Document:

Exhibit 10.9

 

DATED THE 15th January 2013

 

LUXOFT HOLDING, INC.

 

and

 

LUXOFT INTERNATIONAL COMPANY LIMITED

 

and

 

LUXOFT EASTERN EUROPE LTO

 

and LUXOFT

 

USA, INC, and

 

BNP PARIBAS DUBLIN BRANCH

 

 

UNCOMMITTED RECEIVABLES
 PURCHASE AGREEMENT

 

 

 

THIS AGREEMENT is entered into on the 15th day of January 2013

 

BETWEEN

 

(1)                                 Luxoft Holding, Inc. with its registered office at Akara Bldg., 24 De Castro Street, Wickhams Cay I, PO box 3136 Road Town, Tortola, BVI

 

(2)                                 Luxoft International Company Limited with its registered office at Themistokli Dervi, 5, Elenion building, 2nd Floor, 1066 Nicosia, Cyprus

 

(together with their Approved Subsidiaries, the “Assignors” and Individually an “Assignor”);

 

(3)                                 Luxoft Eastern Europe Ltd., with its registered office at 33 Porter Road, P.O. Box 3169 PMB 103, Road Town, Tortola, British Virgin Islands;

 

(4)                                 Luxoft USA, Inc. with Its address at 225 West 34th street, Ste. 1707-06, New York, NY, 10122, (together the “Approved Subsidiaries” and individually an ‘Approved Subsidiary”);

 

(5)                                 BNP Paribas Dublin Branch with its registered office at 5 George’s Dock, I.F.S.C., Dublin 1 (the “Bank”)

 

WHEREAS

 

(A)                               The Assignor is a provider of IT Services (the “Services”).

 

(B)                               The Assignor supplies Services to a number of Obligors.

 

(C)                               The Assignor wishes to sell certain receivables, due from the Obligors, to the Bank.

 

(D)                               The Bank is willing, from time to time, on an uncommitted basis to purchase certain receivables satisfactory to the Bank, on and subject to the terms of this Agreement.

 

IT IS AGREED:

 

1.                                      DEFINITIONS AND INTERPRETATION

 

1.1                               Definitions

 

In this Agreement and schedules:

 

	
Applicable Law
    	
 
    	
means   the laws of England
    
	
 
    	
 
    	
 
    
	
Approved Subsidiary
    	
 
    	
means,   as of the date hereof:
    
	
 
    	
 
    	
(i) Luxoft   Eastern Europe Ltd., and
    
	
 
    	
 
    	
(ii) Luxoft   USA, Inc;
    
	
 
    	
 
    	
plus   any other Approved Subsidiary as may be agreed between the parties hereto   from time to time.
    
	
 
    	
 
    	
 
    
	
Assignor
    	
 
    	
means   Luxoft Holding, Inc., Luxoft International Company Limited and any   Approved Subsidiary.
    
	
 
    	
 
    	
 
    
	
Assignment Agreement
    	
 
    	
means   an assignment by the Assignor In favour of the Bank In the form set out in   Appendix II
    

 

2

 

	
Assignment Notice
    	
 
    	
means   an undated notice of assignment In the form set out in Appendix III;
    
	
 
    	
 
    	
 
    
	
Business Day
    	
 
    	
shall   be construed as a reference to a day (other than a Saturday or Sunday) on   which banks are generally open for business in Dublin;
    
	
 
    	
 
    	
 
    
	
Collection Account
    	
 
    	
means   the account into which the Assignor In its role as Collection Agent collects   the proceeds of the Purchased Receivables on behalf of the Bank;
    
	
 
    	
 
    	
 
    
	
Collection Agent
    	
 
    	
has   the meaning given to that term in clause 4.1;
    
	
 
    	
 
    	
 
    
	
Commercial Dispute
    	
 
    	
means   any dispute between an Obligor and the Assignor with respect to a Purchased   Receivable, including any alleged or actual defects or shortages In the   quality or quantity of products supplied by the Assignor, any return of goods   or any alleged or actual failure to comply with the terms of a Contract or   other agreement relating to the Purchased Receivable provided such   circumstances entail late payment. For the avoidance of doubt, late payment   by a solvent Obligor more than 30 (thirty) days after the Maturity Date of   the relevant Invoice (plus any applicable Grace Period) shall be deemed to be   a Commercial Dispute;
    
	
 
    	
 
    	
 
    
	
Consolidated Maturity Date
    	
 
    	
means,   for Purchased Receivables whose Maturity Date falls between the Saturday of   one week and the Friday of the next week, the Friday of that next week.
    
	
 
    	
 
    	
 
    
	
Contract
    	
 
    	
means   a contract between an Obligor and the Assignor entered into in the ordinary   course of the Assignor’s business, in respect of the supply of Services;
    
	
 
    	
 
    	
 
    
	
CTPR System
    	
 
    	
means   CTPR System ® means the Bank’s communication tool accessible via the Internet   to enable clients to offer various receivables for sale to the Bank and for   the loading approval and monitoring of such receivables on a platform, the   terms of use of which are set out In Appendix IV;
    
	
 
    	
 
    	
 
    
	
Discount Amount
    	
 
    	
means   the amount calculated as per the following formula:

where

DA   means Discount Amount

FA   means Face Amount

DR   means Discount Rate

DP   means Discount Period
    
	
 
    	
 
    	
 
    
	
Discount Period
    	
 
    	
means,   in respect of a Purchased Receivable, the period beginning on the Purcha.se   Date and ending on the Consolidated Maturity Date plus any Grace Period;
    
	
 
    	
 
    	
 
    
	
Discount Rate
    	
 
    	
means   EURIBOR, GBP LIBOR, USD LIBOR whichever is
    

 

3

 

	
 
    	
 
    	
applicable,   or the Bank’s actual cost of funds for the period, whichever shall be the   higher, plus, for each Obligor the margin as set out opposite to Its name In   Schedule 1 on a 360/365 days basis (as applicable);
    
	
 
    	
 
    	
 
    
	
Eligible Receivable
    	
 
    	
means   Receivables that:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
a)
    	
are   generated and held by the Assignor In the ordinary course of its business   from the sale of Services to an Obligor pursuant to the Contract and which   Services have been delivered to the relevant Obligor;
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
b)
    	
are   current and the underlying sale related supply of IT services description of   which Is Inserted In the relevant Invoice, and does not relate to the trade of   commodity paper or other financial instruments
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
c)
    	
are   free from fraud, dilutions, credit notes or Commercial Dispute;
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
d)
    	
are   due and payable to the Assignor under the Contract, are not subject to any   discount, rebate, offset or adjustment and relate to Services which have been   received by the Obligor;
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
e)
    	
are   free from any liens or security Interests and have not been previously   pledged, sold, assigned or transferred;
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
f)
    	
are   due without being subject to the Assignors performance of any additional   service for, or Incurrence of any additional obligation to the Obligor;
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
g)
    	
are   not subject to restriction on assignments or related documents;
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
h)
    	
are   denominated In the Relevant Currency;
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
i)
    	
are   evidenced by an Invoice that has been accepted by the relevant Obligor,
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
j)
    	
are   payable free and clear of any deduction by way of Tax, set-off or otherwise;
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
k)
    	
for   which an Assignment Notice has been received; and
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
l)
    	
are   not due from an entity that is related to an Assignor or any Approved   Subsidiary.
    
	
 
    	
 
    	
 
    
	
EUR
    	
 
    	
means   the lawful currency of the participating member states of the European Union   which have adopted the single currency In accordance with the EC Treaty of   Rome dated 25 March, 1957 (as subsequently amended);
    
	
 
    	
 
    	
 
    
	
EURIBOR
    	
 
    	
(a)                                 the   percentage rate per annum determined by the European interbank market for   deposits in the Relevant Currency for a duration equal to or comparable to   the duration of such Discount Period which
    

 

4

 

	
 
    	
 
    	
appear   on the relevant Reuters Monitor Money Rates Service page at or about   11:00 am Paris time, two working days before the first day of such Discount   Period; or
    
	
 
    	
 
    	
(b)                                 If no such   page is available for the relevant interest period, the arithmetic mean   of the rates as supplied to the Bank at its request quoted by the reference   banks, periodically agreed between the parties to this Agreement, to leading   banks in the European interbank market, two working days before the first day   of such Funding Period for deposits in the Relevant Currency for a duration   equal to or comparable to the duration of such Discount Period; or
    
	
 
    	
 
    	
(c)                               if such rates do not   adequately and fairly reflect the cost of funding of the Bank, the rate that   the Bank will notify In writing to the Assignor two working days before the   first day of such Discount Period or In each case such other day on which It   Is market practice in the relevant interbank market for prime banks to give   quotations for deposits In the Relevant Currency for delivery on the first   day of the relevant Discount Period.
    
	
 
    	
 
    	
 
    
	
Event of Recourse
    	
 
    	
means   any of the events specified In Clause 11;
    
	
 
    	
 
    	
 
    
	
Face Amount
    	
 
    	
means, In   relation to a Receivable, the amount of the relevant Invoice less any discounts,   rebates, offsets or adjustments fixed In such Invoice and not subject to   change;
    
	
 
    	
 
    	
 
    
	
Facility Amount
    	
 
    	
means   USD 10,000,000 (ten million US Dollars) being the total aggregate amount of   Purchased Receivables the Maturity Date of which has not yet occurred or in   relation to which an Obligor Default is outstanding at any one time under   this Agreement;
    
	
 
    	
 
    	
 
    
	
Facility Currency
    	
 
    	
means   EUR, GBP and USD, as applicable;
    
	
 
    	
 
    	
 
    
	
GBP
    	
 
    	
means   Pounds Sterling, the lawful currency of Great Britain;
    
	
 
    	
 
    	
 
    
	
Grace Period
    	
 
    	
means   a period of 6 (six) Business Days following the Consolidated Maturity Date;
    
	
 
    	
 
    	
 
    
	
Invoice(s)
    	
 
    	
means   an Invoice or invoices issued (by the Assignor) for payment for goods or   Services supplied by the Assignor to an Obligor. pursuant to a Contract;
    
	
 
    	
 
    	
 
    
	
Invoice List
    	
 
    	
means   a list of the Eligible Receivables that are the subject of any one Purchase   Request which sets out the number of each Invoice evidencing an Eligible   Receivable, the amount and issuance date of such Invoice, the Maturity Date   of each Eligible Receivable, the reference number relating to transport and   delivery of the underlying services and/or goods (if applicable) and Is   evidenced by an Assignment Agreement;
    
	
 
    	
 
    	
 
    
	
LIBOR
    	
 
    	
(a)                                 the   percentage rate per annum determined by the London interbank market for   deposits in the Relevant Currency for a duration equal to or comparable to   the duration of such Discount Period which appear on the relevant Reuters   Monitor Money Rates Service page at or about 11:00 am London time, two   working days before the first day of such Discount Period; or
    
	
 
    	
 
    	
(b)                                 If no such   page is available for the relevant interest period, the arithmetic mean   of the rates as supplied to the Bank at its request
    

 

5

 

	
 
    	
 
    	
quoted   by the reference banks, periodically agreed between the parties to this   Agreement, to leading banks In the London Interbank market, two working days   before the first day of such Funding Period for deposits In the Relevant   Currency for a duration equal to or comparable to the duration of such   Discount Period; or
    
	
 
    	
 
    	
(c)                                  if such rates   do not adequately and fairly reflect the cost of funding of the Bank, the   rate that the Bank will notify In writing to the Assignor two working day   before the first day of such Discount Period or in each case such other day   on which It Is market practice in the relevant interbank market for prime   banks· to give quotations for deposits in the Relevant Currency for delivery   on the first day of the relevant Discount Period.
    
	
 
    	
 
    	
 
    
	
Maturity Date
    	
 
    	
means   the date by which the relevant Obligor Is obliged to make payment of any and   all sums due in respect of a Purchased Receivable, which date shall not be   more than the number of days set out opposite to Its name In Schedule 1 from   the date of the relevant Invoice, which date shall not exceed 90 (ninety)   days;
    
	
 
    	
 
    	
 
    
	
Obligor
    	
 
    	
selected   clients with specific Individual sub-limit per Obligor (the addresses and   sub-limits of which are set out In the Schedule I hereto) or any other such   person or entity approved from time to time by the Assignors and the Bank;
    
	
 
    	
 
    	
 
    
	
Obligor Default
    	
 
    	
means, In   respect of a Purchased Receivable, the Obligor failing to pay the Face Amount   before close of business on the Consolidated Maturity Date for that Purchased   Receivable;
    
	
 
    	
 
    	
 
    
	
Purchase Date
    	
 
    	
means,   in relation to a Purchased Receivable, the date upon which such Purchased   Receivable Is purchased by the Bank. There shall not be more than four   (4) Purchase Dates per calendar month;
    
	
 
    	
 
    	
 
    
	
Purchase Price
    	
 
    	
means,   in relation to a Purchased Receivable, the amount calculated by the Bank and   confirmed by the Assignor as the Face Amount of such Purchased Receivable   less the Discount Amount;
    
	
 
    	
 
    	
 
    
	
Purchased
    	
 
    	
means   a request presented by the Assignor who enters the requisite details of one   or more Receivables onto the CTPR System;
    
	
 
    	
 
    	
 
    
	
Receivable Purchase
    	
 
    	
means   an Eligible Receivable purchased by the Bank pursuant to this Agreement;
    
	
 
    	
 
    	
 
    
	
Request Receivable
    	
 
    	
means   the legal, valid, binding and enforceable Assignor’s right, title and   Interest to receive an amount payable by the Obligor under a payment   instrument, including (i) any right to interest for late payment of   which the Assignor is the beneficiary, and (II) any rights accruing to,   derived from or otherwise connected with the Contract as security for the   payment and discharge of the Receivables under a Contract which is evidenced   by an Invoice and offered by the Assignor for purchase by the Bank under this   Agreement;
    
	
 
    	
 
    	
 
    
	
Relevant Currency
    	
 
    	
means   EUR, GBP or USD , being the currency In which the
    

 

 

	
Receivables   will be denominated;
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Relevant Documents
    	
 
    	
means   this Agreement, each Purchased Receivable, each Purchase Request, each   Assignment Agreement, each Assignment Notice and any other side letter or   document executed or to be executed In connection with any Purchased   Receivable;
    
	
 
    	
 
    	
 
    
	
Tax
    	
 
    	
means   any tax, levy, impost, duty or other charge or withholding of a similar   nature (including any penalty or interest payable in connection with any   failure to pay or any delay In paying any of the same);
    

 

1.2                               Any reference in this Agreement to any Relevant Document or any other agreement or document shall be construed as a reference to such Relevant Document or, as the case may be, such other agreement or document as the same may have been, or may from time to time be amended, varied, novated or supplemented.

 

1.3                               A payment shall be construed as payment in cleared funds.

 

1.4                               References to clauses, appendices and schedules are to clauses, appendices and schedules in this Agreement. Clause and appendix and schedule headings are for ease of reference only.

 

1.5                               Words importing the singular shall include the plural and vice versa.

 

1.6                               Unless expressly provided to the contrary in this Agreement, a person who is not expressly a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act, 1999 to enforce or to enjoy the benefit of any term of this Agreement. Notwithstanding any term of this Agreement, the consent of any person who is not an express party to this Agreement is not required to rescind or vary this Agreement at any time.

 

2.                                      THE FACILITY

 

2.1                               The Bank hereby agrees to provide an uncommitted facility to the Assignor, up to the Facility Amount, from the date of this Agreement.

 

2.2                               The Assignor may, from time to time but not more than 4(four) times per calendar month, by submitting, via the CTPR System, a Purchase Request to the Bank, request that the Bank purchase one or more Eligible Receivables at the Purchase Price.

 

2.3                               The Bank, at its absolute discretion, may agree to purchase any of those Eligible Receivables for the Purchase Price up to the Facility Amount. The Bank has no commitment to purchase any Eligible Receivables. Each Purchase Request shall be reviewed by the Bank on a case by case basis, within two (2) Business Days of the receipt of same by the Bank, and its decision to agree to or refuse a Purchase Request, which shall be conveyed to the Assignor within the two (2) Business Day period, shall be at Its sole discretion and Irrespective of whether or not the Assignor Is in compliance with the terms and conditions of this Agreement.

 

3.                                      PURCHASE OF ELIGIBLE RECEIVABLES

 

3.1                               Purchase Request and Conditions Precedent

 

3.1.1                     The Assignor shall submit or present Purchase Requests:

 

a)                                     In the case of the first Purchase Request only, after the completion or receipt, to the satisfactio

 

 

of the Bank, of the conditions precedent set out In Appendix I;

 

b)                                     not later than 3 (three) Business Days before the proposed Purchase Date, or such later date as the Bank may expressly agree; and

 

c)                                      on the condition that the proposed Purchase Date in the Purchase Request Is a Business Day,

 

d)                                     on the condition that the Maturity Date of each Invoice Included In the Invoice List of such Purchase Request, falls not less than 15 (fifteen) days and not later than 90 (ninety) days after the relevant Purchase Date,

 

e)                                      on the condition that It would not, when Receivables proposed for purchase are aggregated with the aggregate outstanding amount of Purchased Receivables as at the date the Bank purchases the proposed Receivables, cause the Facility Amount to be exceeded,

 

f)                                       on the condition that an undated Assignment Notice has been received. and such submission or presentation shall oblige the Assignor to sell to the Bank the Receivable(s) specified In such Purchase Request, which the Bank agrees to purchase.

 

3.1.2                     The Assignor may not submit Purchase Requests for amounts Jess than EUR 50,000 (fifty thousand Euro equivalent).

 

3.2                               Purchase of Eligible Receivables

 

3.2.1                     The Bank may agree entirely at its discretion to purchase any Eligible Receivable pursuant to a Purchase Request.

 

3.2.2                     The Assignor will utilize the CTPR System and the Assignor will follow the procedures in the CTPR System manual for the Issuing of its Purchase Requests and Invoices electronically. In the event that the CTPR System is unavailable the Assignor will present to the Bank a Purchase Request together with an Invoice List and a duly executed but undated Assignment Agreement relating to the Receivables referred to in the Purchase Request.

 

3.2.3                     The Purchased Receivables shall be assigned to the Bank pursuant to the Assignment Agreement, together with any future claims (including, but not limited to, claims for damages for breach of contract and rights to compel the performance of contract duties and delivery of goods and claims arising under or in connection with any Indemnity, guarantee or other support) under, or arising In connection with such Purchased Receivables.

 

3.3                               Calculation of Purchase Price

 

3.3.1                     The aggregate Purchase Price of Purchased Receivables In any Invoice List will be calculated by the CTPR System or by using an excel spreadsheet or other electronic tool.

 

3.3.2                     The Bank will monitor the timeliness of payments received in respect of Purchased Receivables and reserves the right, with the prior consent of the Assignor, to Increase or decrease the Discount Rate and I or the Grace Period for future purchases of Eligible Receivables.

 

4.                                      COLLECTION OF PURCHASED RECEIVABLES

 

4.1                               Collection Agent

 

Until an Obligor has been notified of the purchase of any Purchased Receivables owing by it, the Assignor is hereby appointed to collect the Purchased Receivables on behalf of the Bank (the

 

 

“Collection Agent”) and the Assignor accepts such appointment. The Assignor acknowledges and confirms that all cheques and remittances of any form from Obligors to the Bank received by the Assignor in its role as Collection Agent shall be received and held by the Assignor on trust for the sole benefit of the Bank. All proceeds of Purchased Receivables received by the Assignor shall be paid directly into a Collection Account.  The Assignor shall pay any default interest received from Obligors pursuant to the Contracts In full directly Into a Collection Account.  The Assignor acknowledges that collection funds in the Collection Account are held by it on trust for, and belong to the Bank. The Assignor shall remit to the Bank, into the account notified from time to time by the Bank to the Assignor, all proceeds of a Purchased Receivable received by the Assignor at the Maturity Date of such Receivable, or at the first Consolidated Maturity Date following the collection date in case of collection on or later than the Maturity Date of such Receivable.

 

4.2                               Collection Activities

 

The Assignor shall take (a) such action for due collection of the Purchased Receivables as it would take for Receivables held for its own account (and shall use the same or greater level of care In connection therewith) and (b) such additional action from time to time reasonably required by the Bank. Such action shall include, but not be limited to, periodic reminders either In writing or through follow-up telephone calls. The Assignor may not delegate such collection activities, whether in whole or in part, without the Bank’s prior written consent.

 

4.3                               Assignment Notices

 

The Assignment Notices will not as a matter of course be sent to the Obligors but in the event that the Bank considers that there has been a material adverse change In the status or business of the Assignor, the Bank may at any time at its sole discretion, reasonably exercised, send Assignment Notices to all or any Obligors In order to notify such Obligors of the assignment to the Bank of all or any Purchased Receivables owing by such Obligors. The Bank will not provide any Information on the detailed terms of its purchase of the Purchased Receivables to the Obligors without the prior written consent of the Assignor.

 

4.4                               Audits

 

The Bank may upon reasonable advance notice perform an audit of the Assignor’s credit control and collection procedures described in Clause 4.2 above. The Assignor agrees and undertakes to provide all reasonable assistance In connection with such audit which the Bank may request and, in particular (but without limitation) to provide the Bank with evidence of the Assignor’s performance of the collection activities and the details of its collection procedures.

 

5.                                      PAYMENTS

 

5.1                               Place, Time and Manner

 

5.1.1                     All payments due to be made under this Agreement by the Assignor to the Bank shall be:

 

(a)                                 made In the Relevant Currency and, unless expressly provided otherwise, on the due date in same day funds (settled In such manner as the Bank shall specify as being customary at the time for the settlement of international transactions of the type contemplated by this Agreement);

 

(b)                                 made to the account of the Bank or that of its assignees as the Bank or its assignees shall from time to time notify to the Assignor; and

 

(c)                                  calculated and made without (and free and clear of any deduction for) set-off or counterclaim

 

 

5.1.2                     All payments of the Purchase Price to be made by the Bank to the Assignor under this Agreement shall be paid In the Relevant Currency into the account of the Assignor notified to the Bank in the Purchase Request within three (3) Business Days of the receipt of the Purchase Request.

 

5.2                               Business Day Convention

 

If any sum payable by the Assignor or the Bank under this Agreement shall become due on a day which is not a Business Day, the due date therefore shall be extended to the next succeeding Business Day in the same calendar month (If there is one) or the preceding Business Day (if there is not).

 

5.3                               Calculations

 

All calculations of discount and payments under this Agreement of a periodic nature shall accrue from day-to-day and shall be calculated on the basis of the actual number of days elapsed in a year containing 360 days.

 

6.                                      NON-RECOURSE

 

6.1                               The Bank agrees that:

 

(a)         upon the purchase of a Receivable by the Bank from the Assignor, the Bank shall have no recourse to the Assignor In relation to a Purchased Receivable except where the non-payment of the Purchased Receivable is as a result of an Event of Recourse, in which case the Bank will have the rights set out In clause 6.2 hereof.

(b)         For the avoidance of doubt, nothing herein shall in any way limit any other rights the Bank may have under any Relevant Document.

 

6.2                               If an Obligor Default occurs In relation to a Purchased Receivable as a result of an Event of Recourse and that non-payment extends for a period of thirty (30) days following the relevant Purchased Receivable’s Consolidated Maturity Date:

 

(a)         the Assignor will repurchase the relevant Receivables by remitting to the Bank on written demand an amount equal to the amount which Is due and payable by the Obligor in relation to the relevant Receivables together with interest as calculated under clause 6.2 (b) below, on the amount of such unpaid Receivable;

 

(b)         Interest due under Clause 6.2 (a) shall accrue (i) on the amount of the relevant Receivable that remains unpaid (either by the Obligor or by the Assignor In accordance with clause 6.2.(a)), (ii) at EURIBOR plus 4.00% and (iii) for the period from 30 days following the last day of the Grace Period In respect of the relevant Purchased Receivable to and including the date of actual receipt by the Bank of the relevant amount (either from the relevant Obligor or from the Assignor In accordance with clause 6.2.(a)) as cleared funds paid in full into Its nominated account;

 

(c)          immediately following the receipt of payment from the Assignor under Clauses 6.2 (a) the Bank unconditionally and irrevocable extinguishes Its right, title and interest in and to such Receivable and, If relevant,  will take such steps as are necessary to reassign the Receivable to the Assignor, and

 

(d)         if the Bank receives or recovers the payment from a party other than the Assignor In connection with a Receivable repurchased by the Assignor under clause 6.2(a), the Bank will deliver such payment to the Assignor as soon as practicable, but not later than three (3) Business Days after notification by the Assignor of the occurrence of such error. Pending delivery any amounts so received or recovered will be held by the Bank on trust for the Assignor and the Bank will have no right, title or interest thereto.

 

10

 

6.3                               Assistance by Assignor for purposes of Enforcement by the Bank

 

If an Obligor does not make payment under a Purchased Receivable as required and the Bank institutes legal or any other proceedings in order to collect payment, the Assignor must provide the Bank with such information and assistance as the Bank may reasonably request for the purpose of assisting It in those proceedings, including the provision of evidence and witnesses and the execution of any further documentation required.

 

6.4                               Indemnity for Non-Eligibility

 

The Assignor agrees to indemnify the Bank on demand against any loss, expense or liability resulting from any Purchased Receivable purchased by the Bank from the Assignor not being an Eligible Receivable, whether or not the Bank has attempted to enforce any rights against the Obligor or any other person.

 

7.                                      REPRESENTATIONS AND WARRANTIES

 

7.1                               Making and Repeating Representations and Warranties

 

7.1.1                     The Assignor makes the representations and warranties set out In Clause 7.2 on its own behalf for the benefit of the Bank (a) as at the date of this Agreement, (b) on each day on which a Purchase Request is delivered and (c) on each Purchase Date, as if made on each such date with reference to the facts and circumstances then existing.

 

7.1.2                     As far as a particular representation is made of a Receivable, it is made only in respect of that Receivable referred to in the relevant Purchase Request or in relation to which payment Is made on the relevant Purchase Date.

 

7.2                               Representations and Warranties

 

The Assignor represents and warrants that:

 

(a)         the Assignor Is duly organized and validly exists under the laws of the country of Its incorporation and possesses the capacity to sue or to be sued in its own name and the power to own its property and assets and carry on its business as It is now being conducted;

 

(b)         the Assignor Is duly authorized to enter into each Relevant Document to which it is or will be a party and the transactions contemplated thereby and each person who executed or will execute any of the Relevant Documents on its behalf was or will be duly and properly authorized to do so;

 

(c)           the Relevant Documents to which the Assignor is a party constitute or when executed will constitute the Assignor’s legal, valid and binding obligations subject to the principle that equitable remedies may be granted or refused at the discretion of a court, the limitations Imposed by laws relating to bankruptcy, insolvency, liquidation, court schemes, moratoria and administration and other laws generally affecting the rights of creditors and the time barring of claims due to the effluxion of time;

 

(d)          the Assignor is the legal and the beneficial owner of each of the Receivables;

 

(e)           all of the Purchased Receivables are owed to the Assignor without any restriction whatsoever and are freely assignable without infringing any third party’s rights and the Assignor has not and

 

 

will not grant any assignment or create any security in respect of the Purchased Receivables In favour of any other party;

 

(f)            each of the Purchased Receivables is an Eligible Receivable;

 

(g)           there are no claims pending or {to the best of its knowledge) threatened, in writing, in relation to any Contracts which are the subject of Purchased Receivables and the Purchased Receivables are not subject to any set-off or counterclaim and If any such claims should arise the Assignor will immediately Inform the Bank of such;

 

(h)          the Face Amount of each Purchased Receivable is the amount that will be owing from the relevant Obligor on the Maturity Date and each Invoice listed In the Invoice List Is complete and without any deletions, erasures or cancellations;

 

(i)             no Event of Recourse is outstanding;

 

(j)             to the best of its knowledge and belief, the Assignor Is not aware of any reason why the Obligor will not pay the amount payable under any Purchased Receivable on the Maturity Date thereof;

 

(k)          the Assignor has taken all necessary corporate action to approve the assignment of the Receivables pursuant to a Purchase Request;

 

(I)            the Assignor has performed all of its obligations under the Contracts so far as they relate to a Receivable offered for purchase hereunder and In particular and without limitation it has delivered or has arranged to deliver all goods and/or performed or has arranged to perform all Services as are due and required under the Contract in respect of such Receivable;

 

(m)      to the best of the Assignor’s knowledge and belief, each Receivable offered for purchase hereunder will, at the time of the relevant Purchase Request, constitute a legal, valid and binding obligation of the relevant Obligor enforceable by the Assignor and/or the Bank against that Obligor and the assets of that Obligor and each Invoice complies with all applicable laws and regulations relating to value added tax and similar taxes;

 

8.                                UNDERTAKINGS AND COVENANTS

 

8.1                        The Assignor hereby agrees and undertakes:

 

(a)          to refrain from any action which would in anyway prejudice or limit the Bank’s rights under or in respect of any Purchased Receivable;

 

(b)          to assist and co-operate with the Bank, to take all steps, Including the bringing of legal proceedings In the name of the Assignor, as the Bank may, acting reasonably, deem necessary to recover amounts due and unpaid in respect of the Purchased Receivables;

 

(c)           not to (I) agree to any variations or amendments to or of the Contract or any documentation In relation to a Purchased Receivable If such variation or amendment would have the effect of altering the Bank’s rights under this Agreement In respect of the Purchased Receivable or the effect of changing the amount payable and due under the Purchased Receivable or (ii) extend any credit period, in each case without the prior consent of the Bank;

 

(d)          to remain duly organized and validly existing under the laws of the country of its Incorporation;

 

(e)           to do all that it reasonably can to ensure that any Purchased Receivable or assignment hereunder or under an Assignment Agreement validly creates the obligations which it purports to create; and without limiting the generality of the foregoing, and promptly, to register, file,  record or enrol any Purchased Receivable or assignment hereunder with any court or authority as may be required and give any notice and take any other step which may be or has become necessary for 

 

12

 

any Purchased Receivable or assignment to be valid, enforceable or admissible in evidence, subject always to the ability of the Assignor to do so as a matter of Applicable Law;

 

(f)             If any amount due to the Bank in respect of a Purchased Receivable is paid to an account of the Assignor, to hold such amount on trust for the Bank and as soon as possible thereafter to pay such amount (or the equivalent of that amount in the Relevant Currency if the amount due to the Bank was received by the Assignor In a different currency) to the Bank;

 

(g)           to promptly inform the Bank of any material breach of, default under, or dispute relating to a contract relating to a Purchased Receivable, and of any event which might impede the full and timely payment of the amounts due in respect of the Purchased Receivables;

 

(h)          not to create or permit to subsist any encumbrance in respect of any Purchased Receivable or to assign, transfer or otherwise deal with or purport to assign, transfer or otherwise deal with any of Its rights in respect of any Purchased Receivable other than in accordance with this Agreement or otherwise In favour of the Bank;

 

(i)               not, without the prior consent of the Bank (such consent not to be unreasonably withheld, to disclose to any bank or financial institution details of this Agreement or of any breaches of or failure to comply with any undertaking or covenant in any Relevant Document;

 

Q)            to deliver to the Bank such other information and documents with regard to the Relevant Documents as it may reasonably request from time to time.

 

9.                               PERFORMANCE OF SUBSIDIARIES

 

In the event of any default In the performance of any Approved Subsidiary, the Bank shall be at liberty to call on Luxoft Holding, Inc. and Luxoft International Company Limited, on a joint and several basis, to perform the Approved Subsidiary’s obligations as primary obligor and Luxoft Holding, Inc. and Luxoft International Company Limited by execution of this Agreement agree that they shall on demand by the Bank perform all of the obligations of the Approved Subsidiary.

 

10.                        CHANGE OF CONTROL

 

If the Assignor ceases to be at least 50% controlled (whether directly or indirectly) by ISS Group

Holding Limited:

 

(a)          the Assignor shall promptly notify the Bank upon becoming aware of that event; and

 

(b)          the Bank may, at its sole discretion, by notice to the Assignor, terminate this Agreement forthwith and declare any amounts payable by the Assignor to the Bank under this Agreement due and payable by the Assignor to the Bank on demand.

 

If this Agreement is terminated and any amounts remain outstanding In connection with a Purchased Receivable, then the terms of this Agreement will continue to apply to that Purchased Receivable until all obligations in respect of that Purchased Receivable have been fully and finally performed.

 

11.                                EVENTS OF RECOURSE

 

There shall be an Event of Recourse if

 

13

 

(a)          a payment is not made in respect of a Purchased Receivable because of a failure by the Assignor to deliver the Services

 

(i)                      meeting the quality requirements in the Contract specification,

(ii)                   meeting the quantity requirement In the Contract specification,

(iii)               in a timely manner,

(iv)               to the correct destination.

 

(b)          a payment is not made ,in respect of a Purchased Receivable because It is not an Eligible Receivable.

 

(b)          the amount due to be received by the Bank under a Purchased Receivable Is reduced, or any liability to the Bank arises in respect of a Purchased Receivable due to a delay or omission of or on behalf of the Assignor to pay any duties or taxes due and payable in relation to a Purchased Receivable;

 

(c)           there is a fraud by the Assignor in relation to any Receivables;

 

(d)          there is a Commercial Dispute between the Assignor and an Obligor under the terms of a Contract:

 

(e)           the Collection Account is blocked or frozen for any reason:

 

(f)            breach by the Assignor of any of the terms of this Agreement or the material terms of the Contract.

 

12.                                COSTS AND INDEMNITIES

 

12.1                         General indemnity

 

The Assignor agrees to indemnify the Bank on demand against any loss, expense or liability (including, but not limited to, any loss or expense sustained or by the Bank to effect or maintain its acquisition of Purchased Receivables or any part thereof) which the Bank suffers solely because of:

 

(a)         any representation or warranty made by the Assignor under the Agreement is or proves to have been materially incorrect or misleading when made or deemed to be made or repeated, or the Assignor Is in breach of any undertaking or covenant in this Agreement;

 

(b)         the Assignor falls to make a payment to the Bank due under the terms of this Agreement within 5 Business Days of the due date of such payment,

 

(c)          under any applicable law or regulation, and whether pursuant to a judgment being made or registered against the Assignor or the liquidation of the Assignor or for any other reason, any payment under or in connection with this Agreement is made or falls to be satisfied In a currency other than the Facility Currency or, if different from the Facility Currency, the currency in which such payment Is due under or In connection with this Agreement.

 

12.2                         Amendment Costs

 

If the Assignor requests an amendment, waiver or consent In relation to this Agreement or any Purchased Receivable, the Assignor shall, within 3 Business Days of demand, reimburse the Bank for the amount of all costs and expenses (Including without limitation legal fees) reasonably incurred by the Bank in responding to, evaluating, negotiating or complying with that request or requirement. Any single or related costs and expenses exceeding [ ] shall be previously agreed with Assignor.

 

15

 

12.3                         Indemnity for Enforcement Costs, etc.

 

The Assignor shall pay to the Bank, on demand, all reasonable costs, fees and expenses (including, but not limited to, legal fees and expenses) and taxes thereon incurred by the Bank in connection with the preserving or enforcing of, or attempting to preserve or enforce, any of its rights under or in connection with this Agreement against any or all of the Assignor

 

12.4                         Increased Costs

 

The Assignor shall on demand pay to the Bank any reasonable sums Incurred by the Bank as a result of the introduction, implementation, repeal, withdrawal or change in the interpretation or application of:

 

(a)         any law, regulation, practice or concession; or

 

(b)         any directive or requirement (having the force of law) of the European Union, any central bank or any other fiscal, monetary, regulatory or other authority,

 

In each case which affects the manner in which the Bank Is required to or does maintain capital resources so as to increase the cost of or to reduce the effective return of the Bank In relation to the transactions contemplated by this Agreement.

 

12.5                         Due Date for Indemnity Payments

 

The Assignor shall pay any amount owed to the Bank under this Clause 11 within five (5) Business Days of that amount falling due.

 

12.6                         Interest

 

Any amount due to be paid by the Assignor to the Bank which is not paid by the Assignor when due shall attract Interest at a rate of EURIBOR (or cost of funds, whichever Is the higher plus 4.00% per annum calculated on and from the date of demand or when otherwise due to the date of receipt In full of such payment by the Bank.

 

13.                                TAXATION

 

13.1                         Tax Gross-Up

 

The Assignor shall make all payments hereunder without any deduction for Tax unless such deduction is required by law. If the Assignor is required by any law or regulation to make any deduction or withholding on account of any Taxes which arise as a consequence of the execution of this Agreement, any assignment made hereunder and/or any payment due under this Agreement or an assignment made hereunder, then:

 

(a)         the Assignor shall notify the Bank as soon as it becomes aware of such requirement;

 

(b)         the Assignor shall remit promptly the amount of such Taxes to the appropriate authority, and in any event prior to the date on which penalties attach thereto:

 

(c)          If a Tax deduction is required by law to be made by the Assignor In respect of any payment due hereunder, any such payment shall be increased by the Assignor by such amount as may be necessary to ensure that the Bank receives a net amount, which after deducting or withholding such taxes, Is equal to the full amount which the Bank would have received had such payment not been subject to such Taxes;

 

16

 

(d)         the Assignor shall indemnify the Bank against any liability of the Bank In respect of such Taxes; and

 

(e)          not later than thirty (30) days after each deduction or withholding of any such Taxes, the Assignor shall forward to the Bank evidence reasonably satisfactory to the Bank that such Taxes have been remitted to the appropriate authority;

 

(f)           if the Assignor has made a payment to the Bank In accordance with Clause 13.1(c) above and the Bank determines In its absolute discretion that It has obtained a credit against, relief from or remission or repayment of any tax the Bank shall pay to the Assignor the amount determined to be In its absolute discretion the amount which will leave the Bank (after the payment) In the same after-tax position as it would have been In had the tax payment not been required to be made by the Assignor.

 

13.2                         Value Added Tax

 

All consideration expressed to be payable under this Agreement by the Assignor to the Bank shall be deemed to be exclusive of any VAT. If VAT is chargeable on any supply made by the Bank to the Assignor In connection with this Agreement the Assignor shall pay to the Bank an amount equal to the amount of the VAT. The Bank hereby confirms that no such VAT is payable at the date of this Agreement.

 

14.                                  COMMUNICATIONS

 

14.1                           Addresses, etc.

 

Except as otherwise provided for in this Agreement, all notices or other communications under or in respect of this Agreement to any party hereto shall be in writing and shall be deemed to be duly given or made when delivered (In the case of personal delivery or letter and when despatched (in the case of facsimile transmission) to such party addressed to it at the address stated below (or at such other address as such party may hereafter specify for such purpose to the others by notice in writing):-

 

(a)         in the case of the Assignor:

 

Luxoft Holding, Inc.

Akara Bldg., 24 De Castro Street

Wickhams Cay I, PO Box 3136 Road Town

Tortola, British Virgin Islands

 

Attention Glen Granovsky

Fax no.: +1 201 505-9526

With mandatory Fax copy to: +7 (495) 9678081

E-mail address:glen@ibsus.net

 

Luxoft International Company Limited

Themistokli Dervi, 5, Elenion building, 2nd Floor, 1066 Nicosia, Cyprus

Attention:                                         Mrs. Sophia Ioannou

Tel: +35722555803

 

(b)   In the case of the Approved Subsidiary:

 

Luxoft Eastern Europe Ltd.,

33 Porter Road, P.O. Box 3169 PMB 103, Road Town, Tortola, British Virgin Islands

	
Attention:
    	
Ms.   S. White
    
	
Tel:
    	
+7   4959678039
    

 

17

 

Luxoft USA, Inc.

225 West 34th street, Ste. 1707-06, New York, NY, 10122,

Attention: Roman Trakhtenberg

Tel: + 1 212 964-9900, Fax: + 1 212 964 4377

 

(c)          in the case of the Bank: BNP

 

Paribas Dublin Branch

5 George’s Dock

IFSC

Dublin 1

 

Attention:             Clive Christie I Paul Owens

Tel:                                               +3531612 5104 or+3531612 5100

Email:                                dublincib.gtsscm@bnpparibas.com

 

Copy to                       dublin.legal@bnpparibas.com

 

A written notice includes a notice by facsimile. A notice or other communication received on a non-working day or after business hours in the place of receipt shall be deemed to be served on the next following working day in such place.

 

14.2                         Language

 

All communications and documentation delivered pursuant to or otherwise relating to this Agreement shall either be in English or accompanied by a certified English translation prepared by a translator approved by the Bank.

 

15.                                ASSIGNMENTS

 

15.1                         Successors

 

This Agreement shall be binding upon and Inure to the benefit of each party’s successors but, save in accordance with the provisions of this Clause 14, shall not be assignable or transferable.

 

15.2                         Bank May Assign

 

The Bank is expressly permitted and authorized to sell, assign, pledge and I or transfer all or part of Its rights under this Agreement to any bank or other entity (a “Participant”); provided, however, that, following any such sale, assignment, pledge or transfer (a) the Bank’s obligations under this Agreement shall remain unmodified and fully effective and enforceable against the Bank, (b) the Bank shall remain solely responsible to the Assignor for the performance of such obligations, (c) the Assignor shall continue to deal solely and directly with the Bank in connection with the Bank’s obligations under this Agreement, (d) the Bank shall retain the sole right and responsibility to enforce the obligations of the Assignor hereunder, Including, without limitation, the sole right to approve of or consent to any action hereunder or any amendment, modification, or waiver hereof. Any costs Incurred in connection with the assignment, sale, pledge or transfer shall be payable by the Bank.

 

Subject to any Information provided by the Assignor to the Bank which has been marked as

 

18

 

confidential, the Bank may disclose to a Participant, such information about the Eligible Receivables . and the Assignor as the Bank shall consider appropriate. The Bank shall furnish to the Assignor a written notice disclosing the name of each Participant which held a participating interest in the Eligible Receivables at any time during the Agreement.

 

The Assignor may not sell, assign, pledge and/or transfer all or part of its rights under this Agreement.

 

16.                               MISCELLANEOUS

 

16.1                        Remedies and Waivers

 

No delay or omission on the part of either party In exercising any right, power or remedy under this Agreement shall impair such right, power or remedy or be construed as a waiver thereof nor shall any single or partial exercise of any such right, power or remedy preclude any further exercise thereof or the exercise of any other right, power or remedy. The rights, powers and remedies herein or provided by law may be exercised from time to time and as often as a party may deem expedient.

 

16.2                         Partial invalidity

 

If, at any time, any one or more of the provisions In this Agreement is or becomes invalid, Illegal or unenforceable in any respect under any law or regulation of any jurisdiction, neither the validity, legality and enforceability of the remaining provisions of this Agreement nor the validity, legality and enforceability of such provision(s) under the law of any other jurisdiction shall be in any way affected or impaired thereby.

 

16.3                         Assignor’s Obligations

 

The obligations of the Assignor under this Agreement shall remain in full force and effect until the Bank shall have received all amounts due or to become due to It hereunder in accordance with the terms hereof.

 

16.4                         Counterparts

 

This Agreement may be entered into In any number of counterparts and by the parties to it on separate counterparts, each of which when so executed and delivered shall be an original, but all the counterparts shall together constitute the one and the same instrument.  A facsimile or PDF transmission of the executed signature page of this Agreement will constitute due and proper execution of this Agreement by the Party executing the signature.  Notwithstanding the foregoing, each Party shall as soon as practicable provide all other Parties with an original executed signature page.

 

16.5                           Certificates and Determinations

 

A certificate or determination of the Bank as to any matter provided for in this Agreement shall, in the absence of manifest error, be conclusive and binding on the Assignor.

 

17.                                  LAW AND JURISDICTION

 

17.1                           Governing law

 

This Agreement shall be governed by and construed in accordance with the law of England and Wales.

 

19

 

17.2                        Jurisdiction

 

The Assignor hereby irrevocably and unconditionally submits to the non-exclusive jurisdiction of the courts of England with respect to any action or proceeding arising out of or in connection with this Agreement.

 

IN WITNESS whereof the parties hereto have entered into this Agreement on the date first above written.

 

 

	
SIGNED   by 
    	
)   Glen Granovsky, Director
    
	
and
    	
)   Name and title:
    
	
 
    	
)
    
	
 
    	
)
    
	
For   and on behalf of
    	
)
    
	
Luxoft   Holding, Inc.
    	
)
    	
/s/   Glen Granovsky
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
SIGNED   by
    	
)   Sophia Ioannou, Director
    
	
 
    	
)   Name and title:
    
	
 
    	
)
    
	
For   and behalf of
    	
)
    
	
Luxoft   International Company Limited
    	
)
    
	
and
    	
)
    
	
 
    	
)
    
	
 
    	
)
    	
 
    
	
 
    	
 
    
	
 
    	
)   Name and title:
    
	
 
    	
)
    
	
 
    	
)
    
	
For   and behalf of
    	
)
    	
 
    
	
Luxoft   Eastern Europe Ltd.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
SIGNED   by
    	
Roman   Trakhtenberg, Chief Executive Officer
    
	
 
    	
)   Name and title:
    
	
 
    	
)
    
	
 
    	
)
    
	
For   and behalf of
    	
)
    	
/s/   Roman Trakhtenberg
    
	
Luxoft   USA,
    	
 
    
	
Inc.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
For   and on behalf of
    	
 
    
	
BNP   PARIBAS DUBLIN BRANCH
    	
)
    	
/s/   Clive W. Christie
    
	
 
    	
)   Name and title:
    
	
 
    	
 
    
	
 
    	
 
    
	
For   and on behalf of
    	
 
    
	
BNP   PARIBAS DUBLIN BRANCH
    	
)
    	
/s/   Paul Owens
    
	
 
    	
)   Name and title:
    

 

20

 

SCHEDULE I

 

OBLIGOR SUB-LIMITS I ADDRESSES I PRICING

 

	
Obligor
    	
 
    	
Sub-Limit
   (USD equlv.)
    	
 
    	
Max
   Maturity
   Dates (days)
    	
 
    	
Grace period
   (days)
    	
 
    	
Margin
   (p.a.)
    	
 
    
	
UBS AG
    	
 
    	
8,000,000
    	
 
    	
30
    	
 
    	
6
    	
 
    	
3
    	
%
    
	
Deutsche Bank AG London Branch
    	
 
    	
10,000,000
    	
 
    	
30
    	
 
    	
6
    	
 
    	
3
    	
%
    
	
Boeing Shared Services Group- Puget Sound
    	
 
    	
5,000,000
    	
 
    	
30
    	
 
    	
6
    	
 
    	
3
    	
%
    
	
Dell Products
    	
 
    	
2,000,000
    	
 
    	
60
    	
 
    	
6
    	
 
    	
3
    	
%
    
	
IBM Deutschland GmbH
    	
 
    	
1,000,000
    	
 
    	
60
    	
 
    	
6
    	
 
    	
3
    	
%
    

 

21

 

APPENDIX I

 

CONDITIONS PRECEDENT

 

In form and substance acceptable to the Bank:

 

1.                                      A copy of the resolution of the board of directors of the Assignors and the Approved Subsidiaries:

 

(I)                                   approving the terms of, and the transactions contemplated by, the Agreement;

(ii)           authorising a specified person or persons to execute the Agreement; and

(iii)          authorising a specified person or persons, on Its behalf, to sign and/or despatch all documents and notices to be signed and/or despatched by it under or In connection with the Agreement, including all assignments and purchase requests thereunder.

 

2.                                      An original of this Agreement, duly executed by the Assignors and Approved Subsidiaries,

 

3.                                      A certificate of the secretary of the Assignors and Approved Subsidiaries certifying that each copy document listed in this Appendix I at paragraphs 1, 2, and 3 is correct, complete and in full force and effect as at the date of this Agreement.

 

4.                                      Evidence of the signatures of the persons authorised as per 1(ii) and (iii), above.

 

5.                                      Copy of the Commercial Contract.

 

6.                                      A copy of the most up to date constitutional documents of the Assignors and Approved Subsidiaries or the most recent extract from the commercial register of the Assignors and Approved Subsidiaries, if applicable.

 

7.                                      A signed but undated Notice of Assignment In respect of each Obligor

 

22

 

APPENDIX II

 

ASSIGNMENT AGREEMENT

 

THIS ASSIGNMENT AGREEMENT (the “Agreement”) is entered into on the [please Insert date of execution]

 

BETWEEN:

 

BNP PARIBAS DUBLIN BRANCH with its registered office at 5 George’s Dock, IFSC, Dublin 1 (the“Bank”); and

 

[  ], with its registered office at [ ]

 

IT IS AGREED:

 

1.                                      INTERPRETATION

 

Terms defined In the Facility Agreement shall, unless otherwise defined in this Agreement or unless a contrary intention appears, bear the same meaning when used In this Agreement and in addition:

 

	
Assigned   Receivables
    	
 
    	
means all of the Assignor’s rights, title and   interest, present and future, in and to all monies of whatsoever nature   payable in connection with the Invoices through the CTPR System from time to   time and any claims (including, but not limited to, claims for damages for   breach of contract and rights to compel the performance of contract duties and   delivery of goods and claims arising under or in connection with any   indemnity, guarantee or other support) under, or arising In connection with   such Invoices.
    
	
 
    	
 
    	
 
    
	
Facility   Agreement
    	
 
    	
means the uncommitted receivables purchase   agreement, between the Bank and the Assignor, dated [please   Insert date of execution].
    

 

2.                                      ASSIGNMENT

 

2.1                               In consideration of the payment of the Purchase Price for the Assigned Receivables loaded onto the CTPR System and accepted for payment by the Bank, the Assignor as legal and beneficial owner of the Assigned Receivables assigns to the Bank all Its right, title and Interest in and to the Assigned Receivables offered via the CTPR System and any sums collected from an Obligor pursuant to Its role as Collection Agent.

 

2.2                               The Bank shall not (by reason of the assignment referred to in clause 2.1 above or otherwise) assume or become liable to assume any obligation of the Assignor under or pursuant to any Contract and the Assignor shall remain liable under each Contract to perform all its obligations thereunder.

 

2.3                               The Assignor agrees and confirms that it will at any time and from time to time do all things and execute and/or deliver all documents as the Bank may require for the purposes of giving effect to or perfecting the assignment hereunder or necessary for the enforcement or preservation of the ownership rights over the Assigned Receivables conferred on the Bank under this Agreement.

 

3.                                      GOVERNING LAW AND JURISDICTION

 

This Agreement shall be governed by and construed In accordance with English law and the Assignor hereby irrevocably submits to the jurisdiction of the High Court of England and Wales with respect to any action or proceeding arising out of or In connection with this Agreement.

 

23

 

IN WITNESS whereof the parties hereto have entered into this Agreement on the date first above written.

 

	
SIGNED by
    	
)
    	
 
    
	
and
    	
)   Name and title:
    
	
For   and on behalf of
    	
)
    
	
[ ]
    	
)
    	
 
    
	
 
    	
)   Name and title:
    
	
 
    	
 
    
	
 
    	
 
    
	
SIGNED by
    	
)
    	
 
    
	
and
    	
)   Name and title:
    
	
For   and on behalf of
    	
)
    
	
BNP PARIBAS S.A.
    	
)
    	
 
    
	
 
    	
)   Name and title:
    

 

24

 

APPENDIX III

 

NOTICE OF ASSIGNMENT TO OBLIGORS

 

[ON THE ASSIGNOR’S LETTERHEAD]

 

Addressed to the Obligor

 

Attention: [·]

 

Dear Sirs,

 

Notice of Assignment of Debts

 

1.                   We give you notice that by a receivables purchase agreement dated [·] we have sold and assigned to BNP Paribas (the “Bank”) the full benefit of all our rights under or by virtue of each invoice listed in the attached schedule issued in relation to [·] (the “Contract”).

 

2.                   The Bank is authorised by us to collect or recover for its own account the sums due by you under the Invoices. We irrevocably and unconditionally authorise and instruct you to pay all such sums becoming due and payable under or by .virtue of those Invoices to the Bank and the following account [details of Bank’s Account].

 

3.                   Please note that the above authorisation and instructions may not be revoked or varied without our prior written consent.

 

For and on behalf of:

 

[   ]

 

25

 

APPENDIX IV

 

TERMS OF USE OF THE CTPR SYSTEM BETWEEN [ ] (THE “SELLER”) AND BNP PARIBAS S.A., ACTING THROUGH ITS DUBLIN BRANCH (THE “PURCHASER”)

 

1: INTRODUCTION

 

1.1                               The Connexis Trade Payables I Receivables web site (hereinafter referred to as the “Site”), maintained by the Purchaser, is a communication tool accessible via the Internet relating to invoice financing, designed to enable the performance of transactions related to the purchase of receivables, subject to the terms and conditions of this Agreement between the Purchaser and the Seller. Other than the home page, which can be accessed without restriction, the Site Is only accessible to the Seller having signed this Connexis Trade Receivables Agreement (this “Agreement”).

 

1.2                               The Seller when connecting to the Site shall use a dedicated space to access information contained on this Site. The Seller shall have access through-the Site to the services that the Seller has requested (by the completion of the CTPR Registration Form), which are subject to the Bank’s consent; i.e. purchase of receivables (hereinafter, the “Services”).

 

1.3                               The Purchaser will provide the Seller with Site access procedures to enable it to access these Services and documentation to assist it in using same.

 

2: UNDERTAKINGS OF THE PARTIES

 

2.1                               Undertakings of the Seller: The Seller hereby binds Itself, Its representatives, Its Approved Subsidiaries (hereinafter collectively referred to as the “Entities Using the Site”). It hereby undertakes that the Entities Using the Site shall comply with all undertakings set forth in this Agreement, as well as with the access procedures and documentation provided by the Purchaser to the Seller. As a result, the Seller shall be liable for any activities and liabilities incurred by the Entitles Using the Site.

 

2.2                               Undertakings of the Purchaser: The Purchaser hereby agrees to grant the Seller access to the Site and Services using SSL (Secure Socket Layer) technology or any other data encryption technology for the duration of this Agreement

 

2.3                               The Purchaser hereby agrees to provide to the Seller the key and .access procedures (the “Access Key”) as are more particular described In 5 herein, as well as the documentation necessary for the use of the Site within one (1) month of the signature of this Agreement by the Seller.

 

3: SITE ACCESS AND SECURITY

 

3.1                               Access to the Site is via an Internet connection. The address of the site is: https://payables-receivables.bnpparibas.com

 

3.2                               Transactions carried out on the Site are secured by having the Information encrypted during the exchange between the Seller’s computer and the Purchaser’s server using SSL (Secure Socket Layer) technology SSL 128 bits security requires: an Internet connection and a navigator which accepts this technology, such as Internet Explorer 5 or higher navigator or Netscape Navigator 6 or higher; and constant Internet access to the sites secured by SSL technology.

 

3.3                               The Seller hereby undertakes on Its behalf and on behalf of the Entities Using the Site, to be in possession of the necessary equipment to use SSL (Secure Socket Layer) technology, prior to its first use of the Site.

 

3.4                               The Seller hereby expressly acknowledges that, prior to the signature of this Agreement, it has the necessary knowledge and hardware to access and use the Site. The Seller will be solely responsible for the acquisition and installation of the said hardware prior to the signature of this Agreement, and for the maintenance of and any requisite technical improvements to the said hardware thereafter.

 

3.5                               All expenses related to the use of the Site, and, in particular, telephone communications, shall be borne by the Seller. Expenses related to access and use of any telecommunication network shall be

 

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borne by the Seller In accordance with the procedures set out by the Sellers’ supplier and the telecommunications operators.

 

4: ACCESS KEY

 

4.1                               Access to the Site requires the use of an Access Key consisting of:

a Customer Identification Code; 

a User Identification Code; 

and a Password a Password; and

a Key (being a digipass, electronic key or other means of secure access to the site).

 

4.2                               This Site Access Key shall be provided by the Purchaser to the person expressly appointed by the Seller for such purpose (hereinafter referred to as the “Administrator”. This Access Key will be personal and confidential. The Administrator appointed by the Seller agrees to take all necessary steps to keep the said Access Key confidential.

 

4.3                               The Seller has the right, under its sole responsibility, to allow the Administrator to designate one or more Users and to grant them access to the Site and to all or part of the Services based on the specific duties that the Users perform for the Seller. In such event, the Administrator appointed by the Seller shall create and provide an Access Key as indicated above to each User.

 

The Administrator’s name shall be indicated on a “User form” as per a template to be provided by the Purchaser, which must be duly completed by the Seller and provided upon request of the Purchaser.

 

4.4                               The Seller hereby undertakes, on its behalf and on behalf of the Entitles Using the Site, to:

 

take all steps necessary to protect access to all information contained on the Site, keep the said information confidential and avoid all unauthorised or fraudulent use of the Site using the Access Key provided to the Seller by the Purchaser;

 

not use, transfer, provide, or assign to any third party whatsoever, even free of charge, the right to access and use the Site granted pursuant to this Agreement unless the Purchaser has granted its prior written authorisation;

 

not grant to any third party whatsoever access to the Service(s) on the Site, Access Keys or any information or documentation contained on the Site;

 

be fully personally liable for any use of the Access Key by any third parties whatsoever;

 

take all steps necessary to protect the confidentiality of the Access Key;

 

change Administrator and all User Access Keys if the Seller suspects and/or becomes aware of the disclosure of the Access Key or the loss, theft, or any unauthorised use thereof;

 

immediately notify the Purchaser of any disclosure, loss or theft of the Access Key so that it may take all the steps necessary to suspend all Instructions received on the Site. If the Seller fails to do so, the Purchaser shall not be held liable for having acted based on any instructions appearing to have been received from the Seller.

 

Furthermore, the Seller undertakes to take all useful and necessary steps to ensure that the Users authorised by the Administrator, as provided for herein, comply with the obligations set out above.

 

5: TECHNICAL ASSISTANCE

 

5.1                               Assistance In using the Site may be obtained In by calling the following number Monday through Friday (with the exception of the Dublin Bank holidays) from 9 am. to 5 pm. (Dublin time);

Telephone no.: +353 1 612 50 75

E-mail: denmot.higgins@bnpparibas.com

 

5.2                               The Purchaser may respond to technical assistance requests by any means at its disposal.

 

5.3                               Technical assistance solely covers access to and use of the Site and the Services available to the Seller as per this Agreement, to the exclusion of any information in respect of processing commercial transactions, which must be requested from the units of the Purchaser responsible for such processing.

 

5.4                               In no event may the Purchaser be declared personally liable for any actions taken by the Seller or for the destruction of files or programs or for any Incident that would occur in respect of the Seller’s equipment after assistance has been given by the Purchaser. The Seller hereby agrees to protect itself against these risks by any means at its disposal

 

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AUTOMATED TRANSACTION DELETION

 

6.1                               The Seller will be notified thirty (30) days In advance of the automated deletion of the information related to transactions from the Site. In such event, the Seller must take all steps to first back up these transactions by, Inter alia, printing the relevant data to be kept by it in a hard format for its own purpose.

 

6.2                               After thirty (30) days, the Purchaser will delete the information related to all transactions without any further notice. From such termination, all information requests In respect of past transactions must be sent to the department responsible for the said processing.

 

7: EVIDENCE

 

7.1                               The Purchaser retains information in respect of the transactions effected by it and the Seller using the Site to meet its legal and regulatory obligations and its own internal policies.

 

7.2                               It is hereby expressly agreed that the Purchases records on its computer systems shall constitute, absent manifest error, prima facie evidence of the transactions carried out on the Site utilizing the Services available to the Seller on the Site.

 

8: TITLE

 

8.1                               The Purchaser grants the Seller a limited, non-exclusive and revocable right to utilize the services using the Site in accordance with the provisions of this Agreement. All components of the Site and in particular, Site layout, domain names, information, documentation, text, data, designs, Images, photos, graphics, sound and/or visual recordings, software, and all or part of the components of the Site included in the database (hereinafter, the “Content’) are owned by BNP Paribas, or its affiliates, commercial partners, co-licensees or license holders, and are protected by intellectual and/or industrial property rights.

 

8.2                               As a result, the reproduction, representation, modification, decompiling, provision, broadcast, transfer, transmission or communication of all or part of the Content of the Site by the Seller, on any media and/or using any procedure whatsoever, is prohibited except with the Purchases prior, written authorisation. The failure to comply with this prohibition could constitute a violation of national and International law in respect of intellectual property and/or copyright and may give rise to legal proceedings under the applicable legislation including, if appropriate, to penal prosecution.

 

8.3                               The trademarks, logos and service marks on the Site are registered in France and/or internationally under various names, and are the sole property of BNP Paribas. Any total or partial reproduction of these trademarks or logos, made using Site contents without the prior, express authorisation of the Purchaser, is prohibited. Any use of these trademarks or logos constitutes Infringement which will result in legal proceedings under the applicable legislation including penal prosecution.

 

8.4                               The Purchaser reserves the right to change the Site and the Services provided thereon, as well as the technical characteristics for access as technology and the criteria that It feels are better suited to its clientele. The Purchaser shall inform the Seller of any such changes in a timely fashion by a notice that will be available on the Site or by all other communication means.

 

8.5                               The Purchaser may, at its sole discretion, suspend or terminate access to all or part of the Services, in particular, to maintain the service and/or in the event of fraudulent use of the systems, and shall so Inform the Seiler by all means at its disposal.

 

9: RESPONSIBILITY AND LIABILITY

 

9.1                               The Seller is solely and completely liable for its use of the Internet in its name and on behalf of the Entities Using the Site, and Is subject to the application of local, national and International laws and regulations. The Purchaser will attempt to use secure and reliable Internet sites; however, the confidentiality of the information and documents cannot be guaranteed. As a result, the Purchaser may not be held personally liable for the security and reliability of the content of the information placed on this Site by the Seller, or for the consequences of acts committed based on the said Information.

 

9.2                               The Purchaser may not be held liable for Interruptions and/or malfunctions of the network or web hosting services. As a result, the Seller assumes sole and complete liability for risks related to Internet. Further, the Purchaser may not be held liable for interruptions in the Services or for the inability to access the access Services due, in particular, to a malfunction of the automated equipment used by the Seller or improper use by the Seller of the Site.

 

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9.3                               Due to the increase in the proliferation of viruses and other threats affecting the Internet, the Seller should be aware at all times of the potential for viral contamination of its computer systems. As a result, the Seller is responsible for protecting its computer systems. The Purchaser may not be held liable for any damage or the losses whatsoever related to such viruses or threats.

 

9.4                               The Purchaser will not In any event be held liable for any reason whatsoever for damage due to: use of the Site by the Seller, its Representatives and other Entities Using the Site that does not comply with the provisions of this Agreement;

 

·        the inability to use the Site (or any related site), including any direct, Incidental, or consequential damage resulting from the inability to connect, as well as for any defects In supplying access to the Service(s); losses or damage due to delays or Interruption of the service, file deletion or electronic communications.

 

9.5                               The Seller will be liable on its own behalf, on behalf of its permanent and temporary Representatives, and on behalf of other Entities Using the Site, for all damage that occur pursuant to their use of the Site including damages due to unauthorised access to the Site, or acts from their part resulting in destruction or damages to the Site and, in general, any transaction effected without complying with the rules applicable to the use of the Site.

 

10: CONSEQUENCES OF THE TERMINATION OF THE AGREEMENT

 

10.1                        The Purchaser reserves the right to terminate access to the CTPR System ipso jure and without notice if the Seller or the Entities Using the Site fall to comply with any whatsoever of their obligations arising under this Agreement In respect of the usage of the CTPR System, without prejudice to any damages that the Purchaser may claim.

 

This right shall apply In particular if the Seller, the Entities Using the Site, or any other person that was given access to the Site by the Seller falls to comply with the obligation to keep confidential the Access Keys provided by the Purchaser

 

10.2                        The termination of access to the CTPR System and the withdrawal of access to the Service(s) shall have the consequences specified in Article 6 (“Automated Transaction Deletion”).

 

10.3                        The Seller hereby agrees to return to the Purchaser all documentation related to the Site no later than one (1) month after termination of access to the CTPR System and not to retain any complete or partial copy of the documentation related to the Site; the Seller shall however be entitled to keep any document related to the transactions performed while using the Site as well a copy of this Agreement

 

30Exhibit 10.10

 

UNANIMOUS WRITTEN CONSENT OF THE DIRECTORS

of Luxoft Holding, Inc. (the “Company”)

(in lieu of the Meeting of the Board of Directors)

adopted on March 25, 2010

 

the Company incorporated and organized under the BVI Business Companies Act (2004) under the law of British Virgin Islands under the Company Number 1014092, registered office is at Akara Bldg., 24 De Castro Street, Wickhams Cay I, PO Box 3136 Road Town, Tortola, British Virgins Islands

 

APPROVAL OF STOCK OPTION PLAN

 

1.              The Management of the Company proposed the Board to adopt a Stock option plan for the employees and managers (hereinafter – “participants”) of Luxoft Holding Inc. and its associated companies (hereinafter referred to as “Luxoft Companies”), as follows:

 

·                  The Stock option plan will be performed generally within the terms stipulated in Addendum 1 hereto.

 

·                  The number of Stock option plan participants shall not exceed 9 (nine) participants.  The participants of the Stock option plan grant are listed in Addendum 2 hereto.

 

·                  For the purposes of Stock option plan the key performance indicator shall be: (a) period of employment of the participants in Luxoft Companies, and (b) EBITDA and revenue of the consolidated statement of income of the Company 2012 fiscal year.

 

·                  A special purpose vehicle (“SPV”) will be used in order to implement the Stock option plan.

 

·                  Authorized capital of the Company shall be adjusted to implement Stock option plan.

 

·                  Additional shares in Luxoft Holding Inc. should be issued at nominal value in favour of SPV.  Number of shares issued to implement the Stock option plan (the “bonus shares”) should be calculated as 8% of the outstanding shares after implementation of the plan.

 

·                  Option agreements over the bonus shares will be concluded between the Company, SPV and the participants to whom options are granted.

 

·                  The shareholders shall waive their pre-emptive rights stipulated by the Shareholders agreement dated April 10, 2009 in regard to the Company’s newly issued shares in favour of  SPV and their subsequent transfer to the participants under the Stock option plan.

 

2.              It was also advised that the Board should approve the appointment of the Stock option plan Committee authorized and empowered in the name and on behalf of the Company to adopt any decisions and execute any documents required by the Stock option plan and the Option agreement.

 

The following members are recommended to be appointed to the Committee:

 

·                  Anatoly Karachinsky – chairman of the Committee;

·                  Dmitry Loshchinin – member of the Committee;

·                  Michael Friedland – member of the Committee.

 

After consideration, the Board unanimously RESOLVED:

 

1.                                      To to approve the Stock option plan.

2.                                    To approve the appointment of the Stock option plan Committee consisting of the following members of this Committee;

 

·                                          Anatoly Karachinsky – chairman of the Committee;

·                                          Dmitry Loshchinin – member of the Committee;

·                                          Michael Friedland – member of the Committee.

 

signature page follows:

 

 

IN WITNESS WHEREOF, the undersigned, continuing all of the members of the Board, do hereby consent to and approve the adoption of the foregoing resolutions effective as of the date first above written.

 

 

	
/s/ Ms Mai-Anh Demottaz-Ditoro
    	
 
    	
/s/   Leoaid Zabezhinsiy
    
	
Ms Mai-Anh Demottaz-Ditoro
    	
 
    	
Leoaid Zabezhinsiy
    
	
Director
    	
 
    	
For   and on behalf of IBS Directors Ltd.
   Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Colin Forster
    	
 
    	
/s/   Brian Monk
    
	
Colin Forster
    	
 
    	
Brian Monk
    
	
Director
    	
 
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Glen Granovsky
    	
 
    	
 
    
	
Glen Granovsky
    	
 
    	
 
    
	
Director
    	
 
    	
 
    

 

 

ADDENDUM 1

 

Main terms and conditions of Stock option plan

 

·                  The Stock option plan envisages that shares of the Company in the amount of 8% of the outstanding shares shall be provided to the participants in consideration for performing duties pursuant to their contracts of employment and subject to any performance thresholds as set out by the Company and provided that, as stated below: (1) the criteria of long-service (CLS) and (2) key performance indicators (KPI) are achieved.

 

·                  CLS means employment criteria of the participants within the Company and its designated subsidiaries  at the moment of granting the relevant part of the compensation, equal to the period of paying the parts of compensation as described in Addendum 2.

 

·                  KPI means EBITDA and revenue of the consolidated statement of income of the Company 2012 fiscal year established by the Board of directors of the Company for the purposes of the Stock option plan: Revenue USD 260 million and EBITDA USD 45 million;

 

·                  The Stock option plan will be realized within the terms stipulated in Addendum 2.

 

·                  The number of Stock option plan participants shall not exceed 9. The participants in the Stock option plan are listed in Addendum 2.

 

·                  The compensation shall be granted to the participants in five (5) parts as described in Addendum 2.

 

·                  A special purpose vehicle (SPV) will be used in order to implement the Stock option plan.

 

·                  Option agreements over the bonus shares will be concluded between the Company, SPV and the participants to whom options are granted.

 

·                  8% bonus shares in Luxoft Holding Inc. will be issued at nominal value in favour of SPV.

 

·                  SPV shall be entitled to buy back the shares in the event of non-compliance of the participant with the non-compete conditions, within 1 (one) year following the termination of employment as described in the Option agreement.

 

·                  Upon granting to the participant each part of the compensation as described in the Option agreement the participant shall be entitled to:

 

i.                  Acquire the respective number of shares within the exercise period of five years; or

 

ii.               Conclude an agreement with SPV providing that the shares will be held in the ownership of SPV within the agreed period not exceeding five years and the participant will have a right to receive the shares upon expiration of such agreement (right to compensation). In such case, SPV shall pay to the participant monetary funds equal to the dividends assigned to the shares after they were transferred to SPV’s account to Company.

 

·                  SPV shall be entitled to offer to the participant annually the opportunity to sell to SPV (i) the acquired shares or (ii) right to compensation.

 

·                  The Share option plan will provide different compensation conditions for participants recognized as “good leavers” or “bad leavers” in accordance with the provisions of the Option agreement. The decision assessing the particular reasons and grounds for termination of the employment with the participant , as well as other decisions relating to the Stock option plan, will be adopted by the Stock option plan Committee.

 

The shareholders, including SPV and the participants (after signing a deed of adherence), shall conclude a deed of amendment to the Shareholders’ agreement dated April 10, 2009 stipulating the obligations of the shareholders to waive their pre-emptive rights to acquire the Company’s newly issued bonus shares in favor of SPV and their subsequent transfer to the participants under the Stock option plan.

 

 

 

DATED [          ]

 

AMONG

 

Luxoft Holding Inc.

 

AND

 

Luxoft SOP Company S.A.

 

AND

 

IBS Group Holding Limited

 

AND

 

GROUP-MG Foundation

 

AND

{PLEASE INDICATE}

 

 

OPTION AGREEMENT

 

THIS OPTION AGREEMENT is made on {please indicate date} 2010

 

AMONG:

 

(1)                                 Luxoft Holding Inc, a company duly organized and existing under the laws of the British Virgin Islands, represented by {please indicate} acting on the basis of {please indicate} hereinafter referred to as the “Company”,

 

and

 

(2)                                 Luxoft SOP Company S.A., a company duly organized and existing under the laws of the British Virgin Islands represented by {please indicate} acting on the basis of {please indicate} hereinafter referred to as the “SPV”,

 

and

 

(3)                                 IBS Group Holding Limited, a company duly organized and existing under the laws of Isle of Man represented by {please indicate} acting on the basis of {please indicate} hereinafter referred to as the “IBS Group”,

 

And

 

(4)                                 GROUP-MG Foundation, a company duly organized and existing under the laws of Principality of Liechtenstein represented by {please indicate} acting on the basis of {please indicate} hereinafter referred to as the “GROUP-MG”,

 

And

 

(5)                                 {please indicate the name and address of the Participant} passport: series       number       issued {please indicate} hereinafter referred to as the “Participant”,

 

hereinafter referred to as the “Party” and

 

2

 

jointly - the “Parties”.

 

The Parties have agreed to enter into this Option Agreement, hereinafter referred to as the “Option Agreement” as follows:

 

NOW THIS DEED WITNESSES AS FOLLOWS:

 

DEFINITIONS AND INTERPRETATION

 

The following words and expressions shall have, where the context so admits, the following meanings:

 

Acceptable Termination Grounds:   the grounds for termination of the SOP participation that are not included in the category of Non-acceptable Termination Grounds hereunder, and that do not affect the Participant’s Right to Compensation. Such grounds may include the following:

 

·                  Termination of the employment with the Participant by a company within the Group by reason of mutual consent;

 

·                  Recognition of the SOP Participant as being incapable of performing his labor activities in accordance with a medical report, issued in accordance with the applicable legislation;

 

·                  Participant’s death;

 

·                  Recognition that the SOP Participant is missing or deceased pursuant to a court decision;

 

·                  Other grounds.

 

Board:  the board of directors of the Company.

 

Business Day:  shall mean a day (other than Saturday, Sunday and the State Holidays) when clearing banks are open for business.

 

Calculation Date:  the following dates of granting of the relevant Part of the Compensation to the Participant:

 

Part 1 of the Compensation — March 31, 2010;

 

Part 2 of the Compensation — March 31, 2011;

 

3

 

Part 3 of the Compensation — March 31, 2012;

 

Part 4 of the Compensation — March 31, 2013;

 

Part 5 of the Compensation — March 31, 2013.

 

Change of Control means the first to occur of any of the following events:

 

(a)      An entity is or becomes a beneficial owner, directly or indirectly, of shares of the Company representing more than 50% of the total voting power of the Company then outstanding shares; provided, however, that for the purposes of this subsection (a) the following acquisitions shall not constitute a Change of Control for the purposes of this Option Agreement: (i) any acquisition directly by the Company, (ii) any acquisition by any employee benefit plan sponsored or maintained by the Company or (iii) any acquisition by any corporation pursuant to a transaction that complies with clauses (i) or (ii) of subsection (b) of this definition; (iv) any transfer of the shares in the Company by the beneficiary owners of the shares into nominal share holding or into fiduciary management; (v) any transfer of the shares in the Company to the affiliated persons of the beneficiary owners of the shares in Company;

 

(b)      there is consummation of a merger, consolidation or other corporate transaction involving the Company, other than (i) a merger, consolidation or transaction as a result of which the shares held by the shareholders of the Company continue to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) at least 50% of the combined voting power of the stock and securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger, consolidation or transaction, or (ii) a merger, consolidation or transaction effected to implement a recapitalization of the Company (or similar transaction) in which no entity is or becomes the beneficial owner, directly or indirectly, of shares of the Company representing more than 50% of the combined voting power of the Company’s then outstanding shares;

 

(c)       the sale or disposition by the Company of all

 

4

 

or substantially all of Company’s assets other than a sale or disposition by the Company of all or a substantial part of Company’s assets to affiliated persons of the Company or to affiliated persons of beneficial owners of shares in the Company.

 

(d)      the shareholders of the Company completed the liquidation of Company as a legal entity, except for reorganization of the Company which amounts to a transformation (change of the legal form of the Company).

 

Compensation:  the right of the Participant to acquire the Shares of the Company subject to the terms and conditions of this Option Agreement.

 

Criteria of long-service (CLS):  the condition that the Participant’s employment within the Group is continuing as at the Calculation Date of the respective Part of the Compensation.

 

Dispute:  dispute, controversy or claim arising out of or in connection with this Option Agreement, including any issue regarding its existence, validity, termination or breach.

 

Employment Agreement:    shall mean an employment agreement or contract between the Participant and any company within the Group.

 

Exercise period:  the period in which the Participant is entitled to receive Parts 1, 2, 3, 4 and 5 of the Compensation respectively, within which the Participant may submit to SPV the exercise notice. The Exercise period is equal to:

 

·                  Part 1 of the Compensation — 5 years from the date of granting of the Right to the Part 1 of the Compensation;

 

·                  Part 2 of the Compensation — 4 years from the date of granting of the Right to the Part 2 of the Compensation;

 

·                  Part 3 of the Compensation — 3 years from the date of granting of the Right to the Part 3 of the Compensation;

 

·                  Part 4 of the Compensation — 2 years from the date of granting of the Right to the

 

5

 

Part 4 of the Compensation;

 

·                  Part 5 of the Compensation - 2 years from the date of granting of the Right to the Part 5 of the Compensation.

 

Group or a company within the Group:  Company, any of its subsidiary or associated companies, and any of its affiliated companies.

 

Date of the Proposed IPO:  the date of the first offering of the Company’s shares by way of an open subscription and/or offering of shares of the Company to a wide range of investors:

 

KPI:  key performance indicators which shall be the following:

 

·                          Revenue of the consolidated statement of income of the Company 2012 fiscal year established by the Board for the purposes of the SOP in the amount of USD 260,000,000; and

 

·                         EBITDA of the consolidated statement of income of the Company 2012 fiscal year established by the Board for the purposes of the SOP equal to USD 45,000,000.

 

Material damage:  the following actions performed by the Participant with regard to the company within the Group:

 

·                  Adoption of a decision by the Participant while performing his job responsibilities resulted in material damage to the company within the Group in the amount exceeding USD 200,000;

 

·                  Performance of any actions (or inaction) by the Participant while performing his job responsibilities resulted in material damage to the company within the Group in the amount exceeding USD 200,000.

 

Nominal Value:  the nominal value of each registered share as set out in the Memorandum and Articles of Association of the Company.

 

Non-disclosure agreement:  an agreement concluded between the Participant and Luxoft Holding Inc #     dated {please indicate}.

 

Part of the Compensation:  has the meaning

 

6

 

indicated in clauses 2.1.1. — 2.1.5. of this Option Agreement.

 

Proposed IPO:  the offering of shares of the Company by way of an open subscription and/or offering of shares of the Company to a wide range of investors;

 

Right(s) to the Compensation:  the right of the Participant to acquire/execute any Part of the Compensation pursuant to this Option Agreement.

 

Shares:  the registered bonus ordinary shares of the Company with no par value pursuant to the right to acquire shares which should be granted to the Participant as a Compensation in such amounts as set out in the Option Agreement.

 

SOP:  stock (share) option plan for long-term remuneration of employees of companies of the Group, which terms and conditions are set out in this Option Agreement. The SOP was adopted by the Board resolution (unanimous written consent of the directors of the Company) dated March 25, 2010.

 

SOP Committee:  an authorized body of the Company, specifically appointed for the purposes of SOP administration (in particular, to adopt any decisions regarding new Participants, for assessment of the particular reasons and grounds for termination of participation in the SOP by the Participant as being Unacceptable, etc.) by the Board resolution (unanimous written consent of the directors of the Company) dated March 25, 2010.

 

Unacceptable Termination Grounds:  the grounds for termination of the Participant’s participation in the SOP for any reason if so is decided by the SOP Committee with regard to the Participant. i.e..

 

a)    Being a shareholder personally or through third parties in the share capital of a competitor of the Group by acquiring 3% of the shares of the company-competitor of the Group;

 

b)    Conclusion by the Participant of an employment agreement or a contract with a company-competitor of the Group with regard to rendering

 

7

 

(personally or by proxy) of services and/or performing of works in favor of a competitor of the Group; or assignment of rights and obligations under such a contract from a third party to the Participant 1 year following the date of termination of the Employment Agreement between the Participant and the company within the Group;

 

c)     Violation by the Participant of the conditions of Non-compete agreement, concluded by the Participant with the company within the Group;

 

d)    Violation by the Participant of the conditions of the Employment Agreement, Non-disclosure agreement, concluded by the Participant with the company within the Group;

 

e)     The Participant caused a Material damage to the company within the Group;

 

f)     The Participant has terminated the Employment Agreement with the company within the Group and has not ensured the transfer of duties.

 

In this Option Agreement unless the context otherwise requires:

 

(a)     references to statutory provisions shall be construed as references to those provisions as amended or re-enacted or as their application is modified by other provisions from time to time and shall include references to any provisions of which they are re-enactments (whether with or without modification);

 

(b)     references to clauses are references to clauses hereof, references to sub-clauses or paragraphs are, unless otherwise stated, references to sub-clauses of the clause or paragraphs of the section in which the reference appears;

 

(c)     references to the singular shall include the plural and vice versa and references to the

 

8

 

masculine shall include the feminine and/or neuter and vice versa.

 

1.    SUBJECT OF THE OPTION AGREEMENT

 

1.1. In consideration of the Participant’s continuing employment with the Group, the SPV shall grant to the Participant the right to acquire the Shares as the Compensation under the SOP on the terms set out in this Option Agreement. The SPV agrees to transfer such Shares to the Participant in accordance with the procedure and subject to the conditions established by this Option Agreement.

 

1.2. The right to acquire Shares in the amount {please indicate} shall be granted to the Participant free of charge in parts provided that:

 

·      CLS are observed by the Participant (for Parts 1-5 of the Compensation) and

 

·      KPI set out in the present Option Agreement are achieved by the Company (for Part 5 of the Compensation).

 

2.     GRANTING OF COMPENSATION

 

2.1. The Compensation shall be granted to the Participant in 5 (five) parts as follows:

 

2.1.1.      Part 1 of the Compensation

 

The SPV shall grant to the Participant a right to acquire the Shares constituting 30% of the total Compensation on the Calculation Date for Part 1 of the Compensation (March 31, 2010) in the amount of {please indicate}, which shall constitute {please indicate} % (     percent) of the placed shares of the Company on the date of execution of this Option Agreement.

 

2.1.2.      Part 2 of the Compensation

 

The SPV shall grant to the Participant a right to acquire the Shares constituting 20% of the total Compensation on the Calculation Date

 

9

 

for Part 2 of the Compensation (March 31, 2011) in the amount of {please indicate}, which shall constitute {please indicate} % (     percent) of the placed shares of the Company on the date of execution of this Option Agreement provided that the CLS set out in this Option Agreement are met by the Participant.

 

2.1.3.      Part 3 of the Compensation

 

The SPV shall grant to the Participant a right to acquire the Shares constituting 20% of the total Compensation on the Calculation Date for Part 3 of the Compensation (March 31, 2012) in the amount of {please indicate}, which shall constitute {please indicate} % (     percent) of the placed shares of the Company on the date of execution of this Option Agreement provided that the CLS set out in this Option Agreement are met by the Participant.

 

2.1.4.      Part 4 of the Compensation

 

The SPV shall grant to the Participant a right to acquire the Shares constituting 15% of the total Compensation on the Calculation Date for Part 4 of the Compensation (March 31, 2013) in the amount of {please indicate}, which shall constitute {please indicate} % (     percent) of the placed shares of the Company on the date of execution of this Option Agreement provided that the CLS set out in this Option Agreement are met by the Participant.

 

2.1.5.      Part 5 of the Compensation

 

The SPV shall grant to the Participant a right to acquire the Shares constituting 15% of the total Compensation on the Calculation Date for Part 1 of the Compensation (March 31, 2013) in the

 

10

 

amount of {please indicate}, which shall constitute {please indicate} % (     percent) of the placed shares of the Company on the date of execution of this Option Agreement provided that KPI set out in this Option Agreement are achieved by the Company and CLS are met by the Participant.

 

3.     EXERCISE OF THE RIGHT TO THE COMPENSATION

 

3.1. The Participant may only exercise his Right to the Compensation in the form of Shares of the Company partially or in full by way of a written exercise notice given to the SPV in accordance with the procedure set out in clause 11.4 of this Option Agreement. The exercised notice shall include:

 

·      The date on which the exercised notice is given;

 

·      The Statement to the effect that the Participant is exercising his Right to the Compensation with indication of the relevant Part(s) of the Compensation;

 

·      A date expiring after a certain period from the date of the exercise notice, on which the Shares transfer is to be completed.

 

3.2. Pursuant to an additional written agreement between the Parties the Shares, to be granted to the Participant to fulfill his Rights to the Compensation, may be kept by the SPV in its ownership within the agreed term after the granting of the relevant Part of the Compensation but within the Exercise period. Under the said agreement the SPV shall annually pay to the Participant an amount equal to the dividends applicable to these Shares within 5 Business Days after they are transferred to the SPV’s account from the Company. Upon execution of such agreement the Shares shall be granted by the SPV to the Participant in accordance with the procedure set out in this Option Agreement.

 

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3.3. The exercise notice shall be sent by the Participant to the SPV to the address indicated or fax number given in clause 11.4 of this Option Agreement. Once given, an exercise notice may not be revoked without the written consent of the SPV.

 

3.4. The SPV shall provide the holder of the Register for the Company and the Registered Agent for the Company 30 (thirty) Business Days following receipt of notification with regard to execution with respect to the relevant Part of the Compensation with all the required documents evidencing the transfer of the shares’ title to the Participant with observance of and compliance with all the requirements and following such procedures as required by the legislation of British Virgin Islands.

 

3.5. The SPV shall be obliged to provide the Participant with an extract from the shareholders register confirming the fact of making an entry into the Register on the transfer of the Shares to the Participant within 30 (thirty) Business Days following receipt of notification of the Participant’s exercise notice when the respective Part of the Compensation is granted to him. The given term may be increased under circumstances which the SPV may not affect

 

3.6. The Shares shall be transferred with full title guarantee free from all liens, charges and encumbrances and with all rights attached to them at the date of the transfer of the Shares.

 

3.7. The Participant is entitled to sell or dispose otherwise the Shares granted to him in result of exercising his Right to the Compensation under the SOP in accordance with this Option Agreement (this provision, for the avoidance of doubt, is applicable with respect to any Part of the Compensation) in compliance with the pre-emptive rights of the following Company’s shareholders: IBS Group and/ or GROUP-MG and/ or SPV in the procedure set out in Addendum # 1 to this Option Agreement. The pre-emptive rights

 

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of the shareholders enlisted in this article shall be ceased from the Date of the Proposed IPO of the Company.

 

4.              WARRANTIES AND UNDERTAKINGS

 

4.1.  The Company represents and warrants that:

 

a)            as at the execution of this Option Agreement the Participant’s right to obtain the particular Part of the Compensation and the Shares are free from all liens, charges and encumbrances, are not under bail or arrest or encumbrance in any other way, are not the subject of any disputes, there are no court or any other authorities decisions entered into force with regard to the Shares, prohibiting or restricting the right of disposal of the Shares and other rights thereto;

 

b)            there are no established restrictions with regard to the disposal of the Shares which interfere and (or) make it impossible to duly fulfill such obligations.

 

4.2.    The Participant agrees and undertakes to the Company and the SPV that he will not, during the period of his employment with the company within the Group as well as the period of one year following the termination of his employment with the company within the Group, by himself or, through his employees or agents or otherwise and whether directly or indirectly or on his own behalf or on behalf of any person do any of the activities set out in the Non-compete conditions.

 

4.3.    If any Participant will be assessed by the SOP Committee as the Participant terminated the participation in the SOP under Unacceptable Termination Grounds set out in the section Terms and Definitions of this Option Agreement the parties’ (including any relevant third party (if any)) relations should be subject to application of clause 8.2. of this Option Agreement.

 

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4.4.    The SPV represents and warrants to the Participant that:

 

4.4.1.      it has full power and authority to grant the right to acquire the Shares on the terms and conditions of this Option Agreement;

 

4.4.2.      it is, and will remain during the term of this Option Agreement, the legal and beneficial owner of the Shares, subject only to the rights of the Participant under this Option Agreement;

 

4.4.3.      the Shares represent please indicate the percentage) % of the ordinary shares of share capital of the Company issued or agreed to be issued and there is no option or right outstanding in favour of any third party to subscribe for any of the Shares (other than the Participants).

 

5.              TAXATION

 

5.1.    The relationship of the Participant to the SPV or the Company shall not represent employment relations between the Parties and nothing in this Option Agreement shall render the Participant the SPV’s/Company’s employee.

 

5.2. This Option Agreement is not a contract of employment and accordingly the Participant shall be fully responsible for any personal income tax to be paid under the applicable legislation and any other liability, deduction, assessment or claim arising from or made in connection with this Option Agreement, where such recovery is not prohibited by law.

 

5.3.    Accordingly, the Participant will not be entitled to gross-up the amount of the Compensation received pursuant to clause 5.2 of this Option Agreement.

 

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6.           CONDITIONS OF THE RIGHT TO THE COMPENSATION

 

6.1.    The Right to the Compensation shall be personal to the Participant and shall not be transferred or assigned by the Participant otherwise than by last will or by the laws of descent or succession. Any transfer, assignment, or any other dealing with the Compensation by the Participant contrary to the provisions of this Option Agreement shall render the relevant Compensation void, which shall preclude any Right to the Compensation (save for any Shares which have already been issued to the Participant).

 

6.2.    In the event of the death of the Participant prior to receipt of the Compensation and provided that the Participant would have qualified for the Compensation under the terms of this Option Agreement at the date of his death, the Right to Compensation shall be transferred to the designated beneficiary (ies) of the Participant, enlisted in the Addendum # 2 to this Option Agreement provided that the laws of descent or succession in the country where the Participant lived prior to his death permit this and provided that any legal formalities required by such laws of descent or succession have been complied with. Following such transfer, the designated beneficiary may have the right to receive the Compensation in cash in accordance with clause 10 of this Option Agreement.

 

7.           EARLY TERMINATION OF THE OPTION AGREEMENT

 

7.1.    This Option Agreement shall terminate in the event of termination of the employment between the company of the Group and the Participant. In this case the termination date of this Option Agreement shall be the last working day of the Participant with the company within the Group. The following provisions of this Option Agreement shall survive termination of this Option Agreement: clauses 5.2, 6.2, 8.4, 9, 10, 11.2 to 11.10.

 

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8.           TERMINATION OF RIGHTS TO COMPENSATION

 

8.1.    The Parties agree that the Participant shall cease to be entitled to the relevant Part of the Right to the Compensation which have not already been granted to the Participant as provided for by this Option Agreement in the following circumstances:

 

8.1.1.      The Participant has not met the relevant CLS stipulated in this Option Agreement (for Parts 1-5 of the Compensation) except for the case provided for in clause 8.4 of this Option Agreement.

 

8.1.2.      The Company has not met KPI set out in this Option Agreement (for Part 5 of the Compensation).

 

8.2.    The Participant terminated the  participation in the SOP due to Unacceptable Termination Grounds shall be subject to one of the following implications under the SOP Committee decision:

 

a)          The Participant shall be entitled to retain the Shares granted to the Participant by the moment of termination of participation in the SOP but loses his Right to the Compensation which was granted but not exercised by the Participant by the moment of termination of participation in the SOP;

 

b)          The Shares, granted to the Participant by the moment of termination of his participation in the SOP, shall be subject to buy-back in accordance with clause 9 of this Option Agreement. The Participant shall lose his Right to the Compensation which was granted but not exercised by the Participant and to the Compensation which has not been granted to the Participant by the moment of termination of participation in the SOP.

 

8.3.    In cases listed in clause 8.1 of this Option

 

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Agreement the Participant and his beneficiaries enlisted in the Addendum #2 to this Option Agreement, hereby waive any and all rights to Compensation and/or any claims he may have against the Group, Company and SPV by reason of and relating to this Option Agreement including for the avoidance of doubt any claim for damages in respect of this Option Agreement by virtue of the termination of the participation in the SOP.

 

8.4.    If at any time during the term of this Option Agreement the participation in the SOP is  terminated based on Acceptable Termination Grounds, the Participant shall retain his Right to the Part of the Compensation which has accrued during the period of the Employment Agreement under this Option Agreement (rounded up to the nearest number of whole Shares).

 

The exact amount of the Compensation in each case shall be determined by the SOP Committee and indicated in the addendum hereto.

 

8.5.    In case that in result of Change of Control of the Group, which took place at any time during the term of this Option Agreement:

 

8.5.1.      the termination of employment of the Participant by a company within the Group has occurred (termination of the Employment Agreement on the initiative of the company within the Group) — in this case the Participant should be granted with the Right to the Compensation anticipatorily at the moment of termination of employment and in full volume irrespective of achieving KPI by the Company and meeting CLS by the Participant in accordance with this Option Agreement, including, for the avoidance of doubt, the Right to those Parts of the Compensation, which date of grant has not been met by the moment of termination of employment of the Participant:

 

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8.5.2.      the Employment Agreement with the Participant continues — in this case the Participant retains his Right to the Compensation in accordance with this Option Agreement.

 

9.           BUY-BACK CONDITION

 

9.1.    If any Participant will be assessed by the SOP Committee as the Participant terminated the participation in the SOP under Unacceptable Termination Grounds set out in of the section Terms and Definitions of this Option Agreement such Participant, under the SOP Committee decision on application to him of sub-clause b) of clause 8.2 of this Option Agreement, shall be deemed to have offered for sale at a Nominal Value by way of a transfer notice (“Deemed Transfer Notice”) to the SPV and the SPV shall purchase:

 

9.1.1.      all of the Shares held by the Participant;

 

9.1.2.      in respect of all Shares subsequently acquired by the Participant and the holders of the Shares (“Transferred Shares”)  which have been transferred by the Participant after the date of the deemed service of a Deemed Transfer Notice.

 

9.2.    Completion of the sale and purchase of the Shares under clause 9.1 shall take place within ninety (90) days of the Deemed Transfer Notice.

 

9.3.    When the conditions set out in clause 9.1 of this Option Agreement occur:

 

9.3.1.      any transfer notice previously  issued or deemed issued to the Participant in relation to his Shares shall immediately be cancelled (unless all the Shares subject to it

 

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have already been sold) and no further transfer notice shall be issued or deemed to be issued in respect of such Shares (except for Deemed Transfer Notice under clause 9.1. of this Option Agreement); and

 

9.3.2.      none of the Shares which are  the subject of the Deemed Transfer Notice shall entitle the transferor of such Shares to receive notice of, attend or vote at any general meeting of the Company or meeting of the holders of Shares of the same class and such Shares shall not be counted in determining the total number of votes which may be cast at any such meeting or for the purposes of a written resolution of any members or class of members.

 

9.4.    If a Participant fails to transfer any Shares the subject of a Deemed Transfer Notice when required pursuant to clause 9.1 of this Option Agreement, the Board may authorize any person (who shall be deemed to be the attorney of the Participant for that purpose) to execute the necessary transfer of such Shares and deliver it on the Participant’s behalf. The Company may receive the purchase money for the relevant Shares from the SPV and shall, upon receipt of the duly stamped transfer, register the SPV as the holder of those Shares. The Company shall hold the purchase money in a separate bank account on trust for the Participant but shall not be bound to earn or pay interest on any money so held. The Company’s receipt for the purchase money shall be a good discharge to the SPV (who shall not be concerned to see to the application of it). After the name of the SPV has been entered in the register of members in purported exercise of the power conferred by this clause 9.4, the validity of that exercise shall not be questioned by any person.

 

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10.       ACQUISITION OF SHARES/ASSIGMENT OF THE RIGHT TO THE COMPENSATION

 

10.1.         The SPV shall be entitled to propose annually to the Participant to acquire his Shares and/ or assign the Rights to the Compensation and to provide the Participant with the relevant  consideration (hereinafter — “Consideration”).

 

10.2.         The proposal for acquisition of the Shares/ assignment of the Rights to the Compensation shall be sent by the SPV to the Participant by way of a notification, indicating the following:

 

a)             date of the proposed acquisition/ assignment;

 

b)             amount of Consideration, determined on the basis of evaluation performed by the Company;

 

c)              quantity of Shares/ Rights to the Compensation to be acquired by the SPV in the respective period (quota);

 

d)             term within which the Participant shall submit an application to the SPV of his intention to sell the Shares/ to assign the Right(s) to the Compensation.

 

10.3.         In case the Participant agrees to the above proposal he shall express his intention to sell the Shares/ assign his Right(s) to the Compensation by virtue of submitting to the SPV a written application within the term indicated in the notification, stipulating the quantity of the Shares to be the subject of the sale/ assignment of the Right(s) to the Compensation to the SPV.

 

10.4.         The SPV shall within 3 (three) Business Days of receipt of the application shall make an assessment of the application and shall inform the Participant of the exact amount of Shares/ Right(s) to the Compensation

 

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subject to acquisition/assignment by the SPV, based on the quota by virtue of notification.

 

10.5.         If the Participant accepts the offer by the SPV to acquire the Shares/ assign the Right(s) to the Compensation, on the terms offered, the Parties shall enter into an agreement in relation to the sale of the Shares/ assignment of the Right(s) to the Compensation.

 

11.       MISCELLANEOUS

 

11.1.           Employment.

 

This Option Agreement shall not in any way alter the Participant’s employment status with any company within the Group or guarantee employment for any period of time, and it does not establish or construe any part of labor relations between the Participant, SPV and the Company.

 

11.2.           Confidentiality.

 

The Parties undertake to observe confidentiality in all matters related to this Option Agreement and their performance hereunder.

 

Confidential information shall be any information transferred or disclosed by any of the Parties to the other in the course of performance of this Option Agreement. This clause shall not apply to information and data which is:

 

·    generally available to the public otherwise than through the default of the Participant;

 

· available or becomes available to one Party on a non-confidential basis from a source other than the other Party;

 

· becomes known to one Party independent of any information furnished by one of the other Parties;

 

·    disclosed pursuant to a legal  requirement or by an order of the

 

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court or which is a protected disclosure in accordance with the Public Interest Disclosure Act 1998 (if applicable).

 

Confidential information can be stated in letters, notices and other documents, both in physical and electronic forms.

 

Unless otherwise stipulated in the legislation, the Parties will:

 

·    not share, discuss the content, provide copies, publish or disclose in any other form to third parties Confidential information without the prior written consent of the other Party. The written consent is not required if disclosure to the state authorities authorized to request such information is required by law, on the basis of the duly executed request to provide such information, judicial bodies and representatives of the appropriate Party for the purpose of defending and exercising rights under this Option Agreement (in all abovementioned cases — without notifying the other party);

 

·    take all measures and use all legal means for protecting Confidential information and avoiding its unauthorized disclosure;

 

·    use Confidential information only for purposes of implementing the Option Agreement;

 

·    not disclose to third parties the fact of the transfer or obtaining of Confidential information.

 

The participant agrees to keep the

 

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existence and terms of this Option Agreement strictly confidential and will not divulge such terms to any person, except for members of his immediate family, and any advisors consulted by the Participant for legal, financial or tax advice in respect of this Option Agreement and/or assistance in ensuring compliance with the terms herein.

 

11.3.       Governing Law; Resolution of Disputes.

 

This Option Agreement shall be governed by and construed in accordance with the laws of England and Wales. Any Dispute shall be referred to and finally resolved by the London Court of International Arbitration for final and binding resolution under UNCITRAL rules, which rules are deemed to be incorporated by reference into this clause. The arbitration shall be conducted in the City of London, before one arbitrator appointed in accordance with the UNCITRAL rules and the language of the arbitration shall be English. The arbitrator shall have the power to issue such orders for interim relief pending final award as may be necessary to preserve the rights of the Parties, without prejudice to the final determination of the Dispute. Any arbitral award shall be in writing and shall state the reasons therefore.

 

11.4.       Notices and notifications.

 

Any notice or notification to be given under this Option Agreement will be in writing and shall be signed by or on behalf of a Party giving it and will be deemed to be sufficiently served by one Party on the other if it is either sent by fax, delivered personally or by an international or courier service and addressed to the Party to whom it is to be given, in the case of the Participant at his last known residence. Any notice or notification so served by hand, fax or overnight courier shall be deemed to have been duly given.

 

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(i)             in the case of delivery by hand, when delivered;

 

(ii)          in the case of fax, at the time of transmission;

 

(iii)       in the case of overnight delivery, at noon on the next Business Day following the date of delivery to the courier;

 

provided that in each case where delivery by hand or by fax occurs after 6 p.m. on a Business Day or on a day which is not a Business Day, service shall be deemed to occur at 9 a.m. on the next following Business Day.

 

Any notice or notification shall be given by the Parties at the following addresses:

 

To the SPV: {please indicate}

 

To the IBS Group: {please indicate}.

 

To the Group — MG : {please indicate}.

 

To the Participant: {please indicate}

 

To the Company: {please indicate}.

 

11.5.       Sections and Headings.

 

All section references in this Option Agreement are to sections hereof for convenience of reference only and are not to affect the meaning of any provision of this Option Agreement.

 

11.6.       Language.

 

The Option Agreement is made in five copies, one copy for each Party, each of five copies being of equal legal power. Should different interpretations arise from translation, the English version shall prevail.

 

All notices, demands, requests,

 

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statements, certificates or other  documents or communications shall be in English unless otherwise agreed upon by the Parties.

 

11.7.       Counterparts.

 

This Option Agreement may be executed in any number of counterparts and by the Parties to it on separate counterparts, each of which is an original but all of which together constitute one and the same instrument.

 

11.8.       Waiver.

 

No failure or delay by any Party in exercising any right or remedy provided by law or under or pursuant to this Option Agreement shall impair such right or remedy or operate or be construed as a waiver or variation of it or preclude its exercise at any subsequent time and no single or partial exercise of any such right or remedy shall preclude any other or further exercise of it or the exercise of any other right or remedy.

 

No provision in this Option Agreement may be amended unless such amendment is agreed to in writing, signed by the Participant and by a duly authorised officer of the SPV and the Company. No waiver by either Party of any breach by the other Party of any condition or provision of this Option Agreement to be performed by such other Party shall be deemed a waiver of a similar or dissimilar condition or provision at the same or any prior or subsequent time. Any waiver must be in writing and signed by the Participant or a duly authorised officer of the Company and the SPV, as the case may be.

 

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11.9.                     Third Party Rights

 

According to The Contracts (Rights of Third Parties) Act, no third party which is not the party of this Option Agreement, except for any company within the Group, any shareholder(s) of the Company and the beneficiary (ies) of the Participant specified in the Addendum #2 to this Optional Agreement, shall have any right with regard to the fulfillment of conditions of current Option Agreement, and shall not have any demand regarding its execution.

 

11.10.              Severability

 

If any provision of this Option Agreement (or part of a provision) is found by any court or administrative body of competent jurisdiction to be invalid, unenforceable or illegal, the other provisions shall remain in force. If any invalid, unenforceable or illegal provision would be valid, enforceable or legal if some part of it were deleted, the provision shall apply with whatever modification is necessary to give effect to the commercial intentions of the Parties.

 

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EXECUTED AS A DEED as of the date first written above.

 

 

	
SIGNED on behalf of the Company
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Director
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
SIGNED on behalf of the SPV
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Director
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
SIGNED by the Participant
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
SIGNED on behalf of IBS Group
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Director
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
SIGNED on behalf of GROUP-MG
    	
 
    
	
 
    	
 
    
	
Authorized   person
    	
 
    
	
 
    	
 
    
	
 
    	
 
    

 

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Addendum #1 to the Option Agreement dated (please insert the data of the Option Agreement)

 

THE ORDER OF DISPOSAL OF THE SHARES IN COMPLIANCE WITH THE PRE-EMPTIVE RIGHTS OF THE COMPANY’S SHAREHOLDERS: IBS GROUP HOLDING LIMITED, GROUP-MG FOUNDATION AND SPV

 

DEFINITIONS AND INTERPRETATION

 

The following words and expressions mentioned in this Addendum shall have, where the context so admits, the following meanings:

 

Articles: the articles of association of the Company as amended from time to time.

 

Director: director of the Company.

 

Encumbrance: any mortgage, charge, pledge, lien, restriction, assignment, hypothecation, security interest, title retention or any other agreement or arrangement the effect of which is the creation of security, or any other interest, equity or other right of any person (including any right to acquire, option, right of first refusal or right of pre-emption), or any agreement or arrangement to create any of the same.

 

SECTION 1

 

1.1.                            General prohibition

 

The Participant is entitled to do, or agree to do, any of the following only in compliance with the procedure set out in this Addendum, or agreed by the other shareholders of the Company in writing:

 

a)             Sell, transfer or otherwise dispose of, any of his Shares or any interest in any of his Shares;

 

b)             Encumber any of his Shares or any interest in any of his Shares.

 

c)              Enter into any agreement or arrangement in respect of the votes or

 

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other rights attached to any of his Shares;

 

d)             Enter into any agreement or arrangement to do any of the foregoing.

 

1.2.                            Transfer to third parties

 

The Participant (hereinafter, the “Selling Participant”)  may transfer his Shares to a third party only if it receives an offer from such third party (hereinafter, the “Offer”)  which:

 

(a)         Is a bona fide offer in writing;

 

(b)         Is from a third party which has its own financial resources to meet its obligations under the Offer or has a legally binding commitment from a lender for financing of the Share transfer in accordance with the terms of the transfer;

 

(c)          Is irrevocable during the period of the Offer, which cannot be less than 40 (forty) days;

 

(d)         Is governed by English law;

 

(e)          Is for cash consideration only; and

 

(f)           Contains all material terms and conditions (including the price and the intended completion date of the Offer);

 

And in circumstances in which the Participant complies with the remaining provisions of this Addendum.

 

1.3.                            Notice of offers

 

If a Selling Participant receives an Offer which he wishes to accept, he must immediately give written notice to the shareholders of the Company indicated in clause 3.7. of the Option Agreement (the hereinafter, the “Remaining Shareholders”). This notice shall contain the details of the proposed purchaser,

 

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number of the Shares and the purchase price for the Shares (hereinafter, the “Transfer Notice”),  as well as an offer to sell those Shares which are subject to the Offer to the Remaining Shareholder(s) at the same cash price as set out in the Offer and on terms which are no less favorable than those contained in the Offer. The Transfer Notice shall also contain full details of all other terms and conditions of the Offer.

 

1.4.                            Options of Remaining Shareholders

 

Once the Remaining Shareholder has(ve) received a Transfer Notice it/they may:

 

(a)         Send a written notice to the Selling Participant within 30 (thirty) calendar days accepting the offer set out in the Transfer Notice;

 

(b)         Send a written notice to the Selling Participant within 30 (thirty) calendar days declining the offer set out in the Transfer Notice;

 

(c)          Not reply to the Transfer Notice within 30 (thirty) calendar days or reply in a manner other than as specified in points (a), (b) of this clause. In those cases the Remaining Shareholder(s) shall be deemed not to have accepted the offer set out in the Transfer Notice.

 

1.5.                            Consequences of Transfer Notice

 

(a)         If the offer set out in the Transfer Notice is accepted, the Selling Participant must sell his Shares to the Remaining Shareholders.

 

(b)         If the offer set out in the Transfer Notice is not accepted, or deemed

 

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not to be accepted, the Selling Participant may accept the Offer and sell his Shares on the terms and conditions of the Offer.

 

1.6.                            Completion of transfer

 

The sale of the Shares pursuant to this Addendum # 1 shall be made on the following terms:

 

(a)         Completion of the transfer of the Shares shall take place 7 (seven) Business Days after the date of expiry of 30 (thirty) calendar days period from the Transfer Notice receipt or any later date according to the Offer (hereinafter, the “Transfer Date”)  and at such reasonable time and place as the shareholders agree or, failing which, at noon at the registered office of the Company;

 

(b)         the Selling Participant and, if relevant, the Remaining Shareholder (s) must deliver to the purchaser in respect of the Shares which it/they is/are selling on or before the Transfer Date;

 

i.                  duly executed share transfer forms;

 

ii.               the relevant share certificates; and

 

iii.            a power of attorney in such form and in favor of such person as the purchaser may nominate to enable the purchaser to exercise all rights of ownership in respect of the Shares to be sold including voting rights;

 

(c)          the purchaser must pay the total consideration due for the Shares to the Selling Participant and, if relevant, the Remaining Shareholder(s) by the same day transfer of funds to the bank account(s) notified to it for the purpose on the Transfer Date;

 

(d)         if relevant, completion of the sale of the Shares of the Selling Participant and

 

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the Remaining Shareholders must take place simultaneously; and

 

(e)          in accordance with the provisions of Section 2 of this Addendum.

 

1.7.                            The provisions of paragraphs 1.1. to 1.6. shall not apply to transfers of any Shares by the Participant to third parties after the Date of the Proposed IPO.

 

1.8                               Failure to complete sale

 

(a)         If the Selling Participant and/or, if relevant, the Remaining Shareholder(s) fail(s) or refuse(s) to comply with his/their obligations under this Addendum, the Company may authorize a person to execute and deliver the necessary transfer on his/their behalf. The Company may receive the purchase money in trust for the Selling Participant and/or, if relevant, to the Remaining Shareholder(s) and cause the purchaser to be registered as the holder of the Shares being sold. The receipt of the Company for the purchase money shall be a good discharge to the purchaser (who shall not be bound to see to the application of those moneys). After the purchaser has been registered as holder of the Shares being sold in purported exercise of these powers, the validity of the proceedings shall not be questioned by any person.

 

(b)         If a Selling Participant fails or refuses to transfer any Shares in accordance with this Addendum, the other shareholder(s) may serve a default notice. At the end of the period of 5(five) Business Days from the date of service of such a default notice (unless the non-compliance has previously been remedied to the reasonable satisfaction of the other shareholder), the defaulting Participant shall not be entitled to exercise any of his/their rights in

 

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relation to this Option Agreement and the Articles. The directors appointed by the defaulting Participant (or his predecessor(s) in title) shall not:

 

i.                  Be entitled to vote at any Board meetings;

 

ii.               Be required to attend any meeting of Directors in order to constitute a quorum; or

 

iii.            Be entitled to receive or request any information from the Company.

 

1.9.                            General

 

The Participants shall keep the Company informed, at all times, on the issue and contents of any notice(s) served pursuant to this Addendum and any election or acceptance relating to those notices.

 

SECTION 2:        SHARE TRANSFER PROVISIONS

 

2.1.    Any sale and/or transfer of Shares pursuant to the Option Agreement shall be on terms that those Shares:

 

·                  are transferred with full legal and beneficial title free from all Encumbrances; and

 

·                  are transferred with the benefit of all rights attaching to them as at the date of the agreement to sell or transfer the Shares, as appropriate but without the benefit of any other warranties or representations whatsoever.

 

2.2.    The Directors shall promptly register any transfer of Shares permitted by the Option Agreement and each Participant

 

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shall procure that each Director appointed by him shall comply with this obligation.

 

2.3.    The parties shall procure that a transfer of Shares is not approved for  registration unless the Option Agreement and the Articles have been complied with. The Company shall procure that each share certificate for Shares issued by it shall carry the following statement:

 

“Any disposition, transfer, change of or dealing in any other in the Shares represented by this certificate is restricted by the Option Agreement dated {please indicate the date of the Option Agreement} and made between Luxoft Holding Inc., Luxoft SOP Company S.A., IBS Group, GROUP- MG and {please indicate the name of the Participant}.”

 

2.4.    Each party shall do all things and carry out all acts which are reasonably necessary to effect the transfer of the Shares in accordance with the terms of the Option Agreement in a timely fashion.

 

2.5.    On ceasing to be a shareholder, the Participant must use reasonable endeavours to hand over to the Company, save to the extent required by law, material correspondence, budgets, business plans, schedules, documents and records relating to the business held by him or any third party which has acquired such matter through that Participant and shall not keep any copies.

 

2.6.    Upon a transfer of all the Shares held by the Participant

 

·                  the continuing shareholder shall procure that all loans, borrowings and indebtedness in the nature of borrowings outstanding owed by the Company to the transferring Participant (together with any  accrued interest) are either assigned to the continuing

 

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shareholder for such value as may be agreed between the transferring Participant and the continuing shareholder, or  failing agreement with the continuing shareholder, are repaid by the Company;

 

·             all loans, borrowings and indebtedness in the nature of borrowings outstanding owed by that transferring Participant to the Company shall be repaid; and

 

·             the continuing shareholder shall use all reasonable endeavors (but without involving any financial obligation on its part) to procure the release of any guarantees, indemnities, security or other comfort given by the transferring Participant to or in respect of the Company or its business.

 

2.7.    Any assumption of the obligation of the transferring Participant by the continuing shareholder(s) is without prejudice to the right of the continuing shareholder and/or the Company to claim from the transferring Participant in respect of liabilities arising prior to the completion date of the transfer of Shares.

 

2.8.    If a Participant ceases to be a shareholder it shall immediately upon transfer of his Shares procure the resignation of all his appointees to the Board. If the continuing shareholder(s) requests, it shall do all such things and sign all such documents as may otherwise be necessary to procure the resignation or dismissal of such person in a timely manner.

 

2.9.    Those resignations shall take effect without any liabilities on the Company for compensation for loss of office or otherwise except to the extent that the liability arises in relation to a service contract with a Director who was acting in an executive capacity. Any Participant removing a Director appointed by him shall fully indemnify and hold harmless the other

 

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shareholder and the Company from and against any claim for unfair or wrongful dismissal arising out of such removal.

 

36

 

Addendum # 2 to the Option Agreement dated (Please insert the date of the Option Agreement)

 

List of beneficiary(ies) of the Participant

 

	
Name, Patronymic, Surname
    	
 
    	
Passport details
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

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