Document:

Revolving line of credit between EPAM and PNC

 Exhibit 10.1 
 November 22, 2006 
 Ilya Cantor, Vice President, Chief Financial Officer

 EPAM Systems, Inc. 
 989 Lenox Drive, Suite 305 
 Lawrenceville, NJ 08648 

 

	 Re:
	 $7,000,000.00 Committed Line of Credit 

 Dear Ilya: 
 We are pleased to inform you that PNC Bank, National
Association (the “Bank”), has approved your request for a committed line of credit to EPAM Systems, Inc., a Delaware corporation (the “Borrower”). We look forward to this opportunity to help you meet the financing
needs of your business. All the details regarding your line of credit are outlined in the following sections of this letter. 
 1. Facility and Use of Proceeds. This is a committed revolving line of credit under which the Borrower may request and the Bank, subject to the terms and conditions of this letter, will make
advances to the Borrower from time to time until the Expiration Date, in an amount in the aggregate at any time outstanding not to exceed $7,000,000.00 (the “Line of Credit” or the “Loan”). The “Expiration
Date” means November 22, 2011, or such later date as may be designated by the Bank by written notice to the Borrower. Advances under the Line of Credit will be used for working capital, other general business purposes and acquisitions
by the Borrower. The Borrower may request that the Bank, in lieu of cash advances, issue standby letters of credit (individually, a “Letter of Credit” and collectively the “Letters of Credit”) under the Line of
Credit provided, however, that the total amount of outstanding Letters of Credit issued hereunder shall not exceed $500,000.00 and not have expiration dates which exceed twelve (12) months beyond the Expiration Date. The availability of
advances under the Line of Credit shall be reduced by the face amount of each Letter of Credit issued and outstanding (whether or not drawn). Each payment by the Bank under a Letter of Credit shall in the Bank’s discretion constitute an advance
of principal under the Line of Credit and shall be evidenced by the Note (as defined below). The Letters of Credit shall be governed by one or more reimbursement agreements executed by the Borrower (the “Reimbursement Agreement”).
Each request for the issuance of a Letter of Credit must be accompanied by the Borrower’s execution of an application on the Bank’s standard forms, together with all supporting documentation. Each Letter of Credit will be issued in the
Bank’s sole discretion and in a form acceptable to the Bank. The Borrower shall pay the Bank a fee for the issuance of each trade letter of credit at the Bank’s standard rates; and for each standby Letter of Credit equal to
1 1/2% per annum

 EPAM Systems, Inc. 

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of the face amount of each Letter of Credit upon issuance, payable quarterly in arrears, together with such other customary fees, commissions and expenses therefor as shall be reasonably required
by the Bank. This letter is not a pre-advice for the issuance of a letter of credit and is not irrevocable. 

The availability of advances under the Line of Credit will be subject to a borrowing base formula and other provisions as
set forth in a Borrowing Base Rider dated on or about the date of this Letter Agreement between the Borrower and the Bank, the terms of which are incorporated herein by reference (the “Borrowing Base Rider”). At no time shall the
sum of outstanding advances under the Line of Credit plus the face amount of any outstanding Letters of Credit (whether or not drawn) exceed the Borrowing Base (as defined in the Borrowing Base Rider). Pursuant to the Borrowing Base Rider, the
Borrower will be required to deliver periodic Borrowing Base Certificates, reporting on its accounts in accordance with defined eligibility standards, as a condition to advances under the Line of Credit. 

2. Note. The obligation of the Borrower to repay advances under the Line of Credit shall be evidenced by a promissory note (the
“Note”) in form and content satisfactory to the Bank. 
 This letter (this “Letter
Agreement”), the Note and the other agreements and documents executed and/or delivered pursuant hereto, as each may be amended, modified, extended or renewed from time to time, will constitute the “Loan Documents.”
Capitalized terms not defined herein shall have the meaning ascribed to them in the Loan Documents. 
 3. Interest Rate.
Interest on the unpaid balance of the Line of Credit advances will be charged at the rates, and be payable on the dates and times, set forth in the Note. 
 4. Repayment. Subject to the terms and conditions of this Letter Agreement, the Borrower may borrow, repay and reborrow under the Line of Credit until the Expiration Date, on which date the
outstanding principal balance and any accrued but unpaid interest shall be due and payable. Interest will be due and payable as set forth in the Note, and will be computed on the basis of a year of 360 days and paid on the actual number of days that
principal is outstanding. 
 5. Security. The Borrower must cause or has previously caused the following to be executed
and delivered to the Bank in form and content satisfactory to the Bank as security for the Loan: 
 (a) a
security agreement granting the Bank a first priority perfected lien on the Borrower’s United States accounts receivables, and (b) subject to compliance with the conditions subsequent described below regarding perfection of the Bank’s
security interest therein, the Borrower’s accounts receivable owed from account debtors located in Germany (the “German Receivables”). 
 The Loan will be cross-collateralized with all other present and future Obligations (as defined in the Loan Documents) of the Borrower to the Bank. 

  

 EPAM Systems, Inc. 

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 6. Covenants. Unless compliance is waived in writing by the Bank, until payment
in full of the Loan and termination of the commitment for the Line of Credit: 
 (a) The Borrower will promptly
submit to the Bank such information as the Bank may reasonably request relating to the Borrower’s affairs (including but not limited to annual Financial Statements (as hereinafter defined) and tax returns for the Borrower, and/or any other
documentation describing the collateral for the security interest granted by Borrower hereunder). 
 (b) The
Borrower will not make or permit any change in its form of organization or the nature of its business as carried on as of the date of this Letter Agreement. Further, no change in control to the Borrower shall occur. For purposes of this subsection,
“change in control” shall mean any transaction after which it is consummated in which Russia Partners II, LP and Russia Partners II EPAM Fund, LP or their successors, Landmark Business Development Limited, Arkadiy Dobkin, David Scott,
Leonid Lozner, Balasz Fejes and Anatoly Gaverdovsky (in the case of each individual, such individual or his designee or assignee (including without limitation a trust) for estate planning purposes) collectively own or control less than fifty
(50%) of the voting power of Borrower or its successor-in-interest. 
 (c) The Borrower will notify the
Bank in writing of the occurrence of any Event of Default or an act or condition which, with the passage of time, the giving of notice or both might become an Event of Default. 

(d) The Borrower will use commercially reasonable efforts to comply with the financial and other covenants included in
Exhibit “A” hereto. 
 7. Representations and Warranties. To induce the Bank to extend the Loan and upon the
making of each advance to the Borrower or issuing any Letter of Credit under the Line of Credit, the Borrower represents and warrants as follows: 
 (a) The Borrower’s latest Financial Statements provided to the Bank are true, complete and accurate in all material respects and fairly present the financial condition, assets and liabilities,
whether accrued, absolute, contingent or otherwise, and the results of the Borrower’s operations for the period specified therein. The Borrower’s Financial Statements have been prepared in accordance with generally accepted accounting
principles consistently applied from period to period subject, in the case of interim statements, to normal year-end adjustments. Since the date of the latest Financial Statements provided to the Bank, the Borrower has not suffered any damage,
destruction or loss which has materially adversely affected its business, assets, operations, financial condition or results of operations. 
 (b) There are no actions, suits, proceedings or governmental investigations pending or, to the knowledge of the Borrower, threatened in writing against the Borrower which should result in a material
adverse change in its business, assets, operations, financial condition or results of operations and, there is no basis known to the Borrower or its officers, directors or shareholders for any such action, suit, proceedings or investigation.

  

 EPAM Systems, Inc. 

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 (c) The Borrower has filed all returns and reports that are required to
be filed by it in connection with any federal, state or local tax, duty or charge levied, assessed or imposed upon the Borrower or its property, including unemployment, social security and similar taxes and all of such taxes have been either paid or
adequate reserve or other provision has been made therefor. 
 (d) The Borrower is duly organized, validly
existing and in good standing under the laws of the state of its incorporation or organization and has the power and authority to own and operate its assets and to conduct its business as now or proposed to be carried on, and is duly qualified,
licensed and in good standing to do business in all jurisdictions where its ownership of property or the nature of its business requires such qualification or licensing, except in cases where the lack of qualification, licensing or being in good
standing should not have a material adverse effect on the Borrower or its assets. 
 (e) The Borrower has full
power and authority to enter into the transactions provided for in this Letter Agreement and has been duly authorized to do so by all necessary and appropriate action and when executed and delivered by the Borrower, this Letter Agreement and the
other Loan Documents will constitute the legal, valid and binding obligations of the Borrower, enforceable against the Borrower in accordance with their terms. 
 (f) There does not exist any material default or violation by the Borrower of or under any of the terms, conditions or obligations of the following, which, in each case, should have a material adverse
effect on the Borrower or its assets: (i) its organizational documents; (ii) any indenture, mortgage, deed of trust, franchise, permit, contract, agreement, or other instrument to which it is a party or by which it is bound; or
(iii) any law, regulation, ruling, order, injunction, decree, condition or other requirement applicable to or imposed upon the Borrower by any law or by any governmental authority, court or agency. 

8. Fees. Beginning on the 15th day of the quarter after the date of the Note and continuing on the 15th day of each quarter
thereafter until the Expiration Date, the Borrower shall pay a commitment fee to the Bank, in arrears, at the rate of one fifth percent (.20%) per annum on the average daily balance of the Line of Credit which is undisbursed and uncancelled during
the preceding quarter. The commitment fee shall be computed on the basis of a year of 360 days and paid on the actual number of days elapsed. 
 9. Expenses. The Borrower will reimburse the Bank for the Bank’s out-of-pocket expenses incurred or to be incurred at any time in conducting UCC, title and other public record searches, and in
filing and recording, from time to time, documents in the public records to perfect the Bank’s liens and security interests pursuant to the terms of the Loan Documents. The Borrower shall also reimburse the Bank for the Bank’s reasonable
expenses (including the reasonable attorneys’ fees and expenses) (a) in documenting and closing this transaction in the amount of up to $5,000.00 for the initial making of the Loan, (b) in connection with any amendments, modifications
or renewals of the Loan, and (c) in connection with the collection of all of the Borrower’s Obligations to the Bank, including but not limited to enforcement actions relating to the Loan. The Borrower shall also

  

 EPAM Systems, Inc. 

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reimburse the Bank for the Bank’s reasonable expenses (including reasonable attorneys’ fees) for the purpose of documenting and perfecting the Bank’s security interest in the
German Receivables. 
 10. Depository. The Borrower will establish and maintain at the Bank the Borrower’s primary
depository accounts. 
 11. Other Conditions to Advances. The Bank will not be obligated to make any advance under the
Line of Credit until the Borrower has provided the following, all in form and content reasonably satisfactory to the Bank: a final report by a professional consultant retained by the Bank regarding accounts receivable of the Borrower given as
collateral hereunder satisfactory to the Bank; an opinion of counsel to the Borrower addressing such matters relating to the Borrower and this transaction as the Bank may reasonably request Further, to the extent that the Bank does not hold a
perfected security interest in the German Receivables, the Bank shall have no obligation to make any advance under the Line of Credit tied to availability for German Receivables and accordingly, the Borrowing Base (as such term is defined in the
Borrowing Base Rider) shall not extend to and take into account the German Receivables. 
 12. Additional Provisions.
Before the first advance under the Loan and/or the issuance of any Letter of Credit, the Borrower shall execute and deliver to the Bank the Note, an application for each Letter of Credit, the Reimbursement Agreement and the other required Loan
Documents and such other instruments and documents as the Bank may reasonably request, such as certified resolutions, incumbency certificates or other evidence of authority. The Bank will not be obligated to make any advance or to issue any Letter
of Credit under the Line of Credit if any Event of Default or event which with the passage of time, provision of notice or both would constitute an Event of Default shall have occurred and be continuing. 

Prior to execution of the Loan Documents, the Bank may terminate this Letter Agreement if a material adverse change
occurs with respect to the Borrower or any collateral for the Loan, or if the Borrower fails to comply with any of the terms and conditions of this Letter Agreement, or if the Bank reasonably determines that any of the conditions cannot be met.

 This Letter Agreement is governed by the laws of New Jersey. No modification, amendment or waiver of any of
the terms of this Letter Agreement, nor any consent to any departure by the Borrower therefrom, will be effective unless made in a writing signed by the party to be charged, and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. This Letter Agreement and the other Loan Documents shall constitute the entire agreement between the Bank and the Borrower concerning the Loan, and shall replace all prior understandings, statements,
negotiations and written materials relating to the Loan. 
 The Bank will not be responsible for any damages,
consequential, incidental, special, punitive or otherwise, that may be incurred or alleged by any person or entity, including the Borrower, as a result of this Letter Agreement, the other Loan Documents, the transactions contemplated hereby or
thereby, or the use of proceeds of the Loan. 
 THE BORROWER AND THE BANK IRREVOCABLY WAIVE ANY AND ALL RIGHTS
THEY MAY HAVE TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR CLAIM OF ANY NATURE ARISING OUT OF THIS LETTER AGREEMENT, THE OTHER LOAN DOCUMENTS AND THE TRANSACTIONS CONTEMPLATED IN ANY OF SUCH

  

 EPAM Systems, Inc. 

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DOCUMENTS AND ACKNOWLEDGE THAT THE FOREGOING WAIVER IS KNOWING AND VOLUNTARY. 
 If and when a loan closing occurs, this Letter Agreement (as the same may be amended from time to time) shall survive the closing and will serve as our loan agreement throughout the term of the Loan.

 To accept these terms, please sign the enclosed copy of this Letter Agreement as set forth below and the Loan
Documents and return them to the Bank within 15 days from the date of this Letter Agreement, or this Letter Agreement may be terminated at the Bank’s option without liability or further obligation of the Bank. 

Thank you for giving PNC Bank this opportunity to work with your business. We look forward to other ways in which we may
be of service to your business or to you personally. 
  

			
	 Very truly yours,

	
	 PNC BANK, NATIONAL ASSOCIATION

		
	 By:
	 	 /s/ Virginia G. Alling

		 	Virginia G. Alling
		 	Vice President

  

 EPAM Systems, Inc. 

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 ACCEPTANCE 
 With the intent to be legally bound hereby, the above terms and conditions are hereby agreed to and accepted as of this 22 day of November, 2006. 

 

			
	 BORROWER:

	
	 EPAM Systems, Inc.

		
	 By:
	 	 /s/ Ilya Cantor

		 	(SEAL)

			
		
	 Print Name:
	 	 Ilya Cantor

			
		
	 Title:
	 	 CFO

  

 EXHIBIT A 
 TO LETTER AGREEMENT 
 DATED November 22, 2006 

A. FINANCIAL REPORTING COVENANTS: 

(1) The Borrower will deliver to the Bank: 

(a) Consolidated Financial Statements for its fiscal year, within six months after fiscal year end, audited and certified
without qualification by a certified public accountant acceptable to the Bank. 
 (b) Un-audited Consolidated and
Consolidating Financial Statements, within 90 days after fiscal year end. 
 (c) Un-audited
Consolidated and Consolidating Financial Statements, within 45 days of each 1st, 2nd and
3rd quarter end. 

(d) With each delivery of Financial Statements, a certificate of the Borrower’s chief financial officer as to the
Borrower’s compliance with the financial covenants set forth below, if any, for the period then ended and whether any Event of Default exists, and, if so, the nature thereof and the corrective measures the Borrower proposes to take. This
certificate shall set forth all detailed calculations necessary to demonstrate such compliance. 

“Financial Statements” means the consolidated and consolidating, as the case may be, balance sheet and
statements of income and cash flows prepared in accordance with generally accepted accounting principles in effect from time to time (“GAAP”) applied on a consistent basis (subject in the case of interim statements to normal
year-end adjustments). 
 In the event that any financial information submitted to the Bank has been prepared by
an outside accountant, the same shall be accompanied by a statement in writing signed by the accountant disclosing that the accountant is aware that the information prepared by the accountant would be submitted to and relied upon by the Bank in
connection with the Bank’s determination to grant or continue credit. 
 B. FINANCIAL COVENANTS:

 (1) The Borrower will maintain at all times a ratio of Funded Debt to EBITDA of less than 2.5 to 1.

 (2) The Borrower will maintain as of the end of each fiscal quarter, on a rolling four quarters basis, a
Fixed Charge Coverage Ratio of at least 1.25 to 1. 
 (3) In the event, the Borrower takes an action to purchase
or redeem any of its equity as described in paragraph (4) of NEGATIVE COVENANTS below, the Borrower shall demonstrate to the Bank at that time that the ratio of its then current remaining

 EPAM Systems, Inc. 

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availability under the Bank’s Line of Credit plus current remaining availability under line(s) of credit offered by other lenders plus Borrower’s cash to the aggregate of
the total Line of Credit then offered by the Bank plus the total line(s) of credit offered by other lenders is at least thirty (30 %) percent. As used herein: 

“Current Maturities” means the scheduled payments of principal on all indebtedness for borrowed money
having an original term of more than one year (including but not limited to amortization of capitalized lease obligations), as shown on the Borrower’s Financial Statements as of one year prior to the date of determination. 

“EBITDA” means net income plus interest expense plus income tax expense plus
depreciation plus amortization. 
 “Fixed Charge Coverage Ratio” means (i) EBITDA,
divided by (ii) the sum of Current Maturities plus interest expense plus cash taxes paid plus dividends plus Unfunded Capital Expenditures. 

“Funded Debt” means all indebtedness for borrowed money, including but not limited to capitalized lease
obligations, reimbursement obligations in respect of letters of credit, and guaranties of any such indebtedness. 
 “Unfunded Capital Expenditures” means capital expenditures made from the Borrower’s funds other than funds borrowed as term debt to finance such capital expenditures. 

All of the above financial covenants shall be computed and determined in accordance with GAAP applied on a consistent
basis (subject to normal year-end adjustments). 
 C. NEGATIVE COVENANTS: 

(1) The Borrower will not create, assume, incur or suffer to exist any encumbrance, security interest, lien or charge of
any kind upon any of its accounts receivables that it grants a security interest in favor of Bank pursuant to the terms of the Loan Documents, now owned or hereafter acquired; provided, however, that the foregoing restrictions shall
not prevent the Borrower from: 
 (a) incurring liens for taxes, assessments or governmental charges or levies
which shall not at the time be due and payable or can thereafter be paid without penalty or are being contested in good faith by appropriate proceedings diligently conducted and with respect to which it has created adequate reserves; 

  

 (b) making pledges or deposits to secure obligations under workers’
compensation laws or similar legislation; or 
 (c) granting liens or security interests in favor of the Bank,
and European Bank for Reconstruction Development (“EBRD”) or such other internationally recognized financial lender or investor (“Other Third Party Institution”) (EBRD and Other Third Party Institution shall
collectively be referred to as the “Qualified Financial Institution”). 
 (2) The Borrower will not
create, incur, guarantee, endorse (except endorsements in the course of collection), assume or suffer to exist any indebtedness, except: 
 (a) indebtedness to the Bank and to a Qualified Financial Institution; 
 (b) open account trade debt incurred in the ordinary course of business and not past due; and 
 (c) pursuant the Borrower’s amended and restated certificate of incorporation filed with the Delaware Secretary of State on January 19, 2006, as amended from time to time (the
“Borrower’s Charter’). 
 (3) The Borrower will not voluntarily liquidate, or dissolve, or
merge or consolidate with any person, firm, corporation or other entity, or sell, lease, transfer or otherwise dispose of all or any substantial part of its property or assets, whether now owned or hereafter acquired, except that nothing contained
herein shall prohibit the Borrower to (a) cause one or more of its affiliated entities to merge with or into Borrower for tax or other lawful strategic planning purposes, and (b) at the advice of its accountants and counsel, consummate a
reorganization of the Borrower for tax or other lawful strategic planning purposes. 
 (4) The Borrower will not
declare or pay any dividends on or make any distribution with respect to any class of its equity, or purchase, redeem, retire or otherwise acquire any of its equity, other than pursuant to (a) Borrower’s Charter, (b) Borrower’s
Shareholders Agreement dated as of January 20, 2006, as amended from time to time, (c) one or more restricted stock awards from the Borrower, (d) Borrower’s 2006 Stock Option Plan, as amended from time to time, and (e) such
other commitments that Borrower has agreed to in writing prior to the date of this Letter Agreement and which have been disclosed to Lender. 
 (5) The Borrower will not make or have outstanding any loans or advances to or otherwise extend credit to any person, firm, corporation or other entity, except (a) in the ordinary course of business,
and (b) loans made to one or more of Borrower’s employees or employees of a subsidiary of the Borrower.Security Agreement between EPAM Systems, Inc. and PNC Bank

 Exhibit 10.2 

 

			
	 Security Agreement
	  	

 THIS SECURITY AGREEMENT (this “Agreement”), dated
as of the 22nd day of November, 2006, is made by EPAM SYSTEMS, INC. (the “Grantor”), with an address at 989 Lenox Drive, Suite 305, Lawrenceville, New Jersey 08648, in favor of PNC BANK, NATIONAL ASSOCIATION (the
“Bank”), with an address at Two Tower Center Boulevard, East Brunswick, New Jersey 08816. 

Pursuant to that certain Letter Agreement between Grantor, as borrower, and the Bank, as lender, dated as of the date
hereof (the “Letter Agreement”), the Bank has agreed to extend to Borrower a line of credit in the principal amount of up to $7,000,000.00 (the “Loan”). 

Under the terms hereof, the Bank desires to obtain and the Grantor desires to grant the Bank security for all of the
Obligations (as hereinafter defined). 
 NOW, THEREFORE, the Grantor and the Bank, intending to be
legally bound, hereby agree as follows: 
 1. Definitions. 

(a) “Collateral” shall mean all of Borrower’s United States accounts receivables pursuant to
Section 5 of the Letter Agreement, the German Receivables (as defined in the Letter Agreement) and all proceeds thereunder. 
 (b) “Obligations” shall include all loans, advances, debts, liabilities, obligations, covenants and duties owing by the Grantor to the Bank or to any other direct or indirect subsidiary
of The PNC Financial Services Group, Inc., of any kind or nature, present or future (including any interest accruing thereon after maturity, or after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or
like proceeding relating to the Grantor, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding), whether direct or indirect (including those acquired by assignment or participation), absolute or contingent,
joint or several, due or to become due, now existing or hereafter arising, whether or not (i) evidenced by any note, guaranty or other instrument, (ii) arising under any agreement, instrument or document, (iii) for the payment of
money, (iv) arising by reason of an extension of credit, opening of a letter of credit, loan, equipment lease or guarantee, (v) under any interest or currency swap, future, option or other interest rate protection or similar agreement,
(vi) under or by reason of any foreign currency transaction, forward, option or other similar transaction providing for the purchase of one currency in exchange for the sale of another currency, or in any other manner, (vii) arising out of
overdrafts on deposit or other accounts or out of electronic funds transfers (whether by wire transfer or through automated clearing houses or otherwise) or out of the return unpaid of, or other failure of the Bank to receive final payment for, any
check, item, instrument, payment order or other deposit or credit to a deposit or other account, or out of the Bank’s non-receipt of or inability to collect funds or otherwise not being made whole in connection with depository or other similar
arrangements; and any amendments, extensions, renewals and increases of or to any of the foregoing, and all reasonable costs and expenses of the Bank incurred in the documentation, negotiation, modification, enforcement, collection and otherwise in
connection with any of the foregoing, including reasonable attorneys’ fees and expenses. 
 (c)
“UCC” means the Uniform Commercial Code, as adopted and enacted and as in effect from time to time in the State whose law governs pursuant to the Section of this Agreement entitled “Governing Law and Jurisdiction.” Terms
used herein which are defined in the UCC and not otherwise defined herein shall have the respective meanings ascribed to such terms in the UCC. To the extent the definition of any category or type of collateral is modified by any amendment,
modification or revision to the UCC, such modified definition will apply automatically as of the date of such amendment, modification or revision. 
 2. Grant of Security Interest. To secure the Obligations, the Grantor, as debtor, hereby assigns and grants to the Bank, as secured party, a continuing lien on and security interest in the
Collateral. 

 3. Change in Name or Locations. The Grantor hereby agrees that if the location
of the Collateral changes from the locations listed on Exhibit “A” hereto and made part hereof, or if the Grantor changes its name, its type of organization, its state of organization (if Grantor is a registered organization), its
principal residence (if Grantor is an individual), its chief executive office (if Grantor is a general partnership or non-registered organization) or establishes a name in which it may do business that is not listed as a tradename on Exhibit
“A” hereto, the Grantor will immediately notify the Bank in writing of the additions or changes. 
 4.
Representations and Warranties. The Grantor represents, warrants and covenants to the Bank that: (a) all information, including its type of organization, jurisdiction of organization, chief executive office, and (for individuals
only) principal residence are as set forth on Exhibit “A” hereto and are true and correct on the date hereof; (b) the Grantor has good, marketable and indefeasible title to the Collateral, has not made any prior sale, pledge,
encumbrance, assignment or other disposition of any of the Collateral, and the Collateral is free from all encumbrances and rights of setoff of any kind except the lien in favor of the Bank created by this Agreement; (c) except as herein
provided and in the Letter Agreement, the Grantor will not hereafter without the Bank’s prior written consent sell, pledge, encumber, assign or otherwise dispose of any of the Collateral or permit any right of setoff, lien or security interest
to exist thereon except to the Bank; (d) the Grantor will defend the Collateral against all claims and demands of all persons at any time claiming the same or any interest therein; (e) each account and general intangible, if included in
the definition of Collateral, is genuine and enforceable in accordance with its terms and the Grantor will defend the same against all claims, demands, setoffs and counterclaims at any time asserted; and (f) at the time any account or general
intangible becomes subject to this Agreement, such account or general intangible will be a good and valid account representing bona fide services by the Grantor and such services will have been performed for the respective account debtors, and no
such account or general intangible will be subject to any claim for credit, allowance or adjustment by any account debtor or any setoff, defense or counterclaim. 
 5. Grantor’s Covenants. The Grantor covenants that it shall: 
 (a) from time to time and at all reasonable times allow the Bank, by or through any of its officers, agents, attorneys, or accountants, to examine or inspect the Collateral, and obtain valuations and
audits of the Collateral, at the Grantor’s expense, wherever located, provided, that such examination or inspection does not materially interfere with Grantor’s business. The Grantor shall do, obtain, make, execute and deliver all such
additional and further acts, things, deeds, assurances and instruments as the Bank may require to vest in and assure to the Bank its rights hereunder and in or to the Collateral, and the proceeds thereof. Upon an Event of Default, the Grantor agrees
that the Bank has the right to notify (on invoices or otherwise) account debtors and other obligors or payors on any Collateral of its security interest grant to the Bank, and that all payments thereon should be made directly to the Bank, and that
the Bank has full power and authority to collect, compromise, endorse, sell or otherwise deal with the Collateral in its own name or that of the Grantor at any time upon an Event of Default; and 

(b) only use or permit the Collateral to be used in accordance with all applicable federal, state, county and municipal
laws and regulations. 
 6. Negative Pledge; No Transfer. Except as otherwise permitted by this Agreement and the
Letter Agreement, (a) the Grantor will not sell or offer to sell or otherwise transfer or grant or allow the imposition of a lien or security interest upon the Collateral (except for sales of inventory and collections of accounts in the
Grantor’s ordinary course of business), (b) will not allow any third party to gain control of all or any part of the Collateral, and (c) will not use any portion thereof in any manner inconsistent with this Agreement or with the terms
and conditions of any policy of insurance thereon. 
 7. Covenants for Accounts. If accounts are included in the
definition of Collateral: 
 (a) The Grantor will, on the Bank’s demand, make notations on its books and
records showing the Bank’s security interest and make available to the Bank shipping and delivery receipts evidencing the shipment of the goods that gave rise to an account, completion certificates or other proof of the satisfactory performance
of services that gave rise to an account, a copy of the invoice for each account and copies of any written contract or order from which an account arose. The Grantor shall promptly notify the Bank if an account becomes evidenced or secured by an
instrument or chattel paper and upon the Bank’s request, will promptly deliver any such instrument or chattel paper to the Bank, including any letter of credit delivered to the Grantor to support a shipment of inventory by the Grantor.

  
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 (b) The Grantor will promptly advise the Bank whenever an account debtor
refuses to retain or returns any goods from the sale of which an account arose and will comply with any instructions that the Bank may give regarding the sale or other disposition of such returns. From time to time with such frequency as the Bank
may request, the Grantor will report to the Bank all credits given to account debtors on all accounts. 
 (c)
The Grantor will immediately notify the Bank if any account arises out of contracts with the United States or any department, agency or instrumentality thereof, and will execute any instruments and take any steps required by the Bank so that all
monies due and to become due under such contract shall be assigned to the Bank and notice of the assignment given to and acknowledged by the appropriate government agency or authority under the Federal Assignment of Claims Act. 

(d) At any time after the occurrence of an Event of Default, and upon notice to the Grantor, the Bank may direct any
persons who are indebted to the Grantor on any Collateral consisting of accounts or general intangibles to make payment directly to the Bank of the amounts due. The Bank is authorized to collect, compromise, endorse and sell any such Collateral in
its own name or in the Grantor’s name and to give receipts to such account debtors for any such payments and the account debtors will be protected in making such payments to the Bank. In such event and upon the Bank’s written request, the
Grantor will establish with the Bank and maintain a lockbox account (“Lockbox”) with the Bank and a depository account(s) (“Cash Collateral Account”) with the Bank subject to the provisions of this subparagraph and
such other related agreements as the Bank may require, and the Grantor shall notify its account debtors to remit payments directly to the Lockbox. Thereafter, funds collected in the Lockbox shall be transferred to the Cash Collateral Account, and
funds in the Cash Collateral Account shall be applied by the Bank, daily, to reduce the outstanding Obligations. 
 8.
Further Assurances. By its signature hereon, the Grantor hereby irrevocably authorizes the Bank to execute (on behalf of the Grantor) and file against the Grantor one or more financing, continuation or amendment statements pursuant to the
UCC in form satisfactory to the Bank, and the Grantor will pay the reasonable cost of preparing and filing the same in all jurisdictions in which such filing is deemed by the Bank to be necessary or desirable in order to perfect, preserve and
protect its security interests. If required by the Bank, the Grantor will execute all documentation necessary for the Bank to obtain and maintain perfection of its security interests in the Collateral. 

9. Events of Default. Subject to any provisions in the accompanying Loan Documents for the giving of notice and the right
to cure, the Grantor shall, at the Bank’s option, be in default under this Agreement upon the happening of any of the following events or conditions it being agreed that in the absence of any requirement for notice and without there being a
period within which to cure, each said event shall not mature and be deemed an “Event of Default” if cured to the reasonable satisfaction of the Bank within thirty (30) days of the Bank’s provision of notice to Borrower thereof
(each, an “Event of Default”): (a) any Event of Default (as defined in any of the Loan Documents); (b) any default under any of the Obligations that does not have a defined set of “Events of Default” and the
lapse of any notice or cure period provided in such Obligations with respect to such default; (c) demand by the Bank under any of the Obligations that have a demand feature; (d) the failure by the Grantor to perform any of its obligations
under this Agreement; (e) falsity, inaccuracy or material breach by the Grantor of any written warranty, representation or statement made or furnished to the Bank by or on behalf of the Grantor; (f) an uninsured material loss, theft,
damage, or destruction to any of the Collateral, or the entry of any judgment against the Grantor or any lien against or the making of any levy, seizure or attachment of or on the Collateral; (g) the failure of the Bank to have a perfected
first priority security interest in the Collateral (in an amount of up to $8.235 million); (h) any indication or evidence received by the Bank that the Grantor may have directly or indirectly been engaged in any type of activity which, in the
Bank’s reasonable, good faith discretion, will likely result in the forfeiture of any Collateral of the Grantor to any governmental entity, federal, state or local; or (i) if the Bank otherwise in good faith reasonably deems itself
insecure. 
 10. Remedies. Upon the occurrence of any such Event of Default and at any time thereafter, the Bank
may declare all Obligations secured hereby immediately due and payable and shall have, in addition to any remedies provided herein or by any applicable law or in equity, all the remedies of a secured party under the UCC. The Bank’s remedies
include, but are not limited to, the right to (a) peaceably by its own means or with judicial 

  
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assistance enter the Grantor’s premises and take possession of books and records pertaining to the Collateral without prior notice to the Grantor or the opportunity for a hearing, and
(b) require the Grantor to assemble books and records pertaining to the Collateral and make it available to the Bank at a place designated by the Bank, and, unless the Borrower then maintains a lockbox with the Bank into which payments due on
the Bank’s Collateral are deposited at the time the Event of Default takes place [in which case the immediately following right shall not be applicable], may notify the United States Postal Service to send the Grantor’s mail to the Bank.
If the Bank opts to receive the Borrower’s mail, the Bank undertakes to inspect the same and then re-deliver mail not constituting payments in connection with the Collateral to the Borrower’s premises within one (1) business day of
the Bank’s receipt of such mail. Unless the Collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market, the Bank will give the Grantor reasonable notice of the time and place of
any public sale thereof or of the time after which any private sale or any other intended disposition thereof is to be made. The requirements of commercially reasonable notice shall be met if such notice is sent to the Grantor at least ten
(10) days before the time of the intended sale or disposition. Expenses of retaking, holding, preparing for disposition, disposing or the like shall include the Bank’s reasonable attorneys’ fees and legal expenses, incurred or
expended by the Bank to enforce any payment due it under this Agreement either as against the Grantor, or in the prosecution or defense of any action, or concerning any matter growing out of or connection with the subject matter of this Agreement
and the Collateral pledged hereunder. The Grantor waives all relief from all appraisement or exemption laws now in force or hereafter enacted. 
 11. Power of Attorney. The Grantor does hereby make, constitute and appoint any officer or agent of the Bank as the Grantor’s true and lawful attorney-in-fact, with power to, upon an
Event of Default, (a) endorse the name of the Grantor or any of the Grantor’s officers or agents upon any notes, checks, drafts, money orders, or other instruments of payment or Collateral that may come into the Bank’s possession in
full or part payment of any Obligations; (b) sue for, compromise, settle and release all claims and disputes with respect to, the Collateral; and (c) sign, for the Grantor, such documentation required by the UCC, or supplemental
intellectual property security agreements; granting to the Grantor’s said attorney full power to do any and all things necessary to be done in and about the premises as fully and effectually as the Grantor might or could do. The Grantor hereby
ratifies all that said attorney shall lawfully do or cause to be done by virtue hereof. This power of attorney is coupled with an interest, and is irrevocable. 
 12. Payment of Expenses. At its option, the Bank may discharge taxes, liens, security interests or such other encumbrances as may attach to the Collateral, may pay for required insurance on
the Collateral and may pay for the maintenance, appraisal or reappraisal, and preservation of the Collateral, as determined by the Bank to be necessary. The Grantor will reimburse the Bank on demand for any payment so made or any expense incurred by
the Bank pursuant to the foregoing authorization, and the Collateral also will secure any advances or payments so made or expenses so incurred by the Bank. 
 13. Notices. All notices, demands, requests, consents, approvals and other communications required or permitted hereunder must be in writing and will be effective upon receipt. Notices may
be given in any manner to which the parties may separately agree, including electronic mail. Without limiting the foregoing, first-class mail, facsimile transmission and commercial courier service are hereby agreed to as acceptable methods for
giving Notices. Regardless of the manner in which provided, Notices may be sent to a party’s address as set forth above or to such other address as any party may give to the other for such purpose in accordance with this section. 

14. Preservation of Rights. No delay or omission on the Bank’s part to exercise any right or power arising
hereunder will impair any such right or power or be considered a waiver of any such right or power, nor will the Bank’s action or inaction impair any such right or power. The Bank’s rights and remedies hereunder are cumulative and not
exclusive of any other rights or remedies which the Bank may have under other agreements, at law or in equity. 
 15.
Illegality. If any provision contained in this Agreement should be invalid, illegal or unenforceable in any respect, it shall not affect or impair the validity, legality and enforceability of the remaining provisions of this Agreement.

 16. Changes in Writing. No modification, amendment or waiver of, or consent to any departure by the Grantor
from, any provision of this Agreement will be effective unless made in a writing signed by the Bank, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.

  
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No notice to or demand on the Grantor will entitle the Grantor to any other or further notice or demand in the same, similar or other circumstance. 

17. Entire Agreement. This Agreement (including the documents and instruments referred to herein) constitutes the entire
agreement and supersedes all other prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof. 
 18. Counterparts. This Agreement may be signed in any number of counterpart copies and by the parties hereto on separate counterparts, but all such copies shall constitute one and the same
instrument. Delivery of an executed counterpart of signature page to this Agreement by facsimile transmission shall be effective as delivery of a manually executed counterpart. Any party so executing this Agreement by facsimile transmission shall
promptly deliver a manually executed counterpart, provided that any failure to do so shall not affect the validity of the counterpart executed by facsimile transmission. 
 19. Successors and Assigns. This Agreement will be binding upon and inure to the benefit of the Grantor and the Bank and their respective heirs, executors, administrators, successors and
assigns; provided, however, that the Grantor may not assign this Agreement in whole or in part without the Bank’s prior written consent and the Bank at any time may assign this Agreement in whole or in part. 

20. Interpretation. In this Agreement, unless the Bank and the Grantor otherwise agree in writing, the singular includes
the plural and the plural the singular; words importing any gender include the other genders; references to statutes are to be construed as including all statutory provisions consolidating, amending or replacing the statute referred to; the word
“or” shall be deemed to include “and/or”, the words “including”, “includes” and “include” shall be deemed to be followed by the words “without limitation”; references to articles, sections
(or subdivisions of sections) or exhibits are to those of this Agreement; and references to agreements and other contractual instruments shall be deemed to include all subsequent amendments and other modifications to such instruments, but only to
the extent such amendments and other modifications are not prohibited by the terms of this Agreement. Section headings in this Agreement are included for convenience of reference only and shall not constitute a part of this Agreement for any other
purpose. Unless otherwise specified in this Agreement, all accounting terms shall be interpreted and all accounting determinations shall be made in accordance with GAAP. 
 21. Indemnity. The Grantor agrees to indemnify each of the Bank, each legal entity, if any, who controls the Bank and each of their respective directors, officers and employees (the
“Indemnified Parties”) and to hold each Indemnified Party harmless from and against any and all claims, damages, losses, liabilities and expenses (including all fees and charges of internal or external counsel with whom any
Indemnified Party may consult and all expenses of litigation and preparation therefor) which any Indemnified Party may incur or which may be asserted against any Indemnified Party by any person, entity or governmental authority (including any person
or entity claiming derivatively on behalf of the Grantor), in connection with or arising out of or relating to the matters referred to in this Agreement or the Obligations, whether (a) arising from or incurred in connection with any breach of a
representation, warranty or covenant by the Grantor, or (b) arising out of or resulting from any suit, action, claim, proceeding or governmental investigation, pending or threatened, whether based on statute, regulation or order, or tort, or
contract or otherwise, before any court or governmental authority; provided, however, that the foregoing indemnity agreement shall not apply to any claims, damages, losses, liabilities and expenses solely attributable to an Indemnified
Party’s gross negligence or willful misconduct. The indemnity agreement contained in this Section shall survive the termination of this Agreement, payment of the Obligations and assignment of any rights hereunder. The Grantor may participate at
its expense in the defense of any such claim. 
 22. Governing Law and Jurisdiction. This Agreement has been
delivered to and accepted by the Bank and will be deemed to be made in the State where the Bank’s office indicated above is located. THIS AGREEMENT WILL BE
INTERPRETED AND THE RIGHTS AND LIABILITIES OF THE PARTIES HERETO DETERMINED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW JERSEY, EXCEPT
TO THE EXTENT AS OTHERWISE PROVIDED UNDER THE CHOICE OF LAW
PROVISIONS CONTAINED IN ARTICLE 9 OF THE UCC (EXCLUDING ITS CONFLICT OF
LAWS RULES). The Grantor hereby irrevocably consents to the exclusive jurisdiction of any state or federal court in the county or judicial district where the Bank’s office indicated above is located; provided
that nothing contained in this Agreement will prevent the Bank from bringing any action, enforcing any award or judgment or exercising any rights against the Grantor individually, against any security or against any property of the Grantor within
any other county, state or other foreign or domestic jurisdiction. 

  
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The Bank and the Grantor agree that the venue provided above is the most convenient forum for both the Bank and the Grantor. The Grantor waives any objection to venue and any objection based on a
more convenient forum in any action instituted under this Agreement. 
 23. WAIVER OF JURY TRIAL. EACH OF THE
GRANTOR AND THE BANK IRREVOCABLY WAIVES ANY AND ALL RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR CLAIM OF ANY NATURE RELATING TO THIS AGREEMENT, ANY DOCUMENTS EXECUTED IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED IN ANY OF SUCH DOCUMENTS. THE GRANTOR AND THE BANK ACKNOWLEDGE THAT THE FOREGOING WAIVER IS KNOWING AND VOLUNTARY. 
 24. Capitalized Terms. Capitalized terms not defined herein shall have the meanings ascribed to them by the Letter Agreement or the other documents evidencing the Loan (the “Loan
Documents”). 
 [signatures contained on the following page] 

  
 - 6 -

 The Grantor acknowledges that it has read and understood all the provisions of this
Agreement, including the waiver of jury trial, and has been advised by counsel as necessary or appropriate. 

WITNESS the due execution hereof as a document under seal, as of the date first written above. 

 

									
	 WITNESS / ATTEST:
	 		 	 EPAM Systems, Inc.

				
	 /s/ Anthony J. Conte
	 		 	 By:
	 	 /s/ Ilya Cantor

		 		 		 		 	(SEAL)
	 Print Name: 
	 	 Anthony J. Conte
	 		 	 Print Name: 
	 	 Ilya Cantor

					
	 Title:
	 	 	 		 	 Title:
	 	 CFO

	 (Include title only if an officer of entity signing to the right)
	 		 		 	

  

									
		 		 	 PNC BANK, NATIONAL ASSOCIATION

				
		 		 	 By:
	 	 /s/ Virginia G. Alling

		 		 		 		 	(SEAL)
		 		 		 		 	Virginia G. Alling
					
		 		 		 		 	Vice President

  
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 EXHIBIT “A” 

TO SECURITY AGREEMENT 
  

	 1.
	 Grantor’s form of organization (i.e., corporation, partnership, limited liability company): 

Corporation 
  

	 2.
	 Grantor’s State of organization, if a registered organization (i.e., corporation, limited partnership or limited liability company):

 Delaware 
  

	 3.
	 Grantor’s principal residence, if a natural person or general partnership: 

N/A 
  

	 4.
	 Address of Grantor’s chief executive office, including the County: 

989 Lennox Drive, Suite 305, Lawrenceville, New Jersey 08648, Mercer County 

 

	 5.
	 Grantor’s EIN, if not a natural person: 

22-3536104 
  

	 6.
	 Grantor’s SSN, if a natural person: 

 N/A 
  

	 7.
	 Grantor’s organizational ID# (if any exists): 

N/A 
  

	 8.
	 Address for books and records, if different: 

N/A 
  

	 9.
	 Addresses of other Collateral locations, including Counties, for the past five (5) years: 

 

	 10.
	 Name and address of landlord or owner if location is not owned by the Grantor: 

Brandywine Realty Trust 
  

	 11.
	 Other names or tradenames now or formerly used by the Grantor: 

N/A 
  

	 12.
	 List of all existing Commercial Tort Claims (by case title with court and brief description of claim): 

N/A 

  
 - 8 -

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