Contractor Conditions

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1 Contractor Conditions The Client's Manual Created by: Andrew Tyutyunnyk Revision: 1.0 Last updated:

2 2015 CHI Software Page2of10 Page: 2 of 10 TABLE OF CONTENTS INTRODUCTION... 3 COMPANY STRUCTURE... 3 ENGAGEMENT MODELS... 4 TIME AND MATERIAL... 4 MONTHLY RESOURCE-BASED MODEL... 5 FIXED PRICE PROJECT... 6 DEDICATED TEAM... 6 PROCESS... 7 PAPERWORK... 8 CONTACTS... 8 APPENDIX A HARDWARE REQUIREMENTS... 9 APPENDIX B STANDARD SOFTWARE REQUIREMENTS... 10

3 2015 CHI Software Page3of10 Page: 3 of 10 INTRODUCTION CHI Software has been on the market since 2003, starting its career from.net, PHP and web design. Now we are an offshore development center that specializes in.net, Mobile, Python and Ruby on Rails solutions development. We have a proven track of successfully delivered products. CHI Software focuses on delivering B2C and B2B web and mobile solutions of various complexities, leveraging the latest in.net, PHP, Python, Cloud, Ruby on Rails, Java, Objective C, ios, Android and WP technology stacks. We are flexible to follow different business models and leverage optimal measures to ensure more profitability for the Client: offshore dedicated team, time and material, monthly resource-based model, fixed price project, ad-hoc technical consulting. We are located in Eastern European Timezone (UTC+2). For more information, please refer to our website COMPANY STRUCTURE The company is managed by the Chief Executive Officer/Owner. A product development process is managed and coordinated by the Head of Delivery. There are three kinds of development teams: Functional teams with on-demand resources that are assigned part-time or full-time to the projects, or become a part of a dedicated team, or act as part-time consultants, managed by the Department Manager. Project teams assigned to completion of specific project, managed by the Project Manager or Team Leader. Dedicated teams that are managed by the Client and coordinated by a Dedicated Team Manager.

4 2015 CHI Software Page4of10 Page: 4 of 10 CEO CTO Head of Delivery HR Department Sales & Marketing Financial Department Operations/ Infrastructure Department Managers Project Managers Dedicated Team Manager Functional Teams Project Teams/ Team Leader Dedicated Teams ENGAGEMENT MODELS We are flexible to follow different business models and leverage optimal measures to ensure more profitability for the Client. Time and Material The cost of services is based on an hourly rate of the hired engineers and actual time spent. The spent time is monitored on a daily basis using time tracking software, and through weekly timesheets and progress reports. From the Client s perspective, you are always assured of getting what you need and paying for only what is required. Time and Material Engagement Model ideally fits for the projects or tasks with a uncertain scope of work and time bounds. The advantage of this model is a high degree of flexibility to alter specifications, accommodate unplanned activities rapidly, and adjust project resources based upon your evolving requirements throughout the software development process. Example of a effective time and material model usage is a startup product, a product that should be launched on the market as soon as possible, or an upgrade of an existing product, where the scope of the whole project is not clear, and it is necessary to get the results quickly, update requirements to adapt them to changed product vision, change the development priorities, and ramp up or ramp down the team quickly. Hints for the time and material engagement model: Hold short daily status meetings with the team to review the results and quickly provide the feedback for the work done.

5 2015 CHI Software Page5of10 Page: 5 of 10 Actively use instant messengers and calls to be on the same page when the scope is constantly changed, or new details for requirements are added. Use time tracking tools to monitor and manage time and expenses. CHI Software provides a transparent development process by using Agile/Scrum methodologies and software development lifecycle tools, which allow our clients to see the progress of work on a daily basis, and get parts of working shippable software every 1-2 weeks. Monthly Resource-based Model This model is ideal for the development center based on CHI Software resources, where billing is done monthly based on the number and level of the resources utilized. With this model you can cut costs for the team, comparing to other models, and guarantee that a team with a specific skill set or domain knowledge will be attached to the project. An example of an effective Monthly Resource-Based Model usage is a pipeline of projects or a large project. The team takes over the culture of your company, so this model ideally fits when you need to extend your in-house team with offshore engineers. Hints for the Monthly Resource-Based Model: Treat the offshore team as your own team to motivate the people to be fully committed to your product. Start from hiring a leader to build a strong team and to seed the values of your company. Actively use calls, videoconferencing tools; the more communication you have, the more effectively the team works. Consider visits to offshore and invite team members to work onshore when developing the core architecture. This could be a silver bullet to set up open communication between onshore and offshore developers and be a one team. While you extend or set up an offshore team, all legal and organizational risks and costs are on the side of CHI Software, so you can focus on a pure development process.

6 2015 CHI Software Page6of10 Page: 6 of 10 Fixed Price Project A Fixed Price Business Model is suitable for projects with well-defined requirements and schedules and a project path. For fixed price projects, on the first phase of the project, CHI Software business analysts and architects work with a client to create a precise estimation and delivery schedule along with the mutually agreeable fixed price for the final deliverable. As an output of this first phase the client has welldocumented and detailed requirements, listed technical approaches and a basic architecture design, and a project plan. Hints for the Fixed Price Project Model: Always define clear requirements before starting the project to avoid misunderstanding and miscommunication in future. If the requirements are not detailed, the budget for development can be only guesstimated, which is risky for both sides. Split the project into short iterations estimated separately. Long milestones can be hardly estimated precisely, additionally, initial business or user requirements can be significantly changed during the long project execution. Using short iterations and getting the results quickly allow you to adjust the requirements and react quicker to the changes of the market. Involve Quality Assurance engineers in the team to ensure that the quality of the delivered features fits the requirements. The primary advantage of the Fixed Price Business Model consists in allowing the client to determine exactly the project budget in advance. As to clients looking for more flexibility in terms of altering requirements and managing changes based upon the dynamic needs of their organization, a Time and Material Model is a better choice. For this reason, any requirement changes or new feature requests occurring during the project implementation process will cause a re-negotiation of the delivery schedule and price. Dedicated Team With this model the Client works directly with the team or sets a development center, having the full control over the team. The Client chooses the team members, treating them as employees of own company, but cuts the costs, lowers the risks with the support

7 2015 CHI Software Page7of10 Page: 7 of 10 of CHI Software, and gains access to the rich Ukrainian market of software developers. When working with a dedicated team of CHI Software, the Clients has the following benefits: Direct control of the team with the methodological, operational, and retention support of CHI Software l; Rapidly scale-up operations with an access to a diversified pool of expert; Business continuity ensured by a timely methodology and HR audits, ongoing coordination of the team, and risk management by a professional Team Manager; Continuity of professional growth of employees in a knowledge-sharing framework; Fast response of management, and clear escalation paths. The transparent pricing model for a Dedicated Team contains: Employee salary; Fixed CHI Software fee; Taxes to be paid for each employee by a Ukrainian employer. All prices are stated in the contract. PROCESS We tailor the process using a smart mix of methodologies to create a zero-fat productive development process, and to produce high quality software by a specified deadline. We follow Agile principles to minimize risks and time spent for the development, and provide high quality of deliverables, unless another process is required by the Client. Below is the description of our standard development process: Estimation. We analyze the description of the solution to be implemented and provide a high-level estimation. Free quote can be ordered on the website or by contacting our Sales team. Planning. We provide a delivery plan and composition of the team that will work on the project. On this stage we agree on the business models that minimize the costs and risks of the Client. Iterative implementation and delivery. The team implements ready-to-use parts of the product during time-boxed iterations. Before an iteration, the work is planned according to business priorities, features are implemented, tested, and delivered to

8 2015 CHI Software Page8of10 Page: 8 of 10 the Client. The feedback from the Client is analyzed to enhance the development process and update the initial requirements. The results are delivered iteratively, so on each step the vision of the product and budget plan can be reviewed and corrected. PAPERWORK The legal aspects of the partnership with CHI Software: Non-disclosure agreement (NDA) guarantees that the confidential information not open by third parties. The contract states conditions on the scope of services, prices, and responsibilities between parties. Time reports list the tasks completed by the team and the hours spent by the team during the specific period when using Hourly based and Monthly based models. Usually, time reports are issued once a week or twice a month. Invoices are issued by CHI Software basing on the conditions agreed in the contract. When using a wire transfer for payment, CHI Software sends acts of acceptance documents for each invoice, which prove the transaction for Ukrainian banks and should be signed by the client. All property rights for the intellectual property objects created by CHI Software for the Client belong exclusively to the Client. CONTACTS For more information please contact Andrew Kudryashov CEO Andrew Tyutyunnyk Business Development Manager andrew.kudryashov@chisw.us andrey.tutunnik@chisw.us Skype: andrew_witt Skype: andrewtyutyunnyk Phone: Phone:

9 2015 CHI Software Page9of10 Page: 9 of 10 APPENDIX A HARDWARE REQUIREMENTS The employee workstation, provided by CHI Software, has the following basic hardware configuration: Position CPU RAM HDD Video adapter Monitor Other Multicore, AMD Athlon II 8 Gb Gb, 5400/7200 rpm Video adapter with two video-outs 21 or more DVD-RW Software List

10 2015 CHI Software Page10of10 Page: 10 of 10 APPENDIX B STANDARD SOFTWARE REQUIREMENTS The software installed to workstation for different employee positions is listed below. Description Position Software List Basic Software All Windows 7 x64 + Service Pack 1 + IIS; Microsoft Office 2010; Daemon Tools Lite. Google Chrome; Skype; K-Lite Codecs; QuickTime; Flash Player; Java Runtime Environment;.NET; Silverlight; Adobe Air; IfranView; FoxIt Reader (PDF); 7Zip; Notepad ++..NET Development.NET Developer All basic software listed above; MS Visual Studio (last version); MS SQL Server 2008 R2 Developer Edition + Service Pack 1; ReSharper (last stable version). Frontend Development Project Management Software Frontend Developer Team/Project Manager All basic software listed above; Adobe Photoshop; Adobe Dreamweaver; IEtester; Vitrite; IE, Safari, Opera, Chrome, Firefox; Plugins for Firefox: firebug, web developer, pixel perfect. All basic software listed above; Microsoft Project 2010; Microsoft Visio 2010.

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