Document:

Exhibit

EXHIBIT 10.3

EPAM SYSTEMS, INC. 
2012 NON-EMPLOYEE DIRECTOR COMPENSATION PLAN
RESTRICTED STOCK UNIT AWARD AGREEMENT 
1.Grant of RSUs. EPAM Systems, Inc., a Delaware corporation (the Company”), hereby grants to _____________ (the “Participant”), on ______ (the “Grant Date”), ________ restricted stock units (the “RSUs”), subject to the terms, definitions and provisions of the EPAM Systems, Inc. 2012 Non-Employee Director Compensation Plan (the “Plan”) adopted by the Company, which is incorporated in this Agreement by reference, and the terms and conditions of this Agreement. Each RSU shall represent the right to receive one Share upon the vesting of such RSU in accordance with this Agreement. Unless otherwise defined in this Agreement, the terms used in this Agreement shall have the meanings defined in the Plan. 
2.Vesting Schedule and Distribution. Subject to Section 5, the RSUs shall vest and become non-forfeitable 100% on the first anniversary of the Grant Date. Subject to the provisions of this Agreement, upon the vesting of any of the RSUs, including the RSUs that vest pursuant to Section 5, the Company shall distribute to the Participant, on or within 30 days after the date of such vesting or on the dated elected pursuant to the EPAM Systems, Inc. 2017 Non-Employee Directors Deferral Plan, one Share for each such RSU.
3.Voting Rights.  The Participant shall have no voting rights with respect to the RSUs unless and until the Participant becomes the record owner of the Shares underlying the RSUs.
4.Dividend Equivalents.  If a dividend is declared on Shares during the period commencing on the Grant Date (including such date) and ending on the date on which the Shares underlying RSUs are distributed to the Participant pursuant to Section 2, the Participant shall be credited with dividend equivalents equal to the dividend that the Participant would have received had the Shares underlying the RSUs been distributed to the Participant as of the time at which such dividend declared. Dividend equivalents will be subject to the same vesting and forfeiture restrictions as the RSUs to which they are attributable and will be paid on the same date that the RSUs to which they are attributable are settled in accordance with Section 2. The Participant will not be entitled to any dividend or dividend equivalents with respect to any canceled or forfeited RSUs.
5.Termination of Service or a Change in Control. 
(a) Upon the Participant’s termination of service from the Board at any time, a portion of the RSUs shall vest as of the date of such termination, with such portion determined by multiplying (i) the number of RSUs that would have vested on the next scheduled vesting date had the Participant’s service on the Board continued through such date by (ii) a fraction, the numerator of which is the number of days that the Participant served on the Board from the Grant Date (or, if such termination occurs after the first anniversary of the Grant Date, the most recent anniversary of the Grant Date) through the date of such termination, and the denominator of which is 365.  Any RSUs that do not vest upon such termination in accordance with the preceding sentence shall be forfeited without any payment to the Participant.
(b) Upon a Change in Control, the RSUs shall fully vest and become non-forfeitable as of the date of such Change in Control.

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6.Non-Transferability Until Vesting. Unless and until the RSUs become vested in accordance with this Agreement, the RSUs shall not be assigned, sold, transferred or otherwise be subject to alienation by the Participant. Upon the vesting of any of the RSUs, the forfeiture restrictions with respect to such Shares shall lapse, and, subject to the provisions of this Agreement and any applicable lock-up agreement, such Shares shall be fully assignable, saleable and transferable by the Participant.
7.Miscellaneous Provisions.
(a)Notices.  All notices, requests and other communications under this Agreement shall be in writing and shall be delivered in person (by courier or otherwise), mailed by certified or registered mail, return receipt requested, or sent by facsimile transmission, as follows:
 
if to the Company, to:  
 
EPAM Systems, Inc.
41 University Drive 
Newtown, Pennsylvania 18940 
Attention: General Counsel 
Facsimile: 212-759-8989
 
if to the Participant, to the address that the Participant most recently provided to the Company, or to such other address or facsimile number as such party may hereafter specify for the purpose by notice to the other parties hereto.
(b)Effect of Agreement. The Participant acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the terms and provisions thereof (and has had an opportunity to consult counsel regarding the terms of the RSUs), and hereby accepts the RSUs and agrees to be bound by their contractual terms as set forth herein and in the Plan. The Participant hereby agrees to accept as binding, conclusive and final all decisions and interpretations of the Board regarding any questions relating to the RSUs. In the event of a conflict between the terms and provisions of the Plan and the terms and provisions of this Agreement, the Plan terms and provisions shall prevail. This Agreement, including the Plan, constitutes the entire agreement between the Participant and the Company on the subject matter hereof and supersedes all proposals, written or oral, and all other communications between the parties relating to such subject matter.
(c)Amendment; Waiver.  No amendment or modification of any provision of this Agreement shall be effective unless signed in writing by or on behalf of the Company and the Participant, except that the Company may amend or modify this Agreement without the Participant’s consent in accordance with the provisions of the Plan or as otherwise set forth in this Agreement. No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach or condition whether of like or different nature. Any amendment or modification of or to any provision of this Agreement, or any waiver of any provision of this Agreement, shall be effective only in the specific instance and for the specific purpose for which made or given.

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(d)Successors and Assigns; No Third Party Beneficiaries.  This Agreement shall inure to the benefit of and be binding upon the Company and the Participant and their respective heirs, successors, legal representatives and permitted assigns. Nothing in this Agreement, expressed or implied, is intended to confer on any Person other than the Company and the Participant, and their respective heirs, successors, legal representatives and permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.
(e)Severability. If any provision of this Agreement shall be declared by any court or arbitrator of competent jurisdiction to be invalid, illegal or incapable of being enforced in whole or in part, the remaining conditions and provisions or portions thereof shall nevertheless remain in full force and effect and enforceable to the extent they are valid, legal and enforceable.
(f)Dispute Resolution.  If any dispute arising out of or relating to this Agreement or the Plan, or the breach thereof, cannot be settled through negotiation, the parties agree first to try in good faith to settle such dispute by mediation. If the parties fail to settle such dispute within 30 days after the commencement of such mediation, such dispute shall be settled by arbitration conducted in the state of Pennsylvania and judgment on the arbitral award rendered may be entered in any court having jurisdiction thereof.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above.
 

 
	
			
	 
	EPAM SYSTEMS, INC.

	 
	 

	 
	 

	 
	By:
	 

	 
	 
	Name:

	 
	 
	Title:

	 
	 

	 
	 

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3Exhibit

EXHIBIT 10.4

EPAM SYSTEMS, INC. 
NON-EMPLOYEE DIRECTORS DEFERRAL PLAN

Form of Election to Defer RSUs

On settlement of any RSUs that are granted to you under the Incentive Plan, shares of Stock will be distributed to you in accordance with the terms of the Incentive Plan and the award agreements governing such RSUs.  Complete this Election Form if you wish to defer receipt of all or any portion of such shares of Stock.  Indicate the percentage of such shares of Stock that you wish to defer and the time at which you wish to receive such shares of Stock.  

I hereby elect to defer receipt of any shares of Stock that are distributed to me on settlement of any RSUs that are granted to me in the calendar year after the date hereof (or in the case of my initial deferral election occurring within 30 days of the adoption of the Plan or my becoming eligible to participate in the plan, after the date hereof), until such time that I revoke this Election Form in accordance with the requirements of the Incentive Plan and this Election Form.  Please distribute to me such shares of Stock at the time indicated below [check only one of the two options]:

	
			
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	Option #1 – Lump Sum Distribution: On the July 15th following my having a “separation from service” as a director of the Company (within the meaning given in Treasury Regulation §1.409A-1(h) or successor guidance thereto).

	 
	 

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	Option #2 – Distribution in Annual Installments: As indicated below, in substantially equal annual installments, each on July 15th, over a period of up to five years commencing with the July 15th following my having a “separation from service” as a director of the Company (within the meaning given in Treasury Regulation §1.409A-1(h) or successor guidance thereto).  Please select one of the following:

	 
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	2 Installments: On the July 15th following my “separation from service” and the following July 15th. 

	 
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	3 Installments: On the July 15th following my “separation from service” and on the July 15th of each of the following two years.

	 
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	4 Installments: On the July 15th following my “separation from service” and on the July 15th of each of the following three years.

	 
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	5 Installments: On the July 15th following my “separation from service” and on the July 15th of each of the following four years.

I understand that any such shares of Stock that I have not elected to defer under this Election Form will be distributed to me in accordance with the terms of the Incentive Plan and the applicable award agreements.

I acknowledge that I have received copies of the Incentive Plan and the Deferral Plan.  I understand that this Election Form will remain in effect until I modify this Election Form by executing and returning to the Administrator a new Election Form or I revoke this Election Form by providing written notice to the Administrator, in each case in accordance with the terms of the Deferral Plan, and I further acknowledge that in order to modify this Election Form’s application to a particular grant of RSUs, I must modify or revoke this election form prior to the end of the calendar year prior to a grant of RSUs for which I elect for deferral.  
 

Signature:                              Date:                  
Director’s Name: ____________________________

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