Document:

sec document

                                                                     Exhibit 4.3

                             NESS TECHNOLOGIES, INC.
       Ness Tower, Atidim Building 4 P.O. Box 58152 Tel Aviv 61580 ISRAEL

                                                                          [Date]

To:                             SAP I.D. No.
    -------------------------                -------------------------

            We are pleased to inform you that effective on the date first
written above, the Stock Option and Compensation Committee (the "Committee")
of the Board of Directors of Ness Technologies, Inc. (the "Company") granted you
a stock option pursuant to the Company's 2007 Stock Option Plan (the "Plan"),
to purchase _____ shares (the "Shares") of Common Stock, par value $.01 per
share, of the Company, at a price of $_____ per Share (the "Option").

            The Option becomes vested and may be first exercised in accordance
with the vesting schedule as follows provided that you are still employed by the
Company or any subsidiary of the Company on the relevant date:

            _____ shares on or after [date] [33.3%]

            _____ shares on or after [date] [33.3%]

            _____ shares on or after [date] [33.3%]

            Any tax consequences arising from the grant or exercise of the
Option, its possible acceleration or redemption, from the payment for Shares
covered thereby, shall be borne solely by you. The options granted hereunder
shall be [nonqualified stock options/incentive stock options].

            This Option (or installment thereof) is to be exercised through the
Company's option management system. The exercise of the options will be subject
to the rules and practices applicable to such management system.

            This Option is issued in accordance with and is subject to and
conditioned upon all of the terms and conditions of the Plan (a copy of which in
its present form is attached hereto as Exhibit A), as from time to time amended;
provided, however, that no future amendment or termination of the Plan shall,
without your consent, alter or impair any of your rights or obligations under
this Option. The terms and conditions of the Plan are incorporated by reference
in this option agreement as if fully set forth herein.

            This Option, to the extent not previously exercised or redeemed,
will expire on [date].

            You acknowledge that a registration statement on Form S-8 under the
Securities Act of 1933, as amended (the "Act"), effective on August___, 2007, is
in effect as of this date as to the Shares issuable upon the exercise of this
Option. However, you acknowledge that there may be other applicable legal and
contractual restrictions that may apply to a resale of the Shares and that the
Company is under not obligation to you to inform you of such restrictions or to
assist you in revealing, modifying or canceling such restrictions.

            Would you kindly evidence your acceptance of this option and your
agreement to comply with the provisions hereof and of the Plan by executing this
letter.

Very truly yours,

NESS TECHNOLOGIES, INC. by:                             Title:
                            ---------------------------        -----------------

AGREED TO AND ACCEPTED: ------------------------------         -----------------
                        Name                                   Signature

                                    EXHIBIT A

                 NESS TECHNOLOGIES, INC. 2007 STOCK OPTION PLANc49831_ex10-5.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

EXHIBIT 10.5

     AMENDMENT No. 1, dated as of July 31, 2007 (“Waiver”), executed in connection with the Credit Agreement, dated as of November 23, 2005, and
entered into by and among MTM Technologies, Inc., a New York corporation ("MTM"), MTM Technologies (California), Inc., a Delaware corporation ("MTM-CA"), MTM Technologies (Texas), Inc., a Delaware corporation ("MTM-TX"), MTM Technologies (US), Inc.,
a Delaware corporation ("MTM-US"), MTM Technologies (Massachusetts), LLC, a Delaware limited liability company ("MTM-MA") and Info Systems, Inc., a Delaware corporation ("ISI", MTM, MTM-CA, MTM-TX, MTM-US, MTM-MA and ISI being collectively, the
"Borrowers" and each a "Borrower"); Columbia Partners, L.L.C. Investment Management, as Investment Manager; and National Electrical Benefit Fund, as Lender (as amended or modified, the “Credit Agreement”). Terms which are capitalized in
this Waiver and not otherwise defined shall have the meanings ascribed to such terms in the Credit Agreement. 

     WHEREAS, in a Waiver Letter dated November 10, 2006 (the “November Waiver Letter”) the Investment Manager and the Lender waived compliance by
the Borrowers with the financial covenant contained in Section 6.3(a) of the Credit Agreement (the “Consolidated Senior Leverage Ratio”) and the financial covenant contained in Section 6.3(b) of the Credit Agreement (the “Consolidated
Fixed Charge Coverage Ratio”) (such covenants, as the same existed prior to the amendments set forth in Section One of this Waiver, the “Old Columbia Financial Covenants”) until the end of the four fiscal quarters ending on March 31,
2008;

     WHEREAS, the Borrowers have requested that the Investment Manager and the Lender amend the financial covenants contained in Section 6.3 of the Credit Agreement and
  certain related definition contained in Annex A to the Credit Agreement, and the Investment Manager and the Lender have agreed to the foregoing requests on the terms contained in this Waiver;

     NOW,
    THEREFORE, in consideration of the mutual promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
    follows: 

Section One. Amendment to Credit Agreement.

      (a) Section 1.4 of the Credit Agreement is deleted in its entirety, and following is substituted in lieu thereof: 

      “1.4 Payment Premium Upon the occurrence of the Maturity Date, an acceleration of the Loan due to an Event of Default, a Change of Control, a Liquidity Event or a voluntary
prepayment pursuant to Section 1.8(a) , Borrowers shall pay to Investment Manager, for the benefit of Lender, in addition to all other amounts due hereunder, a payment premium
(the “Payment Premium”) equal to (i) for the period from the Closing Date through and including the First Amendment Date, the amount required to provide the Lender
with an IRR during such time period of eleven percent (11%) per annum, except during any period in which an Event of Default shall have occurred and be continuing, in which case the IRR for such period shall be adjusted to thirteen percent (13%) per
annum and (ii) for the period from the day immediately following the First Amendment Date through the date on which all Obligations have been paid in full, the amount required to provide the Lender with an IRR during such time period of thirteen and
one-half of one percent (13.5%) per annum, except during any period in which an Event of Default shall have occurred and be continuing, in which case the IRR for such period shall be adjusted to fifteen and one-half of one percent (15.5%) per annum,
all in accordance with the calculation examples set forth on Exhibit 1.4 (after giving effect to the modification in the rate of the Payment Premium as set forth in clause (ii)
above).  Notwithstanding anything to the contrary contained herein, in the event of a voluntary partial prepayment made pursuant to Section 1.8(a) or mandatory partial
prepayment made in the event of a Liquidity Event pursuant to Section 1.8(b)(ii) , the Payment Premium shall be calculated assuming the payment of all outstanding principal and
accrued and unpaid interest, whether or not such amounts are actually paid in connection with the subject prepayment.”

      (b) Section 6.3 of the Credit Agreement is deleted in its entirety, and the following is substituted in lieu thereof: 

“6.3 Financial Covenants. Until termination of this Agreement and the full and final payment and satisfaction of all Obligations, each Borrower
agrees:

	(a)	 	Consolidated EBITDA. To cause MTM to have Consolidated EBITDA for each measuring period set forth below of not less than the amount set forth below opposite such
measuring period:
	 	 	 	 
	 

  	 
  	
measuring period
  	
minimum Consolidated EBITDA
  
	 	(i) 	
fiscal quarter ending on or about June 30, 2007
  	
$350,000
  
	 	 	 	 
	 	(ii) 	
two fiscal quarters ending on or about
  	
$1,120,000
  
	 	 	
September 30, 2007
  	 

  
	 	 	 	 
	 	(iii) 	
three fiscal quarters ending on or about
  	
$2,660,000
  
	 	 	
December 31, 2007
  	 

  
	 	 	 	 
	 	(iv) 	
four fiscal quarters ending on or about March
  	
$4,200,000
  
	 

  	 
  	
31, 2008
  	 

  
	 	 	 	 
	(b)	 	Consolidated Fixed Charge
        Coverage Ratio. To cause MTM to
        maintain a Consolidated Fixed Charge Coverage Ratio for each measuring
        period set forth below of not less than the ratio set forth below opposite
    such measuring period:
	 	 	 	 
	 	 	measuring period	minimum Consolidated Fixed
	 	 	 	Charge Coverage Ratio
	 	(i) 	fiscal quarter ending on or
    about June 30, 2007	13 to 1.00
	 	 	 	 
	 	(ii) 	two fiscal quarters ending
    on or about	.25 to 1.00
	 	 	September 30, 2007	 
	 	 	 	 
	 	(iii) 	three fiscal quarters ending
    on or about	.42 to 1.00
	 	 	December 31, 2007	 
	 	 	 	 
	 	(iv) 	four fiscal quarters ending
    on or about March 	.51 to 1.00
	 	 	31, 2008	 
	 	 	 	 
	(b)	 	Consolidated Fixed Charges.
      To cause Parent to incur Consolidated Fixed Charges for each fiscal quarter
      set forth below in an aggregate amount not greater than the amount set
    forth below opposite such fiscal quarter:
	 	 	 	 
	 	 	fiscal quarter ending on
    or about 	maximum Consolidated Fixed
	 	 	 	Charges 
	 	(i) 	June 30, 2007 	$2,655,000 
	 	 	 	 
	 	(ii) 	September
      30, 2007 	$1,739,000 
	 	 	 	 
	 	(iii) 	December 31, 2007 	$1,882,000 
	 	 	 	 
	 	(iv) 	March
      31, 2008 	$2,008,000 
	 	 	 	 

     Section Two. Amendment of Credit Agreement Definitions.  Annex A of the Credit Agreement is amended by adding the terms Consulting Charges and
First Amendment Date, and the definitions thereof, in the appropriate alphabetical order, and by deleting the definitions of the terms Consolidated EBITDA and Consolidated Fixed Charges, and substituting the following in lieu thereof: 

“Consolidated EBITDA” shall mean, for any period, with respect to the MTM and its consolidated Subsidiaries, other than the Excluded
Subsidiaries, all earnings before all interest, tax obligations, depreciation, amortization, stock based compensation and other expense for such period, all determined in conformity with GAAP on a basis consistent with the latest audited financial
statements of MTM, but excluding the effect of extraordinary and/or nonrecurring gains or losses for such period and restructuring and severance costs for up to $250,000 per quarter and a maximum of $750,000 per annum, and, to the extent
included in the calculation of earnings for such period, excluding any Consulting Charges paid during such period.”

  “Consolidated Fixed
  Charges” shall mean, for any period, with respect to MTM and its consolidated Subsidiaries, the sum of (a) all cash interest obligations paid or due during such period, (b) the amount of all scheduled fees
  paid to Senior Bank Lenders during such period, (c) the amount of principal repaid in cash or scheduled to be repaid but not paid on Indebtedness (other than Senior Bank Indebtedness) during such period (including, without limitation, principal
  repayments in respect of any Subordinated Debt, but not including principal repayments in respect of any Indebtedness that is, by its terms, payable only in stock) provided, that, cash payments made in respect of Indebtedness incurred in connection
  with any Permitted Acquisition will be excluded from Consolidated Fixed Charges to the extent that they were made with the proceeds of the Loan or capital contributions (either in the form of equity or Subordinated Debt) and not with the proceeds of
  Senior Bank Indebtedness or other working capital, (d) unfinanced Capital Expenditures incurred during such period, (e) all cash payments made or due in respect of any earnout or similar contingent obligations during such period, provided, that,
  such cash payments will be excluded from Consolidated Fixed Charges to the extent that they were made with the proceeds of the Loan or capital contributions (either in the form of equity or Subordinated Debt) and not with the proceeds of Senior Bank
  Indebtedness or other working capital and (f) all payments made or due in respect of Capital Leases during such period, and (g) all cash charges incurred during such period relating to severance, restructuring and other similar kinds of expenses.
  For avoidance of doubt, the calculation of Consolidated Fixed Charges for any period of determination shall not include any Consulting Charges due or payable during such period.”

  “Consulting
    Charges” shall mean, for any period, the fees and disbursements due or payable in cash during such period by MTM to Carl Marks Associates for the consulting services
    provided to the Borrowers by such consultant pursuant to the requirements of Section 7.2(h)(vii) of the CIT Financing Agreement.” 

  
“First Amendment Date” shall mean July 31, 2007.

     Section Three. Effect of the November Waiver Letter. The parties agree that the November Waiver Letter
shall (i) have no impact on, and shall not operate as a waiver of, compliance by MTM, after the effective date of this Waiver, with the financial covenants set forth in Section One of this Waiver (collectively, the “New Columbia Financial
Covenants”), and (ii) continue to be applicable with respect to the Old Columbia Financial Covenants for all applicable periods on and prior to the effective date of this Waiver, the parties agreeing for the avoidance of doubt that as of and
for the four quarters ended March 31, 2007 that the November Waiver Letter continues to waive compliance by MTM with the Old Columbia Financial Covenants through and including the four quarters ended March 31, 2008. 

     Section Four. Representations and Warranties. To induce the Investment Manager and the Lender to enter into this Waiver, each of the Borrowers
hereby warrants and represents to the Investment Manager and the Lenders as follows: 

     (a) all of the representations and warranties contained in the Credit Agreement and each other Loan Document to which such Borrower is a party continue
to be true and correct in all material respects as of the date hereof, as if repeated as of the date hereof, and (ii) to the extent of changes resulting from transactions expressly 

permitted by the Credit Agreement, this Waiver or any of the other Loan Documents, or to the extent that such representations and warranties are expressly made only as of an earlier date; 

     (b) the execution, delivery and performance of this Waiver by such Borrower is within its corporate powers, has been duly authorized by all necessary
corporate action, and such Borrower has received all necessary consents and approvals, if any are required, for the execution and delivery of this Waiver; 

     (c) upon the execution of this Waiver, this Waiver shall constitute the legal, valid and binding obligation of such Borrower, enforceable against such
Borrower in accordance with its terms, except as such enforceability may be limited by (i) bankruptcy, insolvency or similar laws affecting creditors’ rights generally and (ii) general principles of equity; and 

     (d) neither the execution and delivery of this Waiver, nor the consummation of the transactions herein contemplated, nor compliance with the provisions
hereof will (i) violate any law or regulation applicable to any Borrower, (ii) cause a violation by any Borrower of any order or decree of any court or government instrumentality applicable to it, (iii) conflict with, or result in the breach of, or
constitute a default under, any indenture, mortgage, deed of trust, or other material agreement or material instrument to which any Borrower is a party or by which it may be bound, (iv) result in the creation or imposition of any lien, charge, or
encumbrance upon any of the property of any Borrower, except in favor of the Investment Manager and the Lender, to secure the Obligations, (v) violate any provision of the Certificate of Incorporation, By-Laws or any capital stock provisions of any
Borrower, or (vi) be reasonably likely to have a Material Adverse Effect. 

     Section Five. General Provisions.

     (a) Except as herein expressly amended, the Credit Agreement and all other agreements, documents, instruments and certificates executed in connection therewith, are ratified and confirmed in
all respects and shall remain in full force and effect in accordance with their respective terms.

     (b) To induce the Investment Manager and the Lender to enter into this Waiver, the Borrowers, jointly and severally, represent and warrant to the Investment Manager and the Lender that except
for the Events of Default set forth in the November Waiver Letter, or any prior waiver letters executed by parties, no other Event of Default has occurred. 

     (c) This Waiver embodies the entire agreement between the parties hereto with respect to the subject matter hereof and supercedes all prior agreements, commitments, arrangements, negotiations
or understandings, whether written or oral, of the parties with respect thereto. 

     (d) This Waiver shall be governed by and construed in accordance with the internal laws of the State of New York, without regard to the conflicts of law principles thereof. 

     IN WITNESS WHEREOF, the parties to this Waiver have signed below to indicate their agreement with the foregoing and their intent to be bound thereby.

	
COLUMBIA PARTNERS, L.L.C. INVESTMENT
  
	
MANAGEMENT,
  
	
as Investment Manager
  
	 

  
	 

  
	
By: /s/ Jason Crist
  
	
Name: Jason Crist
  
	
Title: Managing Director
  
	 

  
	 

  
	
NATIONAL ELECTRICAL BENEFIT FUND,
  
	
as Lender
  
	
By: Columbia Partners, L.L.C.
  
	
Investment Management, its Authorized Signatory
  
	 

  
	 

  
	
By: /s/ Jason Crist
  
	
Name: Jason Crist
  
	
Title: Managing Director
  

	
MTM TECHNOLOGIES, INC.,
  
	
for itself and as Borrowing Agent, and as successor by merger
  
	
with each of MTM Technologies (California), Inc., and MTM
  
	
Technologies (Texas), Inc.
  
	 

  
	 

  
	
By: /s/ J.W. Braukman III
  
	
Name:   J.W. Braukman III
	
Title:   Senior Vice President and Chief Financial Officer
	 

  
	 

  
	
MTM TECHNOLOGIES (US), INC.
  
	 

  
	
By: /s/ J.W. Braukman III
  
	
Name:   J. W. Braukman III
	
Title:   Senior Vice President and Chief Financial Officer
	 

  
	
INFO SYSTEMS, INC.
  
	 

  
	
By: /s/ J.W. Braukman III
  
	
Name:   J.W. Braukman III
	
Title:   Senior Vice President and Chief Financial Officer
	 

  
	
MTM TECHNOLOGIES (MASSACHUSETTS), LLC
  
	 

  
	
By: /s/ J.W. Braukman III
  
	
Name:   J.W. Braukman III
	
Title:   Senior Vice President and Chief Financial Officer

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