that he/she shall not, directly or indirectly, engage in any
activity or have any interest in, or perform any services for any person who is
involved in activities, which are or shall be (in the sole opinion of the
Compensation Committee) in conflict with the interests of any of the
Participating Companies.

9.4                                                         In
consideration of the Employee Stock Options granted to the Option Grantee, as
also, opportunities, training and access to new techniques and know-how that
have been made available to the Option Grantee, the Option Grantee confirms
that he/she shall

 8
 

 

 

also strictly abide by any and all of the terms of the Undertaking
executed by him/her in favour of the relevant Participating Company.

9.5                                                       Option
Grantee agrees to maintain as secret and confidential all Confidential
Information (as defined herein) and shall not use or divulge or disclose any
such Confidential Information except as may be required under any obligation of
law (subject to obtaining the consent of the relevant Participating Company) or
as may be required by the relevant Participating Company.

9.6                                                      Option
Grantee agrees that the clauses above apply to such information that any
Participating Company believes in its discretion to be confidential.
Consequently, the Option Grantee understands that “Confidential Information”
means any or all information about any or all of the Participating Companies
that satisfies one or more of the following conditions:

(a)                                  it
has not been made generally available to the public save and except for
information disclosed to the public with the consent of all of the
Participating Companies; or

(b)                                 it
is critical to any of the Participating Companies current or anticipated
business or research and development activities or those of a customer or
supplier or associate or channel partner of any of the Participating Companies
and the disclosure of the same would affect their competitiveness; or

(c)                                  it
either has been identified as confidential by any of the Participating
Companies (either orally or in writing) or it has been maintained as
confidential from outside parties and is recognized as intended for internal
disclosures only; or

 9
 

 

 

(d)                                 it
either is of a nature that it gives a distinct edge to any of the Participating
Companies over competition when not shared with the competition, or is likely
to give any advantage to the competition or any other organization / person /
group of persons when shared with the organization / person / group of persons;
or

(e)                                  it
is required to be kept confidential by any requirement of law.

“Confidential Information” includes all
trade related information, trade secrets, confidential and privileged
information, customer information, employment related information, strategies,
administration, research in connection with any of the Participating Companies
and commercial, legal, scientific, technical data that are either provided to
or made available to the Employee by any of the Participating Companies to
facilitate his/her work or that the Employee is able to know or has obtained
access by virtue of his/her employment or position with the relevant
Participating Company.

By way of illustration, the following are examples of Confidential
Information:

(a)                                  computer
programmes, inventions, samples, designs, drawings, machines, tools,
photographs, source codes, object codes, methods, concepts, formulas,
algorithms, processes, technical specifications, analyses, discoveries,
improvements, marketing methods, manufacturing processes, research and
development information;

(b)                                 organizational
matters, business plans, company policies, sales forecasts, employee and
personnel information (including information pertaining to their terms of
employment, experience,

 10

 
  

 

contact details, appraisals, performance,
competencies, specialized skills / expertise, medical information, etc.);

(c)                                  non-public
financial information relating to any of the Participating Companies including
their financial results for any period;

(d)                                 business
Plans of any of the Participating Companies including their monthly flash
reports / actual reports and estimates;

(e)                                  current
and prospective customer lists and information on customers and their Employees
of any of the Participating Companies; 

(f)                                    information
relating to existing and potential intellectual property of any of the
Participating Companies; 

(g)                                 dividend
policy of any of the Participating Companies including the intended declaration
of dividend; 

(h)                                 issue
of Equity Shares or ADRs, as applicable of any of the Participating Companies
by way of public offers, rights issues, bonus issue, employee stock options; 

(i)                                     major
expansion plans or execution of new projects including information concerning
amalgamations, mergers, acquisitions and takeovers being planned or
contemplated by any of the Participating Companies and information concerning
the purchase of major equipment or property and the disposal of any
undertakings of any of the Participating Companies;

 11
 

 
  

 

(j)                                     information
relating to any of the Participating Companies regarding acquisition or loss of
significant contracts, significant disputes with major suppliers, consumers or
any Governmental or regulatory agency; 

(k)                                  any
information that may affect the earnings / profitability of any of the
Participating Companies; and

(l)                                     any
other change in policies, plans or operations of any of the Participating
Companies.

9.7                                              Non-
Competition: While the Option Grantee is employed by a  Participating Company and for a period of two
(2) years after the termination date of the his or her employment for any
reason with such Participating Company, the Option Grantee shall not, without
the prior written consent of the Participating Company, directly or indirectly,
for himself/  herself or for any other
person, whether as principal, agent or employee, or through any corporation,
partnership or other entity (including without limitation, a sole
proprietorship), (i) solicit, sell or perform the same or similar services as
then provided by or available from any Participating Company for any of  the Participating Company’s customers or
active  prospects as of the date of
expiration or termination of his/her employment , (ii) solicit any person who
was an Employee or consultant of any Participating Company at any time during
the employment of the Option Grantee by a Participating Company to leave the
employment thereof, (iii) induce or attempt to induce any client of any
Participating Company to reduce such client’s / customers / accounts or
prospects of contractual activity with any Participating Company, (iv) solicit
business or enter into any contractual relationship including seeking
employment or serving as

 12
 

 
  

 

a consultant to any client  or
active prospective client of any Participating Company as of the date of
termination in any capacity which is competitive with or in any way adversely
affects  any  Participating Company’s business interests. .

9.8                                             In
connection with his / her employment and during the term of his  / her employment the Option Grantee undertakes
to disclose and assign to the relevant Participating Company as its exclusive
property, all developments developed or conceived by the Option Grantee. 

9.9                                            The
Option Grantee hereby agrees to abide by the rules and guidelines framed by the
Compensation Committee from time to time including rules and guidelines to
prevent Insider Trading in the Shares of the company.

9.10                                                    The
Option Grantee confirms that he / she shall comply with the various policies of
any and all of the Participating Companies as may be notified or amended from
time to time.

9.11                                                    The
Option Grantee further acknowledges and agrees that the obligations contained
in this Clause 9 are in addition to and not in substitution of any other
obligations which the Option Grantee may have agreed to do in any other
agreements or writings. The Option Grantee further confirms that he/she has
read and understood the provisions of this Clause 9, and sought legal advice
thereon and will not seek to challenge or dispute the provisions of this Clause 9.

9.12                                                  Any
breach, dispute or challenge of any of the above clauses shall apart from
automatically effecting a cancellation of the Employee Stock Option granted
under this Option Agreement also be a

 13
 

 
  

 

ground for the relevant Participating Company to proceed
against the Option  Grantee  by way of suitable legal action including
damages.

10.                                                       Termination
of the Employees Stock Option: The Employee Stock Option shall terminate
and may no longer be exercised on the earlier of (a) the expiry of the Exercise
Period as stipulated in Schedule I hereto,or (b) upon the occurrence of any of
events as stipulated in Clauses 7 (a) to (g) 
and expiry of the stipulated time period in each of the sub-clauses. 

11.                                                       Leave
of absence: For the purposes of the Plan and this Option Agreement, the
Option Grantee’s Service with a Participating Company shall not be deemed to
terminate if the Option Grantee takes any sick leave or any other bonafide
leave of absence approved by the respective Participating Company of 90
(ninety) days or less.]However, in the event of leave of absences in excess of
90 (ninety) days, then such leave of absence will not be treated as continuous
service by an Option Grantee for the purpose of the Plan and this Option
Agreement. 

12.                                                      No
guarantee of continued service: The Option Grantee acknowledges and agrees
that the Vesting of Equity Shares / ADRs pursuant to the Schedule to the Plan
(as annexed hereto) is earned only by continuing as an Employee at the will of
the relevant Participating Company. The Option Grantee further acknowledges and
agrees that this Option Agreement, the transactions completed hereunder and the
schedule as annexed hereto do not constitute an express or implied promise of
continued employment of the Option Grantee for the Vesting Period, or for any
period at all, and shall not interfere with the

 14
 

 
  

 

relevant Participating Company’s right to suspend,
retrench, discipline or terminate the Option Grantee’s relationship as an
Employee at any time with or without cause. 

13.                                                      Rights
as a shareholder or an Employee: The Option Grantee shall have no rights as
a shareholder with respect to any Equity Shares / rights as an ADR holder with
respect to any ADRs, covered by the Employee Stock Option until the date of
allotment of the Equity Shares / ADRs for which the Employee Stock Option has
been Exercised (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company). No adjustment
shall be made for dividend distributions or other rights for which the record
date is prior to the date of such allotment. Nothing in this Option Agreement
shall confer upon an Option Grantee any right to continue in the Service of a
Participating Company or interfere in any way with any right of a Participating
Company qua an Option Grantee’s Service as an Employee, as the case may be, at
any time.

14.                                                    Binding
agreement: Subject to the restrictions on transfer set forth herein, this
Option Agreement shall inure to the benefit of and be binding upon the parties
hereto and their respective heirs, executors, administrators, successors and
assigns.

15.                                                    Termination
or amendment of  Option Agreement:
Subject to compliance with Applicable Laws, the Board may terminate or amend
the Plan or this  Option Agreement at any
time.

16.                                                     Integrated
Agreement: This Option Agreement and the Plan constitute the entire
understanding and agreement of the Option Grantee and the Participating Company
with respect to the

 15
 

 
  

 

subject matter contained herein or therein, and there
are no other agreements, understandings, restrictions, reorientations, or
warranties as amongst the Option Grantee and the Participating Company with
respect to such subject matter other than those as are expressly set forth or
provided for herein or therein. To the extent contemplated herein or therein,
the provisions of the Plan and this Option Agreement shall survive any exercise
of the Employee Stock Option and shall remain in full force and effect. 

17.                                                        Governing
Law and Jurisdiction: 

17.1                                                    The
terms and conditions of this Agreement shall be governed by and construed in
accordance with the laws of India;

17.2                                                   The
High Court of Mumbai shall have jurisdiction in respect of any and all matters,
disputes or differences arising in relation to or out of this Option Agreement
and the Company and all Employees shall submit themselves to the jurisdiction
of the High Court of Mumbai in connection with this Option Agreement.

17.3                                                  Nothing
in this Clause will however limit the right of the Company to bring proceedings
against any Employee in connection with this Option Agreement:

(i)                                     in
any other court of competent jurisdiction; or 

(ii)                                  concurrently
in more than one jurisdiction.

18.                                                      Upon
the Option Grantee’s signature and the signature of the Company’s
representative below, the Option Grantee and the Company agree that this
Employee Stock Option is granted and governed by the terms and conditions of
the Plan and this Option

 16
 

 
  

 

Agreement and that the
Option Grantee has reviewed the Plan and this Option Agreement in their
entirety and has had an opportunity to obtain the advice of counsel prior to
executing this Option Agreement.  The
Option Grantee hereby further confirms that having fully understood all the
provisions of the Plan and this Option Agreement and agrees to accept as binding,
conclusive and final all decisions or interpretations of the Compensation
Committee upon any and all questions relating to the Plan and/or the Option
Agreement.  The Option Grantee further
agrees to notify the Company of all changes of its residential address.  

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (Signature)

  	
   

  	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  For Patni Computer Systems Limited

  	
   

  	
   

  	
   

  	
   

  
	
  Authorised Signatory

  	
   

  	
   

  	
  (Name of Option
  Grantee)

  	
   

  

 

 17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]