Document:

ex10-1.htm

ePlus inc.

Executive Incentive Plan

Effective with the Fiscal Year beginning April 1, 2011

Supercedes Plan adopted on February 28, 2011

 

1. Purpose

 

The ePlus inc. Executive Incentive Plan (the "Plan") is designed to provide additional incentive for Executive employees of ePlus inc. (the "Company") and its subsidiaries by awarding performance-based cash incentive compensation. Such awards will be designed to retain or attract, and to provide additional incentive to Executives having regard for their individual performance, business unit performance, contributions to the Company and other appropriate considerations.

 

2. Administration

 

(a) The Plan shall be administered by the ePlus Compensation Committee which consists of select members of the Board of Directors of the Company, each of' whom qualifies as a "non-employee director" within the meaning of Rule 16b-3 ("Rule 16b3") promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and an "outside director" within the meaning of Section 162(m) of the Internal Revenue Code of 1986, as amended (the "Code") (directors meeting both such requirements being hereinafter referred to as "Qualified Directors"), which Compensation Committee shall be composed of not less than the minimum number of Qualified Directors from time to time required by Rule 16b-3 or Section 162(m). The Compensation Committee shall have full authority to establish rules for the administration of the Plan and to make administrative decisions regarding the Plan or awards hereunder. The Compensation Committee may delegate its functions hereunder to the extent consistent with applicable law.

 

(b) Determination binding. Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions under or with respect to the Plan, any award, or any award agreement or certificate shall be with and in the sole discretion of the Compensation Committee, may be made at any time, and shall be final, conclusive, and binding upon all person, including the Company, any subsidiary, any participant, any holder or beneficiary of any award, and any employee of the Company or any subsidiary.

 

(c) Section 409A. Awards under the Plan are intended to either comply with or meet an exception from the requirements of Code Section 409A and the Plan shall be so administered and interpreted. The deferral of receipt of any Award under Section 8(e) shall be permitted only at such time and under such procedures as comply with Code Section 409A.  References to a termination of employment under the Plan shall mean the date of a “separation from service” within the meaning of Code Section 409A(a)(2)(A)(i).  If the participant is a “specified employee” within the meaning of Code Section 409A(a)(2)(B)(i) at the time of the participant’s termination of employment, any nonqualified deferred compensation subject to Code Section 409A that would otherwise have been payable under this Plan as a result of, and within the first six (6) months following, the participant’s “separation from service” and not by reason of another event under Section 409A(a)(2)(A), will become payable six (6) months and one (1) day following the date of the participant’s separation from service or, if earlier, the date of participant’s death.

 

3. Awards

(a) Determination of Participation and Award Amounts. The Compensation Committee will determine participants in the Plan and the terms and amounts of each participant's minimum, target and maximum award opportunities hereunder.

 

(b) Award Type. Incentives shall be awarded in the form of annual cash payments of specified percentages of base salary, which are paid based upon the achievement of pre-established annual corporate, unit and/or individual performance objectives.

 

(c) Earning Awards. Awards shall be paid hereunder to the extent the Company and the participant, achieve Performance Goals as specified by the Compensation Committee.  "Performance Goals" under the Plan will be established by the Compensation Committee prior to the time the grant is made and is based upon the attainment of targets expressed in both the financial performance and the individual performance (MBO) components of the plan.  Each participant's award opportunity shall be computed based upon a percentage of such participant's annual base salary and shall be denominated in cash in a proportion as determined by the Compensation Committee. Each award agreement will identify the minimum, target and maximum levels of performance required for payment of the related award.

 

(d) Award Period. The Compensation Committee shall fix the period during which performance is to be measured and the time at which the value of the annual incentive is to be paid.

 

(e) Payment Date.  Except in cases of death or disability, an award for a fiscal year shall be paid in a lump sum as soon as practicable after the end of the fiscal year for which earned and no later than the next December 31st following such fiscal year.

 

(f) Adjustment of Awards.  In the event it is determined that an award was paid based on incorrect financial results, the Compensation Committee will review such payment.  If the amount of the payment would have been lower had the level of achievement of applicable financial performance goals been calculated based on the correct financial results, the Compensation Committee may, in its sole discretion, adjust (i.e., lower) the amount of such payment so that it reflects the amount that would have applied based on the correct financial results and, to the extent permitted by applicable law, require the reimbursement by the participant of any amount paid to or received by the participant with respect to such award.  Additionally, cash payments under this Plan are subject to recovery by the Company to the extent required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and the Sarbanes-Oxley Act of 2002 and any regulations promulgated thereunder.

 

  

  

  

4. Participants

 

Nothing in the Plan shall prevent a participant from being included in any other employee benefit or stock option or purchase plan of the Company or from receiving any other compensation provided. Neither the Plan nor any action taken thereunder shall be understood as giving any person any right to be retained in the employ of the Company or any subsidiary, nor shall any person (including participants in a prior year) be entitled as of right to be selected as a participant in the Plan any subsequent year.

 

5. Amendment/Termination of the Plan

 

The Compensation Committee may amend, suspend, or terminate the Plan in whole or in part at any time; provided, however, that if in the judgment of the Committee such amendment or other action would have a material effect on the Plan, such amendment or other action must be taken by the Board of Directors.

 

6. Termination of Employment; Transfer Restrictions

 

(a) In the event of a conflict between this Executive Incentive Plan and an individual's Employment Agreement, the terms of the Employment Agreement shall prevail. Furthermore, the Employment Agreement shall control in any matter on which this Executive Incentive Plan is silent.

 

(b) Except as otherwise provided in this Section 6, to be entitled to payment of an award, an Executive must remain in employment with the Company as of the end of the fiscal year for which an incentive payment is earned.  If a participant's employment with the Company terminates due to death or disability, the Compensation Committee may in its discretion make a payment to the participant or his beneficiary, as the case may be, up to an amount equal to the value of the target award for the relevant performance period in which the termination occurs, multiplied by a fraction, the numerator of which is the number of months (including partial months) in the period beginning on the first day of the relevant performance period and ending with the date as of which the participant's employment with the Company so terminated, and the denominator of which is the number of months in such performance period.  Any such payment shall be made in a lump sum within sixty (60) days of the date of termination of the participant's employment due to death or disability.  If a participant's employment with the Company terminates due to retirement, the Compensation Committee may in its discretion make a payment to the participant up to an amount equal to the value of the award that otherwise would have been received based on the extent to which performance criteria are determined to have been met by the Compensation Committee, multiplied by a fraction, the numerator of which is the number of months (including partial months) in the period beginning on the first day of the relevant performance period and ending with the date as of which the participant's employment with the Company so terminated, and the denominator of which is the number of months in such performance period.  Any such payment shall be made at the time the payment would have been made had there been no termination of employment due to retirement.

 

(c) Awards under the Plan are unfunded obligations of the Company.  No award, and no right under any award shall be assignable, alienable, saleable, or transferable by a participant other than by will or by the laws of descent and distribution. Each award, and each right under any award, shall be payable only to the participant, or, if permissible under applicable law, to the participant's guardian or legal representative and any purported pledge, alienation, attachment, or encumbrance thereof shall be void and unenforceable against the Company.

 

7. Effectiveness

 

The Plan shall become effective on the date it is approved by the current sitting Chairman of the Compensation Committee as indicated by his signature on this plan document (the "Effective Date").

 

8. Criteria

 

(a) Covered Employees. The provisions of this Section 8 shall be applicable to awards under the Plan to "Covered Employees" if the Compensation Committee so provides at the time of grant (such awards being referred to as "Covered Awards"). For purposes of this Section 8, "Covered Employees" means participants in the Plan who are designated by the Committee prior to the grant of an award hereunder who are, or are expected to be at the time taxable income will be realized with respect to the award, "Covered Employees" with the meaning of Section 162(m) of the Code.

 

(b) Determinations. Covered Awards shall be made subject to the achievement of one or more pre-established Performance Goals (as defined below), in accordance with procedures to be established by the Committee from time to time. Notwithstanding any provision of the Plan to the contrary, the Compensation Committee shall not have discretion to waive or amend such Performance Goals or to increase the amount payable pursuant to Covered Awards after the Performance Goals have been established; provided, however, that the Compensation Committee may, in its sole discretion, reduce the amount that would otherwise be payable with respect to any Covered Award.

 

(c) Performance Goals. For purposes of Section 8, "Performance Goals" shall mean one or more of the following performance criteria, either individually, alternatively or in any combination, applied to either the Company as a whole or to a business unit or affiliate, and measured either annually or cumulatively over a period of years, on an absolute basis or relative to a pre-established target, to a previous year’s results or to a designated comparison group, in each case as specified by the Compensation Committee in the Award:  revenue, sales, net income, net earnings (including earnings before taxes and/or interest), earnings per share, return on total capital, return on equity, cash flow, operating profit and margin rate, subject to adjustment, to the extent consistent with Code Section 162(m) and generally accepted accounting principles, to remove the effect of charges for restructurings, discontinued operations, extraordinary items and all items of gain, loss or expense determined to be extraordinary or unusual in nature or infrequent in occurrence, related to the disposal of a segment or a business, or related to a change in accounting principle or otherwise and to exclude incentive compensation accrued under the plan for the fiscal year and any income, gain, or loss  attributable to the business operations of any entity acquired by the Company during the fiscal year.  The Committee may also determine, at the time of grant, to exclude the effect of legal fees and income relating to litigation matters, and specific non-cash charges, such as goodwill impairments.  The performance criteria must meet the objectively determinable requirements of the Section 162(m).  Additionally, the performance criteria must be established by the Compensation Committee prior to the time the grant is made and during the first 90 days of the performance period and before 25% of the performance period has elapsed.

 

(d) Written Certification; Maximum Annual Award.  No payment shall be made pursuant to a Covered Award unless and until the Compensation Committee shall have certified in writing that the applicable Performance Goals have been attained.  The maximum amount payable pursuant to a particular Covered Employee under this Plan for any fiscal year shall be $500,000.

 

(e) Shareholder Approval.  The material terms of the Plan, including the Performance Goals listed in Section 8(c) under one or more of which the compensation is to be paid as a Covered Award, must be disclosed to and approved by shareholders of the Company.  The Covered Award must be subject to such shareholder approval of the Plan.

 

(f) Deferrals.  The Compensation Committee may from time to time establish procedures pursuant to which Covered Employees will be permitted or required to defer receipt of awards under the Plan.

 

(g) Composition of the Compensation Committee.  Notwithstanding any other provision of the Plan, for all purposes involving Covered Awards, the Compensation Committee shall consist of at least three members of the Board, each of whom is an "outside director" within the meaning of Section 162(m).

 

                                           

	  	
Signed:   /s/ Milton E. Cooper, Jr. 

	  	
Date:   April 25, 2011 

	  	
Milton E. Cooper, Jr.

Chairman, Compensation Committee

Executive Incentive Plan

Effective as of April 1, 2011

Approved by the ePlus Compensation Committee via Directors Desk on April 25, 2011Exhibit 10.1

 

DATED                 , 2011

 

 

SECOND AMENDED AND RESTATED

SHAREHOLDERS AGREEMENT

 

relating to Yandex N.V.

 

 

THE NETHERLANDS

 

 

YANDEX N.V.

 

THIS SECOND AMENDED AND RESTATED SHAREHOLDERS AGREEMENT (the “Agreement”) is executed as of the          day of             2011 (“Execution Date”) by and among each of the entities and persons whose names are listed in the first column of Schedule A hereto (each, a “Shareholder”, and collectively, the “Shareholders”) and the Stichting Yandex Conversion (the “Conversion Foundation”). This Agreement amends and restates in its entirety the Amended and Restated Shareholders Agreement of the Company dated as of October 14, 2008 (as amended, waived or otherwise modified through the time of effectiveness of this Agreement, the “Prior Agreement”).

 

WHEREAS:

 

(A)                               Yandex N.V., a limited liability company incorporated under the laws of the Netherlands, whose registered address is Laan Copes van Cattenburch 52, 2585 GB The Hague, the Netherlands (the “Company”), was incorporated in The Hague on 10 June 2004; and

 

(B)                                 As of the date of this Agreement, the issued shares in the capital of the Company are as set forth in Schedule A hereto (other than shares held by the Conversion Foundation or shares that have been repurchased by the Company and will be cancelled); and

 

(C)                                 the Shareholders and the Conversion Foundation (collectively, the “Parties”) are parties to the Prior Agreement; and

 

(D)                                the Prior Agreement may be varied with the written consent of the Parties holding, in the aggregate, 75% or more by voting power of the total issued share capital of the Company held by all Parties; and

 

(E)                                  The Parties wish to vary, amend and restate the Prior Agreement in its entirety as set forth herein in connection with and conditional upon (i) execution and delivery of this Agreement by Parties holding 75% or more of the total issued share capital of the Company held by the Parties and (ii) the closing of the IPO (as defined below); and

 

(F)                                  Each Party represents to each of the other Parties that it has reviewed this Agreement with the assistance of legal counsel (to the extent it has deemed necessary) and that it is fully aware of the contents of this Agreement and is willing to be legally bound by the terms set out in this Agreement and has taken all necessary corporate action and obtained any and all necessary internal and third party approvals, consents and permits for the transactions and agreements to enter into this Agreement.

 

NOW THEREFORE, in consideration of the above premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows:

 

 

ARTICLE I

Definitions and Interpretation

 

1.1                                  Definitions.

 

In this Agreement (including the Recitals) and the Schedules hereto the following expressions shall have the following meanings unless the context otherwise requires:

 

	
“Affiliate”
    	
 
    	
with   respect to any Person, any other Person that directly, or indirectly through   one or more intermediaries, controls, is controlled by or is under common   control with the subject Person. For purposes of this definition, “control”   (including, with correlative meaning, the terms “controlled by” and “under   common control with”), as used with respect to any Person, shall mean the   possession, directly or indirectly, of the power to direct or cause the   direction of the management and policies of such Person, whether through the   ownership or voting securities, by contract or otherwise
    
	
 
    	
 
    	
 
    
	
“Agreement”
    	
 
    	
this   Second Amended and Restated Shareholders Agreement and all Schedules attached   hereto, as further amended from time to time
    
	
 
    	
 
    	
 
    
	
“Articles”
    	
 
    	
the   Articles of Association of the Company, as amended, set forth as Schedule B   hereto, and as further amended from time to time in accordance with the   Articles and this Agreement
    
	
 
    	
 
    	
 
    
	
“beneficial ownership”, “beneficially   own” and words of similar import
    	
 
    	
shall   have the meaning set forth in Rule 13d-3 of the Exchange Act
    
	
 
    	
 
    	
 
    
	
“Board”
    	
 
    	
the   board of directors of the Company, as constituted from time to time
    
	
 
    	
 
    	
 
    
	
“Business   Day”
    	
 
    	
a   day other than Saturday or Sunday upon which banks are open for business in   Moscow and Amsterdam
    
	
 
    	
 
    	
 
    
	
“Class A   Shares”
    	
 
    	
the   Company’s Class A Ordinary Shares, par value EUR 0.01 per share
    
	
 
    	
 
    	
 
    
	
“Class B   Shares”
    	
 
    	
the   Company’s Class B Ordinary Shares, par value EUR 0.10 per share
    

 

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“Class C   Shares”
    	
 
    	
the   Company’s Class C Ordinary Shares, par value EUR 0.09 per share
    
	
 
    	
 
    	
 
    
	
“Conversion   Foundation”
    	
 
    	
shall   have the meaning set forth in the Preamble
    
	
 
    	
 
    	
 
    
	
“Deed   of Adherence”
    	
 
    	
a   deed of adherence in the same form or substantially the same form as that   executed by the Parties hereto
    
	
 
    	
 
    	
 
    
	
“Director”
    	
 
    	
any   member of the Board
    
	
 
    	
 
    	
 
    
	
“Exchange   Act”
    	
 
    	
the   U.S. Securities Exchange Act of 1934, as amended
    
	
 
    	
 
    	
 
    
	
“Foreign   Ownership Laws”
    	
 
    	
all   laws, decrees, regulations and administrative requirements of the Russian   Federation regarding foreign ownership of businesses in Russia (including   limitations on foreign ownership and requirements for prior approval and/or   notification of transfers or acquisitions of securities of businesses in the   Russian Federation), including, without limitation, the Federal Law of the   Russian Federation on Foreign Investments in Companies Having Strategic Importance   for State Security and Defense (Law No. 57-FZ, effective May 7,   2008), as the same may be amended and in force from time to time
    
	
 
    	
 
    	
 
    
	
“General   Meeting”
    	
 
    	
any   general meeting of the Shareholders of the Company, whether ordinary or   extraordinary
    
	
 
    	
 
    	
 
    
	
“Group”
    	
 
    	
the   Company and all Persons of which the Company directly or indirectly holds at   least 50% of the issued share capital or interests, collectively
    
	
 
    	
 
    	
 
    
	
“IPO”
    	
 
    	
the   Company’s initial underwritten public offering of its Class A Shares   pursuant to an effective registration statement on Form F-1 and the   listing of the Class A Shares on The Nasdaq Global Market
    
	
 
    	
 
    	
 
    
	
“Parties”
    	
 
    	
has   the meaning set forth in the Recitals and “Party” shall mean any one of them
    

 

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“Person”
    	
 
    	
a   natural person, corporation, limited partnership, limited liability company,   general partnership, joint stock company, joint venture, association,   company, trust, bank, trust company, land trust, business trust or other   organization, whether or not a legal entity, or a government or agency or   political subdivision thereof
    
	
 
    	
 
    	
 
    
	
“Prior   Agreement”
    	
 
    	
has   the meaning set forth in the Preamble
    
	
 
    	
 
    	
 
    
	
“Priority   Share”
    	
 
    	
the   Company’s Priority Share, par value EUR 1.00 per share
    
	
 
    	
 
    	
 
    
	
“Share Equivalents”
    	
 
    	
any   option, right, subscription, warrant, phantom stock right or other contract   right to receive Shares or any bonds, notes, debentures or other securities   of any kind whatsoever, that are, or may become, convertible into or   exchangeable or exercisable for, Shares, in each case, that do not carry the   right generally to vote in the election of directors until such time as they   are converted, exchanged or exercised, as the case may be. All Share   Equivalent calculations shall be determined on an as-converted, exchanged or   exercised into Shares basis
    
	
 
    	
 
    	
 
    
	
“Shareholders”
    	
 
    	
has   the meaning given in the Preamble and “Shareholder” shall mean any one of   them
    
	
 
    	
 
    	
 
    
	
“Shares”
    	
 
    	
any   and all Class A Shares, Class B Shares, Class C Shares,   Priority Share and/or voting shares in the capital of the Company of any   other class, by whatever name called, including any additional Shares as may   be issued from time to time in accordance with the Articles and this   Agreement, including through share splits and as share dividends
    

 

1.2                                  Terms Generally.  The words “hereby”, “herein”, “hereof”, “hereunder” and words of similar import refer to this Agreement as a whole (including any Schedules hereto) and not merely to the specific article, section, paragraph or clause in which such word appears.  All references herein to Articles, Clauses, Sections and Schedules shall be deemed references to Articles, Clauses, Sections of, and Schedules to, this Agreement unless the context shall otherwise require.  The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation.” The definitions given for terms in this Article I and elsewhere in this Agreement shall apply equally to both the singular and

 

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plural forms of the terms defined.  References to “he”, “she” or “it”, or any equivalent gender-specific term, shall be deemed to include the masculine, feminine and neuter genders.

 

1.3                                  Headings.  The section headings of this Agreement are for reference purposes only and are to be given no effect in the construction or interpretation of this Agreement.

 

1.4                                  Governing Language.  Should this Agreement be translated into any language other than English, the English version will control and prevail on any question of interpretation or otherwise.

 

ARTICLE II

Board Composition

 

2.1                                 In any and all elections of Directors, each Shareholder shall vote or cause to be voted all Shares owned by it, or over which it has voting control, and otherwise use its respective best efforts, so as to fix the number of Directors at such number as shall be determined by the Board from time to time, and not vote in favour of any person that is not nominated for election as a Director by the Board.

 

2.2                                 In any and all elections of Directors, each Shareholder shall vote or cause to be voted all Shares owned by it, or over which it has voting control, and otherwise use its respective best efforts, so as to elect as a Director each person(s) (and only such person(s)) nominated for election as a Director by the Board, acting by a simple majority of the Directors then in office.

 

2.3                                 Each Shareholder agrees that it shall not vote to remove any Director unless a simple majority of the Directors then in office recommend to the Shareholders that such Director be removed.

 

ARTICLE III

Purchase and Sale Restrictions

 

3.1                                 Compliance with Law; Notice of Certain Transfers.

 

3.1.1                        Each Shareholder agrees that it shall not (and shall cause its Affiliates not to) effect any acquisition, sale or other transfer of Shares or Share Equivalents except in compliance with all Foreign Ownership Laws from time to time applicable to the Group or to any such acquisition, sale or other transfer.

 

3.1.2                        Without prejudice to the restrictions on transfers set out elsewhere in this Article III, each Shareholder agrees that it will provide notice to the Board of any transaction that would require notice to a competent government authority of the Russian Federation under the Foreign Ownership Laws if the Foreign Ownership Laws were then applicable to the Group and such transaction, including, without limitation, notice of any incremental acquisition of Shares or Share Equivalents representing five percent (5%) or more of the then outstanding Shares.

 

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ARTICLE IV

Maintenance of Certain Provisions in the Articles

 

Each of the Shareholders agrees to vote all of the Shares legally or beneficially owned by it from time to time (and to cause to be voted all of the Shares legally or beneficially owned by its Affiliates from time to time), and to take such actions as may reasonably be required, such that, at all times prior to the termination of this Agreement, the following provisions shall remain in place:

 

4.1                                 The Articles shall provide for the authorization of Class A Shares, Class B Shares and Class C Shares, with differential voting rights, as set forth in Article 4 and Article 20 of the Articles.

 

4.2                                 Notwithstanding anything to the contrary set forth in the Articles, the Directors shall be appointed for staggered three-year terms, such that only one-third of the total number of Directors (or as close a number as possible to one-third of the total number of Directors) shall cease to hold office at each Annual General Meeting of the Company.

 

4.3                                 Pursuant to Article 12 of the Articles, a Director may only be suspended or removed from office by the General Meeting acting by resolution approved by at least a two-thirds (2/3) majority of votes cast at a General Meeting, which majority shall represent at least fifty percent (50%) of the then outstanding Shares.

 

4.4                                 The Articles shall provide for authorized preference shares of the Company, as set out in Article 4 of the Articles.

 

4.5                                 Pursuant to Article 28 of the Articles, requirement that certain matters, including an amendment to the Articles, can only be brought to the shareholders of the Company for a vote upon a proposal of the Board.

 

4.6                                 Pursuant to Article 28 of the Articles, a resolution to amend the Articles to conclude a legal merger or demerger or to dissolve the Company shall require a written proposal by the Board and a two-thirds (2/3) majority of the votes cast at a General Meeting.

 

4.7                                 Pursuant to Article 4C of the Articles, the right of the Board to approve the accumulation by a party, group of related parties or parties acting in concert of the legal or beneficial ownership of 25% or more, in number or by voting power, of the Class A Shares and Class B Shares (taken together).

 

4.8                                 Pursuant to Article 4C and Article 14B of the Articles, the rights of the holder of the Priority Share.

 

ARTICLE V

Voting by the Conversion Foundation

 

The Conversion Foundation hereby agrees that it will vote any Class C Shares held by it from time to time on any matter put to the Shareholders for a vote in the same proportion as all other votes are cast at any General Meeting.

 

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ARTICLE VI

Miscellaneous

 

6.1                                 Waivers; Amendments.

 

6.1.1                        No purported amendment, variation, waiver or termination of any provision of this Agreement (other than Article V hereof) shall be effective unless agreed and made in a writing executed by Shareholders party to this Agreement together holding two-thirds or more by voting power of the total issued share capital of the Company held by all Shareholders party to this Agreement. Notwithstanding the foregoing, no amendment, variation, waiver or termination of Article V shall be effective unless agreed and made in a writing executed by (a) Shareholders party to this Agreement together holding two-thirds or more by voting power of the total issued share capital of the Company held by all Shareholders party to this Agreement and (b) the Conversion Foundation. Any amendment, variation, waiver or termination effected in accordance with this Article 6.1 shall be binding upon all Parties and each future party to this Agreement.

 

6.1.2                        A Party’s failure to insist on strict performance of any provision of this Agreement shall not be deemed to be a waiver thereof or of any right or remedy for breach of a like or different nature.

 

6.2                                 Effectiveness; Termination.

 

6.2.1                        Effectiveness.  This Agreement shall only become effective upon (i) the execution and delivery of this Agreement by Parties holding 75% or more by voting power of the total issued share capital of the Company held by the Parties to the Prior Agreement and (ii) the closing of the IPO; provided, however, that if the closing of the IPO does not occur on or prior to October 31, 2011, this Agreement shall be null and void and of no force or effect.  Concurrent with and conditional upon such effectiveness, the Parties agree that the Prior Agreement shall terminate and shall thereafter be of no further force or effect.

 

6.2.2                        Termination.

 

6.2.2.1                                       This Agreement shall terminate on the earlier to occur of (i) the date on which Shareholders party to this Agreement together holding two-thirds or more by voting power of the total issued share capital of the Company held by all Shareholders party to this Agreement agree in writing to terminate this Agreement and (ii) the date on which no Class B Shares remain outstanding.

 

6.2.2.2                                       This Agreement shall terminate with respect to a particular Shareholder effective immediately upon receipt by the Board of written notice by such Shareholder (x) certifying that such Shareholder no longer holds any Class B Shares (as a result of the transfer of all Class B shares held by such Shareholder or the voluntary or mandatory conversion of all Class B Shares held by such Shareholder into Class A Shares pursuant to the Articles), and (y) affirmatively electing to terminate this Agreement with respect to such Shareholder. Notwithstanding any such termination in respect of a particular Shareholder, this Agreement shall thereafter remain in full force and effect with respect to all

 

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remaining Parties hereto in accordance with its terms. Promptly following receipt by the Board of a request from any Party, the Board shall provide such Party a list of the then-current Parties to this Agreement.

 

6.3                                 Further Assurances.  Subject to the terms and conditions herein provided, each of the Parties agrees to use its respective reasonable endeavors to take (and to cause its directors, employees, representatives and agents to take), or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under all applicable laws to carry out and make effective the provisions of this Agreement and to use its respective reasonable efforts to cause any additional agreements provided for herein to be satisfied.

 

6.4                                 Assignment; Share Transfers.

 

6.4.1                        Each Shareholder agrees that it will not (and it will not permit any of its Affiliates to) transfer any Shares other than in compliance with the Articles and this Agreement.  Each Shareholder further agrees that any transfer by it or its Affiliates of Shares in a transaction permitted by the Articles and this Agreement shall be subject to the further condition that any transferee of such Shares shall become a party to this Agreement by executing and delivering a Deed of Adherence; provided, however, that the foregoing requirement shall not apply to any transferee that acquires such Shares in an open market transaction, including a broker’s transaction or broker-assisted block trade (other than any such transaction that is pre-arranged by, or made pursuant to a pre-existing agreement between, the transferring Shareholder and such transferee), or pursuant to any underwritten sale of such Shares to the public, in each case that is otherwise permitted by the Articles and this Agreement.

 

6.4.2                        This Agreement shall be binding on and shall inure to the benefit of each Party’s successors and permitted assigns.

 

6.4.3                        Save as provided otherwise in this Agreement, none of the Parties may, without the written consent of the other Parties, assign any of their respective rights or obligations under this Agreement.

 

6.5                                 No Partnership.  Nothing in this Agreement shall create a partnership or establish a relationship of principal and agent or any other fiduciary relationship between or among any of the Parties.

 

6.6                                 Severability.  Each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law.  If any term or provision in this Agreement shall be held to be illegal or unenforceable, in whole or in part, under any enactment or rule of law, such term or provision or part shall to that extent be deemed not to form part of this Agreement but the enforceability of the remainder of this Agreement shall not be affected.  The parties will substitute the invalid, void or unenforceable provision with a valid and enforceable provision which reflects as near as possible the intention of the parties as referred in the provision thus substituted.

 

6.7                                 Notices.

 

6.7.1                        Any notice or other document to be given under this Agreement shall be in writing and shall be deemed duly given:

 

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(a)                                  if sent (i) by recorded delivery service, (ii) by personal delivery, (iii) by electronic mail or (iv) by facsimile transmission, in each case to the respective contact details of the Parties set out in Schedule A; or, in the case of notice to the Board, to Yandex N.V., Attention:  Board of Directors, Laan Copes van Cattenburch 52, The Hague, the Netherlands, 2585 GB. Tel: +31-70-3454700; with a copy by email to Investor Relations at ez@yandex-team.ru and dbarsukov@yandex-team.ru;

 

(b)                                 or to such other contact details as any of the Parties shall substitute by written notice in accordance with this clause, save that any such substituted contact details shall only be effective five (5) Business Days after delivery of information in accordance with this clause.

 

6.7.2                        Notice shall be deemed to have been given in accordance with this clause as follows:

 

(a)                                  if sent by recorded delivery service, upon delivery at the address of the relevant Party;

 

(b)                                 if sent by personal delivery, upon delivery at the address of the relevant Party;

 

(c)                                  if sent by email, on receipt of electronic confirmation of delivery; and

 

(d)                                 if sent by facsimile, on receipt of an appropriate answerback.

 

6.8                                 Costs.  Each of the Parties shall be responsible for any costs incurred by them in relation to the negotiation and execution of this Agreement.

 

6.9                                 Governing Law.  This Agreement shall be exclusively governed by and construed in accordance with the laws of The Netherlands.

 

6.10                           Arbitration.  All disputes arising out of or in connection with this Agreement, or any agreement resulting therefrom, which cannot be settled amicably, shall be finally settled in accordance with the Arbitration Rules of the Netherlands Arbitration Institute (Nederlands Arbitrage Instituut). The arbitral tribunal shall be composed of three arbitrators. The arbitrators shall decide in accordance with the rules of law. The place of arbitration shall be Amsterdam, The Netherlands. The arbitral procedure shall be conducted in the English language. The arbitral award shall not be made public.

 

6.11                           Entire Agreement; Certain Conflicts.  This Agreement (together with the Schedules hereto) represents the complete agreement and understanding of the Parties hereto in respect of the subject matter contained herein.  This Agreement supersedes all prior agreements and understandings, oral or written, between any Parties or among the Parties with respect to the subject matter hereof including the Prior Agreement, which shall be of no further force and effect upon the effectiveness of this Agreement.

 

6.12                           Compliance with Securities Laws.  Each Shareholder undertakes and agrees to timely make all such filings with the U.S. Securities and Exchange Commission in respect of 

 

9

 

such Shareholder’s purchase, ownership and/or transfer of any Shares or Share Equivalents and otherwise comply with applicable laws and regulations with respect thereto.

 

6.13                           Other Arrangements. Except for and pursuant to this Agreement or as otherwise permitted by this Agreement, no Shareholder shall, nor shall it permit any of its Affiliates to, (i) grant any proxy or enter into or agree to be bound by any understanding or any voting trust, voting proxy or other agreement with respect to any matters relating to the Company, its management, or any Shares or Share Equivalents, (ii) enter into any shareholders agreement or other arrangement of any kind (whether written or oral) with any Person with respect to any matters relating to the Company, its management or any Shares, including any agreement, understanding or arrangement with respect to the acquisition, ownership, registration, transfer or other disposition or voting of Shares or Share Equivalents, or (iii) act, for any reason, as a member of a group or in concert with any other Person in connection with the acquisition, transfer or other disposition or voting of Shares or Share Equivalents, in each case, in any manner that is inconsistent with any obligation of such Shareholder under this Agreement; provided, however, that in no event shall the foregoing prohibit or restrict a Shareholder from selling Shares in an open market transaction, including a broker’s transaction or broker-assisted block trade (other than any such transaction that is pre-arranged by, or made pursuant to a pre-existing agreement between, the transferring Shareholder and such transferee), or in any underwritten offer of such Shares to the public; and further provided that the foregoing shall not apply to the Amended and Restated Registration Rights Agreement dated as of October 14, 2009 by and among the Company and certain of the Shareholders, as amended from time to time.

 

*****

 

IN WITNESS WHEREOF this Agreement was duly executed, by means of execution of the attached Deed of Adherence, as of the date first above written.

 

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DEED OF ADHERENCE

 

By this Deed we the undersigned parties HEREBY AGREE to observe and be bound in all respects by the provisions of the Second Amended and Restated Shareholders Agreement dated as of                                                     2011, a copy of which agreement is attached hereto.

 

	
Signed   for and on behalf of BC&B Holdings B.V.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   for and on behalf of RuNet B.V.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   for and on behalf of Tiger Global Holding Coöperatief U.A.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   for and on behalf of The Alfred and Riqueza Fenaughty Revocable Living Trust
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   by Amilyushenko, Alexey Valeryevich
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   by Andronova, Valentina Pavlovna
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   by Badera Oleg Alekseevich
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   for and behalf of Boynton Family Trust of 2007
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   by Chebunina, Elena Vladimirovna
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   for and on behalf of Chester Neilson Boynton Trust of 2006
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   for and on behalf of Cole Management Incorporated
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   by Daisy Campbell Boynton Trust of 2006
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   by Dostov, Victor Leonidovich
    	
 
    	
 
    

 

 

	
Signed   by Dyson, Esther
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   for and on behalf of Elinor Scout Boynton Trust of 2006
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   for and on behalf of Emerald Trust
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   by Fadeev, Mikhail Alexandrovich
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   by Felman, Dmitry Pavlovich
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   by Golding, Pavel Yurievich
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   by Ilyinsky, Sergey Vladimirovich
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   by Isaev, Artur Aleskandrovich
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   by Ivanov, Vladimir Leontievich
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   for and on behalf of John W. Boynton Trust of 2006
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   for and on behalf of Kameson Management
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   by Khutsyan, Maria
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   by Kolmanovskaya, Elena Savelyevna
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   by Koterov, Dmitry
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   by Maslov, Michael Yurievich
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   for and on behalf of MK Holding Ltd
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   by Polozhintsev, Ilya Dimitrievich
    	
 
    	
 
    

 

 

	
Signed   by Segalovich, Ilya Valentinovich
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   for and on behalf of Stichting Yandex Conversion
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   by Stubblebine, Robert Harvey
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   for and on behalf of Symmetric Trust
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   by Teyblyum, Dmitry Michailovich
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   for and on behalf of Tucker Rawle Boynton Trust of 2006
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   by Umansky, Ilya
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   by Volozh, Arkady Yuryevich
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   for and on behalf of Web Design Ltd
    	
 
    	
 
    

 

 

SCHEDULE B

 

Articles of Association

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