The World Bank 1818 H Street N.W. (202) 477-1234 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS CONFORMED COPY December 23, 2011 Mr. Jonathan Hakim CEO Cignifi Inc. 245 First Street Suite 1800 Cambridge, MA 02142 617-250-7520 Re: Consultative Group to Assist the Poor Trust Fund (Grant No. TF011054) CGAP-GATES Technology Initiative Trust Fund Project Dear Mr. Hakim: In response to the request for financial assistance made on behalf of Cignifi Inc. (“Recipient�), I am pleased to inform you that the International Development Association (“Association�) and the International Bank for Reconstruction and Development (“IBRD�) (Collectively “World Bank�), acting as administrator of grant funds provided by CGAP Multi- donor Trust Fund (TF053676) esstablished for the Consultative Group to Assist the Poor (“CGAP�), proposes to extend to the Recipient, a grant in an amount not to exceed one hundred and twenty-five thousand United States Dollars (U.S.$125,000) (“Grant�) on the terms and conditions set forth or referred to in this letter agreement (“Agreement�), which includes the attached two Annexes, to assist in the financing of the project described in the Annex III (“Project�). This Grant is funded out of the abovementioned trust fund for which the World Bank receives periodic contributions from the Donors. In accordance with Section 3.02 of the Standard Conditions (as defined in the Annex to this Agreement), the World Bank’s payment obligations in connection with this Agreement are limited to the amount of funds made available to it by the Donors under the abovementioned trust fund, and the Recipient’s right to withdraw the Grant proceeds is subject to the availability of such funds. Accordingly, in the event that any Donor cancels or fails to pay any contributions under the trust fund to the World Bank for any reason, or that as a result of currency exchange variations the amount of funds available in the trust fund is insufficient for the purposes of the Grant, the Recipient shall bear the risk of such funding shortfall and the World Bank shall not have any liability whatsoever to the Recipient or to any third parties in respect of any expenditures or liabilities incurred by the Recipient or any third parties in connection with this Agreement which exceed the amount of funds made available to the World Bank by the Donor[s] for the purposes of the Grant. The Recipient represents, by confirming its agreement below, that it is authorized to enter into this Agreement and to carry out the Project in accordance with the terms and conditions set forth or referred to in this Agreement. Please confirm the Recipient’s agreement to the foregoing by having an authorized official of the Recipient sign and date the enclosed copy of this Agreement, and returning it to the World Bank. Upon receipt by the World Bank of this countersigned copy, this Agreement shall become effective as of the date of the countersignature, provided, however, that the offer of this Agreement shall be deemed withdrawn if the World Bank has not received the countersigned copy to this Agreement within 90 days after the date of signature of this Agreement by the World Bank, unless the World Bank shall have established a later date for such purpose. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND INTERNATIONAL DEVELOPMENT ASSOCIATION By /S/ Tilman Ehrbeck Tilman Ehrbeck Director, CGAP AGREED: Cignifi Inc. By /s/ Jonathan Hakim Authorized Representative Name: Jonathan Hakim Title: CEO Date: December 29, 2011 Enclosures: (1) Standard Conditions for Grants Made by the World Bank Out of Various Funds, dated July 31, 2010; (2) Project Objectives and Activities; And (3) Disbursement Letter dated of the same date as this Agreement, together with World Bank Disbursement Guidelines for Projects, dated May 1, 2006 and as revised in January 2011. Grant No. TF011054 ANNEX Article I Standard Conditions; Definitions 1.01. Standard Conditions. The Standard Conditions for Grants Made by the World Bank out of Various Funds dated July 31, 2010 (“Standard Conditions�), constitute an integral part of this Agreement. Definitions. Unless the context requires otherwise, the capitalized terms used in this Agreement have the meanings ascribed to them in the Standard Conditions or in this Agreement. Article II Project Execution 2.01. Project Objectives and Description. The objectives of the Project is to support the Recipient to analyze telecom data from multiple telecom companies and generate scores for improved credit decision making for the unbanked and underserved population in Brazil. The Project consists of the following parts: Provide assistance to the Recipient to (1) obtain a detailed legal assessment and policy review associated with the propose model of analyzing telecom data in Brazil; (2) identify and finalize partnerships with select banks and telecom companies as reflected in signed letters of intent; (3) develop and describe the parameters of a limited commercial trial. The following is a general timeline of the project: Month 1 Legal analysis Month 1-3 MOUs and/or initial letters of intent Month 3-5 Trial design and sign-off on trial design from partners (incl. analysis of data needs) Month 5 - 7 Data preparation for analysis Month 9 - 12 Build the Cignifi’s scoring models Month 12 Implement the Cignifi scoring model in a limited commercial test Month 18 Analysis and documentation of trial lending outcomes 2.02. Project Execution Generally. The Recipient declares its commitment to the objectives of the Project. To this end, the Recipient shall carry out the Project in accordance with the provisions of: (a) Article II of the Standard Conditions; (b) the “Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants�, dated October 15, 2006 and revised in January 2011 (“Anti-Corruption Guidelines�); (c) this Article II; and (d) the agreement dated the same date as this Agreement between the World Bank and the Project Implementing Entity, as such agreement may be amended from time to time (“Project Agreement�). 2.03. Institutional and Other Arrangements. The Recipient agrees to fully indemnify and hold harmless the World Bank, its officers, agents, and employees, from any losses, costs, damages, liability, fees and expenses incurred by the World Bank as a result of claims by third parties arising out of, or relating to Recipient’s negligent actions or willful misconduct in administrating the Grant funds. 2.04. Donor Visibility and Visit. (a) The Recipient shall take or cause to be taken all such measures as the World Bank may reasonably request to identify publicly the CGAP’s support for the Project. (b) For the purposes of Section 2.09 of the Standard Conditions, the Recipient shall, upon the World Bank’s request, enable or take all measures required on its part to enable the representatives of CGAP to visit any part of the Member Country’s territory for purposes related to the Project. 2.05. Project Monitoring, Reporting and Evaluation. (a) The Recipient shall monitor and evaluate the progress of the Project and prepare Project Reports in accordance with the provisions of Section 2.06 of the Standard Conditions and on the basis of the indicators agreed with the World Bank. Each Project Report shall cover the period of one calendar semester, and shall be furnished to the World Bank not later than one month after the end of the period covered by such report. (b) The Recipient shall prepare the Completion Report in accordance with the provisions of Section 2.06 of the Standard Conditions. The Completion Report shall be furnished to the World Bank not later than four months after the Closing Date. 2.06. Financial Management. (a) The Recipient shall ensure that a financial management system is maintained in accordance with the provisions of Section 2.07 of the Standard Conditions. (b) The Recipient shall ensure that interim unaudited financial reports for the Project are prepared and furnished to the World Bank as part of the Project Report not later than 45 days after the end of each calendar quarter, covering the quarter, in form and substance satisfactory to the World Bank. (c) The Recipient shall have its Financial Statements audited in accordance with the provisions of Section 2.07 (b) of the Standard Conditions. Each such audit of the Financial Statements shall cover the period of one fiscal year of the Recipient. The audited Financial Statements for each such period shall be furnished to the World Bank not later than six months after the end of such period. 2.07. Procurement (a) General. All goods and services required for the Project and to be financed out of the proceeds of the Grant shall be procured in accordance with the requirements set forth or referred to in: (i) Section I of the “Guidelines: Procurement of Goods, Works and Non-Consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers� dated January 2011 (“Procurement Guidelines�), in the case of goods; (ii) Sections I and IV of the “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers� dated January 2011 (“Consultant Guidelines�) in the case of consultants’ services; and (iii) the provisions of this Section, as the same shall be elaborated in the procurement plan prepared and updated from time to time by the Recipient for the Project in accordance with paragraph 1.18 of the Procurement Guidelines and paragraph 1.25 of the Consultant Guidelines (“Procurement Plan�). (b) Definitions. The capitalized terms used in the following paragraphs of this Section to describe particular procurement methods or methods of review by the World Bank of particular contracts, refer to the corresponding method described in Sections II and III of the Procurement Guidelines, or Sections II, III, IV and V of the Consultant Guidelines, as the case may be. (c) Particular Methods of Procurement of Goods: Accept as otherwise provided in the sub- paragraph; Goods shall be procured under contracts awarded on the basis of Shopping and Commercial Practices. (d) Particular Methods of Procurement of Consultants’ Services: The following methods may be used for the procurement of consultants’ services for those assignments which are specified in the Procurement Plan: (A) Quality and Cost Based Selection; (B) Single-source Selection; (C) Selection of Individual Consultants; and (D) Commercial Practices. (e) Review by the World Bank of Procurement Decisions: The Procurement Plan shall set forth those contracts which shall be subject to the World Bank’s Prior Review. All other contracts shall be subject to Post Review by the World Bank, unless otherwise stated in the Procurement Plan. (f) Procurement Audit: The Recipient shall ensure that the audit conducted pursuant to Section 2.06 (c) of this Agreement shall also include an audit of the procurement of goods and services financed out of the proceeds of the grant. Article III Withdrawal of Grant Proceeds 3.01. Eligible Expenditures. The Recipient may withdraw the proceeds of the Grant in accordance with the provisions of: (a) Article III of the Standard Conditions; (b) this Section; and (c) such additional instructions as the World Bank may specify by notice to the Recipient (including the “World Bank Disbursement Guidelines for Projects� dated May 2006, as revised from time to time by the World Bank and as made applicable to this Agreement pursuant to such instructions), to finance 100% of Eligible Expenditures inclusive of taxes, consisting of as set forth in the following table. The table specifies the categories of Eligible Expenditures that may be financed out of the proceeds of the Grant (“Category�), the allocations of the amounts of the Grant to each Category, and the percentage of expenditures to be financed for Eligible Expenditures in each Category. Amount of the Grant Percentage of Allocated Expenditures to be Category (expressed in U.S. $) Financed (inclusive of Taxes) 100% Consultants’ Services 56,250 100% Operating Costs 68,750 100% TOTAL AMOUNT 125,000 For the purpose of this paragraph, the term: “Operating Costs� means the incremental expenses incurred on account of Project implementation, including office furniture and supplies, communication costs, Designated Account banking charges, office maintenance costs, utilities, travel cost for Project staff and salaries of support contractual staff for the Project, but excluding salaries of officials of the Member Country’s civil service. 3.02. Withdrawal Conditions. Notwithstanding the provisions of Section 3.01 of this Agreement, no withdrawal shall be made for payments made prior to the date of the countersignature of this Agreement by the Recipient. 3.03. Withdrawal Period. The Closing Date referred to in Section 3.06 (c) of the Standard Conditions is December 31, 2012. Article IV Recipient’s Representative; Addresses 4.01. Recipient’s Representative. The Recipient’s Representative referred to in Section 7.02 of the Standard Conditions is Mr. Jonathan Hakim, CEO, Cignifi Inc. 4.02. Recipient’s Address. The Recipient’s Address referred to in Section 7.01 of the Standard Conditions is: Cignifi Inc. 245 First Street Suite 1800 Cambride, MA 02142 617-250-7520 5.03. World Bank’s Address. The World Bank’s Address referred to in Section 7.01 of the Standard Conditions is: International Bank for Reconstruction and Development and International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Tel: Fax: Email: 202-473-9594 202-522-3744 cgap@worldbank.org Grant No.TF011054 Attachment [1] Project Objectives and Activities Objectives The objectives of the Project is to support Cignifi Inc. (the Recipient) to analyze telecom data from multiple telecom companies and generate scores for improved credit decision making for the unbanked and underserved population in Brazil. Project Activities and Deliverables The main grant financed activities include: (1) obtain a detailed legal assessment and policy review associated with the propose model of analyzing telecom data in Brazil; (2) identify and finalize partnerships with select banks and telecom companies as reflected in signed letters of intent; (3) develop and describe the parameters of a limited commercial trial. The following is a general timeline of the project: Month 1 Legal analysis Month 1-3 MOUs and/or initial letters of intent Month 3-5 Trial design and sign-off on trial design from partners (incl. analysis of data needs) Month 5 - 7 Data preparation for analysis Month 9 - 12 Build the Cignifi’s scoring models Month 12 Implement the Cignifi scoring model in a limited commercial test Month 18 Analysis and documentation of trial lending outcomes Budget The budget for the Grant is as follows: Phase 1 Milestones: Legal opinion and policy review USD 28,125 Partnership and letters of intent with banks and MNOs USD 68,750 (Operational Costs) Design of the limited commercial trial with close collaboration USD 28,125 with banks and MNOs involved TOTAL PHASE 1 USD 125,000.00