Document:

EX 10.3 Master Confirmation and Supplemental Confirmation with Goldman, Sachs

    
EXHIBIT 10.3

GOLDMAN, SACHS & CO. | 200 WEST STREET | NEW YORK, NEW YORK 10282-2198 | TEL:  212-902-1000
Opening Transaction
	
		
	

To:
	

NVIDIA Corporation
2701 San Tomas Expressway
Santa Clara, California 95050

	A/C:
	46,105,524

	From:
	Goldman, Sachs & Co.

	Re:
	Accelerated Stock Buyback

	Ref. No:
	As provided in the Supplemental Confirmation

	Date:
	May 14, 2013

This master confirmation (this “Master Confirmation”), dated as of May 14, 2013 is intended to set forth certain terms and provisions of certain Transactions (each, a “Transaction”) entered into from time to time between Goldman, Sachs & Co. (“GS&Co.”) and NVIDIA Corporation (“Counterparty”).  This Master Confirmation, taken alone, is neither a commitment by either party to enter into any Transaction nor evidence of a Transaction.  The additional terms of any particular Transaction shall be set forth in a Supplemental Confirmation in the form of Schedule A hereto (a “Supplemental Confirmation”), which shall reference this Master Confirmation and supplement, form a part of, and be subject to this Master Confirmation.  This Master Confirmation and each Supplemental Confirmation together shall constitute a “Confirmation” as referred to in the Agreement specified below.
The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc., are incorporated into this Master Confirmation.  This Master Confirmation and each Supplemental Confirmation evidence a complete binding agreement between Counterparty and GS&Co. as to the subject matter and terms of each Transaction to which this Master Confirmation and such Supplemental Confirmation relate and shall supersede all prior or contemporaneous written or oral communications with respect thereto.
This Master Confirmation and each Supplemental Confirmation supplement, form a part of, and are subject to an agreement in the form of the 1992 ISDA Master Agreement (Multicurrency-Cross Border) (the “Agreement”) as if GS&Co. and Counterparty had executed the Agreement on the date of this Master Confirmation (but without any Schedule except for (i) the election of Loss and Second Method, New York law (without reference to its choice of laws doctrine other than Title 14 of Article 5 of the New York General Obligations Law) as the governing law and US Dollars (“USD”) as the Termination Currency, (ii) the election that subparagraph (ii) of Section 2(c) will not apply to the Transactions, (iii) the replacement of the word “third” in the last line of Section 5(a)(i) with the word “first,” (iv) the election that the “Cross Default” provisions of Section 5(a)(vi) shall apply to both GS&Co. and Counterparty, with a “Threshold Amount” of USD 50 million; provided that (a) the phrase “or becoming capable at such time of being declared” shall be deleted from clause (1) of Section 5(a)(vi) of the Agreement, and (b) the following language shall be added to the end thereof: “Notwithstanding the foregoing, a default under subsection (2) hereof shall not constitute an Event of Default if (x) the default was caused solely by error or omission of an administrative or operational nature; (y) funds were available to enable the party to make the payment when due; and (z) the payment is made within two Local Business Days of such party's receipt of written notice of its failure to pay.”, (v) the designation of the General Guarantee Agreement of The Goldman Sachs Group, Inc. (“GS Group”) dated January 30, 2006 in favor of each person to whom GS&Co. may owe any Obligations (as defined in the General Guarantee Agreement) and filed as Exhibit 10.45 to GS Group's Annual Report on Form 10-K for the fiscal year ended November 25, 2005 and any successor guarantee by GS Group in favor of each person to whom GS&Co. may owe any Obligations (as defined in the General Guarantee Agreement) as a Credit Support Document under the Agreement and (vi) the designation of GS Group as a Credit Support Provider in relation to GS&Co. under the Agreement). 
The Transactions shall be the sole Transactions under the Agreement.  If there exists any ISDA Master Agreement between GS&Co. and Counterparty or any confirmation or other agreement between GS&Co. and Counterparty pursuant to which an ISDA Master Agreement is deemed to exist between GS&Co. and Counterparty, then notwithstanding anything to the contrary in such ISDA Master Agreement, such confirmation or agreement or any other agreement to which GS&Co. and Counterparty are parties, the Transactions shall not be considered Transactions under, or otherwise governed by, such existing or deemed ISDA Master Agreement.

All provisions contained or incorporated by reference in the Agreement shall govern this Master Confirmation and each Supplemental Confirmation except as expressly modified herein or in the related Supplemental Confirmation. 
If, in relation to any Transaction to which this Master Confirmation and a Supplemental Confirmation relate, there is any inconsistency between the Agreement, this Master Confirmation, any Supplemental Confirmation and the Equity Definitions, the following will prevail for purposes of such Transaction in the order of precedence indicated: (i) such Supplemental Confirmation; (ii) this Master Confirmation; (iii) the Equity Definitions; and (iv) the Agreement.

		
	1.
	Each Transaction constitutes a Share Forward Transaction for the purposes of the Equity Definitions.  Set forth below are the terms and conditions that, together with the terms and conditions set forth in the Supplemental Confirmation relating to any Transaction, shall govern such Transaction.

General Terms:
		
	Trade Date:
	For each Transaction, as set forth in the related Supplemental Confirmation.

		
	Buyer:
	Counterparty

		
	Seller:
	GS&Co.

		
	Shares:
	Common stock, par value $0.001 per share, of Counterparty (Ticker: NVDA)

		
	Exchange:
	NASDAQ Global Select Market

		
	Related Exchange(s):
	All Exchanges.

Prepayment/Variable 
		
	Obligation:
	Applicable

		
	Prepayment Amount:
	For each Transaction, as set forth in the related Supplemental Confirmation.

		
	Prepayment Date:
	For each Transaction, as set forth in the related Supplemental Confirmation.

		
	Premium:  
	For each Transaction, as set forth in the related Supplemental Confirmation.

		
	Reference Amount:
	For any Transaction, the sum of the Prepayment Amount and the Premium for such Transaction.

Counterparty Additional 
		
	Payment Amount: 
	For each Transaction, as set forth in the Supplemental Confirmation.  Counterparty shall pay to GS&Co. the Counterparty Additional Payment Amount, if any, on the Counterparty Additional Payment Date.

Counterparty Additional 
		
	Payment Date: 
	Three (3) Exchange Business Days following the Trade Date.

Valuation:
		
	VWAP Price:
	For any Exchange Business Day, as determined by the Calculation Agent based on the NASDAQ 10b-18 Volume Weighted Average Price per Share for the regular trading session (including any extensions thereof) of the Exchange on such Exchange Business Day (without regard to pre-open or after hours trading outside of such regular trading session for such Exchange Business Day), as published by Bloomberg at 4:15 p.m. New York time (or 15 minutes following the end of any extension of the regular trading session) on such Exchange Business Day, on Bloomberg page “NVDA Q <Equity> AQR_SEC” (or any successor thereto), or if such price is not so reported on such Exchange Business Day for any reason or is, in the Calculation Agent's reasonable discretion, manifestly erroneous, such VWAP Price shall be as reasonably determined by the Calculation Agent using a volume-weighted method.  For purposes of calculating the VWAP Price for such Exchange Business Day, the Calculation Agent will include only those trades that are reported during the period of time during which Counterparty could purchase its own shares under Rule 10b-18(b)(2) and are effected pursuant to the conditions of Rule 10b-18(b)(3), each under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (such trades, “Rule 10b-18 eligible transactions”).

		
	Forward Price:
	The average of the VWAP Prices for the Exchange Business Days in the Calculation Period, subject to “Valuation Disruption” below.

		
	Calculation Period:
	The period from and including the Calculation Period Start Date to and including the Termination Date.

		
	Calculation Period Start Date:
	For each Transaction, as set forth in the related Supplemental Confirmation.

		
	Termination Date:
	The Scheduled Termination Date; provided that GS&Co. shall have the right to designate any Exchange Business Day on or after the First Acceleration Date to be the Termination Date, in whole or in part (in each case, an “Accelerated Termination Date”), by delivering notice to Counterparty of any such designation prior to 11:59 p.m. New York City time on the specified Accelerated Termination Date.

In the case of any acceleration of the Termination Date in part for any Transaction (a “Partial Acceleration”), (i) GS&Co. shall specify in its written notice to Counterparty accelerating the Termination Date the corresponding percentage of the Reference Amount for such Transaction that is subject to valuation on such Termination Date, (ii) such portion of the Reference Amount for such Transaction that is subject to valuation on such Termination Date shall not be less than the product of (x) 25% and (y) such Reference Amount (the “Minimum Partial Acceleration Amount”); (provided that, for the avoidance of doubt, if the remaining portion of such Transaction corresponds to the Reference Amount of less than the Minimum Partial Acceleration Amount, GS&Co. shall be entitled to accelerate such Transaction with respect to such full amount) and (iii) the Calculation Agent shall adjust the terms of such Transaction as it deems appropriate in order to take into account the occurrence of such Partial Acceleration (including cumulative adjustments to take into account all Partial Accelerations that occur during the term of such Transaction).
		
	Scheduled Termination Date:
	For each Transaction, as set forth in the related Supplemental Confirmation, subject to postponement as provided in “Valuation Disruption” below.

		
	First Acceleration Date:
	For each Transaction, as set forth in the related Supplemental Confirmation.

		
	Valuation Disruption:
	The definition of “Market Disruption Event” in Section 6.3(a) of the Equity Definitions is hereby amended by deleting the words “at any time during the one-hour period that ends at the relevant Valuation Time, Latest Exercise Time, Knock-in Valuation Time or Knock-out Valuation Time, as the case may be” and inserting the words “at any time on any Scheduled Trading Day during the Calculation Period or Settlement Valuation Period” after the word “material,” in the third line thereof.

Section 6.3(d) of the Equity Definitions is hereby amended by deleting the remainder of the provision following the term “Scheduled Closing Time” in the fourth line thereof.
Notwithstanding anything to the contrary in the Equity Definitions, to the extent that a Disrupted Day occurs (other than a Disrupted Day that is deemed not to be a Disrupted Day pursuant to the immediately following paragraph) (i) in the Calculation Period, the Calculation Agent may, in its good faith and commercially reasonable discretion, postpone the Scheduled Termination Date by one Scheduled Trading Day, or (ii) in the Settlement Valuation Period, the Calculation Agent may extend the Settlement Valuation Period by one Scheduled Trading Day.  If any such Disrupted Day is a Disrupted Day because of a Market Disruption Event (or a deemed Market Disruption Event as provided herein), the Calculation Agent shall determine whether (i) such Disrupted Day is a Disrupted Day in full, in which case the VWAP Price for such Disrupted Day shall not be included for purposes of determining the Forward Price or the Settlement Price, as the case may be, or (ii) such Disrupted Day is a Disrupted Day only in part, in which case the VWAP Price for such Disrupted Day shall be determined by the Calculation Agent based on Rule 10b-18 eligible transactions in the Shares on such Disrupted Day taking into account the nature and duration of the relevant Market Disruption Event, and the weighting of the VWAP Price for the relevant Exchange Business Days during the Calculation Period or the Settlement Valuation Period, as the case may be, shall be adjusted in a commercially reasonable manner by the Calculation Agent for purposes of determining the Forward Price or the Settlement Price, as the case may be, with such adjustments based on, among other factors, the duration of any Market Disruption Event and the volume, historical trading patterns and price of the Shares.  Any Exchange Business Day on which, as of the date hereof, the Exchange is scheduled to close prior to its normal close of trading shall be deemed not to be an Exchange Business Day; if a closure of the Exchange prior to its normal close of trading on any Exchange Business Day is scheduled following the date hereof, then such Exchange Business Day shall be deemed to be a Disrupted Day in full.
If a Disrupted Day occurs during the Calculation Period or the Settlement Valuation Period, as the case may be, and each of the nine immediately following Scheduled Trading Days is a Disrupted Day, then the Calculation Agent, in its good faith and commercially reasonable discretion, may deem such ninth Scheduled Trading Day to be an Exchange Business Day that is not a Disrupted Day, and determine the VWAP Price for such ninth Scheduled Trading Day using its good faith estimate of the value of the Shares on such ninth Scheduled Trading Day based on the volume, historical trading patterns and price of the Shares and such other factors as it deems appropriate.  Notwithstanding the foregoing, if the period of Disrupted Days is due to a Regulatory Disruption relating to the occurrence of a “restricted period” during the Regulation M Period (as defined below), the Calculation Agent may treat the occurrence of the final Disrupted Day in such period as an Additional Termination Event with Counterparty as the sole Affected Party and the Transactions hereunder as the Affected Transactions.
Settlement Terms:    
		
	Settlement Procedures:
	If the Number of Shares to be Delivered is positive, Physical Settlement shall be applicable; provided that GS&Co. does not, and shall not, make the agreement or the representations set forth in Section 9.11 of the Equity Definitions related to the restrictions imposed by applicable securities laws with respect to any Shares delivered by GS&Co. to Counterparty under any Transaction. If the Number of Shares to be Delivered is negative, then the Counterparty Settlement Provisions in Annex A shall apply. 

Number of Shares
		
	to be Delivered:
	A number of Shares equal to (x)(a) the Reference Amount divided by (b) the Divisor Amount minus (y) the number of Initial Shares. 

		
	Divisor Amount:
	The greater of (i) the Forward Price and (ii) $1.00.  

		
	Excess Dividend Amount:
	For the avoidance of doubt, all references to the Excess Dividend Amount shall be deleted from Section 9.2(a)(iii) of the Equity Definitions.

		
	Settlement Date:
	If the Number of Shares to be Delivered is positive, the earlier of (i) the date that is one Settlement Cycle immediately following the Termination Date and (ii) first Clearance System Business Day immediately following the Scheduled Termination Date.

		
	Settlement Currency:
	USD

		
	Initial Share Delivery:
	GS&Co. shall deliver a number of Shares equal to the Initial Shares to Counterparty on the Initial Share Delivery Date in accordance with Section 9.4 of the Equity Definitions, with the Initial Share Delivery Date deemed to be a “Settlement Date” for purposes of such Section 9.4. 

		
	Initial Share Delivery Date:
	For each Transaction, as set forth in the related Supplemental Confirmation.

		
	Initial Shares:
	For each Transaction, as set forth in the related Supplemental Confirmation.

Share Adjustments:
		
	Potential Adjustment Event:
	Notwithstanding anything to the contrary in Section 11.2(e) of the Equity Definitions, an Extraordinary Dividend shall not constitute a Potential Adjustment Event.

It shall constitute an additional Potential Adjustment Event if the Scheduled Termination Date for any Transaction is postponed pursuant to “Valuation Disruption” above, in which case the Calculation Agent may, in its commercially reasonable discretion, adjust any relevant terms of any such Transaction as necessary to preserve as nearly as practicable the fair value of such Transaction to GS&Co. prior to such postponement.  
		
	Extraordinary Dividend:
	For any calendar quarter, any dividend or distribution on the Shares with an ex-dividend date occurring during such calendar quarter (other than any dividend or distribution of the type described in Section 11.2(e)(i) or Section 11.2(e)(ii)(A) of the Equity Definitions) (a “Dividend”) the amount or value of which (as determined by the Calculation Agent), when aggregated with the amount or value (as determined by the Calculation Agent) of any and all previous Dividends with ex-dividend dates occurring in the same calendar quarter, exceeds the Ordinary Dividend Amount.

		
	Ordinary Dividend Amount:
	For each Transaction, as set forth in the related Supplemental Confirmation

		
	Method of Adjustment:
	Calculation Agent Adjustment

Early Ordinary Dividend 
		
	Payment:
	If an ex-dividend date for any Dividend that is not an Extraordinary Dividend occurs during any calendar quarter occurring (in whole or in part) during the Relevant Period (as defined below) and is prior to the Scheduled Ex-Dividend Date for such calendar quarter, the Calculation Agent shall make such adjustment to the exercise, settlement, payment or any other terms of the relevant Transaction as the Calculation Agent determines appropriate to account for the economic effect on the Transaction of such event. 

Scheduled Ex-Dividend
		
	Dates:
	For each Transaction for each calendar quarter, as set forth in the related Supplemental Confirmation.

Extraordinary Events:
		
	Merger Event:
	Applicable; provided that (i) Section 12.1(l) of the Equity Definitions shall be amended (x) by deleting the parenthetical in the third line thereof, (y) by replacing “that” in the third line thereof with “whether or not such announcement” and (z) by adding immediately after the words “Merger Event” in the third line thereof “, and any publicly announced change or amendment to such an announcement (including the announcement of an abandonment of such intention)” and (ii) Sections 12.2(b) and 12.2(e) of the Equity Definitions shall each be amended by replacing each occurrence of the words “Merger Date” by “Announcement Date.”

Consequences of 
Merger Event:
		
	
	

		
	(a) Share-for-Share:
	Modified Calculation Agent Adjustment 

		
	(b) Share-for-Other:
	Modified Calculation Agent Adjustment

		
	(c) Share-for-Combined:
	Modified Calculation Agent Adjustment

		
	 Tender Offer:
	Applicable; provided that (i) Section 12.1(l) of the Equity Definitions shall be amended (x) by deleting the parenthetical in the fifth line thereof, (y) by replacing “that” in the fifth line thereof with “whether or not such announcement” and (z) by adding immediately after the words “Tender Offer” in the fifth line thereof “, and any publicly announced change or amendment to such an announcement (including the announcement of an abandonment of such intention)”; (ii) Sections 12.3(a) and 12.3(d) of the Equity Definitions shall each be amended by replacing each occurrence of the words “Tender Offer Date” by “Announcement Date”; and (iii) Section 12.1(d) of the Equity Definitions shall be amended by replacing “10%” in the third line thereof with “20%”.

Consequences of 
Tender Offers:    
		
	
	

		
	(a) Share-for-Share:
	Modified Calculation Agent Adjustment 

		
	(b) Share-for-Other:
	Modified Calculation Agent Adjustment 

		
	(c) Share-for-Combined:
	Modified Calculation Agent Adjustment 

Notwithstanding the foregoing, and without limiting the generality of clause (ii) of Section 12.3(d) of the Equity Definitions, if, in connection with any Tender Offer, GS&Co. concludes, in its good-faith and commercially reasonable discretion upon the advice of counsel, that (i) it is advisable with respect to any legal, regulatory or self-regulatory requirements or related policies and procedures generally applicable to transactions of the type of the Transactions contemplated hereby and consistently applied (whether or not such policies or procedures are imposed by law or have been voluntarily adopted generally by GS&Co.) to cancel any Transaction, or (ii) it is no longer advisable , in light of any legal, regulatory or self-regulatory requirements or related policies and procedures generally applicable to transactions of the type of the Transactions contemplated hereby and consistently applied (whether or not such policies or procedures are imposed by law or have been voluntarily adopted by GS&Co.), to purchase Shares in connection with hedging any Transaction, then, in each case, GS&Co. may elect that Cancellation and Payment shall apply to such Transaction. 
Any adjustment to the terms of any Transaction, and the determination of any amounts due upon termination of such Transaction as a result of a Merger Event or Tender Offer shall take into account, and shall not duplicate the economic effects of, any extension or other adjustment hereunder (including, without limitation, any adjustment in Section 9 below). 
Nationalization, 
		
	Insolvency or Delisting:
	Cancellation and Payment; provided that in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it shall also constitute a Delisting if the Exchange is located 

in the United States and the Shares are not immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, NYSE MKT, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors); if the Shares are immediately re-listed, re-traded or re-quoted on any such exchange or quotation system, such exchange or quotation system shall be deemed to be the Exchange.
Additional Disruption Events:

		
	(a)
	Change in Law:        Applicable; provided that Section 12.9(a)(ii) of the Equity Definitions is hereby amended by (i) replacing the phrase “the interpretation” in the third line thereof with the phrase “, or public announcement of, the formal or informal interpretation” and (ii) by replacing the word “Shares” where it appears in clause (X) thereof with the words “Hedge Position”; provided further that (i) any determination as to whether (A) the adoption of or any change in any applicable law or regulation (including, for the avoidance of doubt and without limitation, (x) any tax law or (y) adoption or promulgation of new regulations authorized or mandated by existing statute) or (B) the promulgation of or any change in the interpretation by any court, tribunal or regulatory authority with competent jurisdiction of any applicable law or regulation (including any action taken by a taxing authority), in each case, constitutes a “Change in Law” shall be made without regard to Section 739 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 or any similar legal certainty provision in any legislation enacted, or rule or regulation promulgated, on or after the Trade Date, and (ii) Section 12.9(a)(ii) of the Equity Definitions is hereby amended by replacing the parenthetical beginning after the word “regulation” in the second line thereof the words “(including, for the avoidance of doubt and without limitation, (x) any tax law or (y) adoption or promulgation of new regulations authorized or mandated by existing statute)”.

		
	(b)
	Failure to Deliver:        Not Applicable

		
	(c)
	Insolvency Filing:        Applicable

		
	(d)
	Loss of Stock Borrow:        Applicable

Maximum Stock Loan Rate:    300 basis points per annum
Hedging Party:            GS&Co.

		
	(e)
	Increased Cost of Stock Borrow:    Applicable

Initial Stock Loan Rate:        25 basis points per annum
Hedging Party:            GS&Co.
Determining Party:        GS&Co.

		
	Additional Termination Event(s):
	Notwithstanding anything to the contrary in the Equity Definitions, if, as a result of an Extraordinary Event, any Transaction would be cancelled or terminated (whether in whole or in part) pursuant to Article 12 of the Equity Definitions, an Additional Termination Event (with such terminated Transaction(s) (or portions thereof) being the Affected Transaction(s) and Counterparty being the sole Affected Party) shall be deemed to occur, and, in lieu of Sections 12.7, 12.8 and 12.9 of the Equity Definitions, Section 6 of the Agreement shall apply to such Affected Transaction(s). 

		
	
	The declaration by the Issuer of any Extraordinary Dividend, the ex-dividend date for which occurs or is scheduled to occur during the Relevant Dividend Period, will constitute an Additional Termination Event, with Counterparty as the sole Affected Party and all Transactions hereunder as the Affected Transactions.

		
	
	

		
	Relevant Dividend Period:
	The period from and including the first day of the Calculation Period to and including the Relevant Dividend Period End Date.

		
	
	Relevant Dividend Period 

		
	End Date:
	If Annex A applies, the last day of the Settlement Valuation Period; otherwise, the Termination Date (or, if any Partial Acceleration(s) occur, the Termination Date corresponding to the last Partial Acceleration).

Non-Reliance/Agreements and
Acknowledgements Regarding 
Hedging Activities/Additional 
Acknowledgements:        Applicable

		
	Transfer:
	Notwithstanding anything to the contrary in the Agreement, GS&Co. may assign, transfer and set over all rights, title and interest, powers, privileges and remedies of GS&Co. under any Transaction, in whole, but not in part, to an affiliate of GS&Co. whose obligations under such Transaction are guaranteed by GS Group without the consent of Counterparty; provided that prior written notice of such transfer is provided to Counterparty, no Event of Default or Termination Event with respect to which GS&Co. (or the transferee) is the Defaulting Party or an Affected Party, as the case may be, is then continuing or would result therefrom, and Counterparty is not, and would not at the time of transfer reasonably be expected to be, required to make a payment to GS&Co. (or the transferee) in respect of an Indemnifiable Tax as a result of such transfer.

		
	GS&Co. Payment Instructions:
	Chase Manhattan Bank New York

For A/C Goldman, Sachs & Co.
A/C #930-1-011483
ABA: 021-000021

Counterparty's Contact Details
		
	for Purpose of Giving Notice:
	To be provided by Counterparty

    
GS&Co.'s Contact Details for
		
	Purpose of Giving Notice:
	Goldman, Sachs & Co.

555 California Street, 42nd Floor
San Francisco, CA 94104
Attention: Vijay Culas, Equity Capital Markets
Telephone: 415-249-7383

With a copy to:

Attention: Kevin Castellano
Equity Capital Markets
Phone: 415-249-7384
Fax: 646-769-7571
E-mail: kevin.castellano@gs.com

And email notification to the following address:
Eq-derivs-notifications@am.ibd.gs.com

		
	2.
	Calculation Agent.    GS&Co.; provided that, upon receipt of written request from Counterparty, Calculation Agent shall promptly (but in no event later than within five (5) Exchange Business Days from the receipt of such request) provide Counterparty with a written explanation describing in reasonable detail any calculation, adjustment or determination made by it (including any quotations, market data or information from external sources used in making such calculation, adjustment or determination, as the case may be, but without disclosing GS&Co.'s proprietary models or other information that is subject to contractual, legal or regulatory obligations to not disclose such information); and provided further that, following the occurrence of an Event of Default pursuant to Section 5(a)(vii) of the Agreement with respect to which GS&Co. is the Defaulting Party, Counterparty shall have the right to designate a nationally recognized third-party dealer in over-the-counter corporate equity derivatives to act, during the period commencing on the date such Event of Default occurred and ending on the Early Termination Date with respect to such Event of Default, as the Calculation Agent. 

3.Additional Mutual Representations, Warranties and Covenants of Each Party.  In addition to the representations, warranties and covenants in the Agreement, each party represents, warrants and covenants to the other party that:

(a)Eligible Contract Participant.  It is an “eligible contract participant”, as defined in the U.S. Commodity Exchange Act (as amended), and is entering into each Transaction hereunder as principal (and not as agent or in any other capacity, fiduciary or otherwise) and not for the benefit of any third party.

(b)Accredited Investor.  Each party acknowledges that the offer and sale of each Transaction to it is intended to be exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), by virtue of Section 4(2) thereof.  Accordingly, each party represents and warrants to the other that (i) it has the financial ability to bear the economic risk of its investment in each Transaction and is able to bear a total loss of its investment, (ii) it is an “accredited investor” as that term is defined under Regulation D under the Securities Act and (iii) the disposition of each Transaction is restricted under this Master Confirmation, the Securities Act and state securities laws.

4.Additional Representations, Warranties and Covenants of Counterparty.  In addition to the representations, warranties and covenants in the Agreement, Counterparty represents, warrants and covenants to GS&Co. that: 
(a)    As of the Trade Date, Counterparty is not engaged in an “issuer tender offer” as such term is defined in Rule 13e-4 under the Exchange Act, nor is it aware of any third party tender offer with respect to the Shares within the meaning of Rule 13e-1 under the Exchange Act.
(b)    It is not entering into any Transaction (i) on the basis of, and is not aware of, any material non-public information with respect to the Shares (ii) in anticipation of, in connection with, or to facilitate, a distribution of its securities, a self-tender offer or a third-party tender offer or (iii) to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for the Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for the Shares).
(c)    Each Transaction is being entered into pursuant to a publicly disclosed Share buy-back program and its Board of Directors has approved the use of derivatives to effect the Share buy-back program. 
(d)    Without limiting the generality of Section 13.1 of the Equity Definitions, Counterparty acknowledges that neither GS&Co. nor any of its affiliates is making any representations or warranties or taking any position or expressing any view with respect to the treatment of any Transaction under any accounting standards including ASC Topic 260, Earnings Per Share, ASC Topic 815, Derivatives and Hedging, or ASC Topic 480, Distinguishing Liabilities from Equity and ASC 815-40, Derivatives and Hedging - Contracts in Entity's Own Equity.
(e)    As of (i) the date hereof and (ii) the Trade Date for each Transaction hereunder, Counterparty is in compliance with its reporting obligations under the Exchange Act and its most recent Annual Report on Form 10-K, together with all reports subsequently filed by it pursuant to the Exchange Act, taken together and as amended and supplemented to the date of this representation, do not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
(f)    Counterparty shall report each Transaction as required under the Exchange Act and the rules and regulations thereunder.
(g)    The Shares are not, and Counterparty will not cause the Shares to be, subject to a “restricted period” (as defined in Regulation M promulgated under the Exchange Act) at any time during any Regulation M Period (as defined below) for any Transaction unless Counterparty has provided written notice to GS&Co. of such restricted period not later than the Scheduled Trading Day immediately preceding the first day of such “restricted period”; Counterparty acknowledges that any such notice may cause a Disrupted Day to occur pursuant to Section 5 below; accordingly, Counterparty acknowledges that its delivery of such notice must comply with the standards set forth in Section 6 below; “Regulation M Period” means, for any Transaction, (i) the Relevant Period (as defined below) and (ii) the Settlement Valuation Period, if any, for such Transaction. “Relevant Period” means, for any Transaction, the period commencing on the first day of the Calculation Period for such Transaction and ending on the earlier of (i) the Scheduled Termination Date and (ii) the last Additional Relevant Day (as specified in the related Supplemental Confirmation) for such Transaction, or such earlier day as elected by GS&Co. and communicated to Counterparty on such day (or, if later, the First Acceleration Date without regard to any acceleration thereof pursuant to “Special Provisions for Acquisition Transaction Announcements” below).

(h)    As of the Trade Date and the Prepayment Date, Counterparty is not “insolvent” (as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”)) and Counterparty would be able to purchase a number of Shares with a value equal to the Reference Amount in compliance with the laws of the jurisdiction of Counterparty's incorporation.

(i)    Counterparty is not and, after giving effect to any Transaction, will not be, required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended. 

(j)    [RESERVED] 
(k)    Counterparty has not and will not enter into agreements similar to the Transactions described herein where any initial hedge period, calculation period, relevant period or settlement valuation period (each however defined) in such other transaction will overlap at any time (including as a result of extensions in such initial hedge period, calculation period, relevant period or settlement valuation period as provided in the relevant agreements) with any Relevant Period or, if applicable, any Settlement Valuation Period under this Master Confirmation.  In the event that the initial hedge period, relevant period, calculation period or settlement valuation period in any other similar transaction overlaps with any Relevant Period or, if applicable, Settlement Valuation Period under this Master Confirmation as a result of any postponement of the Scheduled Termination Date or extension of the Settlement Valuation Period pursuant to “Valuation Disruption” above, Counterparty shall promptly amend such transaction to avoid any such overlap. 

5.Regulatory Disruption.  In the event that GS&Co. concludes, in good faith and based on the advice of counsel, that it is advisable with respect to any legal, regulatory or self-regulatory requirements or related policies and procedures generally applicable to transactions of the type of the Transactions contemplated hereby and consistently applied (whether or not such policies or procedures are imposed by law or have been voluntarily adopted by GS&Co.), for it to refrain from or decrease any market activity on any Scheduled Trading Day or Days during the Calculation Period or, if applicable, the Settlement Valuation Period, GS&Co. may by written notice to Counterparty elect to deem that a Market Disruption Event has occurred and will be continuing on such Scheduled Trading Day or Days. 

6.10b5-1 Plan.  Counterparty represents, warrants and covenants to GS&Co. that:
(a)    Counterparty is entering into this Master Confirmation and each Transaction hereunder in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1 under the Exchange Act (“Rule 10b5-1”) or any other antifraud or anti-manipulation provisions of the federal or applicable state securities laws and that it has not entered into or altered and will not enter into or alter any “corresponding or hedging transaction” (within the meaning of Rule 10b5-1) or position with respect to the Shares.  Counterparty acknowledges that it is the intent of the parties that each Transaction entered into under this Master Confirmation comply with the requirements of paragraphs (c)(1)(i)(A) and (B) of Rule 10b5-1 and each Transaction entered into under this Master Confirmation shall be interpreted to comply with the requirements of Rule 10b5-1(c). 
(b)    Counterparty will not seek to control or influence GS&Co.'s decision to make any “purchases or sales” (within the meaning of Rule 10b5-1(c)(1)(i)(B)(3)) under any Transaction entered into under this Master Confirmation, including, without limitation, GS&Co.'s decision to enter into any hedging transactions.  Counterparty represents and warrants that it has consulted with its own advisors as to the legal aspects of its adoption and implementation of this Master Confirmation and each Supplemental Confirmation under Rule 10b5-1.
(c)    Counterparty acknowledges and agrees that any amendment, modification, waiver or termination of this Master Confirmation or the relevant Supplemental Confirmation must be effected in accordance with the requirements for the amendment or termination of a “plan” as defined in Rule 10b5-1(c).  Without limiting the generality of the foregoing, any such amendment, modification, waiver or termination shall be made in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b-5, and no such amendment, modification or waiver shall be made at any time at which Counterparty or any officer, director, manager or similar person of Counterparty is aware of any material non-public information regarding Counterparty or the Shares.

7.Counterparty Purchases.  Counterparty (or any “affiliated purchaser” as defined in Rule 10b-18 under the Exchange Act (“Rule 10b-18”)) shall not, without the prior written consent of GS&Co., directly or indirectly make any Rule 10b-18 purchases (as defined under Rule 10b-18(a)(13)) (“Rule 10b-18 Purchases”) of Shares (including by means of a derivative instrument), listed contracts on the Shares or securities that are convertible into, or exchangeable or exercisable for Shares or launch or effect any purchase of Shares pursuant to Rules 13e-1 or 13e-4 (or an exemption thereunder) under the Exchange Act or any tender offer subject to Section 14(d) or 14(e) of the Exchange Act (including, without limitation, any Rule 10b-18 purchases of blocks (as defined in Rule 10b-18)) during any Relevant Period or, if applicable, Settlement Valuation Period, except through GS&Co. 

8.Special Provisions for Merger Transactions.  Notwithstanding anything to the contrary herein or in the Equity Definitions: 

(a)    Counterparty agrees that it:
(i)will not during the period commencing on the Trade Date through the end of the Relevant Period or, if applicable, the Settlement Valuation Period for any Transaction make, or, to the extent within its control, permit to be made, any public announcement (as defined in Rule 165(f) under the Securities Act) of any Merger Transaction or proposed Merger Transaction that, in the reasonable judgment of GS&Co., causes Rule 10b-18 Purchases by or for Counterparty or any affiliated purchaser (as defined in Rule 10b-18) to be limited to purchases described in Rule 10b-18(a)(13)(iv)(B) (a “Public Announcement”) unless such Public Announcement is made prior to the opening or after the close of the regular trading session on the Exchange for the Shares;

(ii)shall promptly (but in any event prior to the next opening of the regular trading session on the Exchange) notify GS&Co. following any such Public Announcement that such Public Announcement has been made; and

(iii)shall promptly (but in any event prior to the next opening of the regular trading session on the Exchange) provide GS&Co. with written notice specifying (i) Counterparty's average daily Rule 10b-18 Purchases (as defined in Rule 10b-18) during the three full calendar months immediately preceding the announcement date that were not effected through GS&Co. or its affiliates and (ii) the number of Shares purchased pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act for the three full calendar months preceding the date of such Public Announcement.  Such written notice shall be deemed to be a certification by Counterparty to GS&Co. that such information is true and correct.  In addition, Counterparty shall promptly notify GS&Co. of the earlier to occur of the completion of the relevant Merger Transaction and the completion of the vote by target shareholders.  
(b)    Counterparty acknowledges that a Public Announcement may cause the terms of any Transaction to be adjusted or such Transaction to be terminated; accordingly, Counterparty acknowledges that in making any Public Announcement, it must comply with the standards set forth in Section 6 above. 
(c)    Upon the occurrence of any Public Announcement (whether made by Counterparty or a third party), GS&Co. shall (i) make adjustments in good faith and in a commercially reasonable manner to the terms of any Transaction as appropriate to account for the economic effect on the Transaction of such Public Announcement, including, without limitation, the Scheduled Termination Date or the Reference Amount, and/or suspend the Calculation Period and/or any Settlement Valuation Period and, in each case, determine the effective date of that adjustment, provided that in no event will the Scheduled Termination Date be postponed more than 9 Scheduled Trading Days, or (ii) if it determines that no such adjustment would produce a commercially reasonable result (including, without limitation, due to the inability to postpone the Scheduled Termination Date more than 9 Scheduled Trading Days), treat the occurrence of such Public Announcement as an Additional Termination Event with Counterparty as the sole Affected Party and the Transactions hereunder as the Affected Transactions and with the amount under Section 6(e) of the Agreement determined taking into account the fact that the Calculation Period or Settlement Valuation Period, as the case may be, had fewer Scheduled Trading Days than originally anticipated.
“Merger Transaction” means any merger, acquisition or similar transaction involving a recapitalization as contemplated by Rule 10b-18(a)(13)(iv) under the Exchange Act, other than any such transaction in which the consideration consists solely of cash and there is no valuation period.

9.Special Provisions for Acquisition Transaction Announcements.  (a)  If an Acquisition Transaction Announcement occurs on or prior to the Settlement Date for any Transaction, then the Calculation Agent shall make such adjustments to the exercise, settlement, payment or any other terms of such Transaction (including, without limitation, the Reference Amount and the Forward Price) as the Calculation Agent determines appropriate, at such time or at multiple times as the Calculation Agent determines appropriate, to account for the economic effect on such Transaction of such Acquisition Transaction Announcement (including, without limitation, adjustments to account for changes in volatility, stock loan rate and liquidity relevant to the Shares or to such Transaction).  If an Acquisition Transaction Announcement occurs after the Trade Date, but prior to the First Acceleration Date of any Transaction, the First Acceleration Date shall be the date of such Acquisition Transaction Announcement.  
    

(b)    “Acquisition Transaction Announcement” means (i) the announcement of an Acquisition Transaction, (ii) an announcement that Counterparty or any of its subsidiaries has entered into an agreement, a letter of intent or an understanding designed to result in an Acquisition Transaction, (iii) the announcement of the intention to solicit or enter into, or to explore strategic alternatives or other similar undertaking that may include, an Acquisition Transaction, (iv) any other similar announcement that in the reasonable judgment of the Calculation Agent could reasonably be expected to result in an Acquisition Transaction or (v) any announcement of any change or amendment to any previous Acquisition Transaction Announcement (including any announcement of the abandonment of any such previously announced Acquisition Transaction, agreement, letter of intent, understanding or intention). For the avoidance of doubt, announcements as used in the definition of Acquisition Transaction Announcement refer to any public announcement whether made by the Issuer or a third party.
(c)    “Acquisition Transaction” means (i) any Merger Event (for purposes of this definition the definition of Merger Event shall be read with the references therein to “100%” being replaced by “20%” and to “50%” by “75%” and without reference to the clause beginning immediately following the definition of Reverse Merger therein to the end of such definition), Tender Offer or Merger Transaction or any other transaction involving the merger of Counterparty with or into any third party (provided that, for purposes of this Section 9, the Merger Transaction or such other transaction involves, or relates to, a number of Shares that exceeds 20% of the number of outstanding Shares on the relevant date of announcement), (ii) the sale or transfer of all or substantially all of the assets of Counterparty, (iii) a recapitalization, reclassification, binding share exchange or other similar transaction, (iv) any acquisition, lease, exchange, transfer, disposition (including by way of spin-off or distribution) of assets (including any capital stock or other ownership interests in subsidiaries) or other similar event by Counterparty or any of its subsidiaries where the aggregate consideration transferable or receivable by or to Counterparty or its subsidiaries exceeds 25% of the market capitalization of Counterparty and (v) any transaction in which Counterparty or its board of directors has a legal obligation to make a recommendation to its shareholders in respect of such transaction (whether pursuant to Rule 14e-2 under the Exchange Act or otherwise).

		
	10.
	Acknowledgments.  (a) The parties hereto intend for:

(i)each Transaction to be a “securities contract” as defined in Section 741(7) of the Bankruptcy Code, a “swap agreement” as defined in Section 101(53B) of the Bankruptcy Code and a “forward contract” as defined in Section 101(25) of the Bankruptcy Code, and the parties hereto to be entitled to the protections afforded by, among other Sections, Sections 362(b)(6), 362(b)(17), 362(b)(27), 362(o), 546(e), 546(g), 546(j), 555, 556, 560 and 561 of the Bankruptcy Code;

(ii)the Agreement to be a “master netting agreement” as defined in Section 101(38A) of the Bankruptcy Code;

(iii)a party's right to liquidate, terminate or accelerate any Transaction, net out or offset termination values or payment amounts, and to exercise any other remedies upon the occurrence of any Event of Default or Termination Event under the Agreement with respect to the other party or any Extraordinary Event that results in the termination or cancellation of any Transaction to constitute a “contractual right” (as defined in the Bankruptcy Code); and

(iv)all payments for, under or in connection with each Transaction, all payments for the Shares (including, for the avoidance of doubt, payment of the Prepayment Amount) and the transfer of such Shares to constitute “settlement payments” and “transfers” (as defined in the Bankruptcy Code).
(b)     Counterparty acknowledges that:
(i)    during the term of any Transaction, GS&Co. and its affiliates may buy or sell Shares or other securities or buy or sell options or futures contracts or enter into swaps or other derivative securities in order to establish, adjust or unwind its hedge position with respect to such Transaction;
(ii)    GS&Co. and its affiliates may also be active in the market for the Shares and derivatives linked to the Shares other than in connection with hedging activities in relation to any Transaction, including acting as agent or as principal and for its own account or on behalf of customers;
(iii)    GS&Co. shall make its own determination as to whether, when or in what manner any hedging or market activities in Counterparty's securities shall be conducted and shall do so in a manner that it deems appropriate to hedge its price and market risk with respect to the Forward Price and the VWAP Price;

(iv)    any market activities of GS&Co. and its affiliates with respect to the Shares may affect the market price and volatility of the Shares, as well as the Forward Price and VWAP Price, each in a manner that may be adverse to Counterparty; and
(v)    each Transaction is a derivatives transaction in which it has granted GS&Co. an option;  GS&Co. may purchase shares for its own account at an average price that may be greater than, or less than, the price paid by Counterparty under the terms of the related Transaction.
(c)    Counterparty:
(a)has total assets of at least $50 million;

(b)is capable of evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities, and will exercise independent judgment in evaluating the recommendations of GS&Co. or its associated persons, unless it has otherwise notified GS&Co. in writing; and

(c)will notify GS&Co. if any of the statements contained in clause (i) or (ii) of this Section 12(c) ceases to be true.

11.No Collateral.  The parties hereto acknowledge that no Transaction hereunder is secured by any collateral that would otherwise secure the obligations of Counterparty herein or pursuant to the Agreement. 

12.Set-off.  (a)  The parties agree to amend Section 6 of the Agreement by adding a new Section 6(f) thereto as follows:
“(f)  Upon the occurrence of an Event of Default or Termination Event with respect to a party who is the Defaulting Party or the Affected Party (“X”), the other party (“Y”) will have the right (but not be obliged) without prior notice to X or any other person to set-off or apply any obligation of X owed to Y (or any Affiliate of Y) (whether or not matured or contingent and whether or not arising under the Agreement, and regardless of the currency, place of payment or booking office of the obligation) against any obligation of Y (or any Affiliate of Y) owed to X (whether or not matured or contingent and whether or not arising under the Agreement, and regardless of the currency, place of payment or booking office of the obligation).  Y will give notice to the other party of any set-off effected under this Section 6(f). 
Amounts (or the relevant portion of such amounts) subject to set-off may be converted by Y into the Termination Currency at the rate of exchange at which such party would be able, acting in a reasonable manner and in good faith, to purchase the relevant amount of such currency.  If any obligation is unascertained, Y may in good faith estimate that obligation and set-off in respect of the estimate, subject to the relevant party accounting to the other when the obligation is ascertained.  Nothing in this Section 6(f) shall be effective to create a charge or other security interest.  This Section 6(f) shall be without prejudice and in addition to any right of set-off, combination of accounts, lien or other right to which any party is at any time otherwise entitled (whether by operation of law, contract or otherwise).”
(b)    Notwithstanding anything to the contrary in the foregoing, GS&Co. agrees not to set off or net amounts due from Counterparty with respect to any Transaction against amounts due from GS&Co. to Counterparty with respect to contracts or instruments that are not Equity Contracts.  “Equity Contract” means any transaction or instrument that does not convey to GS&Co. rights, or the ability to assert claims, that are senior to the rights and claims of common stockholders in the event of Counterparty's bankruptcy.

		
	13.
	Delivery of Shares.  Notwithstanding anything to the contrary herein, GS&Co. may, by prior notice to Counterparty, satisfy its obligation to deliver any Shares or other securities on any date due (an “Original Delivery Date”) by making separate deliveries of Shares or such securities, as the case may be, at more than one time on or prior to such Original Delivery Date, so long as the aggregate number of Shares and other securities so delivered on or prior to such Original Delivery Date is equal to the number required to be delivered on such Original Delivery Date.

14.Early Termination.  In the event that an Early Termination Date (whether as a result of an Event of Default or a Termination Event (including, for the avoidance of doubt, a deemed Additional Termination Event as specified under “Additional Termination Event(s)” in Section 1 above)) occurs or is designated with respect to any Transaction (except as a result of a Merger Event in which the consideration or proceeds to be paid to holders of Shares consists solely of cash), if either party would owe any amount to the other party pursuant to Section 6(d)(ii) of the Agreement (any such amount, a “Payment Amount”), then, in lieu of any payment of such Payment Amount, Counterparty may, no later than 9:00 a.m. New York City time on the Local Business Day following its receipt of notice from GS&Co. of the relevant Early Termination Date or date of cancellation or termination in respect of an Extraordinary Event, as applicable, elect, by giving irrevocable telephonic notice (to be confirmed in writing), to deliver or for GS&Co. to deliver, as the case may be, to the other party a number of Shares (or, in the case of a Merger Event, a number of units, each comprising the number or amount of the securities or property that a hypothetical holder of one Share would receive in such Merger Event (each such unit, an “Alternative Delivery Unit” and, the securities or property comprising such unit, “Alternative Delivery Property”)) with a value equal to the Payment Amount, as determined by the Calculation Agent (and the parties agree that, in making such determination of value, the Calculation Agent may take into account a number of factors, including the market price of the Shares or Alternative Delivery Property on the date of early termination and, if such delivery is made by GS&Co., the prices at which GS&Co. purchases Shares or Alternative Delivery Property to fulfill its delivery obligations under this Section 14); provided that in determining the composition of any Alternative Delivery Unit, if the relevant Merger Event involves a choice of consideration to be received by holders, such holder shall be deemed to have elected to receive the maximum possible amount of cash; and provided further that Counterparty may make such election only if Counterparty represents and warrants to GS&Co. in writing on the date it notifies GS&Co. of such election that, as of such date, Counterparty is not aware of any material non-public information concerning the Shares and is making such election in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws. If such delivery is made by Counterparty, paragraphs 2 through 7 of Annex A shall apply as if such delivery were a settlement of the Transaction to which Net Share Settlement applied, the Cash Settlement Payment Date were the Early Termination Date and the Forward Cash Settlement Amount were zero (0) minus the Payment Amount owed by Counterparty.  For the avoidance of doubt, the Payment Amount determined by the Calculation Agent shall not include the economic effect of any Extraordinary Dividend so declared to holders of record as of any date occurring prior to the Settlement Date or, if the provisions of Annex A apply, the Cash Settlement Payment Date.

15.Calculations and Payment Date upon Early Termination.  The parties acknowledge and agree that in calculating Loss pursuant to Section 6 of the Agreement GS&Co. may (but need not) determine losses without reference to actual losses incurred but based on expected losses assuming a commercially reasonable (including without limitation with regard to reasonable legal and regulatory guidelines) risk bid were used to determine loss to avoid awaiting the delay associated with closing out any hedge or related trading position in a commercially reasonable manner prior to or sooner following the designation of an Early Termination Date.  Notwithstanding anything to the contrary in Section 6(d)(ii) of the Agreement, all amounts calculated as being due in respect of an Early Termination Date under Section 6(e) of the Agreement will be payable on the Local Business Day following the day that notice of the amount payable is effective; provided that if Counterparty elects to receive Shares or Alternative Delivery Property in accordance with Section 14, such Shares or Alternative Delivery Property shall be delivered as promptly as practicable.

16.Automatic Termination Provisions.  Notwithstanding anything to the contrary in Section 6 of the Agreement, if a Termination Price is specified in any Supplemental Confirmation, then an Additional Termination Event with Counterparty as the sole Affected Party and the Transaction to which such Supplemental Confirmation relates as the Affected Transaction will automatically occur without any notice or action by GS&Co. or Counterparty if the VWAP Price of the Shares on the Exchange is below such Termination Price for two consecutive Exchange Business Days, and the second such Exchange Business Day will be the “Early Termination Date” for purposes of the Agreement.

17.Delivery of Cash.  For the avoidance of doubt, nothing in this Master Confirmation shall be interpreted as requiring Counterparty to deliver cash in respect of the settlement of the Transactions contemplated by this Master Confirmation following payment by Counterparty of the relevant Prepayment Amount and any relevant Counterparty Additional Payment Amount, except in circumstances where the required cash settlement thereof is permitted for classification of the contract as equity by ASC 815-40, Derivatives and Hedging - Contracts in Entity's Own Equity, as in effect on the relevant Trade Date (including, without limitation, where Counterparty so elects to deliver cash or fails timely to elect to deliver Shares or Alternative Delivery Property in respect of the settlement of such Transactions).

18.Claim in Bankruptcy.  GS&Co. acknowledges and agrees that this Confirmation is not intended to convey to it rights with respect to the Transactions that are senior to the claims of common stockholders in the event of Counterparty's bankruptcy.

19.Governing Law.  The Agreement, this Master Confirmation, each Supplemental Confirmation, and all matters arising in connection with the Agreement, this Master Confirmation and each Supplemental Confirmation shall be governed by, and construed and enforced in accordance with, the laws of the State of New York (without reference to its choice of laws doctrine other than Title 14 of Article 5 of the New York General Obligations Law).
 
		
	20.
	Offices.

(a)    The Office of GS&Co. for each Transaction is:  200 West Street, New York, New York 10282-2198.    
(b)    The Office of Counterparty for each Transaction is: 2701 San Tomas Expressway, Santa Clara, California 95050.

		
	21.
	Arbitration.  The Agreement, this Master Confirmation and each Supplemental Confirmation are subject to the following arbitration provisions:

(a)    All parties to this Master Confirmation are giving up the right to sue each other in court, including the right to a trial by jury, except as provided by the rules of the arbitration forum in which a claim is filed.
(b)    Arbitration awards are generally final and binding; a party's ability to have a court reverse or modify an arbitration award is very limited.
(c)    The ability of the parties to obtain documents, witness statements and other discovery is generally more limited in arbitration than in court proceedings.
(d)    The arbitrators do not have to explain the reason(s) for their award.
(e)    The panel of arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities industry, unless Counterparty is a member of the organization sponsoring the arbitration facility, in which case all arbitrators may be affiliated with the securities industry.
(f)    The rules of some arbitration forums may impose time limits for bringing a claim in arbitration.  In some cases, a claim that is ineligible for arbitration may be brought in court.
(g)    The rules of the arbitration forum in which the claim is filed, and any amendments thereto, shall be incorporated into this Master Confirmation.
Counterparty agrees that any and all controversies that may arise between Counterparty and GS&Co., including, but not limited to, those arising out of or relating to the Agreement or any Transaction hereunder, shall be determined by arbitration conducted before the FINRA Dispute Resolution (“FINRA-DR”), or, if the FINRA-DR declines to hear the matter, before the American Arbitration Association, in accordance with their arbitration rules then in force.  The award of the arbitrator shall be final, and judgment upon the award rendered may be entered in any court, state or federal, having jurisdiction. 
No person shall bring a putative or certified class action to arbitration, nor seek to enforce any pre-dispute arbitration agreement against any person who has initiated in court a putative class action or who is a member of a putative class who has not opted out of the class with respect to any claims encompassed by the putative class action until: (i) the class certification is denied; (ii) the class is decertified; or (iii) Counterparty is excluded from the class by the court.
Such forbearance to enforce an agreement to arbitrate shall not constitute a waiver of any rights under this Master Confirmation except to the extent stated herein.

22.Counterparts.    This Master Confirmation may be executed in any number of counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Master Confirmation by signing and delivering one or more counterparts.
    

Counterparty hereby agrees (a) to check this Master Confirmation carefully and immediately upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing (in the exact form provided by GS&Co.) correctly sets forth the terms of the agreement between GS&Co. and Counterparty with respect to any particular Transaction to which this Master Confirmation relates, by manually signing this Master Confirmation or this page hereof as evidence of agreement to such terms and providing the other information requested herein and immediately returning an executed copy to Equity Derivatives Documentation Department, Facsimile No. 212-428-1980/83.
Yours faithfully,
GOLDMAN, SACHS & CO.

By:   /s/ Jesse Grief
Authorized Signatory
Agreed and Accepted By:
NVIDIA CORPORATION

By:/s/ Karen Burns
Name: Karen Burns
Title: CFO

    
    

SCHEDULE A

SUPPLEMENTAL CONFIRMATION
	
		
	

To:
	

NVIDIA Corporation
2701 San Tomas Expressway
Santa Clara, California 95050

	From:
	Goldman, Sachs & Co.

	Subject:
	Accelerated Stock Buyback

	Ref. No:
	[Insert Reference No.]

	Date:
	[Insert Date]

The purpose of this Supplemental Confirmation is to confirm the terms and conditions of the Transaction entered into between Goldman, Sachs & Co. (“GS&Co.”) and NVIDIA Corporation (“Counterparty”) (together, the “Contracting Parties”) on the Trade Date specified below.  This Supplemental Confirmation is a binding contract between GS&Co. and Counterparty as of the relevant Trade Date for the Transaction referenced below.
1.    This Supplemental Confirmation supplements, forms part of, and is subject to the Master Confirmation dated as of May 14, 2013 (the “Master Confirmation”) between the Contracting Parties, as amended and supplemented from time to time.  All provisions contained in the Master Confirmation govern this Supplemental Confirmation except as expressly modified below.

2.    The terms of the Transaction to which this Supplemental Confirmation relates are as follows:
	
		
	Trade Date:
	[  ]

	Premium:
	USD [   ]

	Calculation Period Start Date:
	[  ]

	Scheduled Termination Date:
	[  ]

	First Acceleration Date:
	[  ]

	Prepayment Amount:
	USD [   ]

	Prepayment Date:
	[  ]

	Counterparty Additional Payment Amount:
	USD [               ]

	Initial Shares:
	[               ] Shares; provided that if, in connection with the Transaction, GS&Co. is unable to borrow or otherwise acquire a number of Shares equal to the Initial Shares for delivery to Counterparty on the Initial Share Delivery Date, the Initial Shares delivered on the Initial Share Delivery Date shall be reduced to such number of Shares that GS&Co. is able to so borrow or otherwise acquire, and thereafter GS&Co. shall continue to use commercially reasonable efforts to borrow or otherwise acquire a number of Shares, at a stock borrow cost no greater than the Initial Stock Loan Rate, equal to the shortfall in the Initial Share Delivery and to deliver such additional Shares as soon as reasonably practicable (it being understood, for the avoidance of doubt, that in using such commercially reasonable efforts GS&Co. shall act in good faith and in accordance with its then current policies, practices and procedures (including without limitation any policies, practices or procedures relating to counterparty risk, market risk, reputational risk, credit, documentation, legal, regulatory capital, compliance and collateral), and shall not be required to enter into any securities lending transaction or transact with any potential securities lender if such transaction would not be in accordance with such policies, practices and procedures).  For the avoidance of doubt, the aggregate of all shares delivered to Counterparty in respect of the Transaction pursuant to this paragraph shall be the “number of Initial Shares” for purposes of “Number of Shares to be Delivered” in the Master Confirmation.

	Initial Share Delivery Date:
	[  ]

	Ordinary Dividend Amount:
	For any calendar quarter, USD [    ]

	Scheduled Ex-Dividend Dates:
	[         ]

	Additional Relevant Days:
	The [   ] Exchange Business Days immediately following the Calculation Period.

	Termination Price:
	USD [     ]

3.          Counterparty represents and warrants to GS&Co. that neither it nor any “affiliated purchaser” (as defined in Rule 10b-18 under the Exchange Act) has made any purchases of blocks pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act during either (i) the four full calendar weeks immediately preceding the Trade Date or (ii) during the calendar week in which the Trade Date occurs.
4.    This Supplemental Confirmation may be executed in any number of counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Supplemental Confirmation by signing and delivering one or more counterparts.

Counterparty hereby agrees (a) to check this Supplemental Confirmation carefully and immediately upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing (in the exact form provided by GS&Co.) correctly sets forth the terms of the agreement between GS&Co. and Counterparty with respect to the Transaction to which this Supplemental Confirmation relates, by manually signing this Supplemental Confirmation or this page hereof as evidence of agreement to such terms and providing the other information requested herein and immediately returning an executed copy to Equity Derivatives Documentation Department, facsimile No. 212-428-1980/83.
Yours sincerely,

GOLDMAN, SACHS & CO.
By:  ________________________________
Authorized Signatory

Agreed and Accepted By:
NVIDIA CORPORATION

		
	By:
	_____________________________________    

Name:
Title:

    
    

ANNEX A
COUNTERPARTY SETTLEMENT PROVISIONS
1.    The following Counterparty Settlement Provisions shall apply to the extent indicated under the Master Confirmation:
		
	Settlement Currency:
	USD

		
	Settlement Method Election:
	Applicable; provided that (i) Section 7.1 of the Equity Definitions is hereby amended by deleting the word “Physical” in the sixth line thereof and replacing it with the words “Net Share” and (ii) the Electing Party may make a settlement method election only if the Electing Party represents and warrants to GS&Co. in writing on the date it notifies GS&Co. of its election that, as of such date, the Electing Party is not aware of any material non-public information concerning Counterparty or the Shares and is electing the settlement method in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws.

		
	Electing Party:
	Counterparty

Settlement Method 
		
	Election Date:
	The earlier of (i) the Scheduled Termination Date and (ii) the second Exchange Business Day immediately following the relevant Accelerated Termination Date (in which case the election under Section 7.1 of the Equity Definitions shall be made no later than 10 minutes prior to the open of trading on the Exchange on such second Exchange Business Day), as the case may be.

		
	Default Settlement Method:
	Cash Settlement

Forward Cash Settlement 
		
	Amount:
	The Number of Shares to be Delivered multiplied by the Settlement Price.

		
	Settlement Price:
	The average of the VWAP Prices for the Exchange Business Days in the Settlement Valuation Period, subject to Valuation Disruption as specified in the Master Confirmation.

		
	Settlement Valuation Period:
	A number of Scheduled Trading Days selected by GS&Co. in its reasonable discretion, beginning on the Scheduled Trading Day immediately following the earlier of (i) the Scheduled Termination Date or (ii) the Exchange Business Day immediately following the relevant Termination Date. 

		
	Cash Settlement:
	If Cash Settlement is applicable, then Buyer shall pay to Seller the absolute value of the Forward Cash Settlement Amount on the Cash Settlement Payment Date. 

Cash Settlement 
		
	Payment Date:
	The date one Settlement Cycle following the last day of the Settlement Valuation Period.

Net Share Settlement
		
	Procedures:
	If Net Share Settlement is applicable, Net Share Settlement shall be made in accordance with paragraphs 2 through 7 below.  

2.    Net Share Settlement shall be made by delivery on the Cash Settlement Payment Date of a number of Shares satisfying the conditions set forth in paragraph 3 below (the “Registered Settlement Shares”), or a number of Shares not satisfying such conditions (the “Unregistered Settlement Shares”), in either case with a value equal to the absolute value of the Forward Cash Settlement Amount, with such Shares' value based on the value thereof to GS&Co. (which value shall, in the case of Unregistered Settlement Shares, take into account a commercially reasonable illiquidity discount), in each case as determined by the Calculation Agent.  For the avoidance of doubt, if delivery of any Shares would not satisfy the conditions listed in paragraph 3 below, the provisions of paragraph 4 below shall apply to delivery of such shares.

3.    Counterparty may only deliver Registered Settlement Shares pursuant to paragraph 2 above if:
(a)    a registration statement covering public resale of the Registered Settlement Shares by GS&Co. (the “Registration Statement”) shall have been filed with the Securities and Exchange Commission under the Securities Act and been declared or otherwise become effective on or prior to the date of delivery, and no stop order shall be in effect with respect to the Registration Statement; a printed prospectus relating to the Registered Settlement Shares (including any prospectus supplement thereto, the “Prospectus”) shall have been delivered to GS&Co., in such quantities as GS&Co. shall reasonably have requested, on or prior to the date of delivery;
(b)    the form and content of the Registration Statement and the Prospectus (including, without limitation, any sections describing the plan of distribution) shall be commercially reasonably satisfactory to GS&Co.;
(c)    as of or prior to the date of delivery, GS&Co. and its agents shall have been afforded a reasonable opportunity to conduct a due diligence investigation with respect to Counterparty customary in scope for underwritten offerings of equity securities and the results of such investigation are satisfactory to GS&Co., in its discretion; and
(d)    as of the date of delivery, an agreement (the “Underwriting Agreement”) shall have been entered into with GS&Co. in connection with the public resale of the Registered Settlement Shares by GS&Co. substantially similar to underwriting agreements customary for underwritten offerings of equity securities for an issuance of its size, in form and substance commercially reasonably satisfactory to GS&Co., which Underwriting Agreement shall include, without limitation, provisions substantially similar to those contained in such underwriting agreements relating, without limitation, to the indemnification of, and contribution in connection with the liability of, GS&Co. and its affiliates and the provision of customary opinions, accountants' comfort letters and lawyers' negative assurance letters.
		
	4.
	If Counterparty delivers Unregistered Settlement Shares pursuant to paragraph 2 above:

(a)    all Unregistered Settlement Shares shall be delivered to GS&Co. (or any affiliate of GS&Co. designated by GS&Co.) pursuant to the exemption from the registration requirements of the Securities Act provided by Section 4(2) thereof;
(b)    as of or prior to the date of delivery, GS&Co. and any potential purchaser of any such shares from GS&Co. (or any affiliate of GS&Co. designated by GS&Co.) identified by GS&Co. shall be afforded a commercially reasonable opportunity to conduct a due diligence investigation with respect to Counterparty customary in scope for private placements of equity securities for an issuance of its size (including, without limitation, the right to have made available to them for inspection all financial and other records, pertinent corporate documents and other information reasonably requested by them); 
(c)    as of the date of delivery, Counterparty shall enter into an agreement (a “Private Placement Agreement”) with GS&Co. (or any affiliate of GS&Co. designated by GS&Co.) in connection with the private placement of such shares by Counterparty to GS&Co. (or any such affiliate) and the private resale of such shares by GS&Co. (or any such affiliate), substantially similar to private placement purchase agreements customary for private placements of equity securities for an issuance of its size, in form and substance commercially reasonably satisfactory to GS&Co., which Private Placement Agreement shall include, without limitation, provisions substantially similar to those contained in such private placement purchase agreements relating, without limitation, to the indemnification of, and contribution in connection with the liability of, GS&Co. and its affiliates and the provision of customary opinions, accountants' comfort letters and lawyers' negative assurance letters, and shall provide for the payment by Counterparty of all reasonable fees and expenses in connection with such resale, including all reasonable fees and expenses of outside counsel for GS&Co., and shall contain representations, warranties, covenants and agreements of Counterparty reasonably necessary or advisable to establish and maintain the availability of an exemption from the registration requirements of the Securities Act for such resales; and

(d)    in connection with the private placement of such shares by Counterparty to GS&Co. (or any such affiliate) and the private resale of such shares by GS&Co. (or any such affiliate), Counterparty shall, if so requested by GS&Co., prepare, in cooperation with GS&Co., a private placement memorandum in form and substance commercially reasonably satisfactory to GS&Co. 
5.    GS&Co., itself or through an affiliate (the “Selling Agent”) or any underwriter(s), will sell all, or such lesser portion as may be required hereunder, of the Registered Settlement Shares or Unregistered Settlement Shares and any Makewhole Shares (as defined below) (together, the “Settlement Shares”) delivered by Counterparty to GS&Co. pursuant to paragraph 6 below commencing on the Cash Settlement Payment Date and continuing until the date on which the aggregate Net Proceeds (as such term is defined below) of such sales, as determined by GS&Co., is equal to the absolute value of the Forward Cash Settlement Amount (such date, the “Final Resale Date”).  If the proceeds of any sale(s) made by GS&Co., the Selling Agent or any underwriter(s), net of any fees and commissions (including, without limitation, underwriting or placement fees) customary for similar transactions under the circumstances at the time of the offering, together with carrying charges and expenses incurred in connection with the offer and sale of the Shares (including, but without limitation to, the covering of any over-allotment or short position (syndicate or otherwise)) (the “Net Proceeds”) exceed the absolute value of the Forward Cash Settlement Amount, GS&Co. will refund, in USD, such excess to Counterparty on the date that is three (3) Currency Business Days following the Final Resale Date, and, if any portion of the Settlement Shares remains unsold, GS&Co. shall return to Counterparty on that date such unsold Shares.  
6.    If the Calculation Agent determines that the Net Proceeds received from the sale of the Registered Settlement Shares or Unregistered Settlement Shares or any Makewhole Shares, if any, pursuant to this paragraph 6 are less than the absolute value of the Forward Cash Settlement Amount (the amount in USD by which the Net Proceeds are less than the absolute value of the Forward Cash Settlement Amount being the “Shortfall” and the date on which such determination is made, the “Deficiency Determination Date”), Counterparty shall on the Exchange Business Day next succeeding the Deficiency Determination Date (the “Makewhole Notice Date”) deliver to GS&Co., through the Selling Agent, a notice of Counterparty's election that Counterparty shall either (i) pay an amount in cash equal to the Shortfall on the day that is one (1) Currency Business Day after the Makewhole Notice Date, or (ii) deliver additional Shares.  If Counterparty elects to deliver to GS&Co. additional Shares, then Counterparty shall deliver additional Shares in compliance with the terms and conditions of paragraph 3 or paragraph 4 above, as the case may be (the “Makewhole Shares”), on the first Clearance System Business Day which is also an Exchange Business Day following the Makewhole Notice Date in such number as the Calculation Agent reasonably believes would have a market value on that Exchange Business Day equal to the Shortfall.  Such Makewhole Shares shall be sold by GS&Co. in accordance with the provisions above; provided that if the sum of the Net Proceeds from the sale of the originally delivered Shares and the Net Proceeds from the sale of any Makewhole Shares is less than the absolute value of the Forward Cash Settlement Amount then Counterparty shall, at its election, either make such cash payment or deliver to GS&Co. further Makewhole Shares until such Shortfall has been reduced to zero. 
7.    Notwithstanding the foregoing, in no event shall the aggregate number of Settlement Shares and Makewhole Shares be greater than the Reserved Shares minus the amount of any Shares actually delivered by Counterparty under any other Transaction(s) under this Master Confirmation (the result of such calculation, the “Capped Number”).  Counterparty represents and warrants (which shall be deemed to be repeated on each day that a Transaction is outstanding) that the Capped Number is equal to or less than the number of Shares determined according to the following formula:
A - B
		
	Where
	A = the number of authorized but unissued shares of the Counterparty that are not reserved for future issuance on the date of the determination of the Capped Number; and

B = the maximum number of Shares required to be delivered to third parties if Counterparty elected Net Share Settlement of all transactions in the Shares (other than Transactions in the Shares under this Master Confirmation) with all third parties that are then currently outstanding and unexercised.
“Reserved Shares” means initially, 100,000,000 Shares.  The Reserved Shares may be increased or decreased in a Supplemental Confirmation.

SUPPLEMENTAL CONFIRMATION
	
		
	

To:
	

NVIDIA Corporation
2701 San Tomas Expressway
Santa Clara, California 95050

	From:
	Goldman, Sachs & Co.

	Subject:
	Accelerated Stock Buyback

	Ref. No:
	SDB4166429579

	Date:
	May 14, 2013

The purpose of this Supplemental Confirmation is to confirm the terms and conditions of the Transaction entered into between Goldman, Sachs & Co. (“GS&Co.”) and NVIDIA Corporation (“Counterparty”) (together, the “Contracting Parties”) on the Trade Date specified below.  This Supplemental Confirmation is a binding contract between GS&Co. and Counterparty as of the relevant Trade Date for the Transaction referenced below.
1.    This Supplemental Confirmation supplements, forms part of, and is subject to the Master Confirmation dated as of May 14, 2013 (the “Master Confirmation”) between the Contracting Parties, as amended and supplemented from time to time.  All provisions contained in the Master Confirmation govern this Supplemental Confirmation except as expressly modified below.
2.    The terms of the Transaction to which this Supplemental Confirmation relates are as follows:

	
		
	Trade Date:
	May 14, 2013

	Premium:
	USD 14,390,000.00

	Calculation Period Start Date:
	May 14, 2013

	Scheduled Termination Date:
	[*]

	First Acceleration Date:
	[*]

	Prepayment Amount:
	USD 750,000,000.00

	Prepayment Date:
	May 16, 2013

	Counterparty Additional Payment Amount:
	USD 0.00

* This information has been omitted based on a request for confidential treatment. The omitted portions have
been separately filed with the Securities and Exchange Commission.
    

	
		
	 
	 

	Initial Shares:
	36,867,978 Shares; provided that if, in connection with the Transaction, GS&Co. is unable to borrow or otherwise acquire a number of Shares equal to the Initial Shares for delivery to Counterparty on the Initial Share Delivery Date, the Initial Shares delivered on the Initial Share Delivery Date shall be reduced to such number of Shares that GS&Co. is able to so borrow or otherwise acquire, and thereafter GS&Co. shall continue to use commercially reasonable efforts to borrow or otherwise acquire a number of Shares, at a stock borrow cost no greater than the Initial Stock Loan Rate, equal to the shortfall in the Initial Share Delivery and to deliver such additional Shares as soon as reasonably practicable (it being understood, for the avoidance of doubt, that in using such commercially reasonable efforts GS&Co. shall act in good faith and in accordance with its then current policies, practices and procedures (including without limitation any policies, practices or procedures relating to counterparty risk, market risk, reputational risk, credit, documentation, legal, regulatory capital, compliance and collateral), and shall not be required to enter into any securities lending transaction or transact with any potential securities lender if such transaction would not be in accordance with such policies, practices and procedures).  For the avoidance of doubt, the aggregate of all shares delivered to Counterparty in respect of the Transaction pursuant to this paragraph shall be the “number of Initial Shares” for purposes of “Number of Shares to be Delivered” in the Master Confirmation.

	Initial Share Delivery Date:
	May 16, 2013

	Ordinary Dividend Amount:
	For any calendar quarter, USD 0.075

	Scheduled Ex-Dividend Dates:
	May 21, 2013 and August 20, 2013

	Additional Relevant Days:
	The 5 Exchange Business Days immediately following the Calculation Period.

	Termination Price:
	USD 6.41

3.          Counterparty represents and warrants to GS&Co. that neither it nor any “affiliated purchaser” (as defined in Rule 10b-18 under the Exchange Act) has made any purchases of blocks pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act during either (i) the four full calendar weeks immediately preceding the Trade Date or (ii) during the calendar week in which the Trade Date occurs.
4.    This Supplemental Confirmation may be executed in any number of counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Supplemental Confirmation by signing and delivering one or more counterparts.

Counterparty hereby agrees (a) to check this Supplemental Confirmation carefully and immediately upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing (in the exact form provided by GS&Co.) correctly sets forth the terms of the agreement between GS&Co. and Counterparty with respect to the Transaction to which this Supplemental Confirmation relates, by manually signing this Supplemental Confirmation or this page hereof as evidence of agreement to such terms and providing the other information requested herein and immediately returning an executed copy to Equity Derivatives Documentation Department, facsimile No. 212-428-1980/83.
Yours sincerely,

GOLDMAN, SACHS & CO.
By:  /s/ Jesse Grief
Authorized Signatory

Agreed and Accepted By:
NVIDIA CORPORATION

		
	By:
	/s/ Karen Burns

Name: Karen Burns
Title: CFOExhibit 10.1

 

AMSTERDAM TRADE BANK N.V.

CREDIT AGREEMENT TF-048/10     DATED 16 July 2010

 

THE UNDERSIGNED:

 

(A)          Luxoft USA. Inc.  a company with limited liability incorporated under the laws of USA, having its registered office at 2711 Centerville road suite 400, Wilmington, DE 19808, County of New Castle, United States of America (the “Borrower”); and

 

(B)          AMSTERDAM TRADE BANK N.V..  a public company with limited liability incorporated under the laws of the Netherlands, having its registered office at Herengracht 475,1017 BS, Amsterdam, the Netherlands (the “Bank”);

 

HAVE AGREED AS FOLLOWS:

 

The Bank shall make a credit facility (the “Facility”) available to the Borrower under the conditions set forth in this Credit Agreement.

 

I.             The Facility

 

1.     Principal Amount and Composition of the Facility: Loan Facility in the amount of USD 10,000,000.00 (ten million US dollars)

 

2.     Maximum outstanding amount: The outstanding aggregate amount under or in respect of the Facility provided pursuant to this Credit Agreement may not exceed the Principal Amount.

 

3.     Purpose: Working capital purposes.

 

4.     Default Interest: 18 % per annum.

 

5.     Termination Date: 12 months from the date of this Credit Agreement.

 

6.     Loan Facility

 

6.1.         Type: Revolving uncommitted loan.

 

6.2.         Term: In respect of each Loan, the shorter of the period expiring on the Repayment Date specified in the respective Drawdown Notice or the period expiring on the Termination Date.

 

6.3.         Utilisation: By submitting of a duly completed Drawdown Notice in the form set out in Schedule 1 not later than 3 Business Days prior to the proposed Drawdown Date.

 

If the conditions set out in this Credit Agreement have been met and subject to the availability of funds, the Bank may, in its absolute discretion, consider and sign a respective Drawdown Notice and make the Loan specified in the Drawdown Notice

 

 

available by the Drawdown Date. Nothing in this Credit Agreement shall compel the Bank to make the Loan available to the Borrower.

 

6.4.  Drawdown Notice: A Drawdown Notice is irrevocable and will not be regarded as having been duly completed unless:

 

	
6.4.1.
    	
the Drawdown Date is a Business Day;
    
	
6.4.2.
    	
it specifies the Repayment Date applicable to that Loan;
    
	
6.4.3.
    	
the Loan requested in the Drawdown Notice, in aggregate with any   other outstanding Loans, does not exceed the maximum amount of the Loan   Facility.
    

 

6.5          Interest: 10 % per annum

 

6.6          Interest Period: 1 month.

 

6.7          Repayment: Each Loan, together with all accrued and unpaid interest, shall be repaid on the earlier of the last day of its Term or the Termination Date.

 

6.8          Prepayment: The Borrower may not prepay the Facility either in whole or in part.

 

6.9          Re-borrowing: Any part of the Facility which is repaid may be re-borrowed in accordance with the terms of this Credit Agreement provided that no Event of Default is continuing or would result from the re-borrowing.

 

II.            Other Conditions

 

7      Events of Default: On and at any time after the occurrence of an Event of Default as defined and referred to in the Amsterdam Trade Bank General Credit Conditions, the Bank may, by notice to the Borrower:

 

	
(a)
    	
cancel all or any part of the Bank’s commitments under the Facility   whereupon they shall immediately be cancelled; and/or
    
	
(b)
    	
declare that all or part of the Facility, together with accrued   interest, and all other amounts accrued or outstanding under the Facility be   immediately due and payable, whereupon they shall become immediately due and   payable; and/or
    
	
(c)
    	
declare that all or part of the Facility be payable on demand,   whereupon they shall immediately become payable on demand by the Bank,   without further notice of default or any other formality.
    

 

8      Representations and Warranties: The Borrower represents and warrants to the Bank for itself and each Security Party that:

 

8.1          Corporate Existence: it is a company duly incorporated and validly existing under its jurisdiction of incorporation and has full power, authority and legal right to own its assets and to carry on its business.

 

8.2          Capacity: it has full power authority and legal right, and all necessary corporate action has been taken in order to authorise the Borrower to enter into and to exercise

 

	
Bank
    	
 
    	
Borrower
    

 

2

 

its rights and perform its obligations under this Credit Agreement and the documents related hereto to which it is or is to be a party.

 

8.3          Documents Valid and Enforceable: this Credit Agreement and the documents related hereto to which it is or is to be a party constitute or when executed will constitute its legal, valid and binding obligations enforceable in accordance with their terms.

 

8.4          Authorisations: all authorisations required from any governmental or other authority or required to be obtained by it from any of its shareholders or creditors or any other person for or in connection with the execution, validity, performance and enforceability of this Credit Agreement and the documents related hereto, have been obtained and are in full force and effect.

 

8.5          Obligations Permitted: the execution, performance and exercise by it of this Credit Agreement and the documents related hereto will not:

 

8.5.1       conflict with or result in a breach of any law, regulation, judgment, order, authorization, agreement or obligation applicable to it; or

8.5.2       cause any limitation placed on it or the powers of its directors to be exceeded; or

8.5.3       result in the creation of or oblige the Borrower to create an encumbrance over any of its assets, except under or pursuant to this Credit Agreement or the documents related hereto.

 

8.6          Information: Any information provided or to be provided by it or on its behalf for the purposes of this Credit Agreement was and will be true and accurate in all material respects as at the date it was or will be provided or as at the date (if any) at which it is stated.

 

8.7          Pari passu ranking: Its payment obligations under this Credit Agreement and the documents related hereto rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law.

 

8.8          No proceedings pending or threatened: No legal or administrative action involving it has been commenced or taken or, to its knowledge, is likely to be commenced or taken which might, if adversely determined, have a material adverse effect.

 

The representations and warranties are deemed to be made as at the date of this Credit Agreement and shall be deemed to be repeated daily throughout the period during which the Credit Agreement remains in force.

 

9      Security and Covenants

 

9.1   Financial Indebtedness: The Borrower shall not have or incur any financial indebtedness except for indebtedness incurred under this Credit Agreement or otherwise disclosed to the Bank on the date of this Credit Agreement or approved in writing by the Bank. Financial indebtedness means any indebtedness for or in respect of moneys borrowed, any guarantee, indemnity or similar assurance against financial loss of any person, and any counter-indemnity obligation in respect of a contingent liability or any other instrument issued by a financial institution.

 

	
Bank
    	
 
    	
Borrower
    

 

3

 

9.2          Disposal of property: Without the prior written consent of the Bank, the Borrower shall not dispose of any of its present or future assets other than such disposals made in the ordinary course of the Borrower’s business or in exchange for other assets comparable or superior as to type, value and quality.

 

9.3          Loan to Value covenant: The Borrower shall, at all time, ensure that the outstanding amount of the Facility is not more than 80 % of the unpaid amount of the Borrower’s Invoices to the Account Debtors listed in Schedule II.

 

If the Bank notifies the Borrower that there is a breach of loan to value covenant, the Borrower shall prepay the Facility within 2 Business Days of the Bank’s notification in an amount and in a manner calculated and specified by the Bank to ensure compliance with the loan to value covenant.

 

9.4          Content of the Invoice: The Borrower shall insure that all its Invoices to Account Debtor contain the following instruction: Please be advised that any payments due to us under Contract/Invoice No.          dated          should be made exclusively to our account with Amsterdam Trade Bank N.V., Herengracht 475, 1017 BS Amsterdam, The Netherlands

 

Account details:

 

US-Dollars : account 9001.801081.001 of Luxoft USA, Inc. through account 0440 1485 of Amsterdam Trade Bank N.V. (SWIFT STOLNL2A) with Deutsche Bank Trust Company Americas, New York,

 

EURO : IBAN NL86 STOL 0270 0078 81 of Luxoft USA, Inc. SWIFT STOLNL2A

 

GBP    : IBAN NL61 STOL 0801 0810 03 of Luxoft USA, Inc. SWIFT STOLNL2A unless you are notified by Amsterdam Trade Bank N.V. that the payment shall be made directly to them or as they may advise.

 

9.5          Legal and other Costs: The Borrower shall reimburse the Bank within 10 Business Days of its demand for the amount of all costs and expenses if any (including legal fees) incurred by the Bank in connection with:

 

9.5.1       negotiation, preparation, drafting printing, execution or registration of this Credit Agreement and any Security Document or a related document;

9.5.2       any amendment to this Credit Agreement or any Security Document requested by the Borrower;

9.5.3       the enforcement of, or preservation of any rights under this Credit Agreement or any Security Document.

 

9.6          Security Documents: The obligations of the Borrower under this Credit Agreement are secured by the following agreements:

 

9.6.1  Guarantee No. GU- 01-048/10 of Luxoft International Company Limited, Akara Building, 24 De Castro Street, Wickhams Cay 1, P.O. Box 3136, Road Town Tortola, British Virgin Islands;

9.6.2  Guarantee No. GU- 02-048/10 of IBS Group Holding Ltd, Kissack Court, 29 Parliament Street, Ramsey, Isle of Man IM8 1JA;

9.6.3  Deed of pledge of rights to the accounts No. 9001-801081-001, 9001-801081-002 and 9001-801081-003 DPR-048/10 granted by the Borrower.

 

	
Bank
    	
 
    	
Borrower
    

 

4

 

9.7          As security for the prompt and complete payment and performance when due (whether at stated maturity, by acceleration or otherwise) of all of the Obligations, the Borrower hereby grants to the Lender a continuing security interest in all of Borrower’s rights, title and interest in the Accounts.

 

9.8          After the occurrence of an Event of Default, the Bank may, at any time and without further cause or notice, curtail or terminate, at any time, the Borrower’s authority to collect amounts payable on Accounts. If required by the Bank at any time after an Event of Default, any proceeds, when collected by Borrower, whether consisting of checks, notes, drafts, bills of exchange, money orders, commercial paper of any kind whatsoever or other documents received in payment of any Account shall be promptly deposited by the Borrower in precisely the form received, except for its endorsement when required, in a special bank account maintained by the Bank, subject to withdrawal by the Bank, as hereinafter provided, and until so turned over, shall be deemed to be held in trust by the Borrower for the Bank, and as Bank’s property, and shall not be commingled with Borrower’s other funds. Such proceeds, when deposited, shall continue to be collateral security for all of the Obligations and shall not constitute payment thereof until applied as hereinafter provided. If an Event of Default shall have occurred and be continuing, at any time, in Bank’s election, the Bank shall apply all or any part of the funds on deposit in said special account or otherwise received by the Bank against the principal of and/or interest on any of the Obligations, and the order and method of such application shall be in the discretion of the Bank.

 

9.9          After the occurrence and during the continuance of an Event of Default, the Bank may, at any time, notify Account Debtors that the Accounts have been assigned to the Bank and that payments shall be made directly to the Bank. After the occurrence and during the continuance of an Event of Default, upon the request of the Bank at any time, the Borrower will so notify such Account Debtors as the Bank may specify.

 

10. Information: The Borrower shall provide the Bank with any and all information mentioned in Clause A. 12 of the Amsterdam Trade Bank General Credit Conditions on the Bank’s first demand.

 

10.1 The Borrower shall procure that the Bank receives in the form and substance satisfactory to it:

 

	
a)
    	
monthly report on outstanding unpaid Invoices;
    
	
b)
    	
quarterly financial statements of the Borrower and Guarantors- not   later then 60 days from the end of the respective quarter of the financial   year;
    
	
c)
    	
documentary evidence of perfection of the security interest over   Accounts by the Borrower to the Bank and acknowledgement thereof by Account   Debtors in the form of UCC filing of financing statements -not later than 20   Business Days from the date of this Credit Agreement.
    

 

11.  Conditions Precedent: The Bank may, in its absolute discretion, make a Credit available provided it has received in form and substance satisfactory to it:

 

11.1        executed Credit Agreement;

11.2        all Security Documents duly executed;

 

	
Bank
    	
 
    	
Borrower
    

 

5

 

11.3        all the documents required by the Bank confirming corporate authority of the Borrower and each Security Party to enter into this Credit Agreement and any Security Document to which it is a party and the authority of the signatories to sign and execute this Credit Agreement and any Security Document to which it is a party;

11.4        evidence that no Event of Default or potential Event of Default under this Credit Agreement has occurred or might result on the advance of the Credit;

11.5        any other document and evidence requested by the Bank.

 

12   General Conditions: Insofar as this Credit Agreement does not deviate therefrom, the Amsterdam Trade Bank General Credit Conditions are applicable to this Credit Agreement. Insofar as this Credit Agreement and the Amsterdam Trade Bank General Credit Conditions do not deviate therefrom, the Amsterdam Trade Bank General Banking Conditions are applicable. The Borrower (a) confirms the receipt of the above-mentioned general conditions and (b) acknowledges that the contents are known to it.

 

13   Governing Law and Jurisdiction

 

This Credit Agreement, and any non-contractual obligations arising out of or in connection with it, shall be governed by and construed in accordance with the laws of the Netherlands.

 

Any dispute, controversy or claim arising out of or relating to this Credit Agreement, or the breach, termination or invalidity thereof, shall be settled by arbitration in accordance with the UNCITRAL Arbitration Rules as at present in force. The appointing authority shall be the Netherlands Arbitration Institute, Rotterdam. The arbitral tribunal shall be composed of one arbitrator. The place of arbitration shall be Amsterdam, The Netherlands. The parties hereby agree to be joined in any concurrent arbitration proceedings in relation to any Collateral Agreement and to have any disputes arising out of in connection with this Agreement and the Security Documents be considered in single arbitration instituted pursuant to the present arbitration clause.

 

Nothing in the preceding sentence shall limit the right of the Bank to bring proceedings in any other court or competent jurisdiction.

 

14   Miscellaneous: In this Credit Agreement:

 

“Account Debtor” means any company listed in Schedule II;

 

“Account” is defined in the UCC and shall mean and include accounts receivable under Invoices owing to the Borrower and arising out of services rendered by it to an Account Debtor;

 

“Business Day” means a day (other than Saturday or Sunday) on which banks are open for general business in Amsterdam and New York;

 

“Invoice” means a copy of an invoice from the Borrower to an Account Debtor indicating that the Invoice accounts receivable are assigned to the Bank (such assignment in such form as approved by the Bank) and are payable to the account of the Borrower with the Bank;

 

	
Bank
    	
 
    	
Borrower
    

 

6

 

“Loan” means a loan made or to be made under the Facility or the principal amount outstanding for the time being of that loan;

 

“Month” means a period beginning in one calendar month and ending in the next calendar month on the day numerically corresponding to the day of the calendar month on which it commences or, where there is no date in the next calendar month numerically corresponding as aforesaid, the last day of such calendar month, and “months” and “monthly” shall be construed accordingly;

 

“UCC” means the Uniform Commercial Code as in effect in the State of Delaware or in any other applicable jurisdiction;

 

15   Effective Date: This Credit Agreement shall have effect and be dated on the date of the last signature of the Borrower and the Bank stated below.

 

In Witness whereof the duly authorized representative(s) of the parties have signed this Credit Agreement in duplicate on the dates given against their signatures below:

 

	
Bank:
    	
 
    	
Borrower:
    
	
Contact address:
    	
 
    	
Contact address:
    
	
Amsterdam Trade Bank N.V.
    	
 
    	
Luxoft USA,Inc.
    
	
Herengracht 475, 1017 BS Amsterdam
    	
 
    	
111 Broadway, suite 1503, New York, N.Y.
    
	
The Netherlands
    	
 
    	
10006 USA
    
	
Telephone No:
    	
+31 (0)20 52 09 261
    	
 
    	
Telephone No:+l 201 5059525
    
	
Facsimile No:
    	
+31 (0)20 52 09 269
    	
 
    	
Facsimile No:+1 201 5059526
    
	
Attention: Mr. A.P van Aken
    	
 
    	
Attention: Mr. Glen Granovsky
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Amsterdam Trade Bank N.V.
    	
 
    	
Luxoft USA, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ M. Czurda 
    	
 
    	
By:
    	
/s/ Glen Granovsky 
    
	
Name:
    	
M. Czurda 
    	
 
    	
Name:
    	
Glen Granovsky 
    
	
Title:
    	
Director
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ A.P. van Aken
    	
 
    	
 
    
	
Name:
    	
A.P. van Aken
    	
 
    	
 
    
	
Title:
    	
Manager of Trade Finance
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
 
    
						

 

	
Bank
    	
 
    	
Borrower
    

 

7

 

Schedule I

DRAWDOWN NOTICE No.  

TO CREDIT AGREEMENT No TF-048/10 dated 16 July 2010

 

To:   Amsterdam Trade Bank N.V. Herengracht 475, 1017 BS Amsterdam, The Netherlands 

From:   Luxoft USA, Inc. 2711 Centerville road suite 400, Wilmington, DE 19808, County of New Castle, United States of America

 

Date:        20   

 

Dear Sirs,

 

1. We hereby give you notice that we wish to draw a Loan in the amount and in accordance with the details as specified below.

 

Drawdown Date:

2010

 

Repayment Date:

2010

 

Amount: USD

 

	
Beneficiary
    	
 
    
	
Account Number:
    	
No.
    
	
Name:
    	
Luxoft USA, Inc.
    
	
Beneficiary Bank
    	
 
    
	
Name:
    	
Amsterdam Trade Bank N.V.
    
	
BIC:
    	
STOLNL2A
    
	
Details of Payment:
    	
Credit Agreement No TF-048/10
    
	
 
    	
Drawdown Notice No
    

 

2. We confirm that:

 

	
(a)
    	
each condition specified in Clause A.3 (Conditions Precedent) of the Amsterdam Trade Bank General   Credit Conditions is satisfied;
    
	
 
    	
 
    
	
(b)
    	
the representations and warranties set out in the Credit Agreement   remain true and correct; and
    
	
 
    	
 
    
	
(c)
    	
no Event of Default or potential Event of Default has occurred and is   continuing which remains not waived or unremedied or would result from the   making of the Loan;
    
	
 
    	
 
    
	
 
    	
in each case, as at the date and with reference to the facts and   circumstances subsisting on the date of this Drawdown Notice and on the   Drawdown Date.
    

 

3. This notice is irrevocable.

4. Terms defined in the Credit Agreement and the Amsterdam Trade Bank General Credit Conditions have the same meaning when used in this Drawdown Notice. This request is subject to the terms and conditions set out in the Credit Agreement.

 

Yours faithfully, 

Luxoft USA, Inc.

 

Authorised Signatory

 

The undersigned hereby approves the making of a Loan as set forth above.

 

	
Bank
    	
 
    	
Borrower
    

 

8

 

Amsterdam Trade Bank N.V

 

 

Authorised Signatory

 

9

 

Schedule II To Credit Agreement No. TF-048/10 dated 16 July 2010

 

List of Account Debtors and Facility limits established per individual Account Debtor

 

	
BOEING Company
    	
 
    	
USD
    	
3.000.000,00
    	
 
    

 

IBM Eurocoordination S.A. and/or its affiliated companies (which for the purposes of this credit agreement, for the time being shall include, IBM Deutschland GmbH) - USD 2.000.000.00

 

	
Deutsche Bank AG
    	
 
    	
USD
    	
2.500.000.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
UBS AG
    	
 
    	
USD
    	
3.500.000.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Harman Becker Automotive Systems GmbH
    	
 
    	
USD
    	
2.500.000.00
    	
 
    

 

(the “Group”)

 

The List of approved Account Debtors is subject to amendments upon sole discretion of the Bank.

 

The outstanding aggregate amount of the facilities available to members of the Group shall never exceed the Principal Amount of USD 10,000,000.00, at any given moment during the lifetime of the Agreement and no Drawdown Request will be granted by the Bank if, as the result, any of the limits established above are breached.

 

	
Bank
    	
 
    	
Borrower
    

 

10

 

GUARANTEE GU-01-048/10

 

This Guarantee (the “Guarantee”) is made on 16 July 2010

 

BY

 

1. Luxoft International Company Limited, a company organised and existing under the laws of British Virgin Islands, with it’s registered office at Akara Building, 24 De Castro Street, Wickhams Cay 1, P.O. Box 3136, Road town, Tortola, British Virgin Islands, hereinafter referred to as the “Guarantor”;

 

IN FAVOUR OF

 

2. AMSTERDAM TRADE BANK N.V., a company organised and existing under the laws of The Netherlands, with its registered office at Herengracht 475, 1017 BS Amsterdam, The Netherlands, hereinafter referred to as “ATB”.

 

WHEREAS:

 

(A)  ATB and Luxoft USA, Inc., a company incorporated and organised under the laws of USA, with registered office at 2711 Centerville road suite 400, Wilmington, DE 19808, County of New Castle, United States of America, as borrower, (the “Borrower”), have entered into Credit Agreement No TF- 048/10 dated 16 July 2010 as the same may be amended, supplemented or varied from time to time (the “Loan Agreement”);

 

(B)  It is a requirement under the Loan Agreement and a condition precedent to the availability of the credit facilities under the Loan Agreement that the Guarantor enters into this Guarantee to guarantee the punctual performance by the Borrower of all the Borrower’s obligations under the Loan Agreement.

 

IT IS AGREED AS FOLLOWS:

 

1.             Definition

 

Unless the context otherwise requires, or unless otherwise defined in the Guarantee words and expressions defined in the Loan Agreement and its recitals shall have the same meaning when used in this Guarantee (including its recitals).

 

2.             Guarantee

 

The Guarantor hereby unconditionally and irrevocably guarantees the due and punctual performance by the Borrower of all the Borrower’s obligations under the Loan Agreement (the “Guaranteed Obligations”), and undertakes with ATB, by way of its own independent obligation (in Dutch: “bij wege van zelfstandige verbintenis”) and not as surety (in Dutch: “borg”) on first demand, to pay fully and promptly the Guaranteed Obligations whenever the Borrower does not pay the same when due. This Guarantee is irrevocable.

 

3.             Indemnification

 

The Guarantor undertakes to indemnify ATB immediately on first demand against any loss or liability suffered by ATB, if any of the Guaranteed Obligations become unenforceable, invalid or illegal; the amount of the loss or liability under this indemnity will be equal to the amount ATB would otherwise have been entitled to recover.

 

 

4.             Independent and continuing guarantee

 

The liability of the Guarantor hereunder is independent of any security for or other guarantee of the Guaranteed Obligations whether executed by the Guarantor or by any other party. This Guarantee is a continuing guarantee and will extend to the ultimate balance of sums payable by the Borrower to ATB in respect of the Guaranteed Obligations, regardless of any intermediate payment or discharge in whole or in part.

 

5.             Waiver of defenses

 

The obligations of the Guarantor under this Guarantee will not be affected by an act, omission, matter or thing which, but for this Clause, would reduce, release or prejudice any of the Guaranteed Obligations under this Guarantee (without limitation and whether or not known to ATB) including:

 

	
(a)
    	
any   time, waiver or consent granted to, or composition with the Borrower, or any   other person;
    
	
 
    	
 
    
	
(b)
    	
the   change of the mariner, place or terms of payment, the time of payment,   compromise, exchange, renewal, increase, acceleration, or alteration of   (i) the Guaranteed Obligations (including any increase or decrease in   the rate of the interest thereon), (ii) any security therefor, or   (iii) any liability incurred directly or indirectly in respect thereof,   and the Guarantee herein made shall apply to the Guaranteed Obligations as so   changed, extended, renewed or altered;
    
	
 
    	
 
    
	
(c)
    	
the   refusal or neglect to perfect, take up or enforce any rights against the   Borrower or any other person or any non-presentation or non-observance of any   formality or other requirement in respect of any instrument or any failure to   realise the full value of any security;
    
	
 
    	
 
    
	
(d)
    	
any   incapacity or lack of power, authority or legal personality of or dissolution   or change in the members or status of the Borrower;
    
	
 
    	
 
    
	
(e)
    	
any   unenforceability, illegality or invalidity of any obligation of the Borrower;
    
	
 
    	
 
    
	
(f)
    	
any   insolvency or similar proceedings;
    
	
 
    	
 
    
	
(g)
    	
any   other action, which would otherwise, under applicable principles of law, give   rise to a legal or equitable discharge of the Guarantor from its liabilities   under this Guarantee; and/or
    
	
 
    	
 
    
	
(h)
    	
any   compromise to or waiver of any breach or omission or default in respect of   the Guaranteed Obligation or otherwise any amendment (however fundamental),   modification or supplement in respect of the Guaranteed Obligations or any   other document or security.
    

 

6              No recourse or subrogation

 

6.1          The Guarantor hereby agrees with ATB it will not exercise any right of recourse which it may at any time have or any right in which it may at any time be subrogated as a result of this Guarantee until all Guaranteed Obligations have been irrevocably paid in full to ATB.

 

6.2          The Guarantor agrees that any rights of subrogation or recourse, which it may have against the Borrower hereunder, shall be subject and subordinate to the rights and remedies of ATB in respect of the Borrower.

 

ATB

 

2

 

7.             Expenses

 

The Guarantor agrees to reimburse ATB on first demand for all legal and other costs, charges and expenses on a full and unqualified indemnity basis, which ATB may have incurred in relation to the enforcement or protection of its rights hereunder.

 

8.             Assignment

 

8.1          This Guarantee shall remain binding on the Guarantor notwithstanding any change in the constitution of ATB or its absorption in, or amalgamation with, or the acquisition of all or part of its undertaking or assets by any other person, or any reconstruction or reorganisation of any kind, to the intent that this Guarantee shall remain valid and effective in all respects in favour of any assignee, transferee or other successor in title of ATB in the name manner as if such assignee, transferee or other successor in title had been named in this Guarantee as a party instead of, or in addition to, ATB, as the case may be.

 

8.2          The Guarantor may not assign or transfer any of its rights or obligations under this Guarantee.

 

9.             Addresses for notices

 

Every notice, request, demand or other communication under this Guarantee shall:

 

(a)           be in writing delivered personally or by first-class prepaid letter (airmail if available) or telefax;

 

(b)           be deemed to have been received, subject as otherwise provided in this Guarantee, in the case of a personal delivery or a letter when delivered and, in the case of a telefax, when a complete and legible copy is received by the addressee (unless the date of receipt is not a business day in the country of the addressee or the time of receipt of any telefax is after the close of business in the country of the addressee in which case it shall be deemed to have been received at the opening of business on the next such business day); and

 

(c)           be sent:

	
(i)
    	
To   the Guarantor at:
    	
(ii) To   ATB at:
    
	
 
    	
 
    	
 
    
	
Luxoft International Company Limited
    	
Amsterdam   Trade Bank N.V.
    
	
 
    	
 
    
	
Akara   Building,     24   De   Castro
    	
Herengracht   475, 1017 BS
    
	
Street,   Wickhams Cay 1 P.O. Box
    	
Amsterdam
    
	
3136,   Road town, Tortola, British
    	
The   Netherlands
    
	
Virgin   Islands
    	
Mr. A.P.van   Aken
    
	
Contact   person Mr. Glen Granovsky
    	
Facsimile:   31-20 6391269
    
	
Facsimile:   001 201 5059526
    	
Telephone:   31-20 5209 261
    
	
Telephone:   001 201 5059525
    	
 
    

 

or to such address or telefax number as is notified by the Guarantor or ATB to the other party to this Guarantee.

 

	
ATB
    	
 
    	
Guarantor
    

 

3

 

10.          Commencement Date

 

This Guarantee will come into force as of the date of the Loan Agreement and will remain in force for so long as any amount is outstanding under or in connection with the Loan Agreement and the related to it security agreements or any of them.

 

11.          Governing law

 

This Guarantee and any dispute, controversy, proceedings or claim of whatever nature arising out of or in any way relating to this Guarantee shall be governed by and construed in accordance with the laws of The Netherlands.

 

12.          Arbitration

 

Any dispute, controversy or claim arising out of or relating to this Guarantee, or the breach, termination or invalidity thereof, shall be settled by arbitration in accordance with the UNCITRAL Arbitration Rules as at present in force. The appointing authority shall be the Netherlands Arbitration Institute, Rotterdam. The arbitral tribunal shall be composed of one arbitrator. The place of arbitration shall be Amsterdam, The Netherlands. The parties hereby agree to be joined in any concurrent arbitration proceedings in relation to the Loan Agreement and to have any disputes arising out of in connection with this Guarantee, the Loan Agreement or any Security Documents be considered in single arbitration instituted pursuant to the present arbitration clause.

 

This Guarantee has been entered into on the date stated at the beginning of this Guarantee and signed in duplicate in Amsterdam.

 

	
 
    	
 
    	
ATB
    
	
The   Guarantor
    	
 
    	
 
    
	
 
    	
 
    	
AMSTERDAM   TRADE BANK N.V.
    
	
Luxoft   International Company Limited
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
M.Czurda
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:   Director
    
	
By:
    	
Glen   Granovsky
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
Director
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
A.   P. van Aken
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Title:   Manager of Trade Finance
    

 

	
ATB
    	
 
    	
Guarantor
    

 

4

 

GUARANTEE GU-02-048/10

 

This Guarantee (the “Guarantee”) is made on 16 July 2010

 

BY

 

1. IBS Group Holding Ltd., a company organised and existing under the laws of Isle of Man, with it’s registered office at Kissack Court, 29 Parliament Street, Ramsey, Isle of Man IM8 1JA, hereinafter referred to as the “Guarantor”;

 

IN FAVOUR OF

 

2. AMSTERDAM TRADE BANK N.V., a company organised and existing under the laws of The Netherlands, with its registered office at Herengracht 475, 1017 BS Amsterdam, The Netherlands, hereinafter referred to as “ATB”.

 

WHEREAS:

 

(A)  ATB and Luxoft USA, Inc., a company incorporated and organised under the laws of USA, with registered office at 2711 Centerville road suite 400, Wilmington, DE 19808, County of New Castle, United States of America, as borrower, (the “Borrower”), have entered into Credit Agreement No TF- 048/10 dated 16 July 2010 as the same may be amended, supplemented or varied from time to time (the “Loan Agreement”);

 

(B)  It is a requirement under the Loan Agreement and a condition precedent to the availability of the credit facilities under the Loan Agreement that the Guarantor enters into this Guarantee to guarantee the punctual performance by the Borrower of all the Borrower’s obligations under the Loan Agreement.

 

IT IS AGREED AS FOLLOWS:

 

1.             Definition

 

Unless the context otherwise requires, or unless otherwise defined in the Guarantee words and expressions defined in the Loan Agreement and its recitals shall have the same meaning when used in this Guarantee (including its recitals).

 

2.             Guarantee

 

The Guarantor hereby unconditionally and irrevocably guarantees the due and punctual performance by the Borrower of all the Borrower’s obligations under the Loan Agreement (the “Guaranteed Obligations”), and undertakes with ATB, by way of its own independent obligation (in Dutch: “bij wege van zelfstandige verbintenis”) and not as surety (in Dutch: “borg”) on first demand, to pay fully and promptly the Guaranteed Obligations whenever the Borrower does not pay the same when due. This Guarantee is irrevocable.

 

3.             Indemnification

 

The Guarantor undertakes to indemnify ATB immediately on first demand against any loss or liability suffered by ATB, if any of the Guaranteed Obligations become unenforceable, invalid or illegal; the amount of the loss or liability under this indemnity will be equal to the amount ATB would otherwise have been entitled to recover.

 

 

4.             Independent and continuing guarantee

 

The liability of the Guarantor hereunder is independent of any security for or other guarantee of the Guaranteed Obligations whether executed by the Guarantor or by any other party. This Guarantee is a continuing guarantee and will extend to the ultimate balance of sums payable by the Borrower to ATB in respect of the Guaranteed Obligations, regardless of any intermediate payment or discharge in whole or in part.

 

5.             Waiver of defenses

 

The obligations of the Guarantor under this Guarantee will not be affected by an act, omission, matter or thing which, but for this Clause, would reduce, release or prejudice any of the Guaranteed Obligations under this Guarantee (without limitation and whether or not known to ATB) including:

 

	
(a)
    	
any   time, waiver or consent granted to, or composition with the Borrower, or any   other person;
    
	
 
    	
 
    
	
(b)
    	
the   change of the manner, place or terms of payment, the time of payment,   compromise, exchange, renewal, increase, acceleration, or alteration of   (i) the Guaranteed Obligations (including any increase or decrease in   the rate of the interest thereon), (ii) any security therefor, or   (iii) any liability incurred directly or indirectly in respect thereof,   and the Guarantee herein made shall apply to the Guaranteed Obligations as so   changed, extended, renewed or altered;
    
	
 
    	
 
    
	
(c)
    	
the   refusal or neglect to perfect, take up or enforce any rights against the   Borrower or any other person or any non-presentation or non-observance of any   formality or other requirement in respect of any instrument or any failure to   realise the full value of any security;
    
	
 
    	
 
    
	
(d)
    	
any   incapacity or lack of power, authority or legal personality of or dissolution   or change in the members or status of the Borrower;
    
	
 
    	
 
    
	
(e)
    	
any   unenforceability, illegality or invalidity of any obligation of the Borrower;
    
	
 
    	
 
    
	
(f)
    	
any   insolvency or similar proceedings;
    
	
 
    	
 
    
	
(g)
    	
any   other action, which would otherwise, under applicable principles of law, give   rise to a legal or equitable discharge of the Guarantor from its liabilities   under this Guarantee; and/or
    
	
 
    	
 
    
	
(h)
    	
   any   compromise to or waiver of any breach or omission or default in respect of   the Guaranteed Obligation or otherwise any amendment (however fundamental),   modification or supplement in respect of the Guaranteed Obligations or any   other document or security.
    

 

6              No recourse or subrogation

 

6.1          The Guarantor hereby agrees with ATB it will not exercise any right of recourse which it may at any time have or any right in which it may at any time be subrogated as a result of this Guarantee until all Guaranteed Obligations have been irrevocably paid in full to ATB.

 

6.2          The Guarantor agrees that any rights of subrogation or recourse, which it may have against the Borrower hereunder, shall be subject and subordinate to the rights and remedies of ATB in respect of the Borrower.

 

7.             Expenses

 

The Guarantor agrees to reimburse ATB on first demand for all legal and other costs, charges and expenses on a full and unqualified indemnity basis, which ATB may have incurred in relation to the enforcement or protection of its rights hereunder.

 

	
ATB
    	
 
    	
Guarantor
    

 

2

 

8.             Assignment

 

8.1          This Guarantee shall remain binding on the Guarantor notwithstanding any change in the constitution of ATB or its absorption in, or amalgamation with, or the acquisition of all or part of its undertaking or assets by any other person, or any reconstruction or reorganisation of any kind, to the intent that this Guarantee shall remain valid and effective in all respects in favour of any assignee, transferee or other successor in title of ATB in the name manner as if such assignee, transferee or other successor in title had been named in this Guarantee as a party instead of, or in addition to, ATB, as the case may be.

 

8.2          The Guarantor may not assign or transfer any of its rights or obligations under this Guarantee.

 

9.             Addresses for notices

 

Every notice, request, demand or other communication under this Guarantee shall:

 

(a)           be in writing delivered personally or by first-class prepaid letter (airmail if available) or telefax;

 

(b)           be deemed to have been received, subject as otherwise provided in this Guarantee, in the case of a personal delivery or a letter when delivered and, in the case of a telefax, when a complete and legible copy is received by the addressee (unless the date of receipt is not a business day in the country of the addressee or the time of receipt of any telefax is after the close of business in the country of the addressee in which case it shall be deemed to have been received at the opening of business on the next such business day); and

 

(c)           be sent:

	
(i)
    	
To   the Guarantor at:
    	
(ii) To   ATB at:
    
	
 
    	
 
    	
 
    
	
IBS Group Holding Ltd.,
    	
Amsterdam Trade Bank N.V.
    
	
 
    	
 
    
	
Address   : Kissack Court, 29 
   Parliament Street, Ramsey, Isle   of 
    	
Herengracht   475, 1017 BS 
   Amsterdam
    
	
Man IM8 1JA
    	
The   Netherlands
    
	
Contact person Mr. Glen Granowsky
    	
Mr. A.P.   van Aken
    
	
Facsimile: 001 201 5059526
    	
Facsimile:   31-20 639 1269
    
	
Telephone: 001 201 505 9525
    	
Telephone:   31- 20 5209 261
    

 

or to such address or telefax number as is notified by the Guarantor or ATB to the other party to this Guarantee.

 

10.          Commencement Date

 

This Guarantee will come into force as of the date of the Loan Agreement and will remain in force for so long as any amount is outstanding under or in connection with the Loan Agreement and the related to it security agreements or any of them.

 

	
ATB
    	
 
    	
Guarantor
    
	
 
    	
 
    	
Guarantee   GU-02-048/10
    

 

3

 

11.          Governing law

 

This Guarantee and any dispute, controversy, proceedings or claim of whatever nature arising out of or in any way relating to this Guarantee shall be governed by and construed in accordance with the laws of The Netherlands.

 

12.          Arbitration

 

Any dispute, controversy or claim arising out of or relating to this Guarantee, or the breach, termination or invalidity thereof, shall be settled by arbitration in accordance with the UNCITRAL Arbitration Rules as at present in force. The appointing authority shall be the Netherlands Arbitration Institute, Rotterdam. The arbitral tribunal shall be composed of one arbitrator. The place of arbitration shall be Amsterdam, The Netherlands. The parties hereby agree to be joined in any concurrent arbitration proceedings in relation to the Loan Agreement and to have any disputes arising out of in connection with this Guarantee, the Loan Agreement or any Security Documents be considered in single arbitration instituted pursuant to the present arbitration clause.

 

This Guarantee has been entered into on the date stated at the beginning of this Guarantee and signed in duplicate in Amsterdam.

 

	
The Guarantor
    	
 
    	
ATB
    
	
 
    	
 
    	
 
    
	
Luxoft International Company Limited
    	
 
    	
AMSTERDAM TRADE BANK N.V.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:  M.Czurda
    
	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
Title:   Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By: A.P. van Aken
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Title: Head of   Trade Finance
    

 

	
Guarant
    	
 
    	
ATB
    

 

4

 

Deed of Pledge of Rights to the Accounts No  DPRD-01 -048/10

 

The undersigned:

 

1.   Luxoft USA, Inc., a company with limited liability incorporated under the laws of USA, having its registered office at 2711 Centerville road suite 400, Wilmington, DE 19808, County of New Castle, United States of America; hereinafter referred to as the “Company”

 

and

 

2.   Amsterdam Trade Bank N.V., Herengracht 475, 1017 BS Amsterdam, The Netherlands, a public company with limited liability (“naamloze vennootschap”), hereinafter referred to as the “Bank”;

 

Whereas the Company has undertaken to pledge in favour of the Bank certain rights and interests as more specifically described below;

 

Have agreed as follows:

 

Article 1.

 

The Company hereby declares to pledge and - to the extent that such is necessary - hereby agrees to pledge in favour of the Bank all of its present and future rights against the Bank in respect of all credit balances in current accounts 9001.801081.001, 9001.801081.002 and 9001.801081.003 of the Company with the Bank together with the interest accruing on such balances from time to time (the Rights).

 

The Bank hereby declares to accept the pledge set forth herein, and declares, in its capacity as debtor of the pledged rights, to have been notified thereof.

 

Article 2.

 

This pledge is made in order to secure the due fulfilment by the Company of all its present and future obligations towards the Bank, in relation to Credit Agreement No. TF-048/10 dated 16 July 2010 signed between the Bank and the Company.

 

Article 3.

 

The proceeds of the rights pledged to the Bank below, shall be credited against the amounts owing to the Bank by the Company in respect of the obligations referred to in Article 2 hereof, in such manner as the Bank shall deem fit.

 

Article 4.

 

The Company has no authority to pledge, encumber or transfer its rights in respect of the credit balances in the account mentioned in the Article 1 in favour of a third party.

 

Article 5.

 

The Company agrees to notify the Bank immediately and at any time of everything which could

 

	
Bank
    	
 
    	
Company
    

 

1

 

be of importance to the Bank with a view to the preservation and exercise of the Bank’s rights pursuant to this Deed, such as the filing of petition for the Company’s bankruptcy, the filing of a moratorium of payment by the Company, attachment or garnishment of the pledged rights, the termination of the Company’s commercial activities or dissolution.

 

Article 6.

 

The Bank shall be deemed to have waived its rights under this Deed on the date on which the Company has fulfilled its obligations as referred to in Article 2. To confirm such waiver and release the pledge specified in Article 1 above the Bank issues a written notification to that effect to the Company. Such notification shall be given latest on the business day immediately following on the date on which the Company has fulfilled its obligations as referred to in Article 2.

 

Article 7.

 

As to the amount and the obligations as security for which this pledge is made, the Company shall conform to and be satisfied with the books of the Bank, without prejudice to the Company’s rights to re-claim such amounts as the Company may prove that the Bank has received in excess of that to which it is entitled.

 

Article 8.

 

In case the security granted hereby serves to secure the obligations of a person other than the Company, the Company hereby waives to the fullest extent all possible rights and benefits granted by law to persons providing security for third-party obligations, including, but not limited to, the right to demand prior to execution of any other collateral which may have been given to the Bank in respect of any obligations of the Company or of the assets of the Company.

 

Article 9.

 

Except and so far as this Deed expressly deviates therefrom, it and the relationship of the parties hereto shall be subject to the Bank’s General Terms and Conditions, which the Company hereby expressly declares to have accepted.

 

Article 10.

 

1. This Deed including all rights and obligations arising hereof or in connection herewith, shall be governed by the laws of The Netherlands.

 

2. Any dispute, controversy or claim arising out of or relating to this Deed of Pledge, or the breach, termination or invalidity thereof, shall be settled by arbitration in accordance with the UNC1TRAL Arbitration Rules as at present in force. The appointing authority shall be the Netherlands Arbitration Institute, Rotterdam. The arbitral tribunal shall be composed of one arbitrator. The place of arbitration shall be Amsterdam, The Netherlands. The parties hereby agree to be joined in any concurrent arbitration proceedings in relation to the Credit Agreement and to have any disputes arising out of in connection with this Deed and the

 

	
Bank
    	
 
    	
Company
    

 

2

 

Credit Agreement and/or any Security Documents (as defined in the Credit Agreement) be considered in single arbitration instituted pursuant to the present arbitration clause.

 

Nothing in the preceding sentence shall limit the right of the Bank to bring proceedings in any other court or competent jurisdiction.

 

Signed in Amsterdam, 16 July 2010.

 

	
Bank:
    	
 
    	
Company:
    
	
Amsterdam   Trade Bank N.V.
    	
 
    	
Luxoft   USA, Inc.
    
	
Herengracht   475 1017 BS
    	
 
    	
2711   Centerville Road, Suite 400,
    
	
Amsterdam
    	
 
    	
Wilmington,   DE 19808, County of New Castle,
    
	
The   Netherlands
    	
 
    	
United   States of America
    

 

The present Deed is concluded in two originals in the English language, one for each party. In case of dispute over the wording of any translation of this agreement the English version will be binding.

 

 

	
Bank:
    	
 
    	
 
    	
Client:
    
	
By
    	
Martin Czurda
    	
 
    	
By
    	
Glen   Granovsky
    
	
Title:
    	
Director
    	
 
    	
Title
    	
Director
    

 

 

	
By
    	
A.P.   van Aken
    	
 
    	
 
    
	
Title
    	
Manager   of Trade Finance

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