Notice to attend Orc Software AB's (publ) Annual General Meeting[1]


Notice to attend Orc Software AB's (publ) Annual General Meeting[1]

The shareholders of Orc Software AB (publ), reg. no. 556313-4583, are
hereby invited to attend the Annual General Meeting to be held on
Tuesday 3 May 2011 at 4 p.m. (CEST) at the offices of Orc Software, at
Kungsgatan 36, 5th floor, Stockholm, Sweden. Registration will commence
at 3.30 p.m. (CEST).

Registration
Shareholders who wish to participate at the Annual General Meeting must

  · be registered in the shareholders' register maintained by Euroclear
Sweden AB (“Euroclear”) on Wednesday 27 April 2011, and
  · notify the Company at:
- Orc Software AB (publ), Årsstämman, Box 7832, 103 98 Stockholm,
Sweden,
- or by telephone at +46 8 506 478 10,
- or on the Company's web page,
www.orcsoftware.com (http://www.orcsoftware.com),

no later than on Wednesday 27 April 2011 at 4 p.m. (CEST). The
application shall include the shareholder's name, personal or corporate
identity number, number of shares held, address, telephone number and
information regarding assistants and, where applicable, representatives,
wishing to attend the Annual General Meeting.

Any personal record data from powers of attorney and the register of
shareholders maintained by Euroclear will be used for necessary
registration and preparation of the voting list for the Annual General
Meeting.

Authorised representatives etc.
A shareholder who will be represented by a proxy at the Annual General
Meeting shall issue a dated power of attorney for such proxy. A power of
attorney issued by a legal entity shall be accompanied by a certified
copy of a certificate of registration or similar document (“Registration
Certificate”) for such legal entity. The Registration Certificate and
the power of attorney cannot be older than one year, however not when
the power of attorney according to its wording is valid for a longer
period, maximum five years. The proxy form is available on Orc
Softwares's web page:
www.orcsoftware.com (http://www.orcsoftware.com/).   

Original powers of attorney, Registration Certificates and other
documents of authorisation should be received by the Company at the
address mentioned above not later than on Wednesday 27 April 2011.

Nominee-registered shares
Shareholders whose shares have been registered in the name of a nominee
must, in order to be entitled to attend the Annual General Meeting,
temporarily register their shares with Euroclear in their own name. A
shareholder who wishes to be recorded in the share register in his/her
own name, must notify his/her nominee thereof in due time before
Wednesday 27 April 2011, at which day such registration shall be
effected.

Number of shares and votes
Orc Software has at the time for this notice 23,505,275 issued shares.
Each share represents one (1) vote. The Company holds no own shares.

Shareholders' right to request information
The shareholders present at the Annual General Meeting have a right to
request information regarding the matters on the agenda or the Company's
financial situation in accordance with Chapter 7 Section 32 of the
Swedish Companies Act (2005:551).

Proposed agenda
1. Opening of the meeting.
2. Election of Chairman of the meeting.
3. Preparation and approval of the voting list.
4. Approval of the agenda.
5. Election of one or two persons to approve the minutes.
6. Determination of whether the meeting has been duly convened.
7. Presentation of the annual report and the auditor's report and the
consolidated financial statements and the auditor's report for the
group, as well as a description of the work of the Board of Directors,
the Remuneration Committee and the Audit Committee.
8. Resolution regarding:
(a) adoption of the profit and loss account and the balance sheet and
the consolidated profit and loss account and consolidated balance sheet;
(b) discharge from liability of the Board of Directors and the Managing
Director; and
(c) allocation of the Company's profit in accordance with the adopted
balance sheet.
9. Determination of the number of members of the Board of Directors and
Deputy Directors, if applicable, and the number of auditors and deputy
auditors, if applicable, to be elected by the Annual General Meeting.
10. Determination of the remuneration to the Board of Directors and the
auditors.
11. Election of the Board of Directors.
12. Election of auditor.
13. Resolution regarding principles for appointment of the Nomination
Committee.
14. Resolution regarding principles for remuneration of Group
Management.
15. Resolution regarding authorisation for the Board of Directors to
acquire and transfer the Company's own shares.
16. Resolution regarding authorisation for the Board of Directors to
issue new shares.
17. Amendment of the Articles of Association.
18. Other questions.
19. Closing of the meeting.

Proposed resolutions:

Item 2, Chairman of the meeting
The Nomination Committee[2] proposes that Manfred Löfvenhaft is
appointed Chairman of the Annual General Meeting.

Item 8 (c), Proposal regarding distribution of dividends
The Board of Directors has proposed the Annual General Meeting to decide
on a payment of dividends in the amount of SEK 7 per share and to set
the record date for purposes of the payment of dividends on 6 May 2011.
Should the Annual General Meeting adopt a resolution in accordance with
the proposal, it is estimated that dividends will be distributed by
Euroclear on 11 May 2011.

Item 9, Number of Board Members and auditors
The Nomination Committee proposes that the Board of Directors consists
of six ordinary Board Members with no Deputy Directors and one auditor
with no deputy auditor.

Item 10, Determination of the remuneration to the Board of Directors and
auditors
The Nomination Committee proposes that the Chairman of the Board of
Directors shall receive a remuneration amounting to SEK 450,000 (SEK
450,000) and that each other member of the Board of Directors receives a
remuneration amounting to SEK 205,000 (SEK 190,000). Total remuneration
to the Board of Directors is thereby proposed to amount to SEK 1,475,000
(SEK 1,400,000).

In addition, the Nomination Committee proposes that the Chairman shall
be authorised to allocate SEK 150,000 (SEK 150,000) for committee work
if deemed appropriate. In the event that the Chairman participates in
committee work, the Chairman shall be entitled to the same remuneration
as other members of such committee.

Provided that it is cost neutral for Orc Software and after the written
agreement between Orc Software and a (Swedish) limited company wholly
owned by one member of the Board of Directors, Orc Software may allow
that the remuneration to the member of the Board of Directors is
invoiced by the member of the Board of Directors' wholly owned limited
company. In that case, the invoiced fee shall be increased by an amount
equal to statutory social insurance contributions and statutory value
added tax.

Fees to the auditors to be paid upon approval of their invoice.

It is noted that the Nomination Committee recommends that the members of
the Board of Directors shall own shares in the Company.

Item 11, Election of Board Members

The Nomination Committee proposes re-election of Patrik Enblad, Lars
Granlöf, Staffan Persson, Eva Redhe Ridderstad and Carl Rosvall as
members of the Board of Directors.

In addition the Nomination Committee proposes that Cecilia Lager is
elected as new member of the Board of Directors.

The Nomination Committee proposes that Patrik Enblad is elected Chairman
of the Board of Directors.

Item 12, Election of auditor
The Nomination Committee proposes re-election of Ernst & Young AB as
auditor for one year. Ernst & Young has notified the Nomination
Committee that the auditor Ola Wahlquist is intended to be appointed
auditor in charge.

Item 13, Resolution regarding principles for appointment of the
Nomination Committee
The four largest shareholders in accordance with Euroclear's registers
of registered shareholders on the last banking day of August (per group
of owners), who wish to participate, shall appoint one representative
each to the Nomination Committee no later than six months prior to the
Annual General Meeting. The Chairman of the Board of Directors shall be
co-opted to the Nomination Committee and act as convener of the
Nomination Committee. In the event that one or more shareholders decline
their right hereof, the next largest shareholder shall be entitled to a
corresponding right.

The names of the members of the Nomination Committee shall be made
public as soon as the members have been appointed. The Chairman of the
Nomination Committee shall, unless the members decide otherwise, be the
member that represents the shareholder with the largest voting power.
The Chairman of the Board of Directors or any other member of the Board
of Directors is, however, not to be the Chairman of the Nomination
Committee. The Nomination Committee shall hold its mandate until a new
Nomination Committee is appointed. The members of the Nomination
Committee shall not be entitled to any remuneration.

A member shall resign from the Nomination Committee if the shareholder
who has appointed that member is no longer one of the four largest
shareholders, where after a new shareholder, in order of ownership in
the Company, shall be entitled to appoint a member. Unless there are
special reasons, however, no changes in the composition of the
Nomination Committee shall occur if only minor changes in voting power
have taken place or if the change occurs later than two months before
the Annual General Meeting. However, a member of the Nomination
Committee shall resign automatically if the shareholder who has
appointed such member has sold his entire holding in the Company.
Shareholders that have appointed a representative to the Nomination
Committee shall be entitled to dismiss such member and appoint a new
representative as a member of the Nomination Committee. Changes in the
composition of the Nomination Committee shall be publicly announced as
soon as such changes have occurred.

The Nomination Committee shall prepare a proposal to be presented for
approval at the Annual General Meeting (and Extra General Meeting if
applicable) regarding the appointment of Chairman of the Annual General
Meeting, members of the Board of Directors, Chairman of the Board of
Directors, remuneration to the Board of Directors, principles for the
appointment of the Nomination Committee and, if applicable, the
appointment of auditors as well as remuneration to the auditors. The
Company shall upon request from the Nomination Committee, provide
administrative resources in order to facilitate the Nomination
Committee's work. If required, the Company shall be responsible for
reasonable expenses related to external consultants that the Nomination
Committee deems necessary in order to fulfill its duties.

Item 14, Resolution regarding principles for remuneration and other
terms of employment for the Executive Management Team
The Board of Directors has prepared a proposal for principles for
remuneration and other terms of employment for the Executive Management
Team. Orc Software considers global remuneration practice as well as the
practice of the home country of each individual in the Executive
Management Team. The Board of Directors shall have the right to deviate
from the principles decided at the Annual General Meeting if there are
specific reasons for this in an individual case.

The proposal is mainly in conformity with the Board of Directors'
proposal for 2010 and that, as resolved by the Annual General Meeting,
has been applied during the year.

The basic principles for the remuneration structure for 2011 are:

  · To promote consensus between employees and shareholders regarding
their long-term view of the operations.
  · To ensure that employees receive remuneration that is competitive
and in line with the market to make it possible to retain and recruit
personnel.
  · To offer salary levels based on the results achieved, duties,
competence, experience and position.

Orc Software's remuneration and benefits for the Executive Management
Team comprise: base salary, annual variable salary, pension benefits
corresponding to a premium of 15-20 percent of the base salary, health
insurance, health care insurance, parking benefit and the possibility to
participate in Orc Software's long term incentive programme in
accordance with the terms and conditions of such programme. Severance
pay for members of the Executive Management Team amounts to a maximum of
12 monthly base salaries.

The annual variable salary may, inter alia, be based on the development
of the entire Company or the part of the Company where the employee is
employed. The development shall relate to the achievement of various
targets. Such targets shall be determined by the Board of Directors and
may, for example, be related to the financial results or the Company's
sales results. The annual variable salary may amount to a maximum of
10-60 percent of the base salary (except in respect of senior executives
with sales responsibility, for which no cap applies). In addition,
variable remuneration may be paid out as a part of the long term
incentive programs that have been resolved by General Meetings in Orc
Software AB.

A salary review is made every year for members of the Executive
Management Team. The review takes into account market salary trends,
employee performance, changes in areas of responsibility and the
development of the Company.

In addition, previously resolved remunerations are presented in a note
to the financial statements under “Salaries, other remunerations and
social costs”.

Item 15, Resolution regarding authorisation for the Board of Directors
to repurchase and transfer the Company's own shares
The Board of Directors proposes that the Annual General Meeting
authorises the Board of Directors to acquire the Company's own shares in
accordance with the following conditions:

 1. The repurchase of the Company's own shares shall take place on the
NASDAQ OMX Stockholm in accordance with the rules regarding purchase and
sale of the Company's own shares as set out in NASDAQ OMX Stockholm's
Rulebook for issuers.
 2. The repurchase of the Company's own shares may be made on one or
several occasions for the period up until the next Annual General
Meeting.
 3. The Company's own shares may be re-purchased up to an amount where
the Company's holding of its own shares does not at any time exceed 10
percent of the total number of shares in the Company.
 4. A repurchase of the Company's own shares on the NASDAQ OMX Stockholm
may only be made at a price per share that falls within the registered
price interval for the share at any given time.
 5. Payment for the shares shall be made in cash.

The Board of Directors proposes that the Annual General Meeting
authorises the Board of Directors to transfer the Company's own shares
in accordance with the following conditions:

 1. The transfer of the Company's own shares shall take place: (i) on
the NASDAQ OMX Stockholm in accordance with the rules regarding purchase
and sale of the Company's own shares as set out in NASDAQ OMX
Stockholm's Rulebook for issuers; or (ii) in conjunction with an
acquisition of a Company or business on market terms.
 2. The transfer of the Company's own shares may be made on one or
several occasions for the period up until the next Annual General
Meeting.
 3. Shares may be transferred to a maximum of what is authorised by the
Annual General Meeting for the Board of Directors to resolve on
repurchases of the Company's own in accordance with the above.
 4. A transfer of the Company's own shares on the NASDAQ OMX Stockholm
may only be made at a price per share that falls within the registered
price interval for the share at any given time.
 5. The authorisation comprises a right to resolve on divergences from
the shareholders' preferential rights and an authorisation for payment
to be made in other consideration than cash.

The purpose of the authorisations described above is to ensure that the
Company is continually able to adapt its capital requirements and
thereby increase shareholder value, and to ensure that the Company is
able to transfer shares as payment for or to finance any future
acquisitions.

In order to be valid, the proposal for resolution by the Board of
Directors in accordance with this item must be supported by shareholders
with at least two thirds of both the votes cast and shares represented
at the Annual General Meeting.

Item 16, Resolution regarding authorisation for the Board of Directors
to issue new shares
The Board of Directors proposes that the Annual General Meeting resolves
to authorise the Board of Directors, during the period until the next
Annual General Meeting, to issue new shares:

(i) where the shareholders shall enjoy preferential rights to subscribe
for the new shares; and

(ii) where the Company's shareholders shall not enjoy preferential
rights to subscribe for the new shares in connection with an acquisition
of a Company.

An issue of new shares may be made with or without payment in kind,
subject to a right of set-off or in accordance with other terms set out
in Chapter 13, Section 5, item 6, of the Swedish Companies Act.

The authorization may be utilized upon one or several occasions. The
Board of Directors' utilization of such authorisation may not imply that
the total increase in share capital exceeds 10 percent of the registered
share capital at the time of the authorization. The basis for the
assessment of the issue price shall be the market value at the time for
utilization.

The purpose of the authorisation described above is to increase the
Company's financial flexibility and to give the Board of Directors the
opportunity to finance acquisitions, whereupon newly issued shares may
be utilized as consideration for such acquisitions or where the new
shares are issued to institutional investors against cash consideration
in order to finance the acquisition in whole or in part.

In order to be valid, the proposal for resolution by the Board of
Directors in accordance with this item must be supported by shareholders
representing at least two thirds of both votes cast and shares
represented at the Annual General Meeting.

Item 17, Amendment of the Articles of Association
The Board of Directors proposes that the name of Orc Software AB is
changed to Orc Group AB, which means a change of § 1 in the Articles of
Association.

In order to be valid, the proposal for resolution by the Board of
Directors in accordance with this item must be supported by shareholders
representing at least two thirds of both votes cast and shares
represented at the Annual General Meeting.

The annual report, the auditor's report and complete proposals and other
documentation in accordance with the Companies Act will be available at
the Company's head office no later than on Tuesday 12 April 2011 and in
electronic format at the Company's web page,
www.orcsoftware.com (http://www.orcsoftware.com/). The documentation
will also be sent free of charge to the shareholder who so requests and
states its address.
 

The Board of Directors
Stockholm, March 2011
ORC SOFTWARE AB (publ)

 

[1] This document is an in-house translation of the Swedish original. In
case of discrepancies the Swedish version shall prevail.

[2] The Nomination Committee represents approx. 34 percent of the votes
in Orc Software and consists of Anders Rydin (SEB Investment Management
and SEB Asset Management S A), Kerstin Stenberg (Swedbank Robur fonder),
Staffan Persson (Zimbrine Holding BV), Frank Larsson (Handelsbanken
Fonder) and the Chairman of the Board of Directors (Markus Gerdien up
until 10 February 2011, thereafter Patrik Enblad). Anders Rydin has been
Chairman of the Nominating Committee. The criteria for election of and
convening the Nomination Committee can be found on the Company's web
page www.orcsoftware.com (http://www.orcsoftware.com/).

Attachments

03282317.pdf