Globant
Annual Report 2018

Plain-text annual report

Morningstar® Document Research℠ FORM 20-FGlobant S.A. - GLOBFiled: March 29, 2019 (period: December 31, 2018)Annual and transition report of foreign private issuers under sections 13 or 15(d)The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The userassumes all risks for any damages or losses arising from any use of this information, except to the extent such damages or losses cannot belimited or excluded by applicable law. Past financial performance is no guarantee of future results. UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549 FORM 20-F (Mark One)¨REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934ORxxANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR ¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934OR¨SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of event requiring this shell company report For the transition period from to . Commission file number: 001-36535 GLOBANT S.A.(Exact name of Registrant as specified in its charter)Not applicable(Translation of Registrant's name into English)Grand Duchy of Luxembourg(Jurisdiction of incorporation or organization) 37A Avenue J.F. KennedyL-1855, LuxembourgTel: + 352 20 30 15 96(Address of principal executive offices)Sol Mariel Noello37A Avenue J.F. KennedyL-1855, LuxembourgE-Mail: sol.noello@globant.comTel: + 352 20 30 15 96(Name, Telephone, E-Mail and/or Facsimile number and Address of Company Contact Person) Securities registered or to be registered pursuant to Section 12(b) of the Act. Title of each className of each exchange on which registeredCommon shares value $ 1.20 per shareNYSE Securities registered or to be registered pursuant to Section 12(g) of the Act. None Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act. None Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by theannual report: 36,103,814 common shares of which 138,152 are treasury shares held by us. Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.x Yes ¨ No If this report is an annual or transaction report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d)of the Securities Exchange Act of 1934. ¨ Yes x No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filingrequirements for the past 90 days. x Yes ¨ NoSource: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).x Yes ¨ No Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growthcompany. See the definitions of "large accelerated filer," "accelerated filer," and "emerging growth company" in Rule 12b-2 of the Exchange Act. Large accelerated filer xAccelerated filer ¨Non-accelerated filer ¨Emerging growth company ¨ If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant haselected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a)of the Exchange Act. ¨ † The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to itsAccounting Standards Codification after April 5, 2012. Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing: U.S. GAAP ¨ International Financial Reporting Standards as issued by the International Accounting Standards Board xOther ¨ If "Other" has been checked in response to the previous question indicate by check mark which financial statement item the registrant has elected tofollow. ¨ Item 17 ¨ Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ¨ Yes x No Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. TABLE OF CONTENTS CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS1CURRENCY PRESENTATION AND DEFINITIONS2PRESENTATION OF FINANCIAL INFORMATION2PRESENTATION OF INDUSTRY AND MARKET DATA2PART I3ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS3ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE3ITEM 3. KEY INFORMATION3 A. Selected Financial Data3B. Capitalization and Indebtedness8C. Reasons for the Offer and Use of Proceeds8D. Risk Factors9 ITEM 4. INFORMATION ON THE COMPANY43 A. History and Development of the Company43B. Business overview46C. Organizational Structure86D. Property, Plant and Equipment86 ITEM 4A. UNRESOLVED STAFF COMMENTS86ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS87 A. Operating Results87B. Liquidity and Capital Resources101C. Research and Development, Patents and Licenses, etc.118D. Trend Information118E. Off-Balance Sheet Arrangements119F. Tabular Disclosure of Contractual Obligations119G. Safe harbor119 ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES119 A. Directors and Senior Management119B. Compensation124C. Board Practices127D. Employees130E. Share Ownership133 ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS134 A. Major Shareholders134B. Related Party Transactions137C. Interests of Experts and Counsel139 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. ITEM 8. FINANCIAL INFORMATION139 A. Consolidated statements and other financial information139B. Significant Changes140 ITEM 9. THE OFFER AND LISTING141 A. Offering and listing details141B. Plan of Distribution141C. Markets141D. Selling Shareholders141E. Dilution141F. Expenses of the Issue141 ITEM 10. ADDITIONAL INFORMATION141 A. Share capital141B. Memorandum and Articles of Association141C. Material Contracts151D. Exchange Controls153E. Taxation153F. Dividends and Paying Agents161G. Statement by Experts161H. Documents on Display161I. Subsidiaries Information161 ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK161ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES164 A. Debt Securities164B. Warrants and Rights164C. Other Securities164D. American Depositary Shares164 ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES165ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS165ITEM 15. CONTROLS AND PROCEDURES165ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT167ITEM 16B. CODE OF ETHICS167ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES168ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES168ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS168ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT169ITEM 16G. CORPORATE GOVERNANCE169ITEM 16H. MINE SAFETY DISCLOSURE171PART III172ITEM 17. FINANCIAL STATEMENTS172ITEM 18. FINANCIAL STATEMENTS172ITEM 19. EXHIBITS172 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS This annual report includes forward-looking statements. These forward-looking statements include, but are not limited to, all statements other thanstatements of historical facts contained in this annual report, including, without limitation, those regarding our future financial position and results ofoperations, strategy, plans, objectives, goals and targets, future developments in the markets in which we operate or are seeking to operate or anticipatedregulatory changes in the markets in which we operate or intend to operate. In some cases, you can identify forward-looking statements by terminology suchas "aim", "anticipate", "believe", "continue", "could", "estimate", "expect", "forecast", "guidance", "intend", "may", "plan", "potential", "predict", "projected","should" or "will" or the negative of such terms or other comparable terminology. You should carefully consider all the information in this annual report, including the information set forth under "Risk Factors." We believe ourprimary challenges are: •If we are unable to maintain current resource utilization rates and productivity levels, our revenues, profit margins and results of operations may beadversely affected; •If we are unable to manage attrition and attract and retain highly-skilled IT professionals, our operating efficiency and productivity may decrease,and we may not have the necessary resources to maintain client relationships and expand our business; •If the pricing structures we use for our client contracts are based on inaccurate expectations and assumptions regarding the cost and complexity ofperforming our work, our contracts could be unprofitable, which could adversely affect our results of operations, financial condition and cash flowsfrom operation; •If we are unable to achieve anticipated growth, our revenues, results of operations, business and prospects may be adversely affected; •If we are unable to effectively manage the rapid growth of our business, our management personnel, systems and resources could face significantstrains, which could adversely affect our results of operations; •If we were to lose the services of our senior management team or other key employees, our business operations, competitive position, clientrelationships, revenues and results of operation may be adversely affected; •If we do not continue to innovate and remain at the forefront of emerging technologies and related market trends, we may lose clients and not remaincompetitive, which could cause our results of operations to suffer; •If any of our largest clients terminates, decreases the scope of, or fails to renew its business relationship or short-term contract with us, our revenues,business and results of operations may be adversely affected; •Worsening general economic conditions in the United States, Europe or globally could materially adversely affect our revenues, margins, results ofoperations and financial condition; •Uncertainty concerning the current economic, political and social environment in Latin America may have an adverse impact on capital flows orother relevant variables and could adversely affect our business, financial condition and results of operations; and By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may ormay not occur in the future. Forward-looking statements are not guarantees of future performance and are based on numerous assumptions. Our actual resultsof operations, financial condition and the development of events may differ materially from (and be more negative than) those made in, or suggested by, theforward-looking statements. Readers should read "Risk Factors" in this annual report and the description of our business under "Business" in this annualreport for a more complete discussion of the factors that could affect us. Unless required by law, we undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, futureevents or developments or otherwise. 1 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. CURRENCY PRESENTATION AND DEFINITIONS In this annual report, all references to "U.S. dollars" and "$" are to the lawful currency of the United States, all references to "Argentine pesos" are tothe lawful currency of the Republic of Argentina, all references to "Colombian pesos" are to the lawful currency of the Republic of Colombia, all references to"Uruguayan pesos" are to the lawful currency of the Republic of Uruguay, all references to "Mexican pesos" are to the lawful currency of Mexico, allreferences to "Rupees" or "Indian rupees" are to the lawful currency of the Republic of India, all references to "Reais" or "Brazilian Real" are to the lawfulcurrency of Brazil, all references to "Peruvian Sol" are to the lawful currency of Peru, all references to "Romanian Leu" are to the lawful currency of Romania,all references to "Belarusian ruble" are to the lawful currency of Belarus and all references to "euro" or "€" are to the single currency of the participatingmember states of the European and Monetary Union of the Treaty Establishing the European Community, as amended from time to time. All references to the"pound," "British Sterling pound" or "£" are to the lawful currency of the United Kingdom. Unless otherwise specified or the context requires otherwise in this annual report: •"IT" refers to information technology; •"ISO" means the International Organization for Standardization, which develops and publishes international standards in a variety of technologiesand in the IT services sector; •"Agile development methodologies" means a group of software development methods based on iterative and incremental development, whererequirements and solutions evolve through collaboration between self-organizing, cross-functional teams; •"Attrition rate," during a specific period, refers to the ratio of IT professionals that left our company during the period to the number of ITprofessionals that were on our payroll on the last day of the period; and •"Globers" refers to the employees that work for our company. "GLOBANT" and its logo are our trademarks. Solely for convenience, we refer to our trademarks in this annual without the TM and ® symbols, butsuch references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights to our trademarks. Otherservice marks, trademarks and trade names referred to in this annual report are the property of their respective owners. PRESENTATION OF FINANCIAL INFORMATION Our consolidated financial statements are prepared under International Financial Reporting Standards ("IFRS") as issued by the InternationalAccounting Standards Board ("IASB") and presented in U.S. dollars because the U.S. dollar is our functional currency. Our fiscal year ends on December 31 ofeach year. Accordingly, unless otherwise indicated, all references to a particular year are to the year ended December 31 of that year. Some percentages andamounts included in this annual report have been rounded for ease of presentation. Accordingly, figures shown as totals in certain tables may not be an exactarithmetic aggregation of the figures that precede them. PRESENTATION OF INDUSTRY AND MARKET DATA In this annual report, we rely on, and refer to, information regarding our business and the markets in which we operate and compete. The market dataand certain economic and industry data and forecasts used in this annual report were obtained from International Data Corporation (“IDC”), Gartner, Inc.(“Gartner”), internal surveys, market research, governmental and other publicly available information, independent industry publications and reportsprepared by industry consultants. Industry publications, surveys and forecasts generally state that the information contained therein has been obtained fromsources believed to be reliable, but that the accuracy and completeness of such information is not guaranteed. We believe that these industry publications,surveys and forecasts are reliable, but we have not independently verified them and cannot guarantee their accuracy or completeness. Certain market share information and other statements presented herein regarding our position relative to our competitors are not based on publishedstatistical data or information obtained from independent third parties, but reflect our best estimates. We have based these estimates upon informationobtained from our clients, trade and business organizations and associations and other contacts in the industries in which we operate. 2 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. PART I. ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS Not applicable. ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE Not applicable. ITEM 3. KEY INFORMATION A. Selected Financial Data The following selected consolidated financial and other data of Globant S.A. should be read in conjunction with, and are qualified by reference to,"Operating and Financial Review and Prospects" and our audited consolidated financial statements and notes thereto included elsewhere in this annualreport. The selected consolidated financial data as of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016 have beenderived from the audited consolidated financial statements of Globant S.A. included elsewhere in this annual report and should be read in conjunction withthose audited consolidated financial statements and notes thereto. The selected consolidated financial data as of and for the year ended December 31, 2016set forth below have been derived from our consolidated financial statements as of December 31, 2017 and 2016 and for the years ended December 31, 2017,2016 and 2015 filed with the SEC on April 13, 2018 in our annual report for the year ended December 31, 2017 and which are not included in this annualreport. The selected consolidated financial data as of December 31, 2015 and 2014 set forth below have been derived from our consolidated financialstatements as of December 31, 2015 and 2014 and for the years ended December 31, 2015, 2014 and 2013 filed with the SEC on April 29, 2016 in our annualreport for the year ended December 31, 2015 and which are not included in this annual report. 3 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Year ended December 31, 2018 2017 2016 2015 2014 (in thousands, except for percentages and per share data) Consolidated Statements of profit or loss and othercomprehensive income: Revenues (1) $522,310 $413,439 $322,856 $253,796 $199,605 Cost of revenues (2) (318,554) (263,171) (191,395) (160,292) (121,693)Gross profit 203,756 150,268 131,461 93,504 77,912 Selling, general and administrative expenses (3) (133,187) (110,813) (80,961) (71,389) (57,158)Net impairment losses on financial assets (4) (3,469) (1,581) (928) 1,615 1,375 Other operating expense, net (5) (306) (4,708) — — — Profit from operations 66,794 33,166 49,572 23,730 22,129 Gain on transactions with bonds (6) — — — 19,102 12,629 Finance income 11,418 7,956 16,215 27,555 10,269 Finance expense (16,968) (11,036) (19,227) (20,952) (11,213)Finance (expense) income, net (7) (5,550) (3,080) (3,012) 6,603 (944)Other income and expenses, net (8) 6,220 8,458 3,629 605 380 Profit before income tax 67,464 38,544 50,189 50,040 34,194 Income tax (9) (15,868) (8,081) (14,327) (18,420) (8,931)Net income for the year 51,596 30,463 35,862 31,620 25,263 Earnings per share Basic 1.45 0.87 1.04 0.93 0.81 Diluted 1.41 0.84 1.01 0.90 0.79 Weighted average number of outstanding shares (inthousands) Basic 35,746 34,919 34,402 33,960 30,926 Diluted 36,685 36,094 35,413 35,013 31,867 (1)Includes transactions with related parties of $5,937, $5,590, $6,462, $6,655 and $7,681 for the years ended December 31, 2018, 2017, 2016, 2015and 2014, respectively.(2)Includes depreciation and amortization expense of $4,022, $4,339, $4,281, $4,441 and $3,813 for the years ended December 31, 2018, 2017, 2016,2015 and 2014, respectively. Also includes share based compensation for $4,248, $5,666, $917, $735 and $35 for the years ended December 31,2018, 2017, 2016, 2015 and 2014, respectively.(3)Includes depreciation and amortization expense of $16,521, $11,789, $6,637, $4,860 and $4,221 for the years ended December 31, 2018, 2017,2016, 2015 and 2014, respectively. Also includes share based compensation of $8,665, $8,798, $2,703, $1,647 and $582 for the years endedDecember 31, 2018, 2017, 2016, 2015 and 2014, respectively.(4)Includes impairments of tax credits of $48 and $1,586 for the years ended December 31, 2018 and 2017, respectively, and recoveries related toreversals of allowances for impairments of tax credits of $1,820 and $1,505 for the years ended December 31, 2015 and 2014, respectively. Alsoincludes a loss of $3,421, $928, $205 and $130 on impairment of trade receivables for the years ended December 31, 2018, 2016, 2015 and 2014,respectively, and a gain related to the reversal of an allowance for impairment of $5 for the year ended December 31, 2017.(5)Includes an impairment of intangibles assets of $306 and $4,708 for the years ended December 31, 2018 and 2017.(6)Includes gains on transactions with bonds of $19,102 and $12,629 acquired with funds from capitalizations and proceeds received by our Argentinesubsidiaries as payments from exports for the years ended December 31, 2015 and 2014, respectively. For additional information about gain ontransactions with bonds during the year ended December 31, 2015 and 2014, see note Item 3.A. of our annual report for the year ended December 31,2015.(7)Includes foreign exchange losses, net, of $7,437, $2,729, $8,620, $10,136 and $2,946 for the years ended December 31, 2018, 2017, 2016, 2015 and2014, respectively. 4 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. (8)Includes gains of $6,700, $6,735 and $418, for the years ended December 31, 2018, 2017 and 2016, respectively, on the remeasurement of thecontingent consideration of Clarice Technologies Private Ltd. (now called Globant India Private Ltd. or "Clarice"), We Are London Limited ("WAEUK"), We Are Experience, Inc. ("WAE U.S." and together with WAE UK, "WAE"), L4 Mobile, LLC ("L4"), Ratio Cypress, LLC ("Ratio) andPointSource, LLC ("PointSource"), explained in note 28.9.1 to our audited consolidated financial statements, and gains of $1,611, $1,727 and$2,981 related to the remeasurement at fair value of the call and put option over our non-controlling interest in Dynaflows S.A. ("Dynaflows")explained in note 28.9.2 to our audited consolidated financial statements, and the derecognition of the call option over non-controlling interest of,$455 explained in note 24.3 to our audited consolidated financial statements. Includes the loss of $1,038 for the year ended December 31, 2018related to the settlement agreed with WAE former owners (note 28.9.1 to our audited consolidated financial statements). In 2016 includes a gain of$225 related to the bargain business combination of Difier S.A. explained in note 24.5 to our audited consolidated financial statements. In 2018includes the impairment of the investment in Collokia of $800 explained in note 10.2 to our audited consolidated financial statements. Includes again related to the valuation at fair value of our 22.7% share interest held in Dynaflows of $625 for the year ended December 31, 2015. Includes again related to the bargain business combination of Bluestar Energy Holdings, Inc. (now called Globant Peru S.A.C. or "Bluestar Peru") of $472 forthe year ended December 31, 2014.(9)Includes deferred tax gains of $7,456, $5,972, $730 and $1,102 for the years ended December 31, 2018, 2017, 2016 and 2015, respectively, and adeferred tax charge of $370 for the year ended December 31, 2014. Reconciliation of Non-IFRS Financial Data Overview To supplement our financial measures prepared in accordance with IFRS, we use certain non-IFRS financial measures including (i) adjusted dilutedearnings per share ("EPS"), (ii) adjusted net income, (iii) adjusted gross profit, (iv) adjusted selling, general and administrative ("SG&A") expenses, and(v) adjusted profit from operations. These measures do not have any standardized meaning under IFRS, and other companies may use similarly titled non-IFRS financial measures that are calculated differently from the way we calculate such measures. Accordingly, our non-IFRS financial measures may not becomparable to similar non-IFRS measures presented by other companies. We caution investors not to place undue reliance on such non-IFRS measures, butinstead to consider them with the most directly comparable IFRS measures. Non-IFRS financial measures have limitations as analytical tools and should notbe considered in isolation. They should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated inaccordance with IFRS. The reconciliations of these non-IFRS measures to the most directly comparable financial measures calculated and presented in accordance withIFRS are shown in the tables below. We use these non-IFRS measures as key measures in the evaluation of our performance and our consolidated financialresults. We believe these non-IFRS measures may be useful to investors in their assessment of our operating performance and the valuation of our company.In addition, these non-IFRS measures address questions we routinely receive from analysts and investors and, in order to assure that all investors have accessto similar data, we have determined that it is appropriate to make this data available to all investors. Adjusted Gross Profit and Adjusted SG&A Expenses We utilize non-IFRS measures of adjusted gross profit and adjusted SG&A expenses as supplemental measures for period-to-period comparisons.Adjusted gross profit and adjusted SG&A expenses are most directly comparable to the IFRS measures of gross profit and selling, general and administrativeexpenses, respectively. Our non-IFRS measures of adjusted gross profit and adjusted SG&A expenses exclude the impact of certain items, such asdepreciation and amortization expense, share-based compensation expense and, only with respect to adjusted SG&A expenses, acquisition-related charges. Adjusted Profit from Operations We utilize the non-IFRS measure of adjusted profit from operations as a supplemental measure for period-to-period comparisons. Adjusted profitfrom operations is most directly comparable to the IFRS measure of profit from operations. Adjusted profit from operations excludes the impact of certainitems, such as share-based compensation expense, impairment of assets, net of recoveries, and acquisition-related charges. 5 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Adjusted Diluted EPS and Adjusted Net Income We utilize non-IFRS measures of adjusted diluted EPS and adjusted net income for strategic decision making, forecasting future results andevaluating current performance. Adjusted diluted EPS and adjusted net income are most directly comparable to the IFRS measures of EPS and net income,respectively. Our non-IFRS measures of adjusted diluted EPS and adjusted net income exclude the impact of certain items, such as acquisition-relatedcharges, impairment of assets, net of recoveries, share-based compensation expense, expenses related to the secondary share offering in the United States ofour common shares held by WPP Luxembourg Gamma Three S.àr.l. ("WPP") (see note 22 to our consolidated financial statements) and expense related to theU.S. settlement agreement. 6 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Year ended December 31, 2018 2017 2016 2015 2014 Reconciliation of adjusted gross profit Gross profit $203,756 $150,268 $131,461 $93,504 $77,912 Adjustments Depreciation and amortization expense 4,022 4,339 4,281 4,441 3,813 Share-based compensation expense 4,248 5,666 917 735 35 Adjusted gross profit $212,026 $160,273 $136,659 $98,680 $81,760 Reconciliation of adjusted selling, general andadministrative expenses Selling, general and administrative expenses $(133,187) $(110,813) $(80,961) $(71,389) $(57,158)Adjustments Acquisition-related charges, net (1) 3,516 1,131 556 337 — Depreciation and amortization expense 16,521 11,789 6,637 4,860 4,221 Share-based compensation expense 8,665 8,798 2,703 1,647 582 Adjusted selling, general and administrativeexpenses $(104,485) $(89,095) $(71,065) $(64,545) $(52,355)Reconciliation of adjusted profit from operations Profit from operations $66,794 $33,166 $49,572 $23,730 $22,129 Adjustments Acquisition-related charges, net (1) 4,273 7,523 1,478 337 — Impairment of assets, net of recoveries (2) 354 1,586 — (1,820) (1,505)Share-based compensation expense 12,913 14,464 3,620 2,382 617 Adjusted profit from operations $84,334 $56,739 $54,670 $24,629 $21,241 Reconciliation of adjusted net income for the year Net income for the year $51,596 $30,463 $35,862 $31,620 $25,263 Adjustments Acquisition-related charges, net (1) (2,177) (447) (1,556) 337 — Share-based compensation expense 12,913 14,464 3,620 2,382 617 Impairment of assets, net of recoveries (2) 1,154 1,586 — (1,820) (1,505)Expenses related to secondary share offering(3) 251 — — — — U.S. settlement agreement, net — — 845 — — Adjusted net income for the year $63,737 $46,066 $38,771 $32,519 $24,375 Calculation of adjusted diluted EPS Adjusted net income 63,737 46,066 38,771 32,519 24,375 Diluted shares 36,685 36,094 35,413 35,013 31,867 Adjusted diluted EPS 1.74 1.28 1.09 0.93 0.76 Other data: Adjusted gross profit 212,026 160,273 136,659 98,680 81,760 Adjusted gross profit margin percentage 40.6% 38.8% 42.3% 38.9% 41.0%Adjusted selling, general and administrativeexpenses (104,485) (89,095) (71,065) (64,545) (52,355)Adjusted selling, general and administrativeexpenses margin percentage 20.0% 21.5% 22.0% 25.4% 26.2%Adjusted profit from operations 84,334 56,739 54,670 24,629 21,241 Adjusted profit from operations margin percentage 16.1% 13.7% 16.9% 9.7% 10.6%Adjusted net income for the year 63,737 46,066 38,771 32,519 24,375 Adjusted net income margin percentage for the year 12.2% 11.1% 12.0% 12.8% 12.2% 7 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. (1) Acquisition-related charges, net, include, when applicable, amortization of purchased intangible assets included in the depreciation and amortizationexpense line on our consolidated statements of operations, external deal costs, acquisition-related retention bonuses, integration costs, changes in the fairvalue of contingent consideration liabilities, charges for impairment of acquired intangible assets and other acquisition-related costs. (2) Impairment of assets, net of recoveries includes, when applicable, charges for impairment of intangible assets, charges for impairment of investments inassociates and charges for impairment of tax credits, net of recoveries. (3) Expenses related to secondary share offering include expenses related to the secondary offering in the United States of our common shares held byWPP Luxembourg Gamma Three S.àr.l. Consolidated Statements of Financial Position Data As of December 31, 2018 2017 2016 2015 2014 Consolidated statements of financial position data: Cash and cash equivalents $77,606 $52,525 $50,532 $36,720 $34,195 Investments (current and non-current) 9,162 8,147 9,355 25,660 27,984 Trade receivables 110,898 80,078 54,170 45,952 40,056 Other receivables (current and non-current) 49,538 46,093 46,334 38,692 15,169 Deferred tax assets 16,916 13,186 7,691 7,983 4,881 Investment in associates 4,000 1,550 800 300 750 Other financial assets (current and non-current) 895 1,428 1,219 2,121 — Property and equipment 51,460 43,879 35,676 25,720 19,213 Intangible assets 11,778 11,365 13,791 7,209 6,105 Goodwill 104,846 98,926 65,180 32,532 12,772 Total assets 437,099 357,177 284,748 222,889 161,125 Trade payables 17,578 11,640 5,603 4,436 5,673 Payroll and social security taxes payable 58,535 40,472 30,328 25,551 20,967 Borrowings (current and non-current) — 6,011 217 548 1,285 Other financial liabilities (current and non-current) 12,765 29,238 31,826 21,285 1,308 Tax liabilities 7,399 5,253 6,249 10,225 3,446 Other liabilities and provisions 2,906 1,199 1,965 659 967 Total liabilities 99,183 93,813 76,188 62,704 33,646 Total equity and non-controlling interest 337,916 263,364 208,560 160,185 127,479 Total equity, non-controlling interest and liabilities 437,099 357,177 284,748 222,889 161,125 B. Capitalization and Indebtedness Not applicable. C. Reasons for the Offer and Use of Proceeds Not applicable. 8 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Risk Factors You should carefully consider the risks and uncertainties described below, together with the other information contained in this annual report,before making any investment decision. Any of the following risks and uncertainties could have a material adverse effect on our business, prospects, resultsof operations and financial condition. The market price of our common shares could decline due to any of these risks and uncertainties, and you could loseall or part of your investment. The risks described below are those that we currently believe may materially affect us. Risks Related to Our Business and Industry If we are unable to maintain current resource utilization rates and productivity levels, our revenues, profit margins and results of operations may beadversely affected. Our profitability and the cost of providing our services are affected by our utilization rate of the Globers in our Studios. If we are not able to maintainappropriate utilization rates for our professionals, our profit margin and our profitability may suffer. Our utilization rates are affected by a number of factors,including: •our ability to transition Globers from completed projects to new assignments and to hire and integrate new employees; •our ability to forecast demand for our services and thereby maintain an appropriate headcount in each of our delivery centers; •our ability to manage the attrition of our IT professionals; and •our need to devote time and resources to training, professional development and other activities that cannot be billed to our clients. Our revenue could also suffer if we misjudge demand patterns and do not recruit sufficient employees to satisfy demand. Employee shortages couldprevent us from completing our contractual commitments in a timely manner and cause us to pay penalties or lose contracts or clients. In addition, we couldincur increased payroll costs, which would negatively affect our utilization rates and our business. If we are unable to manage attrition and attract and retain highly-skilled IT professionals, our operating efficiency and productivity may decrease, and wemay not have the necessary resources to maintain client relationships and expand our business. Our business is labor intensive and, accordingly, our success depends upon our ability to attract, develop, motivate, retain and effectively utilizehighly-skilled IT professionals. We believe that there is significant competition for technology professionals in Latin America, the United States, Europe,Asia and elsewhere who possess the technical skills and experience necessary to deliver our services, and that such competition is likely to continue for theforeseeable future. As a result, the technology industry generally experiences a significant rate of turnover of its workforce. Our business plan is based onhiring and training a significant number of additional technology professionals each year in order to meet anticipated turnover and increased staffing needs.Our ability to properly staff projects, to maintain and renew existing engagements and to win new business depends, in large part, on our ability to hire andretain qualified IT professionals. The total attrition rate among our Globers was 18.2%, 18.0% and 19.3% for the years ended December 31, 2018, 2017 and 2016, respectively. If ourattrition rate were to increase, our operating efficiency and productivity may decrease. We compete for talented individuals not only with other companies inour industry but also with companies in other industries, such as software services, engineering services and financial services companies, among others, andthere is a limited pool of individuals who have the skills and training needed to help us grow our company. High attrition rates of qualified personnel couldhave an adverse effect on our ability to expand our business, as well as cause us to incur greater personnel expenses and training costs. 9 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. We cannot assure you that we will be able to recruit and train a sufficient number of qualified professionals or that we will be successful in retainingcurrent or future employees. Increased hiring by technology companies, particularly in Latin America, the United States, Asia and Europe, and increasingworldwide competition for skilled technology professionals may lead to a shortage in the availability of qualified personnel in the locations where weoperate and hire. Failure to hire and train or retain qualified technology professionals in sufficient numbers could have a material adverse effect on ourbusiness, results of operations and financial condition. If the pricing structures we use for our client contracts are based on inaccurate expectations and assumptions regarding the cost and complexity ofperforming our work, our contracts could be unprofitable, which could adversely affect our results of operations, financial condition and cash flows fromoperation. We perform our services primarily under time-and-materials contracts. We charge out the services performed by our Globers under these contracts athourly rates that are agreed to at the time the contract is entered into. The hourly rates and other pricing terms negotiated with our clients are highlydependent on the complexity of the project, the mix of staffing we anticipate using on it, internal forecasts of our operating costs and predictions of increasesin those costs influenced by wage inflation and other marketplace factors. Our predictions are based on limited data and could turn out to be inaccurate.Typically, we do not have the ability to increase the hourly rates established at the outset of a client project in order to pass through to our client increases insalary costs driven by wage inflation and other marketplace factors. Because we conduct a substantial part of our operations through our operating subsidiaries located in Argentina, Colombia, Mexico and India, weare subject to the effects of wage inflation and other marketplace factors in these countries, which have increased significantly in recent years. If increases insalary and other operating costs at those subsidiaries exceed our internal forecasts, the hourly rates established under our time-and-materials contracts mightnot be sufficient to recover those increased operating costs, which would make those contracts unprofitable for us, thereby adversely affecting our results ofoperations, financial condition and cash flows from operations. In addition to our time-and-materials contracts, we undertake engagements on a fixed-price basis. Revenues from our fixed-price contractsrepresented approximately 17.4%, 8.9% and 7.9% of total revenues for the years ended December 31, 2018, 2017 and 2016, respectively. Our pricing in afixed-price contract depends on our assumptions and forecasts about the costs we will incur to complete the related project, which are based on limited dataand could turn out to be inaccurate. Any failure by us to accurately estimate the resources and time required to complete a fixed-price contract on time and onbudget or any unexpected increase in the cost of our Globers assigned to the related project, office space or materials could expose us to risks associated withcost overruns and could have an adverse effect on our business, results of operations and financial condition. In addition, any unexpected changes ineconomic conditions that affect any of the foregoing assumptions and predictions could render contracts that would have been favorable to us when signedunfavorable. If we are unable to achieve anticipated growth, our revenues, results of operations, business and prospects may be adversely affected. We intend to continue our expansion in the foreseeable future and to pursue existing and potential market opportunities. As we add new Studios,introduce new services or enter into new markets, we may face new market, technological and operational risks and challenges with which we are unfamiliar,and we may not be able to mitigate these risks and challenges to successfully grow those services or markets. We may not be able to achieve our anticipatedgrowth, which could materially adversely affect our revenues, results of operations, business and prospects. If we are unable to effectively manage the rapid growth of our business, our management personnel, systems and resources could face significant strains,which could adversely affect our results of operations. We have experienced, and continue to experience, rapid growth in our headcount, operations and revenues, which has placed, and will continue toplace, significant demands on our management and operational and financial infrastructure. Additionally, the longer-term transition in our delivery mix fromArgentina-based staffing to increasingly decentralized staffing in Latin America, the United States and India has also placed additional operational andstructural demands on our resources. Our future growth depends on recruiting, hiring and training technology professionals, growing our internationaloperations, expanding our delivery capabilities, adding effective sales staff and management personnel, adding service offerings, maintaining existing clientsand winning new business. Effective management of these and other growth initiatives will require us to continue to improve our infrastructure, executionstandards and ability to expand services. Failure to manage growth effectively could have a material adverse effect on the quality of the execution of ourengagements, our ability to attract and retain IT professionals and our business, results of operations and financial condition. 10 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. If we were to lose the services of our senior management team or other key employees, our business operations, competitive position, client relationships,revenues and results of operations may be adversely affected. Our future success heavily depends upon the continued services of our senior management team and other key employees. We currently do notmaintain key man life insurance for any of our founders, members of our senior management team or other key employees. If one or more of our seniorexecutives or key employees are unable or unwilling to continue in their present positions, it could disrupt our business operations, and we may not be ableto replace them easily, on a timely basis or at all. In addition, competition for senior executives and key employees in our industry is intense, and we may beunable to retain our senior executives and key employees or attract and retain new senior executives and key employees in the future, in which case ourbusiness may be severely disrupted. If any of our senior management team or key employees joins a competitor or forms a competing company, we may lose clients, suppliers, know-howand key IT professionals and staff members to them. Also, if any of our sales executives or other sales personnel, who generally maintain a close relationshipwith our clients, joins a competitor or forms a competing company, we may lose clients to that company, and our revenues may be materially adverselyaffected. Additionally, there could be unauthorized disclosure or use of our technical knowledge, practices or procedures by such personnel. If any disputearises between any members of our senior management team or key employees and us, any noncompetition, non-solicitation and nondisclosure agreementswe have with our founders, senior executives or key employees might not provide effective protection to us in light of legal uncertainties associated with theenforceability of such agreements. If we do not continue to innovate and remain at the forefront of emerging technologies and related market trends, we may lose clients and not remaincompetitive, which could cause our revenues and results of operations to suffer. Our success depends on creating software products that emotionally connect our customers with consumers and employees, leveraging the latesttechnologies and methodologies in the digital and cognitive space to drive increased revenues and effective communication with customers. Technologicaladvances and innovation are constant in the technology services industry. As a result, we must continue to invest significant resources in research anddevelopment to stay abreast of technology developments so that we may continue to deliver software products that our clients will wish to purchase. If we areunable to anticipate technology developments, enhance our existing services or develop and introduce new services to keep pace with such changes andmeet changing client needs, we may lose clients and our revenues and results of operations could suffer. Our results of operations would also suffer if ourinnovations are not responsive to the needs of our clients, are not appropriately timed with market opportunities or are not effectively brought to market. Ourcompetitors may be able to offer engineering, design and innovation services that are, or that are perceived to be, substantially similar or better than those weoffer. This may force us to compete on other fronts in addition to the quality of our services and to expend significant resources in order to remaincompetitive, which we may be unable to do. If any of our largest clients terminates, decreases the scope of, or fails to renew its business relationship or short-term contract with us, our revenues,business and results of operations may be adversely affected. We generate a significant portion of our revenues from our ten largest clients. During the years ended December 31, 2018, 2017 and 2016, ourlargest customers based on revenues, Walt Disney Parks and Resorts Online in 2018 and 2017, and Southwest Airlines Co. in 2016, accounted for 11.3%,10.2% and 9.7% of our revenues, respectively. During the years ended December 31, 2018, 2017 and 2016, our ten largest clients accounted for 44.0%,41.9% and 46.5% of our revenues, respectively. 11 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Our ability to maintain close relationships with these and other major clients is essential to the growth and profitability of our business. However,most of our client contracts are limited to short-term, discrete projects without any commitment to a specific volume of business or future work, and thevolume of work performed for a specific client is likely to vary from year to year, especially since we are generally not our clients' exclusive technologyservices provider. A major client in one year may not provide the same level of revenues for us in any subsequent year. The technology services we provide toour clients, and the revenues and income from those services, may decline or vary as the type and quantity of technology services we provide changes overtime. In addition, our reliance on any individual client for a significant portion of our revenues may give that client a certain degree of pricing leverageagainst us when negotiating contracts and terms of service. In addition, a number of factors, including the following, other than our performance could cause the loss of or reduction in business or revenuesfrom a client and these factors are not predictable: •our need to devote time and resources to training, professional development and other activities that cannot be billed to our clients. •the business or financial condition of that client or the economy generally; •a change in strategic priorities by that client, resulting in a reduced level of spending on technology services; •a demand for price reductions by that client; and •a decision by that client to move work in-house or to one or several of our competitors. The loss or diminution in business from any of our major clients could have a material adverse effect on our revenues and results of operations. Worsening general economic conditions in the United States, Europe or globally could materially adversely affect our revenues, margins, results ofoperations and financial condition. We derive a significant portion of our revenues from clients located in the United States, Latin America and Europe. The technology servicesindustry is particularly sensitive to the economic environment, and tends to decline during general economic downturns. If the U.S. or European economiesweaken or slow, pricing for our services may be depressed and our clients may reduce or postpone their technology spending significantly, which may, inturn, lower the demand for our services and negatively affect our revenues and profitability. The current U.S. administration has called for changes to domestic and foreign policy, including but not limited to changes to existing tradeagreements, import and export regulations, immigration, tariffs and customs duties, tax regulations, environmental regulations and other areas that becomesubject to significant changes. We cannot predict the impact, if any, the policies adopted by the current U.S. administration will have on our business. Suchpolicies, should they be adopted, could result in general business interruptions, delays from difficulties in obtaining import and/or export licenses for certaintechnology, tariffs and other barriers and restrictions, longer payment cycles, increased taxes, restrictions on the repatriation of funds and the burdens ofcomplying with a variety of foreign laws, any of which could ultimately have a material adverse effect on our business. The economic situation in Europe is still recovering and economic performance remains uncertain. There is still some concern that certain Europeancountries may default in payments due on their national debt obligations and from related European financial restructuring efforts. If such defaults were tooccur, or if European financial restructuring efforts create their own instability, the global credit markets may become less stable. Continued financialinstability in Europe could adversely affect our European operations and, in turn, could have a material adverse effect on us. In addition, if the U.K.'sreferendum to exit from the E.U., known as Brexit, is implemented, its effects on us will depend on the resulting agreements regarding trade and travel madebetween the United Kingdom and European Union. If we are unable to successfully anticipate changing economic and political conditions affecting the markets in which we operate, we may be unableto effectively plan for or respond to those changes, and our results of operations could be adversely affected. We face intense competition from technology and IT services providers, and an increase in competition, our inability to compete successfully, pricingpressures or loss of market share could materially adversely affect our revenues, results of operations and financial condition. 12 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. The market for technology and IT services is intensely competitive, highly fragmented and subject to rapid change and evolving industry standardsand we expect competition to intensify. We believe that the principal competitive factors that we face are the ability to innovate; technical expertise andindustry knowledge; end-to-end solution offerings; reputation and track record for high-quality and on-time delivery of work; effective employee recruiting;training and retention; responsiveness to clients' business needs; scale; financial stability; and price. We face competition primarily from large global consulting and outsourcing firms, digital agencies and design firms, traditional technologyoutsourcing providers, and the in-house product development departments of our clients and potential clients. Many of our competitors have substantiallygreater financial, technical and marketing resources and greater name recognition than we do. As a result, they may be able to compete more aggressively onpricing or devote greater resources to the development and promotion of technology and IT services. Companies based in some emerging markets alsopresent significant price competition due to their competitive cost structures and tax advantages. In addition, there are relatively few barriers to entry into our markets and we have faced, and expect to continue to face, competition from newtechnology services providers. Further, there is a risk that our clients may elect to increase their internal resources to satisfy their services needs as opposed torelying on a third-party vendor, such as our company. The technology services industry is also undergoing consolidation, which may result in increasedcompetition in our target markets in the United States and Europe from larger firms that may have substantially greater financial, marketing or technicalresources, may be able to respond more quickly to new technologies or processes and changes in client demands, and may be able to devote greater resourcesto the development, promotion and sale of their services than we can. Increased competition could also result in price reductions, reduced operating marginsand loss of our market share. We cannot assure you that we will be able to compete successfully with existing or new competitors or that competitivepressures will not materially adversely affect our business, results of operations and financial condition. Our business depends on a strong brand and corporate reputation, and if we are not able to maintain and enhance our brand, our ability to expand ourclient base will be impaired and our business and operating results will be adversely affected. Since many of our specific client engagements involve highly tailored solutions, our corporate reputation is a significant factor in our clients' andprospective clients' determination of whether to engage us. We believe the Globant brand name and our reputation are important corporate assets that helpdistinguish our services from those of our competitors and also contribute to our efforts to recruit and retain talented IT professionals. However, our corporatereputation is susceptible to damage by actions or statements made by current or former employees or clients, competitors, vendors, adversaries in legalproceedings and government regulators, as well as members of the investment community and the media. There is a risk that negative information about ourcompany, even if based on false rumor or misunderstanding, could adversely affect our business. In particular, damage to our reputation could be difficult andtime-consuming to repair, could make potential or existing clients reluctant to select us for new engagements, resulting in a loss of business, and couldadversely affect our recruitment and retention efforts. Damage to our reputation could also reduce the value and effectiveness of our Globant brand name andcould reduce investor confidence in us and result in a decline in the price of our common shares. We are seeking to expand our presence in the United States, which entails significant expenses and deployment of employees on-site with our clients. If weare unable to manage our operational expansion into the United States, it may adversely affect our business, results of operations and prospects. A key element of our strategy is to expand our delivery footprint, including by increasing the number of employees that are deployed onsite at ourclients or near client locations. In particular, we intend to focus our recruitment efforts on the United States. Client demands, the availability of high-qualitytechnical and operational personnel at attractive compensation rates, regulatory environments and other pertinent factors may vary significantly by regionand our experience in the markets in which we currently operate may not be applicable to other regions. As a result, we may not be able to leverage ourexperience to expand our delivery footprint effectively into our target markets in the United States. If we are unable to manage our expansion effortseffectively, if our expansion plans take longer to implement than expected or if our costs for these efforts exceed our expectations, our business, results ofoperations and prospects could be materially adversely affected. 13 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Our revenues are dependent on a limited number of industries, and any decrease in demand for technology services in these industries could reduce ourrevenues and adversely affect our results of operations. A substantial portion of our clients are concentrated in the following industries: media and entertainment; banks, financial services and insurance;travel and hospitality; and, technology and telecommunications which industries, in the aggregate, constituted 77.4%, 78.3% and 75.0% of our totalrevenues for the years ended December 31, 2018, 2017 and 2016, respectively. Our business growth largely depends on continued demand for our servicesfrom clients in these industries and other industries that we may target in the future, as well as on trends in these industries to purchase technology services orto move such services in-house. A downturn in any of these or our targeted industries, a slowdown or reversal of the trend to spend on technology services in any of these industriescould result in a decrease in the demand for our services and materially adversely affect our revenues, financial condition and results of operations. Forexample, a worsening of economic conditions in the media and entertainment industry and significant consolidation in that industry may reduce the demandfor our services and negatively affect our revenues and profitability. Other developments in the industries in which we operate may also lead to a decline in the demand for our services in these industries, and we maynot be able to successfully anticipate and prepare for any such changes. For example, consolidation in any of these industries or acquisitions, particularlyinvolving our clients, may adversely affect our business. Our clients may experience rapid changes in their prospects, substantial price competition andpressure on their profitability. This, in turn, may result in increasing pressure on us from clients in these key industries to lower our prices, which couldadversely affect our revenues, results of operations and financial condition. We have a relatively short operating history and operate in a rapidly evolving industry, which makes it difficult to evaluate our future prospects, mayincrease the risk that we will not continue to be successful and, accordingly, increases the risk of your investment. Our company was founded in 2003 and, therefore, has a relatively short operating history. In addition, the technology services industry itself iscontinuously evolving. Competition, fueled by rapidly changing consumer demands and constant technological developments, renders the technologyservices industry one in which success and performance metrics are difficult to predict and measure. Because services and technologies are rapidly evolvingand each company within the industry can vary greatly in terms of the services it provides, its business model, and its results of operations, it can be difficultto predict how any company's services, including ours, will be received in the market. While enterprises have been willing to devote significant resources toincorporate emerging technologies and related market trends into their business models, enterprises may not continue to spend any significant portion oftheir budgets on our services in the future. Neither our past financial performance nor the past financial performance of any other company in the technologyservices industry is indicative of how our company will fare financially in the future. Our future profits may vary substantially from those of other companies,and those we have achieved in the past, making investment in our company risky and speculative. If our clients' demand for our services declines, as a resultof economic conditions, market factors or shifts in the technology industry, our business would suffer and our results of operations and financial conditionwould be adversely affected. We are investing substantial cash in new facilities and physical infrastructure, and our profitability and cash flows could be reduced if our business doesnot grow proportionately. We have made and continue to make significant contractual commitments related to capital expenditures on construction or expansion of ourdelivery centers. We may encounter cost overruns or project delays in connection with opening new, or expanding existing, facilities. These expansions willlikely increase our fixed costs and if we are unable to grow our business and revenues proportionately, our profitability and cash flows may be negativelyaffected. 14 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. If we cause disruptions in our clients' businesses or provide inadequate service, our clients may have claims for substantial damages against us, whichcould cause us to lose clients, have a negative effect on our corporate reputation and adversely affect our results of operations. If our Globers make errors in the course of delivering services to our clients or fail to consistently meet service requirements of a client, these errorsor failures could disrupt the client's business, which could result in a reduction in our revenues or a claim for substantial damages against us. In addition, afailure or inability to meet a contractual requirement could seriously damage our corporate reputation and limit our ability to attract new business. The services we provide are often critical to our clients' businesses. Certain of our client contracts require us to comply with security obligationsincluding maintaining network security and backup data, ensuring our network is virus-free, maintaining business continuity planning procedures, andverifying the integrity of employees that work with our clients by conducting background checks. Any failure in a client's system or breach of securityrelating to the services we provide to the client could damage our reputation or result in a claim for substantial damages against us. Any significant failure ofour equipment or systems, or any major disruption to basic infrastructure like power and telecommunications in the locations in which we operate, couldimpede our ability to provide services to our clients, have a negative impact on our reputation, cause us to lose clients, and adversely affect our results ofoperations. Under our client contracts, our liability for breach of our obligations is in some cases limited pursuant to the terms of the contract. Such limitationsmay be unenforceable or otherwise may not protect us from liability for damages. In addition, certain liabilities, such as claims of third parties for which wemay be required to indemnify our clients, are generally not limited under our contracts. The successful assertion of one or more large claims against us inamounts greater than those covered by our current insurance policies could materially adversely affect our business, financial condition and results ofoperations. Even if such assertions against us are unsuccessful, we may incur reputational harm and substantial legal fees. We may face losses or reputational damage if our software solutions turn out to contain undetected software defects. A significant amount of our business involves developing software solutions for our clients as part of our provision of technology services. We arerequired to make certain representations and warranties to our clients regarding the quality and functionality of our software. Any undetected software defectscould result in liability to our clients under certain contracts as well as losses resulting from any litigation initiated by clients due to any losses sustained as aresult of the defects. Any such liability or losses could have an adverse effect on our financial condition as well as on our reputation with our clients and inthe technology services market in general. Our client relationships, revenues, results of operations and financial condition may be adversely affected if we experience disruptions in our Internetinfrastructure, telecommunications or IT systems. Disruptions in telecommunications, system failures, Internet infrastructure or computer virus attacks could damage our reputation and harm ourability to deliver services to our clients, which could result in client dissatisfaction and a loss of business and related reduction of our revenues. We may notbe able to consistently maintain active voice and data communications between our various global operations and with our clients due to disruptions intelecommunication networks and power supply, system failures or computer virus attacks. Any significant failure in our ability to communicate could resultin a disruption in business, which could hinder our performance and our ability to complete projects on time. Such failure to perform on client contractscould have a material adverse effect on our business, results of operations and financial condition. 15 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. If our computer system is or becomes vulnerable to security breaches, or if any of our employees misappropriates data, we may face reputational damage,lose clients and revenues, or incur losses. Our business is heavily dependent on the security of our IT networks and those of our clients. We often have access to or are required to collect andstore confidential client and customer data. Internal or external attacks on our IT networks or those of our clients could disrupt the normal operations of ourengagements and impede our ability to provide critical services to our clients, thereby subjecting us to liability under our contracts. Additionally, ourbusiness involves the use, storage and transmission of confidential information and data about our employees, our vendors and our clients. While we takemeasures to protect the security of, and unauthorized access to, our systems, as well as the privacy of confidential information and data, our security controlsover our systems, or the security controls over the systems of our clients with which we operate and rely upon, as well as any other security practices wefollow, may not prevent the improper access to or the unauthorized disclosure of confidential information, including any personally identifiable orproprietary information. Many of our client contracts do not limit our potential liability for breaches of confidentiality. If any person, including any of ourGlobers or former Globers, penetrates our network security or misappropriates data or code that belongs to us, our clients, or our clients' customers, we couldbe subject to significant liability from our clients or from our clients' customers for breaching contractual confidentiality provisions or privacy laws. Unauthorized disclosure of confidential client and customer data, whether through breach of our computer systems, systems failure, loss or theft ofconfidential information or intellectual property belonging to our clients or our clients' customers, or otherwise, could damage our reputation, cause us tolose clients and revenues, and result in financial and other potential losses by us, as well as require us to expend significant resources to protect againstfurther breaches and to rectify problems caused by these events. Any such access, unauthorized disclosure or other loss of information could result in legalclaims or proceedings, liability under applicable laws, and regulatory penalties and could adversely affect our business, revenues and competitive position. Our business, results of operations and financial condition may be adversely affected by the various conflicting and/or onerous legal and regulatoryrequirements imposed on us by the countries where we operate. We have a presence in many countries and plan to continue expanding our international operations, which may subject us to increased business andeconomic risks that could affect our financial results. Since we provide services to clients throughout the world, we are subject to numerous, and sometimes conflicting legal requirements. Compliancewith complex international and U.S. laws and regulations that apply to our international operations increases our cost of doing business. These numerous andsometimes conflicting laws and regulations include, among others, import/export controls, content requirements, trade restrictions, tariffs, taxation, anti-corruption laws, such as the U.S. Foreign Corrupt Practices Act, whistle blowing, internal control and disclosure rules, data protection and privacyrequirements. Our failure to comply with these regulations in the conduct of our business could result in fines, penalties, criminal sanctions against us or ourofficers, disgorgement of profits, prohibitions on doing business and adverse impact on our brand and reputation. In addition, our failure to comply withthese regulations in the context of our obligations to our clients could also result in liability for monetary damages, unfavorable publicity and allegations byour clients that we have not performed our contractual obligations. Due to the varying degree of development of the legal systems of the countries in whichwe operate, local laws might be insufficient to defend us and preserve our rights. In addition, because we operate from a number of cities in Latin America, the United States, Europe and India, we are also subject to risks relating tocompliance with a variety of national and local labor laws including, employee health safety and wages and benefits laws. We may, from time to time, besubject to litigation or administrative actions resulting from claims against us by current or former Globers individually or as part of class actions, includingclaims of wrongful terminations, discrimination, misclassification or other violations of labor law or other alleged conduct. We may also, from time to time,be subject to litigation resulting from claims against us by third parties, including claims of breach of non-compete and confidentiality provisions of ouremployees' former employment agreements with such third parties. Our failure to comply with applicable regulatory requirements could have a materialadverse effect on our business, results of operations and financial condition. We may not be able to prevent unauthorized use of our intellectual property and our intellectual property rights may not be adequate to protect ourbusiness, competitive position, results of operations and financial condition. Our success depends in part on certain methodologies, practices, tools and technical expertise our company utilizes in designing, developing,implementing and maintaining applications and other proprietary intellectual capital. In order to protect our rights in this intellectual capital, we rely upon acombination of nondisclosure and other contractual arrangements as well as trade secret, patent, copyright and trademark laws. We also generally enter intoconfidentiality agreements with our employees, consultants, clients and potential clients and limit access to and distribution of our proprietary information. 16 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. We hold several trademarks and intend to submit additional U.S. federal and foreign trademark applications for developments relating to additionalservice offerings in the future. We cannot assure you that we will be successful in maintaining existing or obtaining future intellectual property rights orregistrations. There can be no assurance that the laws, rules, regulations and treaties in the countries in which we operate in effect now or in the future or thecontractual and other protective measures we take are adequate to protect us from misappropriation or unauthorized use of our intellectual capital or that suchlaws, rules, regulations and treaties will not change. We cannot assure you that we will be able to detect unauthorized use of our intellectual property and take appropriate steps to enforce our rights orthat any such steps will be successful. We cannot assure you that we have taken all necessary steps to enforce our intellectual property rights in everyjurisdiction in which we operate and we cannot assure you that the intellectual property laws of any jurisdiction in which we operate are adequate to protectour interest or that any favorable judgment obtained by us with respect thereto will be enforced in the courts. Misappropriation by third parties of, or otherfailure to protect, our intellectual property, including the costs of enforcing our intellectual property rights, could have a material adverse effect on ourbusiness, competitive position, results of operations and financial condition. If we incur any liability for a violation of the intellectual property rights of others, our reputation, business, financial condition and prospects may beadversely affected. Our success largely depends on our ability to use and develop our technology, tools, code, methodologies and services without infringing theintellectual property rights of third parties, including patents, copyrights, trade secrets and trademarks. We may be subject to litigation involving claims ofpatent infringement or violation of other intellectual property rights of third parties. In such cases, litigation may be necessary to determine the scope,enforceability and validity of third-party proprietary rights or to establish our proprietary rights. However, given that litigation could be costly an timeconsuming and could divert the attention of management and key personnel from our business operations, we may elect to settle these claims from time totime. We typically indemnify clients who purchase our services and solutions against potential infringement of intellectual property rights, whichsubjects us to the risk of indemnification claims. These claims may require us to initiate or defend protracted and costly litigation on behalf of our clients,regardless of the merits of these claims and are often not subject to liability limits or exclusion of consequential, indirect or punitive damages. If any of theseclaims succeed, we may be forced to pay damages on behalf of our clients, redesign or cease offering our allegedly infringing services or solutions, or obtainlicenses for the intellectual property such services or solutions allegedly infringe. If we cannot obtain all necessary licenses on commercially reasonableterms, our clients may stop using our services or solutions. Further, our current and former Globers could challenge our exclusive rights to the software they have developed in the course of their employment.In certain countries in which we operate, an employer is deemed to own the copyright work created by its employees during the course, and within the scope,of their employment, but the employer may be required to satisfy additional legal requirements in order to make further use and dispose of such works. Whilewe believe that we have complied with all such requirements, and have fulfilled all requirements necessary to acquire all rights in software developed by ourindependent contractors, these requirements are often ambiguously defined and enforced. As a result, we cannot assure you that we would be successful indefending against any claim by our current or former Globers or independent contractors challenging our exclusive rights over the use and transfer of worksthose Globers or independent contractors created or requesting additional compensation for such works. We are subject to additional risks as a result of our recent and possible future acquisitions and the hiring of new employees who may misappropriateintellectual property from their former employers. The developers of the technology that we have acquired or may acquire may not have appropriatelycreated, maintained or enforced intellectual property rights in such technology. Indemnification and other rights under acquisition documents may be limitedin term and scope and may therefore provide little or no protection from these risks. Parties making infringement claims may be able to obtain an injunctionto prevent us from delivering our services or using technology involving the allegedly infringing intellectual property. Intellectual property litigation isexpensive and time-consuming and could divert management's attention from our business. A successful infringement claim against us, whether with orwithout merit, could, among others things, require us to pay substantial damages, develop substitute non-infringing technology, or rebrand our name or enterinto royalty or license agreements that may not be available on acceptable terms, if at all, and would require us to cease making, licensing or using productsthat have infringed a third party's intellectual property rights. Protracted litigation could also result in existing or potential clients deferring or limiting theirpurchase or use of our software product development services or solutions until resolution of such litigation, or could require us to indemnify our clientsagainst infringement claims in certain instances. Any intellectual property claim or litigation, whether we ultimately win or lose, could damage ourreputation and materially adversely affect our business, financial condition and results of operations. 17 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. We may not be able to recognize revenues in the period in which our services are performed and the costs of those services are incurred, which may causeour margins to fluctuate. We perform our services primarily under time-and-materials contracts and, to a lesser extent, fixed-price contracts. All revenues are recognizedpursuant to applicable accounting standards. Unlike our time-and-materials contracts, for which revenue is recognized as services are provided, our fixed-priced contracts require the use ofcertain accounting estimates. We utilize the input and output methods, depending on the nature of the project and the agreement with the customer, toaccount for these contracts. Under the input method, as labor costs represent the primary cost component under such contracts, we estimate each of our fixed-price contract's total labor cost to date as a proportion of its total expected labor cost. Under the output method, we recognize revenue on the basis of directmeasurements of the value of the services transferred to date relative to the remaining services promised under the contract. We monitor these factors andcontinuously revise and refine our estimates during the term of our fixed-price contracts. Uncertainty about the project completion or receipt of payment for our services or our failure to meet all the acceptance criteria, or otherwise meet aclient's expectations, may result in us having to record the cost related to the performance of services in the period that services were rendered, but delay thetiming of revenue recognition to a future period in which all acceptance criteria have been met, which may cause our margins to fluctuate. Our cash flows and results of operations may be adversely affected if we are unable to collect on billed and unbilled receivables from clients. Our business depends on our ability to successfully obtain payment from our clients of the amounts they owe us for work performed. We evaluate thefinancial condition of our clients and usually bill and collect on relatively short cycles. We maintain provisions against receivables. Actual losses on clientbalances could differ from those that we currently anticipate and, as a result, we may need to adjust our provisions. We cannot assure you that we willaccurately assess the creditworthiness of our clients. Macroeconomic conditions, such as a potential credit crisis in the global financial system, could alsoresult in financial difficulties for our clients, including limited access to the credit markets, insolvency or bankruptcy. Such conditions could cause clients todelay payment, request modifications of their payment terms, or default on their payment obligations to us, all of which could increase our receivablesbalance. Timely collection of fees for client services also depends on our ability to complete our contractual commitments and subsequently bill for andcollect our contractual service fees. If we are unable to meet our contractual obligations, we might experience delays in the collection of or be unable tocollect our client balances, which could adversely affect our results of operations and cash flows. In addition, if we experience an increase in the time requiredto bill and collect for our services, our cash flows could be adversely affected, which could affect our ability to make necessary investments and, therefore,our results of operations. If the current effective income tax rate payable by us in any country in which we operate is increased or if we lose any country-specific tax benefits, thenour financial condition and results of operations may be adversely affected. We conduct business globally and file income tax returns in multiple jurisdictions. Our consolidated effective income tax rate could be materiallyadversely affected by several factors, including changes in the amount of income taxed by or allocated to the various jurisdictions in which we operate thathave differing statutory tax rates; changing tax laws, regulations and interpretations of such tax laws in multiple jurisdictions; and the resolution of issuesarising from tax audits or examinations and any related interest or penalties. 18 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. We report our results of operations based on our determination of the amount of taxes owed in the various jurisdictions in which we operate. Wehave transfer pricing arrangements among our subsidiaries in relation to various aspects of our business, including operations, marketing, sales and deliveryfunctions. Transfer pricing regulations require that any international transaction involving associated enterprises be on arm's-length terms. We consider thetransactions among our subsidiaries to be on arm's-length terms. The determination of our consolidated provision for income taxes and other tax liabilitiesrequires estimation, judgment and calculations where the ultimate tax determination may not be certain. Our determination of tax liability is always subjectto review or examination by authorities in various jurisdictions. Under Argentina's Law No. 25,922 (Ley de Promoción de la Industria de Software), as amended by Law No. 26,692 and Decree No. 95/2018 (the"Software Promotion Law"), our operating subsidiaries in Argentina benefit from a 60% reduction in their corporate income tax rate (as applied to incomefrom promoted software activities) and a tax credit of up to 70% of amounts paid for certain social security taxes (contributions) that may be offset againstvalue-added tax liabilities. Law No. 26,692, the 2011 amendment to the Software Promotion Law ("Law No. 26,692"), also allows such tax credits to beapplied to reduce our Argentine subsidiaries' corporate income tax liability by a percentage not higher than the subsidiaries' declared percentage of exportsand extends the tax benefits under the Software Promotion Law until December 31, 2019. The Software Promotion Law remains in effect until December 31, 2019. In March 2019, a draft bill was introduced for its treatment by the ArgentineCongress consisting of a promotional Knowledge Economy regime. The regime contains tax benefits similar to the ones provided by the Software PromotionLaw and is addressed to software companies, as well as other companies involved in biotechnology, audiovisual production, exportable professional services,robotic automation, aerospace and satellite industry, among others. The bill has not yet been passed. Our subsidiary in Uruguay, Sistemas Globales Uruguay S.A., which is situated in a tax-free zone, benefits from a 0% income tax rate and anexemption from value-added tax. Additionally, our software development services are exempt from income tax in Uruguay. The exemption applies tosoftware development services as long as they are exported and utilized abroad. In India, under the Special Economic Zones Act of 2005, the services provided by export-oriented companies within Special Economic Zones (each,an "SEZ") are eligible for a deduction of 100% of the profits or gains derived from the export of services for the first five years from the financial year inwhich the company commenced the provision of services, and 50% of such profits or gains for the five years thereafter. Some locations of our Indiansubsidiary are located in a SEZ and have completed the SEZ registration process. Consequently, we started receiving the tax benefit on August 2, 2018. In Belarus, a Hi-Tech Park (the “HTP”) was established in Minsk in 2005 to promote the IT industry. The HTP has a special legal and fiscal regime ineffect until 2042. For further discussion of the Argentine, Uruguay, India and Belarus tax benefits, see "Business Overview — Our Delivery Model — GovernmentSupport and Incentives". If these tax incentives in Argentina, Uruguay, India and Belarus are changed, terminated, not extended or made unavailable, orcomparable new tax incentives are not introduced, we expect that our effective income tax rate and/or our operating expenses would increase significantly,which could materially adversely affect our financial condition and results of operations. See "Operating and Financial Review and Prospects — OperatingResults — Certain Income Statement Line Items — Income Tax Expense". On December 22, 2017, the United States enacted legislation referred to as the Tax Cuts and Jobs Act ("2017 Tax Act"), which institutedfundamental changes to the taxation of multinational corporations. As of the date of this annual report, certain provisions of the 2017 Tax Act do notcurrently apply to us, including those designed to (i) tax global intangible low-tax income ("GILTI"); (ii) establish a deduction for foreign derived intangibleincome ("FDII"); (iii) eliminate the intercompany payment deduction under Base Erosion Anti-Abuse Tax provision ("BEAT"); and (iv) establish newlimitations on certain executive compensation. One or more of these provisions may apply to us in the future and any additional taxation may have anadverse impact on our results of operations and cash flows. 19 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. If we are faced with immigration or work permit restrictions in any country where we currently have personnel onsite at a client location or would like toexpand our delivery footprint, then our business, results of operations and financial condition may be adversely affected. A key part of our strategy is to expand our delivery footprint, including by increasing the number of employees that are deployed onsite at ourclients or near client locations. Therefore, we must comply with the immigration, work permit and visa laws and regulations of the countries in which weoperate or plan to operate. Our future inability to obtain or renew sufficient work permits and/or visas due to the impact of these regulations, including anychanges to immigration, work permit and visa regulations in jurisdictions such as the United States and Europe, could have a material adverse effect on ourbusiness, results of operations and financial condition. If we are unable to maintain favorable pricing terms with current or new suppliers, our results of operations would be adversely affected. We rely to a limited extent on suppliers of goods and services. In some cases, we have contracts with such parties guaranteeing us favorable pricingterms. We cannot guarantee our ability to maintain such pricing terms beyond the date that pricing terms are fixed pursuant to a written agreement.Furthermore, should economic circumstances change, such that suppliers find it beneficial to change or attempt to renegotiate such pricing terms in theirfavor, we cannot assure you that we would be able to withstand an increase or achieve a favorable outcome in any such negotiation. Any change in ourpricing terms would increase our costs and expenses, which would have an adverse effect on our results of operations. If our current insurance coverage is or becomes insufficient to protect against losses incurred, our business, results of operations and financial conditionmay be adversely affected. We provide technology services that are integral to our clients' businesses. If we were to default in the provision of any contractually agreed-uponservices, our clients could suffer significant damages and make claims upon us for those damages. Although we believe that we have adequate processes inplace to protect against defaults in the provisions of services, errors and omissions may occur. We currently carry errors and omissions liability coverage forall of the services we provide. To the extent client damages are deemed recoverable against us in amounts substantially in excess of our insurance coverage,or if our claims for insurance coverage are denied by our insurance carriers for any reason including, but not limited to our failure to provide insurance carrier-required documentation or our failure to follow insurance carrier-required claim settlement procedures, there could be a material adverse effect on ourbusiness, results of operations and financial condition. Strategic acquisitions to complement and expand our business have been and will likely remain an important part of our competitive strategy. If we fail toacquire companies whose prospects, when combined with our company, would increase our value, or if we acquire and fail to efficiently integrate suchother companies, then our business, results of operations, and financial condition may be adversely affected. We have expanded, and may continue to expand, our operations through strategically targeted acquisitions focused on deepening our relationshipswith key clients, extending our technological capacities including services over platforms, broadening our service offering and expanding the geographicfootprint of our delivery centers, including beyond Latin America. We completed two acquisitions in 2008, one in 2011, two in 2012, one in 2013, one in2014, two in 2015, three in 2016, two in 2017 and one in 2018. Financing of any future acquisition could require the incurrence of indebtedness, theissuance of equity or a combination of both. There can be no assurance that we will be able to identify, acquire or profitably manage additional businesses orsuccessfully integrate any acquired businesses without substantial expense, delays or other operational or financial risks and problems. Furthermore,acquisitions may involve a number of special risks, including diversion of management's attention, failure to retain key acquired personnel, unanticipatedevents or legal liabilities and amortization of acquired intangible assets. In addition, any client satisfaction or performance problems within an acquiredbusiness could have a material adverse impact on our company's corporate reputation and brand. We cannot assure you that any acquired businesses wouldachieve anticipated revenues and earnings. Any failure to manage our acquisition strategy successfully could have a material adverse effect on our business,results of operations and financial condition. 20 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. We have incurred significant share-based compensation expense in the past, and may in the future continue to incur share-based compensation expense,which could adversely impact our profits or the trading price of our common shares. On July 3, 2014, our board of directors and shareholders approved and adopted the 2014 Equity Incentive Plan, which was amended by our board ofdirectors to increase the number of common shares that may be issued as stock awards from 1,666,667 to up to 3,666,667 on May 9, 2016, and from3,666,667 to up to 5,666,667 on February 13, 2019. From the adoption of the plan until the date of this annual report we have granted to members of our senior management and certain other employees30,000 stock awards, options to purchase 2,277,434 common shares and 770,849 restricted stock units, net of any cancelled and/or forfeited awards. Most ofthe options and restricted stock units were granted with a vesting period of four years, 25% of each grant becoming exercisable on each anniversary of thegrant date. The remaining options and restricted stock units were granted with a vesting period agreed with those employees. Share-based compensationexpense for awards of equity instruments is determined based on the fair value of the awards at the grant date. Each of our employee share options isexercisable for one of our common shares, and each of our restricted stock units is settled, automatically upon its vesting, with one of our common shares. Noamounts are paid or payable by the recipient on receipt of an option or restricted stock unit. Neither the options nor the restricted stock units carry rights todividends or voting rights. Options may be exercised at any time from the date of vesting to the date of their expiration (ten years after the grant date). For the years ended December 31, 2018, 2017 and 2016, we recorded $12.9, $14.5 and $3.6 million, respectively, of share-based compensationexpense related to the grant of options and restricted stock units. The expenses associated with share-based compensation may reduce the attractiveness of issuing equity awards under our equity incentive plan.However, if we do not grant equity awards, or if we reduce the number of equity awards we grant, we may not be able to attract and retain key personnel. If wegrant more equity awards to attract and retain key personnel, the expenses associated with such additional equity awards could materially adversely affect ourresults of operations and the trading price of our common shares. Our ability to expand our business and procure new contracts or enter into beneficial business arrangements could be affected to the extent we enter intoagreements with clients containing noncompetition clauses. Some of our services agreements restrict our ability to perform similar services for certain of our clients' competitors under specific circumstances.We may in the future enter into additional agreements with clients that restrict our ability to accept assignments from, or render similar services to, thoseclients' customers, require us to obtain our clients' prior written consent to provide services to their customers or restrict our ability to compete with ourclients, or bid for or accept any assignment for which those clients are bidding or negotiating. These restrictions may hamper our ability to compete for andprovide services to other clients in a specific industry in which we have expertise and could materially adversely affect our business, financial condition andresults of operations. The terms of our credit facility place restrictions on our operating and financial flexibility. In November 2018, Globant LLC, our U.S. subsidiary (the “Borrower”) entered into an Amended and Restated Credit Agreement (the “A&R CreditAgreement”) with the financial institutions listed therein, as lenders, and HSBC Bank USA, N.A., as administrative agent, issuing bank and swingline lender.The A&R Credit Agreement amends and restates the Credit Agreement dated as of August 3, 2017, which provided for a secured revolving credit facilityunder which the Borrower could borrow up to $40.0 million in advances. Under the A&R Credit Agreement, the Borrower may borrow (i) up to $50.0 millionin a single borrowing on or prior to May 1, 2019 under a delayed-draw term loan facility and (ii) up to $150.0 million under a revolving credit facility. Inaddition, the Borrower may request increases of the maximum amount available under the revolving facility in an aggregate amount not to exceed $100.0million. The maturity date of each of the facilities is October 31, 2023, and interest on the loans extended thereunder shall accrue at a rate per annum equal toLIBOR plus 1.75%. The Borrower’s obligations under the A&R Credit Agreement are guaranteed by us and our subsidiary, Globant España S.A., and aresecured by substantially all of the Borrower’s now owned and after-acquired assets. The A&R Credit Agreement also contains certain customary negative andaffirmative covenants. . Compliance with these covenants may limit our flexibility in operating our business and our ability to take actions that might beadvantageous to us and our shareholders. 21 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. As of December 31, 2018 and as of the date of this annual report, no amounts were outstanding under this facility. Indebtedness under our credit facility bears interest based on LIBOR, which may be subject to regulatory guidance and/or reform that could cause interestrates under our current or future debt agreements to perform differently than in the past or cause other unanticipated consequences. The U.K. Financial Conduct Authority, which regulates LIBOR, has announced that it intends to stop encouraging or requiring banks to submitLIBOR rates after 2021, and it is unclear if LIBOR will cease to exist or if new methods of calculating LIBOR will evolve. If LIBOR ceases to exist or if themethods of calculating LIBOR change from their current form, interest rates on our current or future indebtedness may be adversely affected or we may needto renegotiate the terms of our credit agreement to replace LIBOR with the new standard that is established, if any, or to otherwise agree with the trustees oragents under such facilities or instruments on a new means of calculating interest. Risks Related to Operating in Latin America. Our two largest operations are based in Argentina and Colombia, and we have subsidiaries in other countries of Latin America, such as Chile,Uruguay, Peru, Mexico and Brazil. There are significant risks to operating in those countries that should be carefully considered before making aninvestment decision. Latin America Latin America has experienced adverse economic conditions that may impact our business, financial condition and results of operations. Our business is dependent to a certain extent upon the economic conditions prevalent in Argentina and Colombia as well as the other LatinAmerican countries in which we operate. Latin American countries have historically experienced uneven periods of economic growth, as well as recession,periods of high inflation and economic instability. As a consequence of adverse economic conditions in global markets and diminishing commodity prices,the economic growth rates of the economies of many Latin American countries have slowed and some have entered mild recessions. Adverse economicconditions in any of these countries could have a material adverse effect on our business, financial condition and results of operations. Latin American governments have exercised and continue to exercise significant influence over the economies of the countries where we operate, whichcould adversely affect our business, financial condition, results of operations and prospects. Historically, governments in Latin America have frequently intervened in the economies of their respective countries and have occasionally madesignificant changes in policy and regulations. Governmental actions to control inflation and other policies and regulations have often involved, amongothers, price controls, currency devaluations, capital controls and tariffs. Our business, financial condition, results of operations and prospects may beadversely affected by: •changes in government policies or regulations, including such factors as exchange rates and exchange control policies; •inflation rates; •interest rates; •tariff and inflation control policies; •price control policies; •liquidity of domestic capital and lending markets; •electricity rationing; 22 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. •tax policies, royalty and tax increases and retroactive tax claims; and •other political, diplomatic, social and economic developments in or affecting the countries where we operate. Inflation, and government measures to curb inflation in Latin America, may adversely affect the economies in the countries where we operate in LatinAmerica, our business and results of operations. Some of the countries in which we operate in Latin America have experienced, or are currently experiencing, high rates of inflation. Althoughinflation rates in some of these countries (other than Argentina, as further explained in "Our results of operations may be adversely affected by high andpossibly increasing inflation in Argentina") have been relatively low in the recent past, we cannot assure you that this trend will continue. The measurestaken by the governments of these countries to control inflation have often included maintaining a tight monetary policy with high interest rates, therebyrestricting the availability of credit and retarding economic growth. Inflation, measures to combat inflation and public speculation about possible additionalactions have also contributed significantly to economic uncertainty in many of these countries and to heightened volatility in their securities markets.Periods of higher inflation may also slow the growth rate of local economies. Inflation is also likely to increase some of our costs and expenses, which we maynot be able to fully pass on to our clients, which could adversely affect our operating margins and operating income. Our business, results of operations and financial condition may be adversely affected by fluctuations in currency exchange rates (most notably between theU.S. dollar and the Argentine peso). We conduct a substantial portion of our operations outside the United States, and our businesses may be impacted by significant fluctuations inforeign currency exchange rates. Our consolidated financial statements and those of most of our subsidiaries are presented in U.S. dollars, whereas some of oursubsidiaries' operations are performed in local currencies. Therefore, the resulting exchange differences arising from the translation to our presentationcurrency are recognized in the finance gain or expense item or as a separate component of equity depending on the functional currency for each subsidiary.Fluctuations in exchange rates relative to the U.S. dollar could impair the comparability of our results from period to period and could have a materialadverse effect on our results of operations and financial condition. In addition, our results of operations and financial condition are particularly sensitive to changes in the Argentine peso, Mexican peso andColombian peso/U.S. dollar exchange rates because a significant part of our operations are conducted in these countries where our costs are incurred, for themost-part, in Argentine pesos, Mexican pesos and Colombian pesos, while the substantial portion of our revenues generated outside of these countries are inU.S. dollars. Consequently, appreciation of the U.S. dollar relative to the Argentine peso, Mexican peso and Colombian peso, to the extent not offset byinflation in these countries, could result in favorable variations in our operating margins and, conversely, depreciation of the U.S. dollar relative to theArgentine peso, Mexican peso and Colombian peso could impact our operating margins negatively. In recent years, the Argentine peso has suffered significant devaluations against the U.S. dollar and has continued to devaluate against the U.S.dollar. As a result of this economic instability, Argentina's foreign debt rating has been downgraded on multiple occasions based upon concerns regardingeconomic conditions and rising fears of increased inflationary pressures. This uncertainty may also adversely impact Argentina's ability to attract capital. The increasing level of inflation in Argentina has generated pressure for further depreciation of the Argentine peso. After several years of relativelymoderate variations in the nominal exchange, the Argentine peso depreciated against the U.S. dollar by 31.2% in 2014, 52.1% in 2015, 21.9% in 2016,18.4% in 2017 and 102.2% in 2018, based on the official exchange rates published by the Argentine Central Bank. Due to several factors, including but notlimited to the raising of the interest rate by the U.S. Federal Reserve, the inability of the Argentine government to perform structural changes and reduce thefiscal deficit, the Argentine government’s increasing need for international financing, the increase of the Argentine government’s inflation goals for 2018, ahistorical drought that affected the crops production (main export of Argentina), and the Turkish crisis, during 2018 the Argentine Peso suffered depreciationof 102.2%. This sharp depreciation again fostered inflation and created strong volatility in the U.S. dollar exchange rate that gave rise to concerns aboutfurther depreciations of the Argentine peso, the control of the inflation levels, and the potential for a new financial crisis. 23 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. The significant restrictions on the purchase of foreign currency beginning in late 2011 gave rise to the development of an implied rate of exchange,as reflected in the quotations of Argentine securities that trade in foreign markets, compared to the corresponding quotations in the local markets inArgentine pesos. See "— Item 4.B Business Overview — Regulatory Overview — Foreign Exchange Controls — Argentina." Almost all foreign exchangerestrictions have been lifted since December 2015 and, as a result, the gap between the official rate and the implied rate derived from securities transactionshas substantially decreased compared to the previous years. However, the implied rate of exchange may increase or decrease in the future. We cannot predictfuture fluctuations in the Argentine peso/U.S. dollar exchange rate. Because a significant part of our operations are located in Argentina, large variations inthe comparative value of the Argentine peso and the U.S. dollar may adversely affect our business. Despite the positive effects of the depreciation of the Argentine peso on the competitiveness of certain sectors of the Argentine economy, includingour business, it has also had a negative impact on the financial condition of many Argentine businesses and individuals. The devaluation of the Argentinepeso has had a negative impact on the ability of certain Argentine businesses to honor their foreign currency-denominated debt, and has also led to very highinflation initially and significantly reduced real wages. The devaluation has also negatively impacted businesses whose success is dependent on domesticmarket demand, and adversely affected the Argentine government's ability to honor its foreign debt obligations. If the Argentine peso is significantlydevalued, the Argentine economy and our business could be adversely affected. A significant appreciation of the Argentine peso against the U.S. dollar could also adversely affect the Argentine economy as well as our business.Our results of operations are sensitive to changes in the Argentine peso/U.S. dollar exchange rate because a significant portion of our operations areconducted in Argentina where our costs are incurred, for the most-part, in Argentine pesos. In the short term, a significant appreciation of the Argentine pesoagainst the U.S. dollar would adversely affect exports and the desire of foreign companies to purchase services from Argentina. Our business is dependent to acertain extent on maintaining our labor and other costs competitive with those of companies located in other regions around the world from whichtechnology and IT services may be purchased by clients in the United States and Europe. We periodically evaluate the need for hedging strategies with ourboard of directors, including the use of such instruments to mitigate the effect of foreign exchange rate fluctuations. During the years ended December 31,2018 and 2017, our Argentine operating subsidiaries, Sistemas Globales S.A. and IAFH Global S.A., entered into foreign exchange contracts for the purposeof hedging the risk of exposure to fluctuations in the Argentine peso against the U.S. dollar. If we do not hedge such exposure or we do not do so effectively,an appreciation of the Argentine peso against the U.S. dollar may raise our costs, which would increase the prices of our services to our customers, which, inturn, could adversely affect our business, financial condition and results of operations. We face the risk of political and economic crises, instability, terrorism, civil strife, expropriation and other risks of doing business in Latin America, whichcould adversely affect our business, financial condition and results of operations. We conduct our operations primarily in Latin America. Economic and political developments in Latin America, including future economic changesor crises (such as inflation, currency devaluation or recession), government deadlock, political instability, terrorism, civil strife, changes in laws andregulations, restrictions on the repatriation of dividends or profits, expropriation or nationalization of property, restrictions on currency convertibility,volatility of the foreign exchange market and exchange controls could impact our operations or the market value of our common shares and have a materialadverse effect on our business, financial condition and results of operations. Argentina Government intervention in the Argentine economy could adversely affect the economy and our results of operations or financial condition. During recent years, the Argentine government has frequently intervened in the Argentine economy, including through the implementation ofexpropriation policies or nationalizations. 24 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. For example, in April 2012, the Argentine government provided for the nationalization of YPF S.A., the main Argentine oil company. In February2014, the Argentine government and Repsol, from whom YPF was expropriated, announced that they had reached an agreement on the terms of thecompensation payable to Repsol for the expropriation of the YPF shares, which settled the claim filed by Repsol with International Centre for Settlement ofInvestment Disputes (the "ICSID"). Such compensation amounted to US$5 billion, payable in the form of Argentine sovereign bonds with various maturities. There are other examples of government intervention. In December 2012 and August 2013, the Argentine Congress established new regulationsrelating to domestic capital markets. Such regulations generally provided for increased intervention in the capital markets by the government, authorizing,for example, the Argentine Securities Commission (Comisión Nacional de Valores or "CNV") to appoint observers with the ability to veto the decisions ofthe board of directors of companies admitted to the public offering regime in Argentina under certain circumstances and suspend the board of directors for aperiod of up to 180 days. On May 9, 2018, however, the Argentine Congress passed the Productive Financing Law No. 27,440, which reformed, amongothers, the Capital Markets Law No. 26,831 abrogating this power granted to the CNV and generally modernizing the entire regulatory framework applicableto the Argentine capital market, by incorporating current international practices to contribute to its development. Expropriations and other interventions by the Argentine government such as the one relating to YPF can have an adverse impact on the level offoreign investment in Argentina, the access of Argentine companies to the international capital markets and Argentina's commercial and diplomatic relationswith other countries and, consequently, could adversely affect our business, financial condition and results of operations. The continuity of the Macri administration and of the current economic and political environment of Argentina is uncertain. Argentine presidential, congressional, municipal and state government elections were held in October 2015. Presidential elections were won by theopposing political party, led by Mauricio Macri. The president of Argentina and the Argentine Congress each have considerable power to determinegovernmental policies and actions that relate to the Argentine economy and, consequently, could affect our results of operations or financial condition. Thecurrent administration, in office since December 10, 2015, has announced and adopted several significant economic and policy reforms, including thefollowing: •Foreign Exchange Reforms. The current Argentine administration eliminated all foreign exchange restrictions, including certain currencycontrols, which were imposed by the previous administration. However, due to the foreign exchange crisis, soaring inflation and plummetingeconomic activity during the first half of 2018, on November 8, 2018 the Argentine Central Bank issued Communication “A” 6595, imposingon financial entities a minimum cash requirement equal to 23% up to 29 days; 17% between 30 and 59 days; 11% between 60 and 89 days; 5%between 90 and 179 days; 2% between 180 and 365 days; and 0% for more than 365 days on obligations with international financial facilities.However, Communication “A” 6595 was repealed on January 1, 2019. In addition, effective as of October 1, 2018 until the end of 2018, theArgentine Central Bank defined foreign exchange intervention and non-intervention zones for the U.S. dollar exchange rate at 34 Argentinepesos per U.S. dollar in the lower bound and 44 Argentine pesos per U.S. dollar in the upper bound. Such rates are adjusted daily; provided thatbeyond the upper bound, the Argentine Central Bank may sell foreign currency for a daily amount of up to US$50 million, and beyond thelower bound, the Argentine Central Bank may increase the monetary base backed with the increase of the federal reserves. As of the date of thisannual report, the non-intervention zones were fixed at 39.989 Argentine pesos per U.S. dollar in the lower bound and 50.456 Argentine pesosper U.S. dollar in the upper bound. See "Item 4.B — Business overview — Regulatory Overview — Foreign Exchange Controls — Argentina". •Foreign Trade Reforms. The current Argentine administration eliminated or reduced export duties on several agricultural products andeliminated export duties on most industrial and mining products. With respect to payments for imports of goods and services, the Macriadministration announced the elimination of limitations on access to the Foreign Exchange Market for existing debts incurred in connectionwith imports of goods and services as of April 22, 2016. On January 2, 2017, the federal government enacted a further reduction of the exportduties rate set for soybean and soybean products, setting a monthly 0.5% cut on the export duties rate beginning on January 2018 untilDecember 2019. In regards to export duties, on December 4, 2018, the Argentine administration imposed duties on the exportation of services(and not only goods) and allowed the Executive Power to impose export duties of up to 30% until December 31, 2020, with a maximum rate of12% for services and goods that were not subject to export duties before September 2, 2018. On January 2, 2019, a new export duty was appliedon exports of services at a rate of 12% with a maximum limit of 4 Argentine pesos per U.S. dollar of the amount arising from the invoice orequivalent document. 25 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. •Financial Policy. The current Argentine administration has settled the majority of outstanding claims with holdout creditors and has issuedsovereign bonds in the international capital markets. Although the size of the claims involved has decreased significantly, litigation initiatedby bondholders that have not accepted Argentina’s settlement offer continues in several jurisdictions. See "—Argentina's ability to obtainfinancing from international markets may be limited, which may in turn impair its ability to implement reforms and public policies and fostereconomic growth and could impact the ability of Argentine companies to obtain financing outside of Argentina." •Fiscal policy. The current Argentine administration took steps to anchor fiscal accounts, reduce the primary fiscal deficit, eliminate subsidies,reorganize certain expenditures and generate increased revenue through a tax amnesty program. The fiscal deficit for 2017 was approximately3.9% of GDP, 0.3% lower than expected. Likewise, the fiscal deficit for 2018 was approximately 2.4% of GDP, 0.3% lower than expected.Reducing fiscal deficit is one of the most important objectives for the administration in the coming years. Due to the foreign exchange crisis inthe second half of 2018, the Argentine government implemented a series of measures aimed at reducing the fiscal deficit for the following years,including the suspension of public infrastructure works, the depreciation of the Argentine peso, the re-imposition of export duties, the request ofa stand-by loan agreement with the International Monetary Fund (“IMF”) and the elimination of the Supportive Federal Fund (by which theFederal Government distributed 30% of the proceeds of the export duties on soybean and soybean products to the provinces andmunicipalities), among other measures. The Argentine government targets a primary fiscal deficit of 0% of the GDP for 2019 and a primary fiscalsurplus of 1% of the GDP for 2020. •Correction of monetary imbalances. The Argentine administration has adopted an inflation targeting regime in parallel with the floatingexchange rate regime and set inflation targets for the years 2016, 2017, 2018 and 2019. The Argentine Central Bank has increased stabilizationefforts to reduce excess monetary imbalances and raised peso interest rates to offset inflationary pressure. However, the goals for 2016, 2017 and2018 have not been met, despite the increase on the inflation target ranges for 2018 (from between 8% and 12%, to 27%) and 2019 (frombetween 3.5% and 6.5%, to 17%) announced by the Argentine Central Bank in June, 2018. The inflation for 2017 rose to 24.8%, and for 2018,fostered by a depreciation of 102.2% of the Argentine peso to the U.S. dollar, rose to 47.6%. The official estimation of inflation for 2019 is 29%,while private sources predict an inflation of 35% for the same period. Since October 1, 2018, in addition to the creation of the foreign exchangeintervention and non-intervention zones, the Argentine Central Bank adopted a policy of zero currency issuance. Therefore, the ArgentineCentral Bank recalculated the inflation targets for 2019 and 2020 to 27.8% and 19.6%, respectively. •Corporate Criminal Liability Law (Ley de Responsabilidad Penal Empresaria). On November 8, 2017, the Argentine Congress passed Law No.27,401 which provides for the criminal liability of corporate entities upon their execution of certain dishonest activities, directly or indirectly,with their intervention or on their behalf, interest or benefit. Companies found liable for committing crimes under the terms of this law may besubject to various sanctions, including, among others, fines ranging from two to five times the ''undue'' benefit that was obtained or that couldhave been obtained through the actions incurred in breach of this regulation. Additionally, Companies found liable may forfeit assets obtainedthrough the illegal actions. The law became effective on March 1, 2018. •Amendment to Labor Risks Law. On February 15, 2017, the Argentine Congress passed Law 27,348, which amends and complements LaborRisks Law No. 24,557 (the "Labor Risks Law"), and aims to reduce litigation arising from accidents at work. Under the new regime, prior tofiling a lawsuit resulting from work-related accidents, affected workers must go through jurisdictional medical commissions, in order to assessthe impact of any accident and to assign benefits provided for under the Labor Risks Law. •Social Security Reform Law. On December 28, 2017, the Argentine Congress passed Argentine Law No. 27,426, which provides formodifications to the method of calculating social security benefits. In most cases, minimum benefits will equal 82% of the minimum wage. Thelaw also grants employees the option to maintain their employment status until the age of 70, though employees may choose to retire earlier.Male employees may retire at 65 and female employees may retire at 60. 26 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. •Labor Reform Draft Bill. The Labor Draft Bill (File No. 1381/2018), which provides a regime of regularization of unregistered employment, iscurrently being discussed in two commissions of the Senate: (i) Labor and Social Security, and (ii) Budged and Finance. This Labor Draft Billestablishes an opportunity to register employment relationships in the private sector and to rectify the actual remuneration or hiring date of theemployment, with the exception of those related to domestic service, and is currently pending review by both chambers. The draft bill aims toimprove competitiveness and efficiency of various sectors, increase employment, attract investment and reduce labor costs. •Tax Regime. On December 29, 2017, the Argentine Congress passed Law No. 27,430. The law provides for a series of tax and social securityreforms intended to eliminate certain existing complexities and inefficiencies of the Argentine tax regime, reduce tax evasion, increase thecoverage of income tax as applied to individuals and encourage investment while sustaining the Argentine administration's medium- and long-term efforts aimed at restoring fiscal balance. The reforms introduced with this law are part of the agenda of the Argentine administration toimprove the competitiveness of the Argentine economy (including the reduction of the fiscal deficit), to increase employment and diminishpoverty on a sustainable basis. Decree No. 279/2018, published in the Official Gazette on April 7, 2018, regulated the income tax treatmentapplicable to non-Argentine residents, who receive income or obtain capital gains arising from the investment in financial assets in Argentina.The reform did not substantially modify the tax treatment set forth in Law No. 26,893 of gains recognized by nonresidents on the sale of shares,quotas or other equity participations in Argentine companies as well as “other securities” of Argentine residents. However, it shifted the taxliability from nonresident purchasers to nonresident sellers. Beginning January 1, 2018, when a nonresident seller sells shares or quotas in anArgentine company to a nonresident buyer, the seller must pay Argentine income tax on the capital gains through its legal representative inArgentina. In April 2018, the General Resolution No. 4,227 of the AFIP established the payment mechanism for the Argentine income tax oncapital gains. Furthermore, Decree No. 813/2018, published in the Official Gazette on September 11, 2018, introduced several amendments toRegulatory Decree No. 692/1998, which regulates the Argentine Value Added Tax Law. The main amendments were made in relation to: (i)substitute taxpayers for the payment of the Value Added Tax corresponding to individuals or entities domiciled or resident abroad who renderservices within Argentina subject to the tax; (ii) digital services provided by individuals or entities domiciled or resident abroad when theeffective use or exploitation of such services is carried out in Argentina; (iii) the mechanism for the refund of tax credits generated in thepurchase, construction, manufacture, processing or importation of capital assets; and (iv) the mechanism for the recovery of accumulated taxbalance by public service companies. Decree No. 1170, published in the Official Gazette on December 27, 2018, amended the regulatory decreeof the Income Tax Law in accordance with the amendments introduced by Law No. 27,430. In addition, pursuant to the amendment to thepersonal assets tax law approved by Law No. 27,480, enacted on December 5, 2018, the minimum taxable amount for fiscal year 2019 isArgentine pesos 2 million. For taxpayers domiciled in Argentina, the tax rate would still be 0.25% if the aggregate amount of declared assets isbetween Argentine pesos 2 million and Argentine peso 5 million, but it would increase to 0.5% of the excess of Argentine pesos 5 million if thedeclared assets are of between Argentine pesos 5 and Argentine pesos 20 million, and to 0.75% of the excess of Argentine pesos 20 million ifthe value of declared assets is higher than Argentine pesos 20 million. For individuals and entities not domiciled in Argentina, the tax ratewould be maintained at 0.25%, irrespective of the value of the taxable assets. •Capital Markets Reform. On May 9, 2018, the Argentine Congress passed the Productive Financing Law No. 27,440, which reformed, amongothers, the Capital Markets Law No. 26,831, generally modernizing the entire regulatory framework applicable to the Argentine capital marketby incorporating current international practices to contribute to its development. The CNV has also issued several regulations in line with suchreform. •Antitrust Law. On May 24, 2018, the Argentine Congress passed Law No. 27,442, which introduces several changes to the former Antitrust LawNo. 25,156, as follows: (i) it envisages the creation of a National Competition Authority, as opposed to having a “dual” authority i.e. AntitrustCommission and Secretary of Trade; (ii) in terms of merger control, it increases the volume of business’ threshold and provides for the adoptionof a suspensory regime, by means of which the parties to a reportable transaction will not be able to close it until they receive authorization fromthe authority; and (iii) in terms of anticompetitive conducts, it increases the fines for sanctions substantially and presumes that there are certainconducts that are deemed to be absolutely restrictive to competition and, therefore, illegal per se (i.e. “hard core cartels”). The suspensoryregime shall enter into force one year from the effective creation of the National Competition Authority and, in the meantime, the current non-suspensory regime continues to apply. This entity has not been created yet. 27 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Some of the measures proposed by the current Argentine administration have generated political and social opposition. In addition, political partiesopposed to the government retained a majority of the seats in the Argentine Congress, which may in turn prevent the government from adopting suchmeasures as proposed. Moreover, Argentine presidential, congressional, municipal and state government elections will be held in October, 2019. We can offer noassurances or predictions on the continuity of the Macri administration or that the policies that may be implemented by the Argentine government in officewill not adversely affect our business, results of operations or financial condition. Our results of operations may be adversely affected by high and possibly increasing inflation in Argentina. Inflation has materially undermined the Argentine economy and the government's ability to create conditions that would permit stable growth. Highinflation may also undermine Argentina's foreign competitiveness in international markets and adversely affect economic activity and employment, as wellas our business and results of operation. In particular, the margin on our services is impacted by the increase in our costs in providing those services, which isinfluenced by wage inflation in Argentina, as well as other factors. The Argentine National Institute of Statistics and Census (Instituto Nacional de Estadística y Censos) (“INDEC”) implemented certainmethodological reforms and adjusted certain indexes based on these reforms. The lack of accuracy in the INDEC's indexes could result in a further decrease inconfidence in Argentina's economy, which could, in turn, have an adverse effect on our ability to access the international credit markets at market rates tofinance our operations and growth. See "The credibility of several Argentine economic indexes has been called into question, which may lead to a lack ofconfidence in the Argentine economy and may in turn limit our ability to access the credit and capital markets." According to data published by the INDEC, the CPI increased 21.7% in 2014 and 11.9% as of October 2015 (for the first nine months of year 2015).In November 2015, the INDEC suspended the publication of the CPI. According to the publicly available information based on data from the Province of SanLuis, the CPI grew by 31.6% in 2015 and 31.4% in 2016. According to the publicly available information based on data from the City of Buenos Aires, theCPI grew by 29.6% in 2015 and 41.0% in 2016. After implementing certain methodological reforms and adjusting certain macroeconomic statistics based onthese reforms, in June 2016 the INDEC resumed its publication of the CPI. According to the INDEC, Argentina's rate of inflation between May and December2016 was 16.9%, in the year 2017 was 24.8% and in the year 2018 was 47.6% based on the CPI. The official estimation of CPI increase for 2019 is 29%,while private sources predict a CPI increase of 35% for the same period. Recent factors, including but not limited to the raising of the interest rate by the U.S. Federal Reserve, the inability of the Argentine government toperform structural changes and reduce the fiscal deficit, the Argentine government’s increasing need for international financing, the increase of the Argentinegovernment’s inflation goals for 2018, a historical drought that affected crop production (main export of Argentina), and the Turkish crisis, provoked a sharpdepreciation of 102.2% of the Argentine Peso during 2018. This sharp depreciation has fostered inflation in 2018 and created strong volatility in the U.S.dollar exchange rate that gave rise to concerns about further depreciation of the Argentine peso, the control of the inflation levels, and the possibility of anew financial crisis. Uncertainty surrounding future inflation rates may have an adverse impact for Argentina in the long-term credit market. In order tocontrol the foreign exchange crisis the Argentine government adopted a series of measures, including the execution of a financing agreement with the IMFfor US$57.1 billion, and the Argentine Central Bank defined foreign exchange intervention and non-intervention zones for the U.S. dollar exchange rate andincreased the pesos interest rates. As of the date of this annual report, these and other measures adopted by the Argentine government and the ArgentineCentral Bank caused a deepening recession (the IMF projected a GDP decrease of 2.6% for 2018 and 1.7% for 2019), increasing unemployment and mediumand small companies failures, while high inflation and foreign exchange instability continues. In addition, in October 2019, Argentina will hold presidentialelections, and there is a large amount of uncertainty and speculation on the re-election of Mauricio Macri or his potential successor that also contributes tothe economic instability. 28 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Inflation rates could continue escalating, and there is uncertainty regarding the effects that the measures taken, or that may be taken, by theArgentine government to control inflation could have in the medium term. If inflation remains high or continues to increase, Argentina's economy may benegatively impacted and our results of operations could be materially affected. The Executive Board of the International Monetary Fund has approved a three-year Stand-By Arrangement for Argentina amounting to US$57.1 billion,following an agreement on an economic plan to be implemented by the Argentine authorities; however, there can be no assurance that such plan will meetits objectives in supporting the Argentine government’s economic priorities, nor are we able to predict what the future consequences will be for theArgentine economy in general or our business in particular. The Argentine government requested IMF financial support in late May 2018 to help strengthen the Argentine economy in light of the recentfinancial market turbulence. In early June 2018, Argentina and IMF staff reached an agreement on an economic plan that could be supported by IMFfinancing in the form of a Stand-By Arrangement for $50.0 billion, and on June 20, 2018, the IMF’s Executive Board approved such plan and the consequentthree-year Stand-By Arrangement, and on June 21, 2018, the IMF made the first disbursement of US$15 billion. On September 2018 the Argentine government negotiated an extension to the Stand-By Arrangement from $50.0 billion to $57.1 billion. By the end of October 2018, the IMF made the second disbursement of $5.7 billion and by the end of December made a third disbursement of $7.6billion. It is expected that the IMF would make additional disbursements in 2019 for US$22.8 billion. The purpose of the Stand-By Arrangement is to support the Argentine government’s economic priorities, which include strengthening the Argentineeconomy and protecting the living standards of the Argentine people. The Argentine government has stated that it intends to take measures to accelerate the pace at which the federal government’s fiscal deficit isreduced. This measure is expected to ultimately lessen the government’s financing needs and put public debt on a downward path. In addition, the Argentine government’s economic plan intended to put in place measures to offer opportunity and support to the less well-offmembers of Argentine society. The authorities have committed to ensuring that spending on social assistance, as a share of gross domestic product, will notdecline during the next three years. As of the date of this annual report, we cannot guarantee that the financing package will be sufficient to enable the Argentine government to achievethe goals of its economic plan, nor are we able to predict what the future consequences will be for the Argentine economy in general or our business inparticular. The credibility of several Argentine economic indexes has been called into question, which may lead to a lack of confidence in the Argentine economy andmay in turn limit our ability to access the credit and capital markets. Between 2007 and 2014, the inflation index has been extensively discussed in the Argentine economy. The intervention of the former Argentinegovernment in the INDEC in 2007 and the change in the way the inflation index was measured have resulted in disagreements between the former Argentinegovernment and private consultants as to the actual annual inflation rate. The former Argentine government imposed fines on private consultants reportinginflation rates higher than the INDEC data. As a result, private consultants typically shared their data with Argentine lawmakers who opposed the previousgovernment, who released such data from time to time. This resulted in a decrease in confidence in Argentina's economy. In February 2014, the INDEC released a new inflation index, known as National Urban Consumer Price Index (Índice de Precios al ConsumidorNacional Urbano) that measured the prices of goods across the country and replaces the previous index that only measured inflation in the urban sprawl ofthe City of Buenos Aires. Pursuant to these calculations, such new consumer price index rose 21.7% in 2014 and 11.9% during the ten-month period endedOctober 31, 2015. Even though the new methodology brought inflation statistics closer to those estimated by private sources, material differences betweenrecent official inflation data and private estimates remained during 2015. 29 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. However, during December 2015 and January 2016, the new administration declared the national statistical system and the INDEC to be in a state ofadministrative emergency through December 31, 2016. Accordingly, the new head of the INDEC announced the temporary suspension of the publication ofofficial data of prices, poverty, unemployment and GDP until the completion of a full review of INDEC's policies. Shortly thereafter, the new administrationreleased an alternative CPI index based on data from the City of Buenos Aires and the Province of San Luis. The INDEC resumed its publication of the CPI inJune 2016, after implementing certain methodological reforms and adjusting certain macroeconomic statistics on the basis of those reforms. As aconsequence of these reforms, on November 9, 2016, the IMF lifted its censure on Argentina, noting that Argentina had resumed the publication of data in amanner consistent with its obligations under the Articles of Agreement with the IMF. Still, uncertainty remains as to whether official data and measurementprocedures sufficiently reflect inflation in the country, and what effect these reforms will have on the Argentine economy. In March 2018, the Argentinegovernment announced a draft bill to provide INDEC with total autonomy and to transform it into an entity that will facilitate greater statisticalindependence of the main macroeconomic indicators. As of the date of this annual report, the impact that these measures and any future measures taken by the current administration with respect to theINDEC will have on the Argentine economy and investors' perception of the country cannot be predicted. Argentina's ability to obtain financing from international markets may be limited, which may in turn impair its ability to implement reforms and publicpolicies and foster economic growth and could impact the ability of Argentine companies to obtain financing outside of Argentina. Argentina's 2001 sovereign default and its failure to fully restructure its sovereign debt and negotiate with the holdout creditors has limited and maycontinue to limit Argentina's ability to access international financing. In 2005, Argentina completed the restructuring of a substantial portion of itsindebtedness and settled all of its debt with the IMF. Additionally, in June 2010, Argentina completed the restructuring of a significant portion of thedefaulted bonds that were not exchanged in the 2005 restructuring. As a result of debt exchanges carried out in 2005 and 2010, Argentina restructuredapproximately 93% of its defaulted debt that was eligible for restructuring. However, holdout bondholders that declined to participate in the restructuring,filed lawsuits against Argentina in several countries, including the United States. Since late 2012, rulings from courts in the United States favorable toholdout bondholders aggravated investors' concerns regarding investment in the country. In November 2012, the United States District Court for the Southern District of New York in re: "NML Capital, Ltd. v. Republic of Argentina",ratified and amended the injunction order issued in February 2012, which held that Argentina violated the pari passu clause with respect to the bondholdersthat had not participated in the sovereign debt restructuring in 2005 and 2010. Pursuant to such ruling, Argentina was required to pay 100% of the amountsdue to the plaintiffs, simultaneously with the payment of the amounts due on the next maturity date of the bonds to the bondholders who participated in thedebt restructuring. In June 2014, the U.S. Supreme Court denied Argentina's petition for a writ of certiorari of the U.S. Second Circuit Court of Appeals'ruling affirming the U.S. District Court's judgment. Later that month, the U.S. District Court ruled that funds deposited with the Bank of New York Mellon,the trustee which manages bond payments for Argentina's bonds issued in the 2005 and 2010 debt restructuring, should not be delivered to the holders ofrestructured debt in the absence of a prior agreement with the holdout bondholders (the plaintiffs in this case). In June 2015, the U.S. District Court grantedpartial summary judgment to a group of "me-too" plaintiffs in 36 separate lawsuits, finding that, consistent with the previous ruling of such court, Argentinaviolated the pari passu clause in the bonds issued to the "me-too" bondholders. In February 2016, the current Argentine administration entered into settlement agreements with certain holdout bondholders to settle these claims,which were subject to the approval of the Argentine Congress and the lifting of the pari passu injunctions. In March 2016, after the U.S. District Court agreedto vacate the pari passu injunctions subject to certain conditions, the Argentine Congress ratified these settlement agreements through Law No. 27,249 andrepealed the provisions of the so called Lock Law No. 26,017 and the Sovereign Payment Law No. 26,984, which prohibited Argentina from offering holdoutbondholders more favorable terms than those offered in the 2005 and 2010 debt restructuring. The Argentine government has reached settlement agreementswith holders of a significant portion of the defaulted bonds and has repaid the majority of the holdout creditors with the proceeds of a US$16.5 billioninternational offering of 3-year, 5-year, 10-year and 30-year bonds on April 22, 2016. Although the size of the claims involved has decreased significantly,litigation initiated by bondholders that have not accepted Argentina's settlement offer continues in several jurisdictions. 30 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Additionally, foreign shareholders of several Argentine companies have filed claims with the ICSID alleging that the emergency measures adoptedby the Argentine government since the crisis in 2001 and 2002 differ from the just and equal treatment standards set forth in several bilateral investmenttreaties to which Argentina is a party. ICSID has ruled against Argentina with respect to many of these claims. Litigation involving holdout creditors, claims with ICSID and other claims against the Argentine Government, resulted and may result in materialjudgments against the government, lead to attachments of or injunctions relating to Argentina's assets, or could cause Argentina to default under its otherobligations, and such events may prevent Argentina from obtaining favorable terms or interest rates when accessing international capital markets or fromaccessing international financing at all. Our ability to obtain U.S. dollar-denominated financing has been adversely impacted by these factors. During 2014,2015, 2016, 2017 and 2018, it became increasingly difficult for Argentine companies to obtain financing in U.S. dollars, and loans in the local currencycarried significantly higher interest rates. The termination of the injunctions issued by the United States courts preventing bondholders from receiving theirinterest payments on the bonds issued pursuant to the 2005 and 2010 exchange offers, and the related subsequent events, have paved the way for theArgentine Government to regain access to the international capital markets. Nonetheless, Argentina's ability to obtain international or multilateral privatefinancing or direct foreign investment may be limited, which may in turn impair its ability to implement reforms and public policies to foster economicgrowth. In addition, Argentina's ongoing litigation with the remaining holdout creditors as well as ICSID and other claims against the Argentine Government,or any future defaults of its financial obligations, may prevent us from accessing the international capital markets or cause the terms of any such transactionsless favorable than those provided to companies in other countries in the region, potentially impacting our financial condition. In addition, other endogenous and exogenous factors are limiting the access of emerging countries and particularly Argentina to internationalfinancing. See "—Our business, results of operations and financial condition may be adversely affected by fluctuations in currency exchange rates (mostnotably between the U.S. dollar and the Argentine peso)” and “—Our results of operations may be adversely affected by high and possibly increasinginflation in Argentina.” Lack of access to international or domestic financial markets could affect the projected capital expenditures for our operations in Argentina, which,in turn, may have an adverse effect on the results of our operations and on the market price of our common shares. A continued decline in the global prices of Argentina's main commodity exports could have an adverse effect on Argentina's economic growth. High commodity prices have contributed significantly to the increase in Argentine exports since 2002 as well as in governmental revenues fromexport taxes. However, relying on the export of certain commodities, such as soy, has made the Argentine economy more vulnerable to fluctuations in theprices of commodities. Since the beginning of 2015, international commodity prices of Argentina's primary commodity exports have declined, which has hadan adverse effect on Argentina's economic growth. If international commodity prices continue to decline, the Argentine economy could be adversely affected.In addition, adverse weather conditions can affect the production of commodities by the agricultural sector, which account for a significant portion ofArgentina's export revenues. These circumstances would have a negative impact on the levels of government revenues, available foreign exchange and the government's abilityto service its sovereign debt, and could either generate recessionary or inflationary pressures, depending on the government's reaction. Either of these resultswould adversely impact Argentina's economic growth and, therefore, our financial condition and results of operations. Argentine exchange controls and restrictions on capital inflows and outflows have limited, and may continue to limit, the availability of internationalcredit and access to capital markets, which could have a material adverse effect on our financial condition and business. 31 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Since 2001, Argentina imposed exchange controls and transfer restrictions substantially limiting the ability of enterprises to retain or obtain foreigncurrency or make payments or distributions abroad. See "Information on the Company — Business Overview — Foreign Exchange Controls". Notwithstanding the measures adopted by the current Argentine administration since December 2015, which lifted all exchange and capital controls,the Argentine government may impose or increase exchange controls or transfer restrictions in the future in response to capital flight or a significantdepreciation of the Argentine peso. Additional controls could have a negative effect on the ability of Argentine entities to access the international credit orcapital markets, the Argentine economy and our financial condition and business. The Argentine government may order salary increases to be paid to employees in the private sector, which could increase our operating costs andadversely affect our results of operations. In the past, the Argentine government has passed laws, regulations and decrees requiring companies in the private sector to increase wages andprovide specified benefits to employees, and may do so again in the future. Argentine employers, both in the public and private sectors, have experiencedsignificant pressure from their employees and labor organizations to increase wages and to provide additional employee benefits. Due to the high levels ofinflation, employees and labor organizations are demanding significant wage increases. The Argentine government increased the minimum salary to 3,600Argentine pesos in January 2014, to 4,400 Argentine pesos in September 2014, to 4,716 Argentine pesos in January 2015, to 5,588 Argentine pesos inAugust 2015, to 6,060 Argentine pesos in January 2016, to 6,810 Argentine pesos in June 2016, to 7,560 Argentine pesos in September 2016, to 8,860Argentine pesos in July 2017, to 10,700 Argentine pesos in September 2018, and to 11,300 Argentine Pesos in December 2018. The Argentine governmentconfirmed that the minimum salary will be increased to 12,500 Argentine pesos by June 2019. Recently, the INDEC published data regarding the evolutionof salaries in the private and public sectors, which reflects approximately 26.7% and 25.26% salary increase in the private and public sectors, respectively, forthe period from January 2017 through December 2017, and approximately 28.7% salary increase in both private and public sectors, from the period fromJanuary 2018 to November 2018. Due to high levels of inflation and full employment in the high tech industry, we expect to raise salaries in line with the market. During the yearended December 31, 2018, labor unions agreed with employers´ associations on annual salary increases between 30% and 40%. In addition, on November 12,2018, the Argentine government issued a decree imposing the payment of an extraordinary non-remuneratory bonus of Argentine pesos 5,000 to all workersin the private sector, payable in two installments in December 2018 and February 2019. If future salary increases in the Argentine peso exceed the pace of thedevaluation of the Argentine peso, such salary increases could have a material and adverse effect on our expenses and business, results of operations andfinancial condition and, thus, on the trading prices for our common shares. Our operating cash flows may be adversely affected if there is a delay in obtaining reimbursement of value-added tax credits from AFIP. During the years ended December 31, 2018 and 2017, our Argentine operating subsidiary IAFH Global S.A. recognized an aggregate of $3.8 millionin value-added tax credits. These tax credits may be monetized by way of cash reimbursement from AFIP. Obtaining this cash reimbursement requiressubmission of a written request to AFIP, which is subject to its approval. In the event that AFIP delays its approval of the request for reimbursement of thesevalue-added tax credits, our ability to monetize the value of those credits would be delayed, which could adversely affect our cash flows. Transactions with bonds acquired as proceeds from the capitalization of our Argentine subsidiaries increase our exposure to fluctuations in the value ofthe Argentine peso, which, in turn, could have an adverse effect on our operations and the market price of our common shares. The imposition in the futureof regulations on proceeds collected outside Argentina for capitalization of our Argentine subsidiaries could also have an adverse effect on us. 32 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. During the years ended December 31, 2015 and 2014, our Argentine subsidiaries, through cash received from capital contributions, acquiredArgentine sovereign bonds, including BODEN and Bonos Argentinos ("BONAR"), in the U.S. market denominated in U.S. dollars. After acquiring these bonds and after holding them for a certain period of time, our Argentine subsidiaries sold those bonds in the Argentine market.The fair value of these bonds in the Argentine market (in Argentine pesos) during the years ended December 31, 2015 and 2014 was higher than its quotedprice in the U.S. market (in U.S dollars) converted at the official exchange rate prevailing in Argentina, which is the rate used to convert these transactions inforeign currency into our Argentine subsidiaries' functional currency, thus, as a result, we recognized a gain when remeasuring the fair value of the bonds inArgentine pesos into U.S. dollars at the official exchange rate prevailing in Argentina. During the years ended December 31, 2018, 2017 and 2016, we did not engage in the above described transactions. Although, as of the date of thisannual report, we are not obliged to settle proceeds received from capitalizations abroad through the FX Market, if in the future we decide to make additionalcapital contributions to our Argentine subsidiaries and acquire bonds, we cannot assure you that the quoted price of the BODEN and/or BONAR in Argentinepesos in the Argentine markets will be higher than the quoted price in the U.S. debt markets in U.S. dollars converted at the official exchange rate prevailingin Argentina or that the Argentine government will not require Argentine companies to repatriate such proceeds through the FX Market, or make any otherlegislative, judicial, or administrative changes or interpretations, any of which could have a material adverse effect on our business, results of operations andfinancial condition. The imposition in the future of restrictions on transfers of foreign currency and the repatriation of capital from Argentina may impair our ability to receivedividends and distributions from, and the proceeds of any sale of, our assets in Argentina. Beginning in December 2001, the Argentine government implemented a number of monetary and foreign exchange control measures that includedrestrictions on the free disposition of funds deposited with banks and on the transfer of funds abroad without prior approval by the Argentine Central Bank,which have been lifted. See "Information on the Company — Business Overview — Foreign Exchange Controls". Although the transfer of funds abroad by local companies in order to pay annual dividends only to foreign shareholders does not require formalapproval by the Argentine Central Bank, in the past, the decrease in availability of U.S. dollars in Argentina has led the Argentine government to imposeinformal restrictions on certain local companies and individuals for purchasing foreign currency for the purpose of making payments abroad, such asdividends, capital reductions, and payment for importation of goods and services. Although the current Argentine administration has lifted the foreign exchange restrictions, the imposition of future exchange controls could impairor prevent the conversion of anticipated dividends, distributions, or the proceeds from any sale of equity holdings in Argentina, as the case may be, fromArgentine pesos into U.S. dollars and the remittance of the U.S. dollars abroad. These restrictions and controls could interfere with the ability of our Argentinesubsidiaries to make distributions in U.S. dollars to us and thus our ability to pay dividends in the future. The domestic revenues of our Argentinesubsidiaries (excluding intercompany revenues to other Globant subsidiaries, which are eliminated in consolidation) were $23.8 million in 2018, $13.3million in 2017 and $10.2 million in 2016, representing 4.6%, 3.2% and 3.2% of our annual consolidated revenues, respectively. The Argentine government could adopt restrictive measures again in the future. If that were the case, a foreign shareholder, such as ourselves, may beprevented from converting the Argentine pesos it receives in Argentina into U.S. dollars. If the exchange rate fluctuates significantly during a time when wecannot convert the foreign currency, we may lose some or all of the value of the dividend distribution or sale proceeds. These restrictions and requirements could adversely affect our financial condition and the results of our operations, or the market price of ourcommon shares. 33 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. The imposition or re-imposition in the future of regulations on proceeds from the export of services collected outside of Argentina for services rendered tonon-Argentine residents or of export duties and controls could have an adverse effect on us. In December 30, 2016, by means of Communication "A" 6137 (later replaced by Communication "A" 6244, which became effective as of July 1,2017), the Argentine Central Bank eliminated the requirement to repatriate and exchange funds obtained from the exportation of services into pesos throughthe FX Market. Consequently, we are not required to repatriate or exchange the foreign currency proceeds received from services rendered to non-Argentineresidents outside of Argentina (which are proceeds from our exportations held in off-shore accounts, such as the collections of services fees in U.S. dollars).Additionally, the applicable regulations do not prohibit or regulate the receipt of in-kind payments by an exporter. However, in the past, Argentine law (including Communication "A" 5264 of the Argentine Central Bank, as amended), required Argentine residentsto transfer the foreign currency proceeds received for services rendered to non-Argentine residents into a local account with a domestic financial institutionand to convert those proceeds into Argentine pesos through the FX Market. We cannot assure you that the Argentine government will not in the future require again Argentine residents to convert the foreign currencyproceeds received for services rendered to non-Argentine residents into Argentine pesos through the FX Market, restrict exporters from receiving in-kindpayments, require them to repatriate those payments received through the FX Market, or make any other legislative, judicial, or administrative changes orinterpretations, any of which could have a material adverse effect on our business, results of operations and financial condition. The imposition of duties on export services could adversely affect our results of operations. On December 4, 2018, Argentina approved the budget bill for year 2019 through Law 27,467, which amended the Customs Code to allow for dutiesto be applied to the exportation of services (and not only goods). In addition, the executive branch was allowed to impose export duties of up to 30% untilDecember 31, 2020. However, in case of services and goods that were not subject to export duties before September 2, 2018, the maximum rate is 12%. OnJanuary 2, 2019, the executive branch issued Decree No. 1201/2018, which established an export duty on exportation of services at a rate of 12% with amaximum limit of Argentine pesos (ARS) 4 per each U.S. dollar of the amount arising from the invoice or equivalent document. A service is considered “exported” when it is rendered in Argentina but it is effectively used or exploited off shore. Such utilization or exploitationis effective upon the first utilization or act of disposal of the service by the recipient even when, if appropriate, the latter intends such service forconsumption. If an increase of the current rates for exportation duties was approved or additional duties were imposed on the exportation of services, the results ofour operations could be adversely affected. Changes in Argentine tax laws may adversely affect the results of our operations, financial condition and cash flows. In 2012, the Argentine government terminated its treaties with Spain for the avoidance of double taxation. As a result, the exemption from personalassets tax that was available pursuant to such treaty for equity interests in local companies owned by Spanish residents no longer applies. The new doubletaxation treaty with Spain, which was adopted on December 23, 2013 and applied retroactively from January 1, 2013, does not include a similar exemption.Under the new treaty, the tax applicable on dividends distributed by our Argentine subsidiaries to the Spain Holdco is limited to 10% of the gross amount ofdividends distributed, and income tax withholding on financial interest is limited to 12%. Argentine companies are required to pay the personal assets tax corresponding to Argentine resident individuals, foreign individuals and foreignentities for holding equity interests in such companies as of December 31 of each year. The applicable tax rate is 0.25% and the tax is levied on the equitystated in the latest financial statements. Although the new double taxation treaty with Spain does not include an exemption on such tax, Law No. 27,260,which was enacted by the Argentine government on July 21, 2016, introduced benefits for compliant taxpayers that include an exemption from the personalassets tax until December 31, 2018. 34 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. On December 29, 2017, the Argentine government enacted Law No. 27,430, which reduced the corporate income tax rate to 30% for fiscal yearsbeginning on or after January 1, 2018 and 25% for fiscal years beginning on or after January 1, 2020. The distribution of dividends is now subject to a 7% taxrate for the distribution of dividends related to financial results from fiscal years beginning on or after January 1, 2018 and 13% tax rate for the distribution ofdividends related to financial results from fiscal years beginning on or after January 1, 2020. Exposure to multiple provincial and municipal legislation and regulations could adversely affect our business or results of operations. Argentina is a federal country with 23 provinces and one autonomous city (City of Buenos Aires), each of which, under the Argentine nationalconstitution, has full power to enact legislation concerning taxes and other matters. Likewise, within each province, municipal governments have broadpowers to regulate such matters. Due to the fact that our delivery centers are located in multiple provinces, we are also subject to multiple provincial andmunicipal legislation and regulations. Although we have not experienced any material adverse effects from this, future developments in provincial andmunicipal legislation concerning taxes, provincial regulations or other matters may adversely affect our business or results of operations. Colombia Colombia has experienced several periods of internal security issues that could affect the economy and impact our business, and our results fromoperations. Colombia has suffered from periods of criminal violence over the past four decades, primarily due to the activities of guerrilla groups such as theRevolutionary Armed Forces of Colombia (Fuerzas Armadas Revolucionarias de Colombia) (“FARC”), paramilitary groups and drug cartels and criminalbands known as Bacrim. In regions of the country with limited governmental presence, these groups have exerted influence over the local population andfunded their activities by protecting and rendering services to drug traffickers. In response, the Colombian government has implemented various securitymeasures and has strengthened its military and police forces by creating specialized units. In 2012, the Colombian government began peace negotiationswith FARC. The peace agreement between the Colombian government and the guerrilla group, which was signed in 2016, was subject to a nationalreferendum but was not approved by a majority of the voters. The parties re-negotiated certain aspects of the original agreement and the new agreement wasapproved by Congress in 2016. Pursuant to the peace agreements negotiated between FARC and the Colombian government, FARC occupies five seats in the Colombian Senateand five seats in the Colombian House of Representatives. We cannot predict which policies will be adopted by the Colombian government and whether thepolicies would have a negative impact on the Colombian economy or our business, financial condition and results of operations. Despite efforts by the Colombian government, drug-related crime, guerrilla paramilitary activity and criminal bands continue to exist in Colombia,and allegations have surfaced regarding members of the Colombian congress and other government officials having ties to guerilla and paramilitary groups.Although the Colombian government and the National Liberation Army (“ELN”) have been in talks since February 2017 to end a five-decade war, theColombian government has suspended the negotiations after a series of rebel attacks. On January 17, 2019, a car with explosives burst through the gates at apolice academy in Bogotá resulting in 21 people dead and many injured. The Colombian Defense Minister confirmed that the terrorist attack was perpetratedby the ELN. Any possible escalation in the violence associated with this terrorist attack and/or these activities may have a negative impact on theColombian economy. In addition, given that the peace protocols to be applied in the event of a suspension of peace negotiations were entered into by theprior administration, the current administration has not honored these protocols, on the grounds that these protocols are only binding to the administrationthat agreed to them. This situation could result in escalated violence by the ELN and may have a negative impact on the credibility of the Colombiangovernment which could in turn have a negative impact on the Colombian economy and may adversely affect our business or results of operations inColombia. 35 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Any further downgrade in the credit rating of Colombia could adversely affect the Colombian economy. The outlook of Colombia’s credit rating was changed to negative by Standard & Poor’s Financial Services LLC (“S&P”) and Fitch Ratings (“Fitch”)in 2016 and by Moody’s Corporation (“Moody’s”) in February 2018. In December 2017, S&P downgraded the rating of Colombia’s long-term foreigncurrency sovereign credit ratings on Colombia from “BBB” to “BBB-.” Additionally, on February 22, 2018 Moody’s changed Colombia’s rating outlookfrom stable to negative. Currently, Colombia’s long-term debt denominated in foreign currency is rated “Baa2” by Moody’s, “BBB-” by S&P and “BBB” byFitch. Any further downgrade of Colombia’s credit rating could adversely affect the Colombian economy and our results of operations. We cannot assure asto whether there will be further deterioration of the Colombian economy particularly due to the fiscal deficit and Colombia’s public debt. If the condition ofthe Colombian economy were to deteriorate, we would likely be adversely affected. Any additional taxes resulting from changes to tax regulations or the interpretation thereof in could adversely affect our consolidated results. Colombia underwent tax reforms in 2018, 2016 and 2014. The latest tax reform enacted by the Colombian congress in 2018 introduced substantialchanges to the then-existing tax legal framework. As a result, income tax withholding rates resulting from payments made to foreign entities were increasedby 5% to a general rate of 20%, except for foreign indebtedness exceeding one year, where the applicable income tax withholding remains at 15%. Dividendspaid out of profits that were subject to corporate income tax became subject to a withholding tax of 7.5% (resulting in an increase of 2.5% from the current5%) and dividends paid out of profits that were not subject to corporate income tax became subject to a withholding tax of 33% for 2019, with a progressivereduction of the tax rate by 1% for each upcoming year, until 2020 (in which year the tax rate is stabilized in 30%) plus the foregoing 7.5%, which applies tothe balance after the withholding is applied. The tax reform of 2018 introduced a new equity tax applicable to: (i) Colombian resident individuals (ii) non-resident individuals on their Colombian assets, (iii) non-distributed inheritance of non-residents and (iv) foreign non-resident entities owning assets inColombia different from shares, account receivables and portfolio investments; whose net equity in Colombia as of January 1, 2019 is COP $5,000 million orhigher. The equity tax would be triggered in January 1, 2019, 2020, and 2021 at rate of 1%. We cannot assure you that Colombian tax laws will not change or may be interpreted differently by authorities, and any change could result in theimposition of additional taxes. Additional tax regulations could negatively affect our results of operations and cash flow. In addition, national or local taxingauthorities may not interpret tax regulations in the same way that we do. Differing interpretations could result in future tax litigation and associated costs. The Colombian government and the Colombian central bank exercise significant influence on the Colombian economy, which could have an impact onour business, financial condition and results of operations. The Colombian government and the Colombian central bank could intervene in Colombia’s economy and make changes in monetary, fiscal andregulatory policy, which could result in currency devaluation and the changes in international reserves. Although the Colombian government has not imposed foreign exchange restrictions since 1990, Colombia’s foreign currency markets havehistorically been extremely regulated. Colombian law permits the Colombian central bank to impose foreign exchange controls to regulate the remittance ofdividends and/or foreign investments in the event that the foreign currency reserves of the Colombian central bank fall below a level equal to the value ofthree months of imports of goods and services into Colombia. An intervention that precludes us from possessing, utilizing or remitting dollars would impairour financial condition and results of operations. The Colombian government has considerable power to shape the Colombian economy and, consequently, affect the operations and financialperformance of businesses. The Colombian government may seek to implement new policies aimed at controlling further fluctuation of the Colombian pesoagainst the U.S. dollar and fostering domestic price stability. The president of Colombia has considerable power to determine governmental policies andactions relating to the economy and may adopt policies that are inconsistent with those of the prior government or that negatively affect us. 36 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. If the United States imposes sanctions on Colombia in the future, our business may be adversely affected. Colombia is among several nations whose eligibility to receive foreign aid from the United States is dependent on its progress in stemming theproduction and transit of illegal drugs, which is subject to an annual review. Although Colombia is currently eligible for such aid, Colombia may not remaineligible in the future. A finding by the United States that Colombia has failed demonstrably to meet its obligations under international counter-narcoticagreements may result in the imposition of economic and trade sanctions on Colombia which could result in adverse economic consequences in Colombiaand could further heighten the political and economic risks associated with our operations there. Risks Related to the Company and the Ownership of Our Common Shares The price of our common shares may be highly volatile. The market price of our common shares may be volatile and may be influenced by many factors, some of which are beyond our control, including: •the failure of financial analysts to cover our common shares or changes in financial estimates by analysts; •actual or anticipated variations in our operating results; •changes in financial estimates by financial analysts, or any failure by us to meet or exceed any of these estimates, or changes in therecommendations of any financial analysts that elect to follow our common shares or the shares of our competitors; •announcements by us or our competitors of significant contracts or acquisitions; •future sales of our common shares; and •investor perceptions of us and the industries in which we operate. In addition, the equity markets in general have experienced substantial price and volume fluctuations that have often been unrelated ordisproportionate to the operating performance of particular companies affected. These broad market and industry factors may materially harm the marketprice of our common shares, regardless of our operating performance. In the past, following periods of volatility in the market price of certain companies'securities, securities class action litigation has been instituted against these companies. This litigation, if instituted against us, could adversely affect ourfinancial condition or results of operations. Holders of our common shares may experience losses due to increased volatility in the U.S. capital markets. The U.S. capital markets have experienced extreme price and volume fluctuations that have affected and continue to affect the market prices ofequity securities of many companies. These fluctuations often have been unrelated or disproportionate to the operating performance or results of operationsof those companies. These broad market fluctuations, as well as general economic, political and market conditions such as recessions, interest rate changes orinternational currency fluctuations, as well as volatility in international capital markets, may cause the market price of our common shares to decline. In addition, downgrades to the U.S. government's sovereign credit rating by any rating agency, as well as negative changes to the perceivedcreditworthiness of U.S. government-related obligations, could have a material adverse impact on financial markets and economic conditions in the UnitedStates and worldwide. Any volatility in the capital markets in the United States or in other developed countries, whether resulting from a downgrade of thesovereign credit rating of U.S. debt obligations or otherwise, may have an adverse effect on the price of our common shares. We may be classified by the Internal Revenue Service as a "passive foreign investment company" (a "PFIC"), which may result in adverse taxconsequences for U.S. investors. 37 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. We believe that we will not be a PFIC for U.S. federal income tax purposes for our current taxable year and do not expect to become one in theforeseeable future. However, because PFIC status depends upon the composition of our income and assets and the market value of our assets (including,among others, less than 25% owned equity investments) from time to time, there can be no assurance that we will not be considered a PFIC for any taxableyear. Because we have valued goodwill based on the market value of our equity for purposes of taxation, a decrease in the price of our common shares mayalso result in us becoming a PFIC. The composition of our income and our assets will also be affected by how, and how quickly, we spend the cash. Undercircumstances where the cash is not deployed for active purposes, our risk of becoming a PFIC may increase. If we were treated as a PFIC for any taxable yearduring which a U.S. investor held common shares, certain adverse tax consequences could apply to such U.S. investor. See "AdditionalInformation — Taxation — U.S. Federal Income Tax Considerations — Passive foreign investment company rules." We may need additional capital and we may not be able to obtain it. We believe that our existing cash and cash equivalents and cash flows from operations, including the cash available under our revolving line ofcredit, will be sufficient to meet our anticipated cash needs for at least the next 12 months. We may, however, require additional cash resources due tochanged business conditions or other future developments, including any investments or acquisitions we may decide to pursue. If these resources areinsufficient to satisfy our cash requirements, we may seek to sell additional equity or debt securities or obtain another credit facility or expand the existingone. The sale of additional equity securities could result in dilution to our shareholders. The incurrence of indebtedness would result in increased debtservice obligations and could require us to agree to additional operating and financing covenants that would restrict our operations. Our ability to obtain additional capital on acceptable terms is subject to a variety of uncertainties, including: •investors' perception of, and demand for, securities of technology services companies; •conditions of the U.S. capital markets and other capital markets in which we may seek to raise funds; •our future results of operations and financial condition; •government regulation of foreign investment in the United States, Europe, and Latin America; and •global economic, political and other conditions in jurisdictions in which we do business. Concentration of ownership among our existing executive officers, directors and principal shareholders may prevent new investors from influencingsignificant corporate decisions or adversely affect the trading price of our common shares. As of March 15, 2019, our directors and executive officers, entities affiliated with them and greater than 5% shareholders, beneficially own anaggregate of approximately 30.37% of our outstanding common shares, of which 1.40% represents common shares subject to options that currently areexercisable or will be exercisable within 60 days of March 15, 2019 as well as common shares issuable upon settlement of restricted stock units that havevested or will vest within 60 days of March 15, 2019. As a result, these shareholders may exercise significant influence over matters requiring shareholderapproval, including the election of directors and approval of significant corporate transactions, and may have significant influence over our management andpolicies. This concentration of influence could be disadvantageous to other shareholders with interests different from those of our officers, directors andprincipal shareholders. For example, our officers, directors and principal shareholders could delay or prevent an acquisition or merger even if the transactionwould benefit other shareholders. In addition, this concentration of share ownership may adversely affect the trading price of our common shares becauseinvestors often perceive disadvantages in owning shares in companies with principal shareholders. 38 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Our business and results of operations may be adversely affected by the increased strain on our resources from complying with the reporting, disclosure,and other requirements applicable to public companies in the United States and in Luxembourg. Compliance with existing, new and changing corporate governance and public disclosure requirements adds uncertainty to our compliance policiesand increases our costs of compliance. Changing laws, regulations and standards include those relating to accounting, corporate governance and publicdisclosure; these include but are not limited to the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Sarbanes-Oxley Act of 2002, new SECregulations and NYSE listing guidelines that result out of the NYSE listing, and Regulation (EU) 596/2014 of the European Parliament and of the Council ofApril 16, 2014 on market abuse, together with the related implementing and delegated regulations of the European Commission and guidelines published bythe European Securities and Market Authority and the Commission de Surveillance du Secteur Financier, the Luxembourg law of January 11, 2008 ontransparency requirements for issuers, as amended, and in particular the annual financial and non-financial reporting rules that apply as a result of our sharesbeing listed and admitted to trading on the regulated market operated by the Lux SE. These laws, regulations and guidelines may lack specificity and aresubject to varying interpretations. Their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies. Inparticular, our efforts to comply with certain sections of Section 404 of the Sarbanes-Oxley Act of 2002 ("Section 404") and the related regulations regardingrequired assessment of internal controls over financial reporting and our external auditor's audit of that assessment requires the commitment of significantfinancial and managerial resources. Testing and maintaining internal controls can divert our management's attention from other matters that are important tothe operation of our business. We also expect the regulations to increase our legal and financial compliance costs, make it more difficult to attract and retainqualified officers and members of our board of directors, particularly to serve on our audit committee, and make some activities more difficult, timeconsuming and costly. Existing, new and changing corporate governance and public disclosure requirements could result in continuing uncertainty regarding compliancematters and higher costs of compliance as a result of ongoing revisions to such governance standards. Our efforts to comply with evolving laws, regulationsand standards have resulted in, and are likely to continue to result in, increased general and administrative expenses and a diversion of management time andattention from revenue-generating activities to compliance activities. In addition, new laws, regulations and standards regarding corporate governance maymake it more difficult for our company to obtain director and officer liability insurance. Further, our board members and senior management could face anincreased risk of personal liability in connection with their performance of duties. As a result, we may face difficulties attracting and retaining qualified boardmembers and senior management, which could harm our business. If we fail to comply with new or changed laws or regulations and standards differ, ourbusiness and reputation may be harmed. Failure to establish and maintain effective internal controls in accordance with Section 404 could have a material adverse effect on our business andcommon share price. As a public company, we are required to document and test our internal control procedures in order to satisfy the requirements of Section 404, whichwill require management assessments and certifications of the effectiveness of our internal control over financial reporting. During the course of our testing,we may identify deficiencies that we may not be able to remedy in time to meet our deadline for compliance with Section 404. We may not be able toconclude on an ongoing basis that we have effective internal control over financial reporting in accordance with Section 404. In addition, our independentregistered public accounting firm is required to report on the effectiveness of our internal control over financial reporting but may not be able or willing toissue an unqualified report. If we conclude that our internal control over financial reporting is not effective, we cannot be certain as to the timing ofremediation actions and testing or their effect on our operations because there is presently no precedent available by which to measure compliance adequacy. If we are unable to conclude that we have effective internal control over financial reporting, our independent auditors are unable to provide us withan unqualified report as required by Section 404, or we are required to restate our financial statements, we may fail to meet our public reporting obligationsand investors could lose confidence in our reported financial information, which could have a negative effect on the trading price of our common shares. Our exemption as a "foreign private issuer" from certain rules under the U.S. securities laws may result in less information about us being available toinvestors than for U.S. companies, which may result in our common shares being less attractive to investors. As a "foreign private issuer" in the United States, we are exempt from certain rules under the U.S. securities laws and are permitted to file lessinformation with the SEC than U.S. companies. As a "foreign private issuer," we are exempt from certain rules under the U.S. Securities Exchange Act of 1934,as amended (the "Exchange Act"), that impose certain disclosure obligations and procedural requirements for proxy solicitations under Section 14 of theExchange Act. In addition, our officers, directors and principal shareholders are exempt from the reporting and "short-swing" profit recovery provisions ofSection 16 of the Exchange Act and the rules under the Exchange Act with respect to their purchases and sales of our common shares. Moreover, we are notrequired to file periodic reports and financial statements with the SEC as frequently or as promptly as companies that are not foreign private issuers whosesecurities are registered under the Exchange Act. In addition, we are not required to comply with Regulation FD, which restricts the selective disclosure ofmaterial information. As a result, our shareholders may not have access to information they may deem important, which may result in our common sharesbeing less attractive to investors. 39 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. We do not plan to declare dividends, and our ability to do so will be affected by restrictions under Luxembourg law. We have not declared dividends in the past and do not anticipate paying any dividends on our common shares in the foreseeable future. In addition,both our articles of association and the Luxembourg law of August 10, 1915 on commercial companies as amended (loi du 10 août 1915 sur les sociétéscommerciales telle que modifiée) (the "Luxembourg Companies Law") require a general meeting of shareholders to approve any dividend distribution exceptas set forth below. Our ability to declare dividends under Luxembourg law is subject to the availability of distributable earnings or available reserves, including sharepremium. Moreover, if we declare dividends in the future, we may not be able to pay them more frequently than annually. As permitted by LuxembourgCompanies Law and subject to the provisions thereof, our articles of association authorize the declaration of dividends more frequently than annually by ourboard of directors in the form of interim dividends so long as the amount of such interim dividends does not exceed total net income made since the end ofthe last financial year for which the standalone annual accounts have been approved, plus any net income carried forward and sums drawn from reservesavailable for this purpose, less the aggregate of the prior year's accumulated losses, the amounts to be set aside for the reserves required by law or by ourarticles of association for the prior year, and the estimated tax due on such earnings. We depend on the ability of our subsidiaries to distribute funds to us in order to satisfy our financial obligations and to make dividend payments, whichthey may not be able to do. Our subsidiaries conduct all of our operations. We have no relevant assets other than the equity interests in our subsidiaries. As a result, our ability tomake dividend payments depends on our subsidiaries and their ability to distribute funds to us. The ability of a subsidiary to make these distributions couldbe affected by covenants in our or their financing agreements or by the law of their respective jurisdictions of incorporation. If we are unable to obtain fundsfrom our subsidiaries, we will be unable to distribute dividends. We do not intend to seek to obtain funds from other sources to pay dividends. See "— RisksRelated to Operating in Latin America — Argentina — The imposition in the future of restrictions on transfers of foreign currency and the repatriation ofcapital from Argentina may impair our ability to receive dividends and distributions from, and the proceeds of any sale of, our assets in Argentina." Our shareholders may have more difficulty protecting their interests than they would as shareholders of a U.S. corporation, which could adversely impacttrading in our common shares and our ability to conduct equity financings. Our corporate affairs are governed by our articles of association and the laws of Luxembourg, including the laws governing joint stock companies.The rights of our shareholders and the responsibilities of our directors and officers under Luxembourg law are different from those applicable to a corporationincorporated in the United States. There may be less publicly available information about us than is regularly published by or about U.S. issuers. In addition,Luxembourg law governing the securities of Luxembourg companies may not be as extensive as those in effect in the United States, and Luxembourg lawand regulations in respect of corporate governance matters might not be as protective of minority shareholders as state corporation laws in the United States.Therefore, our shareholders may have more difficulty in protecting their interests in connection with actions taken by our directors and officers or ourprincipal shareholders than they would as shareholders of a corporation incorporated in the United States. Neither our articles of association nor Luxembourg law provides for appraisal rights for dissenting shareholders in certain extraordinary corporatetransactions that may otherwise be available to shareholders under certain U.S. state laws. As a result of these differences, our shareholders may have moredifficulty protecting their interests than they would as shareholders of a U.S. issuer. 40 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Holders of our common shares may not be able to exercise their pre-emptive subscription rights and may suffer dilution of their shareholding in the eventof future common share issuances. Under Luxembourg Companies Law, our shareholders benefit from a pre-emptive subscription right on the issuance of common shares for cashconsideration. However, in accordance with Luxembourg law, our articles of association authorize our board of directors to suppress, waive or limit any pre-emptive subscription rights of shareholders provided by Luxembourg law to the extent our board deems such suppression, waiver or limitation advisable forany issuance or issuances of common shares within the scope of our authorized share capital. Such common shares may be issued above, at or below marketvalue as well as by way of incorporation of available reserves (including a premium). This authorization is valid from the date of the publication in theLuxembourg's official gazette (Recueil Electronique des Sociétés et Associations) of the decision of the extraordinary general meeting of shareholders heldon May 8, 2017, which publication occurred on May 19, 2017, and ends on May 19, 2022. In addition, a shareholder may not be able to exercise theshareholder's pre-emptive right on a timely basis or at all, unless the shareholder complies with Luxembourg Companies Law and applicable laws in thejurisdiction in which the shareholder is resident, particularly in the United States. As a result, the shareholding of such shareholders may be materially dilutedin the event common shares are issued in the future. Moreover, in the case of an increase in capital by a contribution in kind, no pre-emptive rights of theexisting shareholders exist. We are organized under the laws of the Grand Duchy of Luxembourg and it may be difficult for you to obtain or enforce judgments or bring originalactions against us or our executive officers and directors in the United States. We are organized under the laws of the Grand Duchy of Luxembourg. The majority of our assets are located outside the United States. Furthermore,the majority of our directors and officers and some experts named in this annual report reside outside the United States and a substantial portion of their assetsare located outside the United States. Investors may not be able to effect service of process within the United States upon us or these persons or to enforcejudgments obtained against us or these persons in U.S. courts, including judgments in actions predicated upon the civil liability provisions of the U.S. federalsecurities laws. Likewise, it may also be difficult for an investor to enforce in U.S. courts judgments obtained against us or these persons in courts located injurisdictions outside the United States, including judgments predicated upon the civil liability provisions of the U.S. federal securities laws. It may also bedifficult for an investor to bring an original action in a Luxembourg court predicated upon the civil liability provisions of the U.S. federal securities lawsagainst us or these persons. Furthermore, Luxembourg law does not recognize a shareholder's right to bring a derivative action on behalf of the companyexcept in limited cases. As there is no treaty in force on the reciprocal recognition and enforcement of judgments in civil and commercial matters between the United Statesand the Grand Duchy of Luxembourg, courts in Luxembourg will not automatically recognize and enforce a final judgment rendered by a U.S. court. A validjudgment in civil or commercial matters obtained from a court of competent jurisdiction in the United States may be entered and enforced through a court ofcompetent jurisdiction in Luxembourg, subject to compliance with the enforcement procedures (exequatur). The enforceability in Luxembourg courts ofjudgments rendered by U.S. courts will be subject prior any enforcement in Luxembourg to the procedure and the conditions set forth in the Luxembourgprocedural code, which conditions may include the following as of the date of this annual report (which may change): •the judgment of the U.S. court is final and enforceable (exécutoire) in the United States; •the U.S. court had jurisdiction over the subject matter leading to the judgment (that is, its jurisdiction was in compliance both with Luxembourgprivate international law rules and with the applicable domestic U.S. federal or state jurisdictional rules); •the U.S. court has applied to the dispute the substantive law that would have been applied by Luxembourg courts; •the judgment was granted following proceedings where the counterparty had the opportunity to appear and, if it appeared, to present a defense, andthe decision of the foreign court must not have been obtained by fraud, but in compliance with the rights of the defendant; •the U.S. court has acted in accordance with its own procedural laws; •the judgment of the U.S. court does not contravene Luxembourg international public policy; and •the U.S. court proceedings were not of a criminal or tax nature. 41 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Under our articles of association and also pursuant to separate indemnification agreements, we indemnify our directors for and hold them harmlessagainst all claims, actions, suits or proceedings brought against them, subject to limited exceptions. The rights and obligations among or between us and anyof our current or former directors and officers are generally governed by the laws of the Grand Duchy of Luxembourg and subject to the jurisdiction of theLuxembourg courts, unless such rights or obligations do not relate to or arise out of their capacities listed above. Although there is doubt as to whether U.S.courts would enforce such provision in an action brought in the United States under U.S. federal or state securities laws, such provision could make enforcingjudgments obtained outside Luxembourg more difficult to enforce against our assets in Luxembourg or jurisdictions that would apply Luxembourg law. Luxembourg insolvency laws may offer our shareholders less protection than they would have under U.S. insolvency laws. As a company organized under the laws of the Grand Duchy of Luxembourg and with its registered office in Luxembourg, we are subject toLuxembourg insolvency laws in the event any insolvency proceedings are initiated against us including, among other things, Regulation (EU) No. 2015/848of the European Parliament and the Council of May 20, 2015 on insolvency proceedings (recast). Should courts in another European country determine thatthe insolvency laws of that country apply to us in accordance with and subject to such EU regulations, the courts in that country could have jurisdiction overthe insolvency proceedings initiated against us. Insolvency laws in Luxembourg or the relevant other European country, if any, may offer our shareholdersless protection than they would have under U.S. insolvency laws and make it more difficult for them to recover the amount they could expect to recover in aliquidation under U.S. insolvency laws. 42 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. ITEM 4. INFORMATION ON THE COMPANY A. History and Development of the Company Globant is a Luxembourg société anonyme (a joint stock company). The company's legal name is "Globant S.A." We were founded in 2003 byMartín Migoya, our Chairman and Chief Executive Officer, Guibert Englebienne, our Chief Technology Officer, Martín Umaran, our Chief of Staff, andNestor Nocetti, our Executive Vice President of Corporate Affairs. Our founders' vision was to create a company, starting in Latin America that would dreamand build digital journeys that matter to millions of users, while also generating world-class career opportunities for IT professionals, not just in metropolitanareas but also in outlying cities and countries. Since our inception, we have benefited from strong organic growth and have built a blue chip client base comprised of leading global companies.Over that same period, we have expanded our network of locations from one to 40. In addition, we have garnered several awards and recognition fromorganizations such as Endeavor, the IDC MarketScape, Global Services, the International Association of Outsourcing Professionals, and Fast Company, andwe have been the subject of business-school case studies on entrepreneurship at the Massachusetts Institute of Technology, Harvard University and StanfordUniversity in conjunction with the World Economic Forum. In 2006, we started working with Google. We were chosen due to our cultural affinity and innovation. While our growth has primarily been organic,since 2008 we have made fifteen complementary acquisitions. Our acquisition strategy is focused on deepening our relationship with key clients, extendingour technology capabilities, broadening our service offering and expanding the geographic footprint of our delivery centers, including beyond LatinAmerica. In 2008, we acquired Accendra, a Buenos Aires-based provider of software development services, in order to deepen our relationship with Microsoftand broaden our technology expertise to include Sharepoint and other Microsoft technologies. That same year we also acquired Openware, a companyspecializing in security management based in Rosario, Argentina. In 2011, we acquired Nextive. The Nextive acquisition expanded our geographic presence in the United States and enhanced our U.S. engagementand delivery management team as well as our ability to provide comprehensive solutions in mobile technologies. In 2012, we acquired TerraForum, an innovation consulting and software development firm in Brazil. The acquisition of TerraForum allowed us toexpand into Brazil, one of the largest economies in the world. In August 2013, we acquired 22.75% of Dynaflows S.A. In October 2015, we obtained the control over Dynaflows through acquiring an additionalnumber of shares, and in October 2018, we completed the acquisition of the company by acquiring the remaining minority stake. This acquisition allowed usto broaden our Services over Platforms strategy. In October 2013, we acquired a majority stake in the Huddle Group, a company specializing in the media and entertainment industries, withoperations in Argentina, Chile and the United States. We acquired the remaining 13.75% minority stake in Huddle Investment in October 2014. In July 2014, we closed the initial public offering of our common shares in the United States. In October 2014, we acquired BlueStar Holdings. Through this acquisition, we commenced our operations in Perú. In April 2015, we closed a follow-on secondary offering of our common shares in the United States through which certain selling shareholders sold3,994,390 common shares previously held by them. In July 2015, we closed another follow-on secondary offering in the United States through which certainselling shareholders sold 4,025,000 common shares previously held by them. In May 2015, we acquired Clarice which allowed us to establish our presence in India. 43 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Also, in 2015, we launched new Studios to complement our offerings, including one focused on Cognitive Computing, and we incorporated acomplementary approach to build digital journeys fast and in an innovative manner though: our service-over-platform offering. During 2016, we introduced a new model that intends to reshape our go-to-market strategy to scale our company in the coming years, called 50Squared. The main goal of this new approach is to focus our team in the top 50 high potential accounts that have the capacity to grow exponentially overtime. To do so, we have appointed our most senior people from Sales, Technology and Operations to lead these teams and take our company to the next level.This account focus has become the most important pillar of our go-to-market strategy and every account within Globant now has the goal to become part ofthis program. In May 2016, we acquired We Are London Limited ("WAE UK") and We Are Experience, Inc. ("WAE US") (jointly, WAE UK and WAE US are"WAE"). The purpose of these acquisitions was related to the benefit of expected synergies, revenue growth, future market development and the assembledworkforce of WAE. In August 2016, we applied to the Luxembourg Stock Exchange for listing on the Official List of the Luxembourg Stock Exchange ("Lux SE") andfor the admission to trading on its regulated market of our common shares. Our shares began trading on the Lux SE on August 11, 2016. In November 2016, we entered into a stock purchase agreement with 3Cinteractive corp. ("3C") to purchase the 100% of the capital stock of itswholly owned subsidiary, Difier, an Uruguayan company. At the same time, we signed a consulting services agreement to provide software developmentservices to 3C for a term of four years. During the same month, we acquired L4 Mobile, LLC. The purpose of this acquisition was related to strengthening our leading position in thedigital services space and expanding our capabilities in the United States. In February 2017, we acquired Ratio Cypress, LLC, a limited liability company organized and existing under the laws of the State of Washington inthe United States. Ratio offers design, development and quality assurance services necessary to build and manage robust digital products and videostreaming solutions for major media companies. In June 2017, we acquired PointSource, a design and development technology agency, based in Raleigh, North Carolina, and Chicago. The purposeof this acquisition was related to the benefit of expected synergies, revenue growth and expanding our capabilities in the United States. As part of thistransaction, we acquired an option to purchase PointSource LLC, a company incorporated in Belarus. In February 2018, after exercising our option, wecommenced operations in Belarus. In June 2018, we closed a secondary offering in the United States of 6,687,548 of our common shares held by WPP Luxembourg Gamma Three S.àr.l.("WPP"). In October, 2018, we signed an asset purchase agreement to acquire, the business of Small Footprint Inc., a corporation organized and existing underthe laws of North Carolina, United States, including the acquisition of its wholly owned subsidiary in Romania, Small Footprint, LLC. The purpose of thisacquisition was to deepen our expansion into Eastern Europe while also improving our onsite capacity in the United States. During 2018 we launched new Studios to complement our offerings, including one focused on Cybersecurity and another on Over-the-Top, and wealso launched StarMeUp OS as a part of our Services-Over-Platform strategy. StarMeUp OS is an operating system made up of smart applications built to helporganizations with digital transformation from the inside out. In February, 2019, we closed the acquisition of Avanxo (Bermuda) Limited ("Avanxo"), a cloud consulting and implementation companyheadquartered in Bermuda, with operations in Brazil, Mexico, Colombia, Peru, Argentina and the United States. We expect that this acquisition will allow usto continue expanding our cloud implementation solutions and bringing Globant's native digital culture to corporate process optimization. For moreinformation, see "Financial Information — Significant changes". 44 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Corporate Information Our principal executive office is located at 37A Avenue J.F. Kennedy L-1855, Luxembourg and our telephone number is + 352 20 30 15 96. Wemaintain a website at http://www.globant.com. Our website and the information accessible through it are not incorporated into this annual report. 45 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. B. Business overview Overview We are a digitally native technology services company where innovation, design and engineering meet scale. We leverage the latest technologiesand methodologies in the digital and cognitive space to help organizations transform in every aspect. We create software products that emotionally connectour customers with millions of consumers and employees, and we work with them to improve their efficiency. Our principal operating subsidiary is based inBuenos Aires, Argentina. For the year ended December 31, 2018, 77.9% of our revenues were generated by clients in North America, 12.6% in Latin America,0.6% in Asia and 8.9% in Europe, including many leading global companies. Digital and cognitive transformations require completely different approaches than traditional IT projects. It begins with cultural behavioral andorganizational change and then delivering the right blend of engineering, design and innovation. We differentiate ourselves from our competitors as follows: - We are a pure play in the digital and cognitive fields.- We have global presence with delivery centers in North America, Latin America, Europe and Asia.- We offer deep knowledge in the latest trends and technologies. Our Globers are our most valuable asset. As of December 31, 2018, we had 8,384 Globers and 40 locations across 32 cities in Latin America, Asia,Europe and North America, throughout 14 countries, supported by four client management locations in the United States, and one client managementlocation in each of United Kingdom, Colombia, Uruguay, Argentina and Brazil. Our reputation for cutting-edge work for global blue chip clients and ourfootprint across the world provide us with the ability to attract and retain well-educated and talented professionals. We are culturally similar to our clientsand we function in multiple time zones. We believe that these characteristics have helped us build solid relationships with our clients in the United Statesand Europe and facilitate a high degree of client collaboration. Our clients include companies such as Google, Electronic Arts, Southwest Airlines Co. and Walt Disney Parks and Resorts Online, each of which wasamong our top ten clients in the year ended December 31, 2018. 95.5% of our revenues for the year ending December 31, 2018 came from existing clientswho used our services in the prior year. We believe our success in building our attractive client base in the most sophisticated and competitive markets for ITservices demonstrates the superior value proposition of our offering and the quality of our execution as well as our culture of innovation and entrepreneurialspirit. Our revenues increased from $322.9 million for 2016 to $522.3 million for 2018, representing a Compound Annual Growth Rate ("CAGR") of 27.2%over the two-year period. Our revenues for 2018 increased by 26.3% to $522.3 million, from $413.4 million for 2017. Our net income for 2018 was $51.6million, compared to a net income of $30.5 million for 2017. The $21.1 million increase in net income from 2017 to 2018 was primarily driven by highergross margin due to costs efficiencies and a reduction in selling, general and administrative expenses. In 2016, 2017 and 2018, we made several acquisitionsto enhance our strategic capabilities, none of which contributed a material amount to our revenues in the year the acquisition was made. See "Information onthe Company — History and Development of the Company." Our Industry We are experiencing an amazing moment for technology. In which we have two massive and disruptive technological revolutions occurringsimultaneously. The digital and the cognitive revolutions are affecting how companies connect with consumers and employees as well as providingopportunities to make huge gains in efficiency. Today's users move fast and are keen to interact with their digital ecosystem anywhere and anytime, in a painless, fast, relevant, smart and restriction-free way. They demand personalized, seamless and frictionless experiences that will simplify their lives. We are also facing an abundance of demand for moreintelligent and human-like behavior and technology on the market. These revolutions are leveraging new technologies that did not exist or were not matureenough until a few years ago, such as AI, UX, Mobile, Cloud and virtual reality "VR". 46 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. While the traditional IT space grew at 3.7% during 2018, growth in the digital space is expected to be 19.7% CAGR from 2019 through 2021. Weare a pure play in the digital space. Technologies that support this new digital and cognitive era are also experiencing increased demand: - Artificial Intelligence ("AI") revenue is expected to grow at a 60% CAGR by 2025.- The virtual digital assistant market is expected to reach $15.8 billion worldwide by 2021.- Mobile augmented reality ("AR") is expected to drive a $108 billion VR/AR market by 2021. Tech Trends •IoT Grid: Data from Internet of Things ("IoT") devices are expected to empower AI with information related to variety of processes and systems in orderto support data discovery. IDC expects double-digit worldwide annual growth in IoT spending between 2017 and 2022, with a forecast of more than $1trillion in 2022. •AI: AI utilizes analytical insights to automate and recommend appropriate solutions on demand. Business strategies can be mapped with AIrecommendations through elaborate business processes and along various points on the value chain, including production, workforce management,sales, marketing and logistics. In this way, AI is designed to enable local sales managers and production managers to run their businesses more efficientlyand streamline processes. We expect that AI will eventually learn to self-calibrate systems and processes. Gartner predicts that by 2020, customers willmanage 85% of their relationship with the enterprise without interacting with a human. •Intelligent Automation: Robotic Process Automation ("RPA") is emerging into Intelligent Automation ("IA"). This form of automation is being re-trained to feature natural language recognition and processing, react to unstructured super data sets and automate specific business processes. IA canmake relevant connections and continue to learn unsupervised, continuously adjusting to new information being provided and improve performance.While performing repetitive tasks, IA can improvise when needed or required. Forrester has projected that the RPA market will reach $1.70 billion inrevenue in 2019. •Blockchain: Blockchain solutions have been embraced across various industries over the past few years. Blockchain’s sophistication is expected todramatically improve how organizations operate digitally, and major players are building their future web services with blockchain. In 2019, we expectthat, companies will focus on pushing forward blockchain investments and driving returns on such investments. The global blockchain market size isexpected to grow from $1.2 billion in 2018 to $23.3 billion by 2023, at a CAGR of 80.2% during that time, according to a report by Markets AndMarkets. •Quantum Computing: Quantum computing is the use of computing is the use of quantum-mechanical phenomena such as superposition andentanglement to perform computation. A quantum computer is used to perform such computation, which can be implemented theoretically or physically.By the end of 2025, more than $23 billion in revenue is anticipated to be realized through the adoption of quantum computing across the globe. Duringthis decade forecasted period, the global market for quantum computing is expected to expand exponentially at a stellar CAGR of 30.9%, according toPersistence Market Research. •5G: It is critical that data transfer capabilities keep pace with computing capabilities. 5G is the latest generation of cellular mobile communications. Weexpect that 5G will ensure the connectivity and transfer of data seamlessly and speedily for machine-to-machine communication (IoT grid andanalytical/AI platform) and provide scaling possibilities in the mobile network. According to a report from MarketsandMarkets, the 5G infrastructuremarket is expected to be worth $2.86 billion by 2020 and $33.72 billion by 2026, growing at a CAGR of 50.9%. •Cloud Technologies: With a surge in collected data and the need to power AI and machine learning ("ML") processes, cloud computing is the preferredmethod for organizations to digitize their business completely. Companies are leveraging cloud technologies to transform their internal IT departmentsand build a business-ready IT that is able to streamline development lifecycle and reduce time to market, as well as transform organizational culture bydisbanding silos. In the future, we expect cloud computing to serve as a software building platform rather than only server provisioning. Enterprisesseeking to bring digital transformation into their internal applications without replacing them will refactor their core applications using cloud nativetechnologies like containers. Others will be bolder and seek core SaaS based multi-cloud technologies with new developing tools, integration anddeployment options. According to Forrester, nearly 60% of North American enterprises today rely on public cloud platforms. 47 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Market Trends Across all industries, we have observed a trend to smarter digital systems that embrace the latest technology and optimize customer experiences aswell as their internal processes. Companies are seeking to transform their business as new users and requirements arise. At the same time, we see that manyorganizations try to transform themselves internally, cemented through effective change management. For many companies, however, it becomes difficult to build a digitally-native culture from scratch or change the status quo of existing ITdepartments. It is hard to be successful using old practices to create innovative technology products. As Forrester points out, "Transformation starts withdeveloping the right set of strategy choices and the ability to help shape digital thinking and a digital culture that supports continuous innovation. It iscemented through effective change management." Many of these companies are relying in partners to spearhead their transformation efforts. Our Approach Technology is not enough to create solutions for a true digital and cognitive transformation. At Globant, we are committed to helping our customersthroughout their Organizational Fitness Lifecycle. In order to be sustainable and successful, transformations need to impact every single dimension of the organization. With consumers and employeesat the center of every strategy, our services address every stage of the transformational process. We start with clients by providing the necessary tools and support that allow companies to jumpstart their cultural and methodologytransformations. We then accompany our clients as they define and test their new digital strategies to engage consumers and employees. We continue scalingon the construction and evolution of these and other digital and cognitive initiatives, followed by the two final stages in the cycle: pushing a secure productto the cloud, and making it famous so that it reaches the proper audience. At this time the fitness cycle remains in an endless and progressive loop to ensureorganizations stay relevant. We deliver these services through our unique set of Studios, our Service over Platforms strategy, our own methodology called Agile Pods, and ourStay Relevant approach. Studios: We believe that our Studio model is an effective way of organizing our company into smaller operating units, fostering creativity andinnovation while allowing us to build, enhance and consolidate expertise around a variety of emerging technologies. Each of our Studios has specificdomain knowledge and delivers tailored solutions focused on specific technology challenges. This method of delivery is the core of our services offeringand our success. We group them in three different categories: Strategic (these studios are key to shaping our clients' business strategy; they help ensurethat organizations are relevant and sustainable); Specialty (studios that power digital transformations and create quality digital products with innovativetechnologies and emerging trends); Foundation (the engine that allows us to meet scale and provides efficiency and quality to our clients' digitaltransformations). 48 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Service Over Platforms: At Globant, we are changing the way services are provided with our Services over Platforms strategy. This set of platforms is designed to helpdeliver digital and cognitive transformations in an agile and innovative manner. These products have the flexibility to adapt to our clients' needs as weprovide microservices to complement them. In this way, many of our Studios create platforms to accelerate the path to our solutions. We price this service in the same way SaaS companiesdo: cost per transaction, cost per user or cost per month according to each platform. Agile Pods Methodology: We have developed a software product design and development model, known as Agile Pods. It is designed to better align business andtechnology teams. Driven by a culture of self-regulated teamwork and collaboration across skills, partners and country borders. Leveraged across divisions, Agile Pods are dedicated to mature emerging technologies and market trends, and provide a constant influx ofmature talent and solutions that create intellectual property for our clients. They are self-organized teams that work to meet creative and productiongoals, make technology decisions and reduce risk. These teams are fully responsible for creating solutions, building and sustaining features, products orplatforms. In addition, savings are delivered to clients due to sustained productivity boosts as the Agile Pods begin to operate at a higher maturity level.We ensure consistency, accountability and replicability by having Agile Pods follow a well-defined set of maturity criteria. Maturity models describelevels of growth and development as follows: Maturity, Quality, Velocity, and Autonomy. Each level acts as a foundation for the next and lays out a pathfor learning and growth. As Agile Pods evolve from one level to the next, they are equipped with the understanding and tools to accomplish goals moreeffectively. Associated metrics guide improvement efforts and generate quantitative and qualitative insights to inform iterative design and planningdecisions. Stay Relevant To fully implement a digital and cognitive transformation, we also help our customers stay relevant within their industries and audiences byproviding helpful information and initiatives to understand the users’ environment, competitors and behavior. With research, Subject Matter Experts("SME") gatherings, webinars, workshops and conferences, our thought leaders offer valuable insights to help organizations create valuable andemotional experiences for the audience. Culture Our culture is the foundation that supports and facilitates our distinctive approach. It can be best described as entrepreneurial, flexible, sustainableand team-oriented, and is built on three main motivational pillars and six core values. Our motivational pillars are: Autonomy, Mastery and Purpose. Through Autonomy, we empower Globers to take ownership of their client projects,professional development and careers. Mastery is about constant improvement, aiming for excellence and exceeding expectations. Finally, we believe thatonly by sharing a common Purpose we will build a company for the long-term that breaks from the status quo, is recognized as a leader in the delivery ofinnovative software solutions and creates value for our stakeholders. Our core values are: •Act Ethically – In our view, the achievement of professional excellence requires high ethical standards. We believe in doing business in anethical manner and know our achievements go hand-in-hand with the responsibility to improve our society. 49 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. •Think Big – We believe that we can build a world-class company that provides Globers with a global career path. Our work is based on constantchallenges and growth. •Constantly Innovate – We seek to innovate in order to break paradigms. •Aim for Excellence in Your Work – We know that problems we face now will reappear in future projects so we try to solve the obstacles thataffect us today. •Be a Team Player – We encourage Globers to get to know their colleagues and to support one another. Together, we are going to improve ourprofession, company and countries. We operate as one team whether it's solving a problem or celebrating excellent results. We also all have theright to be heard and respected. •Have Fun – As Globers, we believe in finding pleasure in our daily tasks, creating a pleasant work atmosphere and building friendships amongcolleagues. Consistent with our motivational pillars and core values, we have designed our workspaces to be enjoyable and stimulating spaces that areconducive to social and professional interaction. Our delivery centers include, among others, brainstorming rooms, music rooms and ''chill-out'' rooms. Wealso organize activities throughout the year, such as sports tournaments, outings, celebrations, and other events that help foster our culture. We believe thatour work environment fosters creativity, innovation and collaborative thinking, as well as enables Globers to tap into their intrinsic motivation for the benefitof our company and our clients. Innovation As fundamental values of our day-to-day, innovation and creativity are not managed from a specific area. Instead, these values are emphasizedthroughout our company. In our view, it is critical that each and every one of our Globers be an innovator. In addition to offering a flexible and collaborative workenvironment, we also actively seek to build the capabilities required to sustain innovation through several ongoing processes and initiatives including:iFactor (our innovation program), design thinking workshops (internally and with customers), Think Big Sessions (open technology talks) and Globant Labs(a space where our Globers can ideate and develop their own projects). Sustainability We believe that sustainable development of our organization is critical in order to enhance our competitive position in empowering organizationsfor a digital and cognitive revolution. In other words, we look forward to social and environmental results, in addition to financial metrics. For this reason, besides working internally with Globers, we focus on community involvement, interacting with society and committing ourselves tomeet their needs. Three pillars drive our commitment: education for job placement, technology for the community and entrepreneurship promotion. Diversity & Inclusion Diversity and Inclusion are key to our business. Technology requires us to innovate constantly, and, in our view, there is no way to innovate if we donot connect different points of view. 50 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. For us Diversity & Inclusion includes the intersection of three of our corporate values: Constantly Innovate, Team Player, and Act Ethically. Weadvocate for an inclusive and diverse culture. We pledge to provide all the necessary tools to make sure that all Globers feel comfortable, have the possibilityto fully develop their potential, and have a diverse co-creation space with diverse points of view. Our approach regarding Diversity & Inclusion focuses on three pillars: •Be empathetic - Put aside prejudices and make an effort to understand that being part of different teams will yield better results for everyone at theend of the day. •Be inclusive - Try to make the offices, and work in general, comfortable for everyone. •Be global - Considering we are a global company, it is important to bear in mind that what may seem normal in one culture can offend a Glober froma different culture. We encourage our Globers to be aware of the differences that could exist between each other and to take the time to understandthe way other cultures work. Entrepreneurship Globant was created as a start up. It was built by entrepreneurs and, over the years, many Globers have made a difference by creating and dreamingbig with us. Entrepreneurship is the inner force that moves us to build digital journeys that matter to millions of users. We encourage Globers to dream andcreate more meaningful and rewarding experiences for our customers. To empower that vision: •We created the iFactor Program, which is an internal contest and a way of looking for new approaches and original ideas to add value for us and ourcustomers through innovation, scalability and commercial viability. •We support startups and entrepreneurs around the world mentoring and empowering them to scale. In addition, during 2018, we created Globant Ventures, which is our own accelerator for tech startups in Argentina. The objective of GlobantVentures is to promote the emergence of new entrepreneurs involved cutting-edge areas of technology, such as Artificial Intelligence among other emergingtrends. Career growth Globers who are eager to grow, learn something new, and explore different possibilities have a vast number of opportunities available to them.Knowing their purpose, aiming for mastery and through autonomy, we empower our Globers to take ownership over their careers. Competitive Strengths We believe the following strengths differentiate Globant and create the foundation for continued rapid growth in revenues and profitability: Ability to help organizations throughout their Organizational Fitness Lifecycles Digital and cognitive transformations require completely different approaches than traditional IT projects. It begins with cultural behavioral andorganizational change and then delivering the right blend of engineering, design and innovation. We differentiate ourselves from our competitors as follows: - We are a pure play in the digital and cognitive fields. - We have global presence with delivery centers in North America, Latin America, Europe and Asia. - We offer deep knowledge in the latest trends and technologies. 51 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Deep domain expertise in emerging technologies and related market trends We have developed strong core competencies in emerging technologies and practices such as the ones mentioned above, and we have a deepunderstanding of market trends. Our areas of expertise are organized in Studios, which we believe provide us with a strong competitive advantage and allowus to leverage prior experiences to deliver superior software solutions to clients. Long-term relationships with blue chip clients We have built a roster of blue chip clients such as Google, Electronic Arts, Southwest Airlines Co. and Walt Disney Parks and Resorts Online, manyof which themselves are at the forefront of emerging technologies. In particular, we have been working with Disney and Electronic Arts for more than ten andtwelve years, respectively. We believe that our success in developing these client relationships reflects the innovative and high value-added services that weprovide along with our ability to positively impact our clients' business. Our relationships with these enterprises provides us with an opportunity to accesslarge IT, research and development and marketing budgets. These relationships have driven our growth and have enabled us to engage with new clients. Global delivery with access to deep talent pool As of December 31, 2018, we provided our services through a network of 40 offices in 32 cities throughout fourteen countries. Our deliverylocations are in United States (San Francisco, New York, Seattle, Raleigh, Chicago and Dallas), Argentina (Buenos Aires, Tandil, Rosario, Tucumán, Córdoba,Resistencia, Bahía Blanca, Mendoza, Mar del Plata and La Plata), Uruguay (Montevideo), Colombia (Bogotá and Medellín), Brazil (São Paulo), Peru (Lima),Chile (Santiago), México (México City), India (Pune and Bangalore), Spain (Madrid), Belarus (Minsk), Romania (Cluj) and United Kingdom (London). Wealso have client management locations in the United States (San Francisco, New York, Winston-Salem and Miami), Brazil (São Paulo), Colombia (Bogotá),Uruguay (Montevideo), Argentina (Buenos Aires) and the United Kingdom (London). The main administrative offices of our principal subsidiary (which alsoinclude a delivery center) are located in Buenos Aires. Our principal executive office is located in Luxembourg. All of our facilities (with the exceptions ofTucumán and Bahía Blanca) are leased. We also have two offices under construction in Buenos Aires and La Plata. Latin America has an abundant talent pool of individuals skilled in IT. Over 345,000 engineering and technology students have graduated annuallyfrom 2012 – 2016 from universities in Latin America and the Caribbean region according to The Science and Technology Indicator Network (Red deIndicadores de Ciencia y Tecnología), a research organization that tracks science and technology indicators in the region. Latin America's talent pool(including Mexico, Brazil, Argentina, Colombia and Uruguay) is composed of more than 1,000,000 professionals according to Stackoverflow, SmartPlanetand NearshoreAmericas. Our highly skilled Globers come from leading universities in the regions where our delivery centers are located. Among our surveyedGlobers, approximately 95.0% have obtained a university degree or are enrolled in a university while they are employed by our company, and many havespecialized industry credentials or licensing, including in Systems Engineering, Electronic Engineering, Computer Science, Information SystemsAdministration, Business Administration and Graphic and Web Design. Our time zone and cultural similarity have helped us build solid relationships withour clients in the United States and Europe and differentiate us on projects that require a high degree of client collaboration. A key element of our strategy is to expand our delivery footprint, including increasing the number of employees that are deployed onsite at ourclients or near client locations. In particular, we intend to focus our recruitment efforts on the United States. We will continue to focus on expanding ourdelivery footprint both within and outside Latin America to gain access to additional pools of talent to effectively meet the demands of our clients and toincrease the number of Globers that are deployed onsite at our clients or near client locations. Highly experienced management team Our management team is comprised of seasoned industry professionals with global experience. Our management sets the vision and strategicdirection for Globant and drives our growth and entrepreneurial culture. On average, the members of our senior management team have 20 years of experiencein the technology industry giving them a comprehensive understanding of the industry as well as insight into emerging technologies and practices andopportunities for strategic expansion. 52 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Strategy We seek to be a leading provider that leverages the latest technologies and methodologies in the digital and cognitive space to help organizationstransform in every aspect. The key elements of our strategy for achieving this objective are as follows: Grow revenue with existing and new clients We will continue to focus on delivering innovative and high value-added solutions that drive revenues for our clients, thereby deepening ourrelationships and leading to additional revenue opportunities with them. We will continue to target new clients by leveraging our engineering, design andinnovation capabilities and our deep understanding of emerging technologies. We will focus on building our brand in order to further penetrate our existingand target markets where there is a strong demand for our knowledge and services. Remain at the forefront of innovation and emerging technologies We believe our Studios have been highly effective in enabling us to deliver innovative software solutions that leverage our deep domain expertisein emerging technologies and related market trends. As new technologies emerge and as market trends change, we will continue to add Studios to remain atthe forefront of innovation, to address new competencies that help us stay at the leading-edge of emerging technologies, and to enable us to enter newmarkets and capture additional business opportunities. Attract, train and retain top quality talent We place a high priority on recruiting, training, and retaining employees, which we believe is integral to our continued ability to meet thechallenges of the most complex software development assignments. In doing so, we seek to decentralize our delivery centers by opening centers in locationsthat may not have developed IT services markets but can provide professionals with the caliber of technical training and experience that we seek. Globantoffers highly attractive career opportunities to individuals who might otherwise have had to relocate to larger IT markets. We will continue to develop ourscalable human capital platform by implementing resource planning and staffing systems and by attracting, training and developing high-qualityprofessionals, strengthen our relationships with leading universities in different countries, and help universities better prepare graduates for work in ourindustry. We have agreements to teach, provide internships, and interact on various initiatives with the several universities in Argentina, Colombia, Uruguay,Mexico, Brazil and India. Selectively pursue strategic acquisitions Building on our track record of successfully acquiring and integrating complementary companies, we will continue to selectively pursue strategicacquisition opportunities that deepen our relationship with key clients, extend our technology capabilities, broaden our service offerings and expand thegeographic footprint of our delivery centers, including beyond Latin America, in order to enhance our ability to serve our clients. Our Services We leverage the latest technologies and methodologies in the digital and cognitive space to help organizations transform in every aspect. We createsoftware products that emotionally connect our customers with millions of consumers and employees, and we work with them to improve their efficiency. We deliver these services through our unique set of Studios, our Service over Platforms strategy, our own methodology called Agile Pods, and ourStay Relevant approach. 53 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Studios: Our Studios are deep pockets of expertise designed to foster creativity and innovation by focusing on a specific domain of knowledge. Services Over Platforms: Our experience building software products allows to develop a set of platforms designed to help create Digital Journeys inan agile and innovative manner. These products have the flexibility to adapt to our clients' needs as we provide microservices to compliment them. Agile Pods: Agile Pods are cross-functional and multidisciplinary teams that bring together design and engineering in order to deliver the rightproducts. Agile Pods are measured according to four variables: innovation, velocity, quality, and autonomy. We encourage pods to mature over timeto become more aligned with our customers' needs. Studios Our Studio model is an effective way of organizing our company into smaller operating units, fostering creativity and innovation while allowing usto build, enhance and consolidate expertise around a variety of emerging technologies. Each of the our Studios has specific domain knowledge and deliverstailored solutions focused on specific technology challenges. Our Studios represent the core of our service offerings and our success. We group them in three different categories: •Strategic: These studios are key to shaping our clients' business strategy. They help ensure that organizations are relevant and sustainable. •Specialty: Studios that power digital transformations and create quality digital products with innovative technologies and emerging trends. •Foundation: The engine that allows us to meet scale and provides efficiency and quality to our clients' digital transformations. Our set of strategic studios includes the following: Artificial Intelligence: Enabling the future today We strive to enable the future today with state-of-the-art techniques, including deep learning, other neural networks and traditional ML approaches,coupled with the increased capacity of machines to understand complex patterns out of data. The portfolio of services we provide through the Studio includes: •Machine Learning: We build solutions powered by ML using traditional approaches (regressions, decision trees, HMM, SVM) and new deeplearning methods. Our focus still relies on a human centric design and, therefore, we apply ML to adapt the Journey to create a seamless andemotionally-engaged experience. We utilize ML to provide an as-good-as-a-human decision process (contextual, adaptive) to delegate low-value-added decisions or alert when a critical decision is needed. •Pattern Recognition: We leverage the power of signal processing (video, images, audio, text or any other type of data), to recognize and understandpatterns. New opportunities are flourishing from the availability of volumes of new data in different forms; together with computer power and newalgorithms. •Natural Language Understanding: Natural Language Understanding ("NLU") enables a computer to understand and generate natural language (eithertyped or spoken). We develop software with NLU capabilities to explore new ways of emotional engagement. We enable users to address software,through different devices, as though the user was addressing another person. Our software applies computational techniques in order to understandthe syntax and semantics of language. 54 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Future of Organizations: Making organizations come alive The Future of Organizations Studio focuses on helping companies with their internal digital transformation and digital corporate culture. The goalof this Studio is to ensure our customers' success by engaging employees and considering them to be one of the most important stakeholders of theorganization. Platforms and apps that integrate and act as the operating system for the organization of the future. We help organizations with their digitaltransformation, enabling them to manage their culture effectively, engaging their employees from day one to ensure success. Consultancy: Humanizing Technology Through our Consultancy Studio, we seek to enable our clients to move quickly and confidently from strategy to execution phases while enhancingtheir overall returns. The portfolio of services we provide through our Consultancy Studio includes: •Customer Insight: We use qualitative and quantitative studies into needs, wants, expectations and ideals to predict future customer states, allowingclients to make smarter strategic decisions. Services include co-insight sessions, lab based, ethnographic, surveys, forms, behavioral tracking andtrend analysis and large scale quantitative studies. •Behavioral Change: Understand and influence user behavior, through the science of collaboration, research and insight to drive process-orientedhuman, environmental and systems change. From channel shift for transport to crime reduction for civic services and smarter health care, our clientsare changing the world for the better. •Product Innovation: Customer-centered rapid evaluation and enhancement of new propositions and existing products through an agile design anditeration process: heuristic evaluation, concepting and story-boarding, low and high-fidelity prototyping, lab and guerilla testing. All run withcustomer and client collaboration sessions, on-site or off-site. •Design Thinking: A way to enable stakeholders to 'think like a customer' and collaboratively develop a shared vision of the ideal future state for thebusiness and customer: co-discovery and co-design, empathy mapping, experience/journey mapping, lego serious play, vision setting. Product Acceleration: Delivering best-in-class digital products Our Product Acceleration Studio utilizes modern product management techniques to ensure products solve the right problems, meet userexpectations, and achieve business value. The portfolio of services we provide through our Product Acceleration Studio includes: •Product Management Discovery: We create a bridge between initial product briefs and actionable implementation plans. Product Managers helpcompanies discover core user problems, define effective solutions, implement product development practices, establish product organizations,evolve product governance and define go-to-market strategies. •Product Management Delivery: Fully engaged product owners who are able to create epics and stories, collaborate with designers and engineers,help teams prioritize work, and evaluate team performance against business value in an agile way. •Product Coaching: Product management coaches help companies establish people-centric product development practices, including skills training,organizational consulting and team definition. 55 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Process Automation: Efficiency driven by technology Our Process Automation Studio delivers solutions that enable our clients to be more efficient, innovative and agile. Companies strive to enhance their efficiency as they grow and competition increases. Our goal is to provide solutions that improve productivity,create competitive advantages, foster innovation and provide agility. We work to establish quick wins that are refined using an iterative approach to delivermore value on each cycle while optimizing throughput. The portfolio of services we provide through our Process Automation Studio includes: •Process Appraisal: An in-depth analysis of the processes is done so that they can be valued and prioritized to outline the best automation strategy. Inorder to have quick wins that deliver actual value to the business we do a joint work with our clients to define measurable criteria that support thedecision on where to start and the set of technologies to use and be successful. •Automated Solutions: Process automation is not just selecting a single tool in the market and automate a flow but rather a conscious analysis of theset of technologies to be used understanding the context on which they will run. Our extensive knowledge of technologies allows us to define theappropriate architecture considering infrastructure and automation needs while leveraging AI and data scraping techniques among more traditionalsolutions. •Process Evolution: Monitoring and governance of automated process is key to improving efficiency. Through the definition of the appropriate set ofmetrics and tools we control the operation identifying bottleneck areas and optimize performance, as well as including new processes to automationstrategy. Agile Delivery: Aligning stakeholders and methodologies to meet business goals. Digital Transformation programs require alignment from the strategic, tactic and support levels as a crucial factor to their success. As a backbone tothese programs, leaders are expected to steer engagement, innovation, effectiveness and commitment from the teams while achieving predictability in termsof timeframe, budget and quality. We create sustainable operations designed to scale and guarantee the lowest cost of ownership. The portfolio of services we provide through our Agile Delivery Studio includes: •Delivery Management: We deliver high value solutions by steering teams into a continuous improvement approach to product development. We setclear and common goals to achieve outstanding results within budgets, with scalable and sustainable operations. •Agile Consultancy: We educate, mentor and enable organizations to capitalize on the principles and competencies found in paradigms such asAgile, Systems Thinking, Lean and others. We support the transition and journey until it reaches a point of self-sustainability. •Management Consulting: We provide consulting services related to processes, quality and performance indicators. We provide visibility foreffective decision making process and PMO Development service for our clients. Our design process is intended to contribute to operational goals. The specialty studios include the following: UX Design: Designing relevant experiences Our UX Design Studio focuses on delivering quality, design, strategy, and production to address worldwide digital challenges. Our designs are basedon observations of consumer behavior and market trends. Our goal is to create concrete and relevant solutions that appeal to both users and businesses. 56 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. The portfolio of services we provide through our UX Design Studio includes: •User Experience: By identifying verbal and non-verbal stumbling blocks, we refine and iterate to create an exceptional user experience.From user research and usability analysis to interactive design, we enhance interactions, information architecture, usability and persuasion.We help our clients inspire their communities, foster adoption and drive conversion results. •Visual Design: We utilize an insightful and conceptual approach to create and execute designs. We develop visual elements of aninterphase and implement a brand personality into the interaction design. We establish relationships with the users by creating emotionalinterfaces and brands based on deep analyses of end-users and market trends. In much the same way that a piece of art appeals to the humaneye, we strive to visually and emotionally engage users. •Service Design: Service design involves the activity of mapping, prototyping and planning cutting-edge product-service systems and howthe actors should interact to bring those omni-relevant experiences to market. From strategic and operations management to businessdesign, we apply a holistic approach to understand, create and orchestrate strategic scenarios, working in collaboration withmultidisciplinary teams. Our service designers co-design with clients and customers translating research insights into actionable plans andviable opportunities for growth. •Industrial Design: Modern style and design must go hand in hand with technology, particularly at a time when consumers have highstandards in terms of the quality of functional and non-functional features. Our practice is focused on creating beautiful and natural designsthat feed all the senses. For many years screens have had all the design focus, but with the introduction of haptics and other feedbackmechanisms, it's key to consider the rest of the senses in the product or experience design. Mobile: Enabling mobility everywhere Whether our clients need to build a new product, mobilize an existing product or maintain an existing solution, which can be native, hybrid or builtthrough cross-compilers, our Mobile Studio is experienced on the latest tools and frameworks to help you reach your business goals. Leveraging on ourexperience from our Agile Pods Methodology, cross-industries knowledge, and a combination of state-of-the-art and traditional user interface tactics, we addvalue when creating or improving our clients' mobile strategy. The portfolio of services we provide through our Mobile Studio includes: •Consultancy: We help organizations move towards the next maturity stage regarding mobility. Based on our experience working with over100 organizations, from startups to fortune-500 companies, we built our consultancy framework to assess organization’s maturity andprovide solutions to deliver high quality mobile products. •Fast Prototyping: Our Fast Prototyping Framework can build a working prototype to validate our clients' business ideas or jumpstart theirprojects to a scalable solution. We utilize proven base tech stalk and platforms to minimizing coding. •App Evolution: We help clients to take control of their legacy projects by incorporating the latest trends and technologies, whether theyneed to switch vendors, update their codebase, migrate between hybrid and native, or rebuild from scratch their existing product. Oursustain framework will detect potential issues on their apps regarding new OS versions or required updates on frameworks they might beusing. •Platform Integration: Most mobile apps require a connection to a backend. While most boutiques fail at integrations, our Studios Modeland extensive experience implementing most API Management Systems, Custom or Out-Of-The-Box Microservices Solutions. •Enhanced Experiences: We take the best of the available technical features to deliver rich and emotional moments using AugmentedReality, Biometric sign-in, Force Touch, Apple/Google Pay, Animations, Coregraphics, Geofencing Services, Rich Notifications or anyspecific technology which is only achievable by building a native custom experience. 57 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. •Hardware Integration: Helping extend client product’s reach outside the main mobile device, we develop integrations with Chromecast,beacons, POS, Printers, Custom Hardware and create standalone experiences for Smart Watches, Apple TV and Android TV/Chromecast. •Complex Engineering: Our team of performance experts develop low level integration with frameworks like NDK or by using C++ toimprove performance on critical transactional applications and develop scalable architectures that will help our clients build the core ofyour suit of mobile products. Gaming: Engaging through play Our Gaming Studio specializes in the design and development of world-class games and digital platforms, which work across console, pc, web,social and mobile channels. We enable our clients to leverage game mechanics by helping them develop a vision and execute an idea through production, launch and operation.We believe that our expertise and experience with some of the most recognized companies in the gaming industry enables us to add value to our customers'businesses. We utilize our experience, creative talent, well-established technology frameworks and processes to scale and foster innovation. The portfolio of services we provide through our Gaming Studio includes: •Game Engineering: We streamline the development process creating feature-rich products around the core intellectual property of ourclients. We co-develop AAA games working directly for world-class video game developers. •Game Experience: Our Gaming Studio is capable of creating all components of a gamified experience. For example, we can create acomplete video-game or apply gamification techniques to a current product, combining game design with user experience to provideexperiences across multiple platforms. We seek to engage users and achieve business goals through fun and play. •Digital Platform Services: We create and expand centralized platforms for cross-platform development. A digital platform consists of acoherent technical offer to access a universe of distant, interactive or non-interactive services which can be broadcasted or supplied on-line. •Virtual & Augmented Reality: Virtual reality extends beyond gaming and entertainment. In the near future, we expect it to becomeomnipresent and a critical component of IT. Augmented reality allows a user to expand his or her mind beyond reality, displayinginformation in the user's field of view where the real and virtual worlds are tightly coupled. Our Gaming Studio provides ideation sessions,customer engagements, market reach and content creation to bring the next generation of technology to our clients' businesses. •Graphics Engineering: We provide services to develop products and tools to bring artists' designs to life. This includes animation, lighting,shading, visualization tools and rendering. •3D & 2D Art: We focus on creating high-end game art for AAA productions. We monitor the latest technical and artistic pipelines as well asthe latest art techniques in order to stay relevant to current industry standards. We provide character and environment art, from theconception stage to the final game ready asset. •e-Sports: We provide an interactive and engaging experience for target audiences. Whether it's virtual reality, second screen or main screen,we combine our engineering, product design and community management solutions to help our clients increase spectators and connectobservers and players. BigData: Turning data into insights In our Big Data Studio, our mission is to empower our clients with a competitive advantage by unlocking the true value of data to create meaningful,actionable and timely business insights. We break down internal data silos that have different data structures, velocities and volumes, and enrich that data with external sources, creating ascalable Enterprise Data Platform, democratizing the data and fostering organizational changes towards a data-driven culture. Our Data Engineers combinedata, business processes, and state-of-the-art IT tools and algorithms that enable businesses to engage in a deeper, interactive and more meaningfulconversation with their data, using visual discovery techniques to reveal hidden patterns and trends and obtain relevant and useful business insights fordecision-making purposes. 58 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. The portfolio of services we provide through our Big Data Studio includes: •Data Architecture: With the widespread usage of devices and the viralization of social networks, massive volumes of digital data are available.Companies want to extract valuable conclusions about their businesses by cross-referencing data with traditional and innovative unstructuredsources. We offer business-aware real-time analytics and enterprise information management services, which include traditional data warehousingusing relational database management systems and next-generation non-relational and distributed database management technology. •Data Science: We utilize mathematical and statistical tools of data science to help our clients "fill the gap" between what they know from their data,and what they would like to know if additional data were available. This includes predictions, optimizations and classifications. •Distributed Platforms: We partner with our clients in successfully executing highly complex strategic software projects, optimizing their architecturedesign and identifying potential bottlenecks early in the process. We give special attention to factors such as adaptability when user base increasesor information volume grows, maintainability along time, providing dynamically scalable software architectures, enforcing data security from theground up, and ensuring transactions are processed within required timeframes to avoid revenue loss. •Data Integration: Creating a scalable Enterprise Data Refinery that can pull and consolidate massive amounts of data from heterogeneous systems isnot an easy task. We provide development services over multiple tools, languages and platforms in order to create data pipelines and workflows withhigh standards of availability, performance and security that will pull, cleanse, enrich and consolidate your company's data. •Data Visualization: Well-designed data visualization and dashboards extend beyond current status and indicators, and synthesize complex sets ofdata into key views, charts and graphs, revealing results in ways that common tools and spreadsheets cannot. The functionality to drill data downand to integrate the view with statistics and business intelligence tools, further the end users' ability to glean insights from masses of numbers. Weenable users to engage in an interactive and more relevant conversation with their data, allowing users to explore the unknown, navigate the dataand discover hidden patterns and trends on their own. •Blockchain: With Blockchain technologies, we focus on helping our customers resolve trust related problems and inefficiencies. We provideresearch and development services over multiple blockchains (Ethereum, Bitcoin, Hyperledger, etc.) and also over several decentralized storagesystems. We are focused on understanding the customer's business and finding how a blockchain can be leveraged to solve a problem. Media OTT: Every pixel, every screen Our Media OTT Studio design, build and launch premium video experiences across every mobile device, OTT box, Smart TV, and Game Console forour media clients. We understand and provide services that support the entire streaming supply chain; from ingest and transcode through to user experience andplayout. We do it across all consumer devices and we help drive user engagement and monetization on each. The portfolio of services we provide through the Studio includes: •Bespoke Development: Our professional services team creates streaming experiences that showcase client’s content and drive business value acrossany screen. •Streaming Strategy: Winning in digital media begins with a deep understanding of industry dynamics, identifying how trends disrupt thecompetitive landscape, and establishing methods to enable and encourage ongoing innovation. Our team of strategists, engineers, delivery managersand designers help media companies turn their content offerings into successful digital businesses. 59 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. •Multi-Screen Design: We closely watch every trend and track the evolving capabilities across all platforms. This ensures we can apply our designphilosophies to create compelling experiences that showcase the content and drive the business value for our clients. •Signal (Platform): Signal enables media companies to reach and engage customers across every screen. It allows them to manage and monetize Liveand VOD content. Publishers can quickly launch these best-in-class experiences and dynamically update content and styles through the SignalPortal. Signal simplifies the OTT workflow and allows companies to focus on their content and business vision. Our cutting edge modularizedtechnology allows our clients to choose between a full service or select items to fit the right need. Internet of Things: Connecting the physical world Our Internet of Things Studio offers technology solutions for the current device ecosystem and additional applications for the internet of things. We help our customers develop their new product ideas and gather information about behavior, activities and sensor-collected data, and thenprocess all the information to develop new services. The portfolio of services we provide through the Studio includes: •IOT Experiences: Our experience in development and open source tools position us with the experience needed to handle new digitalconnected journeys based on current technology. Our engineers are ready to integrate the next generation of devices. •Platforms: Our platforms provide interaction and feedback to and from devices and highly scalable platforms and real time analysis torespond to different scenarios. All of the data produced by wearables and IoT enabled devices can be collected, stored and processed on theappropriate data platform. This enables our customers to extract valuable knowledge and insights by applying the right Big Data strategyand enabling intelligent interactions. •Hardware integration: We assist customers with the connection between sensors and backend services through devices or hardware. Ourteam can handle different approaches ranging from custom made hardware to integration with third party providers. •IoT Consultancy: We help our clients by researching, consulting and advising based in our core expertise in product engineering anddigital transformation. Digital Content: Managing scalable content Our Digital Content Studio focuses on developing digital online strategies through the creation of original and customized products and solutions. We want to empower our clients' businesses by taking care of the complete life-cycle of a digital strategy, from development of user-friendly andappealing content management systems, to the complete go-to-market digital promotion. We also want to work with our clients to develop digital marketingcampaigns, learning solutions, content strategies and engaging audiovisual content that supports their goals. The portfolio of services we provide through the Studio includes: •Content Management Systems: We help our clients deliver an excellent digital experience through the use of platforms. We understand thatour clients' content must reach to the right people on the right devices at the right times. •E-Learning: Through our expertise in innovation, state-of-the-art technology and educational content production we deliver engagingexperiences to enhance the process of learning. 60 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. •Digital Marketing: We provide services to develop digital online strategies focusing on empowering our clients' businesses by creating andimplementing original and customized online marketing solutions. •Video Content Production: We are able to bring ideas to life by creating amazing videos for business and brands, combining agility andquality to help our clients achieve their goals. Lastly, our foundation studios include: Cloud Ops: Delivering products faster Our Cloud Ops Studio combines some of the leading cloud technologies, continuous integration and continuous delivery practices with ourcapabilities to facilitate new and more efficient ways of doing business. Cloud and Dev Ops are independent but mutually reinforcing strategies for delivering business value. Cloud and Dev Ops evolved in response tothree fundamental transformations. First, we are transitioning from a product economy to a service economy. Second, the business environment demands thatcompanies shift their focus from stability and efficiency to agility and innovation. They need to increase delivery frequency and continue their serviceevolution. Third, the digital dimension is filling the physical dimension. The portfolio of services we provide through our Cloud Ops Studio includes: •Cloud: From roadmap definition to managed services, we can support our clients' cloud journey. Working with cloud platforms since 2009, wedeveloped the expertise and framework to deliver consultancy services for cloud adoption strategy, application transformation, disaster recoverydefinition and ongoing support. Our main goal is enabling IT agility with pragmatism that is fully aligned with each client's core businessleveraging Amazon Web Services, Microsoft Azure, Google Compute Platform and OpenStack (including, IaaS, Containers, Serverless technologiesamong others). •Devops: We utilize Dev Ops in our clients' development cycles to enable continuous integration and continuous deployment of their products,allowing production updates several times a day rather than once every few months. This practice also allows improvements in the overall productcycle as it accelerates acceptance testing, and enables business owners to see what the teams are producing in real time, delivering new products andfeatures with a faster time to market. •Cloud Native Patrol: Our Cloud Native Patrol assists our clients to accelerate and support complex cloud native projects. The cloud ecosystem isbecoming very complex, and cloud providers continue to innovate by adding new tools while enriching existing ones. The same is happening withthe whole cloud native landscape (orchestration, service discovery, containers, automation, configuration management, observability, PaaS). CloudNative Patrol addresses the challenges of supporting the complete ecosystem. Quality Engineering: Enabling quality everywhere The success of our clients' businesses is directly tied to the quality of complex and highly integrated software. Our clients' software drivesopportunities, but it also exposes them to new risks. We believe that only a high quality product has a chance of succeeding in today's market. Our Quality Engineering Studio focuses on reducing our clients' business risks. We provide a comprehensive suite of innovative and robust testingservices that ensure high-quality products to meet the needs of demanding, technology-avid users. Cutting edge quality strategies increase test efficiency,decrease time to market and reduce the risks inherent in producing challenging digital journeys. Our "round the clock" approach leverages the close-knit nature of quality assurance across geographies and time-zones to achieve continuoustesting. This approach aligns with build schedules to utilize the onshore, nearshore and offshore teams to their maximum potential. 61 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. The portfolio of services we provide through our Quality Engineering Studio includes: •Functional Testing: We offer comprehensive quality assurance services to ensure that the final system/service delivered to our clients meets andexceeds their business requirements. Our quality control analysts are involved in the software development process from the start of each project,helping clients identify the needs of their audience and prepare for accurate targeting suitability of the products we will be creating together. •Load & Performance Testing: Measuring and assessing the performance of widely used global sites and applications is a technically challenging andmultidisciplinary effort. A comprehensive test strategy needs to consider a broad, real life scenario and needs to analyze each product as it willultimately run. Validations include responsiveness, throughput, scalability, reliability and resource usage. Our practice includes stress testing, loadtesting and performance testing. •Mobile Testing: Supporting multiple devices and platforms, and planning for production monitoring approaches, is necessary to achieve end-to-endquality. We utilize compatibility testing, responsive design testing, test automation and acceptance testing among other practices. •Test Automation: We have deep expertise in providing test automation services and developing test automation solutions and frameworks. Webelieve test automation is a key testing practice to increase test efficiency, reduce time to market and limit human error inherent with manual testing.Test automation is preparing to efficiently handle future requests through smoke testing, regression testing, integration testing, services testing andother automated processes. •A11Y: Todays digital solutions need to provide equal access and equal opportunity to people with disabilities though compliance withaccessibility standards. We help our customers to improve the quality of their digital products (web and mobile solutions) removing barriers thatprevent interactions, ensuring accessibility WCAG 2.0 AA Compliance, Section 508 and ADA. UI Engineering: Building Digital products We specialize in building the next generation of User Interface ("UI") digital products leveraging the latest technologies and architectures, multi-device techniques, big-scale applications, component based systems, intelligent user interfaces and the latest trends in user experience. By providing a set of UI practices and technologies, we create engaging products through interactive interfaces across multiple channels anddevices, independent of platforms and delivering the same experience in a frictionless way. Those interfaces are aware of users, from context to context,device to device and act proactively to make the experience simpler, leaner, faster and suggesting new behaviors based on interactions. We deliver leadingdigital products for users, makings use of tools, frameworks and components, providing a single architecture and codebase with the right functionality in anyplatform. The portfolio of services we provide through the Studio is focused on the integrated delivery of: •Large Scale Web Applications: Omni-channel solutions are needed to power digital transformations. This is done by building responsive andscalable web applications following different approaches, from single page applications to server side rendered applications with a loosely coupled,modular, component based architecture, mobile-first and SEO friendly techniques among other best practices. •Hybrid & Cross-Compiled Development: We create downloadable applications using cutting-edge technologies with access to hardware featuresthat run in multiple native platforms using a combination of JavaScript frameworks. This allow companies to face omni-channel challenges by usinghybrid strategies giving support to mobile devices, kiosks, POS, and others, through a single codebase. •Accessibility: Accessibility considerations need to be built into the everyday practices across the full web product life-cycle from conception andspecification through development and delivery. We have the required expertise to develop an accessibility compliant application according toapplicable regulations. 62 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Scalable Platforms: Supporting reliable products Scalable Platforms have become extremely important in today's digitally connected environment. We provide the architectural base to accelerateomni-channel strategies, improve internal processes and build consistent cross-channel customer experiences to support reliable products. To enable digital products through a robust architecture, we apply our best practices and patterns on the design of a back-end ecosystem, whichallows our clients to accelerate their businesses in an agile way. We have broad experience providing back-end solutions that support scalability, security,availability, performance, quality and high adaptability to internal and external integrations. We focus on complex architecture modeling, microservices andAPI management strategies to accelerate the digital transformation by providing capabilities that businesses need in order to bring systems together, secureintegrations, deliver improved customer experiences and capitalize on new opportunities. The portfolio of services we provide through the Studio is focused on the integrated delivery of: •API Management: In a world where multiple channels are facing different solutions in terms of communications, APIs are powering digitaltransformations and orchestrating across these channels in terms of technologies and industries. We help enterprises embrace an API-centricapproach to grow their digital businesses and seamless experiences. •Microservices: We evolve monolithic architectures to a new architectural style that structures an application as a collection of loosely coupledservices, organized around business capabilities. The microservices architecture enables the continuous delivery/deployment of large, complexapplications. It also empowers organizations to evolve its technology stack fostering an evolutionary model to be ready for new innovativechallenges in the future. •Complex Architecture Modeling: To manage these complex product intricacies in an agile manner, we apply our extensive experience working withbest practices, methodologies and techniques, such as domain driven design, hexagonal, onion, reactive architectures and continuous delivery tohandle business complexity. •Future Commerce: Nowadays, the customer journey has several new engagement touch points across marketing, sales, and services. Traditionalretailers struggle to keep up with them, as times move fast, and there is also a strong need to keep processes efficient and coordinated. This can beachieved with the correct understanding of the business and the implementation of the right technology. Cybersecurity: Making customer platforms safe and secure Our Cybersecurity Studio supports the entire range of services from product conceptualization through execution to ensure that all customerplatforms are safe and secure. As data privacy and security become increasingly top of mind, cyber attacks can increase risk in business for today’s organizations if they don’thave strategies for staying ahead. The portfolio of services we provide through the Studio includes: •Product Security & Compliance: With this service, a security expert assesses customers security needs. This expert collaborates with our digitalsolutions team to ensure needs are met beginning from the functional and design phase of project development, without compromising userexperience. Ultimately, this service is designed to ensure that digital experiences will be secure. •Vulnerability Management: We monitor published security vulnerabilities that could affect our customers’ digital platforms. The team will notifycustomers of the risk and then assesses what to do to contain and fix them. •Application Monitoring: We monitor traffic on users’ digital platforms 24/7 and stay on alert for security attacks. The team handles events with strictpredefined protocols to contain and mitigate potential incidents. Continuous Evolution: Making evolution happen The Continuous Evolution Studio focuses on evolving existing applications and helping our clients to improve the value of their software over timeby aligning business needs with a mix of traditional techniques and new market trends. 63 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Every piece of software built meets a business need for which it was intended, but those needs are not static. Software evolution is a key toimproving value over time, and having the right partner will pave the way to achieving success. As new trends and technologies arise, customer behaviorchanges and market needs must quickly adapt. We retrofit innovation into existing products in order to create continuous engagement among users. Weprovide a new experience with multidisciplinary teams specialized in software evolution and world-class operations designed to support any kind ofapplication after implementation is complete. Our teams ensure quality and efficiency while bringing innovation, optimization, performance improvement,and constant evolution to their products. The portfolio of services we provide through the Studio includes: •ADM2 (ADM Square): The standard ADM process in an organization is key to deal with the changes today’s world is demanding. We enablecompany transformations starting from productive software. This progressive strategy spans four maturity phases while encompassing the culturalshift a company experiments until the changes have been fully embraced in its DNA. •Software Archaeology: Taking over of a product that has had a long life cycle can be challenging without access to the appropriate documentationor team members. Software Archaeology is our way to take control of any software solution, in any condition, at any moment, without a long, hard orexpensive process. By completing a systematic study of remaining material evidence, such as code, tests and documentation recovered, we can gaina clear understanding of the software, as well as the context with which it operates. This enables us to outline a proper plan and roadmap for the teamthat will work on it. •IT Service Management: Our experience with Information Technology Infrastructure Library ("ITIL") helps us cover a full cycle of continuousimprovement by carrying out an assessment of the organization, and subsequently delivering recommendations for implementation, as well assolutions that enable supporting areas to satisfy the company's demand. Managing an internal service desk might not be optimal for mostcompanies, we provide a single point of contact service composed by multidisciplinary teams with specialized processes based on ITIL bestpractices and focused on ensuring the continuity of the ongoing operation. •Software Evolution: Our takeover framework provides a robust set of tools and processes that our teams use in order to gain ownership of the productthey will be working on. Through a detailed assessment, we are able to understand the current situation and define a roadmap to achieve a controlledexecution phase. Then, we introduce new market trends, technologies and innovative solutions to existing products. Our Studio model allows us to optimize our expertise in emerging technologies and related market trends for our clients across a variety ofindustries. Services over Platforms At Globant, we are evolving at the way services are provided with our Services over Platforms strategy. This set of platforms is designed to helpdeliver digital and cognitive transformations in an agile and innovative manner. These products have the flexibility to adapt to our clients’ needs as weprovide microservices to complement them. In this way, many of our Studios create platforms to accelerate the path to our solutions. Among these platforms we can mention, StarMeUp OS fromour FOO Studio. Signal, our platform to accelerate the distribution of content from our OTT Studio. Globant Minds, our AI platform from the AI Studio, andAcamica our online education platform to accelerate the cultural transformation. StarMeUp OS StarMeUp OS is an operating system made up of smart applications that assist organizations with their digital transformations. The goal of thisoperating system is to help employees overcome inherently human limitations and create a space where they can have more meaningful interactions,generating a richer experience and empowering employees to make even more significant contributions. StarMeUp OS is comprised of five solutions: 64 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. StarMeUp: A peer-to-peer recognition platform that strengthens the corporate culture and reinforces organizational values, while providingvaluable insights in real time, such as identifying positive influencers and a better view into organizational network dynamics. BetterMe: Employees can share real-time feedback with anyone else in the organization. It provides an ongoing view of performance and continualopportunities for improvement. BeThere: By sharing photos of significant moments and events, employees can stay connected and informed in an engaging way, no matter wherethey are in the world. TakePart: More actively include employees in the organizational transformation by creating a space for them to suggest, and vote, on new ideas,that lead to more dynamic organizational changes. BriefMe: A platform ideal for communications teams to get the most critical information to employees at the right time through strategically locatedscreens. Signal It enables media companies to reach and engage customers across every screen. It allows them to manage and monetize Live and VOD content. Globant Minds We’ve developed a new operating system for delivering cognitive transformations. With Globant Minds, we have a developed a system thatleverages existing AI algorithms and RPA solutions and selects the optimal algorithm for various situations. For instance, if we need image recognition,instead of training a single platform, Globant Minds will review the available solutions and select the best result option. In this way, we add value to ourcustomers by keeping our platform up to date with new algorithms and AI systems. ACAMICA In 2016, we invested in ACAMICA, an e-learning platform for global companies to run online and personalized academies and private trainingmodules, with an emphasis on user experience and social interactions. Agile Pods Methodology We have developed a software product design and development model, known as Agile Pods. It is designed to better align business and technologyteams. Driven by a culture of self-regulated teamwork and collaboration across skills, partners and country borders. Leveraged across divisions, Agile Pods are dedicated to mature emerging technologies and market trends, and provide a constant influx of maturetalent and solutions that create intellectual property for our clients. They are self-organized teams that work to meet creative and production goals, maketechnology decisions and reduce risk. These teams are fully responsible for creating solutions, building and sustaining features, products or platforms. In addition, savings are delivered to clients due to sustained productivity boosts as the Agile Pods begin to operate at a higher maturity level. Weensure consistency, accountability and replicability by having Agile Pods follow a well-defined set of maturity criteria. Maturity models describe levels ofgrowth and development as follows: Maturity, Quality, Velocity, and Autonomy. Each level acts as a foundation for the next and lays out a path for learningand growth. As Agile Pods evolve from one level to the next, they are equipped with the understanding and tools to accomplish goals more effectively. 65 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Associated metrics guide improvement efforts and generate quantitative and qualitative insights to inform iterative design and planning decisions. Our Delivery Model As of December 31, 2018, we provided our services through a network of 40 delivery centers in 32 cities throughout fourteen countries. Our deliverylocations are in United States (San Francisco, New York, Seattle, Raleigh, Chicago and Dallas), Argentina (Buenos Aires, Tandil, Rosario, Tucumán, Córdoba,Resistencia, Bahía Blanca, Mendoza, Mar del Plata and La Plata), Uruguay (Montevideo), Colombia (Bogotá and Medellín), Brazil (São Paulo), Peru (Lima),Chile (Santiago), México (México City), India (Pune and Bangalore), Spain (Madrid), Belarus (Minsk), Romania (Cluj) and United Kingdom (London). Wealso have client management locations in the United States (San Francisco, New York, Winston-Salem and Miami), Brazil (São Paulo), Colombia (Bogotá),Uruguay (Montevideo), Argentina (Buenos Aires) and the United Kingdom (London). The main administrative offices of our principal subsidiary (which alsoinclude a delivery center) are located in Buenos Aires. Our principal executive office is located in Luxembourg. All of our facilities (with the exceptions ofTucumán and Bahía Blanca) are leased. We also have two offices under construction in Buenos Aires and La Plata. Our cultural affinity with our clientsenables increased interaction that creates close client relationships, increased responsiveness and more efficient delivery of our solutions. As we grow andexpand our organization, we will continue diversifying our footprint by expanding into additional locations globally. We believe our presence in many countries creates a key competitive advantage by allowing us to benefit from the abundance of high-quality talentin the region, cultural similarities and geographic proximity to our clients. Availability of High-Quality Talent We believe that Latin America has emerged as an attractive geographic region from which to deliver a combination of engineering, design, andinnovation capabilities for enterprises seeking to leverage emerging technologies. Latin America has an abundant skilled IT talent pool. According to theScience and Technology Indicator Network (Red de Indicadores de Ciencia y Tecnologia), over 345,000 engineering and technology students havegraduated annually from 2012 – 2016 from universities in Latin America and the Caribbean region. Latin America's talent pool (including Mexico, Brazil,Argentina, Colombia and Uruguay) is composed of approximately 1,000,000 professionals according to different sources, such as Stackoverflow, SmartPlanetand Nearshore Americas. This labor pool remains relatively untapped compared to other regions such as the United States, Central and Eastern Europe andChina. The region's professionals possess a breadth of skills that is optimally suited for providing technology services at competitive rates. Moreover,Argentina and Brazil have been in the top ten of the Gunn Report's Global Index of Creative Excellence in Advertising for the last 17 years. In addition,institutions of higher education in the region offer rigorous academic programs to develop professionals with technical expertise who are competitive on aglobal scale. Furthermore, Latin America has a significant number of individuals who speak multiple languages, including English, Spanish, Portuguese,Italian, German and French, providing a distinct advantage in delivering engineering, design and innovation services to key markets in the United States andEurope. India offers significant graduate talent. According to the Strategic Review of The National Association of Software and Services Companies(NASSCOM), the Indian IT-BPM Industry currently employs around 4 million people. In terms of students, more than 5 million students graduate every year,and almost 15% of these graduates are considered employable by Tier 1/Tier 2 companies. 66 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Government Support and Incentives Argentina Software companies with operations in Argentina whose activities are the creation, design, development, production, implementation or adjustment(upgrade) of developed software systems and their associated documents (in accordance with Section 4 of the Software Promotion Law No. 25,922) mayparticipate in the benefits contemplated by this regime provided they meet at least two of the following requirements: (i) proves expenses in software researchand development activities; (ii) prove existence of a known quality standard applicable to the products or software processes, or the performance of activitiesin order to obtain such known standard recognition; or (iii) export of software (as defined in Section 5 of the Software Promotion Law). The Law wasoriginally enacted in 2004 and extended in 2011 for another five years until 2019, and established a number of incentives to promote Argentine enterprisesengaged in the design, development and production of software. These incentives include: •Fiscal stability throughout the period that the promotion regime is in force. In accordance with Section 7 of the Software Promotion Law, fiscal stabilitymeans the right to maintain the aggregate federal tax rate in effect at the time of the beneficiary's registration in the National Registry of SoftwareProducers through December 31, 2019. Such stability does not comprise import or export duties nor export refunds (Section 7 of Regulatory Decree No.1315/2013). The aggregate federal tax burden included under the fiscal stability benefit is that burden existing on the date of the beneficiary'sregistration before the applicable registry, in accordance with laws and regulations in force by that time; •a 60% reduction in the total amount of corporate income tax as applied to income from the promoted activities This benefit will be applicable both toArgentine-source and non-Argentine-source income, in the terms set forth by the application authority, but it would not be applicable to foreign sourceincome obtained by permanent establishments held abroad by Argentine residents (Section 13 of Regulatory Decree No. 1315/2013); •conversion of up to 70% of certain monthly social security tax (contribution) payments into a tax credit (Section 8 of the Software Promotion Law)during the first year following the beneficiary's registration in the National Registry of Software Producers. After the first year, such percentage will bedetermined annually by the competent authorities for each beneficiary, depending on the beneficiary's degree of compliance with the regime'srequirements (Section 9 of Regulatory Decree No. 1315/2013). This tax credit may not be transferred to third parties. The tax credit can be used to offsetthe beneficiary's income tax liability only up to certain percentage, determined by the ratio of annual software and computer services exports and theaggregate annual sales resulting from promoted activities declared by the beneficiary (Section 8 of the Software Promotion Law); •an exclusion from any restriction on import payments related to hardware and IT components and non-applicability of any value-added tax withholdingor collection regimes (Section 8 of the Software Promotion Law). •in March 2019, a draft bill was introduced for review by the Argentine Congress consisting of a promotional Knowledge Economy regime. The regimecontains tax benefits similar to the ones provided by the Software Promotion Law and is addressed to software companies as well as other companiesinvolved in biotechnology, audiovisual production, exportable professional services, robotic automation, aerospace and satellite industry, among othersindustries. The bill has not been passed yet. Argentine Ministry of Economy approved our subsidiaries as beneficiaries of the Software Promotion Law as following: (i) on October 10, 2006:IAFH Global S.A. and (ii) on April 13, 2007: Sistemas Globales S.A.. As a result, these subsidiaries have enjoyed fiscal stability in their federal tax burden asin effect at the time they were notified of their inclusion in the promotion regime. The Software Promotion Law was modified during 2011 through Law No. 26,692. Even though all benefits awarded under the Software PromotionLaw as originally enacted in 2004 remained in effect, pursuant to Section 10 of the Software Promotion Law (as amended by Law No. 26,692), IAFH GlobalS.A. and Sistemas Globales were obliged to reapply for registration in the National Registry of Software Producers by July 8, 2014 in order to obtain thebenefits established in the Software Promotion Law as described above. 67 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Regulatory Decree No. 1315/2013 introduced additional implementing rules, including, among other matters, further clarifications to qualify for thepromotion regime and specific requirements to be met in order to remain registered in the National Registry of Software Producers during the years after suchregistration has taken place. These requirements include, among others, minimum annual revenue, minimum percentage of employees involved in thepromoted activities, minimum aggregate amount spent in salaries paid to employees involved in the promoted activities, minimum research and developmentexpenses and the filing of evidence of software-related services exports. In addition, Regulatory Decree No. 1315/2013 states that the 60% reduction incorporate income tax provided under the Software Promotion Law shall only become effective as of the beginning of the fiscal year after the date on whichthe applicant is accepted for registration in the National Registry of Software Producers. The implementing regulation also provides that upon the formalapproval of an applicant's registration in the National Registry of Software Producers, any promotional benefits previously granted to such person under theSoftware Promotion Law as originally enacted in 2004 shall be extinguished. Finally, Regulatory Decree No. 1315/2013 delegates authority to the Secretaryof Industry and AFIP to adopt "complementary and clarifying" regulations in furtherance of the implementation of the Software Promotion Law. On March 11, 2014, AFIP issued General Resolution No. 3,597, which provides that, as a further prerequisite to participation in the SoftwarePromotion Law, exporters of software and related services must register in a newly established Special Registry of Exporters of Services (Registro Especial deExportadores de Servicios). According to the abovementioned regulations, on March 14 and May 28, 2014, our Argentine subsidiaries IAFH Global S.A. and Sistemas GlobalesS.A., respectively, were accepted for registration in the Special Registry of Exporters of Services. On June 25, 2014, our Argentine subsidiaries IAFH Global S.A. and Sistemas Globales S.A. applied for registration in the National Registry ofSoftware Producers. The Secretary and Subsecretary of Industry issued rulings approving registration in the National Registry of Software Producers of certainof our subsidiaries as follows: (i) Sistemas Globales S.A. on March 18, 2016 and (ii) IAFH Global S.A. on April 13, 2015. In each case, the ruling made theeffective date of registration retroactive to September 18, 2014 and provided that the benefits enjoyed under the Software Promotion Law as originallyenacted were not extinguished until the ruling goes into effect (which have occurred upon its date of publication in the Argentine government's officialgazette on before mentioned dates). Uruguay In 1988, Law No. 15,921 created Uruguay's Free Trade Zone regime allowing any type of industrial, commercial, or service activity to be carried outin a specifically delimited areas of the Uruguayan territory and be performed outside Uruguay. The main benefits are the following: • Almost full tax exemption (Corporate Income Tax "IRAE", Net Wealth Tax-IP, Value Added Tax – VAT and several withholding taxes) and customsduties exemption; • Foreign employees may opt out of the Uruguayan social security system and, with regard to personal income tax, opt to be subject to Non-ResidentsIncome Tax at a 12% flat rate instead of Individual Tax; On December 8, 2017, Uruguay’s Executive Power enacted Law No. 19,566, introducing changes to Law No. 15,921, The new Law allows servicesrendered to third countries from the Free Trade Zone to also be rendered to corporate income taxpayers inside Uruguayan, non-Free Trade Zone territory. Our subsidiary in Uruguay, Sistemas Globales Uruguay S.A., is situated in a Free Trade Zone and is eligible for the fiscal benefits. Additionally, according to the provisions set forth in Decree No. 150/007, income from software production and related services is IRAE exempt,provided they are completely used abroad. Said exemption includes development, implementation at client’s site, version upgrading and correction,customization, quality testing and certification, software maintenance, training and advising. Related services refer to hosting, call center, outsourcing,marketing and other services, whenever software is the main purpose, even when said software has not been developed by the service provider. In this context, services provided by our subsidiary in Uruguay, Difier, are exempt from income tax. 68 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. India In India, under the Special Economic Zones Act of 2005, the services provided by export-oriented companies within Special Economic Zones (each,a "SEZ") are eligible for a deduction of 100% of the profits or gains derived from the export of services for the first five years from the financial year in whichthe company commenced the provision of services and 50% of such profits or gains for the five years thereafter. Companies must meet the conditions underSection 10AA of Income Tax Act to be eligible for the benefit. Other tax benefits are also available for registered SEZ companies. Some locations of our Indian subsidiary are located in a SEZ and have completed the SEZ registration process. Consequently, we started receivingthe tax benefit on August 2, 2018. With the growth of our business in an SEZ, our Indian subsidiary may be required to compute its tax liability underMinimum Alternate Tax ("MAT") in future years at the current rate of approximately 21.34%, including surcharges, as its tax liability under the general taxprovisions may be lower compared to the MAT liability. Belarus The HTP was established in Minsk in 2005 to promote the IT industry in Belarus. The HTP is located east of Minsk and has a special legal regime ineffect until 2020. A legal entity and an individual entrepreneur receive HTP resident status if their activities include: analysis and design of information systems andsoftware; data processing based on client or proprietary software, fundamental and applied research, experimental R&D in the field of natural and technicalsciences (R&D involving HTP activity) and utilization of R&D results, among others. HTP residents pay 1% of their revenue to the HTP Administration and enjoy the following benefits: •Exemption from Corporate Income tax and Value Added Tax on the sale of goods, work or services or from the transfer of property rights in Belarus. •Exemption from land tax and real estate tax on properties that are in the HTP. •Payments by HTP residents to foreign companies in the form of dividends, royalty and interest are subject to withholding tax at a rate of 5%. •Dividend payments are not subject to an offshore duty; On December 21, 2017, the President of the Republic of Belarus published the Decree No. 8, which extends the duration of the HTP’s tax incentivesand the special legal regime until January 1, 2049. Our subsidiary located in Belarus is a HTP resident and currently benefits from the tax holidays and will continue with exemption as long as theregime remains in effect. Methodologies and Tools Effectively delivering the innovative software solutions that we offer requires highly evolved methodologies and tools. Since inception, we haveinvested significant resources into developing a proprietary suite of internal applications and tools to assist us in developing solutions for our clients andmanage all aspects of our delivery process. These applications and tools are designed to promote transparency, and knowledge-sharing, enhance coordinationand cooperation, reduce risks such as security breaches and cost overruns, and provide control as well as visibility across all stages of the project lifecycle, forboth our clients and us. Our key methodologies and tools are described below. 69 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Agile Development Methodologies See "— Item 4.B — Business Overview — Our Services — Agile Pods Methodologies." Quality Management System We have developed and implemented a quality management system in order to document our best business practices, satisfy the requirements andexpectations of our clients and improve the management of our projects. We believe that continuous process improvement produces better software solutions,which enhances our clients' satisfaction and adds value to their business. Our quality management system is certified under the requirements of the international standard ISO 9001:2015, the CMMI Maturity Level 3process areas (which indicates that processes are well characterized and understood, and are described in company standards, procedures, tools and methods)and PMI by implementing the following practices: •Assuring that quality objectives of the organization are fulfilled; •Defining standard processes, assets and guidelines to be followed by our project teams from the earliest stages of the project life cycle; •Continuously evaluating the status of processes in order to identify process improvements or define new processes if needed; •Objectively verifying adherence of services and activities to organizational processes, standards and requirements; •Providing support and training regarding the quality management system to all employees to achieve a culture that embraces quality standards; •Informing related groups and individuals about tasks and results related to quality control improvement; •Raising issues not resolvable within the project to upper management for resolution; and •Periodically gathering and analyzing feedback from our clients regarding our services to learn when we have met expectations and where there is roomfor improvement. Since 2013, Globant certified ISO 27001, a standard that provides a model for establishing, implementing, operating, monitoring, reviewing,maintaining, and improving an information security management system (ISMS). The process of certifying ISO 27001 ensures that ISMS is under explicitmanagement control. In 2016, we migrated successfully to the ISO 27001:2013. Glow In order to manage our talent base, we have developed a proprietary software application called Glow. Glow is the central repository for allinformation relating to our Globers, including academic credentials, industry and technology expertise, work experience, past and pending projectassignments, career aspirations, and performance assessments, among others. Every Glober can access Glow and regularly update his or her technical skills. We use Glow as a management tool to match open positions on Studio projects with available Globers, which allows us to staff project teams rapidlyand with the optimal blend of industry, technology and project experience, while also achieving efficient utilization of our resources. We believe, based onmanagement's experience in the industry, that we are one of few companies in our industry to employ such a tool for this purpose. Accordingly, we believeGlow provides us with a significant competitive advantage. Clients At Globant, we focus on delivering innovative and high value-added solutions that drive revenues and brand awareness for our clients. We believethat our approach deepens our relationships and leads to additional revenue opportunities. We also target new clients by showcasing our engineering, designand innovation capabilities along with our deep understanding of digital journeys, emerging technologies and related market trends. 70 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Our clients include primarily medium- to large-sized companies based in the United States, Europe, Asia and Latin America operating in a broadrange of industries including Media and Entertainment, Professional Services, Technology and Telecommunications, Travel and Hospitality, Banks,Financial Services and Insurance, and Consumer, Retail and Manufacturing. We believe clients choose us based on our ability to understand their businessand help them drive revenues, as well as our innovative and high value-added business proposals, tailored Studio-based solutions, and our reputation forhigh quality execution. We have been able to grow with and retain our clients by merging their industry knowledge with our expertise in the latest markettrends to deliver tangible business value. We typically enter into a master services agreement (or MSA) with our clients, which provides a framework for services and a statement of work todefine the scope, timing, pricing terms and performance criteria of each individual engagement under the MSA. We generate 45% of our revenue from long-term contracts with terms greater than 24 months. During 2018, 2017 and 2016, our ten largest clients based on revenues accounted for 44.0%, 41.9% and 46.5% of our revenues, respectively. Ourtop client for the years ended December 31, 2018, 2017 and 2016, Walt Disney Parks and Resorts Online in 2018 and 2017, and Southwest Airlines Co. in2016, accounted for 11.3%, 10.2% and 9.7% of our revenues, respectively. The following table sets forth the amount and percentage of our revenues for the years presented by client location: Year ended December 31, 2018 2017 2016 (in thousands, except percentages) By Geography North America $407,090 77.9% $325,614 78.8% $260,923 80.8%Europe 46,240 8.9% 38,484 9.3% 29,306 9.1%Asia 3,067 0.6% 700 0.2% 1,265 0.4%Latin America and other 65,913 12.6% 48,641 11.8% 31,362 9.7%Revenues $522,310 100.0% $413,439 100.0% $322,856 100.0% The following table shows the distribution of our clients by revenues for the years presented: Year ended December 31, 2018 2017 2016 Over $5 Million 21 18 11 $1 - $5 Million 69 64 49 $0.5 - $1 Million 39 45 41 $0.1 - $0.5 Million 86 82 88 Less than $0.1 Million 158 147 151 Total Clients 373 356 340 Sales and Marketing Our growth strategy is based on four pillars: (i) leveraging our broad expertise; (ii) growing within existing clients; (iii) acquiring new clients; and(iv) pursuing strategic acquisitions. Our expertise and Studio approach help us expand the portfolio and practices we offer to our clients. Our acquisitions arepursued with the aim of fulfilling strategic goals, such as growing into a new geography (e.g., Nextive, TerraForum, BlueStar Peru, Clarice, Small Footprint)or the expansion of specializations (e.g. Accendra, Openware, Huddle, Dynaflows, WAE, L4, Difier, Ratio, PointSource). 71 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Under our multi-pronged, integrated sales and marketing strategy, our senior management, sales executives, sales managers, account managers andengagement managers work collaboratively to target, acquire and retain new clients and expand our work for existing clients. Our sales and marketing team,currently comprised of 60 sales personnel and 22 marketing personnel, has broad geographic coverage with commercial offices located in Buenos Aires,Bogotá, Montevideo, São Paulo, London, Madrid, Boston, New York, Miami and San Francisco. Beyond leveraging our broad expertise, our sales strategy is driven by three fundamentals: retain, develop and acquire ("RDA"). The retention ("R")component is focused on maintaining our wallet share with existing accounts through flawless execution on our engagements. The development ("D")component emphasizes developing existing client relationships by significantly expanding our wallet share and capturing business from our competitors.The acquisition ("A") component targets new client accounts. Through our RDA strategy, as well as marketing and branding events, we are able to acquirenew or expand existing engagements in our large and growing addressable market. New Clients We seek to create relationships with strategic clients through existing client referrals or through our multi-tiered approach. Our approach begins byidentifying industries and geographic locations with solid growth potential. Once potential clients are identified, we seek to engage the market-facingmanagement personnel of those companies instead of their IT divisions, which allows us to get a better understanding of the prospect's business model beforeengaging with its IT personnel. The focus on an enterprise's revenue drivers allows us to highlight the value of our services in meeting our client's businessneeds, thereby differentiating us. Our account sales teams are made up of sales executives and sales managers, and follow specific guidelines for managing opportunities whencontacting potential new clients. Before a sales team approaches a prospective client, we gather significant intelligence and insight into the client's potentialneeds, creating a specific value proposition for discussion during the engagement process. Additional opportunities resulting from the planned targetedengagement are gathered and tracked. Once an appropriate opportunity has been identified and confirmed with the client, our sales team performs accountand competition mapping and enlists internal industry and subject matter experts as well as pre-sales engineers from all of the participating Studios. We thengenerate proposals to present to and negotiate with the client. Once we have secured the engagement, our sales executives work closely with the Globantleadership team, partners and subject matter experts from our Studios to ensure that we exceed our new client's expectations. From time to time, we use ideation sessions and discovery engagements in our pre-sales process. During the discovery engagements we meet withclients to discuss their goals and develop creative solutions. The discovery engagement sessions help us discover our clients' main objectives, even if thoseobjectives are not explicitly stated. These sessions are critical in helping us to offer solutions that will adapt to our clients' needs and wishes. This allows usto showcase our expertise in emerging technologies to the prospective client while also allowing us to generate a significant number of possible future clientopportunities. Existing Clients Once we have established the client relationship, we are focused on driving future growth through increased client loyalty and retention. Weleverage our historical successes with existing clients and our relationships with our clients' key decision-makers to cross-sell additional services, therebyexpanding the scope of our engagements to other departments within our clients' organizations. We seek to increase our revenues from existing clientsthrough our account managers, technical directors, program managers, leadership team, Studio partners, and subject matter experts. Since 2016, we introduced a new model that intends to reshape our go-to-market strategy to scale our company in the coming years, called 50Squared. The main goal of this approach is to focus our team on the top 50 high potential accounts that have the capacity to grow exponentially over time.To do so, we have appointed our most senior people from Sales, Technology and Operations to lead these teams. This account focus has become the mostimportant pillar of our go-to-market strategy and every account within Globant now has the goal to become part of this program. 72 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. We undertake periodic reviews to identify existing clients that we believe are of strategic importance based on, among other things, the amount ofrevenue we generate from the client, as well as the growth potential and brand recognition that the client provides. Marketing - Stay Relevant To fully implement a digital and cognitive transformation, we also help our customers stay relevant within their industries and audiences byproviding helpful information and initiatives to understand their users’ environment, competitors and behavior. With research, SME gatherings, webinars,workshops and conferences, our thought leaders offer valuable insights to help organizations create valuable and emotional experiences for the audience. As of December 31, 2018, our marketing department, Stay Relevant, is based in Argentina, Europe, India and the United States. This team promotesour brand through a variety of channels, including the following: •Blog: The blog http://stayrelevant.globant.com/is a great way to explore content on the latest trends and best practices in the different industries wework with. •Sentinel Report: the goal of the sentinel report is to provide insightful evidence of consumer behavior and market trends that ignite strategicthinking. •Webinars: Our webinars explore different trends and technologies in depth showcasing views from experts in the field. •CONVERGE: Our series of events that bring together some of the best creative minds in the industry for one amazing day of igniting stories,inventive ideas, learning experiences, and "wow" technology showcase that enable attendees to re-think the new ways they do business. They existin full day format, such as CONVERGE New York, CONVERGE Buenos Aires, and CONVERGE Medellin and in short format, such as CONVERGExLondon and CONVERGEx Madrid. •Videos and other communications channels: We develop different types of communication pieces to convey trends and other information thatsupport our views of the future. •Events: We host events catered to many audiences, from small events for specific guests or partners to large events that welcome the community infull. Each event looks to bring exciting speakers and networking possibilities. •Books: Our experts have written the following books, “Embracing the Power of AI. A gentle CXO Guide” will help you demystify deep learning,machine learning, and artificial intelligence―and embrace the augmented intelligence revolution ahead. “The Never Ending DigitalJourney”provides readers with the concepts and steps needed to create successful user experiences. The authors look ahead and explore digitalscenarios of the future. Competition The markets in which we compete are changing rapidly. We face competition from both global IT services providers as well as those based in theUnited States. We believe that the principal competitive factors in our business include: the ability to innovate; technical expertise and industry knowledge;end-to-end solution offerings; reputation and track record for high-quality and on-time delivery of work; effective employee recruiting; training andretention; responsiveness to clients' business needs; scale; financial stability; and price. We face competition primarily from: •large global consulting and outsourcing firms, such as Accenture, Sapient, Thoughtworks and Epam; •digital agencies and design firms such as Sapient, Razorfish, RGA and Ideo; 73 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. •traditional technology outsourcing IT services providers, such as Cognizant Technology Solutions, EPAM Systems, GlobalLogic, Aricent,Infosys Technologies, Mindtree HCL, Tata, Wipro and Luxoft; and •in-house product development departments of our clients and potential clients. We believe that our focus on creating software that appeals and connect emotionally with millions of consumers positions us well to competeeffectively in the future. However, some of our present and potential competitors may have substantially greater financial, marketing or technical resources;may be able to respond more quickly to emerging technologies or processes and changes in client demands; may be able to devote greater resources towardsthe development, promotion and sale of their services than we can; and may make strategic acquisitions or establish cooperative relationships amongthemselves or with third parties that increase their ability to address the needs of our clients. Intellectual Property Our intellectual property rights are important to our business. We rely on a combination of intellectual property laws, trade secrets, confidentialityprocedures and contractual provisions to protect the investment we make in research and development. We require our employees, independent contractors,vendors and clients to enter into written confidentiality agreements upon the commencement of their relationships with us. We customarily enter into nondisclosure agreements with our clients with respect to the use of their software systems and platforms. Our clientsusually own the intellectual property in the software solutions we deliver. Furthermore, we usually grant a perpetual, worldwide, royalty-free, nonexclusive,transferable and non-revocable license to our clients to use our preexisting intellectual property, but only to the extent necessary in order to use the softwaresolutions we deliver. We have developed a number of proprietary internal tools that we use to manage our projects, build applications in specific software technologies,and assess software vulnerability. These tools include Glow, Nails, and our Service Over Platforms (SoP). Our registered intellectual property consists of the trademark "Globant" (which is registered in twelve jurisdictions, including the United States andArgentina), certain other trademarks related to our service offerings and products, and three software patents granted in the United States in favor of ourUnited States subsidiary Globant, LLC. We do not believe that any individual registered intellectual property right, other than our rights in our name andlogo, is material to our business. Facilities and Infrastructure As of December 31, 2018, we provided our services through a network of 40 offices in 32 cities throughout fourteen countries. Our deliverylocations are in United States (San Francisco, New York, Seattle, Raleigh, Chicago and Dallas), Argentina (Buenos Aires, Tandil, Rosario, Tucumán, Córdoba,Resistencia, Bahía Blanca, Mendoza, Mar del Plata and La Plata), Uruguay (Montevideo), Colombia (Bogotá and Medellín), Brazil (São Paulo), Peru (Lima),Chile (Santiago), México (México City), India (Pune and Bangalore), Spain (Madrid), Belarus (Minsk), Romania (Cluj) and United Kingdom (London). Wealso have client management locations in the United States (San Francisco, New York, Winston-Salem and Miami), Brazil (São Paulo), Colombia (Bogotá),Uruguay (Montevideo), Argentina (Buenos Aires) and the United Kingdom (London). The main administrative offices of our principal subsidiary (which alsoinclude a delivery center) are located in Buenos Aires. Our principal executive office is located in Luxembourg. All of our facilities (with the exceptions ofTucumán and Bahía Blanca) are leased. We also have two offices under construction in Buenos Aires and La Plata. The table below breaks down our locations by country and city and provides the aggregate square footage of our locations in each city as ofDecember 31, 2018. 74 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Country City Number ofOffices Square FeetArgentina Bahía Blanca 1 6,986 Argentina Buenos Aires 3 111,191 Argentina Córdoba 2 37,200 Argentina La Plata 1 17,222 Argentina Mar del Plata 1 20,451 Argentina Mendoza 1 3,229 Argentina Resistencia 1 9,688 Argentina Rosario 2 20,678 Argentina Tandil 2 11,765 Argentina Tucumán 1 21,689 Brazil Sao Paulo 1 7,804 Chile Santiago 1 8,245 Colombia Bogotá 2 85,810 Colombia Medellín 2 70,590 India Bangalore 1 4,273 India Pune 1 129,877 UK London 1 2,756 Mexico Mexico City 2 66,974 Peru Lima 1 7,535 Spain Madrid 1 6,986 United States New York 1 7,707 United States San Francisco 1 4,844 United States Seattle 1 25,489 United States Miami 1 151 United States Dallas 1 6,771 United States Chicago 1 2,691 United States Raleigh 1 27,480 United States Winton-Salem 1 3,531 Luxembourg Luxembourg 1 150 Uruguay Montevideo 1 26,974 Belarus Minsk 1 6,254 Romania Cluj 1 8,396 Total 40 771,387 Regulatory Overview Due to the industry and geographic diversity of our operations and services, our operations are subject to a variety of rules and regulations, andseveral Latin America countries, the United States, Europe and India federal and state agencies regulate various aspects of our business. See "RiskFactors — Risks Relating to Our Business and Industry — Our business results of operations and financial condition may be adversely affected by the variousconflicting and/or onerous legal and regulatory requirements imposed on us by the countries where we operate". If we are not in compliance with applicablelegal requirements, we may be subject to civil or criminal penalties and other remedial measures, which could adversely affect our business, financialcondition and results of operations." We benefit from certain tax incentives promulgated by the Argentine, Uruguayan, Indian and Belarus governments. See "— Our DeliveryModel — Government Support and Incentives." 75 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Argentine Taxation The following is a summary of the material Argentine tax considerations relating to our operations in Argentina and it is based upon laws,regulations, decrees, rulings, income tax conventions (treaties), administrative practice and judicial decisions in effect as of the date of this annual report.Legislative, judicial or administrative changes or interpretations may, however, be forthcoming. Any such changes or interpretations could affect the taxconsequences to us, possibly on a retroactive basis, and could alter or modify the statements and conclusions set forth herein. This summary does not purportto be a legal opinion or to address all tax aspects that may be relevant to our operations in Argentina. Software Promotion Law The Software Promotion Law (No. 25,922) sets forth a promotional regime for the software industry that remains in effect until December 31, 2019.On May 2018, a bill to extend the promotional regime until year 2030 was introduced for its treatment by the Argentine Congress. However, such bill has notbeen passed yet. Argentine Ministry of Economy approved our subsidiaries as beneficiaries of the Software Promotion Law as following: (i) on October 10, 2006:IAFH Global S.A. and (ii) on April 13, 2007: Sistemas Globales S.A. For further discussion of the Software Promotion Law, see "Business Overview — OurDelivery Model — Government Support and Incentives". Knowledge Economy Law In March 2019, a draft bill of a promotional Knowledge Economy regime was submitted for review by the Argentine Congress, which contains taxbenefits similar to the ones provided by the Software Promotion Law. This new regime is more comprehensive than the Software Promotional Law, since it isaddressed to software companies as well as other companies involved in biotechnology, audiovisual production, exportable professional services, roboticautomation, aerospace and satellite industry, among others. The bill sets forth that the promotional regime will become effective as of January 1, 2020 untilDecember 31, 2029. In order to be allowed to enjoy the benefits derived from the regime, the beneficiaries must comply with certain requirements and conditionsdescribed in the bill. The tax benefits granted under this bill include: (a) fiscal stability (“estabilidad fiscal”) on federal taxes for the term of the regime; (b)reduction of social security contributions; (c) granting of a one-time transferable tax credit equivalent to 1.6 times the amount to be paid for social securitycontributions, which may be used to cancel Income Tax and Value Added Tax and their advance payments; (d) a reduced tax rate of 15% for income tax; and(d) the exclusion from certain domestic withholding regimes related to Value Added Tax. The bill has not been passed yet. Income Tax The Argentine Income Tax Law No. 20,628, as amended ("ITL"), establishes a federal tax on the worldwide income of Argentine residentindividuals, legal entities incorporated in Argentina and Argentine branches of foreign entities. On the income earned by Argentine residents from activitiesabroad, any payment of foreign taxes can be taken as a credit against payment of the applicable Argentine tax. However, the credit may only be applied to theextent that the foreign tax does not exceed the Argentine tax. Income tax is payable on the net income made in a given fiscal year. Losses incurred during anyfiscal year may be carried forward and set off against taxable income obtained during the following five fiscal years Non-Argentine residents and legal entities without a permanent establishment in Argentina (“Foreign Beneficiaries”) are taxed only on income fromArgentine sources. Based on the ITL, income will be considered as sourced in Argentina when it is made from assets located, placed or used in Argentina, orfrom the performance of any act or activity in Argentina that produces an economic benefit, or from events occurring in Argentina On December 29, 2017, the Argentine government enacted Law No. 27,430 (the Tax Reform Law” or “TRL”), a comprehensive tax reform thatbecame effective on January 1, 2018. Specifically, Law No. 27,430 introduced amendments to income tax (both at corporate and individual levels), valueadded tax ("VAT"), tax procedural law, criminal tax law, social security contributions, excise tax, tax on fuels and tax on the transfer of real estate. 76 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Until the enactment of the TRL, the ITL set forth that Argentine resident companies and branches of non-Argentine entities were taxed at corporatelevel on their worldwide income at a rate of 35% on net profits and dividends distributions were made -in principle- on a tax-free basis. The TRL sets forth theprogressive reduction of the tax rate of 35% to a 30% applicable to the fiscal periods starting on January 1st, 2018 until December 31st, 2019; and to a 25%applicable to the fiscal periods starting on January 1st, 2020 onwards; but establishes that dividends or other profits distributed to Argentine residentindividuals and Foreign Beneficiaries would be subject to taxation. Therefore, as of January 1, 2018, income tax on Argentine resident companies andbranches of non-Argentine entities applies in two stages: (i) a first stage charged on the corporate level (at a tax rate of 30% or 25%, depending on the fiscalperiod involved, as explained above); and (ii) a second stage charged on the shareholder or owner level -when being an Argentine resident individual or aForeign Beneficiary- (at a tax rate of 7% or 13%, according to the fiscal period from which the distributed profit derived). Argentine resident individuals are taxed on a sliding scale from 5% to 35%, depending on their net income during the fiscal year. However, incomefrom the transfer of shares, representative securities and deposit certificates shares and any type of corporate participations, including mutual funds shares andrights over trusts and similar contracts, digital currencies, securities, bonds and other securities, is subject to tax at a rate of 15% on the net income. Same taxrate (15%) applies on the income derived from the sale of real estate or transfer of property rights. Finally, interests, other returns or income derived from thedisposal of government securities, corporate notes, debt securities, shares in mutual funds, and digital currencies are subject to tax a rate of 5% or 15%depending on the type of security. Argentine resident individuals’ profit derived from the purchase, exchange, or disposal of shares, securities, deposit certificates shares or corporateparticipations is exempted of income tax provided that such operations are carried out through stock exchanges or markets authorized by the ArgentineSecurities Commission (“CNV”, after is acronym in Spanish). Foreign Beneficiaries are subject to withholding tax on any income or gain deemed by the ITL to be from an Argentine source. To determine theeffective withholding rate, a 35% rate is applied to a presumed net income provided by the ITL that varies depending on the type of income. For certain typesof income, the ITL allows the Foreign Beneficiaries to opt to apply a 35% rate to the real gain obtained in the transaction. However, income derived from the sale, exchange or other disposition of shares, securities, deposit certificates shares and any type of corporateparticipations of an Argentine company obtained by Foreign Beneficiaries is subject to income tax, at the following tax rates: (i) if the seller is located in a socalled “cooperative jurisdiction”, 15% on the net gain or 13.5% on the gross amount of the transaction, at the option of the seller; or (ii) if the seller is locatedin a non-cooperative jurisdiction, 35% on the net gain or 31.5% on the gross amount of the transaction, at the option of the seller. Moreover, interests, otherreturns or any income derived from the disposal of government securities, corporate notes, debt securities, shares in mutual funds, and digital currencies aresubject to tax a rate of 5% or 15% depending on the type of security and as long as the seller is located in a cooperative jurisdiction. The ITL (as amended by the TRL) provides an exemption to any income obtained by Foreign Beneficiaries, to the extent that they do not reside inand the funds do not arise from non-cooperative jurisdictions, on: (i) any income derived from the sale of shares provided that such operations are carried outthrough stock exchanges or markets authorized by the CNV; (ii) interests, returns and any income derived from the sale of public bonds (i.e., Governmentbonds), negotiable obligations (corporate debt bonds) and share certificates issued abroad that represent shares issued by Argentine companies (i.e., ADRs) Finally, the ITL establishes an income tax on the indirect transfer of assets located in Argentina. In particular, the tax will be triggered on the sale ortransfer by nonresidents of shares by foreign beneficiaries or other participations in foreign entities when the following two conditions are met: (i) at least30% of the value of the foreign entity is derived from assets located in Argentina (at the moment of the sale or during the 12 prior months); and (ii) theparticipation being transferred represents (at the moment of the sale or during the 12 prior months) at least 10% of the equity of the foreign entity. 77 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. The applicable rate will generally be 15% (calculated on the actual net gain or a presumed net gain equal to 90% of the sale price) of theproportional value that corresponds to the Argentine assets. Additional guidance about the calculation mechanisms has not been issued. The tax on indirect transfers will only apply to participations in Foreign Beneficiaries acquired after the entry into force of the TRL. Moreover, itwill not apply if the taxpayer proves that the transfer took place within the same economic group, in accordance with requirements established in the ITLRegulatory Decree As explained above, payments from Argentina to Foreign Beneficiaries representing an Argentine source of income (i.e., royalties, interest, etc.) aregenerally subject to income tax withholding levied at different rates depending on the type of income. For example, cross-border royalty payments aresubject to withholding at an effective rate of 21%, 28% or 31.5% depending on whether the involved technology is available in Argentina and the relevantagreement is registered before Instituto Nacional de Propiedad Intelectual (“INPI” after its Spanish acronym), the Argentine organism in charge of registrationany intellectual property. Payments related to software licenses are in general subject to a 31.5% tax withholding rate. In addition, interest payments aregenerally subject to withholding at a rate of 15.05%if the lender is a banking or financial institution which it is under the supervision of the relevantArgentine Central Bank or equivalent authority and is located in a jurisdiction which is not considered a nil or low-tax jurisdiction or in a jurisdiction that isparty to an exchange of information treaty with Argentina and, as a result of the application of its internal regulations, cannot refuse to disclose informationto the Argentine Tax Authority on the basis of bank or stock secrecy rules, and 35% in all other cases A Convention for the Avoidance of Double Taxation (“DTT”) signed between Argentina and the receiving country may provide certain reductionsin the domestic rates applicable to Foreign Beneficiaries obtaining Argentine-source income (such as interest, dividends, royalties, capital gains, etc.). Thefollowing jurisdictions have DTTs currently in force with Argentina: Australia, Belgium, Bolivia, Brazil, Canada, Chile, Denmark, Finland, France, Germany,Italy, Mexico, Norway, Russia, Spain, Sweden, Switzerland, The Netherlands and the United Kingdom. Moreover, on year 2018 the Executive Power ofArgentina signed DTTs with Qatar, Turkey and China, but they are pending of approval by the Argentine Congress. Please note there is no DTT currently inforce with the United States of America. Tax on Presumed Minimum Income This tax applies to assets of Argentine companies. The tax is only applicable if the total value of the assets is above 200,000 Argentine pesos at theend of the company's fiscal year, and is levied at a rate of 1% on the total value of such assets. The amount of the tax paid on presumed minimum income isallowed as a credit toward income tax. Furthermore, to the extent that this tax cannot be credited against normal corporate income tax, it may be carriedforward as a credit for the following ten years. Shares and other capital participations in the stock capital of entities subject to the minimum presumed incometax are exempted from the tax on presumed income. Law No 27,260, published in the Argentine government's official gazette on July 22, 2016, eliminates the Minimum Assumed Income Tax for fiscalyears beginning on January 1, 2019. Value-Added Tax The value-added tax applies to the sale of goods, the provision of services and importation of goods. Under certain circumstances, services renderedoutside of Argentina, which are effectively used or exploited in Argentina, are deemed to be rendered in Argentina and, therefore, subject to value-added tax.The current value-added tax general rate is 21%. Certain sales and imports of goods, such as computers and other hardware, are, however, subject to value-added tax at a lower tax rate of 10.5%. The sale of the shares held in Argentine or foreign companies is not subject to value-added tax. Services rendered in Argentina, which are effectively used or exploited abroad, qualify as “export services” and are not subject to VAT. The effectiveutilization or exploitation is verified with the immediate utilization or the first act of disposal of the service by the recipient even when, if appropriate, thelatter intends such service for consume. 78 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Law No. 27,346 published in the Argentine government's official gazette on December 27, 2016, modifies the value-added tax law and creates thefigure of substitute taxpayer for the payment of the tax corresponding to foreign residents who render services in Argentina. Substitute taxpayers will assess and pay for value-added tax corresponding to the act, even in the cases in which it is impossible to withhold that taxfrom the foreign resident. Also, the tax paid will be considered as a tax credit if in favor of the substitute taxpayer. Tax on Debits and Credits in Bank Accounts This tax applies to debits and credits from and to Argentine bank accounts and to other transactions that, due to their special nature andcharacteristics, are similar or could be used in lieu of a bank account. There are certain limited exceptions to the application of this tax. The general tax rate is0.6% applicable on each debit and/or credit; however there are increased rates of 1.2% and reduced rates of 0.075%. According to Decree 409/2018, theowners of bank accounts on which the tax is levied at the 0.6% or 1.2% rate may compute 33% of the amounts paid under this tax as a payment on account ofthe income tax, tax on presumed minimum income and/or the special contribution on cooperative capital. The amount not computed cannot be subject,under any circumstances, to compensation with other taxes borne by the taxpayer or requests for reimbursement or transfer in favor of third parties, and maybe transferred, until exhaustion, to other fiscal periods of the aforementioned taxes. Personal Assets Tax Personal Assets Tax Law, as amended, states that all individuals domiciled in Argentina are subject to a tax on their worldwide assets; while,individuals not domiciled in Argentina are only liable for this tax on their assets in Argentina. Shares, other equity participations and securities are onlydeemed to be located in Argentina when issued by an entity domiciled in Argentina. The tax on shares and other equity participations in local companies ispaid by the local company itself. The applicable rate is 0.25% on the company’s net worth. Pursuant to the Personal Assets Tax Law, an Argentine companyis entitled to seek reimbursement of such tax paid from the shareholders, including by withholding and/or foreclosing on the shares, or by withholdingdividends. The current DDTs signed by Argentina do not provide an exemption on this tax. Law No. 27,260 introduced benefits for compliant taxpayers that include the exemption of personal assets tax until 2019. Our Argentine subsidiariesIAFH Global S.A., Sistemas Globales S.A., Dynaflows S.A. and Globers Travel S.A., applied to and were accepted by the AFIP to be eligible of the exemptionof personal assets tax in December, 2016 and January, 2017. Tax on Dividends Law No. 27,430 introduced the following changes to the taxation of distribution of dividends from Argentine companies, for fiscal years beginningon or after January 1, 2018: •Dividends from profits obtained before fiscal year 2018 are not subject to any income tax withholding except for the ''Equalization Tax''. TheEqualization Tax is applicable when the dividends distributed are higher than the ''net accumulated taxable income'' of the immediate previousfiscal period from when the distribution is made. The Law repeals the Equalization Tax for distributions made with income accrued from January 1,2018. •Dividends from profits obtained during fiscal years 2018 and 2019 on Argentine shares paid to Argentine resident individuals and/or non-residents,or Foreign Beneficiaries, are subject to a 7% income tax withholding on the amount of such dividends, or the Dividend Tax. •The Tax Rate on dividends from profits obtained during fiscal year 2020 and onward increased to 13%. Duty on exported services On December 4, 2018, Argentina approved the budget bill for 2019 by Law 27,467. The Law amends the Customs Code to allow for duties to beapplied to the exportation of services (and not only goods). In addition, the Executive Power was allowed to impose export duties of up to 30% untilDecember 31, 2020. However, in the cases of services and goods that were not subject to export duties before September 2, 2018, the maximum rate is 12%. 79 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. On January 2, 2019, the Argentine Executive Power issued Decree No. 1201/2018 establishes an export duty on exports of services at a rate of 12%with a maximum limit of Argentine pesos 4 per U.S. dollar of the amount arising from the invoice or equivalent document. A service is considered “exported” when it is rendered from Argentina but it is effectively used or exploited off shore. The effective utilization orexploitation is verified with the immediate utilization or the first act of disposal of the service by the recipient even when, if appropriate, the latter intendssuch service for consume. Turnover Tax Turnover tax is a local tax levied on gross income. Each of the provinces and the City of Buenos Aires apply different tax rates. The tax is levied onthe amount of gross income resulting from business activities carried on within the respective provincial jurisdictions. The provinces have signed anagreement to avoid the double taxation of activities performed in more than one province (Convenio Multilateral del 18 de agosto de 1977). Under thisagreement, gross income is allocated between the different provinces applying a formula based on income obtained and expenses incurred in each province.In the Province of Buenos Aires, we have received an exemption from the payment of the turnover tax for the period from 2011 through April 13, 2017 forSistemas Globales S.A. and through December 31, 2019 for IAFH Global S.A.. Sistemas Globales S.A. is renewing the exemption. Provincial Tax Advance Payment Regimes Applicable to Local Bank Accounts Certain provincial tax authorities have established advance payment regimes regarding the turnover tax that are, in general, applicable to creditsgenerated in bank accounts opened with financial institutions governed by the Argentine Financial Institutions Law. These regimes apply to local tax payerswhich are included in a list distributed —usually on a monthly basis— by the provincial tax authorities to the financial institutions aforementioned. Tax rates applicable depend on the regulations issued by each provincial tax authority, in a range that, currently, could amount up to 5%. For taxpayers subject to these advance payment regimes, any payment applicable qualifies as an advance payment of the turnover tax. Stamp Tax Stamp tax is a local tax that is levied based on the formal execution of public or private instruments. Documents subject to stamp tax include, amongothers, all types of contracts, notarial deeds and promissory notes. Each province and the City of Buenos Aires has its own stamp tax legislation. Stamp taxrates vary according to the jurisdiction and agreement involved. In general, stamp tax rates vary from 1% to 4% and are applied based on the economic valueof the instrument. In the Province of Buenos Aires, we have received an exemption from the stamp tax for one of our subsidiaries, IAFH Global S.A., since2011. Free Good Transmission Tax The Province of Buenos Aires established this tax in 2009. According to Law 14,200, all debts accrued up to December 31, 2010 have beenexempted from this tax. This tax is levied on any wealth increases resulting from free good or asset transmission (i.e. a donation, inheritance, etc.), providedthe beneficiary (individual or company) is domiciled in the Province of Buenos Aires or the goods or assets are located in the Province of Buenos Aires.Moreover, according to this tax, shares and other securities representing capital stock, an equity interest or the equivalent which, at the time of transmission,are located in another jurisdiction (i.e., not in the Province of Buenos Aires) or were issued by entities or companies domiciled in another jurisdiction, aredeemed to be situated in the Province of Buenos Aires in proportion to the assets that such entities or companies have in the Province of Buenos Aires. Thistax will only be applicable if the benefit obtained by the individual or the company exceeds 269,000 Argentine pesos. In the case of parents, children andspouses, the threshold amount is increased up to 1,120,000 Argentine pesos. The tax rates are progressive and vary from 1,60% to 8,78%. The Province ofEntre Ríos has enacted a tax that is similar to Law 14,200 described above. 80 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. The tax may become applicable in the event that our Argentine subsidiaries IAFH Global S.A. and Sistemas Globales S.A., receive any freetransmission of goods or assets located within the Province of Buenos Aires or the Province of Entre Ríos. If either of the subsidiaries changes its domicile tothe Province of Buenos Aires or to the Province of Entre Ríos, the tax will be levied upon any free transmission of goods or assets received by that subsidiary,wherever the goods or assets are located. Municipal Taxes Municipalities may establish certain municipal taxes, provided they are not analogous with the national taxes, and they match an effective andindividualized service provisioned by the local government. It should be noted that in many cases, the taxable income considered for the municipal tax willbe the same as that for the turnover tax, though limited to the amount that belongs to the province where the municipality is located as per the agreement toavoid double taxation (Convenio Multilateral del 18 de agosto de 1977). Incoming Funds from Nil or No Tax Jurisdictions According to the legal presumption under Article 18.1 of Law No. 11,683 and its amendments, incoming funds from jurisdictions with low or notaxation are deemed an unjustified increase in net worth for the Argentine party, regardless of the nature of the operation involved. Unjustified increases innet worth are subject to the following taxes: (a) income tax at a 35% rate on 110% of the amount of the transfer; and (b) value added tax at a 21% rate on 110% of the amount of the transfer. The Argentine tax resident may rebut such legal presumption by proving before the Argentine Tax Authority that the funds arise from activitieseffectively performed by the Argentine taxpayer or a third party in such jurisdictions, or that such funds have been previously declared. The Amendment Law modified the definition of Low or No Tax Jurisdiction to mean any country, jurisdiction dominium, territory, associated stateor special tax regime in which the maximum corporate income tax rate is lower than 60% of the income tax rate established in section 69 a) of the ITL.Therefore, to avoid being regarded as a low tax jurisdiction, the maximum corporate income tax rate of a given jurisdiction must be equal or higher than 15%.For purposes of determining whether a jurisdiction is a low-tax or no-tax jurisdiction, the regulatory Decree 1170/2018 clarifies that the total tax rateimposed in that jurisdiction must be taken into account, regardless of which government unit (e.g., federal, state, municipal or city) imposes the tax. Thedecree also provides that a “preferential tax regime” is one that deviates from the general corporate tax system in the subject jurisdiction and results in alower effective tax rate. As of the date of this annual report, there no transactions executed that would qualify under this legal presumption. Colombian Taxation The following is a summary of the material Colombian tax considerations relating to our operations in Colombia and it is based upon laws,regulations, decrees, rulings, income tax conventions (treaties), administrative practice and judicial decisions in effect as of the date of this annual report.Legislative, judicial or administrative changes or interpretations may, however, be forthcoming. Any such changes or interpretations could affect the taxconsequences to us, possibly on a retroactive basis, and could alter or modify the statements and conclusions set forth herein. This summary does not purportto be a legal opinion or to address all tax aspects that may be relevant to our operations in Colombia. 81 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Corporate income tax. National corporations are taxed on worldwide income and capital gains. National corporations are corporations that have their principal domicile inColombia or are organized under Colombian law or that during the respective tax year or period have their effective place of management in Colombia(holding board meetings in Colombia is not enough to qualify as a national company). Foreign companies that obtain more than 80% of their income (otherthan passive income) in the jurisdiction of incorporation are not considered to have their effective place of management in Colombia. These companies areknown as “80% Foreign Income Companies.” On December 28, 2018, Colombia enacted Law No. 1943, which includes several important tax reforms. Up to December 31, 2018 branches of foreign corporations and permanent establishment are taxed on Colombian Source income and capital gains.According with the Law No. 1943, branches and PE tax base is expanded to include worldwide income. The standard corporate income tax rate is 33%. In addition, an income tax surtax applies to taxable income in excess of COP800 million. Theincome tax surtax rate for 2018 is 4% and will not apply as of 2019. The Law No 1943 introduced a reduction of the tax rate of 31% in year 2020, 31% inyear 2021 and 30% from year 2022 and onwards. A reduced corporate income tax rate of 20% applies to legal entities qualified as Industrial Users of Goods and/or Services in a free-trade zone. Nosurtax applies to these taxpayers. Commercial Users in a free-trade zone are subject to the general corporate income tax rate. A special reduced rate of 9%applies to certain activities that in the past had some tax benefits or exemption, such as certain services in new or refurbished hotels, eco-tourism activitiesand some leasing agreements with respect to housing, as well as for publishers of scientific and cultural content. Capital gains are subject to tax at a rate of 10%. It is assumed that the following items are considered capital gains: (a) Gains on the transfer of fixedassets owned for more than two years and (b) Gains resulting from the receipt of liquidation proceeds of corporations in excess of capital contributed if thecorporation existed for at least two years. Taxation on dividends On December 28, 2016, the Colombian Congress enacted the Law No. 1819 introducing the taxation for distributions of dividends. Distribution tononresidents are subject to dividends tax at a rate of 5%. The dividends tax rate for resident individuals is 0%, 5% or 10%, depending on the amount of thedistribution. No dividend tax applies to distributions to resident companies. The dividends tax applies to the distribution of profits generated in 2017 andonwards. In addition, if the dividend distribution is made out of profits that were not taxed at the entity level, the distribution to nonresidents is subject to a35% withholding tax (recapture tax). In this case, the 5% dividends tax applies to the distributed amount after it is reduced by the 35% tax. A 20%withholding tax is imposed on dividends paid to residents (including companies and individuals) out of profits not taxed at the corporate level if thetaxpayer is required to file an income tax return. If the profits subject to tax at the corporate level in a given year are higher than the commercial profits of thatyear, the difference can be carried back for two years or carried forward for five years to offset the profits of such periods, in order to reduce or eliminate theamount of the distribution subject to the 35% withholding tax (or the 20% withholding tax on payments to residents). This carryforward or carryback shouldnot reduce the amount of the distribution to nonresidents subject to the dividends tax of 5% (or the 5% or 10% dividends tax applicable for distributions toresident individuals). Under Law No. 1943, a 7.5% tax rate is introduced on dividends distributed between resident companies, which applies on the first distribution, witha credit for the tax passed on to the ultimate shareholder (resident individual or non-resident entity or individual) and an exemption from the tax fordistributions between registered economic group members. 82 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Presumptive income. Under the Colombian tax law, the tax base for corporate income tax purposes is the higher of actual taxable income or minimum presumptiveincome, which is equal to 3.5% of the net equity as of December 31 of the preceding tax year. Under Law No. 1943, the presumptive income tax rate isreduced from 3.5% to 1.5% for years 2019 and 2020 and is abolished from year 2021. Tax on indirect transfer of shares. Law No. 1943 introduced a new tax calculated over the profits derived from the indirect transfer of shares in Colombian entities and rights or assetslocated in Colombia through the transfer of shares, participations or rights of foreign entities are taxed in Colombia as if the underlying Colombian asset hadbeen directly transferred. Where the seller fails to report the deemed income arising on the indirect transfer as net income or capital gains on the income taxreturn the “subordinate” Colombian company is jointly and severally liable for the tax payable, as well as any associated interest and penalties. Thepurchaser also is jointly and severally liable if it becomes aware that the transaction constitutes an abuse for tax purposes. These provisions do not applywhere the underlying Colombian assets (i) are shares that are listed on a stock exchange or that are not more than 20% owned by a single beneficial owner or(ii) represent less than 20% of both the book value and the commercial value of the total assets held by the foreign entity being transferred. Equity tax The Tax Reform (Law No 1943) establishes a new equity tax on Colombian resident individuals’ worldwide net worth that will apply for years 2019,2020, and 2021. Nonresident individuals will be taxed only on their Colombian assets. Nonresident entities will have to pay this tax on their assets owned inColombia, such as real estate, yachts, artwork, boats, planes, and rights over mines or oil wells. In calculating this tax, nonresident entities should not consider shares in Colombian companies, accounts receivable from Colombian debtors,certain portfolio investments and financial lease agreements. For this tax to apply, the net equity of the taxpayer must be at least COP 5.000 million as ofJanuary 1, 2019. The equity tax rate is 1%. Foreign Exchange Controls The following is a summary of the material foreign exchange control considerations relating to our operations in Argentina, Colombia and India,and it is based upon laws, regulations, decrees, rulings, administrative practice and judicial decisions in effect as of the date of this annual report. Legislative,judicial or administrative changes or interpretations may, however, be forthcoming. Any such changes or interpretations could affect us and could alter ormodify the statements and conclusions set forth herein. This summary does not purport to be a legal opinion or to address all foreign exchange controlsaspects that may be relevant to our operations in such jurisdictions. Argentina On January 6, 2002, the Argentine Congress enacted Law No. 25,561 (as amended and supplemented, the "Argentine Public Emergency Law"),formally ending the regime of the Convertibility Law, abandoning over ten years of U.S. dollar-peso parity. With the enactment of the Argentine PublicEmergency Law, Argentina declared a state of public emergency in terms of social, economic, administrative, financial and exchange rate conditions, and theArgentine executive branch was vested with the power to establish a system to determine the exchange rate between the peso and foreign currencies and toenact foreign exchange regulations. In February 2002, the Argentine executive branch issued Decree No. 260/2002 which established (i) a single free foreignexchange market FX Market in which all foreign exchange transactions were to be settled, and (ii) that foreign exchange transactions are to be consummatedat an exchange rate that is freely settled, subject to the requirements and regulations imposed by the Argentine Central Bank. Even when the Argentine pesowas allowed to float freely against other currencies, the Argentine Central Bank has the power to intervene in the exchange rate market by buying and sellingforeign currency for its own account, a practice in which it engaged in, and in which it may continue to engage in, on a regular basis. 83 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. In June 2005, through the issuance of Decree No. 616/2005, the Argentine government established a number of foreign exchange restrictions andregulations on inflows and outflows of funds to be settled through the local FX Market. With the tightening of exchange controls beginning in late 2011, inparticular with the introduction of measures that allowed limited access to foreign currency by private companies and individuals (such as requiring anauthorization of tax authorities to access the foreign currency exchange market), the implied exchange rate, as reflected in the quotations for Argentinesecurities in foreign markets, compared to the corresponding quotations in the local market, increased significantly over the official exchange rate. Withinsuch measures, the Argentine government restricted certain local companies from obtaining access to the FX Market for the purpose of making paymentsabroad, such as dividends (including capital reductions) and payment for importation of services and goods. In particular, during the last few years, theArgentine Central Bank exercised a de facto prior approval power for certain foreign exchange transactions otherwise authorized to be carried out under theapplicable regulations by means of regulating the amount of foreign currency available to financial institutions to conduct such transactions. Most foreign exchange restrictions including those relating to the transfer of funds into and out of Argentina, were lifted by the Macri administrationby December 2015, reestablishing Argentine residents' rights to purchase and remit foreign currency outside of Argentina. with no maximum amount andwithout specific allocation or prior approval. Notwithstanding the foregoing, it is possible that a restrictive foreign exchange controls policy could beadopted in the future as a result of changes in the economic-political situation of the country, bank runs, monetary pressures, or even from national orinternational authorities. In December 2015, the Argentine Ministry of Treasury issued Resolution No. 3/2015 which amended the requirement to maintain a registered, non-transferable and non-interest bearing deposit by reducing the amount of the deposit from 30% to 0%. Consequently, such deposit is no longer applicable to,among other transactions, foreign financial debts and inflows of funds of non-residents. In addition, the minimum period for the proceeds received from anynew financial indebtedness incurred by residents and granted by foreign creditors or portfolio investments of non-residents was reduced from 365 calendardays to 120 calendar days. Resolution No. 1-E/2017, dated January 5, 2017, subsequently eliminated the minimum waiting period entirely. The ArgentineMinistry of Treasury is entitled to modify the percentage of and period that funds must be kept in Argentina when a change in the macroeconomic situationso requires. Furthermore, through Resolution No. 47-E/2017, issued on January 19, 2017, the Argentine Trade Secretariat further amended Resolution No.269/2001, relaxing and extending the terms set forth therein to exporters in the Republic of Argentina. In addition, on December 17, 2015, the Argentine Central Bank issued Communication "A" 5850 which introduced substantial changes to theexisting foreign exchange controls regime. Also, Communication "A" 5861 abrogated certain Communications clarifying the scope of the limitations forpayment of services provided and/or accrued up to December 16, 2015 inclusive. Later on, by means of Communication A 5899 dated February 4, 2016 the Argentine Central Bank introduced several changes to the existingforeign exchange regulatory framework, which is in line with to the new foreign exchange controls policy implemented as from December 17, 2015. Furthermore, Resolution No. 30/2016 of the Secretariat of Commerce, dated March 11, 2016, amended Resolution No. 269/2001 as amended, easedand extended the terms imposed to certain exporting companies of different industries. Through Communication A 5910 dated February 26, 2016, the Argentine Central Bank introduced further amendments to the foreign exchangerules applicable to indebtedness of Argentine residents in foreign currency. On March 31, the Argentine Central Bank issued the Communication A 5937, inforce as from April 1, providing certain amendments to the rules relating to import transactions and repatriations of funds by non-Argentine residents, and onJuly 1 and 11, 2016, the Argentine Central Bank issued Communication A 6003 and A 6011, respectively, through which foreign exchange access andsettlement regulations have been simplified. 84 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. On August 8, 2016, the Argentine Central Bank issued Communication "A" 6037, which repealed most of the restrictions to purchase currency andthose relating to the inflow and outflow of funds into and from Argentina (except for the obligation of Argentine exporters of goods and services to repatriateto the FX Market foreign currency proceeds from exportation transactions, such as receivables relating to the exportation of goods, which shall also be settledthrough the FX Market). The Argentine Central Bank modified the current foreign exchange regime through Communication A 6137 issued on December 30, 2016.Likewise, in line with Resolution No. 1-E/2017, through Communication A 6150 issued on January 13, 2017, the Argentine Central Bank ordered theabrogation of the requirement of compliance with the minimum mandatory waiting period for the payment of foreign debts and repatriation of portfolioinvestment made by non-residents, and the minimum term of financial indebtedness to foreign countries. Through Communication A 6163 issued on January20, 2017, the Argentine Central Bank ordered further relaxed access to the FX Market by authorizing the access of residents for, among others, the inflow andpayments related to transactions with non-residents. Furthermore, on May 19, 2017, the Argentine Central Bank issued Communication ''A'' 6244, which entered into effect on July 1, 2017 and pursuantto which new regulations regarding access to the foreign exchange market were established, essentially abrogating all prior regulations on the matter. On November 1, 2017, the Argentine executive branch issued Decree No. 893/2017 (complemented by Communication ''A'' 6363 of the ArgentineCentral Bank dated November 10, 2017) pursuant to which foreign exchange restrictions related to exports of goods and services that continued to be inplace were eliminated, including the obligation of Argentine residents to transfer to Argentina and sell in the FX Market the proceeds of their exports ofgoods within the applicable deadline. Communication "A" 6312 was subsequently amended Communication "A" 6639, which is currently in force and provides that: •The principle of a free foreign exchange market (Mercado Libre de Cambios) is established. •The obligation to carry out any exchange operation through an authorized entity is maintained. •Although, access to the FX Market is made at the exchange rate determined by the market, the Argentine Central Bank has the power to intervene bybuying and selling foreign currency for its own account, a practice in which it engages on a regular basis. •The obligation of Argentine residents (other than individuals) to comply with the ''Survey of foreign assets and liabilities'' (Communication ''A''6401) is maintained and in force, even if there had been no inflow of funds to the FX Market and/or no future access to it for the operations to bedeclared. For additional information regarding all current foreign exchange restrictions and exchange control regulations in Argentina, investors shouldconsult their legal advisors and read the applicable rules mentioned herein, as well as any amendments and complementary regulations, which are availableat the Argentine Ministry of Treasury's website: www.economia.gob.ar, or the Argentine Central Bank's website: www.bcra.gob.ar. Colombia Under Colombian foreign exchange regulations, payments in foreign currency related to certain foreign exchange transactions must be conductedthrough the commercial exchange market, by means of an authorized financial intermediary, and declaring the payment to the Colombian Central Bank. Thismechanism applies to payments in connection with, among others, imports and exports of goods, foreign loans and related financing costs, investment offoreign capital and the remittances of profits thereon, investment in foreign securities and assets and endorsements and guarantees in foreign currency.Transactions through the commercial exchange market are made at market rates freely negotiated with the authorized intermediaries. In addition, the Colombian Central Bank may intervene in the foreign exchange market at its own discretion at any time and may, under certaincircumstances, take actions that limit the availability of foreign currency to private sector companies. Notwithstanding the foregoing, the Colombian CentralBank has never taken such action since the present foreign exchange regime was implemented in 1991. 85 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. India The prevailing foreign exchange laws in India require Indian residents to repatriate all foreign currency earnings to India to control the exchange offoreign currency. More specifically, Section 8 of the Foreign Exchange Management Act, 1999, requires an Indian company to take all reasonable steps torealize and repatriate into India all foreign currency earned by the company outside India, within such time periods and in the manner specified by theReserve Bank of India (the "RBI"). The RBI has promulgated guidelines that require Indian companies to realize and repatriate such foreign currency back toIndia, including by way of remittance into a foreign currency account such as an Exchange Earners Foreign Currency ("EEFC") account maintained with anauthorized dealer in India. Remittance into an EEFC account is subject to the condition that the sum total of the accruals in the account during a calendarmonth should be converted into rupees on or before the last day of the succeeding calendar month, after adjusting for utilization of the balances for approvedpurposes or forward commitments. C. Organizational Structure On December 10, 2012, we incorporated our company, Globant S.A., as a société anonyme under the laws of the Grand Duchy of Luxembourg, as theholding company for our business. Prior to the incorporation in Luxembourg, our company was incorporated in Spain as a sociedad anónima, which we referto as “Globant Spain” or “Spain Holdco”. As a result of the incorporation of our company in Luxembourg and certain related share transfers and othertransactions, Globant Spain became a wholly-owned subsidiary of our company. The following chart is a summary of our principal subsidiaries as of March 15, 2019. You may find complete information about all of oursubsidiaries and their respective holdings in Exhibit 8.1. Seasonality See “Operating and Financial Review and Prospects — Operating Results — Factors Affecting Our Results of Operations.” D. Property, Plant and Equipment See “—Business Overview.” ITEM 4A. UNRESOLVED STAFF COMMENTS Not applicable. 86 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our consolidatedfinancial statements and related notes included elsewhere in this annual report. Our consolidated financial statements have been prepared in accordance withIFRS. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results and the timing of selected events coulddiffer materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under "Key Information—Risk Factors" and elsewhere in this annual report. Overview See "Information on the Company — History and Development of the Company" and "Information on the Company — BusinessOverview — Overview". A. Operating Results Factors Affecting Our Results of Operations In the last few years, the technology industry has undergone a significant transformation due to two massive and disruptive technology revolutionshappening at the same time. The digital and the cognitive revolutions are affecting how companies connect with consumers and employees as well asproviding opportunities to make huge gains in efficiency. Today's users move fast and are keen to interact with their digital ecosystem anywhere andanytime, in a painless, fast, relevant, smart and restriction-free way. They demand personalized, seamless and frictionless experiences that will simplify theirlives. We are also facing an abundance of demand for more intelligent and human-like behavior and technology on the market. These revolutions areleveraging new technologies that didn’t exist or weren’t mature enough until a few years ago, such as AI, UX, Mobile, Cloud and VR. We believe that the most significant factors affecting our results of operations include: •market demand for integrated engineering, design and innovation technology services relating to emerging technologies and related market trends; •economic conditions in the industries and countries in which our clients operate and their impact on our clients' spending on technology services; •our ability to continue to innovate and remain at the forefront of emerging technologies and related market trends; •expansion of our service offerings and success in cross-selling new services to our clients; •our ability to obtain new clients, increase penetration levels with our existing clients and continue to add value for our existing clients so as tocreate long-term relationships; •the availability of, and our ability to attract, retain and efficiently utilize, skilled IT professionals in Latin America, India, Europe and the UnitedStates; •operating costs in countries where we operate; •capital expenditures related to the opening of new delivery centers and client management locations and improvement of existing offices; •our ability to increase our presence onsite at client locations; •the effect of wage inflation in countries where we operate and the variability in foreign exchange rates, especially relative changes in exchange ratesbetween the U.S. dollar and the Argentine peso, Uruguayan peso, Mexican peso, Colombian peso and Indian rupees; and •our ability to identify, integrate and effectively manage businesses that we may acquire. 87 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Our results of operations in any given period are directly affected by the following additional company-specific factors: •Pricing of and margin on our services and revenue mix. For time-and-materials contracts, the hourly rates we charge for our Globers are a key factorimpacting our gross profit margins and profitability. Hourly rates vary by complexity of the project and the mix of staffing. The margin on ourservices is impacted by the increase in our costs in providing those services, which is influenced by wage inflation and other factors. As a clientrelationship matures and deepens, we seek to maximize our revenues and profitability by expanding the scope of services offered to that client andwinning higher profit margin assignments. During the three-year period ended December 31, 2018, we increased our revenues attributable to sales oftechnology solutions (primarily through our primarily through our Mobile, Process Automation, UX Design and Gaming Studios), however, ourgross profit margin oscillate in 39.0%, 36.3% and 40.7% for the years ended December 31, 2018, 2017 and 2016, and our adjusted gross profitmargin oscillate in 40.6%, 38.8% and 42.3% for the years ended December 31, 2018, 2017 and 2016, respectively, since it was affected by foreignexchange headwinds combined with some wage inflation in certain of the countries in which we operate. •Our ability to deepen and expand the portfolio of services we offer while maintaining our high standard of quality. The breadth and depth of theservices we offer impacts our ability to grow revenues from new and existing clients. Through research and development, targeted hiring andstrategic acquisitions, we have invested in broadening and deepening the domains of expertise of our Studios. Our future growth and success dependsignificantly on our ability to maintain the expertise of each of our Studios and to continue to innovate and to anticipate the needs of our clients andrapidly develop and maintain the expertise of each of our Studios, including relevant domain knowledge and technological capabilities required tomeet those client needs, while maintaining our high standard of quality. •Recruitment, retention and management of IT professionals. Our ability to recruit, retain and manage our IT professionals may have an effect on ourgross profit margin and our results of operations. Our IT professional headcount was 7,821 as of December 31, 2018, 6,279 as of December 31, 2017and 5,219 as of December 31, 2016. We manage employee headcount and utilization based on ongoing assessments of our project pipeline andrequirements for professional capabilities. An unanticipated termination of a significant project could cause us to experience lower employeeutilization resulting from a higher than expected number of idle IT professionals. Our ability to effectively utilize our employees is typicallyimproved by longer-term client relationships due to increased predictability of client needs over the course of the relationships. •Evolution of client base. In recent years, as we have expanded significantly in the technology services industry; we have diversified our client baseand reduced client concentration. Revenues attributable to our top ten clients increased by 15.4% from 2016 to 2017 and 32.5% from 2017 to 2018.Over the same period, we have increased our revenues from existing clients by expanding the scope and size of our engagements. The number ofclients that each accounted for over $5.0 million of our annual revenues amounted to 21 2018, 18 in 2017 and 11 2016, and the number of clientsthat each accounted for at least $1.0 million of our annual revenues increased to 90 in 2018, from 82 in 2017 and 60 in 2016. •Investments in our delivery platform. We have grown our network of locations to 40 as of December 31, 2018, located in 32 cities throughoutfourteen countries (United States (San Francisco, New York, Seattle, Raleigh, Chicago and Dallas), Argentina (Buenos Aires, Tandil, Rosario,Tucumán, Córdoba, Resistencia, Bahía Blanca, Mendoza, Mar del Plata and La Plata), Uruguay (Montevideo), Colombia (Bogotá and Medellín),Brazil (São Paulo), Peru (Lima), Chile (Santiago), México (México City), India (Pune and Bangalore), Spain (Madrid), Belarus (Minsk), Romania(Cluj) and United Kingdom (London)). We also have client management locations in the United States (San Francisco, New York, Winston-Salemand Miami), Brazil (São Paulo), Colombia (Bogotá), Uruguay (Montevideo), Argentina (Buenos Aires) and the United Kingdom (London) that areclose to the main offices of key clients. Our integrated global delivery platform allows us to deliver our services through a blend of onsite and offsitemethods. We have pursued a decentralization strategy in building our network of delivery centers, recognizing the benefits of expanding into othercities in Argentina and other countries in Latin America, including the ability to attract and retain highly skilled IT professionals in increasing scale.Our ability to effectively utilize our robust delivery platform could significantly affect our results of operations in the future. 88 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. •Seasonality. Our business is seasonal and as a result, our revenues and profitability fluctuate from quarter to quarter. Our revenues tend to be higherin the third and fourth quarters of each year compared to the first and second quarters of each year due to seasonal factors. During the first quarter ofeach year, which includes summer months in the southern hemisphere, there is a general slowdown in business activities and a reduced number ofworking days for our IT professionals based in Argentina, Uruguay, Brazil, Peru, Chile and Colombia, which results in fewer hours being billed onclient projects and therefore lower revenues being recognized on those projects. In addition, some of the reduction in the number of working days forour IT professionals in the first or second quarter of the year is due to the Easter holiday. Depending on whether the Easter holiday falls in March orApril of a given year, the effect on our revenues and profitability due to the Easter holiday can appear either in the first or second quarter of that year.Finally, we implement annual salary increases in the second and fourth quarters of each year. Our revenues are traditionally higher, and our marginstend to increase, in the third and fourth quarters of each year, when utilization of our IT professionals is at its highest levels. •Net effect of inflation in Argentina and variability in the U.S. dollar and Argentine peso exchange rate. Because a substantial portion of ouroperations is conducted from Argentina, our results of operations are subject to the net effect of inflation in Argentina and the variability inexchange rate between the U.S. dollar and the Argentine peso. The impact of inflation on our salary costs, or wage inflation, and thus on ourstatement of profit or loss and other comprehensive income varies depending on the fluctuation in exchange rates between the Argentine peso andthe U.S. dollar. In an environment where the Argentine peso is weakening against the U.S. dollar, our functional currency in which a substantialportion of our revenues are denominated, the impact of wage inflation on our results of operations will decrease, whereas in an environment wherethe Argentine peso is strengthening against the U.S. dollar, the impact of wage inflation will increase. During the year ended December 31, 2018, theArgentine peso experienced a 102.2% devaluation from 18.60 Argentine pesos per U.S. dollar to 37.60 Argentine pesos per U.S. dollar and INDECreported in 2018 an inflation rate of 47.6%. The combination of this devaluation and the inflation rate is not expected to have a significant impacton our revenues because a substantial portion of our sales are denominated in U.S. dollars. The devaluation, net of the impact of the inflation rate inthe same period, has resulted in an increase in our operating costs, as a substantial portion of our operating costs are primarily denominated inArgentine pesos. See "Quantitative and Qualitative Disclosures about Market Risk — Foreign Exchange Risk" and "Quantitative and QualitativeDisclosures about Market Risk — Wage Inflation Risk." Our results of operations are expected to benefit from government policies and regulations designed to foster the software industry in Argentina,primarily under the Software Promotion Law. For further discussion of the Software Promotion Law, see "Business Overview — Our DeliveryModel — Government Support and Incentives." Certain Income Statement Line Items Revenues Revenues are derived primarily from providing technology services to our clients, which are medium- to large-sized companies based in the UnitedStates, Europe and Latin America. For the year ended December 31, 2018, revenues increased by 26.3% to $522.3 million from $413.4 million for the yearended December 31, 2017. For the year ended December 31, 2017, revenues increased by 28.1% to $413.4 million from $322.9 million for the year endedDecember 31, 2016. Between 2016 and 2018, we experienced rapid growth in demand for our services and significantly expanded our business. We perform our services primarily under time-and-material contracts and, to a lesser extent, fixed-price contracts. Revenues from our time-and-material contracts represented 82.6%, 91.1% and 92.1% of total revenues for the years ended December 31, 2018, 2017 and 2016, respectively. Revenuesfrom our fixed-price contracts represented 17.4%, 8.9% and 7.9% of total revenues for the years ended December 31, 2018, 2017 and 2016, respectively. Theremaining portion of our revenues in each year was derived from other types of contracts. 89 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. We discuss below the breakdown of our revenues by client location, industry vertical and client concentration. Revenues consist of technologyservices revenues net of reimbursable expenses, which primarily include travel and out-of-pocket costs that are billable to clients. Revenues by Client Location Our revenues are sourced from three main geographic markets: North America (primarily the United States), Europe (primarily Spain and the UnitedKingdom) and Latin America (primarily Argentina, Chile, Mexico and Colombia). We present our revenues by client location based on the location of thespecific client site that we serve, irrespective of the location of the headquarters of the client or the location of the delivery center where the work isperformed. For the year ended December 31, 2018, we had 373 clients. The following table sets forth revenues by client location by amount and as a percentage of our revenues for the years indicated: Year ended December 31, 2018 2017 2016 (in thousands, except percentages) By Geography North America $407,090 77.9% $325,614 78.8% $260,923 80.8%Europe 46,240 8.9% 38,484 9.3% 29,306 9.1%Asia 3,067 0.6% 700 0.2% 1,265 0.4%Latin America and other 65,913 12.6% 48,641 11.8% 31,362 9.7%Revenues $522,310 100.0% $413,439 100.0% $322,856 100.0% Revenues by Industry Vertical We are a provider of technology services to enterprises in a range of industry verticals including media and entertainment, professional services,technology and telecommunications, travel and hospitality, banks, financial services and insurance and consumer, retail and manufacturing, among others.The following table sets forth our revenues by industry vertical by amount and as a percentage of our revenues for the periods indicated: Year ended December 31, 2018 2017 2016 (in thousands, except percentages) By Industry Vertical Media and Entertainment $133,093 25.5% $99,640 24.1% $67,912 21.0%Travel & Hospitality 89,212 17.1% 68,400 16.5% 63,414 19.6%Banks, Financial Services and Insurance 114,439 21.9% 94,994 23.0% 59,786 18.5%Technology & Telecommunications 67,310 12.9% 60,648 14.7% 51,378 15.9%Professional Services 52,318 10.0% 40,660 9.8% 42,286 13.1%Consumer, Retail & Manufacturing 54,087 10.4% 36,025 8.7% 28,710 8.9%Other Verticals 11,851 2.3% 13,072 3.2% 9,370 3.0%Total $522,310 100.0% $413,439 100.0% $322,856 100.0% 90 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Revenues by Client Concentration We have increased our revenues by expanding the scope and size of our engagements, and we have grown our key client base primarily through ourbusiness development efforts and referrals from our existing clients. The following table sets forth revenues contributed by our largest client, top five clients, top ten clients and top twenty clients by amount and as apercentage of our revenues for the years indicated: Year ended December 31, 2018 2017 2016 (in thousands, except percentages) Client concentration Top client $58,786 11.3% $42,049 10.2% $31,249 9.7%Top five clients 167,341 32.0% 119,431 28.9% 108,831 33.7%Top ten clients 229,646 44.0% 173,333 41.9% 150,217 46.5%Top twenty clients 301,774 57.8% 228,922 55.4% 193,057 59.8% Our top ten customers for the year ended December 31, 2018 have been working with us for, on average, eight years. Our focus on delivering quality to our clients is reflected in the fact that existing clients from 2017 and 2016 contributed 95.5% and 76.9% of ourrevenues in 2018, respectively. Our existing clients from 2016 contributed 88.3% of our revenues in 2017. As evidence of the increase in scope ofengagement within our client base, the number of clients that each accounted for over $5.0 million of our annual revenues increased (21 in 2018, 18 in 2017and 11in 2016) and the number of clients that each accounted for at least $1.0 million of our annual revenues increased to 90 in 2018, 82 in 2017 and 60 in2016. The following table shows the distribution of our clients by revenues for the year presented: Year ended December 31, 2018 2017 2016 Over $5 Million 21 18 11 $1 - $5 Million 69 64 49 $0.5 - $1 Million 39 45 41 $0.1 - $0.5 Million 86 82 88 Less than $0.1 Million 158 147 151 Total Clients 373 356 340 The volume of work we perform for specific clients is likely to vary from year to year, as we are typically not any client's exclusive externaltechnology services provider, and a major client in one year may not contribute the same amount or percentage of our revenues in any subsequent year. Operating Expenses Cost of Revenues The principal components of our cost of revenues are salaries and non-reimbursable travel costs related to the provision of services. Included insalaries are base salary, incentive-based compensation, employee benefits costs and social security taxes. Salaries of our IT professionals are allocated to costof revenues regardless of whether they are actually performing services during a given period. Up to 70% of the amounts paid by our Argentine subsidiariesfor certain social security taxes in respect of base and incentive compensation of our IT professionals is credited back to those subsidiaries under the SoftwarePromotion Law, reducing the effective cost of social security taxes from approximately 19.0% to approximately 10.0% of the base and incentivecompensation on which those contributions are calculated. For further discussion of the Software Promotion Law, see "— Income Tax Expense" below andnote 3.7.1.1 to our audited consolidated financial statements for the year ended December 31, 2018. 91 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Also included in cost of revenues is the portion of depreciation and amortization expense attributable to the portion of our property and equipmentand intangible assets utilized in the delivery of services to our clients. Our cost of revenues has increased in recent years in line with the growth in our revenues and reflects the expansion of our operations in Argentina,Uruguay, Colombia, Peru, Mexico, India and the United States primarily due to increases in salary costs, an increase in the number of our IT professionals andthe opening of new delivery centers. We expect that as our revenues grow, our cost of revenues will increase. Our goal is to increase revenue per head andthereby increase our gross profit margin. Selling, General and Administrative Expenses Selling, general and administrative expenses represent expenses associated with promoting and selling our services and include such items as salaryof our senior management, administrative personnel and sales and marketing personnel, infrastructure costs, legal and other professional services expenses,travel costs and other taxes. Included in salaries are base salary, incentive-based compensation, employee benefits costs and social security taxes. The creditof up to 70% for certain social security taxes paid by our Argentine subsidiaries that is provided under the Software Promotion Law as described under"— Cost of Revenues" above also extends to payments of such social security taxes in respect of salaries of personnel included in our selling, general andadministrative expenses, reducing the effective cost of social security taxes as described above. Also included in selling, general, and administrative expenses is the portion of depreciation and amortization expense attributable to the portion ofour property and equipment and intangible assets utilized in our sales and administration functions. Our selling, general and administrative expenses have increased primarily as a result of our expanding operations and the build-out of our senior andmid-level management teams to support our growth. We expect our selling, general and administrative expenses to continue to increase in absolute terms asour business expands. However, as a result of our management and infrastructure investments, we believe our platform is capable of supporting the expansionof our business without a proportionate increase in our selling, general and administrative expenses, resulting in gains in operating leverage. Depreciation and Amortization Expense (included in "Cost of Revenues" and "Selling, General and Administrative Expenses") Depreciation and amortization expense consists primarily of depreciation of our property and equipment (primarily leasehold improvements, serversand other equipment) and amortization of our intangible assets, (mainly software licenses, acquired intangible assets and internal developments). We expectthat depreciation and amortization expense will continue to increase as we open more delivery centers and client management locations. Net impairment losses on financial assets Net impairment losses on financial assets includes impairment of trade receivables and impairment of tax credits, net of recoveries. Impairment oftrade receivables represents an allowance for bad debts for expected credit losses resulting from substantial doubt about the recoverability of such credits.The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition. During the years endedDecember 31, 2018 and 2016, we recorded a loss of $3.4 and $0.9, respectively, related to the recognition of the allowance for bad debts. For the year endedDecember 31, 2017, we recorded a gain of $0.01 related to a recovery of the allowance for bad debts. Impairment of tax credits represents an allowance for impairment of VAT credits for estimated losses resulting from substantial doubt about therecoverability of such credits. This allowance was determined by estimating future uses of this VAT credit. During the years ended December 31, 2018 and2017 we recorded a loss of $0.05 and $1.6, respectively, related to the recognition of the allowance for impairment of VAT credits after considering new factsand circumstances that occurred during those periods. In 2016, no impairment losses were recorded. 92 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Other operating (expenses) income, net Other operating (expenses) income, net includes an impairment of intangible assets. For the years ended December 31, 2018 and 2017, we recorded aloss of $0.3 million and $4.7 million, respectively, related to the remeasurement of our internal developments and intangible assets acquired in businesscombinations, based on our evaluation of projected lower future cash flows from the related customer relationships. In 2016, no impairment losses wererecorded. Finance Income Finance income consists of foreign exchange gain on monetary assets, liabilities denominated in currencies other than the U.S. dollar and interestgains on time deposits, short-term securities issued by the Argentine Central Bank (Letras del Banco Central), foreign exchange forward contracts and futurecontracts, and mutual funds. Finance Expense Finance expense consists of foreign exchange loss on monetary assets, liabilities denominated in currencies other than the U.S. dollar and interestexpense on borrowings, loss arising for foreign exchange forward contracts and future contracts, and other investments, foreign exchange loss, other interestand other finance expenses. Income Tax Expense As a global company, we are required to provide for corporate income taxes in each of the jurisdictions in which we operate. We have securedspecial tax benefits in Argentina, Uruguay, India and Belarus, as described below. As a result, our income tax expense is low in comparison to profit beforeincome tax expense due to the benefit related to profit before income tax expense earned in those lower tax jurisdictions. Changes in the geographic mix,income tax regulations or estimated level of annual pre-tax income can also affect our overall effective income tax rate. Under the Software Promotion Law, Argentine companies that are engaged in the design, development and production of software benefit from a60% reduction in the corporate income tax rate and a tax credit of up to 70% of amounts paid for certain social security taxes that can be applied to offsetcertain national tax liabilities. For further discussion of the Software Promotion Law, see "Business Overview — Our Delivery Model — Government Supportand Incentives". On March 26, 2015, the Secretary and Subsecretary of Industry issued rulings approving the registration in the National Registry of SoftwareProducers of Sistemas Globales S.A. and IAFH Global S.A. The ruling made the effective date of registration retroactive to September 18, 2014 and providedthat the benefits enjoyed under the Software Promotion Law as originally enacted were not extinguished until the ruling goes into effect (which haveoccurred upon its date of publication in the Argentine government's official gazette on before mentioned dates). On December 29, 2017, the Argentine government enacted Law No. 27.430, a comprehensive tax reform that became effective on January 1, 2018.Specifically, Law No. 27.430 introduced amendments to income tax (both at corporate and individual levels), value added tax ("VAT"), tax procedural law,criminal tax law, social security contributions, excise tax, tax on fuels and tax on the transfer of real estate. The law decreases the corporate income tax rate from 35% to 30% for fiscal years starting January 1, 2018 to December 31, 2019, and to 25% forfiscal years starting January 1, 2020 and onwards. The operations of the Argentine subsidiaries are our most significant source of profit before income tax. For further information of the taxation inArgentina, see "Business Overview — Regulatory Overview — Argentine Taxation ". Our subsidiary in Uruguay, which is domiciled in a tax-free zone, benefits from a 0% income tax rate and an exemption from value-added tax. Thesubsidiary located outside the tax-free zone has an exemption from income tax and value-added tax applicable to the exports of software developmentservices. For further discussion of the Uruguayan Incentives, see "Business Overview — Our Delivery Model — Government Support and Incentives" 93 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Until December 31, 2017, our subsidiary in Colombia was subject to federal corporate income tax of 34% and a surcharge of 6% calculated on netincome before income tax. For fiscal year 2018, the income tax rate was 33% and surcharge rate was 4%. On December 28, 2018, Colombia’s 2019 financebill was enacted as Law 1.943. The Law gradually reduce the corporate tax rates and eliminate the surcharge from January 1, 2019 and onwards. For the taxable years beginning before January 1, 2018, our U.S. subsidiary, Globant LLC, is subject to U.S. federal income tax at the rate of 34%. OnDecember 22, 2017, the United States enacted legislation referred to as the Tax Cuts and Jobs Act ("2017 Tax Act"), which instituted fundamental changes tothe taxation of multinational corporations. The 2017 Tax Act includes significant changes to the U.S. corporate income tax system, including a federalcorporate rate reduction from 35% to 21%, limitations on the deductibility of interest expense and executive compensation, changes regarding net operatingloss carryforwards, and the transition of U.S. international taxation from a worldwide tax system to a territorial tax system. Furthermore, as part of thetransition to the new tax system, a one-time transition tax was imposed on a U.S. shareholder's historical undistributed earnings of foreign affiliates. Forcertain eligible pass-through entities, the 2017 Tax Act provides for a qualified business income deduction. The 2017 Tax Act introduces various changes tothe Internal Revenue Code. The 2017 Tax Act also introduces base erosion provisions for U.S corporations that are part of a multinational group. For fiscal years beginning afterDecember 31, 2017, a U.S. corporation is potentially subject to tax under the BEAT, if the controlled group of which it is a part has sufficient gross receiptsand derives a sufficient level of "base erosion tax benefits.". On December 13, 2018, the Internal Revenue Service (“IRS”) published a proposed regulation that provide guidance regarding the BEATapplication. Currently, the Treasury and the IRS are receiving public comments. The document will be official once it is published in the Federal Register. As of the date of this annual report, certain provisions of the 2017 Tax Act do not currently apply to us, including those designed to (i) tax GILTI;(ii) establish a deduction for FDII; (iii) eliminate the intercompany payment deduction under BEAT; and (iv) establish new limitations on certain executivecompensation. One or more of these provisions may apply to us in the future. Our subsidiaries in England are subject to corporate income tax at the rate of 19%, which will be reduced to 17% starting from April 1, 2020. On September 29, 2014, Law No. 20,780 was published in the Chilean government's official gazette. This law introduced significant changes to theChilean taxation system and strengthened the powers of the Chilean tax authority to control and prevent tax avoidance. Effective January 1, 2017, Law No.20,780 created two different corporate tax regimes: the Attributed Income Regime (Sistema de Renta Atribuida) and the Semi-Integrated Regime (SistemaParcialmente Integrado). Under the Attributed Income Regime, shareholders are taxed on an accrual basis, with a rate of 25% imposed at the operating entitylevel, plus an additional withholding income tax of 35% for nonresident shareholders. Under this regime, profits are attributed to the shareholders,irrespective of whether a distribution is actually made. Under the Semi-Integrated Regime, shareholders are taxed on a cash basis (when profits aredistributed), at a rate of 25.5% for 2017 and 27% for 2018, imposed at the operating entity level, plus an additional withholding income tax of 35% whenprofits are actually distributed. Under this regime, the corporate rate is creditable against the 35% withholding income tax, but 35% of such credit is requiredto be paid to the Chilean Treasury, so, in practice, only 65% of the corporate rate is creditable. However, investors from countries with which Chile has signedthe Double Tax Treaty as of January 1, 2017 would be entitled to use the 100% of the foreign tax credit, even if at that time the agreement was not yet inforce. Under such circumstances, the full tax credit would be applicable until December 31, 2019 if at that time the relevant tax treaty had not yet entered intoforce. The Semi-Integrated Regime applies to Sistemas Globales Chile. Due to its shareholders being domiciled in Spain, 100% of the income tax will becreditable by them. Sistemas Globales Chile was subject to a corporate income tax rate of 24% during the year ended December 31, 2016. Beginning onJanuary 1, 2017, the corporate income tax rate applicable to Sistemas Globales Chile was 25.5% and for 2018 the rate is 27%. 94 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Our subsidiary Globant Brasil Consultoría Ltda. (formerly Terraforum Consultoría Ltda.), applies the taxable income method called “Lucro real”.Under this method, taxable income is based upon a percentage of profit accrued by the Company, adjusted according to the add-backs and exclusionsprovided in the relevant tax law. The rate applicable to the taxable income derived from the subsidiary’s activity is 24% plus 10% if the net income beforeincome tax is higher than 240,000 Reais for the years 2017 and onwards. On December 31, 2014, Peru enacted Law No 30,296, which made several changes to the Peruvian tax regime. Among other changes, the lawdecreases corporate income tax rates, effective January 1, 2015, as follows: fiscal year 2015 and 2016, 28%, fiscal year 2017 and 2018, 27%, fiscal year 2019,26%. The Peruvian Congress on October 6, 2016, issued Law No. 30.506, which provides the Peruvian government the power to legislate regarding mattersaffecting economic growth, formal compliance, and national security for a 90-day period. Pursuant to the power granted, the Peruvian government issuedLegislative Decree No. 1261 on December 10, 2016, which increases the corporate income tax rate, effective January 1, 2017, for fiscal year 2017 onward to29.5%. Our subsidiary in Mexico is subject to corporate income tax at the rate of 30%. Our Indian subsidiary, Globant India Private Limited, is primarily export-oriented and is eligible for certain income tax holiday benefits granted bythe government of India for export activities conducted within Special Economic Zones, or SEZs. The services provided by our Pune development center areeligible for a deduction of 100% of the profits or gains derived from the export of services for the first five years from the financial year in which the centercommenced the provision of services - August 2017- and 50% of such profits or gains for the five years thereafter. Certain tax benefits are also available for afurther five years subject to the center meeting defined conditions. Indian profits ineligible for SEZ benefits are subject to corporate income tax at the rate of34.61%. In addition, all Indian profits, including those generated within SEZs, are subject to the Minimum Alternative Tax (MAT), at the current rate ofapproximately 21.34%, including surcharges. Our subsidiary located in Belarus is resident of the High Technology Park (“HTP”). HTP residents are exempted from corporate tax and VAT. Our subsidiary in Rumania is subject to income tax at the rate of 16%. The subsidiary located in Canada is subject to federal income tax at the rate of 15%. The rate is increased by the state income tax rate which is 11%in the case of the state of British Columbia where the subsidiary is incorporated. The corporate tax rate in France for most companies is 33.33%. The Finance Bill for 2017 contains provisions for the progressive reduction of thecorporate income tax rate from the 33.33% rate to 28% over the period 2017 to 2020. Also, there is a reduced tax rate of 15% for companies whose turnoverdoes not exceed EUR 7,63 million, but only for the first EUR 38,120 of taxable income. In 2019 the reduced rate will be applicable to small and medium-sizeenterprises. To qualified as a small and medium-size enterprise, a company must employ less than 250 employees and have an annual turnover not exceedingEUR 50 millions. According to the Finance Bill, our subsidiary located in France is subject to tax at a rate of 28% during 2018. The rate applies for the first EUR500.000. Results of Operations The following table sets forth a summary of our consolidated results of operations by amount and as a percentage of our revenues for the periodsindicated. This information should be read together with our audited consolidated financial statements and related notes included elsewhere in this annualreport. The operating results in any period are not necessarily indicative of the results that may be expected for any future period. 95 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Year ended December 31, 2018 2017 2016 (in thousands, except percentages) Consolidated Statements of profit or loss and othercomprehensive income: Revenues (1) $522,310 100.0% $413,439 100.0% $322,856 100.0%Cost of revenues (2) (318,554) (61.0)% (263,171) (63.7)% (191,395) (59.3)%Gross profit 203,756 39.0% 150,268 36.3% 131,461 40.7%Selling, general and administrative expenses (3) (133,187) (25.5)% (110,813) (26.8)% (80,961) (25.1)%Net impairment losses on financial assets (4) (3,469) (0.7)% (1,581) (0.4)% (928) (0.3)%Other operating expense, net (5) (306) (0.1)% (4,708) (1.1)% — —%Profit from operations 66,794 12.8% 33,166 8.0% 49,572 15.4%Finance income 11,418 2.2% 7,956 1.9% 16,215 5.0%Finance expense (16,968) (3.2)% (11,036) (2.7)% (19,227) (6.0)%Finance (expense) income, net (6) (5,550) (1.1)% (3,080) (0.7)% (3,012) (0.9)%Other income and expenses, net (7) 6,220 1.2% 8,458 2.0% 3,629 1.1%Profit before income tax 67,464 12.9% 38,544 9.3% 50,189 15.5%Income tax (8) (15,868) (3.0)% (8,081) (2.0)% (14,327) (4.4)%Net income for the year $51,596 9.9% $30,463 7.4% $35,862 11.1% (1)Includes transactions with related parties of $5,937, $5,590 and $6,462 for the years ended December 31, 2018, 2017 and 2016, respectively. (2)Includes depreciation and amortization expense of $4,022, $4,339 and $4,281 for the years ended December 31, 2018, 2017 and 2016, respectively.Also includes share based compensation for $4,248, $5,666 and $917 for the years ended December 31, 2018, 2017 and 2016, respectively. (3)Includes depreciation and amortization expense of $16,521, $11,789 and $6,637 for the years ended December 31, 2018, 2017 and 2016,respectively. Also includes share based compensation of $8,665, $8,798 and $2,703 for the years ended December 31, 2018, 2017 and 2016,respectively. (4)Includes a loss of $3,421, a gain of $5 and a loss of $928 on impairment of trade receivables for the years ended December 2018, 2017 and 2016,respectively (see note 11). Includes an impairment of tax credits of $48 and $1,586 for the years ended December 31, 2018 and 2017, respectively. (5)Includes an impairment of intangibles assets of $306 and $4,708 for the years ended December 31, 2018 and 2017, respectively. (6)Includes foreign exchange loss, net, of $7,437, $2,729 and $8,620 for the years ended December 31, 2018, 2017 and 2016, respectively. (7)Includes as of December 31, 2018, 2017 and 2016 a gain of $6,700, $6,735 and $418, respectively, on remeasurement of the contingentconsideration of PointSource, Clarice, L4, WAE and Ratio, a gain of $1,611, $1,727 and $2,981, respectively, related to the remeasurement at fairvalue of the call and put option over non-controlling interest in Dynaflows, and a loss for the derecognition of the call option over non-controllinginterest in Dynaflows of $455. For the year ended December 31, 2018 includes a loss of $1,038 related to the settlement agreed with WAE formerowners and $800 for the impairment of the investment in Collokia. For the year ended December 31, 2016 includes a gain of $225 related to thebargain business combination of Difier S.A. (8)Includes deferred tax gains of $7,456, $5,972 and $730 for the years ended December 31, 2018, 2017 and 2016, respectively. 96 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 2018 Compared to 2017 Revenues Revenues were $522.3 million for 2018, representing an increase of $108.9 million, or 26.3%, from $413.4 million for 2017. Revenues from North America increased by $81.5 million, or 25.0%, to $407.1 million for 2018 from $325.6 million for 2017. Revenues from LatinAmerica and other countries increased by $17.3 million, or 35.6%, to $65.9 million for 2018 from $48.6 million for 2017. Revenues from Europe increasedby $7.7 million, or 20.0%, to $46.2 million for 2018 from $38.5 million for 2017. Revenues from Asia increased by $2.4 million, or 342.9%, to $3.1 millionfor 2018 from $0.7 million for 2017. Revenues from technology and telecommunications clients increased by $6.7 million, or 11.1%, to $67.3 million for 2018 from $60.6 million for2017. The increase in revenues from clients in this industry vertical was primarily attributable to higher demand in digital content, consumer experienceservices and the cross-selling capabilities of our Studios. Revenues from media and entertainment clients increased by $33.5 million, or 33.6%, to $133.1million for 2018 from $99.6 million for 2017. The increase in revenues from clients in this industry vertical was primarily attributable to a higher demand forour digital content solutions, mobile applications, and consumer experience practices. Revenues from professional services clients increased by $11.6million, or 28.5%, to $52.3 million for 2018 from $40.7 million for 2017. The increase in revenues from clients in this industry vertical was primarilyattributable to higher demand for services related to process automation, digital content and consumer experience solutions. Revenues from consumer, retailand manufacturing clients increased by $18.1 million, or 50.3%, to $54.1 million for 2018 from $36.0 million for 2017. The increase in revenues from clientsin this industry vertical was primarily attributable to higher demand for services related to scalable platforms solutions, consulting practices, and big data,supported by the cross-selling capabilities of our Studios. Revenues from banks, financial services and insurance clients increased by $19.4 million, or20.4%, to $114.4 million for 2018 from $95.0 million for 2017. The increase in revenues from clients in this industry vertical was primarily attributable tohigher demand for services related to scalable platforms, cloud and mobile. Revenues from travel and hospitality clients increased by $20.8 million, or30.4%, to $89.2 million for 2018 from $68.4 million for 2017. This increase is primarily attributable to large increase in demand for consumer experience andautomated testing services. Revenues from clients in other verticals decreased by $1.2 million, or 9.2%, to $11.9 million for 2018 from $13.1 million for2017. Revenues from our top ten clients in 2018 increased by $56.3 million, or 32.5%, to $229.6 million for 2017 from $173.3 million for 2017, reflectingour ability to increase the scope of our engagement with our main customers. Revenues from our largest client for 2018, Walt Disney Parks and ResortsOnline, increased by $16.8 million, or 40.0%, to $58.8 million for 2018 from $42.0 million for 2017. Cost of Revenues Cost of revenues was $318.6 million for 2018, representing an increase of $55.4 million, or 21.0%, from $263.2 million for 2017. The increase wasprimarily attributable to the net addition of 1,542 IT professionals since December 31, 2017, an increase of 24.6%, to satisfy growing demand for our services,which translated into an increase in salaries. Cost of revenues as a percentage of revenues decreased to 61.0% for 2018 from 63.7% for 2017. The decreasewas primarily attributable to cost efficiencies, lower salaries in terms of U.S. dollars derived from the devaluation of the Argentine peso and, to a lesser extent,of the Colombian peso in 2018. Salaries, employee benefits, social security taxes and share based compensation, the main component of cost of revenues, increased by $52.7million, or 21.5% to $297.4 million for 2018 from $244.7 million for 2017. Salaries, employee benefits and social security taxes include a $4.2 million share-based compensation expense in 2018 and $5.7 million share-based compensation expense in 2017. Depreciation and amortization expense was $4.0 million and $4.3 million for 2018 and 2017. Travel and housing was $6.6 million for 2018 and 2017. 97 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Selling, General and Administrative Expenses Selling, general and administrative expense was $133.2 million for 2018, representing an increase of $22.4 million, or 20.2%, from $110.8 millionfor 2017. The increase was primarily attributable to $5.7 million increase in salaries, employee benefits, social security taxes and share based compensationrelated to the addition of a number of senior sales executives in our main market, the United States; a $4.7 million increase in depreciation and amortizationexpense; and $3.3 million increase in office expenses, rental expenses related to the opening of our new delivery centers. In addition, there was a $3.9 millionincrease in professional fees including audit and other professional services. Selling, general and administrative expenses as a percentage of revenuesdecreased to 25.5% for 2018 from 26.8% for 2017. Share-based compensation expense within selling, general and administrative expenses accounted for $8.7million, or 1.7%, as a percentage of revenues for 2018, and $8.8 million, or 2.1%, as a percentage of revenues for 2017. Impairment on financial assets During the year ended December 31, 2018 and 2017, we recorded a loss for impairment of financial assets of $3.5 and $1.6. The increase wasprimarily attributable to the recognition of an impairment of $3.4 resulting from substantial doubt about the recoverability of the some trade receivables. For2017 the loss of $1.6 was due to the recognition of an impairment of tax credits. Other operating expenses, net Other operating expenses was $0.3 million for 2018. The loss was due to the recognition of an impairment of intangibles assets. Finance Income Finance income for 2018 was $11.4 million compared to $8.0 million for 2017, mainly resulting from foreign exchange gains of $6.9 million ascompared to $6.3 million in 2017, and gains from short-term investments, primarily related to gains from financial assets measured at fair value through profitand loss, of $4.1 million as compared to $1.2 million in 2017. Finance Expense Finance expense increased to $17.0 million for 2018 from $11.0 million for 2017, primarily reflecting a foreign exchange loss of $14.3 millionmainly related to the impact of the weakening of some Latin American currencies against the U.S. dollar on our monetary assets, denominated in suchcurrencies, a loss of $1.1 million primarily related to gains from financial assets measured at fair value through profit and loss, and interest expense of $0.7million. Other financial expenses totaled $0.9 million. Other Income and Expenses, Net Other income and expenses, net decreased to a gain of $6.2 million for 2018 from a gain of $8.5 million for 2017. Our 2018 and 2017 resultsincludes a gain of $6.7 on the remeasurement of contingent consideration related to the acquisition of Clarice, WAE, L4 Ratio and PointSource and WAE, again of $1.6 million and $1.7 million for 2018 and 2017 related to the remeasurement at fair value of the call and put option over our non-controlling interestin Dynaflows, and a loss of $0.8 and $0.5 related to the impairment of the Collokia investment and to derecognition of the call option of Dynaflows,respectively, for the year ended December 31, 2018. Income Tax Income tax expense amounted to $15.9 million for 2018, an increase of $7.8 million from a $8.1 million income tax expense for 2017. The increasein income tax expense was driven mainly by the increase in our profit from operations and the devaluation of the Argentine peso that generated taxablefinance gains in our Argentinian subsidiaries. Our effective tax rate (calculated as income tax gain or expense divided by the profit before income tax)increased to 23.5% for 2018 from 21.0% for 2017, principally explained by the impact of the weakness of some Latin American currencies against U.S.Dollars. 98 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Net Income for the Year As a result of the foregoing, we had a net income of $51.6 million for 2018, compared to $30.5 million for 2017. 2017 Compared to 2016 Revenues Revenues were $413.4 million for 2017, representing an increase of $90.5 million, or 28.1%, from $322.9 million for 2016. Revenues from North America increased by $64.7 million, or 24.8%, to $325.6 million for 2017 from $260.9 million for 2016. Revenues from LatinAmerica and other countries increased by $17.2 million, or 54.8%, to $48.6 million for 2017 from $31.4 million for 2016. Revenues from Europe increasedby $9.2 million, or 31.4%, to $38.5 million for 2017 from $29.3 million for 2016. Revenues from Asia decreased by $0.6 million, or 46.2%, to $0.7 millionfor 2017 from $1.3 million for 2016. Revenues from technology and telecommunications clients increased by $9.2 million, or 17.9%, to $60.6 million for 2017 from $51.4 for 2016. Theincrease in revenues from clients in this industry vertical was primarily attributable to higher demand in gaming, consumer experience services and the cross-selling capabilities of our Studios. Revenues from media and entertainment clients increased by $31.7 million, or 46.7%, to $99.6 million for 2017 from$67.9 million for 2016. The increase in revenues from clients in this industry vertical was primarily attributable to a higher demand for our gaming solutions,mobile applications, and consumer experience practices. Revenues from professional services clients decreased by $1.6 million, or 3.8%, to $40.7 million for2017 from $42.3 million for 2016. The decrease in revenues from clients in this industry vertical was primarily attributable to lower in demand for servicesrelated to enterprise consumerization, digital content and consumer experience solutions. Revenues from consumer, retail and manufacturing clientsincreased by $7.3 million, or 25.4%, to $36.0 million for 2017 from $28.7 million for 2016. The increase in revenues from clients in this industry vertical wasprimarily attributable to higher demand for services related to mobile applications, testing services, user experience and social practices, supported by thecross-selling capabilities of our Studios. Revenues from banks, financial services and insurance clients increased by $35.2 million, or 58.9%, to $95.0 millionfor 2017 from $59.8 million for 2016. The increase in revenues from clients in this industry vertical was primarily attributable to higher demand for servicesrelated to high performance, analytics, cloud and mobile. Revenues from travel and hospitality clients increased by $5.0 million, or 7.9% to $68.4 million for2017 from $63.4 million for 2016. This increase is primarily attributable to large increase in demand for consumer experience and automated testing services.Revenues from clients in other verticals increased by $3.7 million, or 39.4%, to $13.1 million for 2017 from $9.4 million for 2016. Revenues from our top ten clients in 2017 increased by $23.1 million, or 15.4%, to $173.3 million from revenues of $150.2 million in 2016,reflecting our ability to increase the scope of our engagement with our main customers. Revenues from our largest client for 2017, Walt Disney Parks andResorts Online, increased by $11.0 million, or 35.5%, to $42.0 million for 2017 from $31.0 million for 2016. Revenues from our largest client for 2016,Southwest Airlines Co., decreased by $4.3 million, or 13.8%, to $26.9 million from $31.2 million for 2016. Cost of Revenues Cost of revenues was $263.2 million for 2017, representing an increase of $71.8 million, or 37.5%, from $191.4 million for 2016. The increase wasprimarily attributable to the net addition of 1,060 IT professionals since December 31, 2016, an increase of 20.3%, to satisfy growing demand for our services,which translated into an increase in salaries. Cost of revenues as a percentage of revenues increased to 63.7% for 2017 from 59.3% for 2016. The increase wasprimarily attributable to the higher variation in exchange rate lag with respect to actual salary increases in nominal Argentine pesos, and to an expansion ofour delivery footprint in United States during 2017. Salaries, employee benefits, social security taxes and share based compensation, the main component of cost of revenues, increased by $67.5million, or 38.1% to $244.7 million for 2017 from $177.2 million for 2016. Salaries, employee benefits and social security taxes include a $5.7 million share-based compensation expense in 2017 and $0.9 million share-based compensation expense in 2016. 99 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Depreciation and amortization expense included in the cost of revenues was $4.3 million for 2017 and 2016. Travel and housing was $6.6 million for 2017 and 2016. Selling, General and Administrative Expenses Selling, general and administrative expense was $110.8 million for 2017, representing an increase of $29.8 million, or 36.8%, from $81.0 million for2016. The increase was primarily attributable to a $18.3 million increase in salaries, employee benefits, social security taxes and share based compensationrelated to the addition of a number of senior sales executives in our main market, the United States; a $5.2 million increase in depreciation and amortizationexpense; a $3.3 million increase in office and rental expenses related to the opening of the new delivery centers. In addition, there was a $2.3 million increasein professional fees including audit and other professional services. Selling, general and administrative expenses as a percentage of revenues increased to26.8% for 2017 from 25.1% for 2016. Share-based compensation expense within selling, general and administrative expenses accounted for $8.8 million, or2.1%, as a percentage of revenues for 2017, and $2.7 million, or 0.8%, as a percentage of revenues for 2016. Impairment on financial assets During the year ended December 31, 2017 and 2016, we recorded a loss for impairment of financial assets of $1.6 million and $0.9 million,respectively. In 2017 the loss was due to the recognition of an impairment of tax credits of $1.6. For 2017 the loss of $0.9 was due to the recognition of animpairment of trade receivables. Other operating expenses, net Other operating expenses was $4.7 million for 2017. The loss was due to the recognition of an impairment of intangibles assets. Finance Income Finance income for 2017 was $8.0 million compared to $16.2 million for 2016, resulting primarily from foreign exchange gains of $6.3 million ascompared to $6.2 million in 2016 and gains from short-term investments of $1.2 million as compared to $9.9 million in 2016. Finance Expense Finance expense decreased to $11.0 million for 2017 from $19.2 million for 2016, primarily reflecting a foreign exchange loss of $9.0 millionmainly related to the impact of the weakening of some Latin American currencies against the U.S. dollar on our monetary assets denominated in suchcurrencies, a loss of $0.6 million arising from held-for-trading investments and interest expense of $0.9 million. Other financial expenses totaled $0.5 million. Other Income, Net Other income and expenses, net increased to a gain of $8.5 million for 2017 from a gain of $3.6 million for 2016. Our 2017 gain includes a gain of$6.7 million on the remeasurement of contingent consideration related to the acquisition of Clarice, L4 and WAE, and a gain of $1.6 million related to theremeasurement at the fair value of the call and put option over our non-controlling interest in Dynaflows). 100 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Income Tax Income tax expense amounted to $8.1 million for 2017, a decrease of $6.2 million from a $14.3 million income tax expense for 2016. The decreasein income tax expense was attributable to lower gain related to Argentine forward contracts and the reduced impact of the devaluation of the Argentine peso.Our effective tax rate (calculated as income tax gain or expense divided by the profit before income tax) decreased to 21.0% for 2017 from 28.5% for 2016,principally driven by a more balanced distribution of gains and costs across the company as a result of improvements in our transfer pricing model. Net Income for the Year As a result of the foregoing, we had a net income of $30.5 million for 2017, compared to $35.9 million for 2016. B. Liquidity and Capital Resources Liquidity and Capital Resources Capital Resources Our primary sources of liquidity are cash flows from operating activities. For the year 2018, we derived 86.8% of our revenues from clients in NorthAmerica and Europe pursuant to contracts that are entered into by our subsidiaries located in the United States, Spain and the United Kingdom. Our primary cash needs are for capital expenditures (consisting of additions to property and equipment and to intangible assets) and working capital.From time to time we also require cash to fund acquisitions of businesses. Our primary working capital requirements are to finance our payroll-related liabilities during the period from delivery of our services throughinvoicing and collection of trade receivables from clients. We incur capital expenditures to open new delivery centers, for improvements to existing delivery centers, for infrastructure-related investments andto acquire software licenses. We will continue to invest in our subsidiaries. In the event of any repatriation of funds or declaration of dividends from our subsidiaries, there willbe a tax effect because dividends from certain foreign subsidiaries are subject to taxes. See "Information on the Company — Business Overview —Regulatory Overview — Argentine Taxation — Tax on Dividends" and " "Information on the Company — Business Overview — Regulatory Overview —Argentine Taxation — Income Tax". The following table sets forth our historical capital expenditures for the years ended December 31, 2018, 2017 and 2016: Year ended December 31, 2018(***) 2017(**) 2016(*) (In thousands) Capital expenditures $28,506 $26,314 $21,856 *Excludes impact of WAE, Difier and L4 acquisitions for the year ended December 31, 2016.**Excludes impact of Ratio and PointSource acquisitions for the year ended December 31, 2017.***Excludes impact of Small Footprint acquisition for the year ended December 31, 2018. Investments During 2016, we invested $21.9 million in capital expenditures, primarily to establish our delivery centers in Mexico City, Mexico, Pune, India andBogota, Colombia, and invested $5.9 million in internal developments and acquired licenses. 101 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. During 2017, we invested $26.3 million in capital expenditures, primarily to establish our delivery centers in La Plata and Tandil, Argentina,Madrid, Spain, Bogotá and Medellín, Colombia and New York, U.S., and invested $8.8 million in internal developments and acquired licenses. During 2018, we invested $28.5 million in capital expenditures, primarily to complete our works on our delivery centers in La Plata, Argentina andMedellín and Bogotá, Colombia, and to establish our delivery centers in Mexico City, Mexico, Bangalore, India, and Seattle, U.S., and invested $9.6 millionin internal developments and acquired licenses. Acquisitions On May 23, 2016 we acquired WAE, a service design consultancy, specializing in three distinct but complementary service offerings (Research,Strategy and Creative) for an aggregate purchase price of $19.9 million, of which $11.4 million is payable on a deferred basis and subject to reduction uponthe occurrence of certain targets. On November 14, 2016, we entered into a stock purchase agreement with 3C to purchase 100% of the capital stock of Difier for an aggregatepurchase price of $0.025 million. On November 14, 2016, we acquired 100% of shares of L4. L4 offers the digital product consulting, design, development and quality assuranceservices necessary to build and manage robust digital products. The aggregate purchase price amounted to $20.4 million, of which $9.4 million is payable ona deferred basis and subject to reduction upon the occurrence of certain targets. On February 28, 2017, we acquired 100% of shares of Ratio Cypress, LLC. Ratio offers design, development and quality assurance servicesnecessary to build and manage robust digital products and video streaming solutions for major media companies. The aggregate purchase price amounted to$9.5 million, of which $3.7 million is payable on a deferred basis and subject to reduction upon the occurrence of certain targets. On June 1, 2017, we acquired 100% of shares of PointSource. PointSource offers digital solutions to its customers which include design, digitalstrategy, development and marketing services. The aggregate purchase price amounted to $28.6 million, of which $13.1 million is payable on a deferred basisand subject to reduction upon the occurrence of certain targets.. On October 15, 2018, we signed an asset purchase ("APA") agreement to acquire, the business of Small Footprint Inc., a corporation organized andexisting under the laws of North Carolina, United States, including the acquisition of its wholly owned subsidiary in Romania, Small Footprint, LLC. SmallFootprint, U.S. and Romania, are engaged in the business of providing outsourced service of consulting, designing, developing and implementing customsoftware applications, digital product, websites, technologies and strategies for the purpose of digital transformation. The aggregate purchase price under theAPA amounted to $7.4 million. As of December 31, 2018, we had cash and cash equivalents and investments of $86.2 million. Cash Flows The following table summarizes our cash flows from operating, investing and financing activities for the periods indicated: 102 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. For the year ended December 31, 2018 2017 2016 Net cash provided by operating activities 67,197 42,989 31,480 Net cash used in investing activities (46,117) (57,534) (27,999) Net cash provided by financing activities 4,094 16,598 7,699 Effect of exchange rate changes on cash and cash equivalents (93) (60) 2,632 Cash and cash equivalents at beginning of the year 52,525 50,532 36,720 Cash and cash equivalents at end of the year 77,606 52,525 50,532 Net increase in Cash and cash equivalents at end of year 25,081 1,993 13,812 Operating Activities Net cash provided by operating activities was generated primarily by profits before taxes adjusted for non-cash items, including depreciation andamortization expense, shared-based compensation expense and the effect of working capital changes. Net cash provided by operating activities was $67.2 million for the year ended December 31, 2018 as compared to net cash provided in operatingactivities of $43.0 million for the year ended December 31, 2017. This increase of $24.2 million in net cash provided by operating activities was primarilyattributable to a $33.6 million increase in profit before income tax expense adjusted for non-cash-items, a $7.3 million decrease in working capital and a $2.1million increase in income tax payments, net of reimbursements. Changes in working capital in the year ended December 31, 2018 consisted primarily of a $36.4 million increase in trade receivables, a $10.6million increase in other receivables, a $2.5 million increase in trade payables, and decrease in utilization of provision for contingencies of $1.1 million, a$0.9 million decrease in tax liabilities, and $21.9 million increase in payroll and social security taxes payable. The $36.4 million increase in tradereceivables reflects our revenue growth. The $10.6 million increase in other receivables was mainly related to the increase in prepaid expenses and advancesto suppliers. Payroll and social security taxes payable increased to $58.5 million as of December 31, 2018 from $40.5 million as of December 31, 2017,primarily as a result of the growth in our headcount in line with our expansion. Net cash provided by operating activities was $43.0 million for the year ended December 31, 2017, as compared to net cash provided by operatingactivities of $31.5 million for the year ended December 31, 2016. This increase of $11.5 million in net cash provided by operating activities was primarilyattributable to a $5.7 million increase in profit before income tax expenses adjusted for non-cash items, a $8.5 million increase in working capital and a $2.7million increase in income tax payments, net of reimbursements. Changes in working capital in the year ended December 31, 2017 consisted primarily of a $25.6 million increase in trade receivables, a $1.2 milliondecrease in other receivables, a $4.3 million increase in trade payables, and increase in utilization of provision for contingencies of $0.9 million, a $0.7million decrease in tax liabilities, and $7.6 million increase in payroll and social security taxes payable. The $25.6 million increase in trade receivablesreflects our revenue growth. The $1.2 million decrease in other receivables was mainly related to the decrease in Software Promotion Regime credit. Payrolland social security taxes payable increased to $40.5 million as of December 31, 2017 from $30.3 million as of December 31, 2016, primarily as a result of thegrowth in our headcount in line with our expansion. 103 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Investing Activities Net cash of $46.1 million was used in investing activities for the year ended December 31, 2018 as compared to $57.5 million of net cash used ininvesting activities during the year ended December 31, 2017. During the year ended December 31, 2018, we invested in mutual funds and sovereign bonds,which generated an outflow of $1.0 million, we invested $28.7 million in fixed and intangible assets and $18.4 million in acquisition-related transactions,and we obtained proceeds of $2.4 million from forward contracts. Net cash of $57.5 million was used in investing activities for the year ended December 31, 2017, as compared to $28.0 million of net cash used ininvesting activities during the year ended December 31, 2016. During the year ended December 31, 2017, we invested in mutual funds and sovereign bonds,which generated a cash flow of $1.7 million, we invested $27.5 million in fixed and intangible assets and $31.1 million in acquisition-related transactions,and we lost proceeds of $0.6 million from forward contracts. Financing Activities Net cash of $4.1 million was provided by financing activities for the year ended December 31, 2018, as compared to $16.6 million of net cashprovided by financing activities for the year ended December 31, 2017. During the year ended December 31, 2018, we received $7.0 million for the issuanceof shares under our share-based compensation plan, $3.2 million proceeds from subscription agreements and paid borrowing for $6.0 million. Net cash of $16.6 million was provided by financing activities for the year ended December 31, 2017 as compared to $7.7 million of net cashprovided by financing activities for the year ended December 31, 2016. During the year ended December 31, 2017, we received $5.3 million for the issuanceof shares under our share-based compensation plan, $5.7 proceeds from subscription agreement and proceeds from borrowing for $5.8 million. Future Capital Requirements We believe that our existing cash and cash equivalents and cash flows from operations will be sufficient to meet our anticipated cash needs for atleast the next 12 months. In addition, as of December 31, 2018, IAFH Global S.A. had recognized an aggregate of $3.8 million in value-added tax credits. Weexpect to monetize the value of those value-added tax credits by way of cash reimbursement from AFIP during 2019. Our ability to generate cash is subject to our performance, general economic conditions, industry trends and other factors. If our cash and cashequivalents and operating cash flow are insufficient to fund our future activities and requirements, we may need to raise additional funds through public orprivate equity or debt financing. If we issue equity securities in order to raise additional funds, substantial dilution to existing shareholders may occur. If weraise cash through the issuance of indebtedness, we may be subject to additional contractual restrictions on our business. We cannot assure you that we wouldbe able to raise additional funds on favorable terms or at all. In November 2018, Globant LLC, our U.S. subsidiary (the “Borrower”) entered into an Amended and Restated Credit Agreement (the “A&R CreditAgreement”) with the financial institutions listed therein, as lenders, and HSBC Bank USA, N.A., as administrative agent, issuing bank and swingline lender.The A&R Credit Agreement amends and restates the Credit Agreement dated as of August 3, 2017, which provided for a secured revolving credit facilityunder which the Borrower could borrow up to $40.0 million in advances. Under the A&R Credit Agreement, the Borrower may borrow (i) up to $50.0 millionin a single borrowing on or prior to May 1, 2019 under a delayed-draw term loan facility and (ii) up to $150.0 million under a revolving credit facility. Inaddition, the Borrower may request increases of the maximum amount available under the revolving facility in an aggregate amount not to exceed $100.0million. The maturity date of each of the facilities is October 31, 2023, and interest on the loans extended thereunder shall accrue at a rate per annum equal toLIBOR plus 1.75%. The Borrower’s obligations under the A&R Credit Agreement are guaranteed by us and our subsidiary, Globant España S.A., and aresecured by substantially all of the Borrower’s now owned and after-acquired assets. The A&R Credit Agreement also contains certain customary negative andaffirmative covenants. . Compliance with these covenants may limit our flexibility in operating our business and our ability to take actions that might beadvantageous to us and our shareholders. 104 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. As of December 31, 2018 and as of the date of this annual report, no amounts were outstanding under this facility. Restrictions on Distribution of Dividends by Certain Subsidiaries The ability of certain of our subsidiaries to pay dividends to us is subject to their having satisfied requirements under local law to set aside a portionof their net income in each year to legal reserves, as described below. In accordance with Argentine and Uruguayan companies law, our subsidiaries incorporated in Argentina and in Uruguay must set aside at least 5%of their net income (determined on the basis of their statutory accounts) in each year to legal reserves, until such reserves equal 20% of their respective issuedshare capital. As of December 31, 2018, required legal reserves at our Argentine subsidiaries amounted to $0.8 million and had been set aside as of that date.As of that date, our Uruguayan subsidiary had set aside a legal reserve of $0.04 million, which was fully constituted. On December 29, 2017, Argentine Law No. 27,430 amending the income tax law was enacted. According to the amendments, for fiscal yearsbeginning on or after January 1, 2018 the distribution of dividends is now subject to a 7% withholding for 2018 and 2019 and 13% withholding for 2020onwards. The Equalization Tax, which levied distributions made out of previously untaxed income, was eliminated. On December 23, 2013, the Argentine government adopted a new double taxation treaty with Spain, which applied retroactively from January 1,2013. According this treaty, the tax applicable on dividends distributed by our Argentine Subsidiaries to the Spain Holdco, is limited to10% on the grossamount of dividends distributed. Brazilian law does not require limited liability companies to allocate profits for the creation of a legal reserve. The Company’s Brazilian subsidiarydid not have a legal reserve as of December 31, 2018. In accordance with Colombian companies law, our Colombian subsidiary must set aside at least 10% of its net income (determined on the basis of itsstatutory accounts) in each year to legal reserves, until such reserves equal 50% of its issued share capital. As of December 31, 2018, its legal reservesamounted to $0.0004 million and were fully set aside. Colombia Law No 1,819, published on December 29, 2016, introduced a withholding tax of 5% on dividend distributions to non-resident. This newfiscal obligation is not applicable to our shareholder due to the tax treaty agreement between Colombia and Spain, entered in force on October 28, 2008. In accordance with Spanish companies law, our Spanish subsidiaries, must set aside at least 10% of its net income (determined on the basis of itsstatutory accounts) in each year to legal reserves, until such reserves equal 20% of its issued share capital. As of December 31, 2018, the legal reserveamounted to $7.9 million for all Spanish subsidiaries. In accordance with Mexican law, our Mexican subsidiary must set aside at least 5% of its net income for each year to a legal reserve, until suchreserve equals 20% of its issued share capital. As of December 31, 2018, the legal reserve amounted to $0.07 million for our Mexican subsidiary. Under Luxembourg law, at least 5% of our net profit per year must be allocated to the creation of a legal reserve until such reserve has reached anamount equal to 10% of our issued share capital. If the legal reserve subsequently falls below the 10% threshold, at least 5% of net profit must be allocatedtoward the reserve. If the legal reserve exceeds 10% of our issued share capital, the legal reserve may be reduced in proportion so that it does not exceed 10%of our issued share capital. The legal reserve is not available for distribution. As of December 31, 2018, the legal reserve amounted to $0.437 million.Dividends paid to the holders of our common shares are as a rule subject to a 15% withholding tax in Luxembourg, unless a reduced withholding tax rateapplies pursuant to an applicable double tax treaty or an exemption pursuant to the application of the participation exemption, and, to the extentwithholding tax applies, we are responsible for withholding amounts corresponding to such taxation at its source. 105 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. In accordance with Peruvian law, our Peruvian subsidiary must set aside at least 10% of its net income for each year to a legal reserve, until suchreserve equals 20% of its issued share capital. As of December 31, 2018, no reserves had been set aside. In accordance with Chilean law, our Chilean subsidiary is not obliged to appropriate any fixed amount of profit to a legal reserve. As ofDecember 31, 2018, there is no legal reserve constituted. In accordance with Indian law, our Indian subsidiary must set off all losses incurred by it (including carried over losses from the previous financialyear) and make a provision for depreciation (including depreciation for the previous year if it was not already provided for) against the profits earned by itprior to declaring any dividends. Since the declaration of dividends under Indian law is discretionary, our Indian subsidiary is not required to allocate aspecific portion of its annual profits to a designated legal reserve for purposes of declaring dividends. As of December 31, 2018, the legal reserve amounted to$0.02 million for our Indian subsidiary. According to French law, a minimum of 5% of our profit of the year must be allocated to a reserve account named "legal reserve", until such reserveamounts 10% of the share capital of our French subsidiary. As of December 31, 2018, there was no legal reserve constituted. In accordance with the law of Belarus, our Belorussian subsidiary must allocate an amount of up to 25% of its annual payroll to a reserve fund forsalaries. The source for creating this fund is the profit remaining at the disposal of the company after paying taxes and other obligatory payments. As ofDecember 31, 2018, there was no legal reserve constituted. According to the Romanian Companies Law, our Romanian subsidiary must allocate each year at least 5% of its profit to a reserve fund, until thevalue of the fund is at least 20% of the Romanian company's share capital. As of December 31, 2018, the reserve fund at our Romanian subsidiary was ofRomanian Leu ("RON") $0.056 million. In Canada, there is no requirement for our Canadian subsidiary to allocate profits for the creation of a legal reserve. As of December 31, 2018, therewas no legal reserve constituted. In addition, with respect to our Argentine subsidiaries, although the transfer of funds abroad by local companies in order to pay annual dividends toforeign shareholders does not require formal approval by the Argentine Central Bank, in the past, the decrease in availability of U.S. Dollars in Argentina hadled the Argentine government to impose informal restrictions on local companies and individuals for purchasing foreign currency for the purpose of makingpayments abroad, such as dividends. Even when the current Argentine administration has lifted most of the foreign exchange restrictions providing greaterflexibility and access to the foreign exchange market, the imposition of future exchange restrictions could impair or prevent the conversion of anticipateddividends or distributions payable to us by those subsidiaries from Argentine pesos into U.S. dollars. For further information on these exchange controls, see"Risk Factors — Risks Related to Operating in Latin America — Argentina — The imposition in the future of restrictions on transfers of foreign currency andthe repatriation of capital from Argentina may impair our ability to receive dividends and distributions from, and the proceeds of any sale of, our assets inArgentina." and "Information on the Company — Business Overview — Regulatory Overview — Foreign Exchange Controls." 106 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Equity Compensation Arrangements On July 3, 2014, our board of directors and shareholders approved and adopted the 2014 Equity Incentive Plan, which was amended by our board ofdirectors to increase the number of common shares that may be issued as stock awards from 1,666,667 to 3,666,667 on May 9, 2016, and from 3,666,667 to5,666,667 on February 13, 2019. Under the terms of our 2014 Equity Incentive Plan, from its adoption until the date of this annual report, we have granted to members of our seniormanagement and certain other employees 30,000 stock awards, options to purchase 2,277,434 common shares and 770,849 restricted stock units. Most of theoptions and the restricted stock units under the plan were granted with a vesting period of four years, 25% of the options becoming exercisable on eachanniversary of the grant date. Share-based compensation expense for awards of equity instruments is determined based on the fair value of the awards at thegrant date. Each of our employee share options is exercisable for one of our common shares, and each of our restricted stock units will be settled,automatically upon its vesting, with one of our common shares. No amounts are paid or payable by the recipient on receipt of an option or a restricted stockunits. Neither the options nor the restricted stock units carry rights to dividends or voting rights. Options may be exercised at any time from the date ofvesting to the date of their expiration (ten years after the grant date). Share-based compensation expense for awards of equity instruments to employees is determined based on the grant-date fair value of the awards. Fairvalue is calculated using the Black-Scholes option pricing model. There were 2,658,595 outstanding stock options as of December 31, 2016, 2,320,710 outstanding stock options and restricted stock units as ofDecember 31, 2017 and 2,322,305 outstanding stock options and restricted stock units as of December 31, 2018. For 2018, 2017 and 2016, we recorded$12.9 million, $14.5 million and $3.6 million of share-based compensation expense related to these share option and restricted stock unit agreements,respectively. Critical Accounting Policies and Estimates We prepare our consolidated financial statements in accordance with IFRS, which require us to make judgments, estimates and assumptions about (i)the reported amounts of assets and liabilities, (ii) disclosure of contingent assets and liabilities at the end of each reporting period and (iii) the reportedamounts of revenues and expenses during each reporting period. We evaluate these estimates and assumptions based on historical experience, knowledge andassessment of current business and other conditions, and expectations regarding the future based on available information and reasonable assumptions, whichtogether form a basis for making judgments about matters not readily apparent from other sources. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in whichthe estimate is revised if the revision affects only that year or in the year of the revision and future years if the revision affects both current and future years.Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates. Some of our accounting policies require higher degrees of judgment than others in their application. When reviewing our consolidated financialstatements, you should consider (i) our selection of critical accounting policies, (ii) the judgment and other uncertainties affecting the application of suchpolicies and (iii) the sensitivity of reported results to changes in conditions and assumptions. We consider the policies discussed below to be critical to anunderstanding of our consolidated financial statements as their application places significant demands on the judgment of our management. An accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highlyuncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the accounting estimates that arereasonably likely to occur periodically, could materially impact our consolidated financial statements. We believe that the following critical accountingpolicies are the most sensitive and require more significant estimates and assumptions used in the preparation of our consolidated financial statements. Youshould read the following descriptions of critical accounting policies, judgments and estimates in conjunction with our consolidated financial statements andother disclosures included in this annual report. 107 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Revenue Recognition In accounting for fixed-price contracts we apply the input or output methods depending on the nature of the project and the agreement with thecustomer, recognizing revenue on the basis of our efforts to the satisfaction of the performance obligation relative to the total expected inputs to thesatisfaction of the performance obligation, or recognizing revenue on the basis of direct measurements of the value to the customer of the services transferredto date relative to the remaining services promised under the contract, respectively. Each method is applied according to the characteristics of each contractand client. This method is followed where reasonably dependable estimates of revenues and costs can be made. Fixed-price contracts generally correspond forservices over a period of 12 months or less. Some fixed-price contracts are recurring contracts that establish a fixed amount per month and do not require toapply significant judgment in accounting for those types of contracts. In consequence, the use of estimates is only applicable for those contracts that are on-going at the year end and that are not recurring. Reviews to these estimates may result in increases or decreases to revenues and income and are reflected in the consolidated financial statements inthe periods in which they are first identified. If the estimates indicate that a contract loss will be incurred, a loss provision is recorded in the period in whichthe loss first becomes probable and reasonably estimable. Contract losses are determined to be the amount by which the estimated costs of the contractexceed the estimated total revenues that will be generated by the contract and are included in cost of revenues in the consolidated statement of income andother comprehensive income. Contract losses for the periods presented in these consolidated financial statements were immaterial. Goodwill impairment analysis Goodwill is measured as the excess of the cost of an acquisition over the sum of the amounts assigned to tangible and intangible assets acquired lessliabilities assumed. The determination of the fair value of tangible and intangible assets involves certain judgments and estimates. These judgments caninclude, but are not limited to, the cash flows that an asset is expected to generate in the future and the appropriate weighted average cost of capital. We evaluate goodwill for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. Whendetermining the fair value of our cash generating unit, we utilize the income approach using discounted cash flow. The income approach considers variousassumptions including increase in headcount, headcount utilization rate, income from each country and revenue per employee, income tax rates and discountrates. The assumptions we considered as of December 31, 2018 are the following: projected cash flows for the following five years, the average growth rateconsidered was 20.0% and the rate used to discount cash flows was 16.94%. The long-term rate used to extrapolate cash flows beyond the projected periodwas 3%. Any adverse changes in key assumptions about the businesses and its prospects or an adverse change in market conditions may cause a change inthe estimation of fair value and could result in an impairment charge. Based upon our evaluation of goodwill, no impairments were recognized during 2018,2017 and 2016. Income Taxes Determining the consolidated provision for income tax expense, deferred income tax assets and liabilities, requires significant judgment. Theprovision for income taxes includes federal, state, local and foreign taxes. Deferred tax assets and liabilities are recognized for the estimated future taxconsequences in each of the jurisdictions where we operate of temporary differences between the financial statement carrying amounts and their respectivetax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the temporarydifferences are expected to be reversed. Changes to enacted tax rates would result in either increases or decreases in the provision for income taxes in theperiod of changes. 108 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and is reduced to the extent that it is no longer probablethat sufficient taxable profit will be available to allow the benefit of part or all of the deferred tax assets to be utilized. This assessment requires judgments,estimates, and assumptions by our management. In evaluating our ability to utilize deferred tax assets, we consider all available positive and negativeevidence, including the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets arerecoverable. Our judgments regarding future taxable income are based on expectations of market conditions and other facts and circumstances. Any adversechange to the underlying facts or our estimates and assumptions could require that we reduce the carrying amount of its net deferred tax assets. Impairment of financial assets We measure expected credit losses ("ECLs") using reasonable and supportable forward looking information, which is based on assumptions for thefuture movement of different economic drivers and how these drivers will affect each other. Loss given default is an estimate of the loss arising on default. Itis based on the difference between the contractual cash flows due and those that the lender would expect to receive. Probability of default constitutes a key input in measuring ECL. Probability of default is an estimate of the likelihood of default over a given timehorizon, the calculation of which includes historical data, assumptions and expectations of future conditions. As of December 31, 2018, 2017 and 2016, we recorded an impairment of trade receivables for an amount of $3.4 million, a recovery of $0.005million and an impairment of $0.9 million, respectively, using a provision matrix based on our historical credit loss experience, adjusted for factors that arespecific to debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date. As of December 31, 2018 and 2017, we recorded an impairment of tax credits for an amount of $0.048 million and $1.6 million, respectively, basedon assumptions about expected credit losses. We use judgment in making these assumptions based on existing regulatory conditions as well as forwardlooking estimates. The tax credits included in the allowance for impairment are mainly related to Argentine taxation. We estimated the future VAT credit andVAT debit that comes from domestic purchases and sales, respectively. Since exports are zero-rated, any excess portion of the credit not used against anyVAT debit is reimbursable to us, through a special VAT recovery regime. However, according to VAT recovery rules, there are certain limitations on theamount that may be reimbursed and we considered any VAT credit that cannot be reimbursed to be an impairment. Share-based compensation plan Under our share-based compensation plan for employees is measured based on fair value of our shares at the grant date and recognized ascompensation expense on a straight-line basis over the vesting period, based on our estimate of equity instruments that will potentially vest, with acorresponding impact reflected in additional paid-in capital. Determining the fair value of the share-based awards at the grant date requires judgments. We calculated the fair value of each option award on thegrant date using the Black-Scholes option pricing model. The Black-Scholes model requires the input of highly subjective assumptions, including the fairvalue of our shares, expected volatility, expected term, risk-free interest rate and dividend yield. Fair value of the shares: For our 2014 Equity Incentive Plan, the fair value of the shares is based on the quoted market price of our shares at thegrant date. For 2012 Equity Incentive Plan, as our shares were not publicly traded the fair value was determined using the market approach technique basedon the value per share of private placements. We had gone in the past through a series of private placements in which new shares have been issued. Weunderstood that the price paid for those new shares was a fair value of those shares at the time of the placement. In January 2012, Globant España S.A. had acapital contribution from a new shareholder, which included cash plus share options granted to the new shareholder, therefore, we considered that amount toreflect the fair value of their shares. The fair value of the shares related to this private placement resulted from the following formula: cash minus fair value ofshare options granted to new shareholder divided by number of newly issued shares. The fair value of the share options granted to the new shareholder wasdetermined using the same variables and methodologies as the share options granted to the employees. After our reorganization in December 2012, shares ofGlobant S.A (Luxembourg) were sold by existing shareholders in a private placement to WPP. The fair value of the shares related to this private placementresults from the total amount paid by WPP to the existing shareholders. 109 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Expected volatility: Since January 1, 2018, the expected volatility of our shares is calculated by using the average share price volatility of our sharessince January 1, 2016 to the date of grant. Before 2018, as we did not have sufficient trading history for the purpose of valuing our share options, theexpected volatility of our shares was estimated by using the average historic price volatility of the NASDAQ 100 Telecommunication Index. Expected term: The expected life of options represents the period of time the granted options are expected to be outstanding. Risk free rate: The risk-free rate for periods within the contractual life of the option is based on the U.S. Federal Treasury yield curve with maturitiessimilar to the expected term of the options. Dividend yield: We have never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future.Consequently, we used an expected dividend yield of zero. Call option over non-controlling interest As of December 31, 2017, we held a call option to acquire 33.27% of the remaining interest in Dynaflows S.A., which could be exercised fromOctober 22, 2020 until October 21, 2021. We calculated the fair value of this option using the Black-Scholes option model. The Black-Scholes modelrequires the input of highly subjective assumptions, including the expected volatility, maturity, risk-free interest rate, value of the underlying asset anddividend yield. Expected volatility: We have considered annualized volatility as multiples of EBITDA and revenue of publicly traded companies in the technologybusiness in the U.S., Europe and Asia since 2008. Maturity: The combination between the call and put options (explained in note 24.3 to the Consolidated Financial Statements included in thisannual report) implied that, assuming no liquidity restrictions at the moment that the option was exercisable and considering that both parties wanted tomaximize their benefits, we would acquire the minority shareholders shares at the date that this option was exercisable. Therefore, we have assumed that thematurity date of call option is October 22, 2020. Risk free rate: The risk-free rate for periods within the contractual life of the option was based on the Argentinean bonds ("BONAR") with a quote inthe U.S. market with maturities similar to the expected term of the option. Value of the underlying assets: We considered a multiple of EBITDA and revenue resulting from the implied multiple in Dynaflows adjusted by thelack of control. Dividend yield: We did not presently plan to pay cash dividends in the foreseeable future. Consequently, we used an expected dividend yield ofzero. As of December 31, 2018, we derecognized the call option (see note 24.3 to the Consolidated Financial Statements included in this annual report). 110 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Recoverability of internally generated intangible assets During the year, we considered the recoverability of the internally generated intangible asset that is included in our consolidated financialstatements as of December 31, 2018 and 2017 with a carrying amount of $7,855 and $6,395, respectively. We conducted a detailed recoverability analysis, considering both revenue from customers in the case of assets sold to third parties and internalusage for those assets that are used internally. As a result of this analysis, we recognized an impairment of $308 as of December 31, 2018. In 2017 and 2016,no impairment losses were recorded. Fair value measurement and valuation processes Certain assets and liabilities are measured at fair value for financial reporting purposes. In estimating the fair value of an asset or a liability, we use market-observable data to the extent it is available. Where Level 1 inputs are notavailable, we estimate the fair value of an asset or a liability by converting future amounts (e.g. cash flows or income and expenses) to a single current (i.e.discounted) amount. If necessary we engage third party valuation specialists to perform the valuation. Information about the valuation techniques and inputsused in determining the fair value of various assets and liabilities are disclosed in note 28.8 to the Consolidated Financial Statements included in this annualreport. Useful lives of property, equipment and intangible assets We review the estimated useful lives of property, equipment and intangible assets at the end of each reporting period. We determined that the usefullives of the assets included as property, equipment and intangible assets are in accordance with their expected lives. Provision for contingencies Provisions are recognized when we have a present obligation (legal or constructive) as a result of a past event, it is probable that we will be requiredto settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reportingperiod, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle thepresent obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized asan asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. Recoverability of intangible assets acquired in business combinations, other than goodwill We evaluate intangible assets acquired in business combinations for impairment at least annually or more frequently when there is an indication thatthe asset may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairmentloss (if any). The recoverable amount is the higher of fair value less costs of disposal and value in use. The determination of the fair value of intangible assetsacquired in business combinations involves certain judgments and estimates. These judgments can include, but are not limited to, the cash flows that an assetis expected to generate in the future and the appropriate weighted average cost of capital. When determining the fair value, we utilize the income approachusing discounted cash flow. A total amount of $4.7 million of impairment loss related to the intangible assets acquired in business combinations was recognized as ofDecember 31, 2017 and is included as other operating expenses. The impairment was recognized as a result of our evaluation of such intangible assets, uponwhich we projected lower future cash flows from the related customer relationships. In 2018 and 2016 no impairment losses were recorded. 111 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Application of New and Revised International Financial Reporting Standards •Adoption of new and revised standards We adopted all of the new and revised standards and interpretations issued by the IASB that are relevant to our operations and that are mandatorilyeffective at December 31, 2018. The impact of the new and revised standards and interpretations mentioned on our consolidated financial statements isdescribed as follows. We initially adopted IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers from January 1, 2018. The impact of theadoption of other standards and interpretations issued by the IASB that are mandatorily effective at December 31, 2018 is not material and consequently isnot described. IFRS 9 Financial Instruments IFRS 9 sets out requirements for recognizing and measuring financial assets, financial liabilities and some contracts to buy or sell non-financialitems. This standard replaces IAS 39 Financial instruments: Recognition and Measurement. IFRS 9 largely retains the existing requirements in IAS 39 for theclassification and measurement of financial liabilities. However, it eliminates the previous IAS 39 categories for financial assets of held to maturity, loans andreceivables and available for sale. The adoption of IFRS 9 has not had a significant effect on the our accounting policies related to financial liabilities. Theimpact of IFRS 9 on the classification and measurement of financial assets is set out below. Under IFRS 9, on initial recognition, a financial asset is classified as measured at: amortised cost; Fair Value through Other Comprehensive Income("FVOCI"); or Fair Value through Profit or Loss ("FVTPL"). The classification of financial assets under IFRS 9 is generally based on the business model inwhich a financial asset is managed and its contractual cash flow characteristics. A financial asset is measured at amortized cost if both of the following conditions are met and is not designated as at FVTPL: 1) it is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and 2) its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amountoutstanding. A financial asset is measured at FVOCI if both of the following conditions are met and is not designated as at FVTPL: 1) it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and 2) its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amountoutstanding. All financial assets not classified as measured at amortized cost or FVOCI as described above, are measured at FVTPL. The following table explains the original measurement categories under IAS 39 and the new measurement categories under IFRS 9 for each class ofour financial asset as at January 1, 2018. 112 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Original classificationunder IAS 39 New classificationunder IFRS 9Cash and cash equivalentsLoans and receivables Amortised costTrade receivablesLoans and receivables Amortised costOther receivablesLoans and receivables Amortised costInvestments Mutual fundsHeld for trading FVTPLLEBACs (1)Available for sale FVOCIOther financial assets Foreign exchange forwards and future contractsHeld for trading FVTPLFinancial assets related to business combinationsFVTPL FVTPLConvertible notesLoans and receivables Amortised costCall option on minority interestFVTPL FVTPL (1)LEBACs were initially classified as held-to-maturity investments (HTM). Under IAS 39, HTM were measured at amortised cost using theeffective interest method, less any impairment. However, during December, 2015, we sold some of those LEBACs and consequently, changedthe classification of the remaining LEBACs to Available-for-sale investments, since it was not permitted to classify investments as held-to-maturity in accordance with IAS 39. Changes in the carrying amount of AFS financial assets relating to changes in foreign currency rates,interest income calculated using the effective interest method were recognized in profit or loss. Other changes in the carrying amount of AFSfinancial assets were recognized in other comprehensive income. Consequently, under IFRS 9 LEBACs continue to be measured on the samebasis than it was under IAS 39. All financial assets and financial liabilities continue to be measured on the same basis as is previously adopted under IAS 39. Additionally, IFRS 9 replaces the 'incurred loss' model in IAS 39, with an 'expected credit loss' model. The new impairment model applies tofinancial assets measured at amortised cost, contract assets and debt investments at FVOCI, but not to investments in equity instruments. Under IFRS 9, creditlosses are recognized earlier than under IAS 39. Our financial assets that are subject to IFRS 9's new expected credit loss model are: cash and cash equivalents,trade receivables, other receivables, convertible notes and other financial assets related to business combinations. However, the change in the impairmentmethodology under IFRS 9 did not have a material impact on our consolidated financial statements. Impairment losses related to trade and other receivablesare presented separately in the statement of profit or loss. As a result, as of December 31, 2017 and 2016, we reclassified an impairment gain that amounted to$0.005 million and a loss of $0.9 million, respectively, recognized under IAS 39, from Selling, general and administrative expenses and an impairment loss of$1.6 million as of December 31, 2017 from Impairment of tax credits, to Net impairment (losses) gain on financial assets in the statement of profit or loss andother comprehensive income. IFRS 15 Revenue from Contracts with Customers IFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognized. It replaced IAS 18 Revenue,IAS 11 Construction Contracts and related interpretations. We adopted IFRS 15 using the cumulative effect method (without practical expedients) with theeffect of initially applying this standard recognized at the date of initial application, however, as per the management of our assessment, no effect had to berecognized at January 1, 2018. The details of the new significant accounting policies and the nature of the changes to previous accounting policies inrelation to our services are set out below. 113 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Under IFRS 15, an entity recognizes revenue when or as performance obligation is satisfied, i.e. when control of the goods or services underlying theparticular performance obligation is transferred to the customer. Far more prescriptive guidance has been added in IFRS 15 to deal with specific scenarios.Furthermore, extensive disclosures are required by IFRS 15. Our services are mainly performed under both time-and-material and fixed-price contracts. For revenues generated under time-and-material contracts,revenues are recognized as services are performed with the corresponding cost of providing those services reflected as cost of revenues when incurred. Themajority of such revenues are billed on an hourly, daily or monthly basis whereby actual time is charged directly to the client. Our performance obligationsare the hours performed. We assessed that these performance obligations are satisfied over time and that the method currently used to measure the progresstowards complete satisfaction of these performance obligations continue to be appropriate under IFRS 15. We recognize revenues from fixed-price contracts in the accounting periods in which services are rendered. We assessed that these performanceobligations are satisfied over time, applying the input or output methods depending on the nature of the project and the agreement with the customer,recognizing revenue on the basis of our efforts to the satisfaction of the performance obligation relative to the total expected inputs to the satisfaction of theperformance obligation, or recognizing revenue on the basis of direct measurements of the value to the customer of the services transferred to date relative tothe remaining services promised under the contract, respectively. Each method is applied according to the characteristics of each contract and client.Accordingly, the methods used to measure the progress towards complete satisfaction of these performance obligations are appropriate under IFRS 15. •New accounting pronouncements We have not applied the following new and revised IFRSs that have been issued but are not yet mandatorily effective: IFRS 16Leases1IFRIC 23Uncertainty over Income Tax Treatments3Amendments to IFRS 10 and IAS 28Sale or Contribution of Assets between an Investor and its Associate or Joint Venture2Amendment to IAS 28Long-term Interests in Associates and Joint Ventures3Amendment to IFRS 9Prepayment Features with Negative Compensation3Amendments to IFRS 3 and 11 and IAS 12 and 23Annual improvements 2015-2017 Cycle4Amendments to IAS 19Plan Amendment, Curtailment or Settlement3Amendments to References to the Conceptual Framework in IFRS Standards4Amendment to IFRS 3Definition of a business5Amendment to IAS 1 and IAS 8Definition of material6 1 Effective for annual periods beginning on or after January 1, 2019. Early adoption is permitted if IFRS 15 has also been applied.2 Effective date deferred indefinitely.3 Effective for annual periods beginning on or after January 1, 2019. Early adoption is permitted.4 Effective for annual periods beginning on or after January 1, 2019.5 Effective for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or afterJanuary 1, 2020 and to asset acquisitions that occur on or after the beginning of that period. Earlier application is permitted.6 Effective for annual reporting periods beginning on or after January 1, 2020. Earlier application is permitted. 114 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. •On January 13, 2016, the IASB issued the IFRS 16 which specifies how an IFRS reporter will recognize, measure, present and disclose leases. Thestandard provides a single lessee accounting model, with the distinction between operating and finance leases removed, requiring lessees to recognizeassets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value to be accounted for by simplyrecognizing an expense, typically straight line, over the lease term. Lessors continue to classify leases as operating or finance, with IFRS 16's approach tolessor accounting substantially unchanged from its predecessor, IAS 17. IFRS 16 supersedes IAS 17 and related interpretations. Furthermore, extensivedisclosures are required by IFRS 16. As of December 31, 2018, we have non–cancellable operating lease commitments of $55.2 million for office spaceand office equipment. IAS 17 does not require the recognition of any right-of-use or liability for future payments for these leases; instead, certaininformation is disclosed as operating lease commitment in note 27 to our consolidated financial statements. If these arrangements meet the definition of alease under IFRS 16, we will recognize a right–of–use asset and a liability in respect of them unless they qualify of a low value or short–term leases uponthe application of IFRS 16. In contrast, for finance leases where we are a lessee, we recognize an asset and a related finance lease liability for the leasearrangement. The standard is effective for annual periods beginning on or after January 1, 2019, with earlier application being permitted if IFRS 15 hasalso been applied. We have not opted for early application. The most significant impact is that we recognize new assets and liabilities for its operating leases of offices and delivery and development centers. We applied the practical expedient to grandfather the definition of a lease on transition. This means that it applied IFRS 16 to all contracts entered intobefore January 1, 2019 and identified as leases under IAS 17 and IFRIC 4. The lessee applies the election consistently to all of its leases. We applied IFRS 16 initially on January 1, 2019. We have elected the practical expedient to not restate comparative information, and recognized thecumulative effect of initially applying IFRS 16 as an adjustment to the opening balance of retained earnings at January 1, 2019. Based on a preliminaryassessment, we expects to recognize a right-of-use asset of $46.9 million, the corresponding liability of $48.5 million and an adjustment to retainedearnings of $1.7 million as of January 1, 2019, related to lease arrangements other than short-term leases and leases of low-value assets. •On June 7, 2017, the IASB published IFRIC 23 "Uncertainty over Income Tax Treatments", which was developed by the IFRS Interpretations Committeeto clarify the accounting for uncertainties in income taxes. The interpretation is to be applied to the determination of taxable profit (tax loss), tax bases,unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under IAS 12. The interpretation specificallyconsiders: ◦Whether tax treatments should be considered collectively.◦Assumptions for taxation authorities' examinations.◦The determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates.◦The effect of changes in facts and circumstances. The interpretation is effective for annual periods beginning on or after January 1, 2019. Early adoption is permitted. We have not opted for earlyapplication. The application of this interpretation did not have a material impact on our Financial Statements. •On September 11, 2014, the IASB issued amendments to IFRS 10 and IAS 28. These amendments clarify the treatment of the sale or contribution of assetsfrom an investor to its associate or joint venture, as follows: ◦require full recognition in the investor's financial statements of gains and losses arising on the sale or contribution of assets that constitute a business(as defined in IFRS 3 Business Combinations);◦require the partial recognition of gains and losses where the assets do not constitute a business, i.e. a gain or loss is recognized only to the extent ofthe unrelated investors' interests in that associate or joint venture. These requirements apply regardless of the legal form of the transaction, e.g. whether the sale or contribution of assets occurs by an investor transferringshares in any subsidiary that holds the assets (resulting in loss of control of the subsidiary), or by the direct sale of the assets themselves. On December17, 2015 the IASB issued an amendment that defers the effective date of the September 2014 amendments to these standards indefinitely until theresearch project on the equity method has been concluded. Earlier application of the September 2014 amendments continues to be permitted. 115 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. •On October 12, 2017 the IASB published the amendment to IAS 28 "Long-term Interests in Associates and Joint Ventures". This amendment clarifies thatan entity applies IFRS 9 Financial Instruments to long-term interests in an associate or joint venture that form part of the net investment in the associateor joint venture but to which the equity method is not applied. The amendments are to be applied retrospectively but they provide transition requirements similar to those in IFRS 9 for entities that apply theamendments after they first apply IFRS 9. They also include relief from restating prior periods for entities electing, in accordance with IFRS 4 InsuranceContracts, to apply the temporary exemption from IFRS 9. Full retrospective application is permitted if that is possible without the use of hind sight. The amendments are effective for periods beginning on or after 1 January 2019. Earlier application is permitted. We have not opted for early application.The application of this amendment did not have a material impact on our Financial Statements. •On October 12, 2017 the IASB published the amendment to IFRS 9 "Prepayment Features with Negative Compensation". This amendment modifies theexisting requirements in IFRS 9 regarding termination rights in order to allow measurement at amortised cost (or, depending on the business model, atfair value through other comprehensive income) even in the case of negative compensation payments. Under the amendments, the sign of theprepayment amount is not relevant, i. e. depending on the interest rate prevailing at the time of termination, a payment may also be made in favor of thecontracting party effecting the early repayment. The calculation of this compensation payment must be the same for both the case of an early repaymentpenalty and the case of an early repayment gain. The final amendments also contain (in the Basis for Conclusions) a clarification regarding the accounting for a modification or exchange of a financialliability measured at amortised cost that does not result in the derecognition of the financial liability. The IASB clarifies that an entity recognizes anyadjustment to the amortised cost of the financial liability arising from a modification or exchange in profit or loss at the date of the modification orexchange. A retrospective change of the accounting treatment may therefore become necessary if in the past the effective interest rate was adjusted andnot the amortised cost amount. The amendments are effective for periods beginning on or after January 1, 2019. Earlier application is permitted. We have not opted for early application.The application of this amendment did not have a material impact on our Financial Statements. •On December 12, 2017, the IASB issued amendments to the following standards as result of the IASB's annual improvements 2015-2017 project: ◦IFRS 3 (Business combinations): clarifies that when an entity obtains control of a business that is a joint operation, it remeasures previouslyheld interests in that business.◦IFRS 11 (Joint arrangements): clarifies that when an entity obtains joint control of a business that is a joint operation, the entity does notremeasure previously held interests in that business.◦IAS 12 (Income tax): clarifies that all income tax consequences of dividends (i.e. distribution of profits) should be recognized in profit or loss,regardless of how the tax arises.◦IAS 23 (Borrowing costs): clarifies that if any specific borrowing remains outstanding after the related asset is ready for its intended use or sale,that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalization rate on general borrowings. 116 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Our management does not anticipate that the application of these amendments will have a material impact on the consolidated financial statements. Theamendments are all effective for annual periods beginning on or after January 1, 2019. •On February 7, 2018, the IASB published the following amendments to IAS 19 "Plan Amendment, Curtailment or Settlement":◦If a plan amendment, curtailment or settlement occurs, it is now mandatory that the current service cost and the net interest for the period afterthe remeasurement are determined using the assumptions used for the remeasurement.◦In addition, amendments have been included to clarify the effect of a plan amendment, curtailment or settlement on the requirements regardingthe asset ceiling. The amendments are effective for periods beginning on or after January 1, 2019. We have not opted for earlier application. The application of thisamendment did not have a material impact on our Financial Statements •On March 29, 2018, the IASB issued the Amendments to References to the Conceptual Framework in IFRS Standards. The document containsamendments to IFRS 2, IFRS 3, IFRS 6, IFRS 14, IAS 1, IAS 8, IAS 34, IAS 37, IAS 38, IFRIC 12, IFRIC 19, IFRIC 20, IFRIC 22, and SIC-32. Not allamendments, however update those pronouncements with regard to references to and quotes from the framework so that they refer to therevised Conceptual Framework. Some pronouncements are only updated to indicate which version of the framework they are referencing to (the IASCframework adopted by the IASB in 2001, the IASB framework of 2010, or the new revised framework of 2018) or to indicate that definitions in thestandard have not been updated with the new definitions developed in the revised Conceptual Framework. Our management does not anticipate that theapplication of these amendments will have a material impact on our consolidated financial statements. The amendments are effective for annual periodsbeginning on or after January 1, 2020. •On October 22, 2018, the IASB has issued 'Definition of a Business (Amendments to IFRS 3)' aimed at resolving the difficulties that arise when an entitydetermines whether it has acquired a business or a group of assets. The amendments in Definition of a Business (Amendments to IFRS 3) are changes to Appendix A Defined terms, the application guidance, and theillustrative examples of IFRS 3 only. They:◦clarify that to be considered a business, an acquired set of activities and assets must include, at a minimum, an input and a substantive processthat together significantly contribute to the ability to create outputs;◦narrow the definitions of a business and of outputs by focusing on goods and services provided to customers and by removing the reference toan ability to reduce costs;◦add guidance and illustrative examples to help entities assess whether a substantive process has been acquired;◦remove the assessment of whether market participants are capable of replacing any missing inputs or processes and continuing to produceoutputs;◦and add an optional concentration test that permits a simplified assessment of whether an acquired set of activities and assets is not a business. Our management does not anticipate that the application of this amendment will have a material impact on our consolidated financial statements. Thisamendment is effective for business combinations for which the acquisition date is on or after the beginning of the first annual reporting periodbeginning on or after January 1, 2020 and to asset acquisitions that occur on or after the beginning of that period. Earlier application is permitted. Wehave not opted for early application. •On October 31, 2018, the IASB has issued 'Definition of Material (Amendments to IAS 1 and IAS 8)' to clarify the definition of ‘material’ and to align thedefinition used in the Conceptual Framework and the standards themselves. 117 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. The changes in Definition of Material (Amendments to IAS 1 and IAS 8) all relate to a revised definition of 'material' which is quoted as follows from thefinal amendments: "Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primaryusers of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specificreporting entity". Three new aspects of the new definition should especially be noted: ◦Obscuring. The existing definition only focused on omitting or misstating information, however, the Board concluded that obscuring materialinformation with information that can be omitted can have a similar effect. Although the term obscuring is new in the definition, it was alreadypart of IAS 1 (IAS 1.30A).◦Could reasonably be expected to influence. The existing definition referred to 'could influence' which the Board felt might be understood asrequiring too much information as almost anything ‘could’ influence the decisions of some users even if the possibility is remote.◦Primary users. The existing definition referred only to 'users' which again the Board feared might be understood too broadly as requiring toconsider all possible users of financial statements when deciding what information to disclose. Our management does not anticipate that the application of these amendments will have a material impact on our consolidated financial statements.These amendments are effective for annual reporting periods beginning on or after January 1, 2020. Earlier application is permitted. We have not optedfor early application. C. Research and Development, Patents and Licenses, etc. See “Business Overview — Intellectual Property.” D. Trend Information See "— Operating Results — Factors Affecting Our Results of Operations." 118 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. E. Off-Balance Sheet Arrangements As of and for the three years ended December 31, 2018, we were not party to any off-balance sheet arrangements. F. Tabular Disclosure of Contractual Obligations Set forth below is information concerning our fixed and determinable contractual obligations as of December 31, 2018 and the effect suchobligations are expected to have on our liquidity and cash flows. Payments due by period (in thousands) Total Less than 1year 1-3 years 3-5 years More than5 years Operating lease obligations $55,222 $16,051 $22,453 $6,500 $10,218 Other financial liabilities (1) 12,765 9,347 3,418 — — Purchase Obligations (2) 4,386 4,386 — — — Total $72,373 $29,784 $25,871 $6,500 $10,218 (1)Relates to Clarice, Ratio, PointSource and Small Footprint acquisitions. See note 24 to our audited consolidated financial statements.(2)Relates to Purchase Agreement with IRSA Inversiones y Representaciones Sociedad Anónima (“IRSA”). See note 21 to our consolidated financialstatements. G. Safe harbor This annual report contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the ExchangeAct and as defined in the Private Securities Litigation Reform Act of 1995. See “Cautionary Statements Regarding Forward-Looking Statements.” ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES A. Directors and Senior Management Directors The table below sets forth information concerning our directors as of March 15, 2019. Name Position Age Date ofAppointment Current TermExpiring at Annual Meeting of Shareholders to Be Held in YearMartín Migoya Chairman of the Board and ChiefExecutive Officer 51 June 20, 2018 2021Martín Gonzalo Umaran Director and Chief of Staff 50 May 8, 2017 2020Guibert Andrés Englebienne Director and Chief Technology Officer 52 May 8, 2017 2020Francisco Álvarez-Demalde Director 40 May 4, 2015 2019Mario Eduardo Vázquez Director 83 May 6, 2016 2019Philip A. Odeen Director 83 June 20, 2018 2021Marcos Galperin Director 47 May 6, 2016 2019Linda Rottenberg Director 50 May 8, 2017 2020Richard Haythornthwaite (*) Director 62 Feb 13, 2019 2019 119 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. (*) Mr. Haythornthwaite was appointed by the board of directors to fill the vacancy on the board of directors created by David J. Moore’s resignationon July 24, 2018. Mr. Haythornthwaite will stand for election by the shareholders at the next annual meeting of the company. Directors may be re-elected for one or more further four-year terms. Directors appointed to fill vacancies remain in office until the next generalmeeting of shareholders. Globant S.A. was incorporated in Luxembourg on December 10, 2012. References to the terms of service or appointment of our directors and seniormanagement in the following biographies include their service to our predecessor companies, which were organized in Spain. Martín Migoya Mr. Migoya has served as Chairman of our board of directors and Chief Executive Officer since 2005. Prior to co-founding Globant, he worked as atrainee and technology project coordinator at Repsol-YPF, a consultant at Origin BV Holland and a business development director at Tallion. He founded ourcompany together with Messrs. Englebienne, Nocetti and Umaran in 2003. Mr. Migoya is frequently invited to lecture at various conventions and atuniversities like MIT and Harvard, and has been a judge at the Endeavor Entrepreneurs panel and at La Red Innova. Mr. Migoya was selected as an EndeavorEntrepreneur in 2005 and won a Konex Award as one of the most innovative entrepreneurs of 2008. He was selected as an Argentine Creative Individual of2009 ( Círculo de Creativos de la Argentina ) and received the Security Award as one of the most distinguished Argentine businessmen of 2009. He alsoreceived in 2009 the America Economía Magazine’s “Excellence Award”, which is given to entrepreneurs and executives that contribute to the growth ofLatin American businesses. In 2011, Latin Trade recognized Mr. Migoya as Emerging CEO of the Year. In 2013, Mr. Migoya received the “Entrepreneur ofthe Year Award” from Ernst & Young. He is a member of the Young President’s Organization and a board member of Endeavor Argentina. Mr. Migoya holds adegree in electronic engineering from Universidad Nacional de La Plata (UNLP) and a master’s degree in business administration, from the Universidad delCentro de Estudios Macroeconómicos de Argentina. We believe that Mr. Migoya is qualified to serve on our board of directors due to his intimate familiaritywith our company and the perspective, experience, and operational expertise in the technology services industry that he has developed during his career andas our co-founder and Chief Executive Officer. Martín Gonzalo Umaran Mr. Umaran has served as a member of our board of directors since 2012 as well as Chief of Staff since 2013. As Globant’s Chief of Staff, Mr. Umaranis responsible for coordinating our back office activities, supporting executives in daily projects and acting as a liaison to our senior management. He is alsoresponsible for our mergers and acquisitions process and for strategic initiatives. From 2005 to 2012, he served as Globant’s Chief Operations Officer andChief Corporate Business Officer, in charge of managing our delivery teams and projects. Together with his three Globant co-founders, Mr. Umaran wasselected as an Endeavor Entrepreneur in 2005. Mr. Umaran holds a degree in mechanical engineering from Universidad Nacional de La Plata (UNLP). Webelieve that Mr. Umaran is qualified to serve on our board of directors due to his intimate familiarity with our company and his perspective, experience, andoperational expertise in the technology services industry that he has developed during his career as a co-founder of our company. Guibert Andrés Englebienne Mr. Englebienne has served as a member of our board of directors and as Chief Technology Officer since 2003. He is one of Globant’s co-founders.Prior to co-founding Globant, Mr. Englebienne worked as a scientific researcher at IBM and, later, as head of technology for CallNow.com Inc. As Globant’sChief Technology Officer, Mr. Englebienne is the head of our Technology department and our Premier League, an elite team of Globers whose mission is tofoster innovation by cross-pollinating their deep knowledge of emerging technologies and related market trends across our Studios and among our Globers.Together with his three Globant co-founders, Mr. Englebienne was selected as an Endeavor Entrepreneur in 2005. In addition to his responsibilities atGlobant, Mr. Englebienne is President of Endeavor Argentina. In 2011, he was included in Globalization Today’s “Powerful 25” list. Mr. Englebienne holdsa bachelor’s degree in Computer Science and Software Engineering from the Universidad Nacional del Centro de la Provincia de Buenos Aires in Argentina.We believe that Mr. Englebienne is qualified to serve on our board of directors due to his intimate familiarity with our company and his perspective,experience, and operational expertise in the technology services industry that he has developed during his career as a co-founder of our company. 120 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Francisco Álvarez-Demalde Mr. Álvarez-Demalde has been a member of the board since 2007. He is a founder and general partner of Riverwood Capital, a leading growth-capital private equity firm focused on the global technology industry, and one of the largest early investors in Globant. From 2005 to 2007, he was aninvestment executive at Kohlberg Kravis Roberts & Co., where he focused on leveraged buyouts in the technology industry and other sectors. Mr. Álvarez-Demalde was also an investment professional at Eton Park Capital Management and with Goldman Sachs & Co. Mr. Álvarez-Demalde is a former and currentdirector of several technology companies, including Alog Data Centers do Brasil, CloudBlue Technologies, Inc., LAVCA, Navent, Netshoes, among severalothers. Mr. Álvarez-Demalde earned a bachelor’s degree in economics from Universidad de San Andrés, Argentina, which included an exchange program atthe Wharton School at the University of Pennsylvania. We believe that Mr. Álvarez-Demalde is qualified to serve on our board of directors due to hisconsiderable business experience in the technology industry and his experience serving as a director of other companies. Mario Eduardo Vázquez Mr. Vázquez has served as a member of our board of directors and chairman of Globant’s audit committee since June 2012. From 2003 to 2006, heserved as the Chief Executive Officer of Grupo Telefónica in Argentina. Mr. Vázquez worked in auditing for Arthur Andersen for 33 years until his retirementin 1993, including 23 years as a partner and general director in many of Globant’s markets, including Argentina, Chile, Uruguay, and Paraguay. As formerpartner and general director of Arthur Andersen, Mr. Vázquez has significant experience with U.S. GAAP accounting and in assessing internal control overfinancial reporting. Mr. Vázquez currently serves on the board of directors of MercadoLibre, Inc and is currently a member of the Audit Committee of bothMercadoLibre, Inc and Despegar S.A. Also, Mr. Vazquez currently serves as member of the compensation committee of MercadoLibre, Inc where Mr. Galperinserves as chief executive officer. Mr. Vázquez served as a member of the board of directors of YPF, S.A. and as the president of the Audit Committee of YPF,S.A, until April 2012. He has also served as a member of the board of directors of Telefónica Argentina S.A., Telefónica Holding Argentina S.A., TelefónicaSpain S.A., Banco Santander Rio S.A., Banco Supervielle Societe General S.A., and CMF Banco S.A., and as alternate member of the board of directors ofTelefónica de Chile S.A. Mr. Vázquez received a degree in public accounting from the Universidad de Buenos Aires. We believe that Mr. Vázquez isqualified to serve on our board of directors due to his financial expertise and his experience serving as a director of other companies. Philip A. Odeen Mr. Odeen has served as a member of our board of directors since 2012. Mr. Odeen has also served as a director and proxy director of DRSTechnologies, Inc. since 2013. From 2009 to 2013, Mr. Odeen served as the chairman of the board of directors and lead independent director of AESCorporation and as a director of AES Corporation from 2003 to 2013. From 2008 to 2013, Mr. Odeen served as the chairman of the board of directors ofConvergys Corporation and as a director of Convergys Corporation from 2000 to 2013. Mr. Odeen has served as a director of QinetiQ North America, Inc.since 2006, Booz Allen Hamilton, Inc. since 2008 and ASC Signal Corporation since 2009. From 2006 to 2007, Mr. Odeen served as chairman of the board ofdirectors of Avaya Corporation. He served on the board of directors of Reynolds and Reynolds Company from 2000 to 2007, and as its chairman from 2006to 2007. Mr. Odeen was a director of Northrop Grumman from 2003 to 2008. Mr. Odeen retired as chairman and chief executive officer of TRW Inc. inDecember 2002. We believe that Mr. Odeen is qualified to serve on our board due to his experience in leadership and guidance of public and privatecompanies as a result of his varied global business, governmental and non-profit and charitable organizational experience. 121 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Marcos Galperin Mr. Galperin has served as a member of our board of directors since July 2014. He is a co-founder of MercadoLibre, Inc. and has served as itschairman, president and chief executive officer since October 1999. Mr. Galperin is a board member of Endeavor Global, Inc., a non-profit organization that isleading the global movement to catalyze long term economic growth by selecting, mentoring and accelerating the best high impact entrepreneurs around theworld. He is also a board member of the Stanford Graduate School of Business. Mr. Galperin received a master’s degree in business administration fromStanford University and graduated with honors from the Wharton School of the University of Pennsylvania. We believe that Mr. Galperin is qualified to serveon our board of directors due to his comprehensive knowledge and experience in the technology industry and experience serving as a director of othercompanies. Linda Rottenberg Ms. Rottenberg has served as a member of our board of directors since 2017. She is the Co-Founder and Chief Executive Officer of Endeavor, aleader of the global high impact entrepreneurship movement, operating in 34 markets around the world. She also oversees Endeavor Catalyst Funds, whichcurrently has over $115 million of assets under management, and coinvest in Endeavor Entrepreneurs to raise outside capital. Ms. Rottenberg serves as boarddirector of a leading bandwidth infrastructure company (NYSE: ZAYO), and an online ordering platform (OLO). In her board capacity, she has served on twopublic company audit committees through SOX compliance and has helped companies achieve global expansion while maintaining an entrepreneurialculture. A graduate of Harvard College, and Yale Law School, Ms. Rottenberg has been named among TIME’s “Innovators for the 21st century’ and U.S.News and World Report’s “America’s Best Leaders”. In 2018, she received the Heinz Award in Technology, the Economy and Employment. We believe thatMs. Rottenberg is qualified to serve on our board of directors due to her knowledge and experience in the technology industry and experience serving asdirector of other companies. Richard Haythornthwaite Mr. Haythornthwaite has served as a member of our board of directors since February 2019. He is the global chairman of the NYSE-listed MastercardInc and an Advisory Partner to Moelis & Co. He is a co-founder and chairman of QIO Technologies, an industrial artificial intelligence company. He is alsoan investor in and chairman of ARC International, the global glass tableware manufacturer. He was previously the CEO of Invensys from 2001-2005 and BlueCircle Industries from 1999-2001 having joined as Director of Asia and Europe in 1997. He spent his early career in BP from 1978-1995 before moving toPremier Oil as Commercial Director from 1995 to 1997. He has served as on the boards of Network Rail as chairman and Cookson, Lafarge, ICI and LandSecurities as non-executive director. In the UK non-for-profit sector he is the current chair of the Creative Industries Federation and former chair of theSouthbank Centre and Almeida Theatre. He was educated at MIT (Sloan Fellow) and The Queen’s College, Oxford (MA Geology). We believe that Mr.Haythornthwaite is qualified to serve on our board of directors due to his extensive business experience, risk management expertise and financialunderstanding. Senior Management As of March 15, 2019, our group senior management is made up of the following members: Name PositionMartín Migoya Chief Executive OfficerMartín Gonzalo Umaran Chief of StaffGuibert Andrés Englebienne Chief Technology OfficerNestor Augusto Nocetti Executive Vice President, Corporate AffairsJuan Ignacio Urthiague Chief Financial OfficerYanina Maria Conti Chief Accounting OfficerGuillermo Willi Chief People OfficerGustavo Barreiro Chief Information OfficerSol Mariel Noello General CounselWanda Weigert Chief Brand OfficerPatricia Pomies Chief Delivery Officer 122 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. The business address of our group senior management is c/o Sistemas Globales S.A., Ing. Butty 240, 9th floor, Laminar Plaza Tower, C1101 AFB,Capital Federal, Argentina. The following is the biographical information of the members of our group senior management other than Messrs. Migoya, Umaran andEnglebienne, whose biographical information is set forth in “— Directors.” Nestor Augusto Nocetti Mr. Nocetti, a co-founder of our company, has been our Executive Vice President, Corporate Affairs since July 2012. Mr. Nocetti manages ourexternal affairs, including our relationships with government agencies, union, industry representatives and the media. Prior to that, he served as our VicePresident, Innovation Labs. Together with Messrs. Migoya, Englebienne, and Umaran, Mr. Nocetti was selected as an Endeavor Entrepreneur in 2005. Heholds a degree in electronic engineering from Universidad Nacional de La Plata (UNLP) and a certificate in business management from the Business School(IAE) of Universidad Austral. Juan Ignacio Urthiague Mr. Urthiague has been our Chief Financial Officer since October 2018 and is in charge of corporate finance, treasury, accounting and tax, financialreporting, financial services and investor relations. Mr. Urthiague joined Globant in 2011, and was a key member in the company’s global expansion andtransformation into a publicly listed company on the NYSE. Prior to his return to Globant, he spent 15 months outside the company serving as ChiefFinancial Officer Latam for OLX and as Chief Financial Officer for avantrip.com. Prior to joining Globant in 2011, Mr. Urthiague worked as PlanningManager for Amadeus IT Group in Spain and as Senior Credit Specialist at Merrill Lynch in Ireland. He also held financial roles for companies like BritishAmerican Tobacco, Ternium and IBM. Mr. Urthiague has a MSc. in Finance and Capital Markets from Dublin City University and a Bachelor’s degree inBusiness Administration from the Universidad de Buenos Aires. Yanina Maria Conti Mrs. Conti has been our Chief Accounting Officer since 2017. From 2013 until 2017, she served as our SEC Reporting and Audit Manager. From2004 to 2013, Mrs. Conti worked for Ernst & Young, auditing large public and private firms and gaining experience with IFRS accounting and auditprocedures. As our Chief Accounting Officer, Mrs. Conti is in charge of accounting, tax, external audit and reporting. Mrs. Conti has a degree in publicaccounting and in business administration from the Universidad de Buenos Aires. Guillermo Willi Mr. Willi has been our Chief People Officer since September 2011. From 2009 to 2011, he served as the Human Resources Director for MicrosoftArgentina and Uruguay, where he was in charge of leading Microsoft’s human resources policies, developing internal talent and maintaining diversity andinclusion. Between 2007 and 2009, he was the Human Resources Director for Pampa Energia , and from 2002 to 2007 he served as the Human ResourcesDirector for EDS Argentina and Chile. As Globant’s Chief People Officer, he is responsible for overseeing the strategy for talent management anddevelopment, along with the creation of organizational capabilities and culture. Mr. Willi has a bachelor’s degree in political science from the Universidadde Buenos Aires and has completed post-graduate studies in management and human resources at Cornell University. Gustavo Barreiro Mr. Barreiro has been our Chief Information Officer since July 2012. From 2010 to July 2012, Mr. Barreiro served as our Executive Vice President,Delivery, managing our delivery partners, staffing, recruiting, project managers, and site managers. As Globant's Chief Information Officer, Mr. Barreiro isresponsible for our infrastructure team (IT operations and information security), enterprise applications, and IT services. He holds a bachelor's degree inindustrial engineering from the Universidad de Buenos Aires and a master's degree in business administration from the Instituto para el DesarolloEmpresario Argentino (IDEA). 123 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Sol Mariel Noello Mrs. Noello has been our General Counsel since December 2018. She first joined Globant as Legal Counsel in 2011 and has been in charge ofsupervising the functions of Globant´s Legal department since February 2015, in the roles of Leader and of Manager of Globant´s Legal department. In suchroles Mrs. Noello contributed to the growth of the area and the development of an internal legal support system, including the implementation of processesand controls related to the legal function within the company. Before joining Globant, Mrs. Noello worked at Tata Consultancy Services from 2009 to 2011as Legal Officer in the company´s regional legal department for LATAM. Mrs. Noello holds a law degree from Universidad de Belgrano in Argentina and hascompleted a number of post-graduate courses in corporate law at Universidad Argentina de la Empresa. Wanda Weigert Mrs. Weigert has been our Chief Brand Officer since November 2018. From 2007 to 2018 she served as our Communications Manager and Directorof Communications and Marketing. She joined Globant in 2005 and worked for two years in the Internet marketing department as a senior consultant. From2002 to 2005, she worked at Jota Group, a publishing house where she was responsible for the development of corporate communications tools for differentmultinational customers. Mrs. Weigert created and supervises Globant’s communications department. As our Chief Brand Officer, she coordinates Globant’srelationships with the press throughout the globe. She is also responsible for developing both our internal and external communications strategies. Mrs.Weigert holds a bachelor’s degree in social communications from Universidad Austral and she completed her post-graduate studies in marketing at thePontificia Universidad Católica Argentina “Santa Maria de los Buenos Aires." Patricia Pomies Mrs. Pomies has been our Chief Delivery Officer since January 2017. In this role, Mrs. Pomies is in charge of our overall strategy related to quality ofservice and delivery. Mrs. Pomies first joined our company in 2012 and was previously a director of Europe, Middle East and Africa (EMEA) and on-line,insurance and travel (OIT), two of our main business units. As such, she was responsible for each unit’s business and operations, with particular focus onexpanding the EU market. Mrs. Pomies was director at Educ.ar Portal from 2003 to 2013, a key initiative within Argentina’s Ministry of Education forprincipals, teachers, students and families to adopt information and communication technologies in education. Additionally, she was responsible for contentproduction and tracking of “Equality Connect,” a program directly supported by the President of Argentina to distribute more than 3.5 million netbookswithin the Argentine public education system. Mrs. Pomies has been a Professor of Social Communication at Maimonides University and Assistant Professorof Communication Sciences at the University of Buenos Aires. B. Compensation Compensation of Board of Directors and Senior Management The total fixed and variable remuneration of our directors and senior management for the years ended December 31, 2018, 2017 and 2016 amountedto $5.1 million, $4.5 million and $4.4 million, respectively. We adopted an equity incentive plan in connection with the completion of our initial public offering. See “— 2014 Equity Incentive Plan”. Fromthe adoption of this plan until the date of this annual report we granted to members of our senior management and certain other employees 30,000 stockawards, options to purchase 2,277,434 common shares and 770,849 restricted stock units. In addition, we replaced our existing variable compensationarrangements with a new short-term incentive plan providing for the payment of bonuses based on the achievement of certain financial and operatingperformance measures. 2014 Equity Incentive Plan On July 3, 2014, our board of directors and shareholders approved and adopted our 2014 Equity Incentive Plan, which was amended by our board ofdirectors to increase the number of common shares that may be issued as stock awards from 1,666,667 to up to 3,666,667 on May 9, 2016, and from3,666,667 to 5,666,667 on February 13, 2019. The following description of the plan is qualified in its entirety by the full text of the plan, which has beenfiled with the SEC as an exhibit to the registration statement previously filed in connection with our initial public offering and incorporated by referenceherein. 124 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Purpose. We believe that the plan will promote our long-term growth and profitability by (i) providing key people with incentives to improveshareholder value and to contribute to our growth and financial success through their future services, and (ii) enabling us to attract, retain and reward the best-available personnel. Eligibility; Types of Awards. Selected employees, officers, directors and other individuals providing bona fide services to us or any of our affiliates,are eligible for awards under the plan. The administrator of the plan may also grant awards to individuals in connection with hiring, recruiting or otherwisebefore the date the individual first performs services; however, those awards will not become vested or exercisable before the date the individual firstperforms services. The plan provides for grants of stock options, stock appreciation rights, restricted or unrestricted stock awards, restricted stock units,performance awards and other stock-based awards, or any combination of the foregoing. Common Shares Subject to the Plan. The number of common shares that we may issue with respect to awards granted under the plan will not exceedan aggregate of 5,666,667 common shares. This limit will be adjusted to reflect any stock dividends, split ups, recapitalizations, mergers, consolidations,share exchanges, and similar transactions. If any award, or portion of an award, under the plan expires or terminates unexercised, becomes unexercisable, issettled in cash without delivery of common shares, or is forfeited or otherwise terminated or cancelled as to any common shares, the common shares subject tosuch award will thereafter be available for further awards under the plan. Common shares used to pay the exercise price of an award or tax obligations will notbe available again for other awards under the plan. Administration. The plan is administered by our compensation committee. The administrator has the full authority and discretion to administer theplan and to take any action that is necessary or advisable in connection with the administration of the plan, including without limitation the authority anddiscretion to interpret and construe any provision of the plan or any agreement or other documents relating to the plan. The administrator’s determinationswill be final and conclusive. Awards. The plan provides for grants of stock options, stock appreciation rights, restricted or unrestricted stock awards, restricted stock units,performance awards and other stock-based awards. Stock Options. The plan allows the administrator to grant incentive stock options, as that term is defined in section 422 of the Internal RevenueCode, or non-statutory stock options. Only our employees or employees of our subsidiaries may receive incentive stock option awards. Options must have anexercise price that is at least equal to the fair market value of the underlying common shares on the date of grant and not lower than the par value of theunderlying common shares. The option holder may pay the exercise price in cash or by check, by tendering common shares, by a combination of cash andcommon shares, or by any other means that the administrator approves. The options have a maximum term of ten years; however, the options will expireearlier if the optionee’s service relationship with the company terminates. Stock Appreciation Rights. The plan allows the administrator to grant awards of stock appreciation rights which entitle the holder to receive apayment in cash, in common shares, or in a combination of both, having an aggregate value equal to the product of the excess of the fair market value on theexercise date of the underlying common shares over the base price of the common shares specified in the grant agreement, multiplied by the number ofcommon shares specified in the award being exercised. Stock Awards. The plan allows the administrator to grant awards denominated in common shares or other securities, stock equivalent units orrestricted stock units, securities or debentures convertible into common shares or any combination of the foregoing, to eligible participants. Awardsdenominated in stock equivalent units will be credited to a bookkeeping reserve account solely for accounting purposes. The awards may be paid in cash, incommon shares or in a combination of common shares or other securities and cash. 125 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Performance Awards. The plan allows the administrator to grant performance awards including those intended to constitute “qualified performance-based compensation” within the meaning of Section 162(m) of the U.S. Internal Revenue Code. The administrator may establish performance goals relatingto any of the following, as it may apply to an individual, one or more business units, divisions or subsidiaries, or on a company-wide basis, and in eitherabsolute terms or relative to the performance of one or more comparable companies or an index covering multiple companies: revenue; earnings beforeinterest, taxes, depreciation and amortization (EBITDA); operating income; pre- or after-tax income; cash flow; cash flow per share; net earnings; earnings pershare; price-to-earnings ratio; return on equity; return on invested capital; return on assets; growth in assets; share price performance; economic value added;total shareholder return; improvement in or attainment of expense levels; improvement in or attainment of working capital levels; relative performance to agroup of companies comparable to the company, and strategic business criteria consisting of one or more objectives based on the company’s meetingspecified goals relating to revenue, market penetration, business expansion, costs or acquisitions or divestitures. Performance targets may include minimum,maximum, intermediate and target levels of performance, with the size of the performance-based stock award or the lapse of restrictions with respect theretobased on the level attained. A performance target may be stated as an absolute value or as a value determined relative to prior performance, one or more indexes, budget, one ormore peer group companies, any other standard selected by the administrator, or any combination thereof. The administrator shall be authorized to makeadjustments in the method of calculating attainment of performance measures and performance targets in recognition of: (A) extraordinary or non-recurringitems; (B) changes in tax laws; (C) changes in accounting policies; (D) charges related to restructured or discontinued operations; (E) restatement of priorperiod financial results; and (F) any other unusual, non-recurring gain or loss that is separately identified and quantified in our financial statements.Notwithstanding the foregoing, the administrator may, in its sole discretion, modify the performance results upon which awards are based under the plan tooffset any unintended results arising from events not anticipated when the performance measures and performance targets were established. Change in Control. In the event of any transaction resulting in a “change in control” of Globant S.A. (as defined in the plan), outstanding stockoptions and other awards that are payable in or convertible into our common shares will terminate upon the effective time of the change in control unlessprovision is made in connection with the transaction for the continuation, assumption, or substitution of the awards by the surviving or successor entity or itsparent. In the event of such termination, the holders of stock options and other awards under the plan will be permitted immediately before the change incontrol to exercise or convert all portions of such stock options or awards that are exercisable or convertible or which become exercisable or convertible uponor prior to the effective time of the change in control. Notwithstanding the foregoing, the vesting schedule of all of the outstanding stock options granted to certain senior executives will be acceleratedin the event of a transaction resulting in a change in control if (i) no provision is made in connection with the transaction for the continuation or assumptionof the relevant executive’s outstanding options by, or for the substitution of the equivalent awards of, the surviving or successor entity or a parent thereof, or(ii) the relevant executive is dismissed without cause within a two-year period following the change in control. Amendment and Termination. No award will be granted under the plan after the close of business on the day before the tenth anniversary of theeffective date of the plan. Our board of directors may amend or terminate the plan at any time. Shareholder approval is required to reprice underwater options. Director Compensation Independent members of our board of directors receive cash compensation for their services as directors and reimbursement of reasonable anddocumented costs and expenses incurred by them in connection with attending any meetings of our board of directors or any committees thereof. Members ofour senior management who are members of our board of directors (Messrs. Migoya, Umaran and Englebienne) have received and will continue receivingcash compensation and share based compensation for their services as executive officers. See “— Compensation of Board of Directors and SeniorManagement.” In 2018, we paid an aggregate of $430,000 in director fees to certain members of our board of directors who are considered independent. 126 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Members of our senior management who are members of our board of directors will not receive compensation from us for their service on our boardof directors. Accordingly, Messrs. Migoya, Umaran and Englebienne will not receive compensation from us for their service on our board of directors. Onlythose directors who are considered independent directors under the corporate governance rules of the NYSE will be eligible, subject to our shareholders’approval, to receive compensation from us for their service on our board of directors. Ms. Rottenberg and Messrs. Galperin, Odeen, Álvarez-Demalde,Haythornthwaite and Vázquez as well as other independent directors will be paid annually a cash amount ranging between $75,000 and $100,000. In 2018, we granted restricted stock units to Linda Rottenberg, Martin Migoya, Martín Umaran and Guibert Englebienne in the amounts of 2,174,35,000, 15,000 and 12,000, respectively, all of which are subject to ratification by our shareholders at the annual general meeting. Benefits upon Termination of Employment Neither we nor our subsidiaries maintain any directors’ service contracts providing for benefits upon termination of service. On December 27, 2012,we entered into noncompetition agreements with our founders. Under such agreements, the founders agreed that during their employment with our company,and for a period of two years from the termination of such employment, they will not directly or indirectly perform any kind of activity or provide any servicein other companies that provide the same kinds of services as those provided by us. In consideration of these noncompetition covenants, the founders willreceive compensation equal to 24 times the highest monthly compensation paid to them during the 12-month period immediately preceding the date oftermination of their employment. This compensation will be paid in two equal installments. In 2016, our compensation committee approved an amendment to Martín Migoya’s noncompetition agreement to increase his compensation to 36times the highest monthly compensation paid to him during the 12-month period immediately preceding the date of termination of his employment. Inaddition, our compensation committee approved an amendment each founder’s noncompetition agreement so that the compensation calculation will includethe proportional amount of any variable annual cash compensation payable to each founder, at target amounts, and that each founder will be entitled toreceive continued health coverage and life insurance after the termination of their employment and for a period of 36 months in the case of Martín Migoyaand of 24 months in the case of Messrs Umaran, Englebienne and Nocetti. In addition, our compensation committee approved the execution of a noncompetition agreement with Mr. Marsicovetere, our former ChiefOperating Officer, Mr. Scannapieco and Ms. Pomies, under substantially similar terms and conditions to those applicable to those of Messrs. Umaran,Englebienne and Nocetti. Pension, Retirement or Similar Benefits We do not pay or set aside any amounts for pension, retirement or other similar benefits for our officers or directors. C. Board Practices Globant S.A. is managed by our board of directors which is vested with the broadest powers to take any actions necessary or useful to fulfill ourcorporate purpose with the exception of actions reserved by law or our articles of association to the general meeting of shareholders. Our articles ofassociation provide that our board of directors must consist of at least seven members and no more than fifteen members. Our board of directors meets as oftenas company interests require. A majority of the members of our board of directors present or represented at a board meeting constitutes a quorum, and resolutions are adopted bythe simple majority vote of our board members present or represented. In the case of a tie, the chairman of our board shall have the deciding vote. Our boardof directors may also make decisions by means of resolutions in writing signed by all directors. 127 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Directors are elected by the general meeting of shareholders, and appointed for a period of up to four years; provided, however, that directors areelected on a staggered basis, with one-third of the directors being elected each year; and provided, further, that such term may be exceeded by a period up tothe annual general meeting held following the fourth anniversary of the appointment, and each director will hold office until his or her successor is elected.The general shareholders’ meeting may remove one or more directors at any time, without cause and without prior notice by a resolution passed by simplemajority vote. If our board of directors has a vacancy, such vacancy may be filled on a temporary basis by a person designated by the remaining members ofour board of directors until the next general meeting of shareholders, which will resolve on a permanent appointment. Any director shall be eligible for re-election indefinitely. Within the limits provided for by law and our articles of association, our board of directors may delegate to one or more directors or to any one ormore persons, who need not be shareholders, acting alone or jointly, the daily management of Globant S.A. and the authority to represent us in connectionwith such daily management. Our board of directors may also grant special powers to any person(s) acting alone or jointly with others as agent of GlobantS.A. Our board of directors may establish one or more committees, including without limitation, an audit committee, a corporate governance andnominating committee and a compensation committee, and for which it shall, if one or more of such committees are set up, appoint the members, determinethe purpose, powers and authorities as well as the procedures and such other rules as may be applicable thereto. No contract or other transaction between us and any other company or firm shall be affected or invalidated by the fact that any one or more of ourdirectors or officers is interested in, or is a director, associate, officer, agent, adviser or employee of such other company or firm. Any director or officer whoserves as a director, officer or employee or otherwise of any company or firm with which we shall contract or otherwise engage in business shall not, by reasonof such affiliation with such other company or firm only, be prevented from considering and voting or acting upon any matters with respect to such contractor other business. Any director having an interest in a transaction submitted for approval to our board of directors that conflicts with our interest, must inform ourboard of directors thereof and to cause a record of his statement to be included in the minutes of the meeting. Such director may not take part in thesedeliberations and may not vote on the relevant transaction. At the next general meeting, before any resolution is put to a vote, a special report shall be madeon any transactions in which any of the directors may have had an interest that conflicts with our interest. No shareholding qualification for directors is required. Any director and other officer, past and present, is entitled to indemnification from us to the fullest extent permitted by law against liability and allexpenses reasonably incurred or paid by such director in connection with any claim, action, suit or proceeding in which he is involved as a party or otherwiseby virtue of his being or having been a director. We may purchase and maintain insurance for any director or other officer against any such liability. No indemnification shall be provided against any liability to us or our shareholders by reason of willful misconduct, bad faith, gross negligence orreckless disregard of the duties of a director or officer. No indemnification will be provided with respect to any matter as to which the director or officer shallhave been finally adjudicated to have acted in bad faith and not in our interest, nor will indemnification be provided in the event of a settlement (unlessapproved by a court or our board of directors). Board Committees Our board of directors has established an audit committee, a compensation committee and a corporate governance and nominating committee. Ourboard of directors may from time to time establish other committees. Audit Committee Our audit committee oversees our corporate accounting and financial reporting process. Among other matters, our audit committee: 128 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. •is responsible for the appointment, compensation and retention of our independent auditors and reviews and evaluates the auditors’qualifications, independence and performance; •oversees our auditors’ audit work and reviews and pre-approves all audit and non-audit services that may be performed by them; •reviews and approves the planned scope of our annual audit; •monitors the rotation of partners of the independent auditors on our engagement team as required by law; •reviews our financial statements and discusses with management and our independent auditors the results of the annual audit and the review ofour quarterly financial statements; •reviews our critical accounting policies and estimates; •oversees the adequacy of our accounting and financial controls; •annually reviews the audit committee charter and the committee’s performance; •reviews and approves related-party transactions; and •establishes and oversees procedures for the receipt, retention and treatment of complaints regarding accounting, internal controls or auditingmatters and oversees enforcement, compliance and remedial measures under our code of conduct. The current members of our audit committee are Messrs. Rottenberg, Odeen and Vázquez, with Mr. Vázquez serving as the chairman of our auditcommittee and our audit committee financial expert as currently defined under applicable SEC rules. Each of Messrs. Vázquez, Rottenberg and Odeensatisfies the “independence” requirements within the meaning of Section 303A of the corporate governance rules of the NYSE as well us under Rule 10A-3under the Exchange Act. On May 13, 2014, our board of directors adopted a written charter for our audit committee, which is available on our website athttp://www.globant.com. Compensation Committee Our compensation committee reviews, recommends and approves policy relating to compensation and benefits of our officers and directors,administers our common shares option and benefit plans and reviews general policy relating to compensation and benefits. Duties of our compensationcommittee include: •reviewing and approving corporate goals and objectives relevant to compensation of our directors, chief executive officer and other members ofsenior management; •evaluating the performance of the chief executive officer and other members of senior management in light of those goals and objectives; •based on this evaluation, determining and approving the compensation of the chief executive officer and other members of senior management; •administering the issuance of common shares options and other awards to members of senior management and directors under our compensationplans; and •reviewing and evaluating, at least annually, the performance of the compensation committee and its members, including compliance of thecompensation committee with its charter. The current members of our compensation committee are Mr. Vázquez, Odeen and Galperin, with Mr. Vázquez serving as chairman. Each of Messrs.Vázquez, Odeen and Galperin satisfies the “independence” requirements within the meaning of Section 303A of the corporate governance rules of the NYSE. Effective as of July 23, 2014, our board of directors adopted a written charter for our compensation committee, which is available on our website athttp://www.globant.com. 129 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Corporate Governance and Nominating Committee Our corporate governance and nominating committee identifies individuals qualified to become directors; recommends to our board of directorsdirector nominees for each election of directors; develops and recommends to our board of directors criteria for selecting qualified director candidates;considers committee member qualifications, appointment and removal; recommends corporate governance guidelines applicable to us; and providesoversight in the evaluation of our board of directors and each committee. The current members of our corporate governance and nominating committee are Messrs. Galperin, Odeen and Vázquez, with Mr. Vázquez serving aschairman. Each of Messrs. Galperin, Vázquez and Odeen satisfies the “independence” requirements within the meaning of Section 303A of the corporategovernance rules of the NYSE. Effective as of July 23, 2014, our board of directors adopted a written charter for our corporate governance and nominating committee, which isavailable on our website at www.globant.com. D. Employees Our Globers People are one of our most valuable assets. Attracting and retaining the right employees is critical to the success of our business and is a key factor inour ability to meet our client’s needs and the growth of our client and revenue base. As of December 31, 2018, 2017 and 2016, on a consolidated basis, we had 8,384, 6,753 and 5,631 employees, respectively. As of December 31, 2018, we had 38 Globers, principally at our delivery center in Rosario, Argentina, who are covered by a collective bargainingagreement with the trade union Federación Argentina de Empleados de Comercio y Servicios (“FAECYS”), which is renewed on an annual basis. In addition,the Globers from our Brazilian payroll are affiliated to the trade union SINDPD-SP, the Globers from our Spanish payroll are affiliated with the trade unionsUGT y CCOO - Oficinas y Despachos de la Comunidad de Madrid, ad the Globers from our French payroll are affiliated to the trade union Federation Syntec. The following tables show our total number of full-time employees as of December 31, 2018 broken down by functional area and geographicallocation: Number ofemployees Technology 7,314 Operations 507 Sales and Marketing 85 Management and administration 478 Total 8,384 130 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Number ofemployees Argentina 2,857 Brazil 22 Colombia 2,095 Chile 219 United Kingdom 35 Uruguay 412 United States 585 Mexico 861 Peru 100 India 972 Spain 75 Belarus 70 Romania 81 Total 8,384 In 2007, we commenced shifting from a Buenos Aires-centric delivery model to a distributed organization with locations across Argentina, LatinAmerica, Asia, and elsewhere. We believe that decentralizing our workforce and delivery centers improves our access to talent and could mitigate the impactof IT professionals’ attrition on our business. Additionally, we provide employees with more choices of where to work, which improves satisfaction and helpsus retain our Globers. We continue to draw talent primarily from Latin America and Asia’s abundant skilled talent base. We believe our relations with our employees are good and we have not experienced any significant labor disputes or work stoppages. Recruitment and Retention We have a global presence with delivery centers in North America, Latin America, Europe, and Asia. Our de-centralization strategy allow us toexpand and diversify our sources of talent in our development centers all over the world. Our offices are located near regional academic and engineering hubs to facilitate our access to a growing talent base. In the case of Latin America,certain of the top universities from the region are located in cities where we have delivery centers with large operations. We work closely with those colleges,as well as non-governmental organizations, tech clusters and professional organizations to nurture the technological ecosystem and create opportunities forgrowth for both Globant and our current and prospective Globers, through meetups, conferences, bootcamps and recruiting events. We seek employees who are motivated to be part of a leading company that uses the latest technologies in the digital and cognitive field totransform organizations in every aspect. Of our employee base, approximately 72% of our Globers have obtained a university degree and 23% are undergoing university-level studies whilethey are employed by our company. Approximately 3.2% have obtained a postgraduate level degree, and many have specialized industry credentials orlicensing, including in systems engineering, electronic engineering, computer science, information systems administration, business administration andgraphic and web design. Since our inception, we believe we have become a unique player for IT university graduates in the countries where we have operations. Our cultureis the foundation that supports and facilitates our distinctive approach. Globant was named a Best Company for Culture and Diversity in 2018 and listed asone of the top 25 best companies for diversity in 2017 by Comparably.com. This culture can be best described as entrepreneurial, flexible, sustainable and team-oriented. Diversity and Inclusion are key to our business.Technology requires us to innovate constantly, and there is no way to innovate if we do not connect different points of view. We believe that a person whothinks and lives differently is not a threat or a problem, but on the contrary, offers everyone an opportunity to learn, grow, and co-create. This is why we striveto find talent in diverse places and walks of life, and why we launched several initiatives to strengthen our diversity. 131 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Employee retention is one of our main priorities and a key driver of operational efficiency and productivity. We seek to retain top talent byproviding the opportunity to work on cutting-edge projects for world-class clients, a flexible work environment, training and development programs, andnon-traditional benefits. The total attrition rate among our Globers was 18.2%, 18.0% and 19.3% for the years ended December 31, 2018, 2017 and 2016,respectively. Training and Development We dedicate significant resources to the development and professional growth of our employees through learning experiences, career plans,mentoring, talent assessment, succession planning and performance management. In 2015, Globant Academy was launched. Globant Academy is a continuous training program in which all of our training efforts are consolidatedand formalized within four distinct schools (Technology, Leadership, Corporate and Languages). The Technology School was created to promote science, technology, engineering, software development and design. The Leadership School is forself-development, which facilitates training on social skills in order to become a successful leader. The Corporate School was created to educate ouremployees about agile methodologies, our internal processes and procedures. The Language School is to support learning and practicing the most popularlanguages in the industry. Depending on the requirements of the particular program, we employ various training methodologies such as e-learning, virtual learning, face-to-face and blended learning. We also use specific programs to recruit, train and develop our employees. Bootcamps is a program to select, train and hire talented employees. U-Grow is a program to educate university students about technologies, processes and methodologies while they intern with us. This program also serves as arecruitment source of junior-level employees. Acamica is an e-learning platform to provide technical training through in-person courses and videos. One of our main focuses is to provide transparency and enable our employees to enhance their profession development within our organization. Aspart of our efforts to accomplish these objectives, we host an ongoing program, called “Keep your Career Moving". For our leaders, we offer a Leadership Community, in which leaders can find relevant information for their roles and obtain training through variousofferings, including specific onboardings, knowledge sharing sessions and various resource materials. During 2018 we launched “LeAP” (LeadershipAccelerator Program), which aims to help foster our Leaders’ development and strengthen their management skills by giving them all the essential tools toleap ahead in their careers. Through our Learning Community, we give our trainers and our learning content developers a space to share experiences, connect with others withthe same interests and provide the resources to have the best learning experiences at Globant. Compensation We offer our Globers a compensation package consisting of base salary, short term incentives, long term incentives (for certain eligible positions)and fringe benefits. The variable component of our compensation package is intended to strengthen the our values and culture, foster employee improvementand development, and align with our business strategy to pay for performance and development. Based on the Glober's position, bonus payments under theshort term incentive plan are contingent on the accomplishment of key metrics, such as performance results, manager feedback and Globant's results. For keyemployees, we offer a long term incentive program in the form of share based compensation. 132 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. We offer several benefits including subsidized company trips, extended maternity and paternity leaves, health plans for Globers (and in somecountries, for the Glober's family), yoga, relaxation and massage sessions, and corporate discount programs at certain universities and gyms, among others. E. Share Ownership Share Ownership The total number of shares of the company beneficially owned by our directors and executive officers, as of the date of this annual report, was1,700,088 (includes common shares subject to options that are currently exercisable or will be exercisable within 60 days of March 15, 2019 as well ascommon shares issuable upon settlement of restricted stock units that have vested or will vest within 60 days of March 15, 2019), which represents 4.61% ofthe total shares of the company. See table in “Major Shareholders and Related Party Transactions — Major Shareholders.” Share Options See “— Compensation — Compensation of Board of Directors and Senior Management — 2014 Equity Incentive Plan.” 133 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS A. Major Shareholders The following table sets forth information regarding beneficial ownership of our common shares as of March 15, 2019, by: •each of our directors and members of senior management individually; •all directors and members of senior management as a group; and •each shareholder whom we know to own beneficially more than 5% of our common shares. As of March 15, 2019, we had 36,392,510 issued and outstanding common shares. Beneficial ownership for the purposes of the following table isdetermined in accordance with the rules and regulations of the SEC. These rules generally provide that a person is the beneficial owner of securities if suchperson has or shares the power to vote or direct the voting thereof, or to dispose or direct the disposition thereof, to receive the economic benefit of ownershipof the securities, or has the right to acquire such powers within 60 days. Common shares subject to options, restricted stock units, warrants or otherconvertible or exercisable securities that are currently convertible or exercisable or convertible or exercisable within 60 days of March 15, 2019 are deemedto be outstanding and beneficially owned by the person holding such securities. Common shares issuable pursuant to share options or warrants are deemedoutstanding for computing the percentage ownership of the person holding such options or warrants but are not outstanding for computing the percentage ofany other person. To our knowledge, except as indicated in the footnotes to this table and pursuant to applicable community property laws, the personsnamed in the table have sole voting and investment power with respect to all of our common shares. As of March 15, 2019, we had 132 holders of record inthe United States with approximately 89.80% of our issued and outstanding common shares. 134 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Number Percent Directors and Senior Management Francisco Álvarez-Demalde (1) 13,500 * Gustavo Barreiro (2) 55,003 * Yanina Maria Conti (3) 667 * Guibert Andres Englebienne (4) 370,764 1.02%Marcos Galperin (5) 22,170 * Richard Haythornthwaite - * Martín Migoya (6) 342,759 * Nestor Augusto Nocetti (7) 349,565 * Sol Mariel Noello (8) 5,250 * Philip A. Odeen (9) 22,170 * Patricia Pomies (10) 16,750 * Linda Rottenberg (11) 2,174 * Martín Gonzalo Umaran (12) 414,190 1.14%Juan Ignacio Urthiague - * Mario Vazquez (13) 22,170 * Wanda Weigert (14) 16,500 * Guillermo Willi (15) 46,456 * All Directors and Senior Management as a group 1,700,088 4.66%*Less than 1% 5% or More Shareholders: Morgan Stanley Investment Management Inc. (16) 3,096,363 8.51%Wellington Management Group LLP (17) 2,267,536 6.23%Wasatch Advisors, Inc. (18) 2,002,342 5.50%GIC Asset Management Pte. LTD (19) 1,988,214 5.46% (1)Includes 13,500 common shares issuable upon exercise of vested options and settlement of restricted stock units, as applicable.(2)Includes 19,500 common shares issuable upon exercise of vested options and settlement of restricted stock units, as applicable.(3)Includes 667 common shares issuable upon exercise of vested options and settlement of restricted stock units, as applicable.(4)Includes 93,000 common shares issuable upon exercise of vested options and settlement of restricted stock units, as applicable, and 177,166 commonshares held by a revocable trust formed under Wyoming law (the “Revocable Englebienne Trust Shares”) formed by Mr. Englebienne that wasestablished for the benefit of Mr. Englebienne, his wife and certain charitable organizations. Subsequently, the trust transferred its RevocableEnglebienne Trust Shares to a Uruguayan company wholly owned by the trust. Angerona Trust Company LLC acts as the independent trustee of thetrust. Angerona Group Administration Limited is the sole director of the Uruguayan company and holds voting and dispositive power over the 177,166common shares held by such company.(5)Includes 22,170 common shares issuable upon exercise of vested options and settlement of restricted stock units, as applicable.(6)Includes 156,500 common shares issuable upon exercise of vested options and settlement of restricted stock units, as applicable, and 147,040 commonshares held by a revocable trust formed under Wyoming law (the “Revocable Migoya Trust Shares”) formed by Mr. Migoya that was established for thebenefit of Mr. Migoya, his wife and certain charitable organizations. Subsequently, the trust transferred its Revocable Migoya Trust Shares to aUruguayan company wholly owned by the trust. Angerona Trust Company LLC acts as the independent trustee of the trust. Angerona GroupAdministration Limited is the sole director of the Uruguayan company and holds voting and dispositive power over the 147,040 common shares held bysuch company. 135 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. (7)Includes 12,500 common shares issuable upon exercise of vested options and settlement of restricted stock units, as applicable, and 252,770 commonshares held by a revocable trust formed under Wyoming law (the “Revocable Nocetti Trust Shares”) formed by Mr. Nocetti that was established for thebenefit of Mr. Nocetti, his wife and certain charitable organizations. Subsequently, the trust transferred its Revocable Nocetti Trust Shares to aUruguayan company wholly owned by the trust. Angerona Trust Company LLC acts as the independent trustee of the trust. Angerona GroupAdministration Limited is the sole director of the Uruguayan company and holds voting and dispositive power over the 252,770 common shares held bysuch company.(8)Includes 5,250 common shares issuable upon exercise of vested options and settlement of restricted stock units, as applicable.(9)includes 22,170 common shares issuable upon exercise of vested options and settlement of restricted stock units, as applicable.(10)Includes 16,750 common shares issuable upon exercise of vested options and settlement of restricted stock units, as applicable.(11)Includes 2,174 common shares issuable upon exercise of vested options and settlement of restricted stock units, as applicable.(12)Includes 80,000 common shares issuable upon exercise of vested options and settlement of restricted stock units, as applicable, and 259,241 commonshares held by a revocable trust formed under Wyoming law (the “Revocable Umaran Trust Shares”) formed by Mr. Umaran that was established for thebenefit of Mr. Umaran, his wife and certain charitable organizations. Subsequently, the trust transferred its Revocable Umaran Trust Shares to aUruguayan company wholly owned by the trust. Angerona Trust Company LLC acts as the independent trustee of the trust. Angerona GroupAdministration Limited is the sole director of the Uruguayan company and holds voting and dispositive power over the 259,241 common shares held bysuch company.(13)Includes 22,170 common shares issuable upon exercise of vested options and settlement of restricted stock units, as applicable.(14)Includes 16,500 common shares issuable upon exercise of vested options and settlement of restricted stock units, as applicable.(15)Includes 32,791 common shares issuable upon exercise of vested options and settlement of restricted stock units, as applicable.(16)Based on a Schedule 13G filed jointly by Morgan Stanley and Morgan Stanley Investment Management Inc. (“MSIM”) with the SEC on February 12,2019. Each of Morgan Stanley and MSIM beneficially own 3,096,363 of our common shares, have shared voting power with respect to 1,467,412 sharesand shared dispositive power with respect to all 3,096,363 shares. The securities are being reported upon by Morgan Stanley and MSIM, in their capacityas an investment adviser in accordance with Rule 240.13d-1(b)(1)(ii)(E) and a parent holding company under Rule 240.13d-1(b)(1)(ii)(G) of theExchange Act. The securities being reported on by Morgan Stanley as a parent holding company are owned, or may be deemed to be beneficially owned,by MSIM, a wholly-owned subsidiary of Morgan Stanley.(17)Based on a Schedule 13G filed jointly by Wellington Management Group LLP, Wellington Group Holdings LLP, Wellington Investment AdvisorsHoldings LL and Wellington Management Company LLP (the “Reporting Entities”) with the SEC on February 14, 2019. The Reporting Entities in theircapacity as an investment adviser in accordance with Rule 240.13d-1(b)(1)(ii)(E) of the Exchange Act and as a parent holding company or control personin accordance with Rule 240.13d-1(b)(1)(ii)(G), beneficially own 2,267,536 of our common shares, and have shared voting power with respect to1,980,848 shares and shared dispositive power with respect to all 2,267,536 shares.(18)Based on a Schedule 13G filed with the SEC on February 14, 2019. Wasatch Advisors, Inc beneficially owns 2,002,342 of our common shares and hassole and dispositive power with respect to all of such shares.(19)Based on a Schedule 13G/A filed with the SEC on January 21, 2019. GIC Private Limited beneficially owns 1,988,214 of our common shares and hassole and dispositive power with respect to 1,527,218 of such shares and shared voting and dispositive power with respect to 460,996 of such shares. 136 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. B. Related Party Transactions Registration Rights Agreement On July 23, 2014, we entered into a registration rights agreement with Messrs. Migoya, Umaran, Englebienne and Nocetti (collectively, the"Founders"), Kajur International S.A. ("Kajur"), Mifery S.A. ("Mifery"), Gudmy S.A. ("Gudmy"), Noltur S.A. ("Noltur"), Etmyl S.A. ("Etmyl"), Ewerzy S.A.("Ewerzy"), Fudmy Corporation S.A. ("Fudmy"), Gylcer International S.A. (together with Kajur, Mifery, Gudmy, Noltur, Etmyl, Ewerzy and Fudmy, the"Uruguayan Entities"), Paldwick S.A., Riverwood Capital LLC, Riverwood Capital Partners (Parallel-B) L.P., Riverwood Capital Partners L.P. and RiverwoodCapital Partners (Parallel-A) (collectively, the "Riverwood Entities") and the FTV Partnerships and WPP (collectively, the "Registration Rights Holders") andEndeavor Global, Inc. and Endeavor Catalyst Inc. The registration rights agreement replaced the registration rights granted under the Shareholders Agreementand WPP's joinder agreement. Under the registration rights agreement, we are responsible, subject to certain exceptions, for the expenses of any offering ofour common shares held by the Registration Rights Holders other than underwriting fees, discounts and selling commissions. Additionally, under theregistration rights agreement we may not grant superior registration rights to any other person without the consent of the Registration Rights Holders. Theregistration rights agreement contains customary indemnification provisions. Demand Registration Rights Under the registration rights agreement each of (i) the Riverwood Entities (acting as a group), (ii) the FTV Partnerships (acting as a group), (iii) WPPand (iv) the Founders and the Uruguayan Entities (acting as a group) and any two of (i) the Riverwood Entities, (ii) the FTV Partnerships, (iii) WPP and (iv)the Founders and the Uruguayan Entities (acting as a group) may require us to effect a registration under the Securities Act for the sale of their common sharesof our company. We are therefore obliged to effect up to five such demand registrations in total with respect to the common shares owned by suchshareholders. However, we are not obliged to effect any such registration when (1) the request for registration does not cover that number of common shareswith an anticipated gross offering price of at least $10.0 million, or (2) the amount of common shares to be sold in such registration represents more than 15%of our share capital. If we have been advised by legal counsel that such registration would require a special audit or the disclosure of a material impendingtransaction or other matter and our board of directors determines reasonably and in good faith that such disclosure would have a material adverse effect on us,we have the right to defer such registration, not more than once in any 12-month period, for a period of up to 90 days. We will not be required to effect ademand registration if we intend to effect a primary registration of our securities within 60 days of receiving notice of a demand registration, provided that wefile such intended registration statement within the 60-day period. Additionally, we will not be required to effect a demand registration during the periodbeginning with the date of filing of, and ending 120 days following the completion of, a primary registered offering of our securities, except if any of theRegistration Rights Holders had requested “piggyback” registration rights in connection with such offering. In any such demand registration, the managingunderwriter will be selected by the majority of the shareholders exercising the demand. In February 2015, we received a demand request from the Riverwood Entities and the FTV Partnerships. In April 2015 we closed a secondary publicoffering of our common shares through which they and certain selling shareholders sold 3,994,390 common shares. Subsequently, in June 2015, we receiveda second demand request from Riverwood Entities. In July 2015, we closed the second secondary public offering of our common shares through which theyand certain other selling shareholders sold 4,025,000 common shares. In May 2018, we received a demand request from WPP and, in June 2018, we closed a secondary public offering through which WPP sold 6,687,548common shares. Shelf Registration Rights We will use commercially reasonable efforts to remain qualified to register securities pursuant to Form F-3, and each Registration Rights Holder maymake one written request that we register the offer and sale of their common shares on a shelf registration statement on Form F-3 if we are eligible to file aregistration statement on Form F-3 so long as the request covers at least that number of common shares with an anticipated aggregate offering sale of at least$5,000,000. 137 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Piggyback Registration Rights If we propose to register for sale to the public any of our securities, in connection with the public offering of such securities, the Registration RightsHolders will be entitled to certain “piggyback” registration rights in connection with such public offering, allowing them to include their common shares insuch registration, subject to certain limitations. As a result, whenever we propose to file a registration statement under the Securities Act, other than withrespect to (1) a registration related to a company equity incentive plan and (2) a registration related to the exchange of securities in certain corporatereorganizations or certain other transactions or in other instances where a form is not available for registering securities for sale to the public, the RegistrationRights Holders will be entitled to written notice of the registration and will have the right, subject to limitations that the underwriters may impose on thenumber of common shares included in the registration, to include their common shares in the registration. Termination As to each party to the Registration Rights Agreement, the rights of such party thereunder terminate upon the earlier to occur of the fifth anniversaryof the date of the agreement or the date upon which the percentage of our total outstanding common shares held by such party ceases to be at least onepercent. Tag-Along Agreement On July 23, 2014, the Founders, the Uruguayan Entities, Paldwick S.A., the Riverwood Entities, the FTV Partnerships, Endeavor Global, Inc. andEndeavor Catalyst Inc. (collectively, the “Selling Shareholders”) entered into a tag-along agreement. Under the Tag-Along Agreement, if, during the fouryears immediately following the date our registration statement filed with the SEC was declared effective, any of the Selling Shareholders proposes to make atransfer of our shares to any other Selling Shareholder or WPP, each of (i) the Founders and the Uruguayan Entities (individually and/or acting as a group, (ii)the RW Entities (individually and/or acting as a group), (iii) the FTV Partnerships (individually and/or acting as a group), and (v) Endeavor, shall have theright to participate in such sale with respect to any shares held by them on a pro rata basis, and on the same terms and conditions and the same totalconsideration, as those offered to the corresponding Selling Shareholder in the applicable transfer. Other Related-Party Transactions For a summary of our revenue and expenses and receivables and payables with related parties, please see note 22 to our audited consolidatedfinancial statements. Procedures for Related Party Transactions On July 23, 2014, we adopted a written code of business conduct and ethics for our company, which is publicly available on our website atwww.globant.com. Under our code of business conduct and ethics, our employees, officers and directors are discouraged from entering into any transactionthat may cause a conflict of interest for us. In addition, they must report any potential conflict of interest, including related party transactions, to theirmanagers or our corporate counsel who then will review and summarize the proposed transaction for our audit committee. Pursuant to its charter, our auditcommittee is required to then approve any related-party transactions, including those transactions involving our directors. In approving or rejecting suchproposed transactions, the audit committee is required to consider the relevant facts and circumstances available and deemed relevant to the audit committee,including the material terms of the transactions, risks, benefits, costs, availability of other comparable services or products and, if applicable, the impact on adirector’s independence. Our audit committee will approve only those transactions that, in light of known circumstances, are in, or are not inconsistent with,our best interests, as our audit committee determines in the good faith exercise of its discretion. 138 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. On November 5, 2015, we adopted a related party transactions policy. This policy indicates, based on certain specific parameters, which transactionsshould be submitted for approval by either our Audit Committee or our general counsel. C. Interests of Experts and Counsel Not applicable. ITEM 8. FINANCIAL INFORMATION A. Consolidated statements and other financial information. We have included the Consolidated Financial Statements as part of this annual report. See Item 18, "Financial Statements." Legal Proceedings We may be involved in litigation in the normal course of our business, both as a defendant and as a plaintiff. In the ordinary course of our business,we are subject to certain contingent liabilities with respect a variety of potential claims, lawsuits and other proceedings, including claims related to patentinfringement, purported class actions, tax and labor lawsuits and other claims. In particular, in the software and technology industries, other companies ownlarge numbers of patents, copyrights, trademarks and trade secrets and frequently engage in litigation based on allegations of infringement or other violationsof intellectual property rights. We have received and may continue to receive assertions and claims that our services infringe on these patents or otherintellectual property rights. See “Risk Factors — Risks Related to Our Business and Industry — If we incur any liability for a violation of the intellectualproperty rights of others, our reputation, business, financial condition and prospects may be adversely affected.” In such cases litigation may be necessary todetermine the scope, enforceability and validity of third-party proprietary rights or to establish our proprietary rights. However, given that litigation could becostly and time-consuming and could divert the attention of management and key personnel from our business operations, we may elect to settle these claimsfrom time to time. We accrue liabilities when it is probable that future costs will be incurred and such cost can be reasonably estimated. On February 10, 2012, FAECYS filed a lawsuit against our Argentine subsidiary, Sistemas Globales S.A., in which FAECYS demanded theapplication of its collective labor agreement to the employees of that subsidiary. According to FAECYS's claim, Sistemas Globales should have withheld andtransferred to FAECYS an amount of 0.5% of the gross monthly salaries of Sistemas Globales' employees. On April 16, 2018, the lower court dismissed the complaint filed by FAECYS, and such decision was subsequently confirmed by the court ofappeals. The judgment is now final and is not subject to further appeals. Certain of our non- U.S. subsidiaries are currently under examination by the Internal Revenue Service ("IRS") regarding payroll and employmenttaxes primarily in connection with services performed by employees of certain of our subsidiaries in the United States from 2013 to 2015. On May 1, 2018,the IRS issued 30-day letters to those subsidiaries proposing total assessments of $1.4 million plus penalties and interest for employment taxes for thoseyears. Our subsidiaries filed protests of these proposed assessments with the IRS which have been sent to the Office of Appeals within the IRS for furtherexamination. At this stage, the management cannot make any predictions about the final outcome of this matter or the timing thereof. In addition to the foregoing, as of December 31, 2018, we are a party to certain other legal proceedings, including tax and labor claims, where therisk of loss is considered possible. In the opinion of our management, the ultimate disposition of such threatened and/or pending matters, either individuallyor on a combined basis, is not likely to have a material effect on our financial condition, liquidity or results of operations. 139 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Dividend Policy We currently anticipate that we will retain all available funds for use in the operation and expansion of our business, and do not anticipate payingany dividends in the foreseeable future. Under Luxembourg law, at least 5% of our net income per year must be allocated to the creation of a legal reserve until such reserve has reached anamount equal to 10% of our issued share capital. If the legal reserve subsequently falls below the 10% threshold, 5% of net income again must be allocatedtoward the reserve until such reserve returns to the 10% threshold. If the legal reserve exceeds 10% of our issued share capital, the legal reserve may bereduced. The legal reserve is not available for distribution. We are a holding company and have no material assets other than direct and indirect ownership of our operating and non-operating subsidiaries. Ifwe were to distribute a dividend at some point in the future, we would cause the operating subsidiaries to make distributions in an amount sufficient to coverany such dividends. B. Significant Changes Acquisition of Avanxo On January 17, 2019, we entered into a Share Purchase Agreement (the “Purchase Agreement”) with the shareholders of Avanxo (Bermuda) Limited(“Avanxo”), pursuant to which we agreed to purchase all of Avanxo’s share capital (the "Acquisition") subject to the terms and conditions set forth in thePurchase Agreement. Avanxo is a cloud consulting and implementation company headquartered in Bermuda, with operations in Brazil, Mexico, Colombia,Peru, Argentina and the United States. The transaction closed in February 1, 2019. Under the terms of the Purchase Agreement, the total consideration payable by us to Avanxo’s shareholders, assuming a debt-free and cash-freebalance sheet, is $48.6 million (the "Purchase Price") subject to a working capital adjustment, reduction for uncollected accounts receivables and the amountsof the Earn-Out Payments (as defined below) that become due and payable. Of the Purchase Price, we paid $40.9 million on the closing of the Acquisition, of which $40.1 million was paid in cash and $0.8 million in Globantcommon shares. The remaining amount of the Purchase Price, $7.6 million, will be payable in two installments, at the end of each of the years ending December 31,2019 and 2020, and is subject to upwards or downwards adjustment based on Avanxo’s achievement of specified revenue, gross margin and operating margintargets for each of the years ending December 31, 2019 and 2020 (the “Earn Out Payments”). At our sole option, we will be entitled to pay up to 25% of each Earn Out Payment through the issuance and delivery of our common shares. Thenumber of our common shares that may be issued and delivered to Avanxo´s selling shareholders will be determined based on the volume weighted averagetrading price for the 60 calendar day period prior to the payment date of the relevant Earn Our Payment. Common shares issued pursuant to the exercise by usof this option will be subject to a 12-month lock-up period. These common shares are expected to be issued in reliance on the exemption from registrationprovided by Regulation S under the Securities Act of 1933, as amended. Convertible Loan Agreement with Wolox On January 4, 2019 ("Issuance Date"), we entered into a convertible note purchase agreement with Wolox, LLC for an aggregate principal amount of$1.8 million (the "Principal Amount"). Interest on the Principal Amount is computed at an annual rate equal to Libor plus 2%. The Principal Amount will bedue and payable to us in a term of 18 month from the Issuance Date, at which time we will hold an option to convert any portion of the outstanding PrincipalAmount into fully paid and nonassessable membership interest of Wolox, LLC. 140 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. ITEM 9. THE OFFER AND LISTING. A. Offering and listing details. Our ordinary shares began trading on the NYSE under the symbol "GLOB" in connection with our IPO on July 18, 2014. Our ordinary shares began trading on the Lux SE under the International Securities Identification Number (ISIN) code "LU0974299876" on August11, 2016. B. Plan of Distribution Not applicable. C. Markets Our ordinary shares began trading on (i) the NYSE under the symbol "GLOB" in connection with our IPO on July 18, 2014, and (ii) on the Lux SEunder the ISIN code "LU0974299876"on August 11, 2016. See "The Offer and Listing - Offering and Listing Details." D. Selling Shareholders Not applicable. E. Dilution Not applicable. F. Expenses of the Issue Not applicable. ITEM 10. ADDITIONAL INFORMATION. A. Share capital Not applicable. B. Memorandum and Articles of Association The following is a summary of some of the terms of our common shares, based on our articles of association. The following summary is not complete and is subject to, and is qualified in its entirety by reference to, the provisions of our articles of association,as amended, which were included as an exhibit to our report on Form 6-K filed with the SEC on June 1, 2016, and applicable Luxembourg law, includingLuxembourg Corporate Law. General We are a Luxembourg joint stock company (société anonyme) and our legal name is "Globant S.A." We were incorporated on December 10, 2012.We are registered with the Luxembourg Trade and Companies Register (Registre de Commerce et des Sociétés de Luxembourg) under number B 173 727 andhave our registered office at 37A Avenue J.F. Kennedy, L-1855, Luxembourg, Grand Duchy of Luxembourg. 141 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Share Capital As of December 31, 2018, our issued share capital was $43,324,576.80, represented by 36,103,814 common shares with a nominal value of $1.20each, of which 138,152 were treasury shares held by us. We had an authorized share capital, excluding the issued share capital, of $7,555,227.60 consisting of 6,296,023 common shares with a nominalvalue of $1.20 each. Our shareholders' meeting has authorized our board of directors to issue common shares within the limits of the authorized share capital at such timeand on such terms as our board of directors may decide during a period ending on the fifth anniversary of the date of publication in Recueil Electronique desSociétés et Associations ("RESA") of the minutes of the extraordinary general meeting of shareholders held on May 8, 2017, which publication occurred onMay 19, 2017, and which period ends on May 19, 2022 and may be renewed. Accordingly, our board of directors may issue up to 6,296,023 common sharesuntil such date. We currently intend to seek renewals and/or extensions as required from time to time. Our authorized share capital is determined by our articles of association, as amended from time to time, and may be increased or reduced byamending the articles of association by approval of the requisite two-thirds majority of the votes at a quorate extraordinary general shareholders' meeting.Under Luxembourg law, our shareholders have no obligation to provide further capital to us. Under Luxembourg law, our shareholders benefit from a pre-emptive subscription right on the issuance of common shares for cash consideration.However, our shareholders have, in accordance with Luxembourg law authorized our board of directors to waive, suppress or limit, any pre-emptivesubscription rights of shareholders provided by law to the extent our board of directors deems such waiver, suppression or limitation advisable for any issueor issues of common shares within the scope of our authorized share capital. Such common shares may be issued above, at or below market value as well asabove, at or below nominal value by way of incorporation of available reserves (including premium). Form and Transfer of Common Shares Our common shares are issued in registered form only and are freely transferable under Luxembourg law and our articles of association. Luxembourglaw does not impose any limitations on the rights of Luxembourg or non-Luxembourg residents to hold or vote our common shares. Under Luxembourg law, the ownership of registered shares is established by the inscription of the name of the shareholder and the number of sharesheld by him or her in the shareholder register. Transfers of common shares not deposited into securities accounts are effective towards us and third partieseither through the recording of a declaration of transfer into the shareholders' register, signed and dated by the transferor and the transferee or theirrepresentatives or by us, upon notification of the transfer to, or upon the acceptance of the transfer by, us. Should the transfer of common shares not berecorded accordingly, the shareholder is entitled to enforce his or her rights by initiating the relevant proceedings before the competent courts ofLuxembourg. In addition, our articles of association provide that our common shares may be held through a securities settlement system or a professionaldepositary of securities. The depositor of common shares held in such manner has the same rights and obligations as if such depositor held the commonshares directly. Common shares held through a securities settlement system or a professional depositary of securities may be transferred from one account toanother in accordance with customary procedures for the transfer of securities in book-entry form. However, we will make dividend payments (if any) and anyother payments in cash, common shares or other securities (if any) only to the securities settlement system or the depositary recorded in the shareholders’register or in accordance with its instructions. Issuance of Common Shares Pursuant to Luxembourg Corporate Law, the issuance of common shares requires the amendment of our articles of association by the approval oftwo-thirds of the votes at a quorate extraordinary general shareholders' meeting; provided. however, that the general meeting may approve an authorizedshare capital and authorize our board of directors to issue common shares up to the maximum amount of such authorized unissued share capital for a five yearperiod beginning either on the date of the relevant general meeting or the date of publication in the RESA of the minutes of the relevant general meetingapproving such authorization. The general meeting may amend or renew such authorized share capital and such authorization of our board of directors toissue common shares. 142 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. As of December 31, 2018 we had an authorized share capital, excluding the issued share capital, of $7,555,227.60 and our board of directors wasauthorized to issue up to 6,296,023 common shares (subject to stock splits, consolidation of common shares or like transactions) with a nominal value of$1.20 per common share. Our articles of association provide that no fractional shares shall be issued or exist. Pre-emptive Rights Unless limited, waived or cancelled by our board of directors in the context of the authorized share capital or pursuant to a decision of anextraordinary general meeting of shareholders pursuant to the provisions of the articles of association relating to amendments thereof, holders of our commonshares have a pro rata pre-emptive right to subscribe for any new common shares issued for cash consideration. Our articles of association provide that pre-emptive rights can be waived, suppressed or limited by our board of directors for a period ending on the fifth anniversary of the date of publication in theRESA of the minutes of the extraordinary general meeting of shareholders held on May 8, 2017, which publication occurred on May 19, 2017 and whichperiod ends on May 19, 2022, in the event of an increase of the issued share capital by our board of directors within the limits of the authorized share capital. Repurchase of Common Shares We cannot subscribe for our own common shares. We may, however, repurchase issued common shares or have another person repurchase issuedcommon shares for our account, subject to the following conditions: •the repurchase complies with the principle of equal treatment of all shareholders, except in the event such repurchase was the result of theunanimous decision of a general meeting at which all shareholders were present or represented (in addition, listed companies may repurchasetheir own shares on the stock exchange without an offer to repurchase having to be made to the shareholders); •prior authorization by a simple majority vote at an ordinary general meeting of shareholders is granted, which authorization sets forth the termsand conditions of the proposed repurchase, including the maximum number of common shares to be repurchased, the duration of the period forwhich the authorization is given (which may not exceed five years) and, in the case of a repurchase for consideration, the minimum andmaximum consideration per common share; •the repurchase does not reduce our net assets (on a non-consolidated basis) to a level below the aggregate of the issued share capital and thereserves that we must maintain pursuant to Luxembourg law or our articles of association; and •only fully paid-up common shares are repurchased. No prior authorization by our shareholders is required for us to repurchase our own common shares if: •we are in imminent and severe danger, in which case our board of directors must inform the general meeting of shareholders held subsequent tothe repurchase of common shares of the reasons for, and aim of such repurchase, the number and nominal value of the common sharesrepurchased, the fraction of the share capital such repurchased common shares represented and the consideration paid for such shares; or •the common shares are repurchased by us or by a person acting for our account in view of a distribution of the common shares to our employees. 143 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. On June 18, 2014, the general meeting of shareholders according to the conditions set forth in article 49-2 of Luxembourg Corporate Law grantedour board of directors the authorization to repurchase up to a maximum number of shares representing 20% of the issued share capital immediately after theclosing of our initial public offering for a net purchase price being (i) no less than 50% of the lowest stock price and (ii) no more than 50% above the higheststock price, in each case being the closing price, as reported by the New York City edition of the Wall Street Journal, or, if not reported therein, any otherauthoritative sources to be selected by our board of directors, over the ten trading days preceding the date of the purchase (or the date of the commitment tothe transaction). The authorization is valid for a period ending five years from the date of the general meeting or the date of its renewal by a subsequentgeneral meeting of shareholders. Pursuant to such authorization, our board of directors is authorized to acquire and sell our common shares under theconditions set forth in the minutes of such general meeting of shareholders. Such purchases and sales may be carried out for any purpose authorized by thegeneral meeting of Globant S.A. Capital Reduction Our articles of association provide that our issued share capital may be reduced by a resolution adopted by a two-thirds majority of the votes at aquorate extraordinary general shareholders' meeting. If the reduction of capital results in the capital being reduced below the legally prescribed minimum, thegeneral meeting of the shareholders must, at the same time, resolve to increase the capital up to the required level. General Meeting of Shareholders Any regularly constituted general meeting of our shareholders represents the entire body of shareholders. Each of our common shares entitles the holder thereof to attend our general meeting of shareholders, either in person or by proxy, to address thegeneral meeting of shareholders and to exercise voting rights, subject to the provisions of Luxembourg law and our articles of association. Each commonshare entitles the holder to one vote at a general meeting of shareholders. Our articles of association provide that our board of directors shall adopt as it deemsfit all other regulations and rules concerning the attendance to the general meeting. A general meeting of our shareholders may, at any time, be convened by our board of directors, to be held at such place and on such date as specifiedin the convening notice of such meeting. Our articles of association and Luxembourg law provide that a general meeting of shareholders must be convenedby our board of directors, upon request in writing indicating the agenda, addressed to our board of directors by one or more shareholders representing at least10% of our issued share capital. In such case, a general meeting of shareholders must be convened and must be held within a period of one month from receiptof such request. One or more shareholders holding at least 5% of our issued share capital may request the addition of one or more items to the agenda of anygeneral meeting of shareholders and propose resolutions. Such requests must be received at our registered office by registered mail at least 22 days before thedate of such meeting. Our articles of association provide that if our common shares are listed on a stock exchange, all shareholders recorded in any register of ourshareholders are entitled to be admitted and vote at the general meeting of shareholders based on the number of shares they hold on a date and time precedingthe general meeting of shareholders as the record date for admission to the general meeting of shareholders (the "Record Date"), which the board of directorsmay determine as specified in the convening notice, subject to the law of May 24, 2011 on the exercise of certain rights of shareholders of listed companies(the “Shareholder Rights Law”). Furthermore, any shareholder, holder or depositary, as the case may be, who wishes to attend the general meeting mustinform us thereof no later than on the fourteenth day preceding the date of such general meeting, or by any other date which the board of directors maydetermine and as specified in the convening notice, in a manner to be determined by our board of directors in the notice convening the general meeting of theshareholders. In the case of common shares held through the operator of a securities settlement system or with a depositary, or sub-depositary designated bysuch depositary, a shareholder wishing to attend a general meeting of shareholders should receive from such operator or depositary a certificate certifying thenumber of common shares recorded in the relevant account on the Record Date. The certificate should be submitted to us at our registered office no later thanthree business days prior to the date of such general meeting. In the event that the shareholder votes by means of a proxy, the proxy must be deposited at ourregistered office at the same time or with any of our agents, duly authorized to receive such proxies. Our board of directors may set a shorter period for thesubmission of the certificate or the proxy in which case this will be specified in the convening notice. 144 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. The convening of, and attendance to, our general meetings is subject to the provisions of the Shareholders Rights Law. General meetings of shareholders shall be convened in accordance with the provisions of our articles of association and Luxembourg corporate law,the Shareholders Rights Law and the requirement of any stock exchange on which our shares are listed. The Shareholders Rights Law provides -inter alia-that convening notices for any general meeting shall contain the agenda of the meeting and shall take the form of announcements published in the RESA, ina Luxembourg newspaper and in the media, in a manner which ensures effective dissemination of information to the public throughout the EuropeanEconomic Area ("EEA") and which ensures a prompt access to such information on a non-discriminatory basis. Notices by mail shall also be sent at least 30days before the meeting to registered shareholders, provided that no proof of compliance with this requirement is necessary. Where all the common shares arein registered form, the convening notices may be made only by registered letters. In the event (i) an extraordinary general meeting of shareholders is convened to vote on an extraordinary resolution (See below under "VotingRights" for additional information), (ii) such meeting is not quorate and (iii) a second meeting is convened, the second meeting will be convened by means ofannouncements published in the RESA, in a Luxembourg newspaper and in the media, in a manner which ensures effective dissemination of information tothe public throughout the EEA and which ensures prompt access to such information on a non-discriminatory basis, at least 17 days prior to the meeting if theagenda has not been modified or at least 30 days if the agenda has been modified. Pursuant to our articles of association, if all shareholders are present or represented at a general meeting of shareholders and state that they have beeninformed of the agenda of the meeting, the general meeting of shareholders may be held without prior notice. Our annual general meeting is held on the date set forth in the corresponding convening notice within six months of the end of each financial year atour registered office or such other place as specified in such convening notice. Voting Rights Each share entitles the holder thereof to one vote at a general meeting of shareholders. Luxembourg law distinguishes between ordinary resolutions and extraordinary resolutions. Extraordinary resolutions relate to proposed amendments to the articles of association and certain other limited matters. All other resolutions areordinary resolutions. Ordinary Resolutions. Pursuant to our articles of association and the Luxembourg Corporate Law, ordinary resolutions shall be adopted by a simplemajority of votes validly cast on such resolution at a general meeting. Abstentions and nil votes will not be taken into account. Extraordinary Resolutions. Extraordinary resolutions are required for any of the following matters, among others: (a) an increase or decrease of theauthorized share capital or issued share capital, (b) a limitation or exclusion of preemptive rights, (c) approval of a merger (fusion) or de-merger (scission),(d) dissolution, (e) an amendment to our articles of association and (f) a change of nationality. Pursuant to Luxembourg law and our articles of association, forany extraordinary resolutions to be considered at a general meeting, the quorum must generally be at least 50% of our issued share capital. Any extraordinaryresolution shall generally be adopted at a quorate general meeting upon a two-thirds majority of the votes validly cast on such resolution. In case suchquorum is not reached, a second meeting may be convened by our board of directors in which no quorum is required, and which must generally still approvethe amendment with two-thirds of the votes validly cast. Abstentions and nil votes will not be taken into account. 145 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Appointment and Removal of Directors. Members of our board of directors are elected by ordinary resolution at a general meeting of shareholders.Under our articles of association, all directors are elected for a period of up to four years, provided, however, that our directors shall be elected on a staggeredbasis. Any director may be removed with or without cause and with or without prior notice by a simple majority vote at any general meeting of shareholders.The articles of association provide that, in case of a vacancy, our board of directors may fill such vacancy on a temporary basis by a person designated by theremaining members of our board of directors until the next general meeting of shareholders, which will resolve on a permanent appointment. The directorsshall be eligible for re-election indefinitely. Neither Luxembourg law nor our articles of association contain any restrictions as to the voting of our common shares by non-Luxembourgresidents. Amendment to Articles of Association Shareholder Approval Requirements. Luxembourg law requires that an amendment to our articles of association generally be made by extraordinaryresolution. The agenda of the general meeting of shareholders must indicate the proposed amendments to the articles of association. Pursuant to Luxembourg Corporate Law and our articles of association, for an extraordinary resolution to be considered at a general meeting, thequorum must generally be at least 50% of our issued share capital. Any extraordinary resolution shall be adopted at a quorate general meeting (save asotherwise required by law) upon a two-thirds majority of the votes validly cast on such resolution. If the quorum of 50% is not reached at this meeting, asecond general meeting may be convened, in which no quorum is required, and may approve the resolution at a majority of two-third of votes validly cast. Formalities. Any resolutions to amend the articles of association or to approve a merger, de-merger, change of nationality, dissolution or change ofnationality must be taken before a Luxembourg notary and such amendments must be published in accordance with Luxembourg law. Merger and Division A merger by absorption whereby one Luxembourg company, after its dissolution without liquidation, transfers to another company all of its assetsand liabilities in exchange for the issuance of common shares in the acquiring company to the shareholders of the company being acquired, or a mergereffected by transfer of assets to a newly incorporated company, must, in principle, be approved at a general meeting of shareholders by an extraordinaryresolution of the Luxembourg company, and the general meeting of shareholders must be held before a Luxembourg notary. Further conditions andformalities under Luxembourg law are to be complied with in this respect. Liquidation In the event of our liquidation, dissolution or winding-up, the assets remaining after allowing for the payment of all liabilities will be paid out to theshareholders pro rata according to their respective shareholdings. Generally, the decisions to liquidate, dissolve or wind-up require the passing of anextraordinary resolution at a general meeting of our shareholders, and such meeting must be held before a Luxembourg notary. Mandatory Takeover, Squeeze-Out and Sell-Out Rights under the Luxembourg Takeover Law Mandatory bid. The Luxembourg law of May 19, 2006 implementing Directive 2004/25/EC of the European Parliament and the Council of April21, 2004 on takeover bids (the "Takeover Law"), provides that, if a person acting alone or in concert acquires securities of our Company which, when addedto any existing holdings of our securities, give such person voting rights representing at least one-third of all of the voting rights attached to the issued sharesof our Company, this person is required to make an offer for the remaining shares of our Company. In a mandatory bid situation, a "fair price" is in principleconsidered to be the highest price paid by the offeror or a person acting in concert with the offeror for the securities during the 12-month period preceding themandatory bid. 146 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Squeeze-out right. The Takeover Law provides that, when an offer (mandatory or voluntary) is made to all of the holders of voting securities of ourCompany and after such offer the offeror holds at least 95% of the securities carrying voting rights and 95% of the voting rights, the offeror may require theholders of the remaining securities to sell those securities (of the same class) to the offeror. The price offered for such securities must be a fair price. The priceoffered in a voluntary offer would be considered a fair price in the squeeze-out proceedings if the offeror acquired at least 90% of our shares carrying votingrights that were the subject of the offer. The price paid in a mandatory offer is deemed a fair price. The consideration paid in the squeeze-out proceedingsmust take the same form as the consideration offered in the offer or consist solely of cash. Moreover, an all-cash option must be offered to the remainingshareholders. Finally, the right to initiate squeeze-out proceedings must be exercised within three months following the expiration of the offer. Sell-out right. The Takeover Law provides that, when an offer (mandatory or voluntary) is made to all of the holders of voting securities and if aftersuch offer the offeror holds securities carrying more than 90% of the voting rights, the remaining security holders may require that the offeror purchase theremaining securities of the same class. The price offered in a voluntary offer would be considered "fair" in the sell-out proceedings if the offeror acquired atleast 90% of our shares carrying voting rights and which were the subject of the offer. The price paid in a mandatory offer is deemed a fair price. Theconsideration paid in the sell-out proceedings must take the same form as the consideration offered in the offer or consist solely of cash. Moreover, an all-cashoption must be offered to our remaining shareholders. Finally, the right to initiate sell-out proceedings must be exercised within three months following theexpiration of the offer. We also fall under the scope of the Luxembourg law of July 21, 2012 on the squeeze-out and sell-out of securities of companies admitted or havingbeen admitted to trading on a regulated market or which have been subject to a public offer (the "Luxembourg Mandatory Squeeze-Out and Sell-Out Law").The Luxembourg Mandatory Squeeze-Out and Sell-Out Law provides that, subject to the conditions set forth therein being met, if any individual or legalentity, acting alone or in concert with another, holds a number of shares or other voting securities representing at least 95% of our voting share capital and95% of our voting rights: (i) such holder may require the holders of the remaining shares or other voting securities to sell those remaining securities (the"Mandatory Squeeze-Out"); and (ii) the holders of the remaining shares or securities may require such holder to purchase those remaining shares or othervoting securities (the "Mandatory Sell-Out"). The Mandatory Squeeze-Out and the Mandatory Sell-Out must be exercised at a fair price according toobjective and adequate methods applying to asset disposals. The procedures applicable to the Mandatory Squeeze-Out and the Mandatory Sell-Out aresubject to further conditions and must be carried out under the supervision of the Commission de Surveillance du Secteur Financier (the "CSSF"). Disclosure of transactions by persons discharging managerial responsibilities. Pursuant to Regulation (EU) No 596/2014 of the EuropeanParliament and of the Council of April 16, 2014 on market abuse and related regulations (collectively referred to as the "Market Abuse Regulation"), personsdischarging managerial responsibilities as well as persons closely associated with them, must notify the CSSF and us of every transaction conducted on theirown account (a concept that must be interpreted within the meaning of the Market Abuse Regulation) relating to our common shares or to derivatives or otherfinancial instruments, the value of which depends on or has an effect on the price or value of our common shares. The obligation applies to any subsequenttransaction once a total amount of EUR 5,000 has been reached within a calendar year, calculated by adding without netting all relevant transactions relatingto the securities. The notification must be made promptly and no later than three business days after the date of the transaction. We must ensure that anyinformation related to relevant transactions which we receive is made public promptly and no later than three business days after the transaction, in themanner reserved for regulated information (See "Publication of regulated information"). For the purpose of the Market Abuse Regulation, a "person discharging managerial responsibilities" means a person who is (a) a member of theadministrative, management or supervisory body of that entity; or (b) a senior executive who is not a member of the bodies referred to in clause (a), who hasregular access to inside information relating directly or indirectly to that entity and power to take managerial decisions affecting the future developments andbusiness prospects of that entity. "Persons discharging senior managerial responsibilities" within our Company are the members of our board of directors and the members of oursenior management identified in this annual report. 147 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Publication of regulated information. Pursuant to directive 2004/109/EC of the European Parliament and of the Council of December 15, 2004 onthe harmonization of transparency requirements in relation to information about issuers whose securities are admitted on trading on a regulated market (the"Transparency Directive"), issuers that fall within the scope of that directive are required to provide ongoing and periodic information which the directivedefines as "regulated information". As regards that regulated information, the Transparency Directive imposes three obligations on issuers: •publish the regulated information; •make this information available to an Officially Appointed Mechanism ("OAM") for the central storage of regulated information; and •file the regulated information with the competent authority of the relevant home Member State within the EEA. In accordance with article 20 of the Luxembourg law of January 11, 2008 implementing the Transparency Directive (the "Luxembourg TransparencyLaw"), issuers are required to disclose regulated information in a manner ensuring fast access to such information on a non-discriminatory basis. Thus, theyshall use such media as may reasonably be relied upon for the effective dissemination of information to the public in all EEA Member States. We are required to file the aforementioned information with the CSSF and to make this information available to the OAM in Luxembourg. All news and press releases issued by us are available on our website at www.globant.com in the "Investors" section. No Appraisal Rights Neither Luxembourg law nor our articles of association provide for any appraisal rights of dissenting shareholders. Distributions Subject to Luxembourg law, if and when a dividend is declared by the general meeting of shareholders or an interim dividend is declared by ourboard of directors, each common share is entitled to participate equally in such distribution of funds legally available for such purposes. Pursuant to ourarticles of association, our board of directors may pay interim dividends, subject to Luxembourg law. Declared and unpaid distributions held by us for the account of the shareholders shall not bear interest. Under Luxembourg law, claims for unpaiddistributions will lapse in our favor five years after the date such distribution became due and payable. Any amount payable with respect to dividends and other distributions declared and payable may be freely transferred out of Luxembourg, exceptthat any specific transfer may be prohibited or limited by anti-money laundering regulations, freezing orders or similar restrictive measures. Annual Accounts Under Luxembourg law, our board of directors must prepare annual accounts and consolidated accounts. Except for certain cases as provided for byLuxembourg law, our board of directors must also annually prepare management reports on the annual accounts and consolidated accounts. The annualaccounts, the consolidated accounts, management reports and auditor's reports must be available for inspection by shareholders at our registered office and onour website for an uninterrupted period beginning at least 30 calendar days prior to the date of the annual ordinary general meeting of shareholders. The annual accounts and consolidated accounts are audited by an approved statutory auditor (réviseur d'entreprises agréé). The annual accounts and the consolidated accounts, will be filed with the Luxembourg Trade and Companies Register (Registre de Commerce et desSociétés of Luxembourg) and disseminated as regulated information. 148 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Information Rights Luxembourg law gives shareholders limited rights to inspect certain corporate records prior to the date of the annual ordinary general meeting ofshareholders, including the annual accounts with the list of directors and auditors, the consolidated accounts, the notes to the annual accounts and theconsolidated accounts, a list of shareholders whose common shares are not fully paid up, the management reports, the auditor's report and, in case ofamendments to the articles of association, the text of the proposed amendments and the draft of the resulting consolidated articles of association. In addition, any registered shareholder is entitled to receive, upon request, a copy of the annual accounts, the consolidated accounts, the auditor'sreports and the management reports free of charge prior to the date of the annual ordinary general meeting of shareholders. Under the Shareholder Rights Law, every shareholder has the right to ask questions related to items on the agenda of the general meeting. We shallanswer the questions put to us by shareholders, subject to the measures which we may take to ensure the identification of shareholders, the good order ofgeneral meetings and their preparation, and the protection of confidentiality and our business interests. We may provide one overall answer to questionshaving the same content. Where the relevant information is available on its Internet site in a question and answer format, we shall be deemed to haveanswered to the questions asked by referring to our site. Disclosure of Significant Ownership of Our Common Shares Holders of common shares, including depositary receipts representing common shares admitted to trading on a regulated market and for whichLuxembourg is the home Member State within the meaning of the Luxembourg Transparency Law and to which voting rights are attached (the "Securities")and derivatives or other financial instruments linked to the Securities may be subject to notification obligations pursuant to the Luxembourg TransparencyLaw and the Grand ducal regulation of January 11, 2008 on transparency requirements for issuers, as amended. The following description summarizes theseobligations. Our shareholders are advised to consult with their own legal advisers to determine whether the notification obligations apply to them. The Luxembourg Transparency Law provides that, subject to limited exceptions, if a person acquires or disposes of our Securities, and followingsuch acquisition or disposal, the proportion of voting rights held by such person reaches, exceeds or falls below one of the thresholds of 5%, 10%, 15%, 20%,25%, 33 1/3%, 50% or 66 2/3% (each a "Relevant Threshold") of our total voting rights existing when the situation giving rise to a declaration occurs, suchperson must simultaneously notify us and the CSSF of proportion of voting rights held by it after to such event. The voting rights shall be calculated on thebasis of all of the common shares, including depositary receipts representing common shares, to which voting rights are attached even if the exercise thereofis suspended. Moreover, this information shall be given in respect of all of the common shares, including depositary receipts representing common shares,which are in the same class and to which voting rights are attached. A person must also notify us and the CSSF of the proportion of his or her voting rights ifthat proportion reaches, exceeds or falls below any Relevant Threshold as a result of events changing the breakdown of voting rights and on the basis of theinformation disclosed by us. The same notification requirements apply to a natural person or legal entity to the extent such person or entity is entitled to acquire, dispose of, orexercise voting rights in any of the following cases or a combination of them: a.voting rights held by a third party with whom that person or entity has concluded an agreement, which obliges them to adopt, by concerted exerciseof the voting rights they hold, a lasting common policy towards the management of the issuer;b.voting rights held by a third party under an agreement concluded with that person or entity providing for the temporary transfer for consideration ofthe voting rights in question;c.voting rights attaching to Securities which are lodged as collateral with that person or entity, provided the person or entity controls the voting rightsand declares his intention of exercising them;d.voting rights attaching to Securities in which that person or entity has the life interest; 149 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. e.voting rights which are held, or may be exercised within the meaning of clauses (a) to (d), by an undertaking controlled by that person or entity;f.voting rights attaching to Securities deposited with that person or entity which the person or entity can exercise at his discretion in the absence ofspecific instructions from the Securities holders;g.voting rights held by a third party in its own name on behalf of that person or entity;h.voting rights which that person or entity may exercise as a proxy where the person or entity can exercise the voting rights at his discretion in theabsence of specific instructions from the Securities holders. The above notification requirements also apply to a natural person or legal entity that holds, directly or indirectly, financial instruments linked toour common shares. Board of Directors Globant S.A. is managed by our board of directors which is vested with the broadest powers to take any actions necessary or useful to fulfill ourcorporate purpose with the exception of actions reserved by law or our articles of association to the general meeting of shareholders. Our articles ofassociation provide that our board of directors must consist of at least seven members and no more than fifteen members. Our board of directors meets as oftenas company interests require. A majority of the members of our board of directors present or represented at a board meeting constitutes a quorum, and resolutions are adopted bythe simple majority vote of our board members present or represented. In the case of a tie, the chairman of our board shall have the deciding vote. Our boardof directors may also make decisions by means of resolutions in writing signed by all directors. Directors are elected by the general meeting of shareholders, and appointed for a period of up to four years; provided, however, that directors areelected on a staggered basis, with one-third of the directors being elected each year; and provided, further, that such term may be exceeded by a period up tothe annual general meeting held following the fourth anniversary of the appointment, and each director will hold office until his or her successor is elected.The general shareholders' meeting may remove one or more directors at any time, without cause and without prior notice by a resolution passed by simplemajority vote. If our board of directors has a vacancy, such vacancy may be filled on a temporary basis by a person designated by the remaining members ofour board of directors until the next general meeting of shareholders, which will resolve on a permanent appointment. Any director shall be eligible for re-election indefinitely. Within the limits provided for by applicable law and our articles of association, our board of directors may delegate to one or more directors or toany one or more persons, who need not be shareholders, acting alone or jointly, the daily management of Globant S.A. and the authority to represent us inconnection with such daily management. Our board of directors may also grant special powers to any person(s) acting alone or jointly with others as agent ofGlobant S.A. Our board of directors may establish one or more committees, including without limitation, an audit committee, a nominating and corporategovernance committee, and a compensation committee, and for which it shall, if one or more of such committees are set up, appoint the members, determinethe purpose, powers and authorities as well as the procedures and such other rules as may be applicable thereto. Our board of directors has established anaudit committee pursuant to the Luxembourg law of 23 July 2016 concerning the audit profession, as well as a compensation committee, and a nominatingand corporate governance committee. No contract or other transaction between us and any other company or firm shall be affected or invalidated by the fact that any one or more of ourdirectors or officers is interested in, or is a director, associate, officer, agent, adviser or employee of such other company or firm. Any director or officer whoserves as a director, officer or employee or otherwise of any company or firm with which we shall contract or otherwise engage in business shall not, by reasonof such affiliation with such other company or firm only, be prevented from considering and voting or acting upon any matters with respect to such contractor other business. 150 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Any director who has, directly or indirectly, a conflicting interest in a transaction submitted for approval to our board of directors that conflicts withour interest, must inform our board of directors thereof and to cause a record of his statement to be included in the minutes of the meeting. Such director maynot take part in these deliberations and may not vote on the relevant transaction. At the next general meeting, before any resolution is put to a vote, a specialreport shall be made on any transactions in which any of the directors may have had an interest that conflicts with our interest. No shareholding qualification for directors is required. Any director and other officer, past and present, is entitled to indemnification from us to the fullest extent permitted by law against liability and allexpenses reasonably incurred or paid by such director in connection with any claim, action, suit or proceeding in which he or she is involved as a party orotherwise by virtue of his being or having been a director. We may purchase and maintain insurance for any director or other officer against any suchliability. No indemnification shall be provided against any liability to us or our shareholders by reason of willful misconduct, bad faith, gross negligence orreckless disregard of the duties of a director or officer. No indemnification will be provided with respect to any matter as to which the director or officer shallhave been finally adjudicated to have acted in bad faith and not in our interest, nor will indemnification be provided in the event of a settlement (unlessapproved by a court or our board of directors). Registrars and Registers for Our Common Shares All of our common shares are in registered form only. We keep a register of common shares at our registered office in Luxembourg. This register is available for inspection by any shareholder. In addition,we may appoint registrars in different jurisdictions who will each maintain a separate register for the registered common shares entered therein. It is possiblefor our shareholders to elect the entry of their common shares in one of these registers and the transfer thereof at any time from one register to any other,including to the register kept at our registered office. However, our board of directors may restrict such transfers for common shares that are registered, listed,quoted, dealt in or have been placed in certain jurisdictions in compliance with the requirements applicable therein. Our articles of association provide that the ownership of registered common shares is established by inscription in the relevant register. We mayconsider the person in whose name the registered common shares are registered in the relevant register as the owner of such registered common shares. Transfer Agent and Registrar The transfer agent and registrar for our common shares is American Stock Transfer & Trust Company, LLC, with an address at 6201 15th AvenueBrooklyn, New York, NY 11219. Our common shares are listed on the NYSE under the symbol "GLOB" and on the LuxSE and admitted to trade on the regulated market of the LuxSEunder the International Securities Identification Number LU0974299876. C. Material Contracts In November 2018, Globant LLC, our U.S. subsidiary (the “Borrower”) entered into an Amended and Restated Credit Agreement (the “A&R CreditAgreement”) with the financial institutions listed therein, as lenders, and HSBC Bank USA, N.A., as administrative agent, issuing bank and swingline lender.The A&R Credit Agreement amends and restates the Credit Agreement dated as of August 3, 2017, which provided for a secured revolving credit facilityunder which the Borrower could borrow up to $40.0 million in advances. Under the A&R Credit Agreement, the Borrower may borrow (i) up to $50.0 millionin a single borrowing on or prior to May 1, 2019 under a delayed-draw term loan facility and (ii) up to $150.0 million under a revolving credit facility. Inaddition, the Borrower may request increases of the maximum amount available under the revolving facility in an aggregate amount not to exceed $100.0million. The maturity date of each of the facilities is October 31, 2023, and interest on the loans extended thereunder shall accrue at a rate per annum equal toLIBOR plus 1.75%. The Borrower’s obligations under the A&R Credit Agreement are guaranteed by us and our subsidiary, Globant España S.A., and aresecured by substantially all of the Borrower’s now owned and after-acquired assets. The A&R Credit Agreement also contains certain customary negative andaffirmative covenants. . Compliance with these covenants may limit our flexibility in operating our business and our ability to take actions that might beadvantageous to us and our shareholders. 151 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. On January 17, 2019, we entered into a Share Purchase Agreement (the “Purchase Agreement”) with the shareholders of Avanxo (Bermuda) Limited(“Avanxo”), pursuant to which we agreed to purchase all of Avanxo’s share capital (the "Acquisition") subject to the terms and conditions set forth in thePurchase Agreement. Avanxo is a cloud consulting and implementation company headquartered in Bermuda, with operations in Brazil, Mexico, Colombia,Peru, Argentina and the United States. The transaction closed in February 1, 2019. For more information, see "Financial Information - Significant Changes". Aside from the A&R Credit Agreement and the Purchase Agreement mentioned above, we have not entered into any other material contract duringthe preceding two years which were outside the ordinary course of business. During the preceding two years and up to the date of this annual report, we haveissued shares under certain subscription agreements we entered into and some of these shares are subject to transferability restrictions as of the date of thisannual report, as set forth below: •In June 2018 we issued 9,120 common shares in favor of the sellers of Clarice (the "Clarice Subscribers") pursuant to the terms of certain subscriptionagreements entered into by us and the Clarice Subscribers in May 2015. As of the date of this annual report, such common shares are subject tocertain transfer restrictions under the terms of the relevant subscription agreements, whereby the Clarice Subscribers have agreed, among othersterms, during a one-year period from the date of issuance of the common shares, not to offer, pledge, sell, announce the intention to sell, contract tosell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwisetransfer or dispose of, directly or indirectly, the common shares subscribed for under the subscription agreements, provided, however, that theforegoing restrictions are subject to a range of exceptions. •In July 2018 we issued 18,692 common shares in favor of the sellers of WAE (the "WAE Subscribers") pursuant to the terms of certain subscriptionagreements entered into by us and the WAE Subscribers in May 2016. As of the date of this annual report, such common shares are subject to certaintransfer restrictions under the terms of the relevant subscription agreements, whereby the WAE Subscribers have agreed, among other terms, during aone-year period from the date of issuance of the common shares, not to offer, pledge, sell, announce the intention to sell, contract to sell, sell anyoption or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or disposeof, directly or indirectly, the common shares subscribed for under the subscription agreements, provided, however, that the foregoing restrictions aresubject to a range of exceptions. •In October 2018 we issued 16,315 common shares in favor of the sellers of Small Footprint Inc. (the “Small Footprint Subscribers”) pursuant to theterms of certain subscription agreements entered into by us and the Small Footprint Subscribers during that same month. As of the date of this annualreport such common shares are subject to certain transfer restrictions under the terms of the relevant subscription agreements, whereby the SmallFootprint Subscribers have agreed, among other terms, during a one-year period from the date of issuance of the common shares, not to offer, pledge,sell, announce the intention to sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option,right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, the common shares subscribed for under the subscriptionagreements, provided, however, that the foregoing restrictions are subject to a range of exceptions. •In February 2019 we issued 3,542 common shares in favor of the sellers of PointSource (the “PointSource Subscribers”) pursuant to the terms ofcertain subscription agreements entered into by us and the PointSource Subscribers in June 2017. As of the date of this annual report such commonshares are subject to certain transfer restrictions under the terms of the relevant subscription agreements, whereby the PointSource Subscribers haveagreed, among other terms, during a one-year period from the date of issuance of the common shares, not to offer, pledge, sell, announce theintention to sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant topurchase, or otherwise transfer or dispose of, directly or indirectly, the common shares subscribed for under the subscription agreements, provided,however, that the foregoing restrictions are subject to a range of exceptions. 152 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. •In February 2019 we issued 14,778 common shares in favor of certain sellers of Avanxo (the “Avanxo Subscribers”) pursuant to the terms of certainsubscription agreements entered into by us and the Avanxo Subscribers during that same month. As of the date of this annual report such commonshares are subject to certain transfer restrictions under the terms of the relevant subscription agreements, whereby the Avanxo Subscribers haveagreed, among other terms, during a one-year period from the date of issuance of the common shares, not to offer, pledge, sell, announce theintention to sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant topurchase, or otherwise transfer or dispose of, directly or indirectly, the common shares subscribed for under the subscription agreements, provided,however, that the foregoing restrictions are subject to a range of exceptions. D. Exchange Controls See "Information on the Company — Business Overview — Regulatory Overview — Foreign Exchange Controls." E. Taxation The following is a summary of the material Luxembourg and U.S. federal income tax consequences to U.S. Holders (as defined below) of theownership and disposition of our common shares. This summary is based upon Luxembourg tax laws and U.S. federal income tax laws (including the U.S.Internal Revenue Code of 1986, as amended (the "Code"), final, temporary and proposed Treasury regulations, rulings, judicial decisions and administrativepronouncements), all currently in effect as of the date hereof and all of which are subject to change or changes in wording or administrative or judicialinterpretation occurring after the date hereof, possibly with retroactive effect. To the extent that the following discussion relates to matters of Luxembourgtax law, it represents the opinion of Arendt & Medernach, Luxembourg, our Luxembourg counsel, and to the extent that the discussion relates to matters ofU.S. federal income tax law, it represents the opinion of DLA Piper LLP (U.S.), our U.S. counsel. As used herein, the term "U.S. Holder" means a beneficial owner of one or more of our common shares: (a)that is for U.S. federal income tax purposes one of the following: (i)an individual citizen or resident of the United States, (ii)a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) created or organized in or under the laws ofthe United States or any political subdivision thereof, or (iii)an estate or trust the income of which is subject to U.S. federal income taxation regardless of its source; (b)who holds the common shares as capital assets for U.S. federal income tax purposes; (c)who owns, directly, indirectly or by attribution, less than 10% of our share capital or voting shares; and (d)whose holding is not effectively connected with a permanent establishment in Luxembourg. This summary does not address all of the tax considerations that may apply to holders that are subject to special tax rules, such as U.S. expatriates,insurance companies, tax-exempt organizations, certain financial institutions, persons subject to the alternative minimum tax, dealers and certain traders insecurities, persons holding common shares as part of a straddle, hedging, conversion or other integrated transaction, persons who acquired their commonshares pursuant to the exercise of employee shares options or otherwise as compensation, partnerships or other entities classified as partnerships for U.S.federal income tax purposes or persons whose functional currency is not the U.S. dollar. Such holders may be subject to U.S. federal income tax consequencesdifferent from those set forth below. In addition, as described above, the 2017 Tax Act includes substantial changes to the U.S. federal income taxation ofindividuals and businesses which are effective from January 1, 2018. Although the new law substantially decreased corporate tax rates, all of theconsequences of the new law, including the unintended consequences, if any, are not yet known. For the avoidance of doubt, this discussion does not coverany implications of Code section 965 (Treatment of deferred foreign income upon transition to participation exemption system of taxation) or Code section245A (Deduction for foreign source-portion of dividends received by domestic corporations from specified 10% owned foreign corporations). In addition,this summary does not address all of the Luxembourg tax considerations that may apply to holders that are subject to special tax rules. 153 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. If a partnership holds common shares, the tax treatment of a partner generally will depend upon the status of the partner and the activities of thepartnership. A partnership, or partner in a partnership, that holds common shares is urged to consult its own tax advisor regarding the specific taxconsequences of owning and disposing of the common shares. Potential investors in our common shares should consult their own tax advisors concerning the specific Luxembourg and U.S. federal, state and localtax consequences of the ownership and disposition of our common shares in light of their particular situations as well as any consequences arising under thelaws of any other taxing jurisdiction. Luxembourg Tax Considerations Introduction The following is an overview of certain material Luxembourg tax consequences of purchasing, owning and disposing of the common shares issuedby us. It does not purport to be a complete analysis of all possible tax situations that may be relevant to a decision to purchase, own or deposit our commonshares. It is included herein solely for preliminary information purposes and is not intended to be, nor should it construed to be, legal or tax advice.Prospective purchasers of our common shares should consult their own tax advisers as to the applicable tax consequences of the ownership of our commonshares, based on their particular circumstances. The following description of Luxembourg tax law is based upon the Luxembourg law and regulations as ineffect and as interpreted by the Luxembourg tax authorities as of the date of this annual report and is subject to any amendments in law (or in interpretation)later introduced, whether or not on a retroactive basis. Please be aware that the residence concept used under the respective headings below applies forLuxembourg tax assessment purposes only. Any reference in this section to a tax, duty, levy impost or other charge or withholding of a similar nature refers toLuxembourg tax laws and/or concepts only. Also, please note that a reference to Luxembourg income tax encompasses corporate income tax (impôt sur lerevenu des collectivités), municipal business tax (impôt commercial communal), a solidarity surcharge (contribution au fonds pour l'emploi) and personalincome tax (impôt sur le revenu) generally. Corporate taxpayers may further be subject to net worth tax (impôt sur la fortune), as well as other duties, levies ortaxes. Corporate income tax, municipal business tax, as well as the solidarity surcharge invariably applies to most corporate taxpayers resident ofLuxembourg for tax purposes. Individual taxpayers are generally subject to personal income tax and to the solidarity surcharge. Under certain circumstances,where an individual taxpayer acts in the course of the management of a professional or business undertaking, municipal business tax may apply as well. Taxation of the company Income tax As the company is a fully-taxable Luxembourg company, its net taxable profit is as a rule subject to corporate income tax ("CIT") and municipalbusiness tax ("MBT") at ordinary rates in Luxembourg. The taxable profit as determined for CIT purposes is applicable, with minor adjustments, for MBT purposes. CIT is levied at an effective maximumrate of 19.26% as from 2018 (inclusive of the 7% surcharge for the employment fund). MBT is levied at a variable rate according to the municipality in whichthe company is located (6.75% in the City of Luxembourg). The maximum aggregate CIT and MBT rate consequently amounts to 26.01% as from 2018 forcompanies located in the City of Luxembourg. Dividends and other payments derived from shares by the company are subject to income taxes, unless the conditions of the participation exemptionregime, as described below, are satisfied. A tax credit is generally granted for withholding taxes levied at source within the limit of the tax payable inLuxembourg on such income, whereby any excess withholding tax is not refundable. 154 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Under the participation exemption regime (subject to the relevant anti-abuse rules), dividends derived from shares may be exempt from income tax if(i) the distributing company is a qualified subsidiary ("Qualified Subsidiary") and (ii) at the time the dividend is put at the company's disposal, the companyhas held or commits itself to hold for an uninterrupted period of at least 12 months shares representing a direct participation in the share capital of theQualified Subsidiary (i) of at least 10% or of (ii) an acquisition price of at least €1.2 million. A Qualified Subsidiary means (a) a Luxembourg resident fully-taxable company limited by share capital (société de capitaux), (b) a company covered by Article 2 of the Council Directive 2011/96/EU of November 30,2011 as amended (the "EU Parent-Subsidiary Directive") or (c) a non-resident company limited by share capital (société de capitaux) liable to a taxcorresponding to Luxembourg CIT. Liquidation proceeds are assimilated to a received dividend and may be exempt under the same conditions. If the conditions of the participationexemption regime are not met, dividends derived by the company from Qualified Subsidiaries may be exempt for 50 % of their gross amount if they arereceived from (i) a Luxembourg resident fully-taxable company limited by share capital, or (ii) a company limited by share capital resident in a State withwhich the Grand Duchy of Luxembourg has concluded a double tax treaty and liable to a tax corresponding to Luxembourg CIT, or (iii) a company residentin a EU Member State and covered by Article 2 of the EU Parent-Subsidiary Directive. Capital gains realized by the company on shares are subject to CIT and MBT at ordinary rates, unless the conditions of the participation exemptionregime, as described below, are satisfied. Under the participation exemption regime, capital gains realized on shares of a Qualified Subsidiary may be exemptfrom CIT and MBT at the level of the company if at the time the capital gain is realized, the company has held or commits itself to hold for an uninterruptedperiod of at least 12 months shares representing a direct participation in the share capital of the Qualified Subsidiary (i) of at least 10% or of (ii) anacquisition price of at least €6 million. Taxable gains are defined as being the difference between the price for which shares have been disposed of and thelower of their cost or book value. Withholding tax Dividends paid by us to the holders of our common shares are as a rule subject to a 15% withholding tax in Luxembourg, unless a reducedwithholding tax rate applies pursuant to an applicable double tax treaty or an exemption pursuant to the application of the participation exemption, and, tothe extent withholding tax applies, we are responsible for withholding amounts corresponding to such taxation at its source. If the company and a U.S. relevant holder are eligible for the benefits of the tax treaty concluded between the United State and Luxembourg (the"Treaty"), the rate of withholding on distributions is 15%, or 5% if the U.S. relevant holder is a qualified resident company as defined in Article 24 of theTreaty that owns at least 10% of our the company's voting stock. A withholding tax exemption may apply under the participation exemption if cumulatively (i) the holder of our shares is an eligible parent (an"Eligible Parent") and (ii) at the time the income is made available, the holder of our shares has held or commits itself to hold for an uninterrupted period of atleast 12 months a direct participation of at least 10% of our share capital or a direct participation of an acquisition price of at least €1.2 million (or anequivalent amount in another currency). Holding a participation through an entity treated as tax transparent from a Luxembourg income tax perspective isdeemed to be a direct participation in proportion to the net assets held in this entity. An Eligible Parent includes (a) a company covered by Article 2 of theEU Parent-Subsidiary Directive or a Luxembourg permanent establishment thereof, (b) a company resident in a State having a double tax treaty withLuxembourg and subject to a tax corresponding to Luxembourg CIT or a Luxembourg permanent establishment thereof, (c) a company limited by sharecapital (société de capitaux) or a cooperative society (société coopérative) resident in the European Economic Area other than an EU Member State andliable to a tax corresponding to Luxembourg CIT or a Luxembourg permanent establishment thereof or (d) a Swiss company limited by share capital (sociétéde capitaux) which is effectively subject to corporate income tax in Switzerland without benefiting from an exemption. No withholding tax is levied on capital gains and liquidation proceeds. Net wealth tax The company is as a rule subject to Luxembourg net wealth tax ("NWT") on its net assets as determined for net wealth tax purposes. NWT is levied atthe rate of 0.5% on net assets not exceeding EUR 500 million and at the rate of 0.05% on the portion of the net assets exceeding EUR 500 million. Net worthis referred to as the unitary value (valeur unitaire), as determined at January 1 of each year. The unitary value is in principle calculated as the differencebetween (i) assets estimated at their fair market value (valeur estimée de réalisation), and (ii) liabilities vis-à-vis third parties. 155 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Under the participation exemption regime, a qualified shareholding held by the company in a Qualified Subsidiary is exempt for net wealth taxpurposes. A minimum net wealth tax ("MNWT") is levied on companies having their statutory seat or central administration in Luxembourg. For entities forwhich the sum of fixed financial assets, receivables against related companies, transferable securities and cash at bank exceeds 90% of their total balancesheet and EUR 350,000, the MNWT is set at EUR 4,815. For all other companies having their statutory seat or central administration in Luxembourg whichdo not fall within the scope of the EUR 4,815 MNWT, the MNWT ranges from EUR 535 to EUR 32,100, depending on the company's total balance sheet. Other taxes The issuance of our common shares and any other amendment of our articles of association are currently subject to a €75 fixed registration duty. Thedisposal of our common shares is not subject to a Luxembourg registration tax or stamp duty, unless recorded in a Luxembourg notarial deed or otherwiseregistered in Luxembourg. Taxation of the holders of commons shares Luxembourg tax residency of the holders of our common shares A holder of our common shares will not become resident, nor be deemed to be resident, in Luxembourg by reason only of the holding and/ordisposing of our common shares or the execution, performance or enforcement of his/her rights thereunder. Income tax Luxembourg resident holders Luxembourg individual residents Dividends and other payments derived from our common shares by resident individual holders of our common shares, who act in the course of themanagement of either their private wealth or their professional or business activity, are subject to income tax at the ordinary progressive rates. A tax creditmay be granted, under certain circumstances, for Luxembourg withholding tax levied. 50% of the gross amount of dividends received from the company byresident individual holders of our common shares are exempt from income tax. Capital gains realized on the disposal of our common shares by resident individual holders of our common shares, who act in the course of themanagement of their private wealth, are not subject to income tax, unless said capital gains qualify either as speculative gains or as gains on a substantialparticipation. Capital gains are deemed to be speculative and are subject to income tax at ordinary rates if our common shares are disposed of within sixmonths after their acquisition or if their disposal precedes their acquisition. Speculative gains are subject to income tax as miscellaneous income at ordinaryrates. A participation is deemed to be substantial where a resident individual holder of our common shares holds or has held, either alone or together with hisspouse or partner and / or minor children, directly or indirectly at any time within the five years preceding the disposal, more than 10% of the share capital ofthe company whose common shares are being disposed of. A holder of our common shares is also deemed to alienate a substantial participation if he acquiredfree of charge, within the five years preceding the transfer, a participation that was constituting a substantial participation in the hands of the alienator (or thealienators in case of successive transfers free of charge within the same five-year period). Capital gains realized on a substantial participation more than sixmonths after the acquisition thereof are taxed according to the half-global rate method, (i.e. the average rate applicable to the total income is calculatedaccording to progressive income tax rates and half of the average rate is applied to the capital gains realized on the substantial participation). A disposal mayinclude a sale, an exchange, a contribution or any other kind of alienation of the participation. Capital gains realized on the disposal of our common shares by resident individual holders of our common shares, who act in the course of theirprofessional or business activity, are subject to income tax at ordinary rates. Taxable gains are determined as being the difference between the price for whichour common shares have been disposed of and the lower of their cost or book value. 156 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Luxembourg fully-taxable corporate residents Dividends and other payments derived from our common shares by Luxembourg-resident, fully-taxable companies are subject to CIT and MBT,unless the conditions of the participation exemption regime, as described below, are satisfied. A tax credit may, under certain circumstances, be granted forany Luxembourg withholding tax levied. If the conditions of the participation exemption regime are not met, 50% of the gross amount of dividends receivedby Luxembourg-resident, fully-taxable companies from our common shares are exempt from CIT and MBT. Under the participation exemption regime, dividends derived from our common shares may be exempt from CIT and MBT at the level of the holderof our common shares if cumulatively (i) the holder of our common shares is a Luxembourg-resident, fully-taxable company and (ii) at the time the dividendis put at the holder of our common shares' disposal, the holder of our common shares has held or commits itself to hold for an uninterrupted period of at least12 months a qualified shareholding ("Qualified Shareholding"). A Qualified Shareholding means common shares representing a direct participation of at least10% in the share capital of the company or a direct participation in the company of an acquisition price of at least €1.2 million (or an equivalent amount inanother currency). Liquidation proceeds are assimilated to a received dividend and may be exempt under the same conditions. Common shares held througha tax-transparent entity are considered as being a direct participation proportionally to the percentage held in the net assets of the transparent entity. Capital gains realized by a Luxembourg-resident, fully-taxable company on our common shares are subject to CIT and MBT at ordinary rates, unlessthe conditions of the participation exemption regime, as described below, are satisfied. Under the participation exemption regime, capital gains realized onour common shares may be exempt from income tax at the level of the holder of our common shares if cumulatively (i) the holder of our common shares is aLuxembourg fully-taxable corporate resident and (ii) at the time the capital gain is realized, the holder of our common shares has held or commits itself tohold for an uninterrupted period of at least 12 months our common shares representing a direct participation in the share capital of the company of at least10% or a direct participation in the company of an acquisition price of at least €6 million (or an equivalent amount in another currency). Taxable gains aredetermined as being the difference between the price for which our common shares have been disposed of and the lower of their cost or book value. Luxembourg residents benefiting from a special tax regime Holders of our common shares who are either (i) an undertaking for collective investment governed by the amended law of December 17, 2010, (ii) aspecialized investment fund governed by the amended law of February 13, 2007, (iii) a family wealth management company governed by the amended law ofMay 11, 2007 and (iv) a reserved alternative investment fund treated as a specialized investment fund for Luxembourg tax purposes governed by the law ofJuly 23, 2016, are exempt from income tax in Luxembourg. Dividends derived from and capital gains realized on our common shares are thus not subject toincome tax in their hands. Luxembourg non-resident holders Non-resident holders of our common shares who have neither a permanent establishment nor a permanent representative in Luxembourg to which orwhom our common shares are attributable, are not liable to any Luxembourg income tax on income and gains derived from our common shares except capitalgains realised on (i) a substantial participation before the acquisition or within the first six months of the acquisition thereof, or (ii) a substantial participationmore than six months after the acquisition thereof by a holder of our common shares who has been a former Luxembourg resident for more than fifteen yearsand has become a non-resident, at the time of transfer, less than five years ago. A participation is deemed to be substantial where a shareholder holds or hasheld, either alone or, in case of an individual shareholder, together with his/her spouse or partner and/or minor children, directly or indirectly at any timewithin the five years preceding the disposal, more than 10% of the share capital of the company whose common shares are being disposed of. A shareholder isalso deemed to alienate a substantial participation if he acquired free of charge, within the five years preceding the transfer, a participation that wasconstituting a substantial participation in the hands of the alienator (or the alienators in case of successive transfers free of charge within the same five-yearperiod). 157 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. If the company and a U.S. relevant holder are eligible for the benefits of the Treaty, such U.S. relevant holder generally should not be subject toLuxembourg tax on the gain from the disposal of such common shares unless such gain is attributable to a permanent establishment of such U.S. relevantholder in Luxembourg. Non-resident holders of our common shares which have a permanent establishment or a permanent representative in Luxembourg to which or whomour common shares are attributable, must include any income received, as well as any gain realized, on the sale, disposal or redemption of our commonshares, in their taxable income for Luxembourg tax assessment purposes, unless the conditions of the participation exemption regime, as described below, aresatisfied. If the conditions of the participation exemption regime are not fulfilled, 50% of the gross amount of dividends received by a Luxembourgpermanent establishment or permanent representative may be, however, exempt from income tax. Taxable gains are determined as being the differencebetween the price for which the common shares have been disposed of and the lower of their cost or book value. Under the participation exemption regime, dividends derived from our common shares may be exempt from income tax if cumulatively (i) ourcommon shares are attributable to a qualified permanent establishment ("Qualified Permanent Establishment") and (ii) at the time the dividend is put at thedisposal of the Qualified Permanent Establishment, it has held or commits itself to hold a Qualified Shareholding for an uninterrupted period of at least 12months. A Qualified Permanent Establishment means (a) a Luxembourg permanent establishment of a company covered by Article 2 of the EU Parent-Subsidiary Directive, (b) a Luxembourg permanent establishment of a company limited by share capital (société de capitaux) resident in a State having a taxtreaty with Luxembourg, and (c) a Luxembourg permanent establishment of a company limited by share capital (société de capitaux) or a cooperative society(société coopérative) resident in the European Economic Area other than a EU Member State. Liquidation proceeds are assimilated to a received dividendand may be exempt under the same conditions. Common shares held through a tax transparent entity are considered as being a direct participationproportionally to the percentage held in the net assets of the transparent entity. Under the participation exemption regime, capital gains realized on our common shares may be exempt from income tax if (i) our common shares areattributable to a Qualified Permanent Establishment and (ii) at the time the capital gain is realized, the Qualified Permanent Establishment has held orcommits itself to hold, for an uninterrupted period of at least 12 months, our common shares representing a direct participation in the share capital of thecompany of at least 10% or a direct participation in the company of an acquisition price of at least €6 million (or an equivalent amount in another currency).Taxable gains are determined as being the difference between the price for which our common shares have been disposed of and the lower of their cost orbook value. Net Wealth Tax Luxembourg resident holders of our common shares, as well as non-resident holders of our common shares who have a permanent establishment or apermanent representative in Luxembourg to which or whom our common shares are attributable, are subject to Luxembourg net wealth tax on our commonshares, except if the holder is (i) a resident or non-resident individual taxpayer, (ii) a securitization company governed by the amended law of March 22, 2004on securitization, (iii) a company governed by the amended law of June 15, 2004 on venture capital vehicles, (iv) a professional pension institution governedby the amended law of July 13, 2005, (v) a specialized investment fund governed by the amended law of February 13, 2007, (vi) a family wealth managementcompany governed by the amended law of May 11, 2007, (vii) an undertaking for collective investment governed by the amended law of December 17, 2010or (viii) a reserved alternative investment fund governed by the law of July 23, 2016. However, (i) a securitization company governed by the amended law ofMarch 22, 2004 on securitization, (ii) a company governed by the amended law of June 15, 2004 on venture capital vehicles, (iii) a professional pensioninstitution governed by the amended law of July 13, 2005 and (iv) a reserved alternative investment fund treated as a venture capital vehicle for Luxembourgtax purposes and governed by the law of July 23, 2016, remain subject to minimum net wealth tax. Under the participation exemption, a Qualified Shareholding held in the company by an Eligible Parent or attributable to a Qualified PermanentEstablishment may be exempt. The net wealth tax exemption for a Qualified Shareholding does not require the completion of the 12-month holding period. 158 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Other Taxes Under Luxembourg tax law, where an individual holder of our common shares is a resident of Luxembourg for tax purposes at the time of his or herdeath, our common shares are included in his or her taxable basis for inheritance tax purposes. On the contrary, no inheritance tax is levied on the transfer ofour common shares upon the death of an individual holder in cases where the deceased was not a resident of Luxembourg for inheritance purposes. Gift tax may be due on a gift or donation of our common shares, if the gift is recorded in a Luxembourg notarial deed or otherwise registered inLuxembourg. U.S. Federal Income Tax Considerations Taxation of dividends Distributions received by a U.S. Holder on common shares, including the amount of any Luxembourg taxes withheld, other than certain pro ratadistributions of common shares to all shareholders, will constitute foreign source dividend income to the extent paid out of our current or accumulatedearnings and profits (as determined for U.S. federal income tax purposes). Because we do not maintain calculations of our earnings and profits under U.S.federal income tax principles, it is expected that such distributions (including any Luxembourg taxes withheld) will be reported to U.S. Holders as dividends.Although it is our intention, if we pay any dividends, to pay such dividends in U.S. dollars, if dividends are paid in euros, the amount of the dividend a U.S.Holder will be required to include in income will equal the U.S. dollar value of the euro, calculated by reference to the exchange rate in effect on the date thepayment is received by the U.S. Holder, regardless of whether the payment is converted into U.S. dollars on the date of receipt. If the dividend is converted toU.S. dollars on the date of receipt, a U.S. holder should not be required to recognize foreign currency gain or loss in respect of the dividend income. A U.S.Holder may have foreign currency gain or loss if the dividend is converted into U.S. dollars after the date of its receipt. If a U.S. Holder realizes gain or loss ona sale or other disposition of euro, it will be U.S. source ordinary income or loss. U.S. Holders that are corporations generally will not be entitled to claim adividends received deduction with respect to any distributions they receive from us, except that certain U.S. Holders that are corporations and that directly,indirectly or constructively own 10% or more of our voting power or value may be entitled to a 100% dividends received deduction under certaincircumstances. The rules with respect to the dividends received deduction are complex and involve the application of rules that depend on a U.S. Holder’sparticular circumstances and on whether we are a PFIC (defined below), a “controlled foreign corporation” or both, among other things. You should consultyour own tax advisor to determine the effect of the dividends received deduction on your ownership of our common stock. Subject to applicable limitations,dividends received by certain non-corporate U.S. Holders of common shares generally will be taxable at the reduced rate that otherwise applies to long-termcapital gains. Non-corporate U.S. Holders should consult their own tax advisors to determine whether they are subject to any special rules that limit theirability to be taxed at this favorable rate. Certain pro rata distributions of ordinary shares to all shareholders are not generally subject to U.S. federal incometax. Instead of claiming a credit, a U.S. Holder may elect to deduct foreign taxes (including any Luxembourg taxes) in computing its taxable income,subject to generally applicable limitations. An election to deduct foreign taxes (instead of claiming foreign tax credits) applies to all taxes paid or accrued inthe taxable year to foreign countries and possessions of the United States. The limitations on foreign taxes eligible for credit is calculated separately withrespect to specific classes of income. The rules governing foreign tax credits are complex. Therefore, U.S. Holders should consult their own tax advisorsregarding the availability of foreign tax credits in their particular circumstances. Taxation upon sale or other taxable disposition of common shares A U.S. Holder will recognize U.S. source capital gain or loss on the sale or other disposition of common shares, which will be long-term capital gainor loss if the U.S. Holder has held such common shares for more than one year. The amount of the U.S. Holder's gain or loss will be equal to the differencebetween such U.S. Holder's tax basis in the common shares sold or otherwise disposed of and the amount realized on the sale or other disposition. 159 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Controlled Foreign Corporation The 2017 Tax Act eliminated the prohibition on “downward attribution” from non-U.S. persons to U.S. persons under Section 958(b)(4) of the Codefor purposes of determining constructive stock ownership under the controlled foreign corporation (“CFC”) rules. As a result, our U.S. subsidiary will bedeemed to own all of the stock of our non-U.S. subsidiaries held by the Company for CFC purposes. To the extent a non-U.S. subsidiary is treated as a CFCfor any taxable year, each U.S. person treated as a “10% U.S. Shareholder” with respect to such CFC that held our common shares directly or indirectlythrough non-U.S. entities (including the Company) as of the last day in such taxable year that the subsidiary was a CFC would generally be required toinclude in gross income as ordinary income its pro rata share of certain income of the CFC, regardless of whether that income was actually distributed to suchU.S. person. For tax years beginning on or after January 1, 2018, a “10% U.S. Shareholder” of a non-U.S. corporation includes any U.S. person that owns (or istreated as owning) stock of the non-U.S. corporation possessing 10% or more of the total voting power or total value of such non-U.S. corporation’s stock.The legislative history under the 2017 Tax Act indicates that this change was not intended to cause our non-U.S. subsidiaries to be treated as CFCs withrespect to a 10% U.S. Shareholder that is not related to our U.S. subsidiary. However, it is not clear whether the IRS or a court would interpret the changemade by the 2017 Tax Act in a manner consistent with such indicated intent. Investors are strongly urged to consult their own tax advisors to determine whether their ownership of our common shares will cause them to becomea 10% U.S. Shareholder and the impact of such a classification. Passive foreign investment company rules We believe that we will not be a passive foreign investment company ("PFIC") for U.S. federal income tax purposes for this current taxable year anddoes not expect to become one in the foreseeable future. However, because PFIC status depends upon the composition of our income and assets and themarket value of the assets (including, among others, less than 25% owned equity investments) from time to time, there can be no assurance that we will not beconsidered a PFIC for any taxable year. Because we have valued our goodwill based on the market value of our equity, a decrease in the price of commonshares may also result in us becoming a PFIC. The composition of our income and our assets will also be affected by how, and how quickly, we spend ourcash. Under circumstances where the cash is not deployed for active purposes, our risk of becoming a PFIC may increase. If we were treated as a PFIC for anytaxable year during which a U.S. Holder held common shares, certain adverse tax consequences could apply to the U.S. Holder. If we were treated as a PFIC for any taxable year during which a U.S. Holder held common shares, gain recognized by a U.S. Holder on a sale or otherdisposition of a common shares would be allocated ratably over the U.S. Holder's holding period for the common shares. The amounts allocated to the taxableyear of the sale or other disposition and to any year before we became a PFIC would be taxed as ordinary income. The amount allocated to each other taxableyear would be subject to tax at the highest rate in effect for individuals or corporations, as appropriate, and an interest charge would be imposed on theresulting tax liability. The same treatment would apply to any distribution in respect of common shares to the extent it exceeds 125% of the average of theannual distributions on common shares received by the U.S. Holder during the preceding three years or the U.S. Holder's holding period, whichever is shorter.Certain elections may be available that would result in alternative treatments (such as mark-to-market treatment) of the common shares. In addition, if we were treated as a PFIC in a taxable year in which we pay a dividend or in the prior taxable year, the reduced rate discussed abovewith respect to dividends paid to certain non-corporate U.S. Holders would not apply. Information reporting and backup withholding Payments of dividends and sales proceeds that are made within the United States or through certain U.S.-related financial intermediaries generallyare subject to information reporting and to backup withholding unless the U.S. Holder is a corporation or other exempt recipient or, in the case of backupwithholding, the U.S. Holder provides a correct taxpayer identification number and certifies that it is not subject to backup withholding. The amount of anybackup withholding from a payment to a U.S. Holder will be allowed as a credit against the U.S. Holder's U.S. federal income tax liability and may entitlesuch U.S. Holder to a refund, provided that the required information is timely furnished to the Internal Revenue Service. 160 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. F. Dividends and Paying Agents Not applicable. G. Statement by Experts. Not applicable. H. Documents on Display As a foreign private issuer, we are subject to periodic reporting and other informational requirements of the Exchange Act as applicable.Accordingly, we are required to file reports, including this annual report on Form 20-F, and other information with the SEC. However, we are allowed fourmonths to file our annual report with the SEC instead of approximately three, and we are not required to disclose certain detailed information regardingexecutive compensation that is required from United States domestic issuers. In addition, we are not required under the Exchange Act to file periodic reportsand financial statements with the SEC as frequently as companies that are not foreign private issuers whose securities are registered under the Exchange Act.Also, as a foreign private issuer, we are exempt from the rules of the Exchange Act prescribing the furnishing of proxy statements to shareholders, and oursenior management, directors and principal shareholders are exempt from the reporting and short-swing profit recovery provisions contained in Section 16 ofthe Exchange Act. As a foreign private issuer, we are also exempt from the requirements of Regulation FD (Fair Disclosure) which, generally, are meant to ensure thatselect groups of investors are not privy to specific information about an issuer before other investors. We are, however, still subject to the anti-fraud and anti-manipulation rules of the SEC, such as Rule 10b-5. Since many of the disclosure obligations required of us as a foreign private issuer are different than thoserequired by other United States domestic reporting companies, our shareholders, potential shareholders and the investing public in general should not expectto receive information about us in the same amount, and at the same time, as information is received from, or provided by, other United States domesticreporting companies. We are liable for violations of the rules and regulations of the SEC which do apply to us as a foreign private issuer. You may review and copy the registration statement, reports and other information we file at the SEC’s Public Reference Room at 100 F Street, N.E.,Washington, DC 20549. You may also request copies of these documents upon payment of a duplicating fee by writing to the SEC. For further information on the Public Reference Room, please call the SEC at 1-800-SEC-0330. Our SEC filings, including the registrationstatement, are also available to you on the SEC’s website at http://www.sec.gov. This site contains reports, proxy and information statements and otherinformation regarding issuers that file electronically with the SEC. The information on that website is not part of this annual report. I. Subsidiaries Information Not applicable. ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. Our market risk exposure results primarily from concentration of credit risk, fluctuations in interest rates and foreign currency rates and inflation. Wedo not engage in trading of derivative instruments for speculative purposes. 161 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Concentration of Credit and Other Risk Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of cash and bank balances, short-terminvestments and trade receivables. These financial instruments approximate fair value due to short-term maturities. We maintain our cash and bank balancesand short-term investments with high credit quality financial institutions. Our investment portfolio is primarily comprised of time deposits and corporate andtreasury bonds. We believe that our credit policies reflect normal industry terms and business risk. We do not anticipate non-performance by thecounterparties and, accordingly, do not require collateral. Trade receivables are generally dispersed across our clients in proportion to the revenues we generate from them. For the years ended December 31,2018, 2017 and 2016, our top five clients accounted for 32.0%, 28.9% and 33.7%, respectively, of our net revenues. Our top client for the years endedDecember 31, 2018, 2017 and 2016, accounted for 11.3%, 10.2% and 9.7%, respectively. Our top client for 2018 and 2017 was Walt Disney Parks andResorts Online; and Southwest Airlines Co. was our top client for 2016. As of December 31, 2018 and 2017, accounts receivable from Walt Disney Parks andResorts Online represented 8.26% and 10.1% of our total accounts receivable, respectively; whereas accounts receivable from Southwest Airlines Co. in2016, represented 9.9% of our total accounts receivable. Credit losses and write-offs of trade receivable balances have historically not been material to our consolidated financial statements. Interest Rate Risk Our exposure to market risk for changes in interest rates relates primarily to our cash and bank balances and our credit facilities. Our credit line in theUnited States bear interest at fixed rate of 1.75% and at variable rates from 1.78% at 2.8%, respectively. We do not use derivative financial instruments tohedge our risk of interest rate volatility. Based on our debt position as of December 31, 2018, if we needed to refinance our existing debt, a 1% increase in interest rates would not materiallyimpact us. We have not been exposed to material risks due to changes in market interest rates. However, our future financial costs related to borrowings mayincrease and our financial income may decrease due to changes in market interest rates. Foreign Exchange Risk Our exchange rate risk arises in the ordinary course of our business primarily from our foreign currency expenses and, to a lesser extent, revenues. Weare also exposed to exchange rate risk on the portion of our cash and bank balances, investments and trade receivables that is denominated in currencies otherthan the U.S. dollar and on other receivables, such as Argentine tax credits. Our consolidated financial statements are prepared in U.S. dollars. Because the majority of our operations are conducted in Latin America and Asia,we incur the majority of our operating expenses and capital expenditures in non-U.S. dollar currencies, primarily the Argentine peso, Uruguayan peso,Colombian peso, Mexican peso, Indian rupees and Brazilian real. 85.6% of our revenues for the year ended December 31, 2018 was generated in U.S. dollars,with the balance being generated primarily in Euros and, to a lesser extent, other currencies (including the Argentine peso, the Colombian peso and theMexican peso). The following table shows the breakdown of our revenues by the currencies in which they were generated during the years endedDecember 31, 2018, 2017 and 2016, respectively. 162 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Year ended December 31, (in thousands) 2018 2017 2016 By Currency USD $447,314 85.6% $354,824 85.8% $290,636 90.0%EUR 30,087 5.8% 23,518 5.7% 12,060 3.7%GBP 6,550 1.3% 4,107 1.0% 4,988 1.5%ARS 20,651 4.0% 12,856 3.1% 9,948 3.1%MXN 11,711 2.2% 6,942 1.7% — —%Others 5,997 1.1% 11,192 2.7% 5,224 1.6%Revenues $522,310 100.0% $413,439 100.0% $322,856 100.0% A small percentage of our trade receivables is generated from net revenues earned in non-U.S. dollar currencies (primarily Euros, British poundssterling, the Argentine peso, the Mexican peso, the Uruguayan peso and the Colombian peso). Our results of operations can be affected if the Argentine peso, Colombian peso, Uruguayan peso, Mexican peso, Euros or British pound appreciateor depreciate against the U.S. dollar. The following tables illustrate our sensitivity to increases and decreases in the U.S. dollar against the relevant foreign currency. The followingsensitivity analysis includes outstanding foreign currency denominated monetary items at December 31, 2018 and adjusts their translation at the year-end forchanges in U.S. dollars against the relevant foreign currency. Gain/(loss) Account Currency Amount % Increase Amount % Decrease Amount Net balances Argentine pesos 10,147 30% (3,462) 10% (587) Colombian pesos (7,148) 10% 630 10% (738) Indian rupees 492 10% (47) 10% 46 Total 3,491 (2,879) (1,279) The following sensitivity analysis includes costs incurred in foreign currencies during the year ended December 31, 2018 and adjusts theirtranslation for the year ended December 31, 2018 for changes in U.S. dollars against the relevant foreign currencies. Gain/(loss) Account Currency Amount % Increase Amount % Decrease Amount Costs Argentine pesos (127,599) 30% 29,446 10% (12,760) Colombian pesos (69,944) 10% 6,359 10% (6,994) Indian rupees (20,533) 10% 1,867 10% (2,053) Total (218,076) 37,672 (21,807) The estimated effect in net income for the year ended December 31, 2018 due to a 30% increase in the U.S. dollar against the Argentine peso is again of $26.0 million and such effect due to a 10% decrease in the U.S. dollar against the Argentine peso is a loss of $13.3 million. Depreciation of the Argentine Peso During 2018, the Argentine peso experienced a 102.2% devaluation from 18.60 Argentine peso per U.S. dollar to 37.60 Argentine peso per U.S.dollar. As explained in note 28.9.4 to our audited consolidated financial statements, the Argentine's subsidiaries entered into foreign exchange forward andfuture contracts in order to mitigate the risk of fluctuations in the foreign exchange rate and reduce the impact in costs and expenses. 163 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. During 2017 and 2016, the Argentine peso experienced a 17% and a 14% devaluation, respectively, from 15.84 and 13.910 Argentine peso per U.S.dollar to 18.60 and 15.84 Argentine peso per U.S. dollar, respectively. We periodically evaluate the need for hedging strategies with our board of directors, including the use of such instruments to mitigate the effect offoreign exchange rate fluctuations. During the year ended December 31, 2018, our principal Argentine operating subsidiaries, Sistemas Globales S.A. andIAFH Global S.A., entered into foreign exchange forward contracts to reduce their risk of exposure to fluctuations in foreign currency. As of December 31,2018 and 2017, the foreign exchange forward contracts were recognized, according to IFRS 9. We may in the future, as circumstances warrant, decide to enterinto derivative transactions to reduce our exposure to appreciation or depreciation in the value of certain foreign currencies. Wage Inflation Risk Argentina has experienced significant levels of inflation in recent years. In November 2015, the INDEC suspended the publication of the CPI.According to the most recent publicly available information based on data from the Province of San Luis, the CPI grew by 31.4% in 2016. According to themost recent publicly available information based on data from the City of Buenos Aires, the CPI grew by 41.0% in 2016. After implementing certainmethodological reforms and adjusting certain macroeconomic statistics based of these reforms, in June 2016 the INDEC resumed its publication of the CPI.According to the INDEC, Argentina's rate of inflation for May, June, July, August, September, October, November and December 2016 was 4.2%, 3.2%, 2.2%,0.2%, 1.3%, 2.6%, 1.8% and 1.4%, respectively, 24.8% in 2017 and 47.6% in 2018, based on the CPI. See "Key Information — Risk Factors — Risks Relatedto Operating in Latin America — Argentina — Our results of operations may be adversely affected by high and possibly increasing inflation in Argentina."and "Key Information — Risk Factors — Risks Related to Operating in Latin America — Argentina — The credibility of several Argentine economic indexeshas been called into question, which may lead to a lack of confidence in the Argentine economy and may in turn limit our ability to access the credit andcapital markets." The impact of inflation on our salary costs, or wage inflation, and thus on our statement of profit or loss and other comprehensive incomevaries depending on the fluctuation in exchange rates between the Argentine peso and the U.S. dollar. In an environment where the Argentine peso isweakening against the U.S. dollar, the impact of wage inflation will be partially offset, whereas in an environment where the Argentine peso is strengtheningagainst the U.S. dollar, the impact of wage inflation will be increased. As of December 31, 2018, approximately 34.1% of our employees were based inArgentina, where wages can be influenced by current inflation rates. Assuming a constant exchange rate and no ability to increase prices, for every 10.0%increase in wage inflation in Argentina we would experience an estimated decrease of approximately $6.8 million in net income for the year. ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES. A. Debt Securities Not applicable. B. Warrants and Rights Not applicable. C. Other Securities Not applicable. D. American Depositary Shares Not applicable. 164 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. PART II. ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES. Not applicable. ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS. Not applicable. ITEM 15. CONTROLS AND PROCEDURES. Evaluation of Disclosure Controls and Procedures a) Disclosure Controls and Procedures As of December 31, 2018, our management, with the participation of the Chief Executive Officer and Chief Financial Officer, conducted anevaluation pursuant to Rule 13a-15 promulgated under the Securities Exchange Act of 1934, of the effectiveness of our disclosure controls and procedures.There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and thecircumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonableassurance of achieving their control objectives. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer concluded that Company's disclosure controls and procedureswere effective as of December 31, 2018. b) Management's Annual Report on Internal Control over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and15d-15(f) under the Securities Exchange Act of 1934. Our internal control over financial reporting is a process designed under the supervision of our ChiefExecutive Officer and Chief Financial Officer that: (i) pertains to the maintenance of records that, in reasonable detail, accurately and fairly reflect thetransactions and dispositions of the Company's assets; (ii) provides reasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements for external reporting in accordance with generally accepted accounting principles, and that receipts and expenditures are being madeonly in accordance with authorization of our management and directors; and (iii) provides reasonable assurance regarding prevention or timely detection ofunauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of anyevaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degreeof compliance with the policies or procedure may deteriorate. Our management, with the participation of our Chief Executive Officer and Chief FinancialOfficer, has assessed the effectiveness of our internal control over financial reporting as of December 31, 2018. In making this assessment, our managementused the criteria established in "Internal Control — Integrated Framework (2013)" issued by the Committee of Sponsoring Organizations of the TreadwayCommission ("COSO"). As a result of this assessment, our management has determined that our internal control over financial reporting was effective as ofDecember 31, 2018. Our management has excluded Small Footprint, which were acquired on October 15, 2018, from its assessment of internal control over financialreporting as of December 31, 2018. The financial statements of this entity constitute in aggregate 0.1% of our total consolidated assets and 0.4% of relatedconsolidated revenues for the year ended December 31, 2018. 165 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. c) Attestation Report of the Registered Public Accounting Firm The effectiveness of our internal control over financial reporting as of December 31, 2018 has been audited by Deloitte & Co. S.A., an independentregistered public accounting firm, as stated in their report which is included below: Deloitte & Co. S.A.Florida 234, 5° pisoC1005AAFCiudad Autónomade Buenos AiresArgentina Tel.: (+54-11) 4320-2700Fax: (+54-11) 4325-8081/4326-7340www.deloitte.com/ar REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders and Board of Directors of Globant S.A. Opinion on Internal Control over Financial Reporting We have audited the internal control over financial reporting of Globant S.A. and subsidiaries (the “Company”) as of December 31, 2018, based on criteriaestablished in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Inour opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018, based on criteriaestablished in Internal Control - Integrated Framework (2013) issued by COSO. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidatedfinancial statements as of and for the year ended December 31, 2018, of the Company and our report dated March 22, 2019, expressed an unqualified opinionon those financial statements. As described in Management’s Annual Report on Internal Control over Financial Reporting, management excluded from its assessment the internal controlover financial reporting at Small Footprint S.R.L., which was acquired on October 15, 2018 and whose financial statements constitute in aggregate 0.1% and0.4% of net total assets and revenues, respectively of the consolidated financial statement amounts as of and for the year ended December 31, 2018.Accordingly, our audit did not include the internal control over financial reporting at Small Footprint S.R.L. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness ofinternal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Ourresponsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firmregistered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and theapplicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining anunderstanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. Webelieve that our audit provides a reasonable basis for our opinion. 166 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance with International Financial Reporting Standards (“IFRS”) as issued by theInternational Accounting Standard Board (“IASB”). A company’s internal control over financial reporting includes those policies and procedures that (1)pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2)provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with IFRS, and thatreceipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that couldhave a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation ofeffectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliancewith the policies or procedures may deteriorate. /s/ Deloitte & Co. S.A. Autonomous City of Buenos Aires, Argentina March 22, 2019 Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, andtheir related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does notprovide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.Deloitte Touche Tomatsu Limited is a private Company limited by guarantee incorporated in England & Wales under Company number 07271800, and itsregistered office is Hill House, 1 Little new Street, London, EC4a, 3TR, United Kingdom. d) Changes in internal control over financial reporting As required by Rule 13a-15(d), under the Securities Exchange Act of 1934, as amended, our management, including our Chief Executive Officer andChief Financial Officer, conducted an evaluation of our internal control over financial reporting to determine whether any change occurred during the periodcovered since the last annual report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.Based on this evaluation, it has been determined that there has been no change during the period covered by this annual report that has materially affected, oris reasonably likely to materially affect, our internal control over financial reporting. ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT. See “Directors, Senior Management and Employees—Board Practices—Board Committees—Audit Committee.” Our Board of Directors hasdetermined that Mario Vázquez qualifies as an “audit committee financial expert” under applicable SEC rules. ITEM 16B. CODE OF ETHICS. Effective as of July 23, 2014, we adopted a code of business conduct and ethics which sets the guidelines and principles necessary for promotingand assuring good behavior within the organization. A copy of that code is available on our website at investors.globant.com/code-of-ethics. Anyamendments to such code will be disclosed on our website. 167 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES. The following table provides information on the aggregate fees billed by our principal accountants, Deloitte & Co. S.A. and affiliates, classified bytype of service rendered for the periods indicated, in thousands of dollars: 2018 2017 ($ in thousands) Audit Fees (1) 1,137 928 Audit Related Fees (2) 133 6 Others (3) — 19 Total 1,270 953 (1)"Audit Fees" includes fees billed for professional services rendered by the principal accountant in connection with the audit of the annual financialstatements, certain procedures regarding our quarterly financial results, services in connection with statutory and regulatory filings. (2)“Audit Related Fees” includes fees billed for professional services rendered by the principal accountant and not included under the prior category. Theseservices include, among others, due diligence related to mergers and acquisitions, and fees relating to the issuance of comfort letters and other proceduresin connection with our offering of securities. (3)“Others” includes other fees billed that do not apply to the other type of classifications included above. Audit Committee Approval Policies and Procedure In accordance with the audit committee's charter, all fees and retention terms relating to audit and non-audit services performed by our independentauditors must be pre-approved by the audit committee. The audit committee makes annual recommendations to the general meeting of shareholders of thecompany regarding the appointment, replacement, base compensation, evaluation and oversight of the work of the independent auditors to be retained toaudit the annual financial statements of the company and review the quarterly financial statements of the company. The audit committee oversees the relationship with the independent auditors, including discussing with the auditors the planning and staffing of theaudit and the nature and rigor of the audit process, receiving and reviewing audit reports, reviewing with the auditors any problems or difficulties the auditorsmay have encountered in carrying out their responsibilities and any board of directors’ letters provided by the auditors and the company’s response to suchletters, and providing the auditors full access to the audit committee and the board of directors to report on all appropriate matters. The audit committee provides oversight of the company’s auditing, accounting and financial reporting principles, policies, controls, procedures andpractices, and reviews significant changes to the foregoing as suggested by the independent auditors, internal auditors or the board of directors. The audit committee approved all of the services described above and determined that the provision of such services is compatible with maintainingthe independence of Deloitte & Co. S.A. and affiliates. ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES. Not applicable. ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS. Not applicable. 168 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT. Not applicable. ITEM 16G. CORPORATE GOVERNANCE. Corporate Governance Practices Our corporate governance practices are governed by Luxembourg law (particularly the law of August 10th, 1915 on commercial companies asamended) and our articles of association. The Ten Principles of Corporate Governance of the Luxembourg Stock Exchange (the "Ten Principles") include: (1) mandatory principles, (2)"comply or explain" recommendations and (3) non-binding guidelines. As of the date of this Annual Report, we comply with the mandatory principles in allrespects. In certain instances, we have elected to not comply with certain of the recommendations because we comply with similar corporate governance rulesof the NYSE as further set out in the following paragraphs, or, other procedures which we have determined to be sufficient. As a Luxembourg company listed on the NYSE, we are not required to comply with all of the corporate governance listing standards of the NYSE forU.S. listed companies. We, however, believe that our corporate governance practices meet or exceed, in all material respects, the corporate governancestandards that are generally required by the NYSE for U.S. listed companies. Below is a summary of the significant ways that our corporate governancepractices differ from the corporate governance standards required for listed U.S. companies by the NYSE (provided that our corporate governance practicesmay differ in non-material ways from the standards required by the NYSE that are not detailed here). Majority of Independent Directors Under NYSE standards, U.S. listed companies must have a majority of independent directors. There is no legal obligation under Luxembourg law tohave a majority of independent directors on the board of directors; however, the Ten Principles recommend that the board of directors includes an appropriatenumber of independent directors. Non-management Directors’ Meetings Under NYSE standards, non-management directors must meet at regularly scheduled executive sessions without management present and, if suchgroup includes directors who are not independent, a meeting should be scheduled once per year including only independent directors. Luxembourg law doesnot require holding of such meetings. For additional information, see “Directors, Senior Management and Employees—Directors and Senior Management.” Audit Committee Under NYSE standards, listed U.S. companies are required to have an audit committee composed of independent directors that satisfies therequirements of Rule 10A-3 promulgated under the Exchange Act of 1934. Luxembourg law also provides for an audit committee and related rules. Ourarticles of association provide that the board of directors may set up an audit committee. The board of directors has set up an Audit Committee and hasappointed Messrs. Odeen and Vázquez, and Ms. Rottenberg, with Mr. Vázquez serving as the chairman of our audit committee. Each of Messrs. Odeen andVázquez, and Ms. Rottenberg satisfies the “independence” requirements within the meaning of Section 303A of the corporate governance rules of the NYSEas well as under Rule 10A-3 under the Exchange Act. For additional information, see “Directors, Senior Management and Employees—Board Practices”. 169 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Under NYSE standards, all audit committee members of listed U.S. companies are required to be financially literate or must acquire such financialknowledge within a reasonable period and at least one of its members shall have experience in accounting or financial administration. In addition, if amember of the audit committee is simultaneously a member of the audit committee of more than three public companies, and the listed company does notlimit the number of audit committees on which its members may serve, then in each case the board must determine whether the simultaneous service wouldprevent such member from effectively serving on the listed company’s audit committee and shall publicly disclose its decision. Under Luxembourg law, atleast one member of the audit committee must be financially literate and the committee members as a whole shall have competence relevant to the sector inwhich the company is operating. Standards for Evaluating Director Independence Under NYSE standards, the board is required, on a case by case basis, to express an opinion with regard to the independence or lack of independenceof each individual director. Neither Luxembourg law nor our articles of association require the board to express such an opinion; however, to be consideredindependent under the so called “Ten Principles” of the Luxembourg Stock Exchange, a director must not be or have been in the previous five years, anexecutive or managing director or an employee; not receive, or have received, significant additional remuneration from the company or an associatedcompany apart from a fee received as non–executive or supervisory director (including share option or any other performance-related pay scheme), must notbe, or have been within the last three years, a partner or employee of the present or former external auditor of the company or an associated company, norhave any significant business relationship with the company, close family relationship with any executive manager or any other relationship with thecompany, its controlling shareholders or executive managers which is liable to impair the independence of the director's judgment. Finally, to be consideredindependent under the Ten Principles, a director must not have served on the board as a non-executive director for more than 12 years. Audit Committee Responsibilities The NYSE requires certain matters to be set forth in the audit committee charter of U.S. listed companies. Our audit committee charter provides formany of the responsibilities that are expected from such bodies under the NYSE standard; however, the charter does not contain all such responsibilities,including provisions related to setting hiring policies for employees or former employees of independent auditors. Corporate Governance and Nominating Committee The NYSE requires that a listed U.S. company has a corporate governance and nominating committee of independent directors and a committeecharter specifying the purpose, duties and evaluation procedures of the committee. The board of directors has set up corporate governance and nominating committee and has appointed Messrs. Galperin, Odeen and Vázquez, withMr. Vázquez serving as chairman of our corporate governance and nominating committee. Each of Messrs. Galperin, Vázquez and Odeen satisfies the“independence” requirements within the meaning of Section 303A of the corporate governance rules of the NYSE. For additional information, see “Directors,Senior Management and Employees— Board Practices”. Compensation Committee The NYSE requires that a listed U.S. company have a compensation committee of independent directors and a committee charter specifying thepurpose, duties and evaluation procedures of the committee. The current members of our compensation committee are Messrs. Vázquez, Odeen and Galperin, with Mr. Vázquez serving as chairman. Each ofMessrs. Vázquez, Odeen and Galperin satisfies the “independence” requirements within the meaning of Section 303A of the corporate governance rules of theNYSE. For additional information, see “Directors, Senior Management and Employees—Board Practices”. 170 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Shareholder Voting on Equity Compensation Plans Under NYSE standards, shareholders of U.S. listed companies must be given the opportunity to vote on equity compensation plans and materialrevisions thereto, except for employment inducement awards, certain grants, plans and amendments in the context of mergers and acquisitions, and certainspecific types of plans. Neither Luxembourg corporate law nor our articles of incorporation require shareholder approval of equity based compensation plans.Luxembourg law only requires approval of the board of directors for the adoption of equity based compensation plans. The Ten Principles recommend that the criteria for compensation of the executive management in whichever form be subject to the approval of theshareholders. However, as permitted by the Ten Principles, we have decided that the approval of our compensation committee, which is comprised ofindependent members, is sufficient to set the compensation criteria for our executive management team and that it is not necessary to seek approval from ourshareholders for such matters. We believe that the members of our compensation committee have a strong understanding of the achievements and failures ofeach executive because the compensation committee monitors the performance of executive management as part of the responsibilities delegated to it by ourboard of directors and shareholders. Code of Business Conduct and Ethics Under NYSE standards, listed companies must adopt and disclose a code of business conduct and ethics for directors, officers and employees, andpromptly disclose any waivers of the code for directors or executive officers. Effective as of July 23, 2014 we adopted a code of business conduct and ethicsapplicable to our principal executive, financial and accounting officers and all persons performing similar functions. A copy of that code is available on ourwebsite at www.globant.com. Chief Executive Officer Certification A chief executive officer of a U.S. company listed on NYSE must annually certify that he or she is not aware of any violation by the company ofNYSE corporate governance standards. In accordance with NYSE rules applicable to foreign private issuers, our chief executive officer is not required toprovide NYSE with this annual compliance certification. However, in accordance with NYSE rules applicable to all listed companies, our chief executiveofficer must promptly notify NYSE in writing after any of our executive officers becomes aware of any noncompliance with any applicable provision ofNYSE's corporate governance standards. In addition, we must submit an executed written affirmation annually and an interim written affirmation each time achange occurs to the board or the audit committee. ITEM 16H. MINE SAFETY DISCLOSURE. Not applicable. 171 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. PART III. ITEM 17. FINANCIAL STATEMENTS. We have elected to provide financial statements pursuant to Item 18. ITEM 18. FINANCIAL STATEMENTS. Our Consolidated Financial Statements are included at the end of this annual report. ITEM 19. EXHIBITS. The following exhibits are filed or incorporated by reference as part of this annual report: ExhibitNo. Description1.1 Amended and Restated Articles of Association, dated January 22, 20192.1 Form of Registration Rights Agreement; incorporated by reference to Exhibit 10.1 to the Registrant's Registration Statement on Form F-1(SEC File No. 333-190841), filed with the SEC on July 15, 20144.1 Lease, dated May 31, 2010, by and between Laminar S.A. de Inversiones Inmobiliarias and Sistemas Globales S.A.; incorporated by referenceto Exhibit 10.3 to the Registrant's Registration Statement on Form F-1 (SEC File No. 333-190841), filed with the SEC on August 27, 20134.2 Globant S.A. 2014 Equity Incentive Plan; incorporated by reference to Exhibit 10.4 to the Registrant's Registration Statement on Form F-1(SEC File No. 333-190841), filed with the SEC on May 28, 20144.3 Amendment No. 1 to the Globant S.A. 2014 Equity Incentive Plan; incorporated by reference to Exhibit 99.2 to the Registrant's RegistrationStatement on Form S-8 (SEC File No. 333-211835), filed with the SEC on June 3, 20164.4 Form of Nonstatutory Stock Option Notice; incorporated by reference to Exhibit 10.5 to the Registrant's Registration Statement on Form F-1(SEC File No. 333-190841), filed with the SEC on May 28, 20144.5 Form of Nonstatutory Stock Option Notice — International; incorporated by reference to Exhibit 10.6 to the Registrant's RegistrationStatement on Form F-1 (SEC File No. 333-190841), filed with the SEC on May 28, 20144.6 Equityholders Additional Agreement, dated May 7, 2012, by and among Paldwick S.A., Martín Migoya, Martín Gonzalo Umaran, NéstorAugusto Nocetti, Guibert Andrés Englebienne, Riverwood Capital LLC, RW Holdings S.à. r.l., ITO Holdings S.à. r.l., Endeavor Global, Inc.and IT Outsourcing S.L.; incorporated by reference to Exhibit 10.7 to the Registrant's Registration Statement on Form F-1 (SEC File No. 333-190841), filed with the SEC on May 28, 20144.7 Credit Agreement, dated August 3, 2017, by and among Globant, LLC, as borrower, certain financial institutions party thereto, as lenders, andHSBC Bank USA, N.A., as administrative agent; incorporated by reference to Exhibit 4.7 to the Registrant's Annual Report on Form 20-F(SEC File No. 001-36535), filed with the SEC on April 13, 20184.8 Guaranty, dated August 3, 2017, made by Globant S.A. (Luxembourg) in favor of HSBC Bank USA, N.A., as administrative agent;incorporated by reference to Exhibit 4.8 to the Registrant's Annual Report on Form 20-F (SEC File No. 001-36535), filed with the SEC onApril 13, 20184.9 Guaranty, dated August 3, 2017, made by Globant, S.A. (Spain) in favor of HSBC Bank USA, N.A., as administrative agent; incorporated byreference to Exhibit 4.9 to the Registrant's Annual Report on Form 20-F (SEC File No. 001-36535), filed with the SEC on April 13, 20184.10 Security Agreement, dated August 3, 2017, by and between Globant, LLC, as grantor, and HSBC Bank USA, N.A., as administrative agent;incorporated by reference to Exhibit 4.10 to the Registrant's Annual Report on Form 20-F (SEC File No. 001-36535), filed with the SEC onApril 13, 20184.11 Amended and Restated Credit Agreement, dated November 1, 2018, by and among Globant, LLC, as borrower, certain financial institutionsparty thereto, as lenders, and HSBC Bank USA, N.A., as administrative agent, issuing bank and swingline lender; incorporated by reference toExhibit 99.1 to the Registrant's Report of Foreign Private Issuer on Form 6-K (SEC File No. 001-36535), furnished to the SEC on November 2,2018.4.12 Share Purchase Agreement, dated January 17, 2019, by and among the sellers identified therein and Globant España S.A. (sociedadunipersonal), as purchaser.8.1 List of Subsidiaries12.1 Certification of Martín Migoya, Chief Executive Officer of Globant S.A., pursuant to Section 302 of the Sarbanes Oxley Act of 200212.2 Certification of Juan Urthiague, Chief Financial Officer of Globant, S.A., pursuant to Section 302 of the Sarbanes Oxley Act of 200213.1 Certification of Martín Migoya, Chief Executive Officer of Globant S.A., pursuant to Section 906 of the Sarbanes Oxley Act of 200213.2 Certification of Juan Urthiague, Chief Financial Officer of Globant, S.A., pursuant to Section 906 of the Sarbanes Oxley Act of 200215.1 Consent of Deloitte & Co. S.A.101.INS XBRL Instance Document101.SCH XBRL Taxonomy Extension Schema Document101.CAL XBRL Taxonomy Extension Calculation Linkbase Document101.DEF XBRL Taxonomy Extension Definition Linkbase Document101.LAB XBRL Taxonomy Extension Label Linkbase Document101.PRE XBRL Taxonomy Extension Presentation Linkbase Document 172 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. SIGNATURE The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersignedto sign this annual report on its behalf. Date: March 29, 2019 GLOBANT S.A. By:/s/ Juan Ignacio Urthiague Name:Juan Ignacio Urthiague Title:Chief Financial Officer 173 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A.INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Consolidated Financial Statements as of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018 Report of Independent Registered Public Accounting FirmF-3Consolidated Statements of Profit or Loss and Other Comprehensive Income for the Years ended December 31, 2018, 2017 and 2016F-4Consolidated Statements of Financial Position as of December 31, 2018 and 2017F-6Consolidated Statements of Changes in Equity for the Years ended December 31, 2018, 2017 and 2016F-8Consolidated Statements of Cash Flows for the Years ended December 31, 2018, 2017 and 2016F-10Notes to the Consolidated Financial StatementsF-12 F-1 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Globant S.A. Consolidated Financial Statements as ofDecember 31, 2018 and 2017 and for each ofthe three years in the period ended December31, 2018 F-2 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Deloitte & Co. S.A.Florida 234, 5° pisoC1005AAFCiudad Autónomade Buenos AiresArgentina Tel.: (+54-11) 4320-2700Fax: (+54-11) 4325-8081/4326-7340www.deloitte.com/ar Page 1 of 1 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders and the Board of Directors of Globant S.A. Opinion on the Financial Statements We have audited the accompanying consolidated statements of financial position of Globant S.A. and subsidiaries (the "Company") as of December 31, 2018and 2017, the related consolidated statements of profit or loss and other comprehensive income, changes in equity and cash flows, for each of the three yearsin the period ended December 31, 2018, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statementspresent fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and the results of its operations and its cashflows for each of the three years in the period ended December 31, 2018, in conformity with International Financial Reporting Standards as issued by theInternational Accounting Standards Board. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company'sinternal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued bythe Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 22, 2019, expressed an unqualified opinion on theCompany's internal control over financial reporting. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financialstatements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Companyin accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing proceduresto assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also includedevaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financialstatements. We believe that our audits provide a reasonable basis for our opinion. /s/ Deloitte & Co. S.A. Autonomous City of Buenos Aires, Argentina March 22, 2019 We have served as the Company's auditor since 2009. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, andtheir related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does notprovide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms. Deloitte Touche Tomatsu Limited is a private Company limited by guarantee incorporated in England & Wales under Company number 07271800, and itsregistered office is Hill House, 1 Little new Street, London, EC4a, 3TR, United Kingdom. F-3 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A.CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31,2018, 2017 AND 2016(in thousands of U.S. dollars, except per share amounts) For the year ended December 31, Notes 2018 2017 2016 Revenues (1) 5 522,310 413,439 322,856 Cost of revenues (2) (4) 6.1 (318,554) (263,171) (191,395)Gross profit 203,756 150,268 131,461 Selling, general and administrative expenses (3) (4) 6.2 (133,187) (110,813) (80,961)Net impairment losses on financial assets (5) (3,469) (1,581) (928)Other operating expense, net (6) (306) (4,708) — Profit from operations 66,794 33,166 49,572 Finance income 7 11,418 7,956 16,215 Finance expense 7 (16,968) (11,036) (19,227)Finance expense, net (5,550) (3,080) (3,012) Other income, net (7) 6,220 8,458 3,629 Profit before income tax 67,464 38,544 50,189 Income tax 8.1 (15,868) (8,081) (14,327)Net income for the year 51,596 30,463 35,862 Other comprehensive income (loss) Items that may be reclassified subsequently to profit and loss: - Exchange differences on translating foreign operations (871) (265) 1,103 - Net change in fair value on financial assets measured at FVOCI (12) (27) (52)Total comprehensive income for the year 50,713 30,171 36,913 Net income attributable to: Owners of the Company 51,677 30,539 35,876 Non-controlling interest (81) (76) (14)Net income for the year 51,596 30,463 35,862 Total comprehensive income for the year attributable to: Owners of the Company 50,794 30,247 36,927 Non-controlling interest (81) (76) (14)Total comprehensive income for the year 50,713 30,171 36,913 F-4 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A.CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31,2018, 2017 AND 2016(in thousands of U.S. dollars, except per share amounts) For the year ended December 31, Notes 2018 2017 2016 Earnings per share Basic 9 1.45 0.87 1.04 Diluted 9 1.41 0.84 1.01 Weighted average of outstanding shares (in thousands) Basic 9 35,746 34,919 34,402 Diluted 9 36,685 36,094 35,413 (1)Includes transactions with related parties for 5,937, 5,590 and 6,462 for 2018, 2017 and 2016, respectively. See note 22.1.(2)Includes depreciation and amortization expense of 4,022, 4,339 and 4,281 for 2018, 2017 and 2016, respectively. See note 6.1.(3)Includes depreciation and amortization expense of 16,521, 11,789 and 6,637 for 2018, 2017 and 2016, respectively. See note 6.2.(4)Includes share-based compensation expense of 4,248, 5,666 and 917 under cost of revenues; and 8,665, 8,798 and 2,703 under selling, general andadministrative expenses for 2018, 2017 and 2016, respectively. See note 6.(5)Includes a loss of 3,421, a gain of 5 and a loss of 928 on impairment of trade receivables for 2018, 2017 and 2016, respectively (see note 11). Includesan impairment of tax credits of 48 and 1,586 for 2018 and 2017, respectively (see note 4.4).(6)Includes an impairment of intangibles assets of 306 (note 4.7) and 4,708 (note 4.11) for 2018 and 2017, respectively.(7)Includes as of December 31, 2018, 2017 and 2016 a gain of 6,700, 6,735 and 418 on remeasurement of the contingent consideration of Pointsource,Clarice, L4, WAE and Ratio explained in note 28.9.1 and the gain of 1,611, 1,727 and 2,981 related to the remeasurement at fair value of the call andput option over non-controlling interest explained in note 28.9.2, and the derecognition of the call option over non-controlling interest of 455explained in note 24.3. In 2018 includes the loss of 1,038 related to the settlement agreed with WAE former owners (note 28.9.1) In 2016 includes thegain of 225 related to the bargain business combination of Difier S.A. explained in note 24.5. In 2018 includes the impairment of the investment inCollokia of 800 explained in note 10.2. The accompanying notes 1 to 33 are an integral part of these consolidated financial statements F-5 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A.CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF DECEMBER 31, 2018 AND 2017(in thousands of U.S. dollars) As of December 31, Notes 2018 2017 ASSETS Current assets Cash and cash equivalents 77,606 52,525 Investments 10.1 8,635 8,147 Trade receivables (1) 11 110,898 80,078 Other receivables 12 15,341 14,357 Other financial assets (2) 550 873 Total current assets 213,030 155,980 Non-current assets Investments 10.1 527 — Other receivables 12 34,197 31,736 Deferred tax assets 8.2 16,916 13,186 Investment in associates 10.2 4,000 1,550 Other financial assets (3) 345 555 Property and equipment 13 51,460 43,879 Intangible assets 14 11,778 11,365 Goodwill 15 104,846 98,926 Total non-current assets 224,069 201,197 TOTAL ASSETS 437,099 357,177 LIABILITIES Current liabilities Trade payables 16 17,578 11,640 Payroll and social security taxes payable 17 58,535 40,472 Borrowings 18 — 6,011 Other financial liabilities (4) 9,347 10,664 Tax liabilities 19 7,399 5,253 Other liabilities 44 20 Total current liabilities 92,903 74,060 Non-current liabilities Other financial liabilities 24.10 3,418 18,574 Provisions for contingencies 20 2,862 1,179 Total non-current liabilities 6,280 19,753 TOTAL LIABILITIES 99,183 93,813 Capital and reserves Issued capital 43,158 42,271 Additional paid-in capital 109,559 86,728 Other reserves (2,136) (1,253)Retained earnings 187,335 135,658 Total equity attributable to owners of the Company 337,916 263,404 Non-controlling interests — (40)Total equity 337,916 263,364 TOTAL EQUITY AND LIABILITIES 437,099 357,177 (1)Includes balances due from related parties of 993 and 463 as of December 31, 2018 and 2017, respectively. See note 22.1.(2)Includes convertible notes of 106 (note 22.2) as of December 31, 2018, the fair value of foreign exchange forward contracts of 44 and 73 as ofDecember 31, 2018 and 2017, respectively (note 28.9.4) and a financial asset related to the acquisition of Clarice of 400 and 800 as of December 31,2018 and 2017, respectively (note 24.2). F-6 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A.CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF DECEMBER 31, 2018 AND 2017(in thousands of U.S. dollars) (3)Includes 345 of guarantee payments related to the future lease of a property under construction as of December 31, 2018. Includes convertible notes of100 (note 22.2) and the fair value of the call option on minority interest of 455 as of December 31, 2017 (note 24.3).(4)Includes other financial liabilities related to business combinations of 9,335 and 10,664 as of December 31, 2018 and 2017, respectively (note 24.10)and the fair value of foreign exchange forward contracts of 12 as of December 31, 2018 (note 28.9.4). The accompanying notes 1 to 33 are an integral part of these consolidated financial statements F-7 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A.CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016(in thousands of U.S. dollars except number of shares issued) Number ofSharesIssued (1) Issuedcapital Additionalpaid-incapital Retainedearnings Foreigncurrencytranslationreserve Investmentrevaluationreserve Attributableto owners ofthe Parent Non-controllinginterests Total Balance at January 1, 2016 34,208,406 41,050 51,854 69,243 (2,064) 52 160,135 50 160,185 Issuance of shares under share-basedcompensation plan (see note 30.1) 258,915 311 1,867 — — — 2,178 — 2,178 Issuance of shares for payments of Huddleminority interest (note 30.1) 11,213 13 292 — — — 305 — 305 Issuance of shares under subscriptionagreement (see note 30.1) 169,109 202 6,218 — — — 6,420 — 6,420 Share-based compensation plan (see note 23) — — 2,559 — — — 2,559 — 2,559 Other comprehensive income (loss) for theyear — — — — 1,103 (52) 1,051 — 1,051 Net income for the year — — — 35,876 — — 35,876 (14) 35,862 Balance at December 31, 2016 34,647,643 41,576 62,790 105,119 (961) — 208,524 36 208,560 Number ofSharesIssued (1) Issuedcapital Additionalpaid-incapital Retainedearnings Foreigncurrencytranslationreserve Investmentrevaluationreserve Attributableto owners ofthe Parent Non-controllinginterests Total Issuance of shares under share-basedcompensation plan (see note 30.1) 425,640 511 7,926 — — — 8,437 — 8,437 Issuance of shares under subscriptionagreement (see note 30.1) 153,481 184 5,511 — — — 5,695 — 5,695 Share-based compensation plan (see note 23) — — 10,501 — — — 10,501 — 10,501 Other comprehensive income for the year — — — — (265) (27) (292) — (292)Net income for the year — — — 30,539 — — 30,539 (76) 30,463 Balance at December 31, 2017 35,226,764 42,271 86,728 135,658 (1,226) (27) 263,404 (40) 263,364 F-8 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A.CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016(in thousands of U.S. dollars except number of shares issued) Number ofSharesIssued (1) Issuedcapital Additionalpaid-incapital Retainedearnings Foreigncurrencytranslationreserve Investmentrevaluationreserve Attributableto owners ofthe Parent Non-controllinginterests Total Balance at January 1, 2018 35,226,764 42,271 86,728 135,658 (1,226) (27) 263,404 (40) 263,364 Issuance of shares under share-basedcompensation plan (see note 30.1) 674,901 810 8,275 — — — 9,085 — 9,085 Issuance of shares under subscriptionagreement (see note 30.1) 63,997 77 3,140 — — — 3,217 — 3,217 Share-based compensation plan (see note23) — — 11,537 — — — 11,537 — 11,537 Other comprehensive income for the year — — — — (871) (12) (883) — (883)Acquisition of non-controlling interest (seenote 24) — — (121) — — — (121) 121 — Net income for the year — — — 51,677 — — 51,677 (81) 51,596 Balance at December 31, 2018 35,965,662 43,158 109,559 187,335 (2,097) (39) 337,916 — 337,916 (1) All shares are issued, authorized and fully paid. Each share is issued at a nominal value of $1.20 per share and entitles to one vote. The accompanying notes 1 to 33 are an integral part of these consolidated financial statements F-9 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A.CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016(in thousands of U.S. dollars) For the year ended December 31, 2018 2017 2016 Cash flows from operating activities Net income for the year 51,596 30,463 35,862 Adjustments to reconcile net income for the year to net cash flows from operating activities: Share-based compensation expense (note 23) 10,551 12,865 3,620 Current income tax (note 8.1) 23,324 14,053 15,057 Deferred income tax (note 8.1) (7,456) (5,972) (730)Depreciation of property and equipment 11,230 9,053 6,290 Amortization of intangible assets 9,313 7,075 4,628 Impairment of intangible assets (note 4.7 and 4.11) 306 4,708 — Net impairment losses on financial assets 3,469 1,581 928 Impairment of investments in associates (note 10.1) 800 — — Allowance for claims and lawsuits (note 20) 2,070 527 999 Gain on remeasurement of contingent consideration (note 28.9.1) (6,700) (6,735) (418)Gain from bargain business combination (note 24.5) — — (225)Net gain on remeasurement of valuation of call and put option over non-controlling interestand on derecognition of the call option (note 28.9.2) (1,156) (1,726) (2,981)Accrued interest 270 404 757 Interest received 401 — — Net gain arising on financial assets measured at FVPL (note 7) (2,763) (303) (653)Net gain arising on financial assets measured at FVOCI (note 7) (258) (240) (6,325)Exchange differences 6,989 2,645 5,959 Changes in working capital: Net increase in trade receivables (36,356) (25,599) (5,847)Net (increase) decrease in other receivables (10,559) 1,240 (17,067)Net increase (decrease) in trade payables 2,479 4,341 (1,219)Net increase in payroll and social security taxes payable 21,885 7,576 3,316 Net increase (decrease) in tax liabilities 939 (700) (1,846)Net increase in other liabilities — — (9)Utilization of provision for contingencies (note 20) (222) (1,320) (400)Cash provided by operating activities 80,152 53,936 39,696 Income tax paid (12,955) (11,383) (8,216)Proceeds received from reimbursement of income tax — 436 — Net cash provided by operating activities 67,197 42,989 31,480 Cash flows from investing activities Acquisition of property and equipment (2) (19,171) (19,605) (17,660)Proceeds from disposals of property and equipment 149 468 50 Acquisition of intangible assets (3) (9,711) (8,447) (6,374)Proceeds (payments) related to forward and future contracts 2,382 (579) (1,126)Acquisition of investments measured at FVTPL (99,482) (137,788) (220,391)Proceeds from investments measured at FVTPL 103,083 140,144 222,759 Acquisition of investments measured at FVOCI (39,435) (13,824) (201,931)Proceeds from investments measured at FVOCI 35,340 13,176 219,924 Acquisition of investments measured at amortised cost (527) — — Guarantee payments (345) — — Payments to acquire investments in associates (3,250) (469) (500)Acquisition of business, net of cash (note 24) (1) (4,137) (19,149) (16,584)Payments of earn-outs related to acquisition of business (11,013) (11,461) (6,166)Net cash used in investing activities (46,117) (57,534) (27,999) F-10 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A.CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016(in thousands of U.S. dollars) For the year ended December 31, 2018 2017 2016 Cash flows from financing activities Proceeds from the issuance of shares under the share-based compensation plan (note 30.1) 7,040 5,296 1,863 Proceeds from subscription agreements (note 30.1) 3,217 5,695 6,420 Proceeds from borrowings (note 26) — 22,000 — Repayment of borrowings (note 26) (6,004) (16,198) (543)Convertible notes (note 22.2) — (100) Cash provided by financing activities 4,253 16,693 7,740 Interest paid (note 26) (159) (95) (41)Net cash provided by financing activities 4,094 16,598 7,699 Effect of exchange rate changes on cash and cash equivalents (93) (60) 2,632 Increase in cash and cash equivalents 25,081 1,993 13,812 Cash and cash equivalents at beginning of the year 52,525 50,532 36,720 Cash and cash equivalents at end of the year 77,606 52,525 50,532 (1) Cash paid for assets acquired and liabilities assumed in the acquisition of subsidiaries (note 24): Supplemental information Cash paid 4,328 21,300 19,525 Less: cash and cash equivalents acquired (191) (2,151) (2,941)Total consideration paid net of cash and cash equivalents acquired 4,137 19,149 16,584 (2)In 2018, 2017 and 2016, there were 4,316, 1,264 and 478 of acquisition of property and equipment financed with trade payables, respectively. In 2018,2017 and 2016, the Company paid 1,264, 478 and 26 related to property and equipment acquired in 2017, 2016 and 2015, respectively. Finally, in2018, 2017 and 2016 included 3,301, 2,861 and 2,198 of advances paid.(3)In 2018, 2017 and 2016 there were 217, 344 and 7 of acquisition of intangibles financed with trade payables, respectively. In 2018, 2017 and 2016, theCompany paid 344, 7 and 439 related to intangibles acquired in 2017, 2016 and 2015, respectively. The accompanying notes 1 to 33 are an integral part of these consolidated financial statements F-11 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) NOTE 1 – COMPANY OVERVIEW AND BASIS OF PRESENTATION Globant S.A. is a company organized in the Grand Duchy of Luxembourg, primarily engaged in building digital journeys that matter to millions of usersthrough its subsidiaries (hereinafter the “Company” or “Globant Lux” or “Globant Group”). The Company specializes in providing innovative softwaresolutions services by leveraging emerging technologies and trends. The Company's principal operating subsidiaries and countries of incorporation as of December 31, 2018 were the following: Sistemas UK Limited and We areLondon Limited in the United Kingdom, Globant LLC in the United States of America (the “U.S.”), Sistemas Globales S.A., IAFH Global S.A. and DynaflowsS.A. in Argentina, Sistemas Colombia S.A.S. in Colombia, Global Systems Outsourcing S.R.L. de C.V. in Mexico, Sistemas Globales Uruguay S.A. and DifierS.A. in Uruguay, Globant Brasil Consultoria Ltda. in Brazil; Sistemas Globales Chile Asesorías Limitada in Chile, Globant Peru S.A.C. in Peru, Globant IndiaPrivate Limited in India, Globant Bel LLC in Belarus, Small Footprint S.R.L. in Romania and Software Product Creation S.L. in Spain. The Globant Group provides services from development and delivery centers located in United States (San Francisco, New York, Seattle, Raleigh, Chicagoand Dallas), Argentina (Buenos Aires, Tandil, Rosario, Tucumán, Córdoba, Resistencia, Bahía Blanca, Mendoza, Mar del Plata and La Plata), Uruguay(Montevideo), Colombia (Bogotá and Medellín), Brazil (São Paulo), Peru (Lima), Chile (Santiago), México (México City), India (Pune and Bangalore), Spain(Madrid), Belarus (Minsk), Romania (Cluj) and United Kingdom (London) and it also has client management centers in United States (San Francisco, NewYork, Winston-Salem and Miami), Brazil (São Paulo), Colombia (Bogotá), Uruguay (Montevideo), Argentina (Buenos Aires) and the United Kingdom(London). The Company also has centers of software engineering talent and educational excellence, primarily across Latin America. Substantially all revenues are generated in the U.S. and United Kingdom through subsidiaries located in those countries. The Company´s workforce is mainlylocated in Latin America and to a lesser extent in India and U.S. The Company's registered office address is 37A Avenue J.F. Kennedy L-1855, Luxembourg. NOTE 2 – BASIS OF PREPARATION OF THESE CONSOLIDATED FINANCIAL STATEMENTS These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by theInternational Accounting Standards Board ("IASB"). These consolidated financial statements are presented in thousands of United States dollars ("U.S.dollars") and have been prepared under the historical cost convention except as disclosed in the accounting policies below. 2.1 – Application of new and revised International Financial Reporting Standards •Adoption of new and revised standards The Company has adopted all of the new and revised standards and interpretations issued by the IASB that are relevant to its operations and that aremandatorily effective at December 31, 2018. The impact of the new and revised standards and interpretations mentioned on these consolidated financialstatements is described as follows. F-12 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) The Company has initially adopted IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers from January 1, 2018. The impact ofthe adoption of other standards and interpretations issued by the IASB that are mandatorily effective at December 31, 2018 is not material and consequentlyis not described. IFRS 9 Financial Instruments IFRS 9 sets out requirements for recognizing and measuring financial assets, financial liabilities and some contracts to buy or sell non-financial items. Thisstandard replaces IAS 39 Financial instruments: Recognition and Measurement. IFRS 9 largely retains the existing requirements in IAS 39 for theclassification and measurement of financial liabilities. However, it eliminates the previous IAS 39 categories for financial assets of held to maturity, loans andreceivables and available for sale. The adoption of IFRS 9 has not had a significant effect on the Company's accounting policies related to financialliabilities. The impact of IFRS 9 on the classification and measurement of financial assets is set out below. Under IFRS 9, on initial recognition, a financial asset is classified as measured at: amortised cost; Fair Value through Other Comprehensive Income (FVOCI);or Fair Value through Profit or Loss (FVTPL). The classification of financial assets under IFRS 9 is generally based on the business model in which a financialasset is managed and its contractual cash flow characteristics. A financial asset is measured at amortised cost if both of the following conditions are met and is not designated as at FVTPL: 1) it is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and2) its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. A financial asset is measured at FVOCI if both of the following conditions are met and is not designated as at FVTPL: 1) it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and2) its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. All financial assets not classified as measured at amortised cost or FVOCI as described above, are measured at FVTPL. The following table explains the original measurement categories under IAS 39 and the new measurement categories under IFRS 9 for each class of theCompany's financial asset as at January 1, 2018. F-13 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) Original classificationunder IAS 39 New classificationunder IFRS 9Cash and cash equivalents Loans and receivables Amortised costTrade receivables Loans and receivables Amortised costOther receivables Loans and receivables Amortised costInvestments Mutual funds Held for trading FVTPLLEBACs (1) Available for sale FVOCIOther financial assets Foreign exchange forwards and future contracts Held for trading FVTPLFinancial assets related to business combinations FVTPL FVTPLConvertible notes Loans and receivables Amortised costCall option on minority interest FVTPL FVTPL (1)LEBACs were initially classified as held-to-maturity investments (HTM). Under IAS 39, HTM were measured at amortised cost using the effectiveinterest method, less any impairment. However, during December, 2015, the Company sold some of those LEBACs and consequently, changed theclassification of the remaining LEBACs to Available-for-sale investments, since it was not permitted to classify investments as held-to-maturity inaccordance with IAS 39. Changes in the carrying amount of AFS financial assets relating to changes in foreign currency rates, interest incomecalculated using the effective interest method were recognised in profit or loss. Other changes in the carrying amount of AFS financial assets wererecognized in other comprehensive income. Consequently, under IFRS 9 LEBACs continue to be measured on the same basis than it was under IAS39. All financial assets and financial liabilities continue to be measured on the same basis as is previously adopted under IAS 39. Additionally, IFRS 9 replaces the 'incurred loss' model in IAS 39, with an 'expected credit loss' model. The new impairment model applies to financial assetsmeasured at amortised cost, contract assets and debt investments at FVOCI, but not to investments in equity instruments. Under IFRS 9, credit losses arerecognised earlier than under IAS 39. The Company's financial assets that are subject to IFRS 9's new expected credit loss model are: cash and cashequivalents, trade receivables, other receivables, convertible notes and other financial assets related to business combinations. However, the change in theimpairment methodology under IFRS 9 did not have a material impact on the Company's consolidated financial statements. Impairment losses related to tradeand other receivables are presented separately in the statement of profit or loss. As a result, for the years ended December 31, 2017 and 2016, the Companyreclassified an impairment gain that amounted to 5 and a loss of 928, respectively, recognised under IAS 39, from Selling, general and administrativeexpenses and an impairment loss of 1,586 as of December 31, 2017 from Impairment of tax credits, to Net impairment (losses) gain on financial assets in thestatement of profit or loss and other comprehensive income. IFRS 15 Revenue from Contracts with Customers IFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaced IAS 18 Revenue, IAS 11Construction Contracts and related interpretations. The Company has adopted IFRS 15 using the cumulative effect method (without practical expedients)with the effect of initially applying this standard recognised at the date of initial application, however, as per the management of the Company's assessment,no effect had to be recognised at January 1, 2018. The details of the new significant accounting policies and the nature of the changes to previous accountingpolicies in relation to the Company's services are set out below. F-14 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) Under IFRS 15, an entity recognises revenue when or as performance obligation is satisfied, i.e. when control of the goods or services underlying theparticular performance obligation is transferred to the customer. Far more prescriptive guidance has been added in IFRS 15 to deal with specific scenarios.Furthermore, extensive disclosures are required by IFRS 15. The Company’s services are mainly performed under both time-and-material and fixed-price contracts. For revenues generated under time-and-materialcontracts, revenues are recognised as services are performed with the corresponding cost of providing those services reflected as cost of revenues whenincurred. The majority of such revenues are billed on an hourly, daily or monthly basis whereby actual time is charged directly to the client. The Company'sperformance obligations are the hours performed. The Company has assessed that these performance obligations are satisfied over time and that the methodcurrently used to measure the progress towards complete satisfaction of these performance obligations continue to be appropriate under IFRS 15. The Company recognises revenues from fixed-price contracts in the accounting periods in which services are rendered as described in note 3.3. The Companyhas assessed that these performance obligations are satisfied over time, applying the input or output methods depending on the nature of the project and theagreement with the customer, recognizing revenue on the basis of the Company’s efforts to the satisfaction of the performance obligation relative to the totalexpected inputs to the satisfaction of the performance obligation, or recognizing revenue on the basis of direct measurements of the value to the customer ofthe services transferred to date relative to the remaining services promised under the contract, respectively. Each method is applied according to thecharacteristics of each contract and client. Accordingly, the methods used to measure the progress towards complete satisfaction of these performanceobligations are appropriate under IFRS 15. •New accounting pronouncements The Company has not applied the following new and revised IFRSs that have been issued but are not yet mandatorily effective: IFRS 16Leases1IFRIC 23Uncertainty over Income Tax Treatments3Amendments to IFRS 10 and IAS 28Sale or Contribution of Assets between an Investor and its Associate orJoint Venture2Amendment to IAS 28Long-term Interests in Associates and Joint Ventures3Amendment to IFRS 9Prepayment Features with Negative Compensation3Amendments to IFRS 3 and 11 and IAS 12 and 23Annual improvements 2015-2017 Cycle4Amendments to IAS 19Plan Amendment, Curtailment or Settlement3Amendments to References to the Conceptual Framework in IFRS Standards4Amendment to IFRS 3Definition of a business5Amendment to IAS 1 and IAS 8Definition of material6 1 Effective for annual periods beginning on or after January 1, 2019. Early adoption is permitted if IFRS 15 has also been applied.2 Effective date deferred indefinitely.3 Effective for annual periods beginning on or after January 1, 2019. Early adoption is permitted.4 Effective for annual periods beginning on or after January 1, 2019. F-15 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) 5 Effective for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or afterJanuary 1, 2020 and to asset acquisitions that occur on or after the beginning of that period. Earlier application is permitted.6 Effective for annual reporting periods beginning on or after January 1, 2020. Earlier application is permitted. •On January 13, 2016, the IASB issued the IFRS 16 which specifies how an IFRS reporter will recognize, measure, present and disclose leases. Thestandard provides a single lessee accounting model, with the distinction between operating and finance leases removed, requiring lessees to recognizeassets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value to be accounted for by simplyrecognizing an expense, typically straight line, over the lease term. Lessors continue to classify leases as operating or finance, with IFRS 16's approach tolessor accounting substantially unchanged from its predecessor, IAS 17. IFRS 16 supersedes IAS 17 and related interpretations. Furthermore, extensivedisclosures are required by IFRS 16. As of December 31, 2018, the Company has non–cancellable operating lease commitments of $55,222 for officespace and office equipment. IAS 17 does not require the recognition of any right-of-use or liability for future payments for these leases; instead, certaininformation is disclosed as operating lease commitment in note 27. If these arrangements meet the definition of a lease under IFRS 16, the Company willrecognize a right–of–use asset and a liability in respect of them unless they qualify of a low value or short–term leases upon the application of IFRS 16.In contrast, for finance leases where the Company is a lessee, the Company recognizes an asset and a related finance lease liability for the leasearrangement. The standard is effective for annual periods beginning on or after January 1, 2019, with earlier application being permitted if IFRS 15 hasalso been applied. The Company has not opted for early application. The most significant impact is that the Company recognizes new assets and liabilities for its operating leases of offices and delivery and developmentcenters. The Company will apply the practical expedient to grandfather the definition of a lease on transition. This means that it applied IFRS 16 to all contractsentered into before January 1, 2019 and identified as leases under IAS 17 and IFRIC 4. The lessee applies the election consistently to all of its leases. The Company will apply IFRS 16 initially on January 1, 2019. The Company has elected the practical expedient to not restate comparative information,and will recognise the cumulative effect of initially applying the Standard as an adjustment to the opening balance of retained earnings at January 1,2019. Based on a preliminary assessment, the Company expects to recognise a right-of-use asset of 46,865, the corresponding liability of 48,547 and anadjustment to retained earnings of 1,682 at January 1, 2019, related to lease arrangements other than short-term leases and leases of low-value assets. •On June 7, 2017, the IASB published IFRIC 23 "Uncertainty over Income Tax Treatments", which was developed by the IFRS Interpretations Committeeto clarify the accounting for uncertainties in income taxes. The interpretation is to be applied to the determination of taxable profit (tax loss), tax bases,unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under IAS 12. The interpretation specificallyconsiders: ◦Whether tax treatments should be considered collectively.◦Assumptions for taxation authorities' examinations.◦The determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates.◦The effect of changes in facts and circumstances. F-16 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) The interpretation is effective for annual periods beginning on or after January 1, 2019. Early adoption is permitted. The Company has not opted forearly application. The application of this interpretation did not have a material impact on the Company's Financial Statements. •On September 11, 2014, the IASB issued amendments to IFRS 10 and IAS 28. These amendments clarify the treatment of the sale or contribution of assetsfrom an investor to its associate or joint venture, as follows:◦require full recognition in the investor's financial statements of gains and losses arising on the sale or contribution of assets that constitute a business(as defined in IFRS 3 Business Combinations);◦require the partial recognition of gains and losses where the assets do not constitute a business, i.e. a gain or loss is recognised only to the extent ofthe unrelated investors' interests in that associate or joint venture. These requirements apply regardless of the legal form of the transaction, e.g. whether the sale or contribution of assets occurs by an investor transferringshares in any subsidiary that holds the assets (resulting in loss of control of the subsidiary), or by the direct sale of the assets themselves. On December17, 2015 the IASB issued an amendment that defers the effective date of the September 2014 amendments to these standards indefinitely until theresearch project on the equity method has been concluded. Earlier application of the September 2014 amendments continues to be permitted. •On October 12, 2017 the IASB published the amendment to IAS 28 "Long-term Interests in Associates and Joint Ventures". This amendment clarifies thatan entity applies IFRS 9 Financial Instruments to long-term interests in an associate or joint venture that form part of the net investment in the associateor joint venture but to which the equity method is not applied. The amendments are to be applied retrospectively but they provide transition requirements similar to those in IFRS 9 for entities that apply theamendments after they first apply IFRS 9. They also include relief from restating prior periods for entities electing, in accordance with IFRS 4 InsuranceContracts, to apply the temporary exemption from IFRS 9. Full retrospective application is permitted if that is possible without the use of hind sight. The amendments are effective for periods beginning on or after 1 January 2019. Earlier application is permitted. The Company has not opted for earlyapplication. The application of this amendment did not have a material impact on the Company's Financial Statements. •On October 12, 2017 the IASB published the amendment to IFRS 9 "Prepayment Features with Negative Compensation". This amendment modifies theexisting requirements in IFRS 9 regarding termination rights in order to allow measurement at amortised cost (or, depending on the business model, atfair value through other comprehensive income) even in the case of negative compensation payments. Under the amendments, the sign of theprepayment amount is not relevant, i. e. depending on the interest rate prevailing at the time of termination, a payment may also be made in favor of thecontracting party effecting the early repayment. The calculation of this compensation payment must be the same for both the case of an early repaymentpenalty and the case of an early repayment gain. The final amendments also contain (in the Basis for Conclusions) a clarification regarding the accounting for a modification or exchange of a financialliability measured at amortised cost that does not result in the derecognition of the financial liability. The IASB clarifies that an entity recognises anyadjustment to the amortised cost of the financial liability arising from a modification or exchange in profit or loss at the date of the modification orexchange. A retrospective change of the accounting treatment may therefore become necessary if in the past the effective interest rate was adjusted andnot the amortised cost amount. F-17 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) The amendments are effective for periods beginning on or after January 1, 2019. Earlier application is permitted. The Company has not opted for earlyapplication. The application of this amendment did not have a material impact on the Company's Financial Statements. •On December 12, 2017, the IASB issued amendments to the following standards as result of the IASB's annual improvements 2015-2017 project:◦IFRS 3 (Business combinations): clarifies that when an entity obtains control of a business that is a joint operation, it remeasures previouslyheld interests in that business.◦IFRS 11 (Joint arrangements): clarifies that when an entity obtains joint control of a business that is a joint operation, the entity does notremeasure previously held interests in that business.◦IAS 12 (Income tax): clarifies that all income tax consequences of dividends (i.e. distribution of profits) should be recognised in profit or loss,regardless of how the tax arises.◦IAS 23 (Borrowing costs): clarifies that if any specific borrowing remains outstanding after the related asset is ready for its intended use or sale,that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalisation rate on general borrowings. The management of the Company do not anticipate that the application of these amendments will have a material impact on the Group's consolidatedfinancial statements. The amendments are all effective for annual periods beginning on or after January 1, 2019. •On February 7, 2018, the IASB published the following amendments to IAS 19 "Plan Amendment, Curtailment or Settlement":◦If a plan amendment, curtailment or settlement occurs, it is now mandatory that the current service cost and the net interest for the period afterthe remeasurement are determined using the assumptions used for the remeasurement.◦In addition, amendments have been included to clarify the effect of a plan amendment, curtailment or settlement on the requirements regardingthe asset ceiling. The amendments are effective for periods beginning on or after January 1, 2019. The Company has not opted for earlier application. The application ofthis amendment did not have a material impact on the Company's Financial Statements •On March 29, 2018, the IASB issued the Amendments to References to the Conceptual Framework in IFRS Standards. The document containsamendments to IFRS 2, IFRS 3, IFRS 6, IFRS 14, IAS 1, IAS 8, IAS 34, IAS 37, IAS 38, IFRIC 12, IFRIC 19, IFRIC 20, IFRIC 22, and SIC-32. Not allamendments, however update those pronouncements with regard to references to and quotes from the framework so that they refer to therevised Conceptual Framework. Some pronouncements are only updated to indicate which version of the framework they are referencing to (the IASCframework adopted by the IASB in 2001, the IASB framework of 2010, or the new revised framework of 2018) or to indicate that definitions in thestandard have not been updated with the new definitions developed in the revised Conceptual Framework. The management of the Company does notanticipate that the application of these amendments will have a material impact on the Company's consolidated financial statements. The amendmentsare effective for annual periods beginning on or after January 1, 2020. •On October 22, 2018, the IASB has issued 'Definition of a Business (Amendments to IFRS 3)' aimed at resolving the difficulties that arise when an entitydetermines whether it has acquired a business or a group of assets. F-18 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) The amendments in Definition of a Business (Amendments to IFRS 3) are changes to Appendix A Defined terms, the application guidance, and theillustrative examples of IFRS 3 only. They:◦clarify that to be considered a business, an acquired set of activities and assets must include, at a minimum, an input and a substantive processthat together significantly contribute to the ability to create outputs;◦narrow the definitions of a business and of outputs by focusing on goods and services provided to customers and by removing the reference toan ability to reduce costs;◦add guidance and illustrative examples to help entities assess whether a substantive process has been acquired;◦remove the assessment of whether market participants are capable of replacing any missing inputs or processes and continuing to produceoutputs;◦and add an optional concentration test that permits a simplified assessment of whether an acquired set of activities and assets is not a business. The management of the Company does not anticipate that the application of this amendment will have a material impact on the Company's consolidatedfinancial statements. This amendment is effective for business combinations for which the acquisition date is on or after the beginning of the first annualreporting period beginning on or after January 1, 2020 and to asset acquisitions that occur on or after the beginning of that period. Earlier application ispermitted. The Company has not opted for early application. •On October 31, 2018, the IASB has issued 'Definition of Material (Amendments to IAS 1 and IAS 8)' to clarify the definition of ‘material’ and to align thedefinition used in the Conceptual Framework and the standards themselves. The changes in Definition of Material (Amendments to IAS 1 and IAS 8) all relate to a revised definition of 'material' which is quoted as follows from thefinal amendments: "Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primaryusers of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specificreporting entity". Three new aspects of the new definition should especially be noted: ◦Obscuring. The existing definition only focused on omitting or misstating information, however, the Board concluded that obscuring materialinformation with information that can be omitted can have a similar effect. Although the term obscuring is new in the definition, it was alreadypart of IAS 1 (IAS 1.30A).◦Could reasonably be expected to influence. The existing definition referred to 'could influence' which the Board felt might be understood asrequiring too much information as almost anything ‘could’ influence the decisions of some users even if the possibility is remote.◦Primary users. The existing definition referred only to 'users' which again the Board feared might be understood too broadly as requiring toconsider all possible users of financial statements when deciding what information to disclose. The management of the Company does not anticipate that the application of these amendments will have a material impact on the Company'sconsolidated financial statements. These amendments are effective for annual reporting periods beginning on or after January 1, 2020. Earlier applicationis permitted. The Company has not opted for early application. 2.2 – Basis of consolidation These consolidated financial statements include the consolidated financial position, results of operations and cash flows of the Company and itsconsolidated subsidiaries. Control is achieved where the company has the power over the investee; exposure, or rights, to variable returns from itsinvolvement with the investee and the ability to use its power over the investee to affect the amount of the returns. All intercompany transactions andbalances between the Company and its subsidiaries have been eliminated in the consolidation process. F-19 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) Non-controlling interest in the equity of consolidated subsidiaries is identified separately from the Company's net liabilities therein. Non-controlling interestconsists of the amount of that interest at the date of the original business combination and the non-controlling share of changes in equity since the date of theconsolidation. Losses applicable to non-controlling shareholders in excess of the non-controlling interest in the subsidiary's equity are allocated against theinterest of the Company, except to the extent that the non-controlling interest has a binding obligation and is able to make an additional investment to coverthe losses. Acquired companies are accounted for under the acquisition method whereby they are included in the consolidated financial statements from theiracquisition date. Detailed below are the subsidiaries of the Company whose financial statement line items have been included in these consolidated financial statements. F-20 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) Country Percentage ownership of Main As of December 31, Company incorporation Activity 2018 2017 2016 Sistemas UK Limited United Kingdom Customer referral services and softwaredevelopment support 100.00% 100.00% 100.00%Globant LLC United States of America Customer referral services and softwaredevelopment support 100.00% 100.00% 100.00%Sistemas Colombia S.A.S. Colombia Software development and consultancy 100.00% 100.00% 100.00%Global Systems Outsourcing S.R.L. de C.V. Mexico Software development and consultancy 100.00% 100.00% 100.00%Software Product Creation S.L. Spain Software development and consultancy 100.00% 100.00% 100.00%Globant España S.A. (sociedad unipersonal) Spain Investing activities 100.00% 100.00% 100.00%Sistemas Globales Uruguay S.A. Uruguay Software development and consultancy 100.00% 100.00% 100.00%Sistemas Globales S.A. Argentina Software development and consultancy 100.00% 100.00% 100.00%IAFH Global S.A. Argentina Software development and consultancy 100.00% 100.00% 100.00%Sistemas Globales Chile Ases. Ltda. Chile Software development and consultancy 100.00% 100.00% 100.00%Globers S.A. Argentina Travel organization services 100.00% 100.00% 100.00%Globant Brasil Consultoria Ltda. Brazil Software development and consultancy 100.00% 100.00% 100.00%Huddle Investment LLP (2) United Kingdom Investing activities - - 100.00%Huddle Group S.A. (3) Argentina Software development and consultancy - 100.00% 100.00%Globant Peru S.A.C. Peru Software development and consultancy 100.00% 100.00% 100.00%Globant India Private Limited India Software development and consultancy 100.00% 100.00% 100.00%Dynaflows S.A. (4) Argentina Software development and consultancy 100.00% 66.73% 66.73%We Are London Limited United Kingdom Service design consultancy 100.00% 100.00% 100.00%L4 Mobile LLC (1) United States of America Software development and consultancy - 100.00% 100.00%Difier S.A. Uruguay Software development and consultancy 100.00% 100.00% 100.00%Globant Bel LLC (5) Belarus Software development and consultancy 100.00% - - Globant Canada Corp. (6) Canada Software development and consultancy 100.00% 100.00% - Globant France S.A.S. (7) France Software development and consultancy 100.00% - - Small Footprint S.R.L. (8) Romania Software development and consultancy 100.00% - - F-21 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) Country Percentage ownership of Main As of December 31, Company incorporation Activity 2018 2017 2016 Globant Ventures S.A.S. (9) Argentina Holding and investment activities 100.00% - - (1)L4 Mobile LLC was acquired on November 14, 2016 (see note 24.6) and was merged into Globant, LLC on January 21, 2018.(2)Huddle Investment LLP was dissolved on June 30, 2017.(3)On December 31, 2017, Huddle Group S.A. was merged into Sistemas Globales S.A. (currently under registration).(4)On October 26, 2018, the sellers exercised the put option on the non-controlling interest of Dynaflows (see note 24.3).(5)Globant Bel LLC (previously known as PointSource LLC) was acquired on May 11, 2018. Globant Bel LLC's financial statements were included in theconsolidated financial statements as of December 31, 2017, as explained in note 24.8.(6)Globant Canada Corp. was incorporated on March 27, 2017.(7)Globant France S.A.S. was incorporated on October 1, 2018.(8)Small Footprint S.R.L. was acquired on October 15, 2018 (note 24.9).(9)Globant Ventures S.A.S. was incorporated on November 20, 2018 (currently under registration). NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 3.1 – Business combinations Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value,which is calculated as the sum of the acquisition date fair values of the assets transferred to the Company, liabilities incurred by the Company to the formerowners of the acquiree and the equity interests issued by the Company in exchange for control of the acquiree. Acquisition-related charges are recognized inprofit or loss as incurred. At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognized at their fair value, except that: •deferred tax assets or liabilities, and assets or liabilities related to employee benefit arrangements are recognized and measured in accordance with IAS 12Income Taxes and IAS 19 Employee Benefits respectively; and •liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Companyentered into to replace share-based payment arrangements of the acquiree are measured in accordance with IFRS 2 Share-based Payment at theacquisition date. Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquired business, and thefair value of the acquirer's previously held equity interest in the acquired business (if any) over the net of the acquisition date amounts of the identifiableassets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition date amounts of the identifiable assets acquired and liabilitiesassumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquired business and the fair value of theacquirer's previously held equity interest in the acquired business (if any), the excess is recognized immediately in profit or loss as a bargain purchase gain. F-22 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity's net assets in the event ofliquidation may be initially measured either at fair value or at the non-controlling interests' proportionate share of the recognized amounts of the acquiredbusiness identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis. When the consideration transferred by the Company in a business combination includes assets or liabilities resulting from a contingent considerationarrangement, the contingent consideration is measured at its acquisition-date fair value and included as part of the consideration transferred in a businesscombination. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, withcorresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the'measurement period' (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date. The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as measurement period adjustments depends onhow the contingent consideration is classified. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and itssubsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability is remeasured at subsequentreporting dates in accordance with IFRS 3 and IFRS 13, as appropriate, with the corresponding gain or loss being recognized in profit or loss. When a business combination is achieved in stages, the Company's previously held equity interest in the acquiree is remeasured to its acquisition-date fairvalue and the resulting gain or loss, if any, is recognized in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that havepreviously been recognized in other comprehensive income are reclassified to profit or loss where such treatment would be appropriate if that interest weredisposed of. Arrangements that include remuneration of former owners of the acquiree for future services are excluded of the business combinations and will berecognized in expense during the required service period. 3.2 – Goodwill Goodwill arising in a business combination is carried at cost as established at the acquisition date of the business less accumulated impairment losses, if any.For the purpose of impairment testing, goodwill is allocated to a unique cash generating unit (CGU). Goodwill is not amortised and is reviewed for impairment at least annually or more frequently when there is an indication that the business may be impaired.If the recoverable amount of the business is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwillallocated to the business and then to the other assets of the business pro-rata on the basis of the carrying amount of each asset in the business. Anyimpairment loss for goodwill is recognized directly in profit or loss in the consolidated statement of income and other comprehensive income. An impairmentloss recognized for goodwill is not reversed in a subsequent period. The Company has not recognized any impairment loss in the years ended December 31, 2018, 2017 and 2016. 3.3 – Revenue recognition The Company generates revenue primarily from the provision of software development, testing, infrastructure management, application maintenance,outsourcing services, consultancy and Services over Platforms (SoP). SoP is a new concept for the services industry that aims deliver digital journeys in morerapid manner providing specific platforms as a starting point and then customizing them to the specific need of the customers. Revenue is measured at the fairvalue of the consideration received or receivable. F-23 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) The Company’s services are performed under both time-and-material and fixed-price contracts. For revenues generated under time-and-material contracts,revenues are recognized as a performance obligation satisfied over time, using an input method based on hours incurred. The majority of such revenues arebilled on an hourly, daily or monthly basis whereby actual time is charged directly to the client. The Company recognizes revenues from fixed-price contracts applying the input or output methods depending on the nature of the project and the agreementwith the customer, recognizing revenue on the basis of the Company’s efforts to the satisfaction of the performance obligation relative to the total expectedinputs to the satisfaction of the performance obligation, or recognizing revenue on the basis of direct measurements of the value to the customer of theservices transferred to date relative to the remaining services promised under the contract, respectively. Each method is applied according to thecharacteristics of each contract and client. The inputs and outputs are selected based on how faithfully they depict the Company's performance towardscomplete satisfaction of the performance obligation. 3.4 – Leasing Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All otherleases are classified as operating leases. Finance leases which transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at thecommencement of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments areapportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability.Finance charges are recognized in finance costs in the consolidated statement of profit or loss and other comprehensive income. A leased asset is depreciatedover the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset isdepreciated over the shorter of the estimated useful life of the asset and the lease term. Operating lease payments are recognized as an expense on a straight-line basis over the lease term, except where another systematic basis is morerepresentative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases arerecognized as an expense in the period in which they are incurred. In the event that lease incentives are received to enter into operating leases, such incentives are recognized as a liability. The aggregate benefit of incentivesis recognized as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of the time pattern inwhich economic benefits from the leased asset are consumed. The Company did not receive any lease incentives in any of the years presented. There are no situations in which the Company qualifies as a lessor. 3.5 – Foreign currencies Except in the case of Globant Brasil Consultoría Ltda. (formerly TerraForum Consultoria Ltda.), Globers S.A. and We are London Limited, the Company andthe other subsidiaries’ functional currency is the U.S. dollar. In preparing these consolidated financial statements, transactions in currencies other than theU.S. dollar (“foreign currencies”) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period,monetary items denominated in foreign currencies are translated at the rates prevailing at that date. Non-monetary items that are measured in terms ofhistorical cost in a foreign currency are kept at the original translated cost. Exchange differences are recognized in profit and loss in the period in which theyarise. F-24 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) In the case of Globant Brasil Consultoría Ltda., Globers S.A. and We are London Limited, the functional currencies are the Brazilian Real, the Argentine Pesoand the Great Britain Pound, respectively. Assets and liabilities are translated at current exchange rates, while income and expense are translated at the date ofthe transaction rate. The resulting foreign currency translation adjustment is recorded as a separate component of accumulated other comprehensive income(loss) in equity. Accounting standards are applied on the assumption that the value of money (the unit of measurement) is constant over time. However, when the rate ofinflation is no longer negligible, a number of issues arise impacting the true and fair nature of the accounts of entities that prepare their financial statementson a historical cost basis. To address such issues, entities should apply IAS 29 Financial Reporting in Hyperinflationary Economies from the beginning of theperiod in which the existence of hyperinflation is identified. Based on the statistics published on July 17, 2018, the 3-year cumulative rate of inflation forconsumer prices and wholesale prices in Argentina reached a level of about 123% and 119%, respectively. On that basis, Argentina was considered anhyperinflationary economy since July 1, 2018. However, the Company has evaluated this situation and concluded that it has not significant impact on theirfinancial statements considering that the most significant Argentine subsidiaries have the U.S. dollars as their functional currency, except for Globers S.A. asexplained above. 3.6 – Borrowing costs The Company does not have borrowings attributable to the construction or production of assets. All borrowing costs are recognized in profit and loss underfinance loss. 3.7 – Taxation 3.7.1 – Income taxes – current and deferred Income tax expense represents the estimated sum of income tax payable and deferred tax. 3.7.1.1 – Current income tax The current income tax payable is the sum of the income tax determined in each taxable jurisdiction, in accordance with their respective income tax regimes. Taxable profit differs from profit as reported in the consolidated statement of profit or loss and other comprehensive income because taxable profit excludesitems of income or expense that are taxable or deductible in future years and it further excludes items that are never taxable or deductible. The Company'sliability for current income tax is calculated using tax rates that have been enacted or substantively enacted as of the balance sheet dates. The current incometax charge is calculated on the basis of the tax laws in force in the countries in which the consolidated entities operate. Globant S.A, the Luxembourg company, is subject to a corporate income tax rate of 15% if taxable income is lower than EUR 25, or to a corporate income taxrate of 19% if taxable income exceeds EUR 30. If taxable income is between EUR 25 and EUR 30, the Luxembourg company is subject to corporate incometax computed as follows: EUR 3.75 plus 39% of the tax base above EUR 25. The corporate income tax is increased by a contribution of 7% to theunemployment fund. A municipal business tax also may be imposed at rates ranging from 6% to 12% depending on where the undertaking is located. Thus,Luxembourg’s effective corporate income tax rate for 2018 is 27.08%. For the year 2019, businesses with taxable income lower than EUR 25 will be subjectto corporate income tax at a rate of 15% . Businesses with taxable income between EUR 25 and EUR 30 will be subject to corporate income tax computed asfollows: EUR 3.75 plus 33% of the tax base above EUR 25 The corporate tax rate will be 18% for companies with taxable income in excess of EUR 30. F-25 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) In 2008, Globant España S.A. elected to be included in the Spanish special tax regime for entities having substantially all of their operations outside ofSpain, known as “Empresas Tenedoras de Valores en el Exterior” (“ETVE”), on which dividends distributed from its foreign subsidiaries as well as any gainresulting from disposal are tax free. In order to be entitled to the tax exemption, among other requirements, the main activity of Globant España S.A. must bethe administration and management of equity instruments from non-Spanish entities and such entities must be subject to a tax regime similar to thatapplicable in Spain for non-ETVEs companies. During 2018, the Company’s Uruguayan and Argentinian subsidiaries distributed dividends to GlobantEspaña S.A. for a total amount of 27,462. During 2016, the Company's Uruguayan, Colombian and Argentinian subsidiaries distributed dividends to GlobantEspaña S.A. for a total amount of 85,064. The subsidiaries did not distribute dividends during 2017. If this tax exemption would not applied, the applicabletax rate should be 25%. The Company´s Spanish subsidiary Software Product Creation S.L. is subject to a 25% corporate income tax rate. From a taxable income perspective, the Argentine subsidiaries represent the Company’s most significant operations. Argentine companies are subject to a30% corporate income tax rate. In May 2008, IAFH Global S.A. and Sistemas Globales S.A. were notified by the Argentine Government through the Ministryof Economy and Public Finance that they had been included within the promotional regime for the software industry established under Law No. 25,922 (the“Software Promotion Regime”). Under Argentina’s Software Promotion Law No. 25,922 (Ley de Promoción de la Industria de Software), as amended by Law No. 26,692 and Decree No.95/2018 (the "Software Promotion Law"), the Company's operating subsidiaries in Argentina benefit from a 60% reduction in their corporate income tax rate(as applied to income from promoted software activities) and a tax credit of up to 70% of amounts paid for certain social security taxes (contributions) thatmay be offset against value-added tax liabilities. Law No. 26,692, the 2011 amendment to the Software Promotion Law (“Law No. 26,692”), also allows suchtax credits to be applied to reduce the Company's Argentine subsidiaries’ corporate income tax liability by a percentage not higher than the subsidiaries’declared percentage of exports and extends the tax benefits under the Software Promotion Law until December 31, 2019. The Software Promotion Law remains in effect until December 31, 2019. On March 2019, a draft bill was introduced for its treatment by the ArgentineCongress consisting of a promotional regime for Knowledge Economy. The regime contains tax benefits similar to the ones provided by the SoftwarePromotion Law and is addressed to software companies as well as other companies involved in biotechnology, audiovisual production, exportableprofessional services, robotic automation, aerospace and satellite industry, among others. Such bill has not yet been passed. On December 29, 2017, Argentina enacted a comprehensive tax reform (Law No. 27,430) through publication in the Official Gazette. The Law is effectivefrom January 1, 2018. Specifically, introduces amendments to income tax (both at corporate and individual levels), value added tax (VAT), tax procedurallaw, criminal tax law, social security contributions, excise tax, tax on fuels, and tax on the transfer of real estate. At a corporate level, the law decreases the corporate income tax rate from 35% to 30% for fiscal years starting January 1, 2018 to December 31, 2019, and to25% for fiscal years starting January 1, 2020 and onwards. The Law also establishes dividend withholding tax rates of 7% for profits accrued during fiscalyears starting January 1, 2018 to December 31, 2019, and 13% for profits accrued in fiscal years starting January 1, 2020 and onwards. The new withholdingrates apply to distributions made to shareholders qualifying as resident individuals or nonresidents. Even though the combined effective rate for shareholders on distributed income (corporate income tax rates plus dividend withholding rates on the after taxprofit) will be close to the prior 35% rate, this change is aimed at promoting the reinvestment of profits. Additionally, the Law repeals the “equalization tax”(i.e., 35% withholding applicable to dividends distributed in excess of the accumulated taxable income) for income accrued from January 1, 2018. F-26 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) Regarding the rest of the Company’s Argentine subsidiaries, Globers Travel, Dynaflows, and Globant Ventures SAS as they are not in included within theSoftware Promotion Regime, are subject to a corporate income tax rate of 30% and will be applying the reduced tax rate incorporated by the Law No. 27,430during next fiscal years. The Company’s Uruguayan subsidiary Sistemas Globales Uruguay S.A. is domiciled in a tax free zone and has an indefinite tax relief of 100% of the incometax rate and an exemption from VAT. Aggregate income tax relief arising under Sistemas Globales Uruguay S.A. for years ended December 31, 2018, 2017and 2016 were 11,095, 2,488, 1,231, respectively. The Company’s Uruguayan subsidiary Difier S.A. is located outside tax-free zone and according to Article163 bis of Decree No. 150/007 the software development services performed are exempt from income tax and value-added tax applicable as long as they areexported and utilized abroad. Difier S.A is 100% export-oriented. The Colombian subsidiary, Sistemas Colombia S.A.S. is subject to federal corporate income tax at the rate of 33% and a surcharge at the rate of 4% calculatedon net income before income tax. Until December 31, 2017, the Company's Colombian subsidiary Sistemas Colombia S.A.S. was subject to federal corporateincome tax at the rate of 34% and a surcharge at the rate of 6% calculated on net income before income tax. The Law 1.943 gradually reduce the corporate taxrates and eliminate the surcharge from January 1, 2019 and onwards. The Company’s U.S. subsidiary Globant LLC is subject to U.S. federal income tax at the rate of 21%. Fiscal years beginning before January 1, 2018 weresubject to corporate tax at the rate of 35%. On December 22, 2017, the United Stated enacted the Tax Cuts and Jobs Act (“Tax Act”) that instituted fundamental changes to the taxation of multinationalcorporations. The Tax Act includes significant changes to the U.S. corporate income tax system, including a federal corporate rate reduction from 35% to21%, limitations on the deductibility of interest expense and executive compensation, changes regarding net operating loss carryforwards, and the transitionof U.S. international taxation from a worldwide tax system to a territorial tax system. Furthermore, as part of the transition to the new tax system, a one-timetransition tax is imposed on a U.S. shareholder's historical undistributed earnings of foreign affiliates. For certain eligible pass-through entities, the Tax Actprovides for a qualified business income deduction. The Tax Act introduces various changes to the Internal Revenue Code. The reform also introduces base erosion provisions for U.S corporations that are part of multinational group. For fiscal years beginning after December 31,2017, a U.S corporation is potentially subject to tax under the Base Erosion Anti-Abuse Tax provision (“BEAT”), if the controlled group of which it is a parthas sufficient gross receipts and derives a sufficient level of “base erosion tax benefits”. On December 13, 2018, the Internal Revenue Service (“IRS”) published a proposed regulation that provide guidance regarding the BEAT application.Currently, the Treasury and the IRS are receiving public comments. The document will be official once it is published in the Federal Register. The Company’s English subsidiaries Sistemas UK Limited and We are London Limited are subject to corporate income tax at the rate of 18%. The rate isreduced to 17% as from April 1, 2019. For the years 2017 and 2016, the corporate income tax rates were 19% and 20%, respectively. F-27 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) The Company’s Chilean subsidiary Sistemas Globales Chile Ases. Ltda. is subject to corporate income tax at the rate of 27%. For the years 2017 and 2016,the corporate income tax rates were 25.5% and 27.0%, respectively. The Company’s Brazilian subsidiary Globant Brasil Consultoría Ltda., applies the taxable income method called “Lucro real”. Under this method, taxableincome is based upon a percentage of profit accrued by the Company, adjusted according to the add-backs and exclusions provided in the relevant tax law.The rate applicable to the taxable income derived from the subsidiary’s activity is 24% plus 10% if the net income before income tax is higher than 240,000reais for the years 2017 and onwards. The Company’s Peruvian subsidiary, Globant Peru S.A.C. is subject to corporate income tax at the rate of 29.5%. For the years 2017 and 2016, the corporateincome tax rates were 29.5% and 25.25%, respectively. The Company’s Mexican subsidiary, Global Systems Outsourcing S.R.L. de C.V., is subject to corporate income tax at the rate of 30%. The Company's Indian subsidiary Globant India Private Limited is primarily export-oriented and is eligible for certain income tax holiday benefits grantedby the government of India for export activities conducted within Special Economic Zones, or SEZs. The services provided by our Pune development centerare eligible for a deduction of 100% of the profits or gains derived from the export of services for the first five years from the financial year in which thecenter commenced the provision of services, which occurred on August 3, 2017, and 50% of such profits or gains for the five years thereafter. Certain taxbenefits are also available for a further five years subject to the center meeting defined conditions. Indian profits ineligible for SEZ benefits are subject tocorporate income tax at the rate of 34.61%. In addition, all Indian profits, including those generated within SEZs, are subject to the Minimum Alternative Tax(MAT), at the current rate of approximately 21.34%, including surcharges. On February 1, 2018, the Finance Minister presented the Union Budget 2018-19. A reduction in the corporate tax rate was proposed for companies with anannual turnover of up to Rupees (Rs) 2.5 billion. In such case, the tax rate is 25% plus surcharge. Globant India Private Limited is eligible for the lowercorporate tax rate. The Company's subsidiary located in Belarus is resident of the High Technology Park (“HTP”). HTP residents are exempted from corporate tax and VAT. On December 21, 2017 the President of the Republic of Belarus published the Decree N° 8 that extends the duration of the HTP’s tax incentives and thespecial legal regime until January 1, 2049. The Company will be benefited by the exemption as long as the regime is valid. The Company's subsidiary located in Romania is subject to income tax at the rate of 16%. The Company´s subsidiary located in Canada is subject to federal income tax at the rate of 15%. The rate is increased by the state income tax rate which is11% in the case of the state of British Columbia where the subsidiary is incorporated. The corporate tax rate in France for most companies is 33.33%. The Finance Bill for 2017 contains provisions for the progressive reduction of the corporateincome tax rate from the33.33% rate to 28% over the period 2017 to 2020. Also, there is a reduced tax rate of 15% for companies whose turnover does notexceed EUR 7,63 million, but only for the first EUR 38,120 of taxable income. In 2019 the reduced rate will be applicable to small and medium-sizeenterprises. To qualified as a small and medium-size enterprise, a company must employ less than 250 employees and have an annual turnover not exceedingEUR 50 millions. F-28 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) According to the Finance Bill, the Company´s subsidiary located in France is subject to tax at a rate of 28% during 2018. The rate applies for the first EUR500.000. 3.7.1.2 – Deferred tax Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and thecorresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences, anddeferred tax assets including tax loss carry forwards are generally recognized for all deductible temporary differences to the extent that it is probable thattaxable profits will be available against which those deductible temporary differences can be utilized. Such deferred assets and liabilities are not recognizedif the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in atransaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognized if the temporary differencearises from the initial recognition of goodwill. Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, except where the entities are able tocontrol the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assetsarising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that therewill be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxableprofits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized,based on tax rates (and tax laws) that have been enacted or substantively enacted by the balance sheet date. The measurement of deferred tax liabilities andassets reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carryingamount of its assets and liabilities. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when theyrelate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis. Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly inequity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively. The Company hasnot recorded any current or deferred income tax in other comprehensive income or equity in any each of the years presented, except for deferred income taxarising from the share-based compensation plan and for the translation of deferred tax assets and liabilities arising from subsidiaries with functionalcurrencies other than U.S. dollar . Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the businesscombination. Under IFRS, deferred income tax assets (liabilities) are classified as non-current assets (liabilities). The Company does not have unrecognized tax benefits or reserve for uncertain tax treatments that require disclosure in its consolidated financial statements. F-29 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) 3.7.2. – Other taxes On December 4, 2018, Argentina approved the budget bill for 2019 by the Law 27,467. The Law amends the Customs Code to allow for duties to be appliedto the exportation of services. The Executive Power will be allowed to impose export duties of up to 30% on services until December 31, 2020. However, themaximum rate is 12% for goods that were not subject to export duties before September 2, 2018 (i.e., the date Argentina imposed new export duties on goodsthrough a decree). On January 2, 2019, the Argentine Executive Power issued Decree No. 1201/2018 establishes an export duty on exports of services at a rate of 12% with amaximum limit of Argentine pesos (ARS) 4 per each U.S. dollar of the amount arising from the invoice or equivalent document. According to the Law and the Decree, a service is considered exported when it was rendered from Argentina, and whose effective use or exploitation. 3.8 – Property and equipment Fixed assets are valued at acquisition cost, net of the related accumulated depreciation and accumulated impairment losses, if any. Depreciation is recognized so as to write off the cost or valuation of assets less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes inestimate accounted for on a prospective basis. Lands and properties under construction are carried at cost, less any recognized impairment loss. Properties under construction are classified to theappropriate categories of property and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as otherproperty assets, commences when the assets are ready for their intended use. Land is not depreciated. An item of property and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of theasset. Any gain or loss arising on the disposal or retirement of an item of property and equipment is determined as the difference between the sales proceedsand the carrying amount of the asset and is recognized in profit or loss. The value of fixed assets, taken as a whole, does not exceed their recoverable value. 3.9 – Intangible assets Intangible assets include licenses, customer relationships and non-compete agreements. The accounting policies for the recognition and measurement ofthese intangible assets are described below. 3.9.1 – Intangible assets acquired separately Intangible assets with finite useful life that are acquired separately (licenses) are carried at cost less accumulated amortization and accumulated impairmentlosses. Amortization is recognized on a straight-line basis over the intangible assets estimated useful lives. The estimated useful lives and amortizationmethod are reviewed at the end of each annual reporting period, with the effect of any changes in estimates being accounted for on a prospective basis. F-30 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) 3.9.2 – Intangible assets acquired in a business combination Intangible assets acquired in a business combination (trademarks, customer relationships and non-compete agreements) are recognized separately fromgoodwill and are initially recognized at their fair value at the acquisition date (which is regarded as their cost). Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated amortization and accumulatedimpairment losses, on the same basis as intangible assets acquired separately. 3.9.3 – Internally-generated intangible assets Intangible assets arising from development are recognized if, and only if, all the following have been demonstrated:- the technical feasibility of completing the intangible asset so that it will be available for use or sale;- the intention to complete the intangible asset and use or sell it;- the ability to use or sell the intangible asset;- how the intangible asset will generate probable future economic benefits;- the ability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset, and- the ability to measure reliably the expenditure attributable to the intangible asset during its development. The amount initially recognized for internally-generated assets is the sum of expenditure incurred from the date when the intangible asset first meets therecognition criteria listed above. Where no internally-generated intangible asset can be recognized, development expenditure is recognized in profit or lossin the period in which it is incurred. Subsequent to initial recognition, intangible assets are reported at cost less accumulated amortization and accumulated impairment losses, on the same basisas intangible assets that are acquired separately. 3.9.4 – Derecognition of intangible assets An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising fromderecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, and are recognized inprofit or loss when the asset is derecognized. No intangible asset has been derecognized in the last three years. 3.10 – Impairment of tangible and intangible assets excluding goodwill At each balance sheet date, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication thatthose assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extentof the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverableamount of the cash-generating unit or the business, as the case may be. The recoverable amount of an asset is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows arediscounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to theasset for which the estimates of future cash flows have not been adjusted. F-31 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Animpairment loss is recognized immediately in the statement of profit or loss and other comprehensive income for the year. As of December 31, 2018 and 2017 the Company recorded an impairment loss of 306 related to internally-generated intangible assets and 4,708 related to theintangible assets acquired in business combinations. In 2016 no impairment losses were recorded. 3.11 – Provisions for contingencies The Company has existing or potential claims, lawsuits and other proceedings. Provisions are recognized when the Company has a present obligation (legalor constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of theamount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the balance sheet date, taking intoaccount the risks and uncertainties surrounding the obligation, and the advice of the Company’s legal advisors. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as anasset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. The amount of the recognizedreceivable does not exceed the amount of the provision recorded. 3.12 – Financial assets On initial recognition, a financial asset is classified as measured at: (i) amortised cost (ii) fair value through other comprehensive income (FVOCI) or (iii) fairvalue through profit or loss (FVTPL). The classification of financial assets is generally based on the business model in which a financial asset is managed andits contractual cash flow characteristics. 3.12.1 – Amortised cost and effective interest method A financial asset is measured at amortised cost if both of the following conditions are met, and is not designated as at FVPL:- It is held within a business model whose objective is to hold financial assets to collect contractual cash flow;- Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The effective interest method is a method of calculating the amortised cost of an instrument and of allocating interest income over the relevant period. Theeffective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees on points paid or received that form an integral part ofthe effective interest rate, transaction costs and other premiums or discounts) through the expected life of the instrument, or (where appropriate) a shorterperiod, to the net carrying amount on initial recognition. F-32 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) 3.12.2 – Financial assets measured at FVOCI A financial asset is measured at FVOCI if both of the following conditions are met, and is not designated as at FVPL:-It is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets-Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding The change in fair value of financial assets measured at FVOCI is accumulated in the investment revaluation reserve until they are derecognised. When afinancial asset measured at FVOCI is derecognised, the cumulative gain or loss previously recognised in other comprehensive income is reclassified fromequity to profit or loss as a reclassification adjustment. 3.12.3 – Financial assets measured at FVPL All financial assets not classified as measured at amortised cost or FVOCI as described above, are measured at FVPL. Financial assets at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or lossrecognized in profit or loss incorporates any dividend or interest earned on the financial asset and is included in the ‘Finance income’ line. 3.12.4 - Derivative financial instruments The Company enters into foreign exchange forward contracts. Derivatives are initially recognized at fair value at the date the derivative contracts are enteredinto and are subsequently remeasured to fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss. 3.12.5 - Investment in associates An associate is an entity over which the Company has significant influence. Significant influence is the power to participate in the financial and operatingpolicy decisions of the investee but is not control or joint control over those policies. The results and assets and liabilities of associates are incorporated in these consolidated financial statements using the equity method of accounting. Underthe equity method, an investment in associate is initially recognized in the consolidated statement of financial position at cost and adjusted thereafter torecognize the Company’s share of the profit or loss and other comprehensive income of the associate. 3.12.6 – Other Financial Assets Call option over non-controlling interest in subsidiary On October 22, 2015, the Company was granted with a call option to acquire the remaining 33.27% interest in Dynaflows S.A, which can be exercised fromOctober 22, 2020 till October 21, 2021. At the same moment, the Company has also agreed on a put option with the non-controlling shareholders whichgives them the right to sell its remaining 33.27% interest on October 22, 2018 or October 22, 2020. As of December 31, 2018, the sellers exercised the putoption, as explained in note 24.3, and the Company derecognized the call option. As of December 31, 2017, the Company accounted for the call option at itsfair value of 455, in a similar way to a call option over an entity’s own equity shares and the initial fair value of the option was recognized in equity. F-33 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) Clarice Subscription agreement On May 14, 2015, the Company signed a subscription agreement as described in note 24.2. According to this agreement, the Company will receive a fixamount of money in exchange of a variable number of shares of the Company. According to IAS 32:11, a financial asset has been recognized in order toreflect the contractual right to receive cash. As of December 31, 2018 and 2017, the Company has recorded 400 and 800 as current financial assets,respectively. 3.12.7 – Impairment of financial assets The Company recognises a loss allowance for expected credit losses on financial assets, other than those at FVTPL. The amount of expected credit losses isupdated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Company always recognises lifetime expected credit losses ("ECL") for trade receivables, using a simplified approach. The expected credit losses onthese financial assets are estimated using a provision matrix based on the Company’s historical credit loss experience, adjusted for factors that are specific todebtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date. For all other financial instruments, the Company recognises lifetime ECL when there has been a significant increase in credit risk since initial recognition.However, if the credit risk on the financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance forthat financial instrument at an amount equal to 12-month ECL. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast,12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12months after the reporting date. Significant increase in credit risk since initial recognition In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the Company compares the risk of a defaultoccurring on the financial instrument at the reporting date with such risk at the date of initial recognition. In making this assessment, the Company considersboth quantitative and qualitative information that is reasonable and supportable, including forward-looking information that is available without undue costor effort. In particular, the following information is taken into account when assessing whether credit risk has increased significantly since initial recognition:•internal credit rating•external credit rating (as far as available)•significant deterioration in external market indicators of credit risk for a particular financial instrument•actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant decrease in thedebtor's ability to meet its debt obligations•actual or expected significant changes in the operating results of the debtor•significant increases in credit risk on other financial instruments of the same debtor•actual or expected significant adverse changes in the regulatory, economic, or technological environment of the debtor that results in a significantdecrease in the debtor's ability to meet its debt obligations. Regardless of the analysis above, a significant increase in credit risk is presumed if a debtor is more than 30 days past due in making a contractual payment,unless the Company has reasonable and supportable information that demonstrates otherwise. F-34 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) Despite the foregoing, the Company assumes that the credit risk on a financial instrument has not increased significantly since initial recognition if thefinancial instrument is determined to have low credit risk at the reporting date. A financial asset is determined to have low credit risk if the financialinstrument has a low risk of default, the borrower has a strong capacity to meet its contractual cash flow obligations in the near term and adverse changes ineconomic and business conditions in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfill its contractual cash flowobligations. The Company considers a financial asset to have low credit risk when the asset has external credit rating of 'investment grade' in accordancewith the globally understood definition, or if an external rating is not available, if the counterparty has a strong financial position and there is no past dueamounts. All of the Company's current and non current investments are considered to have low credit risk. Definition of default A default on a financial asset is when the counterparty fails to make contractual payments within 90 days of when they fall due, unless an entity hasreasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate. Credit-impaired financial assets A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset haveoccurred. Evidence that a financial asset is credit-impaired include observable data about the following events:a. significant financial difficulty of the issuer or the borrower;b. a breach of contract, such as a default or past due event;c. the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower aconcession(s) that the lender(s) would not otherwise consider;d. it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation;e. the disappearance of an active market for that financial asset because of financial difficulties; orf. the purchase or origination of a financial asset at a deep discount that reflects the incurred credit losses. It may not be possible to identify a single discrete event-instead, the combined effect of several events may have caused financial assets to become credit-impaired. Write-off policy Financial assets' carrying amounts are reduced through the use of an allowance account on a case-by-case basis. When a financial asset is considereduncollectable, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowanceaccount. Changes in the carrying amount of the allowance account are recognized in profit and loss. Measurement and recognition of expected credit losses The measurement of expected credit losses is a function of the probability of default, loss given default and the exposure at default. The assessment of theprobability of default and loss given default is based on historical data, adjusted by forward-looking information as described above. The exposure of defaultis represented by the asset's gross carrying amount at the reporting date. F-35 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. Financial assetsother than trade receivables, have been grouped at the lowest levels for which there are separately identifiable cash flows. No significant changes to estimation techniques or assumptions were made during the reporting period. 3.12.8 – Derecognition of financial assets The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset andsubstantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all the risks andrewards of ownership and continues to control the transferred asset, the Company recognizes its retained interest in the asset and an associated liability foramounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Companycontinues to recognize the financial asset and also recognizes a collateralised borrowing for the proceeds received. On derecognition of a financial asset in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received andreceivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss. On derecognition of a financial asset other than in its entirety (e.g. when the Company retains an option to repurchase part of a transferred asset), theCompany allocates the previous carrying amount of the financial asset between the part it continues to recognize under continuing involvement, and the partit no longer recognizes on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocatedto the part that is no longer recognized and the sum of the consideration received for the part no longer recognized and any cumulative gain or loss allocatedto it that had been recognized in other comprehensive income is recognized in profit or loss. A cumulative gain or loss that had been recognized in othercomprehensive income is allocated between the part that continues to be recognized and the part that is no longer recognized on the basis of the relative fairvalues of those parts. 3.13 – Financial liabilities and equity instruments 3.13.1 – Classification as debt or equity Debt and equity instruments issued by the Company and its subsidiaries are classified as either financial liabilities or as equity in accordance with thesubstance of the contractual arrangements and the definitions of a financial liability and an equity instrument. 3.13.2 – Equity instruments An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issuedby the Company are recognized at the proceeds received, net of direct issue costs. Repurchase of the Company’s own equity instruments is recognized and deducted directly in equity. No gain or loss is recognized in profit or loss on thepurchase, sale, issue or cancellation of the Company’s own equity instruments. F-36 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) 3.13.3 – Financial liabilities Financial liabilities, including trade payables, other liabilities and borrowings, are initially measured at fair value, net of transaction costs. Financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognized on an effective yieldbasis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period.The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or (whereappropriate) a shorter period, to the net carrying amount on initial recognition. 3.13.4 – Derecognition of financial liabilities The Company derecognizes financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or they expire. The differencebetween the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss. 3.14 – Cash and cash equivalents For the purposes of the statement of cash flows, cash and cash equivalents include cash on hand and in banks and short-term highly liquid investments(original maturity of less than 90 days). In the consolidated statements of financial position, bank overdrafts are included in borrowings within currentliabilities. Cash and cash equivalents as shown in the statement of cash flows only includes cash and bank balances and time deposits. 3.15 – Reimbursable expenses Out-of-pocket and travel expenses are recognized as expense in the statements of income for the year. Reimbursable expenses are billed to customers andrecorded net of the related expense. 3.16 - Share-based compensation plan The Company has a share-based compensation plan for executives and employees of the Company and its subsidiaries. Equity-settled share-based paymentsto employees are measured at the fair value of the equity instruments at the grant date. Details regarding the determination of the fair value of equity-settledshare-based transactions are set forth in note 23. The fair value determined at the grant date of the equity-settled share-based payments is recognised to spread the fair value of each award over the vestingperiod on a straight-line basis, based on the Company’s estimate of equity instruments that will potentially vest, with a corresponding increase in equity. F-37 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) 3.17 – Components of other comprehensive income Components of other comprehensive income are items of income and expense that are not recognized in profit or loss as required or permitted by other IFRSs.The Company included gains and losses arising from translating the financial statements of a foreign operation and the income related to the valuation of thefinancial assets measured at fair value through other comprehensive income. NOTE 4 – CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY In the application of the Company's accounting policies, which are described in note 3, the Company's management is required to make judgments, estimatesand assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associatedassumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which theestimate is revised if the revision affects only that year or in the year of the revision and future years if the revision affects both current and future years. The critical accounting estimates concerning the future and other key sources of estimation uncertainty at the end of the reporting year that have a significantrisk of causing a material adjustment to the carrying amounts of assets and liabilities within the next year are the following: 1.Revenue recognition In accounting for fixed-price contracts the Company applies the input or output methods depending on the nature of the project and the agreementwith the customer, recognizing revenue on the basis of the Company’s efforts to the satisfaction of the performance obligation relative to the totalexpected inputs to the satisfaction of the performance obligation, or recognizing revenue on the basis of direct measurements of the value to thecustomer of the services transferred to date relative to the remaining services promised under the contract, respectively. Each method is appliedaccording to the characteristics of each contract and client. These methods are followed where reasonably dependable estimates of revenues and costs can be made. Fixed-price contracts generally correspondfor services over a period of 12 months or less. Some fixed-price contracts are recurring contracts that establish a fixed amount per month and do notrequire the Company to apply significant judgment in accounting for those types of contracts. In consequence, the use of estimates is onlyapplicable for those contracts that are on-going at the year end and that are not recurring. Reviews to these estimates may result in increases or decreases to revenues and income and are reflected in the consolidated financial statements inthe periods in which they are first identified. If the estimates indicate that a contract loss will be incurred, a loss provision is recorded in the period inwhich the loss first becomes probable and reasonably estimable. Contract losses are determined to be the amount by which the estimated costs of thecontract exceed the estimated total revenues that will be generated by the contract and are included in cost of revenues in the consolidated statementof income and other comprehensive income. Contract losses for the periods presented in these consolidated financial statements were immaterial. F-38 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) 2.Goodwill impairment analysis Goodwill is measured as the excess of the cost of an acquisition over the sum of the amounts assigned to tangible and intangible assets acquired lessliabilities assumed. The determination of the fair value of the tangible and intangible assets involves certain judgments and estimates. Thesejudgments can include, but are not limited to, the cash flows that an asset is expected to generate in the future and the appropriate weighted averagecost of capital. The Company evaluates goodwill for impairment at least annually or more frequently when there is an indication that the unit may be impaired.When determining the fair value of the Company's cash generating unit, the Company utilizes the income approach using discounted cash flow. Theincome approach considers various assumptions including increase in headcount, headcount utilization rate, income from each country and revenueper employee, income tax rates and discount rates. The assumptions considered by the Company as of December 31, 2018 are the following:projected cash flows for the following five years, the average growth rate considered was 20.0% and the rate used to discount cash flows was 16.94%.The long-term rate used to extrapolate cash flows beyond the projected period was 3%. Any adverse changes in key assumptions about the businesses and their prospects or an adverse change in market conditions may cause a change inthe estimation of fair value and could result in an impairment charge. Based upon the Company's evaluation of goodwill, no impairments wererecognized during 2018, 2017 and 2016. 3.Income taxes Determining the consolidated provision for income tax expenses, deferred income tax assets and liabilities requires significant judgment. Theprovision for income taxes is calculated over the net income of the company and is inclusive of federal, local and state taxes. Deferred tax assets andliabilities are recognized for the estimated future tax consequences in each of the jurisdictions where the Company operates of temporary differencesbetween the financial statement carrying amounts and their respective tax bases. Deferred tax assets and liabilities are measured using enacted taxrates expected to apply to taxable income in the year in which the temporary differences are expected to be reversed. Changes to enacted tax rateswould result in either increases or decreases in the provision for income taxes in the period of changes. The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and is reduced to the extent that it is no longer probablethat sufficient taxable profit will be available to allow the benefit of part or all of the deferred tax assets to be utilized. This assessment requiresjudgments, estimates and assumptions by management. In evaluating the Company's ability to utilize its deferred tax assets, the Company considersall available positive and negative evidence, including the level of historical taxable income and projections for future taxable income over theperiods in which the deferred tax assets are recoverable. The Company's judgments regarding future taxable income are based on expectations ofmarket conditions and other facts and circumstances. Any adverse change to the underlying facts or the Company's estimates and assumptions couldrequire that the Company reduces the carrying amount of its net deferred tax assets. 4.Impairment of financial assets The Company measures ECL using reasonable and supportable forward looking information, which is based on assumptions for the futuremovement of different economic drivers and how these drivers will affect each other. Loss given default is an estimate of the loss arising on default.It is based on the difference between the contractual cash flows due and those that the lender would expect to receive. F-39 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) Probability of default constitutes a key input in measuring ECL. Probability of default is an estimate of the likelihood of default over a given timehorizon, the calculation of which includes historical data, assumptions and expectations of future conditions. As of December 31, 2018, 2017 and 2016, the Company recorded an impairment of trade receivables for an amount of 3,421, a recovery of 5 and animpairment of 928, respectively, using a provision matrix based on the Company’s historical credit loss experience, adjusted for factors that arespecific to debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reportingdate. As of December 31, 2018 and 2017, the Company recorded an impairment of tax credits for an amount of 48 and 1,586, respectively, based onassumptions about expected credit losses. The Company uses judgment in making these assumptions based on existing regulatory conditions aswell as forward looking estimates, which are described as follows. The tax credits included in the allowance for impairment are mainly related toArgentine taxation. The Company estimated the future VAT credit and VAT debit that comes from domestic purchases and sales, respectively. Sinceexports are zero-rated, any excess portion of the credit not used against any VAT debit is reimbursable to the Company, through a special VATrecovery regime. However, according to VAT recovery rules, there are certain limitations on the amount that may be reimbursed and the Companyconsidered any VAT credit that cannot be reimbursed to be an impairment. 5.Share-based compensation plan The Company's grants under its share-based compensation plan with employees are measured based on fair value of the Company's shares at thegrant date and recognized as compensation expense on a straight-line basis over the requisite service period, with a corresponding impact reflectedin additional paid-in capital. Determining the fair value of the share-based awards at the grant date requires judgments. The Company calculated the fair value of each optionaward on the grant date using the Black-Scholes option pricing model. The Black-Scholes model requires the input of highly subjectiveassumptions, including the fair value of the Company's shares, expected volatility, expected term, risk-free interest rate and dividend yield. Fair value of the shares: For 2014 Equity Incentive Plan, the fair value of the shares is based on the quote market price of the Company's shares atthe grant date. For 2012 Equity Incentive Plan, as the Company's shares were not publicly traded the fair value was determined using the marketapproach technique based on the value per share of private placements. The Company had gone in the past through a series of private placements inwhich new shares have been issued. The Company understood that the price paid for those new shares was a fair value of those shares at the time ofthe placement. In January 2012, Globant España S.A. had a capital contribution from a new shareholder, which included cash plus share optionsgranted to the new shareholder, therefore, the Company considered that amount to reflect the fair value of their shares. The fair value of the sharesrelated to this private placement resulted from the following formula: cash minus fair value of share options granted to new shareholder divided bynumber of newly issued shares. The fair value of the share options granted to the new shareholder was determined using the same variables andmethodologies as the share options granted to the employees. After the reorganization in December 2012, shares of Globant S.A (Luxembourg) weresold by existing shareholders in a private placement to WPP. The fair value of the shares related to this private placement results from the totalamount paid by WPP to the existing shareholders. Expected volatility: Since January 1, 2018 the expected volatility of the Company's shares is calculated by using the average share price volatilityof the Company since January 1, 2016 to the date of grant. Before 2018, as the Company did not have sufficient trading history for the purpose ofvaluing the share options, the expected volatility of their shares was estimated by using the average historic price volatility of the NASDAQ 100Telecommunication Index. F-40 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) Expected term: The expected life of options represents the period of time the granted options are expected to be outstanding. Risk free rate: The risk-free rate for periods within the contractual life of the option is based on the U.S. Federal Treasury yield curve with maturitiessimilar to the expected term of the options. Dividend yield: The Company has never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeablefuture. Consequently, the Company used an expected dividend yield of zero. 6.Call option over non-controlling interest As of December 31, 2017, the Company held a call option to acquire the 33.27% of the remaining interest in Dynaflows S.A., which could beexercised from October 22, 2020 until October 21, 2021. The Company calculated the fair value of this option using the Black-Scholes optionmodel. The Black-Scholes model requires the input of highly subjective assumptions, including the expected volatility, maturity, risk-free interestrate, value of the underlying asset and dividend yield. Expected volatility: The Company has considered annualized volatility as multiples of EBITDA and Revenue of publicly traded companies in thetechnology business in the U.S., Europe and Asia since 2008. Maturity: The combination between the call and put options (explained in note 24.3) implied that, assuming no liquidity restrictions as part of theCompany at the moment that the option was exercisable and considering that both parties wanted to maximize their benefits, the Company wouldacquire the minority shareholders shares at the date that this option was exercisable. Therefore, the Company has assumed that the maturity date ofcall option is October 22, 2020. Risk free rate: The risk-free rate for periods within the contractual life of the option was based on the Argentinean bonds (BONAR) with a quote inthe U.S. market with maturities similar to the expected term of the option. Value of the underlying assets: The Company considered a multiple of EBITDA and Revenue resulting from the implied multiple in Dynaflowsadjusted by the lack of control. Dividend yield: The Company did not presently plan to pay cash dividends in the foreseeable future. Consequently, the Company used an expecteddividend yield of zero. As of December 31, 2018, the Company derecognized the call option (see note 24.3). 7.Recoverability of internally generated intangible assets During the year, the Company considered the recoverability of its internally generated intangible asset which are included in the consolidatedfinancial statements as of December 31, 2018 and 2017 with a carrying amount of 7,855 and 6,395, respectively. F-41 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) A detailed recoverability analysis has been carried out by the Company, considering both, revenue from customers in case of the assets sold to thirdparties and internal usage for those assets that are used internally, and, as a result, the Company has recognized an impairment of 306 as ofDecember 31, 2018. In 2017 and 2016 no impairment losses were recorded. 8.Fair value measurement and valuation processes Certain assets and liabilities of the Company are measured at fair value for financial reporting purposes. In estimating the fair value of an asset or a liability, the Company uses market-observable data to the extent it is available. Where Level 1 inputs arenot available, the Company estimates the fair value of an asset or a liability by converting future amounts (e.g. cash flows or income and expenses)to a single current (i.e. discounted) amount. If necessary the Company engages third party qualified valuers to perform the valuation. Informationabout the valuation techniques and inputs used in determining the fair value of various assets and liabilities are disclosed in note 28.8. 9.Useful lives of property, equipment and intangible assets The Company reviews the estimated useful lives of property, equipment and intangible assets at the end of each reporting period. The Companydetermined that the useful lives of the assets included as property, equipment and intangible assets are in accordance with their expected lives. 10.Provision for contingencies Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that theCompany will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reportingperiod, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated tosettle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized asan asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. 11.Recoverability of intangible assets acquired in business combinations, other than goodwill The Company evaluates intangible assets acquired in business combinations for impairment at least annually or more frequently when there is anindication that the asset may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine theextent of the impairment loss (if any). The recoverable amount is the higher of fair value less costs of disposal and value in use. The determination ofthe fair value of intangible assets acquired in business combinations involves certain judgments and estimates. These judgments can include, but arenot limited to, the cash flows that an asset is expected to generate in the future and the appropriate weighted average cost of capital. Whendetermining the fair value, we utilize the income approach using discounted cash flow. F-42 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) A total amount of 4,708 of impairment loss related to the intangible assets acquired in business combinations was recognized as of December 31,2017 and is included as other operating expenses. The impairment was recognized as a result of the Company's evaluation of such intangible assets,upon which the Company projected lower future cash flows from the related customer relationships. In 2018 and 2016 no impairment losses wererecorded. NOTE 5 – REVENUE The following tables present the Company’s revenues disaggregated by type of contracts, by revenue source regarding the industry vertical of the client andby currency. The Company provides technology services to enterprises in a range of industry verticals including media and entertainment, travel andhospitality, professional services, technology and telecommunications, banks, financial services and insurance and consumer, retail and manufacturing,among others. The Company understands that disaggregating revenues into these categories achieves the disclosure objective to depict how the nature,amount, timing, and uncertainty of revenues may be affected by economic factors. However, this information is not considered by the chief operatingdecision-maker to allocate resources and in assessing financial performance of the Company. As noted in the business segment reporting information in note25, the Company operates in a single operating and reportable segment. For the year ended December 31, By Industry vertical 2018 2017 2016 Media and Entertainment 133,093 99,640 67,912 Travel & Hospitality 89,212 68,400 63,414 Banks, Financial Services and Insurance 114,439 94,994 59,786 Technology & Telecommunications 67,310 60,648 51,378 Professional Services 52,318 40,660 42,286 Consumer, Retail & Manufacturing 54,087 36,025 28,710 Other Verticals 11,851 13,072 9,370 TOTAL 522,310 413,439 322,856 For the year ended December 31, By Currency 2018 2017 2016 United States dollar (USD) 447,314 354,824 290,636 European euro (EUR) 30,087 23,518 12,060 Pound sterling (GBP) 6,550 4,107 4,988 Argentine peso (ARS) 20,651 12,856 9,948 Mexican peso (MXN) 11,711 6,942 — Others 5,997 11,192 5,224 TOTAL 522,310 413,439 322,856 F-43 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) For the year ended December 31, By Contract Type 2018 2017 2016 Time and material contracts 431,295 376,718 297,476 Fixed-price contracts 90,980 36,687 25,349 Others 35 34 31 TOTAL 522,310 413,439 322,856 NOTE 6 – COST OF REVENUES AND SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 6.1 - Cost of revenues For the year ended December 31, 2018 2017 2016 Salaries, employee benefits and social security taxes (293,171) (239,013) (176,320)Shared-based compensation expense (4,248) (5,666) (917)Depreciation and amortization expense (4,022) (4,339) (4,281)Travel and housing (6,623) (6,631) (6,586)Office expenses (2,082) (1,692) (1,084)Professional services (5,248) (5,005) (1,754)Promotional and marketing expenses (1,575) (244) (170)Recruiting, training and other employee expenses (1,382) (415) (216)Taxes (203) (166) (67)TOTAL (318,554) (263,171) (191,395) 6.2 - Selling, general and administrative expenses For the year ended December 31, 2018 2017 2016 Salaries, employee benefits and social security taxes (47,805) (41,956) (29,842)Shared-based compensation expense (8,665) (8,798) (2,703)Rental expenses (17,185) (13,739) (12,032)Office expenses (11,602) (11,800) (10,200)Professional services (13,754) (9,885) (7,599)Travel and housing (6,259) (4,460) (5,054)Taxes (6,126) (6,140) (5,010)Depreciation and amortization expense (16,521) (11,789) (6,637)Recruiting, training and other employee expenses (1,507) (941) (761)Promotional and marketing expenses (3,763) (1,305) (1,123)TOTAL (133,187) (110,813) (80,961) F-44 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) NOTE 7 – FINANCE INCOME / EXPENSE For the year ended December 31, 2018 2017 2016 Finance income Interest gain 407 479 60 Gain arising from financial assets measured at fair value through PL 3,869 923 3,619 Gain arising from financial assets measured at fair value through OCI (*) 258 240 6,325 Foreign exchange gain 6,884 6,314 6,211 Subtotal 11,418 7,956 16,215 Finance expense Interest expense on borrowings (152) (95) (41)Loss arising from financial assets measured at fair value through PL (1,106) (620) (2,966)Foreign exchange loss (14,321) (9,043) (14,831)Other interest (525) (788) (776)Other (864) (490) (613)Subtotal (16,968) (11,036) (19,227)TOTAL (5,550) (3,080) (3,012) (*) As of December 31, 2018 and 2017 includes 12 and 27, respectively, related to the gain recognized as Other comprehensive income as of December 31,2017 and 2016, respectively. NOTE 8 – INCOME TAXES 8.1 – INCOME TAX RECOGNIZED IN PROFIT AND LOSS For the year ended December 31, 2018 2017 2016 Tax expense: Current tax expense (23,324) (14,053) (15,057)Deferred tax gain (1) 7,456 5,972 730 TOTAL INCOME TAX EXPENSE (15,868) (8,081) (14,327) (1)As of December 31, 2017, includes 1,004 of deferred tax gain related to changes in tax rates. Substantially all revenues are generated in the U.S. and United Kingdom through subsidiaries located in those countries. The Company´s workforce is mainlylocated in Latin America and to a lesser extent in India and U.S. The following table provides a reconciliation of the statutory tax rate to the effective tax rate. As the operations of the Argentine subsidiaries are the mostsignificant source of net taxable income of the Company, the following reconciliation has been prepared using the Argentine tax rate: F-45 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) For the year ended December 31, 2018 2017 2016 Profit before income tax 67,464 38,544 50,189 Tax rate (note 3.7.1.1) 30% 35% 35%Income tax expense (20,239) (13,490) (17,566) Permanent differences Argentine Software Promotion Regime (note 3.7.1.1) 6,844 3,541 7,189 Effect of different tax rates of subsidiaries operating in countries other than Argentina 4,352 2,019 1,069 Non-deductible expenses 1,130 1,187 2,301 Tax loss carry forward not recognized (1,462) (374) (878)Exchange difference (8,777) (860) (6,593)Other 2,284 (104) 151 INCOME TAX EXPENSE RECOGNIZED IN PROFIT AND LOSS (15,868) (8,081) (14,327) 8.2 – DEFERRED TAX ASSETS As of December 31, 2018 2017 Share-based compensation plan 4,731 5,772 Provision for vacation and bonus 6,624 1,309 Intercompany trade payables 2,207 3,126 Property and equipment 716 756 Goodwill (1,005) (479)Contingencies 546 — Others 1,236 297 Loss carryforward (1) 1,861 2,405 TOTAL DEFERRED TAX ASSETS 16,916 13,186 (1)As of December 31, 2018 and 2017, the detail of the loss carryforward is as follows: 2018 2017Company Losscarryforward Expiration date Losscarryforward Expiration dateGlobant S.A. 547 does not expire 737 does not expireDynaflows S.A. 96 2020 80 2020Globant Brasil Consultoría Ltda. (2) 887 does not expire 1,219 does not expireWe Are London Limited 116 does not expire 253 does not expireSistemas UK Limited 215 does not expire 116 does not expire 1,861 2,405 (2)The amount of the carryforward that can be utilized for Globant Brasil Consultoría Ltda. is limited to 30% of taxable income in each carryforward year. F-46 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) As of December 31, 2018, no deferred tax liability has been recognised on investments in subsidiaries. The Company has concluded it has the ability andintention to control the timing of any distribution from its subsidiaries and it is probable that will be no reversal in the foreseeable future in a way that wouldresult in a charge to taxable profit. The roll forward of the deferred tax assets/(liabilities) presented in the consolidated financial position is as follows: 2018 Openingbalance Recognised inprofit or loss(*) Recognised inothercomprehensive Recogniseddirectly inequity Acquisitions/disposals Closingbalance Deferred tax assets/(liabilities) in relation to: Share-based compensation plan 5,772 915 — 2,367 (4,323) 4,731 Provision for vacation and bonus 1,309 5,315 — — — 6,624 Intercompany trade payables 3,126 (919) — — — 2,207 Property and equipment 756 (40) — — — 716 Goodwill (479) (526) — — — (1,005)Contingencies — 546 — — — 546 Others 297 939 — — — 1,236 Subtotal 10,781 6,230 — 2,367 (4,323) 15,055 Loss carryforward 2,405 321 (165) — (700) 1,861 TOTAL 13,186 6,551 (165) 2,367 (5,023) 16,916 (*)Includes foreign exchange loss of 905. 2017 Openingbalance Recognised inprofit or loss Recognised inothercomprehensive Recogniseddirectly inequity Acquisitions/disposals Closingbalance Deferred tax assets/(liabilities) in relation to: Share-based compensation plan 4,919 1,026 — 1,400 (1,573) 5,772 Provision for vacation and bonus 1,339 (30) — — — 1,309 Intercompany trade payables — 3,126 — — — 3,126 Property and equipment (298) 1,054 — — — 756 Goodwill (169) (310) — — — (479)Contingencies 31 (31) — — — — Others 130 167 — — — 297 Subtotal 5,952 5,002 — 1,400 (1,573) 10,781 Loss carryforward 1,739 970 — — (304) 2,405 TOTAL 7,691 5,972 — 1,400 (1,877) 13,186 F-47 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) NOTE 9 – EARNINGS PER SHARE The earnings and weighted average number of shares used in the calculation of basic and diluted earnings per share are as follows: For the year ended December 31, 2018 2017 2016 Net income for the year attributable to owners of the Company 51,677 30,539 35,876 Weighted average number of shares (in thousands) for the purpose of basic earnings per share 35,746 34,919 34,402 Weighted average number of shares (in thousands) for the purpose of diluted earnings per share 36,685 36,094 35,413 BASIC EARNINGS PER SHARE $1.45 $0.87 $1.04 DILUTED EARNINGS PER SHARE $1.41 $0.84 $1.01 The following potential ordinary shares are anti-dilutive and are therefore excluded from the weight average number of ordinary shares for the purpose ofdiluted earnings per share: For the year ended December 31, 2018 2017 2016 Shares deemed to be issued in respect of employee options 205,940 603,159 1,021,250 NOTE 10 – INVESTMENTS 10.1 – Investments As of December 31, Current 2018 2017 Mutual funds (1) 4,050 7,620 Bills issued by the Argentine Central Bank ("LEBACs") (2) — 527 Bills issued by the Treasury of the Argentine Republic ("LETEs") (2) 1,015 — Bills issued by the Treasury Department of the U.S. ("T-Bills") (2) 3,493 — Capitalizable bills issued by the Treasury of the Argentine Republic ("LECAPs") (2) 77 — TOTAL 8,635 8,147 (1)Measured at fair value through profit or loss.(2)Measured at fair value through other comprehensive income. As of December 31, Non current 2018 2017 Contribution to risk funds (3) 527 — TOTAL 527 — (3)On December 27, 2018, the Company signed an agreement pursuant to which the Company made a contribution to the risk fund of a Mutual GuaranteeCompany. Such contribution accrues an interest which is collectible on a quarterly basis. As of December 31, 2018, the Company has recorded 527 as anon current investment, measured at amortised cost. F-48 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) 10.2 – Investments in associates CHVG investment As of December 31, 2018 and 2017, the Company owns the 40% of total shares of CHVG S.A. ("CHVG") and accounted for this investment using the equitymethod. On January 15, 2019, the Company sold the shares of CHVG S.A for a total amount of 10 (ARS 390). Collokia investment As of December 31, 2017, the Company has a 19.5% of participation in Collokia LLC for an amount of 800. On February 25, 2016, the Company signed a subscription agreement with Collokia LLC, through which Collokia LLC agreed to increase its capital byissuing 55,645 preferred units, from which the Company acquired 20,998 at the price of $23.81 per share for a total amount of 500. After this subscription, theCompany has a 19.5% of participation in Collokia LLC for a total amount of 800 and accounted for this investment using the equity method considering thatthe Company has significant influence over the operating and governance decisions of Collokia LLC, as the participation in the board of director, theapproval of budget and business plan, among other decisions. As of December 31, 2018, indications that the investment in Collokia may not be recovered arose and the Company performed an impairment test. As aconsequence, an impairment loss 800 was recognized and is included in Other income, net. Acamica investment On January 26, 2016, the Company signed a subscription agreement with Ignacio Moreno, Tomás Escobar, Gonzalo Orsi and Juan Badino (jointly "theFounders"); Fitory S.A., a company organized under the laws of Uruguay; Wayra Argentina S.A., a corporation organized under the laws of Argentina;Stultum Pecuniam Ventures LLC, a limited liability company organized under the laws of the state of Washington, United States; Ms. Eun Young Hwang("Rebecca"); Acamica S.A., a company organized under the laws of Argentina ("Acamica Argentina") and Acamica Inc, a corporation organized under thelaws of the state of Delaware, United States ("Acamica U.S." and together with Acamica Argentina, the "Acamica Group Companies") whereas the Foundersown 100% of the capital share of Acamica Group Companies and formed a new company organized under the laws of Spain ("Holdco") which owned 100% ofthe capital shares of Acamica U.S. and 97% of the capital shares of Acamica Argentina. On January 3, 2017, pursuant to the terms of the subscription agreement the Company made a capital contribution of 750 to the Acamica Tecnologías S.L.(previously referred as Holdco) in exchange for a 20% ownership stake in the entity. On May 17, 2018, the Company signed a new share purchase andsubscription agreement with Fitory S.A., Stultum Pecunian Ventures, LLC, Wayra Argentina S.A., Eun Young Hwang and Acámica Tecnologías S.A. Pursuantto such agreement, the Company purchased additional shares for an amount of 3,250. As of December 31, 2018, the Company has a 47.5% of participation inAcámica Tecnologías S.L. The investment is accounted using the equity method considering that the Company has significant influence over the operatingand governance decisions of Acamica Tecnologías S.L., as the participation in the board of director, the approval of budget and business plan, among otherdecisions. F-49 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) The Company's share on the profit or loss or other comprehensive income of all the above-mentioned investments for the years ended December 31, 2018,2017 and 2016 were not significant individually nor in the aggregate, except for the impairment recognized in Collokia in 2018. NOTE 11 – TRADE RECEIVABLES As of December 31, 2018 2017 Accounts receivable (1) 101,754 71,846 Unbilled revenue 13,101 8,841 Subtotal 114,855 80,687 Less: Allowance for doubtful accounts (3,957) (609)TOTAL 110,898 80,078 (1)Includes amounts due from related parties of 993 and 463 as of December 31, 2018 and 2017 (see note 22.1). Allowance for doubtful accounts The following tables detail the risk profile of trade receivables based on the Company's provision matrix as of December 31, 2018 and 2017. December 31, 2018 Trade receivables - days past due < 30 31 - 60 61 - 90 91-120 > 120 Total Expected credit loss rate 0.06% 1.90% 4.40% 11.90% 85.90% Estimated total gross carrying amount at default 17,815 6,843 2,814 2,778 3,801 34,051 Lifetime ECL 107 130 124 331 3,265 3,957 December 31, 2017 Trade receivables - days past due < 30 31 - 60 61 - 90 91-120 > 120 Total Expected credit loss rate 0.19% 0.84% 2.74% 8.58% 100.00% Estimated total gross carrying amount at default 18,513 4,140 878 902 438 24,871 Lifetime ECL 35 35 24 77 438 609 The movements in the allowance are calculated based on lifetime expected credit loss model for 2018 and incurred loss model for 2017 and 2016. F-50 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) The following table shows the movement in ECL that has been recognised for trade receivables in accordance with the simplified approach: As of December 31, 2018 2017 2016 Balance at beginning of year (609) (617) (438)Additions, net of recoveries (3,421) 5 (928)Write-off of receivables 73 3 749 Balance at end of year (3,957) (609) (617) The average credit period on sales is 65 days. No interest is charged on trade receivables. The Company always measures the loss allowance for tradereceivables at an amount equal to lifetime ECL. The expected credit losses on trade receivables are estimated using the provision matrix by reference to pastdefault experience of the debtor and an analysis of the debtor's current financial position, adjusted for factors that are specific to the debtors, generaleconomic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of conditions at thereporting date. NOTE 12 – OTHER RECEIVABLES As of December 31, 2018 2017 Other receivables Current Tax credit - VAT 5,202 3,984 Tax credit - Software Promotion Regime (note 3.7.1.1) 3,555 4,813 Income tax credits 1,410 2,869 Other tax credits 276 153 Advances to suppliers 611 155 Prepaid expenses 3,982 1,931 Loans granted to employees 49 186 Other 256 266 TOTAL 15,341 14,357 F-51 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) As of December 31, 2018 2017 Non-current Advances to suppliers (note 21) 28,799 25,498 Tax credit - VAT 1,031 3,325 Income tax credits 1,259 2,129 Tax credit - Software Promotion Regime (note 3.7.1.1) 749 132 Other tax credits 170 105 Guarantee deposits 1,681 1,347 Loans granted to employees 208 — Prepaid expenses 475 — Other 500 500 Subtotal 34,872 33,036 Allowance for impairment of tax credits (675) (1,300)TOTAL 34,197 31,736 Roll forward of the allowance for impairment of tax credits As of December 31, 2018 2017 Balance at beginning of year 1,300 — Additions (note 4.4) 48 1,586 Foreign exchange (673) (286)Balance at end of year 675 1,300 F-52 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) NOTE 13 – PROPERTY AND EQUIPMENT Property and equipment as of December 31, 2018 included the following: Computerequipmentand software Furnitureand officesupplies Officefixtures Vehicles Buildings Lands Propertiesunderconstruction Total Useful life (years) 3 5 3 5 50 Cost Values at beginning of year 23,381 5,810 33,275 37 6,981 2,354 11,167 83,005 Additions related to business combinations (note24) — 5 43 — — — — 48 Additions 7,055 719 1,083 — — — 10,065 18,922 Transfers 6 845 9,596 — 6,420 — (16,867) — Disposals (353) (229) (2,005) — — — — (2,587)Translation (36) (8) (88) — — — — (132)Values at end of year 30,053 7,142 41,904 37 13,401 2,354 4,365 99,256 Depreciation Accumulated at beginning of year 14,609 3,694 20,421 13 389 — — 39,126 Additions 4,641 832 5,529 8 220 — — 11,230 Disposals (346) (224) (1,868) — — — — (2,438)Translation (31) (6) (85) — — — — (122)Accumulated at end of year 18,873 4,296 23,997 21 609 — — 47,796 Carrying amount 11,180 2,846 17,907 16 12,792 2,354 4,365 51,460 Property and equipment as of December 31, 2017 included the following: Computerequipmentand software Furnitureand officesupplies Officefixtures Vehicles Buildings Lands Propertiesunderconstruction Total Useful life (years) 3 5 3 5 50 Cost Values at beginning of year 18,097 5,117 29,723 34 6,981 2,354 3,899 66,205 Additions related to business combinations (note24) 116 55 3 3 — — 15 192 Additions 5,244 324 2,275 — — — 9,687 17,530 Transfers 98 477 1,431 — — — (2,006) — Disposals (166) (222) (152) — — — (428) (968)Translation (8) 59 (5) — — — — 46 Values at end of year 23,381 5,810 33,275 37 6,981 2,354 11,167 83,005 Depreciation Accumulated at beginning of year 11,219 3,136 15,921 4 249 — — 30,529 Additions 3,529 717 4,658 9 140 — — 9,053 Disposals (133) (218) (149) — — — — (500)Translation (6) 59 (9) — — — — 44 Accumulated at end of year 14,609 3,694 20,421 13 389 — — 39,126 Carrying amount 8,772 2,116 12,854 24 6,592 2,354 11,167 43,879 F-53 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) NOTE 14 – INTANGIBLE ASSETS Intangible assets as of December 31, 2018 included the following: Licenses and internaldevelopments Customerrelationships Non-competeagreement Total Useful life (years) 5 1 - 4 3 Cost Values at beginning of year 27,381 10,153 586 38,120 Additions related to business combinations (note 24) — 173 — 173 Additions from separate acquisitions 3,480 — — 3,480 Additions from internal development 6,104 — — 6,104 Translation (8) 570 — 562 Values at end of year 36,957 10,896 586 48,439 Amortization and impairment Accumulated at beginning of year 17,325 8,844 586 26,755 Additions 8,556 757 — 9,313 Impairment loss recognised in profit or loss (note 4.7) 306 — — 306 Translation (8) 295 — 287 Accumulated at end of year 26,179 9,896 586 36,661 Carrying amount 10,778 1,000 — 11,778 Intangible assets as of December 31, 2017 included the following: F-54 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) Licenses and internaldevelopments Customerrelationships Non-competeagreement Total Useful life (years) 5 3 - 10 3 Cost Values at beginning of year 18,591 9,634 586 28,811 Additions related to business combinations (note 24) 7 517 — 524 Additions from separate acquisitions 3,429 — — 3,429 Additions from internal development 5,355 — — 5,355 Translation (1) 2 — 1 Values at end of year 27,381 10,153 586 38,120 Amortization and impairment Accumulated at beginning of year 11,935 2,499 586 15,020 Additions 5,391 1,684 — 7,075 Impairment loss recognised in profit or loss (note 4.11) — 4,708 — 4,708 Translation (1) (47) — (48)Accumulated at end of year 17,325 8,844 586 26,755 Carrying amount 10,056 1,309 — 11,365 NOTE 15 – GOODWILL As of December 31, 2018 2017 Cost Balance at beginning of year 98,926 65,180 Additions related to new acquisitions (note 24) 6,244 33,699 Translation (324) 47 Balance at end of year 104,846 98,926 NOTE 16 – TRADE PAYABLES As of December 31, 2018 2017 Suppliers 6,137 7,258 Advanced payments from customers 291 — Expenses accrual 11,150 4,382 TOTAL 17,578 11,640 F-55 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) NOTE 17 – PAYROLL AND SOCIAL SECURITY TAXES PAYABLE As of December 31, 2018 2017 Salaries 4,434 5,069 Social security tax 7,548 6,755 Provision for vacation, bonus and others 46,181 28,378 Directors fees 315 216 Other 57 54 TOTAL 58,535 40,472 NOTE 18 – BORROWINGS As of December 31, 2018 2017 Current Bank and financial institutions (note 26) — 6,011 TOTAL — 6,011 NOTE 19 – TAX LIABILITIES As of December 31, 2018 2017 Income tax 4,526 3,328 Periodic payment plan 28 13 VAT payable 1,208 861 Software Promotion Law - Annual and monthly rates 523 231 Wage withholding taxes 558 279 Other 556 541 TOTAL 7,399 5,253 NOTE 20 – PROVISIONS FOR CONTINGENCIES The Company is subject to legal proceedings and claims which arise in the ordinary course of its business. The Company has recorded a provision for laborand regulatory claims where the risk of loss is considered probable. The final resolution of these potential claims is not likely to have a material effect on theresults of operations, cash flow or the financial position of the Company. Breakdown of reserves for lawsuits claims and other disputed matters include the following: F-56 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) As of December 31, 2018 2017 Reserve for labor claims 678 49 Reserve for regulatory claims 2,184 1,130 TOTAL 2,862 1,179 Roll forward is as follows: As of December 31, Reserve for labor claims 2018 2017 2016 Balance at beginning of year 49 1,138 650 Additions 926 187 1,343 Recovery — — (344)Utilization of provision for contingencies (222) (1,288) (400)Foreign exchange (75) 12 (111)Balance at end of year 678 49 1,138 As of December 31, Reserve for regulatory claims 2018 2017 2016 Balance at beginning of year 1,130 807 — Additions (1) 1,144 340 — Additions related to business combinations (note 24) — — 817 Utilization of provision for contingencies — (32) — Foreign exchange (90) 15 (10)Balance at end of year 2,184 1,130 807 (1)Certain of our non- U.S. subsidiaries are currently under examination by the Internal Revenue Service ("IRS") regarding payroll and employment taxesprimarily in connection with services performed by employees of certain of our subsidiaries in the United States from 2013 to 2015. On May 1, 2018, theIRS issued 30-day letters to those subsidiaries proposing total assessments plus penalties and interest for employment taxes for those years. Oursubsidiaries filed protests of these proposed assessments with the IRS which have been sent to the Office of Appeals within the IRS for furtherexamination. NOTE 21 – ADVANCES TO ACQUIRE BUILDINGS On December 4, 2015, our Argentine subsidiaries Sistemas Globales S.A. and IAFH Global S.A., entered into a Purchase Agreement with IRSA Inversiones yRepresentaciones Sociedad Anónima (“IRSA”) to acquire four floors representing approximately 4,896 square meters in a building to be constructed in apremium business zone of the City of Buenos Aires, Argentina. F-57 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) In consideration for the property the subsidiaries agreed to pay IRSA the following purchase price: (i) AR$ 180,279 on the date of signing of the purchaseagreement, equivalent to 18,779 at such date; (ii) 8,567 during a three-year term beginning in June 2016; and (iii) the remaining 3,672 at the moment oftransfer of the property ownership, after finalization of the building. As explained in note 4.4, during the years 2018 and 2017, the Company estimated the future use of some tax credits and concluded that the value-added taxrelated to the advance payments to IRSA which amounted to 363 and 1,660, respectively, will not be recoverable and were included as advances to supplierspaid to IRSA. As of December 31, 2018 and 2017, 28,799 and 25,498 are included in these consolidated financial statements as other receivables non-current. NOTE 22 – RELATED PARTIES BALANCES AND TRANSACTIONS 22.1 – Related parties The Company provides software and consultancy services to certain WPP subsidiaries and other related parties. WPP was a shareholder of the Company withsignificant influence, until it sold its shares of the Company on June 20, 2018. The Company also provides software services to Morgan Stanley, which holdsa share over 5% on the Company. Outstanding receivable balances as of December 31, 2018 and 2017 are as follows: As of December 31, 2018 2017 Grey Global Group Inc. — 104 Group M Worldwide Inc — 44 JWT — 77 Kantar Retail — 23 Mercado Libre S.R.L. 440 9 TNS 56 206 Morgan Stanley Investment Management Inc. 497 — Total 993 463 During the year ended December 31, 2018, 2017 and 2016, the Company recognized revenues for 5,937, 5,590 and 6,462, respectively, as follows: F-58 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) For the year ended December 31, 2018 2017 2016 Added Value — 13 790 Burson Marsteller — — 59 Grey Global Group Inc. 472 1,238 1,182 Group M Worldwide Inc 102 521 822 IBOPE Argentina — — 244 JWT 204 1,043 919 Kantar Group 216 791 674 Kantar Retail 39 93 93 Ogilvy & Mather Brasil Comunication 82 1,677 611 JP Morgan Chase & Co. 1,784 — — JP Morgan Chase S.A. 48 — — JP Morgan Services Argentina S.R.L. 1,503 — — TNS 8 30 579 Morgan Stanley Investment Management Inc. 964 — — Young & Rubicam — — 366 Mercado Libre S.R.L. 515 143 100 Mirum Inc. — 41 — Coretech — — 23 Total 5,937 5,590 6,462 F-59 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) 22.2 – Loan agreement to Collokia On May, 5, 2017, the Company and Collokia LLC, signed a loan agreement whereby the Company provides a financing facility of 100. Interest on the entireoutstanding principal balance is computed at an annual rate of 2.8%. Collokia shall repay the loan in full within 18 months from the date that this agreementhas been signed off. The Company has the right to convert any portion of the outstanding principal into preferred units of Collokia. As of December 31, 2018and 2017, the carrying amount of the loan agreement amounted to 106 and 100, respectively, and was included as other financial assets current and otherfinancial assets non current, respectively. 22.3 – Compensation of key management personnel The remuneration of directors and other members of key management personnel during each of the three years are as follows: For the year ended December 31, 2018 2017 2016 Salaries and bonuses 5,140 4,507 4,432 Total 5,140 4,507 4,432 The remuneration of directors and key executives is determined by the Board of Directors based on the performance of individuals and market trends. During 2016, the Company granted 260,000 and 82,500 share options at a strike price of $29.01 and $32.36, respectively.During 2017, the Company granted 12,836 and 62,162 restricted stock units at a grant price of $34.96 and $37.00, respectively.During 2018, the Company granted 115,000 and 6,000 share options at a strike price of $46.00 and $50.92, respectively.During 2018, the Company granted 93,000, 10,000 and 4,054 restricted stock units at a grant price of $46.00, $50.92 and $45.50, respectively. NOTE 23 – EMPLOYEE BENEFITS 23.1 – Share-based compensation plan Share-based compensation expense for awards of equity instruments to employees and non-employee directors is determined based on the grant-date fairvalue of the awards. Fair value is calculated using Black & Scholes model. In June 2012, the Company decided to replace its Stock Appreciation Rights ("SAR") program with a new share-based compensation program. The 2012share-based compensation agreement was signed by the employees on June 30, 2012, considering the actual grant dates of the SARs to employees. Each employee share option converts into one ordinary share of the Company on exercise. No amounts are paid or payable by the recipient on receipt of theoption. The options carry neither rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of theirexpiry (seven years after the effective date). F-60 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) All options vested on the date of modification of the plan or all other non-vested options expire within seven years after the effective date or seven years afterthe period of vesting finalizes. In July 2014, the Company adopted a new Equity Incentive Program, the 2014 Plan. Pursuant to this plan, on July 18, 2014, the first trading day of the Company common shares on the NYSE, the Company made the annual grants for 2014Plan to certain of the executive officers and other employees. The grants included share options with a vesting period of 4 years, becoming exercisable a 25%of the options on each anniversary of the grant date through the fourth anniversary of the grant. Share-based compensation expense for awards of equityinstruments is determined based on the fair value of the awards at the grant date. Each employee share option converts into one ordinary share of the Company on exercise. No amounts are paid or payable by the recipient on receipt of theoption. The options carry neither rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of theirexpiry (ten years after the effective date). Under this share-based compensation plan, during the year 2018 and 2017, other share-based compensation agreements were signed for a total of 221,000and 85,000 options granted, respectively. During the year 2017, as part of the 2014 Equity Incentive Plan, the Company granted awards to certain employees in the form of Restricted Stock Units("RSUs"), having a par value of $1.20 each, with a specific period of vesting. Each RSU is equivalent in value to one share of the company´s common stockand represents the Company´s commitment to issue one share of the Company's common stock at a future date, subject to the term of the RSU agreement. Until the RSUs vest, they are an unfunded promise to issue shares of stock to the recipient at some point in the future. The RSUs carry neither rights todividends nor voting rights. RSU's vesting is subject to the condition that the employee must remain in such condition at of the vesting date. The Company may determine a percentage of RSU, as part of the full year compensation package payment. These RSUs agreements have been recorded as Equity Settled transactions in accordance to IFRS 2, and they were measured at fair value of shares at the grantdate. The following shows the evolution of the share options for the years ended at December 31, 2018 and 2017: As of December 31, 2018 As of December 31, 2017 Number ofoptions Weightedaverageexercise price Number ofoptions Weightedaverageexercise price Balance at the beginning of year 2,155,851 23.02 2,658,595 22.21 Options granted during the year 221,000 46.45 85,000 39.69 Forfeited during the year (78,716) 36.89 (249,035) 30.08 Exercised during the year (511,668) 13.76 (338,709) 15.63 Balance at end of year 1,786,467 27.96 2,155,851 23.02 F-61 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) The following shows the evolution of the RSUs for the years ended at December 31, 2018 and 2017: As of December 31, 2018 As of December 31, 2017 Number ofRSU Weightedaveragegrant price Number ofRSU Weightedaveragegrant price Balance at the beginning of year 164,859 37.58 — — RSU granted during the year 564,995 46.29 254,328 37.07 Forfeited during the year (30,783) 44.14 (2,538) 36.59 Issued during the year (163,233) 43.13 (86,931) 36.11 Balance at end of year 535,838 44.70 164,859 37.58 The following tables summarizes the RSU at the end of the year: Grant date Grant price($) Number of RestrictedStock Units Fair value atgrant date ($) Expense as of December31, 2018 ($) (*) 2017 36.30 1,500 54 18 37.00 93,228 3,449 2,068 42.00 6,750 284 109 43.42 — — (34) 2018 46.00 407,750 18,757 3,038 50.92 10,000 509 28 52.74 4,000 211 8 55.07 4,000 220 23 56.87 6,000 341 20 Subtotal 533,228 23,825 5,278 Non employees RSU 2017 38.21 — — 39 2018 46.00 2,174 100 65 57.39 436 25 2 Subtotal 2,610 125 106 Total 535,838 23,950 5,384 The following tables summarizes the share options at the end of the year: F-62 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) Grant date Exerciseprice ($) Number of stockoptions Number of stockoptions vested asof December 31,2018 Fair value atgrant date ($) Fair value vested($) Expense as ofDecember 31,2018 (*) 2006 0.95 1,103 1,103 6 6 8 2007 0.71 — — — — 170 1.40 — — — — 4 2010 2.48 1,304 1,304 5 5 10 3.38 13,223 13,223 44 44 138 2011 2.71 — — — — 42 2013 12.22 24,999 24,999 65 65 — 2014 10.00 281,037 281,037 935 935 569 13.20 — — — — 31 2015 22.77 30,000 30,000 221 221 18 28.31 372,707 228,270 2,581 1,582 1,487 29.34 15,972 15,290 103 103 6 34.20 13,500 9,375 116 81 57 2016 29.01 222,500 92,500 1,534 638 580 32.36 455,612 190,300 3,659 1,542 1,455 2017 43.42 — — — — (30) 38.16 30,000 10,000 273 91 91 36.30 15,000 3,750 127 32 32 2018 44.97 20,000 — 358 — 175 46.00 180,000 — 3,636 — 1,167 55.07 10,000 — 241 — 48 50.92 6,000 — 134 — 14 Subtotal 1,692,957 901,151 14,038 5,345 6,072 Non employees stockoptions 2012 6.77 22,170 22,170 35 35 — 2013 12.22 22,170 22,170 52 52 — 2014 10.00 22,170 22,170 43 43 — 2016 39.37 27,000 13,500 248 124 62 Subtotal 93,510 80,010 378 254 62 Total 1,786,467 981,161 14,416 5,599 6,134 (*)Includes social security taxes. F-63 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) Deferred income tax asset arising from the recognition of the share-based compensation plan amounted to 4,731 and 5,772 for the years ended December 31,2018 and 2017, respectively. 23.2 - Share options exercised and RSU vested during the year: As of December 31, 2018 As of December 31, 2017 Number ofoptions exercised Exerciseprice Number ofoptions exercised Exerciseprice Granted in 2006 9,900 0.95 4,600 0.95 Granted in 2007 200,000 0.71 — — Granted in 2007 616 1.40 800 1.40 Granted in 2010 1,793 2.48 1,623 2.48 Granted in 2010 19,732 3.38 22,377 3.38 Granted in 2011 6,031 2.71 26,194 2.71 Granted in 2012 — — 1,651 6.77 Granted in 2012 — — 3,991 7.04 Granted in 2013 — — 2,395 14.40 Granted in 2014 66,146 10.00 149,337 10.00 Granted in 2014 3,769 13.20 1,918 13.20 Granted in 2015 111,843 28.31 90,787 28.31 Granted in 2015 3,000 34.20 — — Granted in 2015 1,200 29.34 9,911 29.34 Granted in 2016 18,750 29.01 18,750 29.01 Granted in 2016 68,888 32.36 4,375 32.36 Balance at end of the year 511,668 338,709 The average market price of the share amounted to 52.82 and 38.77 for year 2018 and 2017, respectively. The following tables summarizes the RSU vested during the year 2018: F-64 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) As of December 31, 2018 As of December 31, 2017 Number of RSUsvested Grant price Number of RSUsvested Grant price Granted in 2017 500 36.30 37,546 34.96 Granted in 2017 45,906 37.00 49,385 37.00 Granted in 2017 2,671 38.21 — — Granted in 2017 2,250 42.00 — — Granted in 2018 107,463 45.50 — — Granted in 2018 4,443 53.29 — — Balance at end of the year 163,233 86,931 F-65 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) 23.3 - Fair value of share-based compensation granted Determining the fair value of the stock-based awards at the grant date requires judgment. The Company calculated the fair value of each option award on thegrant date using the Black-Scholes option pricing model. The Black-Scholes model requires the input of highly subjective assumptions, including the fairvalue of the Company's shares, expected volatility, expected term, risk-free interest rate and dividend yield. The Company estimated the following assumptions for the calculation of the fair value of the share options: Assumptions Granted in2018 for2014 plan Granted in2017 for2014 plan Granted in2016 for2014 plan Stock price 46.45 39.69 31.89 Expected option life 6 years 6 years 6 years Volatility 40% 19% 20%Risk-free interest rate 3.00% 2.00% 1.95% See Note 4 for a description of the assumptions. NOTE 24 – BUSINESS COMBINATIONS 24.1 Acquisition of Huddle Group On October 11, 2013, the Company entered into a Stock Purchase Agreement to purchase 86.25% of the capital interests of Huddle Investment LLP, acompany organized and existing under the laws of England ("Huddle UK"). Huddle UK owned, directly or indirectly, 100% of the capital stock and votingrights of the following subsidiaries: Huddle Group S.A., a corporation (sociedad anónima) organized and existing under the laws of the Republic ofArgentina; Huddle Group S.A., a corporation (sociedad anónima) organized and existing under the laws of the Republic of Chile; and Huddle Group Corp., acorporation organized and existing under the laws of the State of Washington. The aggregate purchase price under the Stock Purchase Agreement was 8,395. Such purchase price was payable to the Sellers in seven installments. Suchpayments were made as follows: -On October 21, 2013 and November 4, 2013, the Company paid a total of 3,436 including interest.-Second installment: On April 21, 2014, the Company paid a total of 2,156, including interests.-Third installment: Based on the gross revenue and gross profit achieved by the Huddle Group for the year 2013, the Company paid on April 22, 2014,861.-Fourth installment: On October 25, 2014, the Company paid 870, including interests.-Fifth installment: On April 2, 2015, the Company paid 647, including interests.-Sixth installment: On March 31, 2016, the Company paid 187, including interests.-Seventh installment: On October 19, 2018, the Company paid 115, including interests. The consideration transferred for Huddle Group acquisition was calculated as follows: F-66 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) Purchase price Amount Down payment 3,019 Installment payment 5,117(a)(b)Total consideration 8,136 (a)Net present value of future installment payments including interest.(b)The outstanding balance as of December 31, 2017 amounted to 110, classified as current. As of December 31, 2018, the consideration was fully settled. Minority interest purchase agreement On October 11, 2013, the Company entered into a Stock Purchase Agreement to purchase an additional 13.75% of the capital interests of Huddle UK, whichwas amended on October 23, 2014. The consideration for the purchase of the minority interest amounted to 650 and was payable in three installments. Suchpayments were made as follows: -First installment: the amount of 100 was paid on October 23, 2014.-Second installment: the amount of 225 was paid on February 28, 2015.-Third installment: On January 22, 2016, the Company granted 11,213 treasury shares at a price of $27.2 per share to Mr. Spitz to cancel the remainingliability of 305. The Company withholds the remaining amount of 20 as an escrow. As a consequence of this amendment, a call and put option were recalled and the Company increased its percentage of shares in Huddle UK to 100%. Thecarrying amount of the non-controlling interest was adjusted to reflect this transaction. The difference between the amount by which the non-controllinginterest was adjusted, and the fair value of the consideration paid was recognized directly in equity and attributed to the owners of the parent. 24.2 Acquisition of Clarice Technologies On May 14, 2015 ("closing date"), Globant España S.A. acquired Clarice Technologies PVT, Ltd ("Clarice"), a company organized and existing under thelaws of India. Clarice is an innovative software product development services company that offers product engineering and user experience (UX) services andhas operations in the United States and India. As of the closing date, the total headcount of Clarice was 337 employees distributed in India and United States.The purpose of the acquisition is related to the benefit of expected synergies, revenue growth, future market development and the assembled workforce ofClarice. On August 5, 2015 the Company changed the legal name of Clarice to Globant India Private Limited ("Globant India"). The aggregate purchase price under the Stock Purchase Agreement ("SPA") amounted to 20,184. On May 16, 2017, the Company signed an amendment to the SPA. Based on this amendment, purchase price may be subject to adjustments based on thefuture performance of Clarice and was payable to the sellers as follows: 1.First Closing: As of the closing date, the sellers transferred 10,200 shares representing 76.13% of the shares to the Company for an aggregateconsideration of 9,324 paid by the Company to the sellers on May 14, 2015. 2.Staggered Acquisition: The remaining 23.87% of the shares shall be transferred to the Company and the remaining purchase price shall be paid toeach of the Sellers in three tranches, in the following manner, provided that the remaining purchase price paid out to each of the sellers shall be thehigher of the following: F-67 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) 2.1Fair Market Value of such shares, calculated in accordance with the methodology prescribed by the Reserve Bank of India by an appointed charteredaccountant; or 2.2The consideration as detailed below: 2.2.1The second share transfer tranche, comprising 1,249 shares representing 9.32% of the shares of Globant India was transferred by thesellers to the Company on July 15, 2016. Based on the targets achieved by Globant India for the period between May 15, 2015 andMay 15, 2016, the Company paid on July 15, 2016, 4,208 and recognized as of December 31, 2016 a gain of 418 arisen on theremeasurement of the liability, included in "Other income, net". 2.2.2The third Share transfer tranche, comprising 920 of the shares representing 6.87% of the shares of Globant India, was transferred by thesellers to the Company on March, 2018. Based on the targets achieved by Globant India for the period between January 1, 2017 andDecember 31, 2017, the Company paid on March 2018, 3,128. 2.2.3The fourth share transfer tranche comprising the transfer of 550 shares representing 4.11% of the shares of Globant India was transferredby the sellers to the Company on March 14, 2019. Based on the targets achieved by Globant India for the period between January 1,2018 and December 31, 2018, the Company paid on March 14, 2019, 3,135. 2.2.4The fifth share transfer tranche comprising the transfer of 277 shares representing 2.07% of the shares of Globant India shall betransferred by the sellers to the Company no later than on January 31, 2020, in consideration for payment of the minimum share pricefor such shares, defined as 970.78 per share for this tranche, plus an amount of 1,316, subject to the achievement of certain targets byGlobant India. The Company has concluded that as in the same SPA all parties have agreed the transfer of the 100% of the shares of Clarice in different stages, thetransaction should be considered as one, and therefore the Company has accounted the acquisition for the 100% of the shares of Clarice and theconsideration involved is the sum of the amount paid at closing date and the installments payables in years 2016, 2017, 2018, 2019 and 2020. The consideration transferred for Globant India acquisition was calculated as follows: Purchase price Amount Down payment 9,324 Installment payment 2,483(a)Contingent consideration 8,377(a)Total consideration 20,184 (a)As of December 31, 2018 and 2017 included 3,127 and 3,119 as Other financial liabilities current, and 1,527 and 4,497 as Other financial liabilities non-current, respectively. On February 23, 2017, the Company signed an amendment of the SPA with one of the shareholders where they agreed on the acquisition of the shares held bythe employee for an amount of 600 and the termination of the employment agreement. As a consequence of the amendments to the SPA and remeasurement of the fair value of the contingent considerations, the Company recorded a loss of 1,173and a gain of 418 as of December 31, 2017 and 2016, respectively. F-68 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) Clarice sellers' subscription agreement On May 14, 2015, the Company signed two agreements whereas agreed to issue to the subscribers, as detailed below, and the subscribers agree to subscribefrom the Company the number of shares set forth below: First agreement First tranche The first tranche for 38,984 common shares were subscribed by two employees and their spouses for a total amount of 800. Second and third tranches Regarding second tranche, on July 25, 2016, the Company issued 20,896 common shares for an amount of 800. Regarding the third tranche, the Company will issue additional shares at a price equal to the volume weighted average trading price ("VWAP") (derived fromthe trading price of the shares as quoted in the NYSE) for the 60-trading period ending on the second trading day prior to the third tranche issue date. Suchnumbers of shares will be allocated among the subscribers in the proportion in which they were allocated in the First tranche. The number of the third Trancheshares to be issued to each of the subscribers shall be the lower of (i) 80% of the maximum amount of shares that such subscriber is eligible to purchase underapplicable law and (ii) the quotient obtained by dividing 200 by the third tranche 60-day VWAP. Total estimated amount is 400 for third tranche. Second agreement First tranche The first tranche for 4,873 common shares was subscribed by one employee for a total amount of 100. Second and third tranches Regarding second tranche, on July 25, 2016, the Company issued 2,612 common shares for an amount of 100. Based on the amendment to the SPA signed on February 23, 2017, third tranche was canceled and no shares were issued. As of December 31, 2016, 23,508 shares were issued for a total amount of 900. Both agreements are forward contracts to issue and sell a variable number of shares for a fixed amount of cash, thus according to IAS 32, the Companyrecorded a financial liability and a financial asset for the shares to be issued and the payment to be received, respectively, for an amount of 400 and 800 as ofDecember 31, 2018 and 2017, respectively. F-69 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) 24.3 Acquisition of Dynaflows On October 22, 2015, the Company acquired from Alfonso Amat, Wayra Argentina S.A., BDCINE S.R.L., Laura A. Muchnik, Facundo Bertranou, Mora Amatand Fabio Palioff (jointly "the Sellers) 9,014 shares, which represents 38.5% of the capital stock of Dynaflows S.A. Before this acquisition, the Company had22.7% of the capital stock of Dynaflows and classified it as investment in associates. Through this transaction, the Company gained the control of DynaflowsS.A. As a consequence, the Company accounted for this acquisition in accordance with IFRS 3 as a business combination achieved in stages and as such, theCompany remeasured its previously held equity interest in Dynaflows at its acquisition date fair value and recognize the resulting gain for an amount of 625in Other income and expense, net. The aggregate purchase price under the Stock Purchase Agreement ("SPA") amounted to ARS 13,316 (1,402) and 414, payable in two installments, asfollowing: - The first installment amounted to ARS 13,316 (1,402) paid at the closing date. - The second installment amounted to 414 paid on April 22, 2016. On the same date, the Company made a capital contribution of 868 (ARS 8,250) to Dynaflows by issuing 9,190 shares. After both agreements and considering the previous equity interest held by the Company of 22.7%, the Company held the 66.73% of participation inDynaflows. The consideration transferred for Dynaflows acquisition was calculated as follows: Purchase price Amount Down payment 1,402 Installment payment 414 Total consideration 1,816(a) (a)As of December 31, 2018 and 2017 the consideration was fully settled. F-70 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) Minority interest purchase agreement On October 22, 2015, the Company entered into a Shareholders Agreement (the "Minority Interest SHA") with Alfonso Amat and Mora Amat (the "non-controlling shareholders") to agree on a put option over the 33.27% of the remaining interest of Dynaflows effective on the third or fifth anniversary from thedate of acquisition, pursuant to which the non-controlling shareholders shall have the right (the "Put Option") to sell and the Company shall purchase all, butnot less than all the shareholder's non-controlling interest. The aggregate purchase price to be paid by the Company upon exercise of the Put Option shall beequal to the price resulting from valuing the Company at the following: In case the put option is exercised in the third anniversary, 50% of the total of: 1) eight (8) times EBITDA multiplied by 0.50 according to the Company'smost recent audited annual financial statements at the time of the delivery of such exercise of the Put Option; plus 2) four (4) times Revenue multiplied by0.50 according to the Company's most recent audited annual financial statements at the time of the delivery of such exercise of the Put Option. In case the put option is exercised in the fifth anniversary, the total of: 1) eight (8) times EBITDA multiplied by 0.50 according to the Company's most recentaudited annual financial statements at the time of the delivery of such exercise of the Put Option; plus 2) four (4) times Revenue multiplied by 0.50 accordingto the Company's most recent audited annual financial statements at the time of the delivery of such exercise of the Put Option. The Company implemented the IFRIC Interpretation DI/2012/2 "Put Options Written on Non-controlling Interests" issued in May 2012 that requires afinancial liability initially measured at the present value of the redemption amount in the parent's consolidated financial statements for written puts on non-controlling interest. Subsequently, the financial liability was measured in accordance with IAS 39 and IFRS 9. On October 26, 2018, the non-controlling shareholders exercised such option and the Company paid a total amount of 1,186 based on the EBITDA andRevenue of Dynaflows for the twelve months ended on September, 2018. Given that the exercise of the option occurred earlier than expected, a gain of 1,611was recognized as of December 31, 2018 and disclosed as Other income, net. As of December 31, 2017, the Company has recognized as non-current other financial liabilities the written put option for an amount of 2,797, equal to thepresent value of the amount that could be required to be paid to the counterparty discounted at an interest rate of 3.5%. Changes in the measurement of thegross obligation were recognized in profit or loss. Pursuant to the shareholder's agreement, the Company also agreed on a call option over non-controlling interest effective after the fifth anniversary from theclosing date till the sixth anniversary from the closing date pursuant to which the Company shall have the right to purchase and the non-controlling interestshareholders shall sell all but not less than all the shareholder's non-controlling interest then owned by the non-controlling shareholders. The Companycalculated the fair value of call option on the grant date using the Black-Scholes option pricing model. The Black-Scholes model requires the input of highlysubjective assumptions, including the maturity, exercise price, spot, risk-free and standard deviation. See Note 4 for a description of the assumptions. As of December 31, 2018, the call option was derecognized and a loss of 455 was recognized as Other income, net. The carrying amount of the non-controlling interest was adjusted to reflect this transaction. The difference between the amount by which the non-controllinginterest was adjusted, and the fair value of the consideration paid was recognized directly in equity and attributed to the owners of the parent. F-71 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) As of December 31, 2017, the Company has accounted for the call option at its fair value of 455 in a similar way to a call option over an entity's own equityshares and the initial fair value of the option was recognized in equity. 24.4 Acquisition of WAE On May 23, 2016 (closing date), Globant España S.A. acquired 100% of shares of We Are London Limited (WAE UK), a company organized and existingunder the laws of England and Wales and 100% of shares of We Are Experience, Inc. a corporation organized and existing under the Laws of the State of NewYork, United States (WAE US) (jointly WAE UK and WAE US are WAE). WAE is a service design consultancy, specialized in three distinct butcomplementary service offerings - Research, Strategy and Creative. Total headcount of WAE was 40 employees with operations in United States and UnitedKingdom. The purpose of the acquisition is related to the benefit of expected synergies, revenue growth, future market development and the assembledworkforce of WAE. The aggregate purchase price under the Stock Purchase Agreement (SPA) amounted to 19,851, of which 12,131 relates to WAE UK and 7,720 relates to WAEUS Such purchase price may be subject to adjustments based on the future performance of WAE and is payable to the sellers as follows: 1. Up-front payment: As of the closing date, the Company paid an aggregate consideration of 8,500 to the sellers. 2. First earn-out payment: On August 16, 2017, the Company paid an amount of 5,000 to the sellers. 3. Second earn-out payment: Not later than August 20, 2018, the amount of 5,000, provided that such amount shall be reduced in proportion to thepercentage of targets achievement by WAE during the period commencing on June 1, 2017 and ending on May 31, 2018. However, the Companyand the sellers of WAE have entered into discussions concerning circumstances that may have impacted the calculation of targets on the base ofwhich the final amount of Year 2 Deferred Consideration should have been calculated. For that reason, in July, 2018, the Company and the sellers ofWAE signed a final settlement in order to avoid future claims on this matter. As of December 31, 2018, the Company recognized a loss arising fromthe settlement agreement that amounted to 1,038 and is disclosed as Other income, net. In July, 2018, the Company paid a total amount of 1,867. Additionally, the Company shall pay to the sellers an amount of 575 in cash on the first earn-out payment date and/or the second earn-out payment daterelated to the corporation tax saved by WAE UK prior to such date as a result of any deduction obtained under income tax law applicable to United toKingdom attributable to the exercise of the stock options plan granted by WAE UK to the option holders. This amount is considered by the Company as partof the consideration amount. On October 2017, the Company paid 436 in cash related to the corporation tax saved to be reimbursed to the sellers. Finally, as part of the total consideration the Company computed the working capital adjustment defined in the SPA. Total adjustment amounted to 1,357. Acquisition-related charges amounting to 515 have been excluded from the consideration transferred and have been recognized as an expense in profit orloss in the current year, within the Professional services line item. The fair value of the consideration transferred for WAE acquisition at the acquisition date was calculated as follows: F-72 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) Purchase price Amount Down payment 8,500 Working capital adjustment 1,352 Installment payment 551(a)Contingent consideration 9,448(a)Total consideration 19,851 (a) As of December 31, 2017 included 924 as Other financial liabilities current, related to Year 1 Deferred Consideration payment. As of December 31, 2018,the consideration was fully settled. 24.5 Acquisition of Difier On November 14, 2016, the Company entered into a Stock Purchase Agreement ("SPA") with 3Cinteractive corp. ("3C") to purchase the 100% of the capitalstock of Difier S.A., a Uruguayan company ("Difier"). Difier is engaged in the business of providing information technology services to 3C, who has been andremains the only customer of Difier. The aggregate purchase price under the SPA amounted to 25 and was paid as of the closing date. Jointly with this SPA, the Company signed with 3C aconsulting services agreement representing a customer relationship, to provide software services in the United States and other jurisdictions for the followingfour years. The fair value of this agreement was recognized as an intangible asset as of the date of acquisition for an amount of 652, which originated a gainfor a bargain business combination of 225 included in "Other income, net" as of December 31, 2016. Acquisition related expenses were not material and were recognized directly as expense. 24.6 Acquisition of L4 On November 14, 2016 ("closing date"), Globant LLC acquired 100% of shares of L4 Mobile, LLC ("L4"), a limited liability company organized and existingunder the laws of the State of Washington, United States. L4 offers the digital product consulting, design, development and quality assurance servicesnecessary to build and manage robust digital products. Total headcount of L4 was 90 employees with operations in United States. The purpose of theacquisition is related to the benefit of expected synergies, revenue growth, future market development and the assembled workforce of L4. The aggregate purchase price under the Stock Purchase Agreement ("SPA") amounted to 20,388. On January 30, 2018, the Company signed an amendment to the SPA. Considering this amendment, purchase price may be subject to adjustments based onthe future performance of L4 and is payable to the seller as follows: Up-front payment: As of the closing date, the Company paid an aggregate consideration of 11,000 to the seller. 1.First earn-out payment: On February 15, 2017, the Company paid an aggregate consideration of 990 to the sellers. 2.Second earn-out payment: On February 15, 2018, the Company paid an aggregate consideration of 1,850. F-73 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) 3.Third and forth earn-out payment: Not later than February 15, 2019, the amount of 1,160, provided that such amount shall be reduced in proportionto the percentage of targets achievement by L4 during the period commencing on January 1, 2018 and ending on December 31, 2018. Not later thanFebruary 15, 2020, the amount of 1,160, provided that such amount shall be reduced in proportion to the percentage of targets achievement by L4during the period commencing on January 1, 2019 and ending on December 31, 2019. However, as of December 31, 2018, the Company remeasuredthe fair value of the contingent consideration related to these earn-outs, considering the non achievement of targets established by the SharePurchase Agreement. Gain arising from the change in fair amounted to 1,848 and is disclosed as Other income, net. The fair value of the consideration transferred for L4 acquisition at the acquisition date was calculated as follows: Purchase price Amount Down payment 11,000 Working capital adjustment 817(a)Contingent consideration 8,571(a)Total consideration 20,388 (a) As of December 31, 2017 included 1,845 as Other financial liabilities current and 1,803 as Other financial liabilities non-current. As of December 31,2018, the fair value of the contingent consideration was zero. Acquisition related expenses were not material and were recognized directly as expense. 24.7 Acquisition of Ratio On February 28, 2017, Globant LLC acquired 100% of shares of Ratio Cypress, LLC ("Ratio"), a limited liability company organized and existing under thelaws of the State of Washington, United States. Ratio offers design, development and quality assurance services necessary to build and manage robust digitalproducts and video streaming solutions for major media companies. Total headcount of Ratio was 45 employees with operations in United States. The purpose of the acquisition is related to the benefit of expected synergies, revenue growth, future market development and the assembled workforce ofRatio. The aggregate purchase price under the Stock Purchase Agreement ("SPA"), amended on March 2, 2018, amounted to 9,529. Such purchase price may besubject to adjustments based on the future performance of Ratio and is payable to the seller as follows: 1.Up-front payment: As of the closing date, the Company paid an aggregate consideration of 5,800 to the seller. 2.First earn-out payment: On February 15, 2018, the Company paid the aggregate consideration 1,669 to the sellers. 3.Second earn-out payment: On February 15, 2019, the Company paid the aggregate consideration of 2,019, to the sellers. 4.Third earn-out payment: Not later than February 15, 2020, the amount of 865, considering the targets achievement by Ratio during the periodcommencing on January 1, 2019 and ending on December 31, 2019. F-74 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) The fair value of the consideration transferred for Ratio acquisition was calculated as follows: Purchase price at acquisition date Amount Down payment 5,800 Working capital adjustment (97)Contingent consideration 3,826(a)Total consideration 9,529 (a)As of December 31, 2018 included 1,992 and 851 as Other financial liabilities current and non-current, respectively. As of December 31, 2017 included1,666 and 2,216 as Other financial liabilities current and non-current, respectively. Acquisition related expenses were not material and were recognized directly as expense for each period. 24.8 Acquisition of PointSource On June 1, 2017, Globant LLC acquired 100% of shares of PointSource, LLC ("PointSource"), a limited liability company organized and existing under thelaws of the State of Florida, United States. PointSource offers digital solutions to its customers which include design, digital strategy, development andmarketing services. Total headcount of PointSource was 97 employees with operations in United States. The purpose of the acquisition is related to the benefit of expected synergies, revenue growth, future market development and the assembled workforce ofPointSource. The aggregate purchase price under the Stock Purchase Agreement ("SPA") amounted to 28,629. On May, 2018, the Company signed an amendment to the SPA, pursuant to which a new fixed-payment was established, in replacement of previous paymentsubject to targets achievements. The amended purchase price is payable to the seller as follows: 1.Up-front payment: The Company paid the first payment of 15,500 in two installments: a.As of the closing date, the Company paid an aggregate consideration of 3,100 to the seller.b.On June 7, 2017, the Company paid the second portion of the first payment for a total amount of 12,400. 2.First earn-out payment: On February 22, 2018, the Company paid the aggregate consideration of 2,206 to the sellers. 3.Second earn-out payment: On February 28, 2019, the Company paid the aggregate consideration of 750 to the sellers. 4.Third earn-out payment: Not later than February 29, 2020, the fixed-amount of 1,450 and 1,198 subject to the achievement of targets during theperiod commencing on January 1, 2019 and ending on December 31, 2019. Additionally, as part of the total consideration the Company computed the working capital adjustment for a total amount of 3,756. Equity purchase agreement On June 1, 2017, the Company signed an equity purchase agreement to have the option to acquire the 100% of the shares of PointSource Limited LiabilityCompany (PS Belarus), a company established in accordance with the laws of the Republic of Belarus and totally owned by Christopher L. Hugill, ChiefExecutive Officer (CEO) of PointSource. F-75 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) Additionally, PointSource and PS Belarus are parties in a subcontractor agreement, dated as of July 1, 2015, pursuant to which PS Belarus performs servicesto PointSource as an independent contractor. Considering that the Company owned 100% of PointSource which is the only customer of PS Belarus and thatthe CEO of PointSource is the wholly-owned shareholder of PS Belarus, the Company concluded that has the control over PS Belarus and has to consolidatedin 100% as the following factors are met:(a) PointSource has power over PS Belarus;(b) PointSource has the ability to use its power over PS Belarus to affect the amounts of its return as it is the only customer. The fair value of the consideration transferred for PointSource acquisition was calculated as follows: Purchase price at acquisition date Amount Down payment 15,500 Working capital adjustment 3,756 Contingent consideration 9,373(a)Total consideration 28,629 (a)As of December 31, 2018 included 746 and 1,040 as Other financial liabilities current and non-current, respectively. As of December 31, 2017, included2,200 and 7,261 as Other financial liabilities current and non-current, respectively. Acquisition related expenses were not material and were recognized directly as expense for each period. 24.9 Acquisition of Small Footprint On August 20, 2018, Globant España S.A. (sociedad unipersonal) and Globant LLC signed a pre-closing Asset Purchase Agreement (“APA”) with SmallFootprint Inc., a corporation organized and existing under the laws of the State of North Carolina, United States, pursuant to which Globant España acquired100% of shares of Small Footprint S.R.L., a limited liability company organized and existing under the laws of Romania, and Globant LLC acquired theassets and properties used or held for use in connection with the business of Small Footprint Inc. Both transactions were treated as a single businesscombination according to IFRS 3. The closing date took place on October 15, 2018, which is the date the Company acquired control over Small Footprint. The purpose of the acquisition is related to the benefit of expected synergies, revenue growth, future market development and the assembled workforce ofSmall Footprint. The aggregate purchase price under the APA amounted to 7,397. Such purchase price may be subject to adjustments based on the future performance of SmallFootprint and is payable to the seller as follows: 1.Up-front payment: As of the closing date, the Company paid an aggregate consideration of 4,331 to the seller.2.First earn-out payment: On March 1, 2019, the Company paid the aggregate consideration of 3,066 to the sellers.3.Second earn-out payment: Not later than February 15, 2020, the amount of 2,110 considering the billable headcount target achievement by SmallFootprint during the period commencing on January 1, 2019 and ending on December 31, 2019, which was identified as an arrangement thatincludes remuneration of former owners of the acquiree for future services and consequently, it was excluded from the business combination and willbe recognized in expense during the required service period.4.Third earn-out payment: Not later than February 15, 2021, the amount of 1,610 considering the billable headcount target achievement by SmallFootprint during the period commencing on January 1, 2020 and ending on December 31, 2020 which was identified as an arrangement thatincludes remuneration of former owners of the acquiree for future services and consequently, it was excluded from the business combination and willbe recognized in expense during the required service period. F-76 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) The fair value of the consideration transferred for Small Footprint acquisition at the acquisition date was calculated as follows: Purchase price at acquisition date Amount Down payment 3,840 Working capital adjustment 488 Contingent consideration 3,029 Total consideration 7,357 Acquisition related expenses were not material and were recognized directly as expense for each period. 24.10 Outstanding balances Outstanding balances of financial liabilities related to the abovementioned acquisitions as of December 31, 2018 and 2017 are as follows: As of December 31, 2018 As of December 31, 2017 Other financialliabilities -current Other financialliabilities - noncurrent Other financialliabilities -current Other financialliabilities - noncurrent Huddle Group — — 110 — Clarice 3,127 1,527 3,119 4,497 Subscription agreement 400 — 800 — Put option on minority interest of Dynaflows — — — 2,797 WAE — — 924 — L4 — — 1,845 1,803 Ratio 1,992 851 1,666 2,216 PointSource 746 1,040 2,200 7,261 Small Footprint 3,070 — — — Total 9,335 3,418 10,664 18,574 The significant inputs are disclosed in note 28.9.1. F-77 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) 24.11 Purchase Price Allocation As of December 31, 2018 and 2017, fair values of the assets acquired, liabilities assumed and goodwill or bargain gain determined at the date of acquisitionin the business combinations are as follows: 2018 acquisitions 2017 acquisitions Current Assets Cash and cash equivalents 191 2,151 Investments — 5 Trade receivables 1,066 3,170 Other receivables 45 2,893 Non current assets Property and equipment 48 192 Intangibles 173 524 Other receivables — 151 Goodwill (1) 6,244 33,699 Current liabilities Trade and other payables — (3,310)Tax liabilities — (22)Payroll and social security — (1,295)Other liabilities (410) — Total consideration 7,357 38,158 (1)As of December 31, 2018, 6,244 is not deductible for tax purposes. As of December 31, 2017, 33,699, is deductible for tax purposes. Goodwill has arisen because the consideration paid for these acquisitions included amounts in relation to the benefit of expected synergies, revenue growth,customer relationships, future market development and the assembled workforce of acquired companies. Only the customer contracts are recognized asintangible, in the acquisitions of Pointsource and Small footprint. The other benefits are not recognized separately from goodwill because they do not meetthe recognition criteria for identifiable intangible assets. The fair values of the receivables acquired do not differ from their gross contractual amount. Acquisition related expenses were not material and were recognized directly as expense for each period. 24.12 Impact of acquisitions on the results of the Company The net income for the year ended December 31, 2016 includes 2,312 attributable to the business generated by WAE. Revenue for the year endedDecember 31, 2016 includes 7,475 related to the business of that company. Had the business combination been effected at January 1, 2016, the consolidatedrevenue of the Company would have been 326,175 and the net profit for the year ended December 31, 2016 would have been 35,739. F-78 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) The net income for the year ended December 31, 2016 includes a loss of 7 attributable to the business generated by Difier. Revenue for the year endedDecember 31, 2016 includes 444 related to the business of that company. Had the business combination been effected at January 1, 2016, the consolidatedrevenue of the Company would have been 324,229 and the net profit for the year ended December 31, 2016 would have been 36,095. The net income for the year ended December 31, 2016 includes a gain of 823 attributable to the business generated by L4. Revenue for the year endedDecember 31, 2016 includes 3,422 related to the business of that company. Had the business combination been effected at January 1, 2016, the consolidatedrevenue of the Company would have been 335,307 and the net profit for the year ended December 31, 2016 would have been 37,014. Had the three business combinations made in 2016, as described above, been performed on January 1, 2016, the consolidated revenue of the Company wouldhave been 339,999 and the net profit for the year ended December 31, 2016 would have been 35,354. Directors consider these "pro-forma" numbers to represent an approximate measure of the performance of the Company on an annualized basis and to providea reference point for comparison in future periods. The net income for the year ended December 31, 2017 includes a gain of 812 and 383 attributable to the business generated by Ratio and Pointsource,respectively, determined based on the information available as of June 30, 2017. Revenue for the year ended December 31, 2017 includes 4,188 and 2,108related to the business of Ratio and Pointsource, respectively, computed also with the information available as of June 30, 2017. Since then, the business ofthe two entities were fully integrated within the business of our subsidiary Globant LLC; furthermore, during the last semester of 2017 both entities wereformally merged into our subsidiary Globant LLC. Consequently, it has not been possible to determine a reasonable estimate of the total amounts related tothe revenue and net income attributable to the separate businesses of Ratio and Pointsource for the full year included in the consolidated income for the yearended December 31, 2017. As explained in note 24.9, on October 15, 2018, the Company purchased the assets of Small Footprint Inc. and the shares of Small Footprint S.R.L. From theacquisition date and onwards, the business of Small Footprint Inc. was fully integrated within the business of the Company's subsidiary Globant LLC.Consequently, it has not been possible to determine a reasonable estimate of the total amounts related to the net income attributable to the separate businessof Small Footprint as of December 31, 2018. Had the business combination been effected at January 1, 2018, the consolidated revenue of the Company wouldhave been 523,114 and the net profit for the year ended December 31, 2018 would have been 52,910. NOTE 25 – SEGMENT INFORMATION Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operatingdecision-maker (“CODM”) in deciding on how to allocate resources and in assessing performance. The Company’s CODM is considered to be the Company’schief executive officer (“CEO”). The CEO reviews financial information presented on an entity level basis for purposes of making operating decisions andassessing financial performance. Therefore, the Company has determined that it operates in a single operating and reportable segment. The Company provides services related to application development, testing, infrastructure management and application maintenance. F-79 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) The following table summarizes revenues by geography, based on the customers' location: For the year ended December 31, 2018 2017 2016 North America United States of America 400,029 322,658 258,388 Canada 7,061 2,956 2,535 Subtotal North America 407,090 325,614 260,923 Europe Spain 30,298 23,831 12,929 Netherlands 1,023 69 159 United Kingdom 12,970 9,996 10,305 Luxembourg 1,109 1,000 961 Germany 623 1,540 2,478 Sweden — 1,317 1,251 Italy — — 718 Others 217 731 505 Subtotal Europe 46,240 38,484 29,306 Asia India 1,063 673 1,132 Indonesia 1,686 — — Others 318 27 133 Subtotal Asia 3,067 700 1,265 Latin America and others Argentina 24,241 14,886 10,216 Brazil 238 358 2,344 Colombia 5,362 3,553 3,177 Chile 21,246 19,243 13,425 Uruguay 529 231 84 Mexico 11,949 7,418 966 Perú 1,718 2,627 852 Others 630 325 298 Subtotal Latin America and others 65,913 48,641 31,362 TOTAL 522,310 413,439 322,856 One single customer accounted for 11.3% and 10.2% of revenues for the years ended December 31, 2018 and 2017. However, no single customer accountedfor 10% or more of revenues for the year ended December 31, 2016. The following table summarizes non-current assets other than deferred taxes as stated in IFRS 8, paragraph 33.b, by jurisdiction: F-80 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) As of December 31, 2018 2017 Argentina 70,349 69,511 Spain 46,803 38,454 United States of America 58,083 57,071 Brazil 1,512 1,870 Uruguay 781 555 Luxembourg 4,353 5,316 Colombia 12,942 7,997 México 6,121 3,460 India 4,159 2,206 Chile 874 1,037 Other countries 1,176 534 TOTAL 207,153 188,011 NOTE 26 – BORROWINGS 26.1 – Bank and financial institutions The principal balances of outstanding borrowings under lines of credit with banks and financial institutions were as follows: As of December 31, 2018 2017 Banco Santander Rio (Argentina) — 4 HSBC Bank and Citibank - Syndicated loan (United States) — 6,007 TOTAL — 6,011 Such balances were included as current borrowings in the consolidated statement of financial position. On November 1, 2018, Globant LLC, the Company's U.S. subsidiary, entered into an Amended and Restated Credit Agreement by and among certainfinancial institutions, as lenders, and HSBC Bank USA, National Association, as administrative agent, issuing bank and swingline lender. The A&R CreditAgreement amends and restates the existing Credit Agreement dated as of August 3, 2017, which provided for a secured revolving credit facility under whichthe Company may borrow up to 40,000 in advances. Under the A&R Credit Agreement, Globant LLC may borrow (i) up to 50,000 in a single borrowing on orprior to May 1, 2019 under a delayed-draw term loan facility and (ii) up to 150,000 under a revolving credit facility. In addition, Globant, LLC may requestincreases of the maximum amount available under the revolving facility in an aggregament amount not to exceed 100,000. The maturity date of the facilitiesis October 31, 2023. Pursuant to the terms of the A&R Credit Agreement, interest on loans extended thereunder shall accrue at a rate per annum equal toLIBOR plus 1.75%. Globant LLC’s obligations under the A&R Credit Agreement are guaranteed by the Company and its subsidiary Globant España S.A.,and are secured by substantially all of Globant LLC’s now owned and after-acquired assets. The A&R Credit Agreement also contains the followingcovenants: delivery of certain financial information; payment of obligations, including tax liabilities; use of proceeds only for transaction costs payments,for lawful general corporate purposes and working capital; Globant LLC's Fixed Charge Coverage Ratio shall not be less than 1.25 to 1.00; Globant LLC'sMaximum Total Leverage Ratio shall not exceed 2.50 to 1.00; Globant LLC or any of its subsidiaries shall not incur in any indebtedness; Globant LLC orany of its subsidiaries shall not assume any Lien; restricted payments not to exceed 10,000 per year; advances to officers, directors and employees ofthe Borrower and Subsidiaries in an aggregate amount not to exceed 50 outstanding at any time; Globant LLC shall not maintain intercompany payablesowed to any of its Argentina Affiliates except to the extent (i) such payables are originated in transactions made in the ordinary course of business and (ii) theaggregate amount of such payables do not exceed an amount equal to five times the average monthly amount of such Affiliates’ billings for the immediatelypreceding 12 month period; Globant LLC's capital expenditures limited to 10% the Company's consolidated net revenue per year and Globant LLC's annualrevenue is to remain at no less than 60% of the Company's consolidated annual revenue. F-81 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) On December 19, 2017, Globant LLC has borrowed 6,000 under the original credit facility. This loan matured on July 23, 2018 and was included as a currentborrowing as of December 31, 2017. As of December 31, 2018, the Company has not borrowed any loan from the A&R Credit Agreement. Movements in borrowings are analyzed as follows: As of December 31, 2018 2017 2016 Balance at the beginning of year 6,011 217 548 Borrowings related to business combination (note 24) — — 250 Proceeds from new borrowings (1) — 22,000 — Payment of borrowings (6,163) (16,293) (584)Accrued interest 152 95 41 Foreign exchange — (8) (38)TOTAL — 6,011 217 (1)The Company, through its Argentine subsidiary, Sistemas Globales S.A. and IAFH Global S.A., entered into 6 loan agreements with Santander Rio for atotal amount of $16,000. These loans matured before December 31, 2017. On December 19, 2017, Globant LLC has borrowed $6,000 under the creditfacility mentioned above. This loan matured on July 23, 2018. NOTE 27 – OPERATING AND FINANCE LEASES The Company is obligated under various operating leases for office space and office equipment. Total lease expense incurred under these leases wasapproximately 16,335; 13,972 and 12,032 for the years ended December 31, 2018, 2017 and 2016, respectively. F-82 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) The undiscounted amounts of future fixed minimum annual lease commitments are as follows at December 31, 2018: Year Amount 2019 16,051 2020 14,097 2021 8,356 2022 6,500 2023 onwards 10,218 Total 55,222 NOTE 28 – FINANCIAL INSTRUMENTS 28.1 - Categories of financial instruments As of December 31, 2018 2017 Financial assets Cash and cash equivalents 77,606 52,525 Financial assets measured at FVPL 4,050 7,620 Financial assets measured at FVOCI 4,585 527 Other financial assets (2) 895 1,428 Assets measured at amortised cost 160,963 126,171 Financial liabilities Other financial liabilities (1) 12,765 29,238 Amortised cost Trade payables 17,578 11,640 Payroll and social security taxes 58,535 40,472 Borrowings — 6,011 Tax liabilities 7,399 5,253 Other liabilities 44 20 (1) As of December 31, 2018, other financial liabilities include 3,070, 3,873 and 2,844 related to contingent liability arisen in Small Footprint,Clarice and Ratio acquisitions, respectively, which are measured at fair value (see note 28.9.1).(2) As of December 31, 2018, other financial assets include foreign exchange forward contracts of 44 measured at fair value through profit and loss,convertible notes of 106 measured at fair value through profit and loss, financial asset related to the acquisition of Clarice of 400 which is measuredat fair value through profit and loss, and 345 of guarantee payments related to the future lease of a property under construction measured atamortised cost. 28.2 - Market risk The Company is exposed to a variety of risks: market risk, including the effects of changes in foreign currency exchange rates and interest rates, and liquidityrisk. F-83 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) The Company's overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on theCompany's financial performance. The Company does not use derivative instruments to hedge its exposure to risks, apart from those mentioned in note28.9.4. 28.3 - Foreign currency risk management The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Except in Globant Brasil Consultoría Ltda. (formerly TerraForum Consultoría Ltda.), Globers S.A. and We are London Limited, the subsidiary's functionalcurrency is the U.S. dollar. In 2018, 86% of the Company's revenues are denominated in U.S. dollars. Because the majority of its personnel are located inLatin America, the Company incurs the majority of its operating expenses and capital expenditures in non-U.S. dollar currencies, primarily the Argentinepeso, Uruguayan peso, Brazilian Real, Mexican peso, Peruvian Sol and Colombian peso. Operating expenses are also significantly incurred in Indian Rupeeand Great Britain Pound. F-84 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) Foreign exchange sensitivity analysis The Company is mainly exposed to Argentine pesos, Colombian pesos and Indian rupees. The following tables illustrate the Company's sensitivity to increases and decreases in the U.S. dollar against the relevant foreign currency. The followingsensitivity analysis includes outstanding foreign currency denominated monetary items at December 31, 2018 and adjusts their translation at the year-end forchanges in U.S. dollars against the relevant foreign currency. Gain/(loss) Account Currency Amount % Increase Amount % Decrease Amount Net balances Argentine pesos 10,147 30% (3,462) 10% (587) Colombian pesos (7,148) 10% 630 10% (738) Indian rupees 492 10% (47) 10% 46 Total 3,491 (2,879) (1,279) The following sensitivity analysis includes costs incurred in foreign currencies during the year ended December 31, 2018 and adjusts their translation for theyear ended December 31, 2018 for changes in U.S. dollars against the relevant foreign currencies. Gain/(loss) Account Currency Amount % Increase Amount % Decrease Amount Costs Argentine pesos (127,599) 30% 29,446 10% (12,760) Colombian pesos (69,944) 10% 6,359 10% (6,994) Indian rupees (20,533) 10% 1,867 10% (2,053) Total (218,076) 37,672 (21,807) The estimated effect in net income for the year ended December 31, 2018 due to a 30% increase in the U.S. dollar against the Argentine peso is a gain of25,984 and such effect due to a 10% decrease in the U.S. dollar against the Argentine peso is a loss of 13,347. The estimated effect in net income for the year ended December 31, 2018 due to a 10% increase in the U.S. dollar against the Colombian peso and Indianrupees is a gain of 6,989 and 1,820, respectively, and such effect due to a 10% decrease in the U.S. dollar against the Colombian peso and Indian rupees is aloss of 7,732 and 2,007, respectively. Depreciation of the Argentine Peso During 2018, the Argentine peso experienced a 102.2% devaluation from 18.60 Argentine peso per U.S. dollar to 37.60 Argentine peso per U.S. dollar. Asexplained in note 28.9.4, the Argentine's subsidiaries entered into foreign exchange forward and future contracts in order to mitigate the risk of fluctuationsin the foreign exchange rate and reduce the impact in costs and expenses. During 2017 and 2016, the Argentine peso experienced a 17% and a 14% devaluation, respectively, from 15.84 and 13.910 Argentine peso per U.S. dollar to18.60 and 15.84 Argentine peso per U.S. dollar, respectively. F-85 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) 28.4 - Interest rate risk management The Company's exposure to market risk for changes in interest rates relates primarily to its cash and bank balances and its credit facilities. The Company'scredit line in the U.S. bear interest at a fixed rate of 1.75% and at variable rates from 1.78% at 2.8%, respectively. The Company does not use derivativefinancial instruments to hedge its risk of interest rate volatility. 28.5 – Liquidity risk management The Company's primary sources of liquidity are cash flows from operating activities and borrowings under credit facilities. See note 26.1. Management monitors rolling forecasts of the Company's liquidity position on the basis of expected cash flow. The table below analyzes financial liabilities into relevant maturity groups based on the remaining period at the balance sheet date to the contractualmaturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Expected Maturity Date 2019 2020 2021 Thereafter Total Other financial liabilities 9,347 3,418 — — 12,765 TOTAL 9,347 3,418 — — 12,765 28.6 - Concentration of credit risk The Company derives revenues from clients in the U.S. (approximately 77%) and clients related from diverse industries. For the years ended December 31,2018, 2017 and 2016, the Company's top five clients accounted for 32.0%, 28.9% and 33.7% of its revenues, respectively. One single customer accounted for11.3% and 10.2% of revenues for the years ended December 31, 2018 and 2017. However, no single customer accounted for 10% or more of revenues for theyears ended December 31, 2016. 28.7 - Fair value of financial instruments that are not measured at fair value Except as detailed in the following table, the carrying amounts of financial assets and liabilities included in the consolidated statement of financial positionas of December 31, 2018 and 2017, approximate to their fair values. December 31, 2018 December 31, 2017 Carrying amount Fair value Carrying amount Fair value Non-current assets Other receivables Guarantee deposits 1,681 1,539 1,347 1,226 Tax credit - VAT (*) 356 326 2,025 2,096 Income tax credits 1,259 1,153 2,129 2,059 Tax credit - Software Promotion Regime 749 686 132 45 Other tax credits 170 157 105 56 4,215 3,861 5,738 5,482 (*) Net of allowance for impairment of tax credits. F-86 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) 28.8 - Fair value measurements recognized in the consolidated statement of financial position The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into a three-levelfair value hierarchy as mandated by IFRS 13, as follows: Level 1 fair value measurements are those derived from quoted market prices (unadjusted) in active markets for identical assets or liabilities. Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1, that are observable for the asset or liability,either directly (i.e., as prices) or indirectly (i.e., derived from prices). Level 3 fair value measurements are those derived from unobservable inputs for the assets or liabilities. As of December 31, 2018 Level 1 Level 2 Level 3 Total Financial assets Mutual funds — 4,050 — 4,050 Bills issued by the Treasury of the Argentine Republic ("LETEs") — 1,015 — 1,015 Bills issued by the Treasury Department of the U.S. ("T-Bills") — 3,493 — 3,493 Capitalizable bills issued by the Treasury of the Argentine Republic("LECAPs") — 77 — 77 Foreign exchange forward contracts — 44 — 44 Convertibles notes — 106 — 106 Financial liabilities Contingent consideration — — 9,767 9,767 Foreign exchange forward contracts — 12 — 12 As of December 31, 2017 Level 1 Level 2 Level 3 Total Financial assets Mutual funds — 7,620 — 7,620 Bills issued by the Argentine Central Bank ("LEBACs") — 527 — 527 Foreign exchange forward contracts — 73 — 73 Call option on minority interest (see note 24.3) — — 455 455 Convertibles notes — 100 — 100 Financial liabilities Contingent consideration — — 23,905 23,905 Put option on minority interest (see note 24.3) — — 2,797 2,797 F-87 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) There were no transfers of financial assets between Level 1, Level 2 and Level 3 during the period. The Company has applied the market approach technique in order to estimate the price at which an orderly transaction to sell the asset or to transfer theliability would take place between market participants at the measurement date under current market conditions. The market approach uses prices and otherrelevant information generated by market transactions involving identical or comparable (i.e., similar) assets, liabilities or a group of assets and liabilities. When the inputs required by the market approach are not available, the Company applies the income approach technique. The income approach techniqueestimates the fair value of an asset or a liability by converting future amounts (e.g. cash flows or income and expenses) to a single current (i.e. discounted)amount. When the income approach is used, the fair value measurement reflects current market expectations about those future amounts. 28.9 Level 3 28.9.1 Contingent consideration As explained in note 24.2, the acquisition of Clarice included a contingent consideration agreement which was payable on a deferred basis and which will besubject to the occurrence of certain events relating to the acquired company's capacity. As of December 31, 2017, the Company remeasured the fair value of the contingent consideration related to Clarice described above, considering the newtargets established by the amendment signed on May 16, 2017 to Globant India Private Ltd. (formerly Clarice Technologies PVT Ltd.) Share PurchaseAgreement dated on May 14, 2015. Loss arising from the change in fair value amounted to 1,173 and includes a loss arising from the change in fair value ofthe contingent consideration for an amount of 1,401. As of December 31, 2018 and 2017, the nominal value of contingent consideration related to Clarice amounted to 3,947 and 6,291, respectively. Thepotential undiscounted amount of all future payments that the Company could be required to make under this agreement was between 1,316 and 3,947 as ofDecember 31, 2018 and 2,193 and 6,578 as of December 31, 2017. The fair value of the contingent consideration related to Clarice arrangement of 3,873 and6,099 as of December 31, 2018 and 2017, respectively, was estimated by discounting to present value using a risk-adjusted discount rate. As described in note 24.4, the acquisition of WAE (jointly We are London Limited and We are Experience, Inc.) included a contingent considerationagreement which was payable on a deferred basis and was subject to the occurrence of certain events relating to the acquired company's gross revenue andgross profit. As of December 31, 2017, the Company remeasured the fair value of the contingent consideration realted WAE described above. Gain arising from thechange in fair value of the contingent consideration amounted to 3,850 and is included as Other income, net. As of December 31, 2017, the nominal value of contingent consideration related to WAE amounted to 829 and such amount was related to Year 1 DeferredConsideration payment. The potential undiscounted amount of all future payments that the Company could be required to make under this agreement was816 as of December 31, 2017. The fair value of the contingent consideration arrangement of 816 as of December 31, 2017 was estimated by discounting topresent value using a risk-adjusted discount rate. F-88 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) During 2018, the Company and the sellers of WAE have entered into discussions concerning circumstances that may have impacted the calculation of targetson the base of which the final amount of Year 2 Deferred consideration should have been calculated. For that reason, in July, 2018, the Company and thesellers of WAE signed a final settlement in order to avoid future claims on this matter. Loss arising from the settlement agreement amounted to 1,038 as ofDecember 31, 2018 and was disclosed as Other income, net. In July, 2018, the Company paid a total amount of 1,867. As described in note 24.6, the acquisition of L4 included a contingent consideration agreement which is payable on a deferred basis and which will besubject to certain events relating to the acquired company's gross revenue and gross profit. As of December 31, 2017, the Company remeasured the fair value of the contingent consideration related to L4 described above, considering the new targetsestablished by the amendment signed on January 30, 2018 to the SPA dated on November 14, 2016. Gain arising from the change in fair value of thecontingent consideration amounted to 4,058 and is included as Other income, net. As of December 31, 2017, the nominal value of contingent consideration related to L4 amounted to 3,750. The potential undiscounted amount of all futurepayments that the Company could be required to make under this agreement was between 4,320 and an unlimited maximum amount, given that suchpayment may be increased proportionally to the targets achievements, as of December 31, 2017. The fair value of the contingent consideration arrangementof 3,653 as of December 31, 2017 was estimated by discounting to present value using a risk-adjusted discount rate. As of December 31, 2018, the Company remeasured the fair value of the contingent consideration related to L4 described above, considering the nonachievement of targets established by the Share Purchase Agreement. Gain arising from the change in fair value amounted to 1,848 and is included as Otherincome, net. As described in note 24.7, the acquisition of Ratio, included a contingent consideration agreement which is payable on a deferred basis and which will besubject to certain events relating to the acquired company's gross revenue and gross margin. As of December 31, 2018 and 2017, the nominal value of contingent consideration related to Ratio amounted to 2,860 and 3,923, respectively. The potentialundiscounted amount of all future payments that the Company could be required to make under this agreement was between 2,570 and an unlimitedmaximum amount, given that such payment may be increased proportionally to the targets achievements, as of December 31, 2018 and between 2,746 anunlimited maximum amount, given that such payment may be increased proportionally to the targets achievements, as of December 31, 2017. The fair valueof the contingent consideration arrangement of 2,844 and 3,876 as of December 31, 2018 and 2017 was estimated by discounting to present value using arisk-adjusted discount rate. As of December 31, 2018, the Company remeasured the fair value of the contingent consideration related to the acquisition of Ratio. Loss arising from thechange in fair value amounted to 654 and is included as Other income, net. As described in note 24.8, the acquisition of PointSource, included a contingent consideration agreement which was payable on a deferred basis and whichwas be subject to certain events relating to the acquired company's gross revenue and gross margin. As of December 31, 2017, the nominal value of contingent consideration related to PointSource amounted to 9,626. The potential undiscounted amount ofall future payments that the Company could be required to make under this agreement was between 3,850 and an unlimited maximum amount, given thatsuch payment may be increased proportionally to the targets achievements, as of December 31, 2017. The fair value of the contingent considerationarrangement of 9,461 as of December 31, 2017 was estimated by discounting to present value using a risk-adjusted discount rate. F-89 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) On May 2018, the Company signed an amendment to the SPA with the former shareholders, pursuant to which a new fixed-payment was established, inreplacement of previous payments subject to targets achievement. As of December 31, 2018, the fixed-payment amounted to 1,786 and is included in otherfinancial liabilities. As a consequence, the Company remeasured the fair value of the liability related to PointSource described above. Gain arising from thechange in fair value of the liability amounted to 5,506 and is included as Other income, net. As described in note 24.9, the acquisition of Small Footprint included a contingent consideration agreement which is payable on a deferred basis and whichwill be subject to the occurrence of certain events relating to the acquired company's gross revenue, gross margin and billable headcount. As of December 31, 2018, the nominal amount of the contingent consideration related to Small Footprint amounted to 3,066. Such amount was paid onMarch 1, 2019. The fair value of the contingent consideration arrangement of 3,070 as of December 31, 2018 was estimated by discounting to present valueusing a risk-adjusted discount rate. The following table shows the results from remeasurement of the contingent considerations described above: For the year ended December 31, 2018 2017 2016 Gain on remeasurement of the contingent consideration of PointSource 5,506 — — (Loss) gain on remeasurement of the contingent consideration of Clarice — (1,173) 418 Gain on remeasurement of the contingent consideration of L4 1,848 4,058 — Gain on remeasurement of the contingent consideration of WAE — 3,850 — Loss on remeasurement of the contingent consideration of Ratio (654) — — TOTAL 6,700 6,735 418 28.9.2 Put and call option on minority interests As described in note 24.3, on October 22, 2015, the Company entered into a Shareholders Agreement (the "Minority Interest SHA") with the "non-controllingshareholders" to agree on a put option over the 33.27% of the remaining interest of Dynaflows. On October 26, 2018, the non-controlling shareholders exercised such option and the Company paid a total amount of 1,186 based on the EBITDA andRevenue of Dynaflows for the twelve months ended on September 30, 2018. As of December 31, 2018, a gain of 1,611 was recognized as Other income, net,given that the exercise of the option occurred earlier than expected. As described in note 24.3, the Company also agreed on a call option over non-controlling interest. The fair value of the call option on minority interest of455 as of December 31, 2017 was estimated by using the Black & Scholes method considering the EBITDA and Revenue of the Dynaflows's most recentaudited annual financial statements at the time of the delivery of such exercise of the call option to present value using a risk-adjusted discount rate. As of December 31, 2018, the call option was derecognized and a loss of 455 was recognized as Other income, net. As of December 31, 2017 and 2016, the Company recorded a gain of 1,727 and 2,981, respectively, related to the remeasurement at fair value of the put andcall option described above. F-90 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) 28.9.3. Reconciliation of recurring fair value measurements categorized within Level 3 The following table shows the reconciliation of recurring fair value measurements categorized within Level 3 of the fair value hierarchy: Financial Assets Financial liabilities Call option onminority interest Contingentconsideration Put option onminority interest December 31, 2016 319 23,314 4,388 Fair value remeasurement (1) 136 (6,878) (1,591)Acquisition of business (1) — 13,199 — Payments (2) — (5,990) — Interests (1) — 260 — December 31, 2017 455 23,905 2,797 Financial Assets Financial liabilities Call option onminority interest Contingentconsideration Put option onminority interest December 31, 2017 455 23,905 2,797 Fair value remeasurement (1) — (6,700) (1,611)Reclassification to amortised cost (1) — (1,778) — Derecognition of call option (1) (455) — — Acquisition of business (1) — 3,029 — Payments (2) — (8,947) (1,186)Interests (1) — 258 — December 31, 2018 — 9,767 — (1) Non-cash transactions.(2) Cash transactions included in investing activities in the Consolidated Statement of Cash Flows. 28.9.4 Foreign exchange futures and forward contracts During the years ended December 31, 2018, 2017 and 2016, the Argentinian subsidiaries, Sistemas Globales S.A. and IAFH Global S.A. acquired foreignexchange futures contracts with SBS Sociedad de Bolsa S.A. (SBS) in U.S. dollars, with the purpose of hedging the possible decrease of assets' value held inArgentine Pesos due to the risk of exposure to fluctuations in foreign currency. The foreign exchange futures contracts were recognized, according to IFRS 9,as financial assets at fair value through profit or loss. For the years ended December 31, 2018, 2017 and 2016 the Company recognized a gain of 594, and aloss of 421 and 1,126, respectively. These futures contracts have daily settlements, in which the futures value changes daily. Sistemas Globales S.A. and IAFH Global S.A. recognize dailyvariations in SBS primary accounts, and the gains or losses generated by each daily position through profit or loss. Thus, at the closing of each day,according to the future price of the exchange rate U.S. Dollar – Argentine peso, the companies perceive a gain or loss for the difference. As future contractshave daily settlements, hence fair value as of December 31, 2018, 2017 and 2016 was zero. F-91 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) Pursuant to these contracts, Sistemas Globales S.A. and IAFH Global S.A. are required to maintain collaterals in an amount equal to a percentage of thenotional amounts purchased until settlement of the contracts. As of December 31, 2018 and 2017, IAFH Global S.A. held a 10% of the value of thosecollaterals in LETEs and LEBACs, respectively, in SBS primary account. This ensures minimal funding, in case SBS has to transfer funds to "Mercado aTérmino de Rosario S.A" (ROFEX) if losses are generated by daily settlements. This amount must also remain restricted during the term of the contracts. As ofDecember 31, 2018 and 2017, both collaterals regarding the transactions are restricted assets for an amount of 975 and 473 in LETEs and LEBACs,respectively, included as investments. During the year ended December 31, 2017, the subsidiary Globant LLC, acquired foreign exchange forward contracts with Bridge Bank in rupees currency,with the purpose of hedging the risk of exposure to fluctuations in that currency within the Group. Those contracts were recognized as financial assets at fairvalue through profit or loss. For the year ended December 31, 2017 the Company recognized a gain of 118. During 2018, the subsidiaries, Sistemas Globales S.A., IAFH Global S.A., Sistemas Colombia S.A., Sistemas Globales Chile Asesorías Ltda. and SistemasGlobales Uruguay S.A., acquired foreign exchange forward contracts with certain banks in U.S. dollars, with the purpose of hedging the possible decrease ofassets' value held in Argentine Pesos, Colombian Pesos, Chilean pesos and Uruguayan pesos, due to the risk of exposure to fluctuations in those foreigncurrencies. Those contracts were recognized, according to IFRS 9, as financial assets at fair value through profit or loss. For the year ended December 31,2018 and 2017, the Company recognized a gain of 1,714 and 34, respectively. During 2017, the Argentine subsidiary, Sistemas Globales, entered intoforeign exchange forward contracts with HSBC in U.S. dollars at a specified price with the purpose of reducing the risk of exposure to fluctuations in foreigncurrency. As of December 31, 2018 and 2017, the foreign exchange forward contracts that were recognized as financial assets and liabilities at fair valuethrough profit or loss were as follows: Foreign currency Notional foreign Fair value assets / Settlement date rate from contracts currency rate (liabilities) January 31, 2019 40.06 39.67 26 February 28, 2019 41.54 41.17 15 April 30, 2019 44.44 44.30 3 Fair value as of December 31, 2018 44 April 30, 2019 44.26 44.30 (1)May 31, 2019 45.74 45.92 (5)May 31, 2019 45.69 45.92 (6)Fair value as of December 31, 2018 (12) Foreign currency Notional foreign Fair value assets / rate from contracts currency rate (liabilities) Less than 3 months 18.05 18.95 73 Fair value as of December 31, 2017 73 F-92 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) The most frequently applied valuation techniques include forward pricing models. The models incorporate various inputs including: foreign exchange spot,interest rates curves of the respective currencies and the term of the contract. NOTE 29 — CONTINGENCIES On February 10, 2012, Federación Argentina de Empleados de Comercio y Servicios (''FAECYS'') filed a lawsuit against our Argentine subsidiary, SistemasGlobales S.A., in which FAECYS demanded the application of its collective labor agreement to the employees of that subsidiary. According to FAECYS'sclaim, Sistemas Globales should have withheld and transferred to FAECYS an amount of 0.5% of the gross monthly salaries of Sistemas Globales' employees. On April 16, 2018, the lower court dismissed the complaint filed by FAECYS, and such decision was subsequently confirmed by the court of appeals. NOTE 30 — CAPITAL AND RESERVES 30.1 Issuance of common shares On December 31, 2018, 511,668 common shares were issued after vested options arising from the 2012 and 2014 share-based compensation plan wereexercised by certain employees. Options were exercised at an average price of 13.76 per share amounting to a total of 7,040. On December 31, 2018, 564,995 Restricted Stock Units (RSU) were granted to certain employees and directors of the Company. During 2018, 163,233 RSUswere vested at an average price of 43.13 per share amounting to a total of 7,040 (non-cash transaction). A total amount of 4,995 of such vested RSUscorresponds to a provision for bonus given to employees that was payable in RSUs and was included in the opening balance of additional paid in capital. On October 16, 2018, the Company issued 16,315 common shares for a total amount of 960 as part of the subscription agreement with Small Footprint'ssellers signed on October 15, 2018, pursuant to which the Company agreed to issue to the subscribers and the subscribers agree to subscribe from theCompany a certain amount of shares. For the second tranche due on March 1, 2019, the Company may require the subscribers to apply up to an amount of25% of the first-earn out payment. On July 20, 2018, the Company issued 18,692 common shares for a total amount of 982 as part of the subscription agreement with WAE's sellers signed onMay, 23, 2016, pursuant to which the Company agreed to issue to the subscribers and the subscribers agree to subscribe from the Company restrictedcommon stock up to an amount of 30% of the Purchase Price. On June 12, 2018, the Company issued 9,120 common shares for a total amount of 400 as part of the subscription agreement stated in the stock purchaseagreement signed with Clarice´s sellers, explained in note 24.2. On February 22, 2018, the Company issued 12,265 common shares for a total amount of 541 as part of the subscription agreement stated in the stockpurchase agreement signed with Pointsource´s sellers, as part of the business combination explained in note 24.8. On February 16, 2018, the Company issued 7,605 common shares for an amount of 334 as part of the subscription agreement signed with Ratio´s sellers, aspart of the business combination explained in note 24.7. F-93 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) On December 31, 2017, 338,709 common shares were issued after vested options arising from the 2012 and 2014 share-based compensation plan wereexercised by some employees. Options were exercised at an average price of 15.63 per share amounting to a total of 5,296. On December 31, 2017, 254,328 Restricted Stock Units (RSU) were granted to certain employees and directors of the Company. During 2017, 86,931 RSUswere vested at an average price of 36.11 per share amounting to a total of 3,141 (non-cash transaction). On August 17, 2017, the Company issued 34,219 common shares for a total amount of 1,435 as part of the subscription agreement stated in the stockpurchase agreement signed with WAE´s sellers, as part of the business combination explained in note 24.4. On June 1, 2017, the Company issued 84,953 common shares for a total amount of 3,100 as part of the subscription agreement stated in the stock purchaseagreement signed with PointSource´s sellers, as part of the business combination explained in note 24.8. On March 1, 2017, the Company issued 34,309 common shares for a total amount of 1,160 as part of the subscription agreement stated in the stock purchaseagreement signed with Ratio´s sellers, as part of the business combination explained in note 24.7. On December 31, 2016, 243,915 common shares were issued after vested options arising from the 2012 and 2014 share-based compensation plan wereexercised by some employees. Options were exercised at an average price of 7.64 per share amounting to a total of 1,863. On November 14, 2016, the Company issued 70,380 common shares for an amount of 2,970 as part of the subscription agreement stated in the Stock PurchaseAgreement signed with L4's sellers, explained in note 24.6. On July 25, 2016, the Company issued 23,508 common shares for an amount of 900 as part of the subscription agreement signed with Clarice’s sellers,explained in note 24.2. On May 23, 2016, the Company issued 75,221 common shares for an amount of 2,550 as part of the subscription agreement stated in the Stock PurchaseAgreement signed with WAE's sellers, as part of the business combination explained in note 24.4. On January 22, 2016, the Company granted 11,213 treasury shares at a price of $ 27.2 per share to Mr. Spitz to cancel the remaining liability of 305, relatedto the acquisition of the minority interest of Huddle Group. The Company withholds the remaining amount of 20 as an escrow. On April 30, 2015, the Company granted to one employee 30,000 common shares to be carried out in two tranches: 15,000 shares delivered during April2015 and the remaining 15,000 shares were delivered on April 1, 2016. Shares were granted at a price of 21.01 per share amounting to a total of 315 per year. 30.2 Public offerings On August 2, 2016, the Company applied to the Luxembourg Stock Exchange for listing on the Official List of the Luxembourg Stock Exchange and for theadmission to trading on its regulated market of 34,594,324 existing common shares, issued in registered form, with a nominal value of US$ 1.20 each,representing the entire share capital of the Company at that moment. The fees estimated in connection with the listing of the common shares amounted to 162and are including within professional services. F-94 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) On August 11, 2016, the Company applied to the Luxembourg Financial Sector Supervisory Authority (Commission de Surveillance du Secteur Financier)(the “CSSF”) in its capacity as competent authority, for the approval of the Company’s prospectus, which was approved by the CSSF on August 11, 2016. On June 20, 2018, the Company and WPP Luxembourg Gamma Three S.à r.l. (the “Selling Shareholder”) entered into an underwriting agreement withGoldman Sachs & Co. LLC and J.P. Morgan Securities LLC relating to the offer and sale of an aggregate of 5,815,259 common shares of the Company,nominal value $1.20 per share, plus, at the option of the Underwriters, an additional 872,289 common shares pursuant to an option, at a public offering priceof $52.00 per common share. On June 21, 2018, the Underwriters exercised their option to purchase an additional 872,289 common shares. As of December 31, 2018, 32,496,961 common shares of the Company's share capital are registered with the SEC and quoted in the New York StockExchange. NOTE 31 — APPROPRIATION OF RETAINED EARNINGS UNDER SUBSIDIARIES´ LOCAL LAWS In accordance with Argentine and Uruguayan Law, the Argentine and Uruguayan subsidiaries of the Company must appropriate at least 5% of net income forthe year to a legal reserve, until such reserve equals 20% of their respective share capital amounts. On December 29, 2017, Argentine Law No. 27,430 amending the income tax law was enacted. According to the amendments, for fiscal years beginning on orafter January 1, 2018 the distribution of dividends is now subject to a 7% withholding for 2018 and 2019 and 13% withholding for 2020 onwards. TheEqualization Tax, which levied distributions made out of previously untaxed income, was eliminated. On December 23, 2013, the Argentine government adopted a new double taxation treaty with Spain, which applied retroactively from January 1, 2013.According this treaty, the tax applicable on dividends distributed by our Argentine Subsidiaries to the Spain Holdco, is limited to 10% on the gross amountof dividends distributed. As of December 31, 2018, the legal reserve amounted to 765 for all Argentine subsidiaries and as of that date was fully constituted. As of December 31, 2018, the legal reserve amounted to 42 for the Company's Uruguayan subsidiary and as of that date was fully constituted. According to the ByLaws of Sistemas Colombia S.A.S., the Colombian subsidiary of the Company must appropriate at least 10% of the net income of the yearto a legal reserve until such reserve equal 50% of its share capital. As of December 31, 2018, there was a legal reserve of 0.4 that was fully constituted. Under Spanish law, the Spanish subsidiaries of the Company must appropriate 10% of its standalone profit to a legal reserve until such reserve equals to 20%of their respective share capital amount. As of December 31, 2018, the legal reserve amounted to 7,922 for all Spanish subsidiaries. In accordance with Brazilian Law, there is no requirement for limited liability companies to allocate profits for the creation of a legal reserve. The Company'sBrazilian subsidiary did not have a legal reserve as of December 31, 2018. F-95 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) Under Luxembourg law, at least 5% of our net profit per year must be allocated to the creation of a legal reserve until such reserve has reached an amountequal to 10% of our issued share capital. If the legal reserve subsequently falls below the 10% threshold, at least 5% of net profit must be allocated toward thereserve. If the legal reserve exceeds 10% of our issued share capital, the legal reserve may be reduced in proportion so that it does not exceed 10% of ourissued share capital. The legal reserve is not available for distribution. As of December 31, 2018, the legal reserve amounted to 437. Dividends paid by theCompany to the holders of our common shares are as a rule subject to a 15% withholding tax in Luxembourg, unless a reduced withholding tax rate appliespursuant to an applicable double tax treaty or an exemption pursuant to the application of the participation exemption, and, to the extent withholding taxapplies, we are responsible for withholding amounts corresponding to such taxation at its source. In accordance with Peru corporate law, the Peruvian subsidiary of the Company must reserve at least 10% of its net income of the year to a legal reserve, untilsuch reserve equals 20% of its respective amount capital stock. As of December 31, 2018, there was no legal reserve constituted. According to Mexican Law, the Mexican subsidiary of the Company must appropriate at least 5% of net income of the year to a legal reserve, until suchreserve equals the fifth portion of their respective share capital amounts. As of December 31, 2018, the legal reserve amounted to 68 for the Company'sMexican subsidiary. Regarding India Law, the Companies Act, 2013 does not mandate any fixed quantum of profits to be transferred / allocated to the reserves of a company. Asof December 31, 2018, the legal reserve amounted to 17 for the Company's Indian subsidiary. In UK there is no requirement for the UK´s Company subsidiary to allocate profits for the creation of a legal reserve. As of December 31, 2018, there was nolegal reserve constituted. In Chile there is no requirement for the Chilean subsidiary of the Company to allocate profits for the creation of a legal reserve. As of December 31, 2018,there was no legal reserve constituted. According to French law, a minimum of 5% of the profit of the year must be allocated to a reserve account named "legal reserve", until such reserve amounts10% of the share capital of the French subsidiary of the Company. As of December 31, 2018, there was no legal reserve constituted. In accordance with the law of Belarus, the Belorussian subsidiary must allocate an amount up to 25% of annual payroll reserve fund for salaries. The sourcefor creating this fund is the profit remaining at the disposal of the company after paying taxes and other obligatory payments. As of December 31, 2018, therewas no legal reserve constituted. In the United States there is no requirement for the Company's U.S. subsidiary to allocate profits for the creation of a legal reserve. As of December 31, 2018,there was no legal reserve constituted. According to Romanian Companies Law, the Romanian subsidiary of the Company has the obligation to allocate each year at least 5% of its profit to areserve fund, until the value of the fund is at least 20% of the Romanian Company's share capital of the company. As of December 31, 2018, the reserve fundof the company was of Romanian Leu ("RON") 56. In Canada there is no requirement for the Canada's Company subsidiary to allocate profits for the creation of a legal reserve. As of December 31, 2018, therewas no legal reserve constituted. F-96 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) NOTE 32 – SUBSEQUENT EVENTS The Company evaluated transactions occurring after December 31, 2018 in accordance to IAS 10 ‘Events after the reporting period’. 32.1 Acquisition of Avanxo On January 17, 2019, the Company entered into a Share Purchase Agreement (the “Purchase Agreement”) with the shareholders of Avanxo (Bermuda)Limited (“Avanxo”), pursuant to which the Company agreed to purchase all of Avanxo’s share capital subject to the terms and conditions set forth in thePurchase Agreement. Avanxo is a cloud consulting and implementation company headquartered in Bermuda, with operations in Brazil, Mexico, Colombia,Peru, Argentina and the United States. The Agreement contains customary representations, warranties, covenants, indemnities and conditions to closing, including non-objection to the Acquisitionby the Colombian antitrust authority (Superintendencia de Industria y Comercio). The transaction closed on February 1, 2019. Under the terms of the Purchase Agreement, the total consideration payable by the Company to Avanxo’s shareholders, assuming a debt-free and cash-freebalance sheet, is $48,557. Such purchase price may be subject to a working capital adjustment, reduction for uncollected accounts receivables and theamounts of the Earn-Out Payments (as defined below) that become due and payable. •Up-front payment: On February 1, 2019, the Company paid an aggregate consideration of 40,939 to the seller. •Earn-out payments: the remaining amount of 7,618 will be payable in two installments, at the end of each of the years ending December 31, 2019and 2020, and is subject to upwards or downwards adjustment based on Avanxo’s achievement of specified revenue, gross margin and operatingmargin targets for each of the years ending December 31, 2019 and 2020 (the “Earn Out Payments”) that apply only to certain sellers. At the Company's sole option, the Company will be entitled to pay a portion of the Total Consideration through the issuance and delivery of common shares,as follows: (i) up to $865,323 of the amount payable on the closing of the Acquisition and (ii) at the time of payment of any Earn Out Payments, up to 25% ofsuch Earn Out Payment. The number of common shares that may be issued and delivered to Avanxo´s selling shareholders will be determined based on thevolume weighted average trading price for the 60 calendar day period prior to closing of each share subscription. Common shares issued pursuant to theexercise of this option will be subject to a 12-month lock-up period. These common shares are expected to be issued in reliance on the exemption fromregistration provided by Regulation S under the Securities Act of 1933, as amended. As of the date of issuance of these consolidated financial statements due to the recent of this acquisition, the accounting for this acquisition is incomplete;hence, pursuant the guidance in paragraph B66 of IFRS 3, the Company has not included in this footnote the following disclosures as required by suchstandard, as follows: •Fair value of the total consideration transferred since the Company has not completed the fair value analysis of the consideration transferred as of thedate of issuance of these financial statements. •The amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed, the total amount of goodwill(including a qualitative description of the factors that make up the goodwill recognized and the amount of goodwill that will be deducted for taxpurposes) and other intangibles, as applicable. •The gross contractual amounts of the acquired receivables, and the best estimate at the acquisition date of the contractual cash flows not expected tobe collected. For each contingent liability to be recognized, if any, an estimate of its financial effect, an indication of the uncertainties relating to theamount or timing of any outflow and the possibility of any reimbursement, and the reasons why the liability cannot be measured reliably, ifapplicable. F-97 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. GLOBANT S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAs of December 31, 2018 and 2017 and for the three years in the period ended December 31, 2018(amounts are expressed in thousands of U.S. dollars, except where expressly indicated that amounts are stated in thousands of other currencies) •The amount of revenues and profit or loss of the acquired subsidiary since the acquisition date, and the amount of revenues and profit or loss of thecombined entity as if the acquisition has been made at the beginning of the reporting period, since the acquired subsidiary did not have availablefinancial information prepared under IFRS at the acquisition date. The preparation of this information under IFRS has not been completed as of thedate of issuance of these financial statements. 32.2 Loan agreement with Wolox On January 4, 2019 ("issuance date"), Globant España S.A. and Wolox, LLC (Wolox), agreed into a convertible promissory note purchase agreement wherebyGlobant España S.A. provides financing facility for 1,800. Interest on the entire outstanding principal balance is computed at an annual rate equal to Liborplus 2%. Wolox shall repay the loan in full within 18 months from the date as of the issuance date. Globant España S.A has the right to convert any portion ofthe outstanding principal into fully paid and nonassessable membership interest of Wolox. NOTE 33 – APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS The Consolidated Financial Statements were approved by the Board of Directors on March 22, 2019. Martín MigoyaPresident F-98 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Exhibit 1.1 « GLOBANT S.A. » société anonyme L-1855 Luxembourg, 37A, avenue J.F. Kennedy R.C.S. Luxembourg, section B numéro 173.727 ********************************************************************************** STATUTS COORDONNES à la date du 22 janvier 2019 ********************************************************************************** PAGE 1Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. A. NAME - DURATION - PURPOSE - REGISTERED OFFICEArticle 1 Name There exists a company in the form of a joint stock company (société anonyme) under the name of “GLOBANT S.A.” (the "Company") which shallbe governed by the law of 10 August 1915 concerning commercial companies, as amended (the “Law”), as well as by the present articles of association. Article 2 Duration The Company is incorporated for an unlimited duration. It may be dissolved at any time and without cause by a resolution of the general meeting ofshareholders, adopted in the manner required for an amendment of these articles of association. Article 3 Object 3.1. The Company's primary purpose is the creation, holding, development and realization of a portfolio, consisting of interests and rights ofany kind and of any other form of investment in entities in the Grand Duchy of Luxembourg and in foreign entities, whether such entities exist or are to becreated, especially by way of subscription, acquisition by purchase, sale or exchange of securities or rights of any kind whatsoever, such as equityinstruments, debt instruments, patents and licenses, as well as the administration and control of such portfolio. 3.2. The Company may further grant any form of security for the performance of any obligations of the Company or of any entity in which itholds a direct or indirect interest or right of any kind or in which the Company has invested in any other manner or which forms part of the same group ofentities as the Company and lend funds or otherwise assist any entity in which it holds a direct or indirect interest or right of any kind or in which theCompany has invested in any other manner or which forms part of the same group of companies as the Company. 3.3. The Company may borrow in any form and may issue any kind of notes, bonds and debentures and generally issue any debt, equity and/orhybrid or other securities of any kind in accordance with Luxembourg law. 3.4. The Company may carry out any commercial, industrial, financial, real estate, technical, intellectual property or other activities which itmay deem useful in accomplishment of these purposes. Article 4 Registered office 4.1 The Company's registered office is established in the city of Luxembourg, Grand Duchy of Luxembourg. The Company's registered officemay be transferred by a resolution of the board of directors within the same municipality. 4.2 It may be transferred to any other municipality in the Grand Duchy of Luxembourg by means of a resolution of the general meeting ofshareholders. 4.3 Branches or other offices may be established either in the Grand Duchy of Luxembourg or abroad by a resolution of the board of directors. PAGE 2Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. B. SHARE CAPITAL - COMMON SHARES - REGISTER OF COMMON SHARES - OWNERSHIP AND TRANSFER OF COMMON SHARES Article 5 Share capital 5.1. The Company has a share capital of forty-three million three hundred twenty-four thousand five hundred seventy-six U.S. dollars andeighty cent (USD 43,324,576.80) represented by thirty-six million one hundred three thousand eight hundred fourteen (36,103,814) common shares having anominal value of one U.S. dollar and twenty cents (USD 1.20) per common share. 5.2. The Company's issued share capital may be (i) increased by a resolution of the board of directors (or delegate thereof) in accordance witharticles 6.1 and 6.2 of these articles of association or (ii) increased or reduced by a resolution of the general meeting of shareholders, adopted in the mannerrequired for an amendment of these articles of association. Article 6 Authorized capital 6.1 The Company’s authorized capital, excluding the Company's share capital, is set at seven million five hundred fifty-five thousand twohundred twenty-seven U.S. dollars and sixty cents (USD 7,555,227.60) consisting in six million two hundred ninety-six thousand twenty-three (6,296,023)common shares having a nominal value of one U.S. dollar and twenty cents (USD 1.20) per common share. 6.2 The board of directors is authorized to issue common shares, to grant options to subscribe for common shares and to issue any otherinstruments convertible into, or giving rights to, common shares within the limit of the authorized share capital, to such persons and on such terms as it shallsee fit, and specifically to carry out such issue or issues without reserving a pre-emptive subscription right for the existing shareholders during a period oftime from the date of the extraordinary general meeting of shareholders held on 8 May 2017 and ending on the fifth (5th) anniversary of the date ofpublication in the Recueil Electronique des Sociétés et Associations of the minutes of the extraordinary general meeting of shareholders held on 8 May 2017.Such common shares may be issued above, at or below market value, above or at nominal value, or by way of incorporation of available reserves (includingpremium). The general meeting has authorized the board of directors to waive, suppress or limit any pre-emptive subscription rights of shareholders to theextent the board deems such waiver, suppression or limitation advisable for any issue or issues of common shares within the scope of the Company’sauthorized (un-issued) share capital. This authorization may be renewed, amended or extended by resolution of the general meeting of shareholders adoptedin the manner required for an amendment of these articles of association. Upon an issue of shares within the authorized share capital, the board shall have thepresent articles of association amended accordingly. 6.3 The authorized capital of the Company may be increased or reduced by a resolution of the general meeting of shareholders adopted in themanner required for amendments of these articles of association. Article 7 Common shares 7.1 The Company’s share capital is divided into common shares, each of them having the same nominal value. The common shares of theCompany are shall remain in registered form only. 7.2 The Company may have one or several shareholders. PAGE 3Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 7.3 No fractional common shares shall be issued or exist. 7.4 Within the limits and conditions laid down by the Law, the Company may repurchase its own common shares and may hold them intreasury. 7.5 A register of common shares will be kept by the Company and will be available for inspection by any shareholder. Ownership of registeredcommon shares will be established by inscription in the said register or in the event separate registrars have been appointed pursuant to article 7.6, in suchseparate register(s). Without prejudice to the conditions for transfer by book entries provided for in article 7.8 of these articles of association, a transfer ofregistered common shares shall be carried out by means of a declaration of transfer entered in the relevant register, dated and signed by the transferor and thetransferee or by their duly authorized representatives or by the Company upon notification of the transfer or acceptance of the transfer by the Company. TheCompany may accept and enter in the relevant register a transfer on the basis of correspondence or other documents recording the agreement between thetransferor and the transferee. 7.6 The Company may appoint registrars in different jurisdictions who will each maintain a separate register for the registered common sharesentered therein and the holders of common shares may elect to be entered in one of the registers and to be transferred from time to time from one register toanother register. The board of directors may however impose transfer restrictions for common shares that are registered, listed, quoted, dealt in or have beenplaced in certain jurisdictions in compliance with the requirements applicable therein. A transfer to the register kept at the Company's registered office mayalways be requested. 7.7 Subject to the provisions of article 7.8 and article 7.10, the Company may consider the person in whose name the registered common sharesare registered in the register of shareholders as the full owner of such registered common shares. In the event that a holder of registered common shares doesnot provide an address in writing to which all notices or announcements from the Company may be sent, the Company may permit a notice to this effect to beentered into the register of shareholders and such holder’s address will be deemed to be at the registered office of the Company or such other address as maybe so entered by the Company from time to time, until a different address shall be provided to the Company by such holder in writing. The holder may, at anytime, change his address as entered in the register of shareholders by means of written notification to the Company. 7.8 The common shares may be held by a holder (the “Holder”) through a securities settlement system or a Depository (as this term is definedbelow). The Holder of common shares held in such fungible securities accounts has the same rights and obligations as if such Holder held the common sharesdirectly. The common shares held through a securities settlement system or a Depository shall be recorded in an account opened in the name of the Holderand may be transferred from one account to another in accordance with customary procedures for the transfer of securities in book-entry form. However, theCompany will make dividend payments, if any, and any other payments in cash, common shares or other securities, if any, only to the securities settlementsystem or Depository recorded in the register of shareholders or in accordance with the instructions of such securities settlement system or Depository. Suchpayment will grant full discharge of the Company’s obligations in this respect. PAGE 4Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 7.9 In connection with a general meeting, the board of directors may decide that no entry shall be made in the register of shareholders and nonotice of a transfer shall be recognized by the Company and the registrar(s) during the period starting on the Record Date (as hereinafter defined) and endingon the closing of such general meeting. 7.10 All communications and notices to be given to a registered shareholder shall be deemed validly made if made to the latest addresscommunicated by the shareholder to the Company in accordance with article 7.7 or, if no address has been communicated by the shareholder, the registeredoffice of the Company or such other address as may be so entered by the Company in the register from time to time according to article 7.8. 7.11 Where common shares are recorded in the register of shareholders in the name of or on behalf of a securities settlement system or theoperator of such system and recorded as book-entry interests in the accounts of a professional depositary or any sub-depositary (any depositary and any sub-depositary being referred to hereinafter as a “Depositary”), the Company - subject to having received from the Depositary a certificate in proper form - willpermit the Depository of such book-entry interests to exercise the rights attaching to the common shares corresponding to the book-entry interests of therelevant Holder, including receiving notices of general meetings, admission to and voting at general meetings, and shall consider the Depository to be theholder of the common shares corresponding to the book-entry interests for purposes of this article 7 of the present articles of association. The board ofdirectors may determine the formal requirements with which such certificates must comply. Article 8 Ownership of common shares 8.1 The Company will recognize only one holder per common share. If a common share is owned by several persons, they must designate asingle person to be considered as the sole owner of such common share in relation to the Company. The Company is entitled to suspend the exercise of allrights attached to a common share held by several owners until one (1) owner has been designated. 8.2 The common shares are freely transferable. All rights and obligations attached to any common share are passed to any transferee thereof. C. GENERAL MEETING OF SHAREHOLDERS Article 9 Powers of the general meeting of shareholders The shareholders exercise their collective rights in the general meeting of shareholders. Any regularly constituted general meeting of shareholders ofthe Company represents the entire body of shareholders of the Company. It shall have the broadest powers to authorize, order, carry out or ratify acts relatingto the Company. PAGE 5Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Article 10 Convening general meetings of shareholders 10.1 The general meeting of shareholders of the Company may at any time be convened by the board of directors, to be held at such place andon such date as specified in the convening notice of such meeting. 10.2 The general meeting of shareholders must be convened by the board of directors, upon request in written indicating the agenda, addressedto the board of directors by one or several shareholders representing at least ten percent (10%) of the Company´s issued share capital. In such case, a generalmeeting of shareholders must be convened and shall be held within a period of one (1) month from receipt of such request. Shareholder(s) holding at least fivepercent (5%) of the Company´s issued share capital may request the addition of one or several items to the agenda of any general meeting of shareholders andpropose resolutions. Such requests must be received at the Company´s registered office by registered mails at least twenty-two (22) days before the date ofsuch meeting. 10.3 The annual general meeting of shareholders shall be held within six (6) months of the end of each financial year in Luxembourg, at theregistered office of the Company or at such other place as may be specified in the convening notice of such meeting. 10.4 Other general meetings of shareholders may be held at such place and time as may be specified in the respective notice of meeting. 10.5 General meetings of shareholders shall be convened in accordance with the provisions of the Law and if the common shares of theCompany are listed on a foreign stock exchange, in accordance with the requirements of such foreign stock exchange applicable to the Company. 10.6 If the common shares of the Company are not listed on any foreign stock exchange, all shareholders recorded in the register of shareholderson the date of the general meeting of the shareholders are entitled to be admitted to the general meeting of shareholders. 10.7 If the common shares of the Company are listed on a stock exchange, all shareholders recorded in any register of shareholders of theCompany are entitled to be admitted and vote at the general meeting of shareholders based on the number of shares they hold on a date and time precedingthe general meeting of shareholders as the record date for admission to the general meeting of shareholders (the “Record Date”), which the board of directorsmay determine as specified in the convening notice. 10.8 Any shareholder, Holder or Depositary, as the case may be, who wishes to attend the general meeting must inform the Company thereof nolater than on the fourteenth day preceding the date of such general meeting, or by any other date which the board of directors may determine and as specifiedin the convening notice, in a manner to be determined by the board of directors in the convening notice. In case of common shares held through the operatorof a securities settlement system or with a Depositary designated by such Depositary, a holder of common shares wishing to attend a general meeting ofshareholders should receive from such operator or Depositary a certificate certifying the number of common shares recorded in the relevant account on theRecord Date. The certificate should be submitted to the Company no later than three (3) business days prior to the date of such general meeting. If theshareholder votes by means of a proxy, the proxy shall be deposited at the registered office of the Company or with any agent of the Company, dulyauthorized to receive such proxies, at the same time. The board of directors may set a shorter period for the submission of the certificate or the proxy in whichcase this will be specified in the convening notice. PAGE 6Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 10.9 If all shareholders are present or represented at a general meeting of shareholders and state that they have been informed of the agenda ofthe meeting, the general meeting of shareholders may be held without prior notice. Article 11 Conduct of general meetings of shareholders 11.1 A board of the meeting shall be formed at any general meeting of shareholders, composed of a chairman, a secretary and a scrutineer, eachof whom shall be appointed by the general meeting of shareholders and who do not need to be shareholders. The board of the meeting shall ensure that themeeting is held in accordance with applicable rules and, in particular, in compliance with the rules in relation to convening the meeting, quorum, if any, andmajority requirements, vote tallying and representation of shareholders. 11.2 An attendance list must be kept for any general meeting of shareholders. 11.3 Each common share entitles the holder thereof to one vote, subject to the provisions of the Law. Unless otherwise required by applicablelaw or by these articles of association, resolutions at a general meeting of shareholders duly convened are adopted by a simple majority of the votes validlycast, regardless of the proportion of the issued share capital of the Company present or represented at such meeting. Abstention and nil votes will not be takeninto account. 11.4 A shareholder may act at any general meeting of shareholders by appointing another person, shareholder or not, as his proxy in writing by asigned document transmitted by mail or facsimile or by any other means of communication authorized by the board of directors. One person may representseveral or even all shareholders. 11.5 Shareholders who participate in a general meeting of shareholders by conference call, video-conference or by any other means ofcommunication authorized by the board of directors, which allows such shareholder’s identification and which allows that all the persons taking part in themeeting hear one another on a continuous basis and may effectively participate in the meeting, are deemed to be present for the computation of quorum andmajority, subject to such means of communication being made available at the place of the meeting. 11.6 Each shareholder may vote at a general meeting of shareholders through a signed voting form sent by mail or facsimile or by any othermeans of communication authorized by the board of directors and delivered to the Company’s registered office or to the address specified in the conveningnotice. The shareholders may only use voting forms provided by the Company which contain at least the place, date and time of the meeting, the agenda ofthe meeting, the proposals submitted to the resolution of the meeting, as well as for each proposal three boxes allowing the shareholder to vote in favor of oragainst the proposed resolution or to abstain from voting thereon by ticking the appropriate boxes. The Company will only take into account voting formsreceived no later than three (3) business days prior to the date of the general meeting of shareholders to which they relate. The board of directors may set ashorter period for the submission of the voting forms. PAGE 7Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 11.7 The board of directors may determine further conditions that must be fulfilled by the shareholders for them to take part in any generalmeeting of shareholders. Article 12 Amendments of the articles of association Subject to the provisions of the Law and of these articles of association, any amendment of the articles of association requires a majority of at leasttwo-thirds (2/3) of the votes validly cast at a general meeting at which at least half (1/2) of the issued share capital is represented. In case the second conditionis not satisfied, a second meeting may be convened in accordance with the Law, which may validly deliberate regardless of the proportion of the issued sharecapital of the Company represented at such meeting and at which resolutions are taken at a majority of at least two-thirds (2/3) of the votes validly cast.Abstention and nil votes will not be taken into account for the calculation of the majority. Article 13 Adjourning general meetings of shareholders The board of directors may adjourn any general meeting of shareholders already commenced, including any general meeting convened in order toresolve on an amendment of the articles of association, for a period of four (4) weeks. The board of directors must adjourn any general meeting of shareholdersalready commenced if so required by one or several shareholders representing in the aggregate at least twenty per cent (20%) of the Company’s issued sharecapital. By such an adjournment of a general meeting of shareholders already commenced, any resolution already adopted in such meeting will be cancelled.For the avoidance of doubt, once a meeting has been adjourned pursuant to the second sentence of this article 13, the board of directors shall not be requiredto adjourn such meeting a second time. Article 14 Minutes of general meetings of shareholders The board of any general meeting of shareholders shall draw up minutes of the meeting which shall be signed by the members of the board of themeeting as well as by any shareholder who requests to do so. Any copy and excerpt of such original minutes to be produced in judicial proceedings or to bedelivered to any third party shall be signed by the chairman or the co-chairman of the board of directors or by any two of its members. D. MANAGEMENT Article 15 Board of directors 15.1 The Company shall be managed by a board of directors, whose members may but do not need to be shareholders of the Company. Theboard of directors is vested with the broadest powers to take any actions necessary or useful to fulfill the Company’s corporate purpose, with the exception ofthe actions reserved by law or these articles of association to the general meeting of shareholders. 15.2 In accordance with article 60 of the Law, the Company’s daily management and the Company’s representation in connection with suchdaily management may be delegated to one or several members of the board of directors or to any other person(s) appointed by the board of directors, whomay but are not required to be shareholders or not, acting alone or jointly. Their appointment, revocation and powers shall be determined by a resolution ofthe board of directors. PAGE 8Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 15.3 The board of directors may also grant special powers by notarized proxy or private instrument to any person(s) acting alone or jointly withothers as agent of the Company. 15.4 The board of directors is composed of a minimum of seven (7) directors and a maximum of fifteen (15) directors. The board of directorsmust choose from among its members a chairman of the board of directors. It may also choose a co-chairman and it may choose a secretary, who does not needto be a shareholder or a member of the board of directors. Article 16 Election and removal of directors and term of the office 16.1 Directors shall be elected by the general meeting of shareholders, and shall be appointed for a period up to four (4) years; providedhowever that directors shall be elected on a staggered basis, with one third (1/3) of the directors being elected each year and; provided, further that such termmay be exceeded by a period up to the annual general meeting held following the fourth anniversary of the appointment. Each elected director shall holdoffice until his or her successor is elected. If a legal entity is elected director of the Company, such legal entity must designate an individual as permanentrepresentative who shall execute this role in the name and for the account of the legal entity. The relevant legal entity may only remove its permanentrepresentative if it appoints a successor at the same time. An individual may only be a permanent representative of one director and may not be a director atthe same time. 16.2 Any director may be removed at any time without cause or prior notice by the general meeting of shareholders. 16.3 Directors shall be eligible for re-election indefinitely. 16.4 If a vacancy in the office of a member of the board of directors because of death, legal incapacity, bankruptcy, retirement or otherwiseoccurs, such vacancy may be filled on a temporary basis by a person designated by the remaining board members until the next general meeting ofshareholders, which shall resolve on a permanent appointment. Article 17 Convening meetings of the board of directors 17.1 The board of directors shall meet following notice validly given by the chairman or by any two (2) of its members at the place indicated inthe notice of the meeting as described in the next paragraph. 17.2 Written notice of any meeting of the board of directors must be given to the directors at least five (5) days in advance of the date scheduledfor the meeting by mail, facsimile, electronic mail or any other means of communication, except in case of emergency, in which case the nature and thereasons of such emergency must be indicated in the notice. Such convening notice is not necessary in case of assent to waive such requirement of eachdirector in writing by mail, facsimile, electronic mail or by any other means of communication, a copy of such document being sufficient proof thereof. Also,a convening notice is not required for a board meeting to be held at a time and location determined in a prior resolution adopted by the board of directors. Noconvening notice shall furthermore be required in case all members of the board of directors are present or represented at a meeting of the board of directors orin the case of resolutions in writing pursuant to these articles of association. PAGE 9Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Article 18 Conduct of meetings of the board of directors 18.1 The chairman of the board of directors shall preside at all meetings of the board of directors. In the absence of the chairman, the board ofdirectors may appoint another director as chairman pro tempore. 18.2 The board of directors can act and deliberate validly only if at least the majority of its members are present or represented at a meeting ofthe board of directors. 18.3 Resolutions are adopted with the approval of a majority of the members present or represented at a meeting of the board of directors. In caseof a tie, the chairman of the board of directors shall have a casting (deciding) vote. In the absence of the chairman of the board of directors, the director whohas been appointed as chairman pro tempore of the meeting shall not have a casting (deciding) vote. 18.4 Any director may act at any meeting of the board of directors by appointing any other director as proxy in writing by mail, facsimile,electronic mail or by any other means of communication. Any director may represent one or several other directors. 18.5 Any director who participates in a meeting of the board of directors by conference-call, videoconference or by any other means ofcommunication which allows such director’s identification and which allows that all the persons taking part in the meeting hear one another on a continuousbasis and may effectively participate in the meeting, is deemed to be present for the computation of quorum and majority. A meeting of the board of directorsheld through such means of communication is deemed to be held at the Company’s registered office. 18.6 The board of directors may unanimously pass resolutions in writing which shall have the same effect as resolutions passed at a meeting ofthe board duly convened and held. Such resolutions in writing are passed when dated and signed by all directors on a single document or on multiplecounterparts, a copy of a signature sent by mail, facsimile or a similar means of communication being sufficient proof thereof. The single document showingall signatures or the entirety of the signed counterparts, as the case may be, will form the instrument giving evidence of the passing of the resolutions and thedate of the resolutions shall be the date of the last signature. 18.7 The secretary or, if no secretary has been appointed, the chairman which was present at a meeting, shall draw up minutes of the meeting ofthe board of directors, which shall be signed by the chairman or by the secretary, as the case may be, or by any two directors. Article 19 Committees of the board of directors The board of directors may establish one or more committees, including without limitation, an audit committee, a nominating and corporategovernance committee and a compensation committee, and for which it shall, if one or more of such committees are set up, appoint the members who may bebut do not need to be members of the board of directors (subject always, if the common shares of the Company are listed on a foreign stock exchange, to therequirements of such foreign stock exchange applicable to the Company and/or of such regulatory authority competent in relation to such listing), determinethe purpose, powers and authorities as well as the procedures and such other rules as may be applicable thereto. PAGE 10Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Article 20 Dealings with third parties The Company will be bound towards third parties in all circumstances by (i) the sole signature of the chairman of the board of directors, (ii) jointsignatures of any two directors or (iii) by the joint signatures or the sole signature of any person(s) to whom such signatory power has been granted by theboard of directors, within the limits of such authorization. With respect to matters that constitute daily management of the Company, the Company will be bound towards third parties by the sole signature of(i) the administrateur délégué or délégué à la gestion journalière (“Chief Executive Officer” or “CEO”), (ii) the directeur financier (“Chief FinancialOfficer” or “CFO”) or (iii) any other person(s) to whom such power in relation to the daily management of the Company has been delegated in accordancewith article 15 hereof, acting alone or jointly in accordance with the rules of such delegation, if any has(ve) been appointed. Article 21 Indemnification 21.1 The members of the board of directors are not held personally liable for the indebtedness or other obligations of the Company. As agents ofthe Company, they are responsible for the performance of their duties. Subject to the exceptions and limitations listed in article 21.2 and mandatoryprovisions of law, every person who is, or has been, a member of the board of directors or officer of the Company shall be indemnified by the Company to thefullest extent permitted by law against liability and against all expenses reasonably incurred or paid by him in connection with any claim, action, suit orproceeding which he becomes involved as a party or otherwise by virtue of his being or having been such a director or officer and against amounts paid orincurred by him in the settlement thereof. The words “claim”, “action”, “suit” or “proceeding” shall apply to all claims, actions, suits or proceedings (civil,criminal or otherwise including appeals) actual or threatened and the words “liability” and “expenses” shall include without limitation attorneys’ fees, costs,judgments, amounts paid in settlement and other liabilities. 21.2 No indemnification shall be provided to any director or officer (i) against any liability to the Company or its shareholders by reason ofwillful misconduct, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his office (ii) with respect to any matter as towhich he shall have been finally adjudicated to have acted in bad faith and not in the interest of the Company or (iii) in the event of a settlement, unless thesettlement has been approved by a court of competent jurisdiction or by the board of directors. 21.3 The right of indemnification herein provided shall be severable, shall not affect any other rights to which any director or officer may nowor hereafter be entitled, shall continue as to a person who has ceased to be such director or officer and shall inure to the benefit of the heirs, executors andadministrators of such a person. Nothing contained herein shall affect or limit any rights to indemnification to which corporate personnel, including directorsand officers, may be entitled by contract or otherwise under law. The Company shall specifically be entitled to provide contractual indemnification to andmay purchase and maintain insurance for any corporate personnel, including directors and officers of the Company, as the Company may decide upon fromtime to time. PAGE 11Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 21.4 Expenses in connection with the preparation and representation of a defense of any claim, action, suit or proceeding of the characterdescribed in this article 21 shall be advanced by the Company prior to final disposition thereof upon receipt of any undertaking by or on behalf of the officeror director, to repay such amount if it is ultimately determined that he is not entitled to indemnification under this article. Article 22 Conflicts of interest 22.1 Any director who has, directly or indirectly, a conflicting interest in a transaction submitted to the approval of the board of directors whichconflicts with the Company’s interest, must inform the board of directors of such conflict of interest and must have his declaration recorded in the minutes ofthe board meeting. The relevant director may not take part in the discussions on and may not vote on the relevant transaction. A special report shall be madeon any transactions in which any of the directors may have had an interest conflicting with that of the Company, at the next general meeting, before anyresolution is put in vote. 22.2 No contract or other transaction between the Company and any other company or firm shall be affected or invalidated by the fact that anyone or more of the directors or officers of the Company is interested in, or is a director, associate, officer, agent, adviser or employee of such other company orfirm. Any director or officer who serves as a director, officer or employee or otherwise of any company or firm with which the Company shall contract orotherwise engage in business shall not, by reason of such affiliation with such other company or firm only, be prevented from considering and voting oracting upon any matters with respect to such contract or other business. E. AUDITORS Article 23 Auditor(s) 23.1 The Company’s annual accounts shall be audited by one or more approved independent auditors (réviseurs d’entreprises agréés),appointed by the general meeting of shareholders at the board of directors’ recommendation (acting on the recommendation of the audit committee, if any).The general meeting of shareholders shall determine the number of auditor(s) and the term of their office which shall not exceed one (1) year and may berenewed for successive one (1) year periods. 23.2 An auditor may be dismissed at any time with cause (or with his approval) by the general meeting of shareholders. An auditor may bereappointed. F. FINANCIAL YEAR – PROFITS – INTERIM DIVIDENDS Article 24 Financial year The Company’s financial year shall begin on the first (1) January of each year and shall terminate on the thirty-first (31st) December of the same year. Article 25 Profits 25.1 At the end of each financial year, the accounts are closed and the board of directors shall draw up or shall cause to be drawn up an inventory ofassets and liabilities, the balance sheet and the profit and loss accounts in accordance with the Law. PAGE 12Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 25.2 From the Company’s annual net profits five per cent (5%) at least shall be allocated to the Company’s legal reserve. This allocation ceasesto be mandatory as soon and as long as the aggregate amount of the Company’s legal reserve amounts to ten per cent (10%) of the Company’s issued sharecapital. Sums contributed to the Company by shareholders may also be allocated to the legal reserve. In the case of a share capital reduction, the Company’slegal reserve may be reduced in proportion so that it does not exceed ten per cent (10%) of the issued share capital. 25.3 The annual general meeting of shareholders determines upon proposal of the board of directors how the remainder of the annual net profitswill be allocated. 25.4 Dividends which have not been claimed within five (5) years after the date on which they became due and payable revert back to theCompany. Article 26 Interim dividends – Share premium and additional premiums 26.1 The board of directors may declare and pay interim dividends in accordance with the provisions of the Law. 26.2 Any share premium, additional premiums or other distributable reserve may be freely distributed to the shareholders (including by interimdividends) subject to the provisions of the Law. G. LIQUIDATION Article 27 Liquidation 27.1 In the event of the Company’s dissolution, the liquidation shall be carried out by one or several liquidators, individuals or legal entities,appointed by the general meeting of shareholders resolving on the Company’s dissolution which shall determine the liquidator’s/liquidators’ powers andremuneration. Unless otherwise provided, the liquidator or liquidators shall have the most extensive powers for the realization of the assets and payment ofthe liabilities of the Company. 27.2 The surplus resulting from the realization of the assets and the payment of all liabilities shall be distributed among the shareholders inproportion to the number of common shares of the Company held by them. H. GOVERNING LAW Article 28 Governing law All matters not governed by these articles of association shall be determined in accordance with the Law. PAGE 13 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Exhibit 4.12 SHARE PURCHASE AGREEMENT Between Marseilles Investments LimitedScott Lee HoingAndres Wladimir SnaiderTop Oak LLCCarlos Eduardo MoraisMB MARCOMM LLCCloudFour Tech SAS, as Sellers and Globant España S.A. (sociedad unipersonal), as Purchaser Dated as of January 17, 2019 Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. INDEX ARTICLE 1. PURCHASE AND SALE OF SHARES11.1.Purchase and Sale11.2.Purchase Price21.3.Payments21.4.Adjustment for other Variables.71.5.Corporate Reorganization111.6.Management during the Earn Out Period111.7.Management Retention Bonus12ARTICLE 2. CLOSING132.1.Closing132.2.At the Closing13ARTICLE 3. CONDITIONS TO CLOSING153.1.Mutual Conditions153.2.Conditions to Obligation of Purchaser163.3.Conditions to Obligations of Sellers18ARTICLE 4. REPRESENTATIONS AND WARRANTIES OF SELLERS184.1.Organization, Good Standing and Authority of the Company and its Subsidiaries. Capitalization.194.2.Corporate Documents194.3.Authority194.4.No Claims194.5.No Conflict194.6.Shares and Capital204.7.Options and Commitments204.8.Litigation204.9.Taxes214.10.Consents and Approvals234.11.Financial Statements234.12.Ordinary Course244.13.Liabilities244.14.Material Contracts254.15.Assets254.16.Banking & Finance264.17.Clients, Vendors & Suppliers264.18.Intellectual Property274.19.Employee Agreements304.20.Insurance304.21.Employees304.22.Compliance with Law; Permits324.23.Affiliated Transactions324.24.Dividends334.25.Sellers Credit334.26.Books and Records334.27.Office Leases334.28.Effects of Due Diligence334.29.No other Investments334.30.Foreign Corrupt Practices Act344.31.U.S. Sanctions, Export Control and Anti-Money Laundering Laws34 i Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 4.32.Data Privacy344.33.Foreign Exchange Laws354.34.Environmental and Safety Laws354.35.Customs354.36.Brokers and Financial Advisors354.37.Solvency364.38.Material Adverse Effect364.39.No other Representation or Warranties. No Reliance364.40.Full Disclosure36ARTICLE 5. REPRESENTATIONS AND WARRANTIES OF PURCHASER375.1.Organization of Purchaser375.2.Authority375.3.No Conflict375.4.Consent and Approvals375.5.Legal Proceedings375.6.Funding375.7.No Brokers’ Fees375.8.Foreign Corrupt Practices Act375.9.U.S. Sanctions, Export Control and Anti-Money Laundering Laws385.10.No Other Representation or Warranties. No Reliance38ARTICLE 6. INDEMNIFICATION396.1.Indemnification by Sellers396.2.Indemnification by Purchaser396.3.Termination of Indemnification Obligations406.4.Grounds for Asserting Claims416.5.Remedy of Set-Off416.6.Process of Claiming Indemnification416.7.Gross up. Indemnity Payments436.8.Limitations of Liability44ARTICLE 7. COVENANTS457.1.Access to Information457.2.Conduct of Business457.3.Exclusivity467.4.Publicity477.5.Further Assurances477.6.Non-competition477.7.Non-Solicitation487.8.Antitrust Filing487.9.Cooperation48ARTICLE 8. SELLERS’ TAXES; COOPERATION498.1.Allocation498.2.Pre-Closing Taxable Periods498.3.Straddle Taxable Periods498.4.Cooperation49ARTICLE 9. TERMINATION509.1.Termination.509.2.Effect of Termination509.3.Effect of Closing51ARTICLE 10. GENERAL5110.1.Amendment and Modification5110.2.Waiver of Compliance51 ii Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 10.3.Severability5110.4.Expenses5110.5.Parties in Interest5110.6.Notices5110.7.Counterparts5310.8.Entire Agreement5310.9.Assignment5310.10.Publicity. Disclosure5310.11.Further Assurances5310.12.Governing Law and Arbitration5310.13.Attorneys Fee5410.14.Confidential Information5410.15.Interpretation5410.16.Headings55 iii Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. SHARE PURCHASE AGREEMENT This SHARE PURCHASE AGREEMENT (this “Agreement”), is entered into as of January 17, 2019 by and among, each of the selling shareholdersidentified as a Group A Seller or as a Group B Seller on Schedule B attached hereto (each such Seller, an “Individual Seller”, and jointly, the “Sellers”);Globant España S.A. (sociedad unipersonal) (“Globant” or the “Purchaser” and, together with the Sellers, each a “Party” and jointly, the “Parties”); andAvanxo (Bermuda) Limited, a company duly organized and existing under the Laws of the Islands of Bermuda, with registered office at Victoria Place, 31Victoria Street, Hamilton HM 10, Bermuda (“Avanxo”, and together with its Subsidiaries (unless otherwise specifically stated herein), the “Company”). WHEREAS, Sellers own collectively 100% of the issued and outstanding share capital stock, shares, special shares, partnership or membershipinterests, units of participation, equity securities, equity interests, other securities or other similar interests (however designated) or any other contractualobligation which would entitle any person to acquire any such interest in Avanxo and, indirectly, in any Subsidiary (as defined below) or otherwise entitleany person to share in the equity, capital, profit, earnings, losses or gains of Avanxo or any Subsidiary thereof (collectively and as applicable to Avanxoand/or any Subsidiary (as defined below), the “Shares”), as described in Exhibit A hereto. WHEREAS, Avanxo owns or, at Closing will directly or indirectly own 100% of the Shares in the Subsidiaries, as described in Exhibit B hereto. WHEREAS, upon the terms and subject to the conditions set forth herein, Purchaser desires to purchase from the Sellers, and the Sellers desire to sellto Purchaser, the Shares (the “Transaction”). NOW, THEREFORE, in consideration of and subject to the promises and the mutual agreements, terms and conditions herein contained, thebenefits to be derived therefrom and other good and valuable consideration, the Parties hereby agree as follows: ARTICLE 1.PURCHASE AND SALE OF SHARES 1.1. Purchase and Sale. At Closing, and on the terms and subject to the conditions of this Agreement, Sellers shall sell, transfer and deliver to Purchaserand/or its nominees, and Purchaser and/or its nominees shall purchase from Sellers, free and clear of all liens, encumbrances, mortgages, pledges, charges,options, rights, community property interests, security interests, agreements, claims or restrictions of any nature whatsoever, including any restriction on use,voting, transfer, receipt of income or exercise of any other attribute of ownership, recorded or unrecorded (individually a “Lien” and collectively the“Liens”), the Shares together with all rights attached or accruing to the Shares on the Closing Date, including without limitation, the right to receive alldividends, distributions, capital contributions or any return of capital declared, paid or made by the Company on or after the Closing Date, leaving the Sellerswithout any shareholding or membership interest of any nature whatsoever in Avanxo. 1Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 1.2. Purchase Price. Subject to any adjustment as set forth herein, including those adjustments contemplated in Sections 1.3 and 1.4, to the extentapplicable, and adjustments for Losses, the total aggregate consideration for the purchase by Purchaser of one hundred percent (100%) of the Shares, togetherwith the goodwill and for all the other obligations of Sellers in accordance with this Agreement, including any non-competition and non-solicitationobligations assumed by the Sellers in this Agreement, shall be of $48,557,247 (the “Purchase Price”), calculated on a fully diluted basis, including any andall warrants, options and rights with respect thereto, whether or not currently exercisable and assuming a debt-free/cash-free balance sheet, payable to theGroup A Sellers and the Group B Sellers in accordance with Section 1.4 and in proportion to their respective ownership of Shares of the Company within thesame group of Sellers, as described in Schedule B hereto (such ownership percentage, the “Sellers’ Ownership Percentage”). 1.3. Payments. Subject to the conditions set forth in this Agreement, the Purchase Price shall be payable to the Sellers, in each case in proportion to eachof the Sellers’ Ownership Percentage, as applicable to each Group A Seller or Group B Seller, as follows: 1.3.1. Payment to the Group A Sellers. (a)The total aggregate amount of the Purchase Price payable to the Group A Sellers will be an amount of up to $37,477,812 (the “Group APayment”). At Closing, the Purchaser shall pay to the Group A Sellers an amount equal to the Group A Payment less any deduction orwithholding as provided herein. (b)From the Group A Payment, an amount equal to $3,747,781 shall be deposited directly by Purchaser on behalf of Group A Sellers to anescrow fund of Group A Sellers and shall be held in escrow (the “Group A Sellers Escrow Amount”) as indicated below in this Agreement.The Group A Sellers Escrow Amount shall be deposited by the Purchaser into an escrow fund (the “Escrow Fund”) pursuant to the EscrowAgreement and shall be held in escrow until the twenty-four (24) month anniversary of the Closing Date and subsequently disbursed inaccordance with the terms, conditions and provisions thereof. Any Group A Sellers Escrow Amount that shall be transferred to the Group ASellers, shall be subject to any deduction or withholding as set forth in this Agreement (including, but not limited to the provisions ofARTICLE 6). (c)All amounts of the Group A Payment shall be payable in immediately available funds to the accounts of the Group A Sellers (the “Group ASellers’ Accounts”) previously informed by each of the Group A Sellers to the Purchaser at least ten (10) Business Days before the ClosingDate. 1.3.2. Payments to the Group B Sellers. Earn Out Payments: (a)The total aggregate amount of the Purchase Price payable to the Group B Sellers will be an amount of $11,079,435, subject to anyadjustment or deduction as provided herein, which shall be paid in accordance with the following payment schedule: (i)The amount of up to $3,461,292 (subject to adjustments and deductions as provided herein) shall be paid at Closing (“Group BFirst Payment”); 2Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. (ii)The remaining amount of up to $7,618,143, subject to adjustments and deductions as provided herein (the “Earn Out Payments”),shall be paid to the Group B Sellers subject to the achievement of the Revenue Target, Gross Margin Target and Operating MarginTarget, as described in Exhibit C hereto. Each of the foregoing, shall be measured with respect to the Company and based on thePurchaser’s audited financial statements, and accounting information, as prepared by Globant and audited by external auditors inaccordance with Globant’s internal policies and procedures, consistently applied in accordance with international financialreporting standards (“IFRS”) to the extent not specifically modified pursuant to the provisions of this Agreement. In case ofdiscrepancy between IFRS and the provisions of this Agreement, the latter shall prevail. (iii)From the Group B First Payment, an amount equal to $1,107,943 shall be deposited directly by Purchaser on behalf of Group BSellers to an escrow fund of Group B Sellers and shall be held in escrow (the “Group B Sellers Escrow Amount”, and togetherwith the Group A Sellers Escrow Amount, the “Escrow Amount”) until the twenty-four (24) month anniversary of the Closing Dateand subsequently disbursed in accordance with the terms, conditions and provisions thereof. Any Group B Sellers Escrow Amountthat shall be transferred to the Group B Sellers, shall be subject to any deduction or withholding as set forth in this Agreement(including, but not limited to the provisions of ARTICLE 6). (b)All amounts of the Purchase Price payable to the Group B Sellers will be payable in immediately available funds to the accounts (the“Group B Sellers’ Accounts”) previously informed by each of the Group B Sellers to the Purchaser, at least ten (10) Business Days beforethe Closing Date. (c)At Globant’s sole and exclusive option, each of the Group B Sellers (or their designees) shall subscribe at Closing and at the time ofpayment of any amount payable under the Earn Out Payments the number of shares of Globant restricted common stock (the “G Shares”)that may be purchased in accordance with the calculation of the G Shares price per share set forth in paragraph (d) below for a total purchaseprice equal to 25% of the Group B First Payment or of any Earn Out Payment, as applicable (the “G Shares Amount”) by executingsubscription agreements substantially in the form of Exhibit D hereto (the “Subscription Agreement”). (i)Subject to Globant’s exercise of the option provided in Section 1.3.2(c) herein, in order to determine the number of G Shares thatthe Group B Sellers are entitled to receive with respect to the G Shares Amount corresponding to the Group B First Payment, GShares shall be valued at the price per share resulting on the volume weighted average trading price for the sixty (60) trading dayperiod prior to Closing as quoted in the New York Stock Exchange (NYSE:GLOB). G Shares issued in accordance herewith shallbe subject to a twelve (12) month lock-up period as of Closing and as provided in the applicable Subscription Agreement, duringwhich the Group B Sellers shall not, without the prior written consent of Globant, offer, pledge, sell, announce the intention to sell,contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant topurchase, or otherwise transfer or dispose of, directly or indirectly, any of the G Shares. 3Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. (ii)Subject to Globant’s exercise of the option as provided in Section 1.3.2(c) herein, in order to determine the number of G Sharesthat the Group B Sellers will be entitled to receive with respect to the G Shares Amount in connection with any Earn Out Payment,G Shares shall be valued at the price per share resulting on the volume weighted average trading price of the sixty (60) trading dayperiod prior to the correspondent date of payment of the applicable Earn Out Payment as quoted in the New York Stock Exchange(NYSE:GLOB). G Shares issued in accordance herewith shall be subject to a twelve (12) month lock-up period as of thecorrespondent date of payment and as provided in the applicable Subscription Agreement, during which the Group B Sellers shallnot, without the prior written consent of Globant, offer, pledge, sell, announce the intention to sell, contract to sell, sell any optionor contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transferor dispose of, directly or indirectly, any of the G Shares. 1.3.3.Earn Out Payments. Earn Out Report. Dispute Resolution. (a)Within sixty (60) calendar days after the closing of each Earn Out Period, the Purchaser shall prepare and deliver to the Group B Sellers areport stating in reasonable detail the Purchaser’s determination of the applicable Earn Out Payment (the “Earn Out Report”) based on theCompany’s financial statements on a consolidated basis and Exhibit C. (b)Within ten (10) Business Days from the date of delivery of the Earn Out Report, and irrespectively of whether the Group B Sellers deliver anEarn Out Objection Notice (as set forth in the next subsection), the Purchaser shall pay to the Group B Sellers the Earn Out Payment inimmediately available funds by means of a deposit in the Group B Sellers Account. (c)Unless the Group B Sellers (acting jointly) object to Purchaser’s determination of the Earn Out Payment as set forth in an Earn Out Reportby the delivery to Purchaser of a written notice setting forth the basis for such objection (an “Earn Out Objection Notice”) within twenty(20) Business Days after the Group B Sellers’ receipt of the Earn Out Report (or if, at any time, Sellers, acting jointly, deliver to Purchaser awritten notice expressly accepting the Earn Out Report), the Earn Out Report shall be conclusive and binding for all purposes of thisAgreement, in the absence of any manifest error. (d)In the event that the Group B Sellers (acting jointly) timely deliver an Earn Out Objection Notice, Purchaser and the Group B Sellers shallfirst use diligent good faith efforts to resolve such dispute between themselves and the Purchaser shall deliver in due time to the Group BSellers copy of all the relevant information used to prepare the Earn Out Report. If they are unable to resolve such dispute within thirty (30)calendar days after the delivery of the Earn Out Objection Notice, then the dispute shall be submitted to a financial arbitrator (the“Financial Arbitrator”) (acting as arbitrator and not as an expert) for determination as follows: (i)The Group B Sellers, will nominate, within the ten (10) Business Days following the failure to resolve directly the dispute, two (2)firms from the list of accounting firms listed in Schedule C under items 1 to 4 thereof. 4Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. (ii)The Purchaser will have a term of ten (10) Business Days following the receipt of the nomination for Financial Arbitrators to electone of the firms from the two (2) firms designated by the Group B Sellers. If the Purchaser fails to choose a firm within the giventime, the Group B Sellers will choose the Financial Arbitrator from the two (2) firms designated by the Group B Sellers. In case thedesignated firm is not able to act as a Financial Arbitrator, the other firm designated by the Group B Sellers shall be deemed chosenby the Purchaser or the Group B Sellers, as the case may be, to act as Financial Arbitrator. In case this second firm is not able to acta a Financial Arbitrator, Purchaser or Group B Sellers, as the case may be, shall choose from the other two firms listed in ScheduleC under items 1 to 4. In case none of the firms listed under items 1 to 4 of Schedule C are able to act as Financial Arbitrators, theGroup B Sellers shall nominate the firms listed under items 5 and 6 of Schedule C for Purchaser to elect one of such two (2) firms.In case the designated firm is not able to act as a Financial Arbitrator, the other firm designated by the Group B Sellers shall bedeemed chosen by the Purchaser to act a Financial Arbitrator. If neither of such firms are able to act as Financial Arbitrators,Purchaser and Group B Sellers shall jointly agree on the nomination of a reputable firm to act as Financial Arbitrator. If theycannot reach an agreement on who the Financial Arbitrator shall be, within the ten (10) Business Days following the date on wichthe last of the firms listed on Schecule C, refused to act as Financial Arbitrator, then the Arbitration provision in Section 10.12shall apply. (iii)The Purchaser and the Group B Sellers (acting jointly) shall submit to the Financial Arbitrator, within fifteen (15) Business Daysafter the date of the engagement of the Financial Arbitrator, copies of (A) the applicable Earn Out Report, (B) the Earn OutObjection Notice, and (C) a list of all unresolved objections raised by the Group B Sellers with respect to the calculation of theEarn Out Payment in the applicable Earn Out Report (the “Unresolved Earn Out Objections”). Each of the Purchaser and theGroup B Sellers (acting jointly) shall submit to the Financial Arbitrator (with a copy delivered to the other Parties on the sameday), within the thirty (30) calendar days following the date of the engagement of the Financial Arbitrator, a memorandum (whichmay include supporting exhibits) setting forth their respective positions on the Unresolved Earn Out Objections. It is herebyclarified that, in the context of a dispute submitted to the Financial Arbitrator, the Purchaser shall –at its exclusive discretion– beallowed to request, and the Financial Arbitrator shall be required to conduct, a complete examination of the determination of theapplicable Earn Out Payment. For purposes thereof, it is understood that the Purchaser’s initial determination of the Earn OutPayment set forth in the Earn Out Report shall in no case be deemed an acknowledgement or recognition of a minimum payment infavor of the Group B Sellers. Accordingly, the calculation of the applicable Earn Out Payment determined by the FinancialArbitrator may result in a lesser amount than the Earn Out Payment as initially calculated by the Purchaser. The FinancialArbitrator may, at its discretion, conduct a meeting concerning the Unresolved Earn Out Objections, at which meeting Purchaserand the Group B Sellers (or their designees) shall have the right to present additional documents, materials and other informationand to have present their respective advisors, counsel and accountants. In connection with the resolution of the Unresolved EarnOut Objections, and except as set forth in the previous sentence, there shall be no other hearings or oral examinations, testimony,depositions, discovery or other similar proceedings. Each of the Purchaser and the Group B Sellers (acting jointly) shall makeavailable to the other Party and the Financial Arbitrator, as the case may be, such documents, books, records, work papers,facilities, personnel and other information as the Financial Arbitrator may reasonably request to review the Earn Out Report and toresolve the Unresolved Earn Out Objections. 5Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. (iv)Within the sixty (60) calendar days following the date of the engagement of the Financial Arbitrator, the Financial Arbitrator shallprepare and distribute to the parties a written report setting forth the Financial Arbitrator’s determination of the Earn Out Paymentand the Financial Arbitrator’s reasons therefor (the “Financial Arbitrator Determination”). Purchaser shall then be obligated tomake the applicable Earn Out Payment pursuant to this Agreement as if such Earn Out Payment calculation (made pursuant to theFinancial Arbitrator Determination) had been set forth in the original applicable Earn Out Report. The decision rendered by theFinancial Arbitrator and set forth in the Financial Arbitrator Determination shall be final, conclusive and binding upon the parties,judgment thereon may be entered and enforced in any court of competent jurisdiction, and such decision shall not be subject toappeal by any Party. (v)The fees and expenses of the Financial Arbitrator in connection with the resolution of disputes pursuant to this Agreement shall beallocated among the Purchaser and the Group B Sellers in a proportion to be determined taking into consideration the proportionaldifference between the Financial Arbitrator’s final determination of the Earn Out Payment vis-à-vis the respective positions of theparties on the Unresolved Earn Out Objections as set forth in the memorandum referred in paragraph (a) above. For example, if,when submitting the Unresolved Earn Out Objections to the Financial Arbitrator, the Group B Sellers’ (acting jointly) claim thatthe applicable Earn Out Payment is $2,000 greater than the amount determined by Purchaser when submitting the dispute to theFinancial Arbitrator, and the Financial Arbitrator ultimately resolves the dispute by determining in favor of the Group B Sellers$1,300 of the $2,000 contested, then the costs and expenses of arbitration will be allocated 65% (i.e., 1,300 ÷ 2,000) to Purchaserand 35% (i.e., 700 ÷ 2,000) to the Group B Sellers. Subject to the foregoing sentence, each Party shall be responsible for its ownfees and expenses incurred in connection with this Section 1.3.3(d)(v). Within the Group B Sellers, each Group B Seller shall beresponsible for its portion of the fees and expenses of the Financial Arbitrator on a pro rata basis according to each Group BSellers’ Ownership Percentage. Any difference between any amount paid by the Purchaser as Earn Out Payment and the final amount of the Earn Out Payment (asdetermined pursuant to the Financial Arbitrator Determination) shall be paid in immediately available funds to the Group B Sellersor the Purchaser, as applicable, within five (5) Business Days from the date in which the Financial Arbitrator Determination isnotified to the Group B Sellers and the Purchaser, in the Group B Sellers Account or the account designated in writing by thePurchaser at least three (3) Business Days prior to such payment, as the case may be. 6Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 1.4.Adjustment for other Variables. 1.4.1.Working Capital Adjustment. (a)The Purchase Price has been established considering that at Closing the Company shall have the required net working capital to conducttheir operations in the ordinary course of business in an amount of not less than the average Working Capital of the Company for the six (6)full calendar months prior to the Closing Date (the “Target Net Working Capital”). In this Agreement, the term “Net Working Capital”refers to current assets minus current liabilities; where current assets are comprised of accounts receivable, prepaid expenses and othercurrent assets, and current liabilities are comprised of accounts payable and accrued expenses (including payment of reasonable fees,expenses and costs associated to the auditing of the financial statements of Avanxo Argentina S.A. and Avanxo Colombia, for theapplicable fiscal periods until and including 2018 and payment of reasonable fees, expenses and costs associated with the preparation andissuance of any applicable transfer pricing reports in connection with intercompany operations performed by and between Avanxo and itsSubsidiaries, in compliance with transfer pricing rules and regulations for the applicable periods until and including the Closing Date and,for purposes of calculating the Definitive Working Capital (as defined below) only, excluding any accounting provisions regarding the2018 Bonus Payments, and excluding liabilities relating to services not yet rendered as of the Closing Date but already collected), asdetermined in accordance with IFRS consistently applied and to the extent not specifically modified pursuant to the provisions of thisAgreement. In case of discrepancy between IFRS and the provisions of this Agreement, the latter shall prevail. An example of thecalculation and items to be reflected in the Target Net Working Capital are included in Schedule 1.4.1 (a) attached hereto. (b)Within ninety (90) calendar days following Closing, the Purchaser shall review and confirm that the Net Working Capital of the Companyat Closing was at least equal to the Target Net Working Capital and shall calculate and determine the actual Net Working Capital of theCompany at Closing (the “Definitive Net Working Capital”) in accordance with IFRS consistently applied and to the extent notspecifically modified pursuant to the provisions of this Agreement. In case of discrepancy between IFRS and the provisions of thisAgreement, the latter shall prevail. (c)If the Definitive Net Working Capital is greater than the Target Net Working Capital, then the amount that results from subtracting theTarget Net Working Capital from the Definitive Net Working Capital, shall be paid by Purchaser to the Sellers, in proportion to the Sellers’Ownership Percentage, within the five (5) Business Days following the date in which the Definitive Net Working Capital was finallydetermined to the Group A Sellers Accounts and the Group B Sellers Accounts. If the Definitive Net Working Capital is less than the TargetNet Working Capital, then the amount that results from subtracting the Definitive Net Working Capital from the Target Net WorkingCapital, shall be paid by the Sellers, in proportion to the Sellers’ Ownership Percentage, to Purchaser within the five (5) Business Daysfollowing the date in which the Definitive Net Working Capital was finally determined to the account designated in writing by Purchaser atleast three (3) Business Days prior to such payment. If any such amount is not paid as set forth herein, the applicable Party shall be entitledto (i) deduct the corresponding amount from any following payment to be made to the other Party, or (ii) request payment of thecorresponding amount from the Escrow Amount as set forth in Section 1.3 herein. Any amount that has been collected from the EscrowAmount, must be repaid by the Party that failed to make due payment within the following five (5) Business Days from the date on whichsuch payment has been taken from the Escrow Fund. For the avoidance of doubt deductions shall be made to the corresponding Sellerseverally but not jointly. 7Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 1.4.2.Account Receivables Adjustment. (a)Four (4) Business Days prior to Closing, the Sellers shall deliver to Purchaser a certificate including a list of the Company’s AccountsReceivable as of such date, including the amount and due date or each Account Receivable (the “Accounts Receivable Certificate”). (b)Within the five (5) Business Days following the Closing Date, Purchaser shall deliver to Sellers an updated Accounts ReceivableCertificate, including a list of the Company’s Accounts Receivable as of Closing, in the same format as the Accounts Receivable Certificate(the “Closing Date Accounts Receivable Certificate”). (c)On a date no later than twelve months after the Closing Date Sellers (including Group A Sellers and Group B Sellers) shall compensatePurchaser, in proportion to the Sellers’ Ownership Percentage, to the extent any Accounts Receivable outstanding on the Closing Date, aslisted in the Closing Date Accounts Receivable Certificate, remain uncollected within 120 calendar days following the due date of each ofsuch Accounts Receivable for any reason whatsoever (including its accounting as Bad Debt) (each an “Account Receivable Reduction”). (d)Any Account Receivable Reduction shall be paid by the Sellers, in proportion to the Sellers’ Ownership Percentage, on a date no later thanfive (5) Business Days after each Account Receivable Reduction has been communicated to the Sellers and in any event no later thantwelve months after the Closing Date to the account designated in writing by Purchaser at least three (3) Business Days prior to suchpayment. If any such amount is not paid within the aforementioned 5-Business Day period, the Purchaser shall be entitled to (i) deduct thecorresponding amount from any following payment to be made to the Sellers, or (ii) request payment of the corresponding amount from theEscrow Amount as set forth in Section 1.3 herein. Any amount that has been collected from the Escrow Amount, must be repaid by theSellers within the following five (5) Business Days from the date on which such payment has been taken from the Escrow Amount. For theavoidance of doubt deductions shall be made to the corresponding Seller severally but not jointly. (e)The Parties acknowledge and agree that the Company has no obligation to initiate any collection proceeding of any nature with respect touncollected accounts, but will handle such accounts receivable in the ordinary course of business and will do its commercially reasonableefforts to collect them during the 120 calendar days following their due date. 1.4.3.Minimum Cash Adjustment. (a)Four (4) Business Days prior to Closing, the Sellers shall calculate and provide an estimate of the Minimum Cash as of the Closing Date andthe Estimated Cash at Closing (as defined below) and deliver such information together with the relevant information used for suchcalculation to the Purchaser (“Estimated Closing Cash Certificate”). (b)The amount payable to Sellers at the Closing (the “Closing Date Payment”) shall be the Purchase Price adjusted, in proportion to theSellers’ Ownership Percentage, either by (1) an increase, in the amount that the Estimated Cash at Closing exceeds the Minimum Cash or (2)a decrease, in the amount that the Minimum Cash exceeds the Estimated Cash at Closing. 8Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. (c)Within ninety (90) calendar days following Closing, the Purchaser shall prepare and deliver to Sellers a statement setting forth itscalculation of the Cash as of immediately prior to the Closing, (the “Closing Cash Statement”). Such calculation shall be made inaccordance with IFRS consistently applied and to the extent not specifically modified pursuant to the provisions of this Agreement. In caseof discrepancy between IFRS and the provisions of this Agreement, the latter shall prevail. (d)If the definitive Cash at Closing as determined in the Closing Cash Statement (the “Definitive Cash at Closing”) is greater than theestimated Cash at Closing as determined in the Estimated Closing Cash Certificate (the “Estimated Cash at Closing”) then, the amountthat results from subtracting the Estimated Cash at Closing from the Definitive Cash at Closing, shall be paid by Purchaser to Sellers, inproportion to the Sellers’ Ownership Percentage, within the five (5) Business Days following the date in which the Definitive Cash atClosing was finally determined to the Group A Sellers Accounts and the Group B Sellers Accounts. If the Definitive Cash at Closing islesser than the Estimated Cash at Closing, then the amount that results from subtracting the Definitive Cash at Closing from the EstimatedCash at Closing, shall be paid by Sellers, in proportion to the Sellers’ Ownership Percentage, to Purchaser within the five (5) Business Daysfollowing the date in which the Definitive Cash at Closing was finally determined to the account designated in writing by Purchaser at leastthree (3) Business Days prior to such payment. If any such amount is not paid as set forth herein, the applicable Party shall be entitled to (i)deduct the corresponding amount from any following payment to be made to the other Party, or (ii) request payment of the correspondingamount from the Escrow Amount as set forth in Section 1.3 herein. Any amount that has been collected from the Escrow Amount, must berepaid by the the Party that failed to make due payment within the following five (5) Business Days from the date on which such paymenthas been taken from the Escrow Fund. For the avoidance of doubt deductions shall be made to the corresponding Seller severally but notjointly. Adjustments. Dispute Resolution. In case of any controversy in connection with the adjustments provided for in Sections 1.4.1, 1.4.2, and 1.4.3, the Partiesshall first use diligent good faith efforts to resolve such dispute between themselves during thirty (30) calendar days following the delivery of a written noticeof any of the Parties to the other Parties indicating the grounds of the dispute. If they are unable to resolve such dispute within thirty (30) calendar days, thenthe dispute shall be submitted to the Financial Arbitrator for determination and the procedure set forth in Section 1.3.3(d) shall apply mutatis mutandi. 1.4.5.Additional Adjustments. (a)In the event that: (i) any Group B Seller or Key Employee violates the Non-Competition and/or Non-Solicitation Obligations set forth inthis Agreement, or (ii) there is a “Cause for Non-Payment” (as defined below) prior to December 31, 2020; then the breaching Group BSeller or the Group B Seller related to the breaching Key Employee as described in Schedule 1.4.5 hereof (the “Breaching Group BSeller”) shall not be entitled to receive, and the Purchaser shall not be required to pay, any theretofore unpaid Earn Out Payments underSection 1.3.2 that would otherwise have been distributed or paid to the Breaching Group B Seller in accordance therewith. In such event,the total amount of any theretofore unpaid Earn Out Payments under Section 1.3.2 shall be reduced by the total amount of any unpaid EarnOut Payment forfeited by such Breaching Group B Seller and the Purchaser shall be entitled to retain such forfeited amount. 9Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. For the purposes of this Agreement, a “Cause for Non-Payment”shall be deemed to exist if an ad-hoc committee of Globant S.A., to be comprised of theChairman of the audit committee, the Chief People Officer and the Chief Executive Officer of Globant S.A., determines that the Group B Seller or the relatedKey Employee: (i)willfully and materially violated any written Company and/or Purchaser’s material policies or material standards of conduct; (ii)represented the Company, the Purchaser or any Affiliate thereof in businesses out of its corporate purposes or performs on behalf ofany of them acts of mere indulgence, which for the purposes of this Agreement are defined as significant acts without considerationfor the Company, the Purchaser or any Affiliate thereof, including but not limited to, transactions with any related party of any ofthe Sellers and/or granting guarantees for third parties’ obligations; (iii)failed to comply with his Non-Competition and/or Non-Solicitation Obligations set forth in this Agreement; (iv)has been disqualified from acting as a manager, director or officer under any applicable Law or by virtue of a final, non-appealable,criminal conviction; or for being under the effects of penalty which forbids, even temporarily, the access to public office or to carryout acts of commerce; or for being convicted for bankruptcy, fraud, bribe, corruption, misrepresentation, graft or embezzlementcrimes or crimes against the public economy, the national financial system, antitrust Laws, consumer protection Laws and crimesagainst public faith or property pursuant to a final, non-appealable decision; or is convicted of pursuant to a final, non-appealabledecision, or pleads no contest or guilty to, a misdemeanor that the Purchaser reasonably believes has had or will have a materialdetrimental effect on the Company, or any felony; (v)has been formally accused in a proceeding by a relevant prosecutor or Governmental Body of making or receiving illegalpayments and returns, as well as any corruption acts, or of committing any act of personal dishonesty that is intended to result inKey Employee’s personal enrichment, or any willful act that constitutes gross misconduct; (vi)intentionally breached a material confidentiality obligation arising from this Agreement or any other agreement his employmentrelationship with the Company, Purchaser or any Affiliate thereof, that affects and damages the business of the Company, thePurchaser or any Affiliate thereof or the business of any of their clients; or (vii)performed negligent acts or omissions or acts of defamation, libel and slander against the Company, or the Purchaser or anyAffiliate thereof. 10Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. (b)In the event that any Key Employee’s employment is voluntarily terminated by such Key Employee prior to December 31, 2020 (each suchKey Employee, a “Voluntary Leaver”), the respective Group B Seller related to such Voluntary Leaver will remain entitled to receive,subject to the achievement by the Company of the relevant targets described in Exhibit C and any other adjustments and deductions asprovided herein, any theretofore unpaid Earn Out Payment; provided, however, that in such case the Purchaser shall have the right to deferany theretofore unpaid Earn Out Payment under Section 1.3.2 that the respective Group B Seller related to such Voluntary Leaver isotherwise entitled to receive, until the Deferred Payment Date. The “Deferred Payment Date” shall mean such date that the Purchaser issatisfied, in its sole discretion, that all debts, payments, liabilities or obligations (whether contractual or otherwise) owing, or which couldreasonably be expected to be owing, by the Voluntary Leaver –or by the Group B Seller related to such Voluntary Leaver– to the Purchaserhave expired or otherwise been discharged in full, but in no event before (i) thirty-six (36) months from the Closing Date; or (ii) eighteen(18) months of termination of employment with the Company of the relevant Voluntary Leaver; whichever occurs last. All such paymentsshall be subject to Purchaser’s right of setoff pursuant to Section 6.5. In addition, the Purchaser shall have the right to offset any suchpayments against any damages arising from or relating to the respective Group B Seller’s or the related Voluntary Leaver’s breach of theNon-Competition and/or Non-Solicitation Obligations set forth in this Agreement, as applicable. (c)In the event of permanent disability or death of a Key Employee, the related Group B Seller, or his legal successors or representatives, as thecase may be, shall be entitled to receive, subject to the achievement by the Company of the relevant targets described in Exhibit C and anyother adjustments and deductions as provided herein, all Earn Out Payments under Section 1.3.2 in accordance with the payment scheduleand conditions set forth therein. (d)In the event of dismissal other than for Cause for Non-Payment of a Key Employee by the Company, then the respective Group B Sellerrelated to such Key Employee shall be entitled to receive, subject to any applicable adjustments and deductions as provided herein, allEarn Out Payments under Section 1.3.2 in accordance with the payment schedule and conditions set forth therein; provided that, in suchcase, the relevant targets described in Exhibit C, corresponding to the Earn Out Period during which the dismissal took place and anysubsequent Earn Out Periods, shall be deemed to have been achieved at 100%. 1.5. Corporate Reorganization. Nothing in this Agreement or any ancillary document shall prevent Globant from executing any corporate reorganizationof any nature. If after Closing, the Purchaser decides to execute any corporate reorganization as a result of which the Company ceases to exist as currentlyknown, either by way of merger, consolidation, split-up, or otherwise, the Purchaser and the Sellers agree that the financial targets and milestones necessary todetermine the payment contemplated under Section 1.3 of this Agreement shall be calculated separately as if such corporate reorganization had not occurredand the Company continued to be a separate corporate group as currently known. In such case, any and all references to the “Company” in sections of thisAgreement relating to the calculation of the payments contemplated in Section 1.3 hereof shall be deemed a reference to the relevant business unit thatcontinues the Company’s business within Globant’s organization. 1.6. Management during the Earn Out Period. 1.6.1. The Parties agree and acknowledge that Purchaser shall be responsible for the management, supervision, direction and control of the Company,provided that Purchaser shall not, directly or indirectly, take any actions in bad faith with the intention of avoiding or reducing the Earn Out Paymenthereunder, shall exercise commercially reasonable efforts to pursue the business in good faith after the Closing and shall not charge the Company and/or itssubsidiaries fees, royalties or other similar charges that are not in line with the fees, royalties, or similar charged to all other Globant subsidiaries. 11Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 1.6.2. The Key Employees shall have such roles and responsibilities as detailed in their respective employment agreement, their non-disclosure agreementincluded as an exhibit in their respective employment agreement and subject to compliance with applicable Law and the generally applicable internalpolicies of Globant, including financial, legal, human resources, approved budgets, banking and treasury policies. 1.6.3. The Key Employees and Globant shall work together in good faith for the Company to adopt Globant processes and tools during the Earn OutPeriod, seeking efficiencies and managing the Company as a business unit within the Globant group of companies. 1.6.4. The Key Employees and Globant management shall have periodic meetings, at least quarterly, which can also be conducted electronically,telephonically or by any other means of simultaneous communication of voice, images or data to review the performance and the prospects of the Companyduring the Earn Out Period. 1.6.5. The Group B Sellers acknowledge and agree that (i) there is no assurance that the Group B Sellers will receive any Earn Out Payment and Purchaserhas not promised or projected any Earn Out Payment, and (ii) the Parties solely intend the express provisions of this Agreement to govern their contractualrelationship. 1.6.6. The Parties understand and agree that (i) the contingent rights to receive any Earn Out Payment shall not be represented by any form of certificate orother instrument, are not transferable, except by operation of Laws relating to descent and distribution, divorce and community property, and do notconstitute an equity or ownership interest in Purchaser or the Company, (ii) Group B Sellers shall not have any rights as a security holder of Purchaser or theCompany as a result of Group B Sellers’ contingent right to receive any Earn Out Payment hereunder, and (iii) no interest is payable with respect to any EarnOut Payment, provided they are duly and timely paid. 1.7. Management Retention Bonus. The Parties acknowledge and agree that Cash payments in the aggregate amount of up to $1,300,000 (including anywithholding, Taxes, social security and other contributions) will be paid by the Company to certain employees of the Company as set forth in Schedule 1.7(the "Retention Bonus"). 1.7.1. Such payments will be made in three installments as follows: (a)the first installment in the amount of up to $325,000 shall be distributed within sixty (60) calendar days following Closing, (b)the second installment in the amount of up to $487,500 shall be distributed during March 2020; and (c)the third installment in the amount of up to $487,500 shall be distributed during March 2021. 1.7.2. The Sellers’ contribution to the Retention Bonus will be as set forth in Schedule 1.7 and shall be deducted from the Group A Payment, the Group BFirst Payment and the Earn Out Payments payable to the Group B Sellers, as indicated therein. The Purchaser’s contribution to the Retention Bonus will be asset forth in Schedule 1.7. 12Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 1.7.3. The Group B Sellers shall cooperate with the Company in connection with the distribution of the Retention Bonus to employees of the Companyand all related employee communications. 1.7.4. The Retention Bonus will not be taken into account for the calculation or payment of the Definitive Working Capital or the Earn Out Payment. ARTICLE 2.CLOSING 2.1. Closing. Subject to the provisions of ARTICLE 3 below, the closing (“Closing”) shall take place remotely through the exchange of electronicimages of execution versions of the closing documents required to consummate the transaction under this Agreement and electronic images of signaturesthereto, at 10:00 a.m. Bermuda time on February 1, 2019 and if Closing does not occur on such date, on the date that is five (5) Business Days after the last ofthe Conditions to Closing is satisfied or waived by the applicable Party hereto (the “Closing Date”). Following the Closing, the Parties will exchangeexecuted originals of the closing documents referred to below. If the Closing does not occur by March 1, 2019 (unless extended to April 1, 2019 by thePurchaser), then this Agreement, and the obligations of each Party under this Agreement, shall automatically terminate and be of no force and effect. At Closing, the events set out in the following provisions of this ARTICLE 2 shall take place simultaneously. The obligations of each of the Parties in thisARTICLE 2 are interdependent and the Closing will not occur unless all of these obligations are complied with and are fully effective or waived by theapplicable Party. 2.2. At the Closing. 2.2.1. The Purchaser shall make payment of the Group A Payment to the Group A Sellers and of the Group B First Payment to the Group B Sellers in respectof the Shares, in the manner contemplated in Sections 1.2 and 1.3 above and adjusted as set forth in Section 1.4.3(b). The Group A Payment and the Group BFirst Payment (adjusted as set forth in Section 1.4.3(b)) shall be paid in the manner described in an instruction in the form of a flow of funds memo to be sentby the Sellers at least four (4) Business Days prior to Closing. 2.2.2. Each of the Sellers shall execute and deliver to the Purchaser any and all documents in form and substance satisfactory to the Purchaser, such that ason the Closing Date, the Sellers shall have sold, transferred and assigned the Shares to Purchaser, and the Purchaser will, directly and/or through itsAffiliate(s), own one hundred percent (100%), and not less than one hundred percent (100%), of the Shares, free and clear of any Liens provided further thatSellers shall have withdrawn as directors and officers of Avanxo and its Subsidiaries and Purchaser shall have been admitted as the sole shareholder ofAvanxo. 2.2.3. As applicable, Avanxo, its Subsidiaries and each of the Sellers shall convene meetings of their shareholders and board of directors, as applicable (oract by unanimous written consent, if permitted) wherein resolutions to take the following actions shall be duly adopted: (a)Approval of the transfer of the Shares to the Purchaser and/or its nominee; (b)The appointment of such persons as the Purchaser may nominate as directors and officers of the Company and its Subsidiaries; (c)Accept and record the resignations of the persons referred to in Section 2.2.5 below; and 13Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. (d)Take all such other actions as may be required to be undertaken by Avanxo, its Subsidiaries and the shareholders thereof under theirorganizational documents or by any applicable Law for the time being in force, to give effect to the transaction contemplated hereby,including by way of making appropriate entries in the statutory registers of the Company and its Subsidiaries and making any filings withany Companies Registry or similar authority in each applicable jurisdiction. 2.2.4. The register of members of Avanxo shall be updated as soon as practicable under applicable Law to reflect the Purchaser and/or any Affiliate as thelegal and beneficial owner of the Shares. 2.2.5. Each outgoing officer and director of Avanxo and any Subsidiary shall deliver a resignation, release and a waiver of claims for fees, labor and anyother dues whatsoever, and their resignation from any appointment as attorney-in-fact issued by the Company and its Subsidiaries satisfactory to thePurchaser. 2.2.6. The Sellers shall deliver to the Purchaser the Disclosure Schedules, including without limitations the information described in Section 4.11.1 in formand substance satisfactory to the Purchaser and shall ensure that the following remain with the Company and or the Subsidiaries, as applicable: (a)all original and signed documents and contracts, all information and details of the Avanxo’s bank accounts, bank statements checkbooks,digital certificates and passwords; (b)all other files, papers, statutory documents and records as may be inter alia maintained under applicable Laws related to the Company asmay be in their possession; and (c)all documents relating to the Intellectual Property rights and confidential information of the Company, without retaining any copiesthereof; and shall also deliver any other property belonging to the Company which may be in the possession of the Sellers or any nomineeor Affiliate of the Sellers. 2.2.7. The Group B Sellers or their designees shall execute the Subscription Agreement in substantially the form set forth in Exhibit D, to the extentapplicable; and 2.2.8. The Key Employees and the Management Team shall execute the applicable non-disclosure agreements (and in the case of those employees of anyU.S. entity, also an arbitration agreement) in substantially the form set forth in Exhibit E (each such agreement, a “Non-Disclosure Agreement”). 2.2.9. Sellers and Purchaser shall execute and deliver the Escrow Agreement. 2.2.10. Sellers shall execute and deliver to Purchaser a certificate from each Seller stating that, as of the Closing Date, (a) each of the representations andwarranties of the Sellers set forth in ARTICLE 4 of this Agreement remain true and correct in all respects (in the case of any representation or warrantyqualified by materiality or Material Adverse Effect) or in all material respects (in the case of any representation or warranty not qualified by materiality ofMaterial Adverse Effect) on and as of the Closing Date (except to the extent such representations and warranties speak expressly as of an earlier date, in whichcase such representations and warranties shall be true and correct in all material respects as of such earlier date) as though made on and as of such date; (b) theobligations contained in this Agreement to be performed or complied by Sellers on or prior to the Closing Date, shall have been performed or duly compliedwith in all material respects; and (c) the conditions set forth in Section 3.2.5, 3.2.9, 3.2.10 and 3.2.11 have been complied. 14Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 2.2.11. Purchaser shall execute and deliver to Sellers a certificate stating that, as of the Closing Date, (a) each of the representations and warranties ofPurchaser set forth in ARTICLE 5 of this Agreement remain true and correct in all respects (in the case of any representation or warranty qualified bymateriality or Material Adverse Effect) or in all material respects (in the case of any representation or warranty not qualified by materiality of MaterialAdverse Effect) on and as of the Closing Date (except to the extent such representations and warranties expressly speak as of an earlier date, in which casesuch representations and warranties shall be true and correct in all material respects as of such earlier date) as though made on and as of such date; and (b) theobligations contained in this Agreement to be performed or complied by Purchaser on or prior to the Closing Date, shall have been performed or dulycomplied with in all material respects. 2.2.12. Sellers and Purchaser shall execute and deliver any other instruments or documents and take such further actions as may be reasonably necessary tocarry out the intent of this Agreement. Upon accreditation of the Group A Payment and the Group B First Payment of the Purchase Price in the respective accounts, the Sellers shall deliver to thePurchaser a duly executed acknowledgement confirming receipt of the Group A Payment and the Group B First Payment of the Purchase Price, as applicable.Any swift confirmation messagge from the respective bank shall be evidence of the transfer of the Group A Payment and the Group B First Payment of thePurchase Price. ARTICLE 3.CONDITIONS TO CLOSING 3.1. Mutual Conditions. The respective obligations of Sellers and Purchaser to effect the Transaction are subject to the satisfaction on or prior to theClosing Date of the following conditions: 3.1.1. No Injunctions or Restraints. No temporary restraining order, preliminary or permanent injunction or other order issued by any court of competentjurisdiction or any Governmental Body other legal restraint or prohibition preventing the consummation of the transactions contemplated by this Agreementor any other Transaction Document shall be in effect. 3.1.2. No Action. No Governmental Body or other Person shall have commenced or threatened to commence any Legal Proceeding against any of theParties or any Affiliate of any of the Parties: (a) challenging or seeking the recovery of damages in connection with the transactions contemplated by thisAgreement or any other Transaction Document; (b) seeking to prohibit or limit the exercise by Purchaser of any material right pertaining to its ownership ofany of the Shares; or (c) that (if adversely determined) would reasonably be expected to have the effect of preventing, delaying, making illegal or otherwiseinterfering with the transactions contemplated by this Agreement or any other Transaction Document. No injunction or restraining order shall have beenissued by any Governmental Body, and be in effect, arising from any of the foregoing Legal Proceedings. 3.1.3. Antitrust. Sellers and Purchaser shall have received an acknowledgement or “acuse de recibo” in relation with the antitrust filing in connection withthe transaction contemplated hereby from the Colombian Superintendencia de Industria y Comercio, as antitrust authority. 3.1.4. Consents. Sellers and Purchaser shall have received all consents, authorizations, orders and approvals from the Governmental Bodies, in each case,in form and substance reasonably satisfactory to Purchaser or Sellers, as applicable, and no such consent, authorization, order and approval shall have beenrevoked. 15Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 3.2. Conditions to Obligation of Purchaser. The obligation of Purchaser to effect the Transaction is subject to the satisfaction of the followingconditions, unless waived, in whole or in part, by Purchaser: 3.2.1. Each of the representations and warranties of the Sellers set forth in ARTICLE 4 below, shall be true and correct in all respects (in the case of anyrepresentation or warranty qualified by materiality or Material Adverse Effect) or in all material respects (in the case of any representation or warranty notqualified by materiality of Material Adverse Effect) on and as of the date hereof and on and as of the Closing Date (except to the extent such representationsand warranties speak expressly as of an earlier date, in which case such representations and warranties shall be true and correct in all material respects as ofsuch earlier date) as though made on and as of such date; 3.2.2. Sellers shall have performed in all material respects all obligations required to be performed by them under this Agreement at or prior to the ClosingDate, and no breach of any material covenant included in ARTICLE 7 has occurred; 3.2.3. The members of Avanxo (Bermuda) Limited passing a resolution (in a form satisfactory to the Purchaser), authorizing the person(s) signing thisAgreement to so sign and confirming that the proposed sale of the Shares in the manner set out in this Agreement is in accordance with the provisions of itsconstitutional documents; 3.2.4. Sellers shall have provided evidence reasonably satisfactory to the Purchaser of the transfer to Avanxo or any Subsidiary, as applicable, of any andall shares held by any entity or individual (including but not limited to Sellers and/or Key Employees) in the applicable Subsidiaries’ corporate stockincluding but not limited to those listed in Schedule 3.2.4; 3.2.5. Sellers having obtained the requisite waivers of any rights of first refusal or other restrictions on transfer from the members of Avanxo in respect ofthe sale of their respective proportion of the Shares to the Purchaser; 3.2.6. As provided in Section 2.2.5 above, the Sellers shall have delivered letters of resignation, release and waivers of claim (in a form satisfactory to thePurchaser) as Avanxo’s and/or Subsidiaries’ officers, managers and managing members effective on and from the Closing Date; 3.2.7. Sellers shall have provided evidence reasonably satisfactory to the Purchaser of the termination of (i) any shareholders’ agreement entered into byand among Avanxo and any of the Sellers, including but not limited to the Shareholders’ Agreement of Avanxo dated as of November 22, 2013, entered intoby and between the persons listed in Schedule 3.2.7, as amended and/or complemented by additional documents (the “Shareholders’ Agreement”), (ii) theSide Letter among the persons listed in Schedule 3.2.7, dated November 19, 2013, regarding the maintenance of the Put Option set forth in the shareholdersagreement of Avanxo Bermuda Limited, dated November 30, 2009, (iii) the Letter Agreement among the persons listed in Schedule 3.2.7 setting forth certainindemnification obligations, dated December 28, 2009, (iv) the consulting agreement between the parties listed in Schedule 3.2.7, dated January 11, 2018,and (v) the office management, legal, financial and consulting services agreement between the parties listed in Schedule 3.2.7 dated August 1, 2018; 3.2.8. Sellers shall have provided a release from the persons listed in Schedule 3.2.8 of the full payment and absence of any owed amounts regarding feesor any other amount owed to such persons in connection with the rendering of consulting services, management, operational developments, strategicplanning and strategic alliances, performance reviews, access to Marseilles’s network of business relationships, partners and advisors or any other advice,service or assessment pursuant to Section 8 of the Shareholders’ Agreement, or pursuant to any other arrangement entered into by and among all or some ofthe persons listed in Schedule 3.2.8 and the Company prior to the Closing Date; 16Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 3.2.9. All approvals, consents, ratifications, permissions, permits, waivers or authorizations (including any governmental approval, authorization orclearance and the waivers under the agreements listed in Schedule 3.2.9) required for the purchase and sale of the Shares shall have been obtained and are infull force and effect; 3.2.10. There shall not have occurred any Material Adverse Effect, and no event, circumstance or other Effect shall have occurred or shall exist that, incombination with all other events, circumstances and other Effects, would reasonably be expected to have or result in a Material Adverse Effect. “MaterialAdverse Effect” means any change, event, effect, claim, circumstance or matter (each, an “Effect”) that (considered together with all other Effects) is, orwould reasonably be expected to be or to become, materially adverse and relating to (a) the condition, usefulness, value or prospective benefits of the Shares;(b) the condition, liabilities, operations, results of operations or prospects of the businesses operated by the Company; or (c) Purchaser’s right or ability toown or otherwise exercise rights of a holder of the Shares provided, however, that “Material Adverse Effect” shall not include any event, occurrence, fact,condition or change, directly or indirectly, arising out of or attributable to (i) changes in the general economic or political conditions or the financing,banking, currency, capital markets, markets, or industries in which the Company conduct its businesses that are not reasonably expected to have adisproportionate adverse impact on the Company; (ii) changes in Laws or interpretations thereof or changes in accounting requirements or principles that arenot reasonably expected to have a disproportionate adverse impact on the Company; (iii) Purchaser’s announcement of the pendency or consummation of thetransactions contemplated by this Agreement or other communication by Purchaser or any of its Affiliates of its plans or intentions (including in respect ofemployees) with respect to the business; (iv) any natural disaster or any acts of terrorism, sabotage, military action or war (whether or not declared) or anyescalation or worsening thereof, whether or not commenced before or after the date of this Agreement; or (v) any action required to be taken after the date ofthis Agreement under any (A) Law or, (B) judgment, in each case existing as of the date of this Agreement and disclosed by the Sellers to Purchaser in theDisclosure Schedule; 3.2.11. All stock options, warrants and other instruments convertible into, exchangeable for or otherwise representing a right to purchase or acquireordinary or preferred shares of capital stock or other equity interests or securities of the Company shall have been terminated, on terms and conditionssatisfactory to the Purchaser; 3.2.12. Sellers shall have provided wire instructions to the Purchaser in order for Purchaser to perform payment of the Group A Payment and the Group BFirst Payment, as described in Section 1.4 hereof. 3.2.13. Sellers shall have excuted and delivered to Salesforce.com Inc. a letter substantially in the terms set forth in Exhibit F and provided acommunication from Salesforce.com Inc. acknowledging the transaction instrumented hereby on terms and conditions reasonably satisfactory to Purchaser. 3.2.14. The Company shall have delivered all information for access and management of all Internet domain names (whether or not Trademarks) registeredby any authorized private registrar or Governmental Body, web addresses, web pages, websites and URLs used in the business of the Company are owned bythe Company or one or more of its Subsidiaries. 3.2.15 Purchaser shall have received each item required to be delivered to it pursuant to Section 2.2. 17Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 3.3. Conditions to Obligations of Sellers. The obligation of Sellers to effect the transaction is subject to the satisfaction of the following conditionsunless waived, in whole or in part, by Sellers: 3.3.1. Each of the representations and warranties of Purchaser set forth in ARTICLE 5 of this Agreement shall be true and correct in all respects (in the caseof any representation or warranty qualified by materiality or Material Adverse Effect) or in all material respects (in the case of any representation or warrantynot qualified by materiality of Material Adverse Effect) on and as of the date hereof and on and as of the Closing Date (except to the extent suchrepresentations and warranties expressly speak as of an earlier date, in which case such representations and warranties shall be true and correct in all materialrespects as of such earlier date) as though made on and as of such date; and 3.3.2. Purchaser shall have performed in all material respects all obligations required to be performed by Purchaser under this Agreement at or prior to theClosing Date; 3.3.3. Sellers shall have received each item required to be delivered to them pursuant to Section 2.2. ARTICLE 4.REPRESENTATIONS AND WARRANTIES OF SELLERS The Sellers represent and warrant to the Purchaser, severally and not jointly with respect to the Company, and each Seller individually with respect torepresentations and warranties relating to such Seller, that, except as set forth on the Disclosure Schedule attached as Schedule C to this Agreement (the“Disclosure Schedule”), the following representations are true and complete as of the date hereof and as of the Closing Date, except as otherwise indicated orfor such representations and warranties that according to their terms are made as of a different specific date, in which case such representations and warrantiesshall be deemed made only as of such specific date. The Disclosure Schedule and all such documents and materials are true, correct and complete in allmaterial respects as of the date furnished. The Disclosure Schedule shall be arranged in sections corresponding to the numbered and lettered sections andsubsections contained in this ARTICLE 4, and the disclosures in any section or subsection of the Disclosure Schedule shall qualify other sections andsubsections in this Section 4 to the extent it is readily apparent from a reading of the face of the disclosure (without independent reference to the text of anydocuments or agreements referred to therein) that such disclosure is applicable to such other sections and subsections. 4.1. Organization, Good Standing and Authority of the Company and its Subsidiaries. Capitalization. 4.1.1. Avanxo is a limited liability company duly organized and validly existing, and is in good standing under the Laws of the jurisdiction of itsorganization, has full power and authority to own, operate or lease the properties and assets owned, operated and leased by Avanxo and to carry on itsbusinesses, as it has and is currently conducted, and is licensed, authorized or qualified to do business, and is in good standing, in all other jurisdictions inwhich the operation of its business requires that Avanxo be qualified or authorized to do business. All limited liability company actions taken by Avanxo inconnection with this Agreement and the other Transaction Documents will be duly authorized on or prior to Closing. 4.1.2. Each Subsidiary is a company duly organized and validly existing, and each Subsidiary or branch of Avanxo is in good standing under the Laws ofthe jurisdiction of its organization or incorporation, has full power and authority to own, operate or lease the properties and assets owned, operated and leasedby the Subsidiary or branch and to carry on its businesses, as it has and is currently conducted, and is licensed, authorized or qualified to do business, and isin good standing, in all other jurisdictions in which the properties owned or leased by each of them or the operation of its business requires that theSubsidiary or branch be qualified or authorized to do business. All company actions taken by any Subsidiary in connection with this Agreement and theother Transaction Documents will be duly authorized on or prior to Closing. 18Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 4.1.3. Section 4.1.1 of the Disclosure Schedule contains detailed information of Avanxo, its Subsidiaries and branches, including the jurisdiction inwhich each of it is incorporated or organized, the jurisdictions in which it is qualified to do business, its authorized share capital or equity interests, thenumber of units or class of share capital or interests thereof duly issued and outstanding, the names of all equity owners and the number of capital shares orother equity interests owned by each equity owner, member or interest holder as of the date hereof and at Closing. 4.2. Corporate Documents. The Sellers have delivered to Purchaser complete, true and correct copies of the charter documents or certificate of formation,operating agreement and registrations with the applicable authorities of the Company , in effect as of this date and as of Closing as included in Section 4.2. ofthe Disclosure Schedule The list of directors, officers, legal representatives, managers and members of the Company as included in Section 4.2 of theDisclosure Schedule is a complete and updated list of such positions and members of the Company as of the date hereof. 4.3. Authority. This Agreement has been duly executed and delivered by Avanxo and each of the Sellers and constitutes a legal, valid and bindingobligation of Avanxo and such Seller, enforceable in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium, and similarLaws of general application relating to or affecting creditor’s rights and to general equity principles. The Sellers have full legal right and power and allauthority required to enter into this Agreement and to consummate the Transactions contemplated hereby, and are not subject to any legal, judicial orcontractual restraint concerning the disposition of their properties in general or of the Shares specifically. 4.4. No Claims. Neither the Company nor the Sellers have received any notice or threat in writing of, there are no Legal Proceedings which couldreasonably be expected to: 4.4.1. enjoin, restrict or prohibit the transfer of the Shares as contemplated by this Agreement; or 4.4.2. prevent them from fulfilling their respective obligations under this Agreement. 4.5. No Conflict. Neither the execution and delivery of this Agreement by the Company or the Sellers nor the consummation of the transactionscontemplated herein by each of the Sellers will (i) violate or conflict with or result in the breach of any Law or any order, judgment, injunction, stipulation oraward entered by or with any Governmental body or of any of the terms, conditions or provisions of, or constitute a default under or give rise to any right oftermination, cancellation or acceleration (whether after the giving of notice or the lapse of time or both) pursuant to any of the terms conditions or provisionsof, any note, indenture, mortgage, lease or other agreement, contract or instrument to which such Seller or the Company are a party or are bound or affected orresult on the creation of any Lien upon the Shares, the properties, assets, operations or business of the Company or the Sellers; or (ii) violate the bylaws or theorganizational or governing document of the Company or any Law applicable to the Company. 19Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 4.6. Shares and Capital. 4.6.1. Exhibits A and B set forth the capitalization table of Avanxo and the Subsidiaries, respectively. Each of the Sellers owns its Shares in Avanxo andthe Avanxo owns, directly or indirectly, the Shares of the Subsidiaries free and clear of any Liens. The Shares set forth on in Exhibits A and B represent onehundred percent (100%) of the issued and outstanding Shares of Avanxo and the Subsidiaries, respectively. The Shares of Avanxo and the Subsidiaries havebeen duly authorized and issued and are legally and beneficially owned directly by the Sellers or, directly or indirectly by Avanxo, as the case may be, in themanner set forth in Exhibits A and B, and are fully paid and non-assessable. The Shares were issued in compliance with applicable Laws. The Shares were notissued in violation of the organizational documents of Avanxo or any Subsidiary or any other agreement, arrangement or commitment to which a Seller orAvanxo or any Subsidiary is a party and are not subject to or in violation of any preemptive or similar rights of any other person or entity. 4.6.2. Each Seller has good and marketable title to the Shares of Avanxo owned by such Seller, and has the full right, power and authority to sell, assign,transfer and deliver such Shares. 4.6.3. After giving effect to the Closing, the capital stock of Avanxo will be as described in Section 4.6.3 of the Disclosure Schedule, and all of it is dulyand validly authorized and issued, fully paid and non-assessable, free and clear of all Liens. The Purchaser will be the sole member of Avanxo holding 100%of the Shares therein and indirectly, of 100% of the Shares of the Subsidiaries, in all cases, free and clear of any Liens. 4.7. Options and Commitments. There are no put options, call options, commitments (including but not limited to revocable or irrevocable capitalcontributions), exchange rights, preferential rights, shareholders agreements, plans or other covenants of any nature that are outstanding, that provide for thepurchase, issue or sale of any of the Shares or equity interests, or agreements that grant to any person conversion or exchange rights in connection with theshares or equity interests of the Company, or pursuant to which any person may be entitled to receive or subscribe in any capacity, shares issued or to beissued by the Company, nor are there any special rights to receive dividends or other distributions in respect of such securities of the Company. Except as set forth in Section 4.7 of the Disclosure Schedule, there are no outstanding or authorized stock appreciation rights, stock option agreements,phantom stock, profit participation, or similar rights with respect to the Company. There are no voting trusts or other agreements or understandings to whichthe Company, or any Seller is a party with respect to the voting of the capital shares or other equity interest of the Company. The Company has not granted any power of attorney or similar authority which remains in force as of the Closing Date, except for those included in Section4.7 of the Disclosure Schedule. 4.8. Litigation. Except as set forth on Section 4.8 of the Disclosure Schedule, there has not been any claim, action, cause of action, demand, Lawsuit,arbitration, notice of violation, proceeding, litigation, citation, summons, subpoena or investigation of any nature, civil, criminal, administrative, regulatoryor otherwise, whether at Law or in equity (an “Action”) initiated or, to best of the Company’s or each of the Seller’s knowledge, threatened (a) against theCompany or any Seller or any officer, director or employee arising out of their relationship with the Company, (b) that questions the validity of theTransaction Documents or the right of the Company or each Seller to enter into them, or to consummate or delay the transactions contemplated thereunder or(c) that would, either individually or in the aggregate, be reasonably expected to be material to the Company and its Subsidiaries, taken as a whole. NeitherSeller, nor the Company or any of its officers, directors or Key Employees is a party or is named as subject to the provisions of any writ, judgment, decree,award, ruling, injunction or similar order of or consent agreement with any Governmental Body, in each case whether preliminary or final, written or oral (an“Order”) (in the case of officers, directors or Key Employees, such as would affect the Company) except for those included in Section 4.8 of the DisclosureSchedule. There is no action, suit, proceeding or investigation by any Seller or the Company pending or which any Seller or the Company intends to initiate.The foregoing includes, without limitation, actions, suits, proceedings or investigations pending or threatened in writing (or any basis therefor known to theCompany or any Seller, as applicable) involving the prior employment of any of the Company’s employees, its services provided in connection with thebusiness, any information or techniques allegedly proprietary to any of their former employers or their obligations under any agreements with prioremployers. 20Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Except for this Agreement, there are no agreements or other commitments that are legally binding and enforceable, or other rights or arrangements inexistence with respect to the issue, redemption, conversion, exchange, vote or transfer of any of the Shares of the Company. 4.9. Taxes. 4.9.1. Except for instances of non-compliance that have resulted in fines or penalties that were already paid by the Company or which have resulted inpayment agreements that are currently in place as set forth in Section 4.9 of the Disclosure Schedule and that have not or would not reasonably be expectedto be material to the Company, or give rise to material fines, criminal penalties or other material civil penalties imposed on the Company, the Company hasfiled in a timely manner (within any applicable extension periods) with the appropriate Taxing Authority all Tax Returns required to be filed on or before thedate hereof and each such Tax Return was correct and complete in all material respects when filed. 4.9.2. All Taxes with respect to any taxable period ending on or prior to the Closing Date (including such Taxes for any straddle period which areallocable for such period ending prior to the Closing Date) and all Taxes due and payable (whether or not shown as due) on Tax Returns required to be filedon or before the Closing Date by the Company have been paid in full or adequate reserves or the accrual therefor have been provided and reflected on theFinancial Statements of the Company pursuant to Section 4.11 of this Agreement. 4.9.3. The Company has paid all Taxes due under applicable Law except for instances that, individually or in the aggregate, have not or would notreasonably be expected to be material to the Company, or give rise to material fines, criminal penalties or other material civil penalties imposed on theCompany. 4.9.4. Except as set forth in Section 4.9 of the Disclosure Schedule, there is no fact or transaction executed by the Company which has occurred prior tothe Closing that will lead any Taxing Authority to request from the Company or the members of the board of directors to make any payment because ofbreach of any Laws in respect of Taxes. 4.9.5. There are no outstanding agreements or waivers extending the statutory period of limitations applicable to any federal, state, local or foreignincome or other Tax returns required to be filed by the Company except for those included in Section 4.9 of the Disclosure Schedule. 4.9.6. Except as set forth in Section 4.9 of the Disclosure Schedule, no extensions or waivers of statutes of limitations have been given or requested withrespect to any Taxes of the Company . Except as set forth in Section 4.9 of the Disclosure Schedule, there is not any extension of time in force with respect tothe due date for the filing of any Tax return of the Company. 4.9.7. Except as set forth in in Section 4.9 of the Disclosure Schedule, none of the Tax Returns of the Company is currently being audited or examined byany Taxing Authority. 4.9.8. Except as set forth in Section 4.9 of the Disclosure Schedule, no assessment, deficiency or adjustment for any Taxes has been asserted, proposed orthreatened with respect to any Taxes or Tax returns of the Company, except for instances that, individually or in the aggregate, have not or would notreasonably be expected to be material to the Company, or give rise to material fines, criminal penalties or other material civil penalties imposed on theCompany. Except as set forth in Section 4.9 of the Disclosure Schedule, there is no dispute or claim concerning any Tax liability of the Company notified byany Taxing Authority. Except as set forth in Section 4.9 of the Disclosure Schedule, the Company has not received any ruling from any Taxing Authorityconcerning any Tax liability of the Company. 21Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 4.9.9. Except as set forth in Section 4.9 of the Disclosure Schedule, to the best knowledge of the Company no claim has been made by any TaxingAuthority in any jurisdiction where the Company does not file Tax Returns that it is, or may be, subject to Tax by that jurisdiction. 4.9.10. There are no Liens on any of the Shares or on any of the assets of the Company that arose in connection with any failure or alleged failure to payany Tax or file any Tax Return. 4.9.11. Except as set forth in Section 4.9 of the Disclosure Schedule, the Company is not a party to or bound by any Tax allocation, sharing or indemnityagreements or arrangements. Except as set forth in Section 4.9 of the Disclosure Schedule, no payments are due or will become due by the Company pursuantto any Tax indemnification agreement. 4.9.12. The Company has not been notified by any Taxing Authority that it is required to pay any amount for Taxes of any person as a transferee orsuccessor, by contract or otherwise. 4.9.13. The Company is in compliance in all material aspects with all applicable transfer pricing laws. 4.9.14. The Financial Statements of the Company and each of the Subsidiaries accurately reflect unpaid and accrued taxes of the Company and each of theSubsidiaries for the periods covered thereby. Except as set forth in Section 4.9 of the Disclosure Schedule no material deficiency for any taxes has beenassessed with respect to the Company that has not been abated, paid in full or adequately provided for on or disclosed in the Financial Statements. 4.9.15. Since the date of the most recent balance sheet, the Company has not incurred any liability for Taxes arising from extraordinary gains or losses, asthat term is used in IFRS, outside the ordinary course of business consistent with past custom and practice. 4.9.16. Other than as required by applicable Law, the Company will not be required to include any item of income or gain in, or exclude any item ofdeduction or loss or other tax benefit from, taxable income for any taxable period (or portion thereof) ending after the Closing Date as a result of any (a)intercompany transaction executed on or prior to Closing Date; or (b) installment sale or open transaction disposition made on or prior to the Closing Date. 4.9.17. The Company has never been a United States real property holding corporation within the meaning of Section 897(c) of the Code. 4.9.18. The Company (a) is not a domestic corporation for purposes of any provision of the Code, (b) is not a “controlled foreign corporation” as defined inSection 957 of the Code, (c) is not a ‘‘passive foreign investment company’’ within the meaning of Section 1297 of the Code, and (d) except as disclosed inSection 4.9 of the Disclosure Schedule , does not have a permanent establishment (within the meaning of an applicable Tax treaty) or otherwise has an officeor fixed place of business in a country other than the country in which it is organized. 4.9.19. The Company has not incurred, and will not incur, any liability for Taxes as a result of or in connection with the amalgamation between AvanxoLLC, a limited liability company registered in the State of Texas, U.S., and the Company on or about December 18, 2009, including, but not limited to, thetransfer of the registered office, principal establishment and central administration. 22Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. The Company is not and has not been a party to any “reportable transaction”, as defined in Section 6707A(c)(1) of the Code and the United States Treasuryregulations. 4.10. Consents and Approvals. The execution, delivery and performance of this Agreement and consummation of the transactions contemplated herebyby the Company or the Sellers will not require such Seller or the Company to obtain any permit, consent, waiver, authorization or approval of, or make anyfiling with or give notice to, any person, entity or Governmental Body, except for those permits, consents, Antitrust Clearance, approvals and authorizationsnecessary to consummate the transactions contemplated herein. The Company has satisfied and obtained all necessary corporate requirements, rights andpermits of any kind and has the power and authority to conduct its business as presently being conducted, and to own, lease, use and operate its assets in thejurisdictions where they are currently located, and in the manner in which they are currently being used and operated. No misrepresentations or omissions have been made in obtaining any such permits, consents and approvals and the transaction contemplated hereby will nothave any Material Adverse Effect. 4.11. Financial Statements. 4.11.1. Section 4.11 of the Disclosure Schedule contains a true, correct and complete copy of (i) the unaudited financial statements of Avanxo and itsSubsidiaries, for the fiscal year ended on December 31, 2018, representing the Sellers, that there is no legal requirement that the consolidated financialstatements of Avanxo have to be audited; and (ii) financial information of Avanxo and its Subsidiaries relating to revenues, financial debt and cash balancesin the Company’s bank accounts, accounts receivable (including unbilled receivables), and accounts payable as of the Closing Date (jointly (i), and (ii), the“Financial Statements”). The Financial Statements present in all respects the financial position, the results of operations and changes in financial position ofthe Avanxo and its Subsidiaries, as of the indicated dates and for the indicated periods, subject in the case of the interim consolidated financial statementsreferred to above to year-end accruals made in the ordinary course of business which are not materially adverse and which are consistent with past practices.The Financial Statements as well as the actual financial results reflected in the financial data are complete and correct and fairly stated in accordance with thebooks and records of Avanxo and its Subsidiaries and present the results of operations and the cash flows of Avanxo and its Subsidiaries as at the datesspecified, in conformity with GAAP and/or IFRS, as applicable, in all cases applied on a consistent basis. 4.11.2. The Company maintains a standard system of accounting established and administered in accordance with GAAP and/or IFRS, as applicable. TheCompany makes and keeps books, records and accounts which, in reasonable detail, accurately and fairly reflect the transactions and dispositions of itsassets. Neither the Company nor any of the Company’s accountants has identified or been made aware of (i) any fraud, whether or not material, that involvesthe Company’s management or any other current or former employee, consultant, contractor or director of the Company who has a role in the preparation offinancial statements or the internal accounting controls utilized by the Company or (ii) any claim or allegation regarding any of the foregoing. 23Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 4.12. Ordinary Course. Except as set forth in Section 4.12 of the Disclosure Schedule, since November 30, 2018, the Company has conducted its businessin the ordinary and usual course of business and consistent with past practice and have not (i) suffered any damage or other casualty loss (whether or notcovered by insurance); (ii) issued, sold, transferred, leased any properties or assets, merged with, entered into a consolidation, acquired an interest or asubstantial portion of assets or business of any person or otherwise acquired any material asset, or made any capital expenditure or commitment for anycapital expenditure other than the ordinary course of business consistent with past practice; (iii) issued or sold any units, membership interests, capital stock,notes, bonds or other securities, or any option, warrant or other right to acquire the same, of, or any other interest in the Company; (iv) borrowed any amountor incurred or become subject to any liabilities or entered into any guarantee, permitted or allowed any of the assets or properties (whether tangible orintangible) of the Company to be subjected to any encumbrance of any nature or discharged or otherwise obtained the release of any encumbrance or paid orotherwise discharged any liability of any nature; (v) made any loan or advances to, guarantees for the benefit of, or investments in, any persons; (vi) directlyor indirectly engaged in any transaction, agreement or entered into any arrangement with any officer, director, member or other affiliate or relative of suchperson; (vii) amended its articles of association, operational agreement or other organizational documents; (viii) made any change in the accounting methodor principles or in its auditing practices; (ix) failed to pay any creditor any amount owed to such creditor when due, except for instances of noncompliancethat, individually or in the aggregate, have not or would not reasonably be expected to be material to the Company, or give rise to material fines, criminalpenalties or other material civil penalties imposed on the Company, or have been waived by the Company’s counterparties; (x) entered into any agreement,arrangement or transaction with any of its directors, officers, managers, members, employees or shareholders (or with any relative, beneficiary or spouse ofsuch person); (xi) except as required by applicable law or consistent with past practices, granted, increased or promised to increase or announced anyincrease, in the wages, salaries, compensation, bonuses, incentives, pension or other benefits payable by the Company; (xii) amended, terminated, canceled orcompromised any claims or waived any other rights of value; (xiii) allowed any Permit that was issued or relates to the Company or otherwise relates to anyasset of the Company to lapse or terminate or failed to renew any such Permit or any insurance policy, except when such lapse or termination or failure torenew would not be reasonably be expected to be material to the Company, or give rise to material fines, criminal penalties or other material civil penaltiesimposed on the Company, in any event unless mandated by applicable Law; (xiv) amended, modified or consented to the termination (when such consentwas required) of any Material Contract with clients or any of the Company's rights thereunder; (xv) made any charitable contribution or made any express ordeemed election or settled or compromised any liability, with respect to Taxes of the Company; or (xvi) entered into an agreement whether in writing orotherwise or granted similar rights or commitments to do any of the foregoing. 4.13. Liabilities. The Company does not have any material debt, liability, obligations or loss contingencies of any kind, except those reflected in theFinancial Statements and liabilities incurred since the date of the Financial Statements in the ordinary course of the business consistent with past practiceswhich do not and could not have a Material Adverse Effect on the Company. 24Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 4.14. Material Contracts. Section 4.14 of the Disclosure Schedule sets forth a list of, and the Purchaser has been provided access to, all material contracts,agreements and instruments of the Company (each, a “Material Contract”). There are no other agreements, understandings, instruments, contracts orproposed transactions to which the Company is a party or by which it is bound that (i) involve (A) any major customer (“Major Customer Agreements”), (B)payment obligations (contingent or otherwise) of, or payments from, the Company in excess of $400,000, (C) any restrictions or limitations on theCompany’s right to do business or compete in any area or any field with any person or to develop, distribute, operate, or otherwise engage in the Company’sproducts and services or the business of the Company, (D) the grant to any person other than the Company of any exclusive license, supply, distribution orother rights, “most favored nation” rights, rights of first refusal, rights of first negotiation or similar rights, or exclusive rights to purchase any of theCompany’s products or services, or (E) any real property leases, or (ii) are otherwise material to the Company or its business. Each Material Contract is validand binding on the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency,reorganization, moratorium, liquidation or similar Laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by otherequitable principles of general application, and is in full force and effect. The Company has not waived, or assigned or purposed or agreed to assign to anyother person, any of its material rights under any Material Contract. The Company has performed all material obligations required to be performed by it and isnot in material default under or in material breach of nor in receipt of any claim of default or breach under any such contracts, agreement or instrument towhich the Company is a party or by which the Company is bound. There are no Material Contracts imposing obligations on the Company which compliancecould reasonably be expected to be beyond the operational possibilities of the Company, in the ordinary course of business, and, to the best knowledge ofthe Sellers, there are no current or past events that could potentially delay, hinder or impede compliance of such Material Contracts’s obligations, nor arethere any irregularities in any project assigned to the Company that could result in a material breach, early termination of or claim under such MaterialContracts. Except as set forth in Section 4.14 of the Disclosure Schedule, no event has occurred which with the passage of time or the giving of notice or bothwould result in a default, breach or event of default by the Company or event of acceleration, termination or claim under any such contracts, agreement orinstrument to which the Company is subject. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplatedherein will conflict with or result in the breach of any of the terms, conditions or provisions of, or constitute a default under or give rise to any right oftermination, cancellation or acceleration (whether after the giving of notice or the lapse of time or both) of, any Material Contract to which the Company is aparty or by which the Company, or any of its respective properties or assets, are bound or affected. There are no claims of default or breach under any contract,agreements or instrument to which the Company is a party or by which is bound and there is no other event or circumstance that will or would reasonably beexpected to give rise to or serve as a reasonable basis for the commencement of any such claim by third parties. 4.15. Assets. 4.15.1. The Company has clear, good, valid and marketable title to, or a valid leasehold interest in its assets, whether owned, leased or used, free and clearof all Liens. The Company owns or has a valid leasehold interest in all assets necessary for the conduct of its business as presently conducted. Section 4.15 ofthe Disclosure Schedule includes a detail of immovable assets and inventory of movable assets of the Company as registered in the Financial Statements. 4.15.2. Where any tangible assets are used but not owned by the Company, there has not occurred any event of default or any other event or circumstancewhich may entitle any third party to terminate any agreement or license in respect of the use of such assets. All leases pursuant to which the Company leased(whether as lessee or lessor) any real or any other tangible property used in their business are valid and effective. 4.15.3. The Company owns or has the right to use each asset necessary for the effective operation of their businesses as now carried on. All assets owned orused by the Company are in their possession and under their control. 4.15.4. All accounts receivable reflected in the Financial Statements and all accounts receivable to be reflected in Section 4.15 of the Disclosure Schedule(net of allowances for doubtful accounts as reflected thereon and as determined in accordance with GAAP consistently applied) (the “Accounts Receivable”)are or will be bona fide accounts receivable owing to the Company and arising in the ordinary course of business, and are not subject to offset or reduction forany reason. No Person has any Lien on Accounts Receivable or any part thereof, and no agreement for rebate, deduction, free goods, discount or otherdeferred price or quantity adjustment has been made with respect to any such Accounts Receivable. 25Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 4.16. Banking & Finance. 4.16.1. Section 4.16.1 of the Disclosure Schedule accurately sets forth, with respect to each account maintained by or for the benefit of the Company at anybank or other financial institution: (a)the name and location of the institution (including bank code) at which such account is maintained; (b)the name in which such account is maintained, the account number; (c)a description of such account and the purpose for which such account is used; (d)the rate of interest being earned on the funds in such account; and (e)the names of all individuals authorized to draw on or make withdrawals from such accounts. 4.16.2. Except as set forth in Section 4.16.2 of the Disclosure Schedule, there is no current or past borrowings (including credit, loan, financial lease,factoring arrangements) for the Company. The Company has not lent any money that has not been repaid. 4.16.3. No encumbrance nor any guarantee, suretyship, indemnity or similar commitment has been given by or entered into by the Company in respect of itsobligations or the obligations of a third party including any shareholders of the Company. 4.16.4. The consummation of the transaction will not result in any present or future indebtedness of the Company becoming due, or capable of beingdeclared due and payable, prior to its stated maturity or any loan facilities of the Company being withdrawn under any agreement or arrangement. 4.16.5. Except as set forth in Section 4.16.5 of the Disclosure Schedule, the Company has not created any charge or other security interest, since itsincorporation, in favour of any person as security for any loan, borrowing or other financial assistance incurred by the Company. 4.17. Clients, Vendors & Suppliers. 4.17.1. Section 4.17 of the Disclosure Schedule sets forth for the Company: (a) the clients measured by revenues generated from each such client as ofDecember 31, 2018 and (b) the clients currently under contract (measured by revenues generated) for the following 12-month period. Except as set forth inSection 4.17 of the Disclosure Schedule, no client identified pursuant to clause (b) above has advised the Company that (x) it is terminating or consideringterminating the handling of its business by the Company, as a whole or in respect of any particular project or service; or (y) is planning to reduce its futurespending with the Company in any manner, or (z) this Agreement and the transaction contemplated hereby affects the continuity of the current clients’contracts and no such client has advised the Company, or a Seller, of any of the foregoing events. However, nothing contained in this Section is arepresentation that a client will not terminate or will renew its contract once its term expires or that a Client’s spending with the Company will remain thesame or increase. 4.17.2. The Company shall continue with its business and operations as currently conducted, and except as set forth in Section 4.17 of the DisclosureSchedule, there has not been any interruption or termination of any relationship with any key vendor, provider or supplier (including, without limitation,Salesforce.com Inc. and its Affiliates) and the Management Team (as this term is defined in Section 4.21.9) is expected to continue in the Company; and, 26Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 4.17.3. All contractual relationships between the Company and its clients are in full force and effect pursuant to applicable Laws in accordance with theirterms. 4.18. Intellectual Property. 4.18.1. Patents. Section 4.18.1 of the Disclosure Schedule sets forth an accurate and complete list of all Patents in which the Company or one of itsSubsidiaries has an ownership interest or which have been exclusively licensed to the Company or one of its Subsidiaries (collectively the “CompanyPatents”), identifying for each of the Patents (A) the patent number and issue date (if issued) or application number and filing date (if not issued), (B) its title,(C) the named inventors, (D) whether it is owned by or exclusively licensed to the Company or one of its Subsidiaries and (E) its current status. No CompanyPatent has been or is now involved in any interference, reissue or reexamination proceeding and, to the best knowledge of the Company or the Sellers, nosuch action is or has been threatened with respect to any of the Company Patents and there is no patent of a third party interfering with any Company Patent. 4.18.2. Copyrights. Section 4.18.2 of the Disclosure Schedule sets forth an accurate and complete list of all registered Copyrights owned (in whole or inpart) by or exclusively licensed to the Company or any of its Subsidiaries, all pending applications for registration of Copyrights filed anywhere in the world,and all unregistered Copyrights that are material to the business of the Company, that are owned (in whole or in part) by or exclusively licensed to theCompany or any of its Subsidiaries (collectively the “Company Copyrights”). 4.18.3. Trademarks. Section 4.18.3 of the Disclosure Schedule sets forth an accurate and complete list of all registered and material unregistered Marksowned (in whole or in part) or exclusively licensed by the Company or any of its Subsidiaries (collectively “Company Marks”), and specifically lists allregistrations and applications for registration with all Governmental Bodies that have been obtained or filed with regard to such Company Marks, identifyingfor each (A) its registration (as applicable) and application numbers, (B) whether it is owned by or exclusively licensed to the Company or the relevantSubsidiary, (C) its current status and (D) the class(es) of goods or services to which it relates. All Company Marks registered with any Governmental Body,and for which applications to register have been filed with such Governmental Body which are being used, have been continuously used in the formappearing in, and in connection with, the goods and services listed in their respective registration certificates and applications therefor, respectively. To thebest of Sellers’ knowledge, there has been no prior use of any material Company Mark by any third party that would confer upon such third party superiorrights in such Company Mark. No Company Mark has been or is now involved in any opposition or cancellation proceeding and, to the best knowledge ofthe Company or any Seller, no such action is or has been threatened with respect to any of the Company Marks. 4.18.4. Actions to Protect Intellectual Property. Except as set forth in Section 4.18.4 of the Disclosure Schedule, each of the Company and its Subsidiarieshas taken commercially reasonable steps in accordance with standard industry practices to protect its material Intellectual Property Rights and maintain theconfidentiality of all of the Trade Secrets of the Company or any of its Subsidiaries and other confidential information of the Company or its Subsidiaries. 4.18.5. Adverse Ownership Claims. Neither the Company nor any of its Subsidiaries has received any written notice or claim challenging the ownership bythe Company or any of its Subsidiaries of any of the material Intellectual Property Rights owned (in whole or in part) or exclusively licensed to the Companyor any of its Subsidiaries or suggesting that any other person has any claim of legal or beneficial ownership with respect thereto, nor to the best knowledge ofthe Company or any Seller is there a reasonable basis for any such claim. 27Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 4.18.6. Validity and Enforceability. Each of the registered Company Marks, the Company Patents and registered Company Copyrights (collectively, the“Company Registered IP”) is valid and enforceable (provided however, no representation or warranty is made regarding the validity or enforceability of anypatent application), and neither the Company nor any of its Subsidiaries has received any written notice or claim challenging or questioning the validity orenforceability of any of the Company Registered IP or indicating an intention on the part of any person to bring a claim that any of the Company RegisteredIP is invalid or unenforceable or has been misused. 4.18.7. Status and Maintenance of Company Registered IP. The Company has not taken any action or failed to take any action (including the manner inwhich it has conducted its business, or used or enforced, or failed to use or enforce, any of the Company Registered IP) that would result in the abandonment,cancellation, forfeiture, relinquishment, invalidation or unenforceability of any of the Company Registered IP (including, with respect to the CompanyPatents, failing to disclose any known material prior art in connection with the prosecution of patent applications). 4.18.8. All Company Registered IP has been registered or obtained in accordance with all applicable legal requirements and are currently in effect and incompliance with all applicable legal requirements (including, in the case of registered Company Marks, the timely post-registration filing of affidavits of useand incontestability and renewal applications). The Company has timely paid all filing, examination, issuance, post-registration and maintenance fees,annuities and the like associated with or required with respect to any of the Company Registered IP, except for instances of noncompliance that, individuallyor in the aggregate, have not or would not reasonably be expected to be material to the Company, or give rise to material fines, criminal penalties or othermaterial civil penalties imposed on the Company. 4.18.9. Inbound License Agreements. Section 4.18.9 of the Disclosure Schedule sets forth a complete and accurate list of all Inbound License Agreements,indicating the title and the parties thereto. The rights licensed under each Inbound License Agreement shall be exercisable by the Company on and after theapplicable Closing to the same extent as by the Company or its applicable Subsidiary prior to the applicable Closing. No loss, breach or expiration of anymaterial Intellectual Property Rights licensed to the Company or any of its Subsidiaries under any Inbound License Agreement is pending or reasonablyforeseeable or, to the best knowledge of the Company or any Seller, threatened. Each licensor under the respective Inbound License Agreement has theownership or exclusive license rights in or with respect to any improvements made by the Company or any Subsidiary to the Intellectual Property Rightslicensed thereunder. 4.18.10. Outbound License Agreements. Section 4.18.10 of the Disclosure Schedule accurately identifies each Outbound License Agreement. With respectto each Outbound License Agreement, the Company has not granted under any title, any kind of ownership or exclusive rights over any improvements of thesoftware or other Technology licensed under such Outbound License Agreement -including improvements made by the licensee or third parties- exceeding orin breach of any applicable Inbound License Agreement. All software or other Technology provided by the Company or any of its Subsidiaries under anyOutbound License Agreement is in compliance with all applicable Laws and the terms of such Outbound License Agreement and any Inbound LicenseAgreement governing the Company or any Subsidiaries’ rights thereto. 4.18.11. Sufficiency of IP Assets. The Company Intellectual Property Rights constitutes all of the Intellectual Property Rights necessary for the conduct ofthe business of the Company as currently conducted. 28Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 4.18.12. No Encumbrances. Except for Inbound License Agreements, Outbound License Agreements, and any agreements referenced in the exclusions tothose two defined terms, there are no outstanding options, licenses, agreements, claims, liens, encumbrances or shared ownership interests of any kind relatingto the Company Intellectual Property Rights, nor is the Company or any of its Subsidiaries bound by or a party to any other options, licenses or agreements ofany kind (including any source code escrow arrangement) with respect to the Technology or Intellectual Property Rights of any other Person. 4.18.13. No Infringement by the Company or Third Parties. None of the products, processes, services, or other technology or materials, or any otherIntellectual Property Rights, developed, used, leased, licensed, sold, imported, or otherwise distributed or disposed of, or otherwise commercially exploitedby or for the Company or any of its Subsidiaries, nor any other activities or operations of the Company or any of its subsidiaries, infringes upon,misappropriates, violates, dilutes or constitutes the unauthorized use of, any Intellectual Property Rights of any third party, and neither the Company nor anyof its Subsidiaries has received any written notice or claim asserting or suggesting that any such infringement, misappropriation, violation, dilution orunauthorized use is or may be occurring or has or may have occurred. No Company Intellectual Property Right is subject to any outstanding order, judgment,decree, stipulation or agreement restricting the use thereof by the Company or any such Subsidiary or, in the case of any Intellectual Property Rights licensedto others, restricting the sale, transfer, assignment or licensing thereof by the Company or any of its Subsidiaries to any Person. To the best knowledge of theCompany or any of the Sellers, no third party is misappropriating, infringing, diluting or violating any Intellectual Property Rights owned by or exclusivelylicensed to the Company or any of its Subsidiaries. 4.18.14. Inventions by Personnel. It will not be necessary to use any inventions of any of its employees or contractors (or Persons it currently intends to hire)made prior to their employment by the Company or any of its Subsidiaries. Each former and current employee, contractor, advisor and consultant of theCompany or any of its Subsidiaries that has been or currently is involved in the development of Company Intellectual Property Right for the Company or anyof its Subsidiaries has validly assigned to the Company or a Subsidiary all Technology and Intellectual Property Rights that he or she owned prior to suchassignment that they developed in the course of their employment (in the case of employees) and/or in the course of their engagement (in the case ofcontractors, advisors and consultants) and that are incorporated or embodied in any Company Intellectual Property Right owned by the Company or any ofits Subsidiaries or are otherwise related to the business of the Company. 4.18.15. Open Source. Neither the Company nor any Subsidiary has embedded, used or distributed any open source, copyleft or community source code(including but not limited to any libraries or code, software, technologies or other materials that are licensed or distributed under any General Public License,Lesser General Public License or similar license arrangement or other distribution model described by the Open Source Initiative at www.opensource.org,collectively “Open Source Software”) in connection with any of its products or services that are generally available or in development in any manner thatwould materially restrict the ability of the Company or any Subsidiary to protect its proprietary interests in any such product or service or in any manner thatrequires, or purports to require (i) any Company Intellectual Property Right (other than the Open Source Software itself) be disclosed or distributed in sourcecode form or be licensed for the purpose of making derivative works, (ii) any restriction on the consideration to be charged for the distribution of anyCompany Intellectual Property Right, (iii) the creation of any material obligation for the Company or any Subsidiary with respect to Company IntellectualProperty Right owned by the Company or any Subsidiary, or the grant to any third party of any rights or immunities under Company Intellectual PropertyRight owned by the Company or any Subsidiary or (iv) any other material limitation, restriction or condition on the right of the Company or any Subsidiarywith respect to its use or distribution of any Company Intellectual Property Right. 29Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 4.18.16. Government Funding. No funding, facilities or resources of any Governmental Authority or any university, college or other educational institutionor government research center were used in the development of any Company Intellectual Property Right that is owned by the Company or any of itsSubsidiaries. 4.19. Employee Agreements. Except as set forth on Section 4.19 of the Disclosure Schedule, each current and past employee, consultant, advisor,contractor and officer of the Company has executed an agreement with the Company regarding confidentiality and proprietary information substantially inthe form or forms delivered to the counsel for the Purchaser (the “Confidential Information Agreements”). No current or former employee, consultant,advisor, contractor or officer has excluded works or inventions from his or her assignment of inventions pursuant to such employee’s ConfidentialInformation Agreement. To the best of the Sellers’ knowledge, none of the Company’s employees, consultants, advisors, contractors or officers is in violationof any agreement covered by Section 4.19. 4.20. Insurance. The Company has any and all insurance required by applicable Law or by any contractual obligation assumed by the Company, exceptfor instances of noncompliance that, individually or in the aggregate, have not or would not reasonably be expected to be material to the Company, or giverise to material fines, criminal penalties or other material civil penalties imposed on the Company or the Sellers, or have been waived by the Company’scounterparties. To the best of Sellers’ knowledge, the Company carries adequate insurance with respect to its properties, assets and business in amounts and under policies asstated in Section 4.20 of the Disclosure Schedule, including such policies of insurance that are required to the nature of the business conducted by it andpursuant to the contracts with clients of the Company, and each such policy is in full force and effect (including renewals thereof) as of the Closing Date. There are no notifications served in compliance with applicable Law with regards to any liability under such insurances being avoided by the insurers, andtransactions contemplated hereby do not have the effect of terminating, or entitling any insurer to terminate, or cover under any such insurance. Suchinsurance policies shall remain in full force and effect from and after the Closing Date, except for the right of parties to insurance policies to terminateinsurance policies at any time. The Company has not received, and none of the Sellers has received, any written notice of cancellation, of, premium increasewith respect to, or alteration of coverage under, any of such insurance policies. All premiums due under such insurance policies have been paid in accordancewith the terms thereof. No claim is outstanding by the Company under any policy of insurance held by it and there are no circumstances likely to give rise to such a claim, exceptfor instances of noncompliance that, individually or in the aggregate, have not or would not reasonably be expected to be material to the Company, or giverise to claims or to material fines, contingencies, criminal penalties or other material civil penalties imposed on the Company or the Sellers, or have beenwaived by the Company’s counterparties. 4.21. Employees. 4.21.1. Except as would not reasonably be expected to have a, individually, or in the aggregate, a Material Adverse Effect, the Company is in compliancein all respects with all applicable foreign, federal, state and local Laws, rules and regulations relating to labor practices, employment, Labor Agreements andLabor Permits and Regulations including, without limitation, provisions and regulations thereof relating to terms and conditions of employment,employment practices, health and safety, wages and hours, child labor, immigration, employment discrimination, disability rights, benefits, equalopportunity, plant closures and layoffs, affirmative action, workers’ compensation, labor relations, employee leave issues and unemployment insurance andthe payment of social security and other Taxes. 30Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 4.21.2. Except as would not reasonably be expected to have a, individually, or in the aggregate, a Material Adverse Effect, the Company complies with allcontractually and statutory based payment obligations regarding the employees. All salaries and other payments that have become due to the employees andworkers have been duly paid, and there are no payments outstanding to any of its employees and workers. Except as disclosed in Section 4.21.2 of theDisclosure Schedule, vacations, bonuses, mandatory bonuses and any other labor and social security obligations and Taxes accrued until Closing inconnection with employees of the Company have been paid or the accrual therefore is reflected pursuant to Sections 4.11 and 4.26 of this Agreement. 4.21.3. The Company has no labor relations problems (including, without limitation, threatened or actual strikes or work stoppages or grievances). TheSubsidiaries have the unions listed in Section 4.21.3 of the Disclosure Schedule. Neither the Company nor any of its employees is subject to any non-compete, nondisclosure, confidentiality, employment, consulting or similar agreements relating to, affecting or in conflict with the present or proposedbusiness activities of the Company. 4.21.4. Except as set forth in Section 4.21.4 of the Disclosure Schedule, there is no pending outstanding or to the Sellers’ best knowledge threatened claimfrom any of the Company’s employees against the Company and the Sellers are not aware of any circumstances which may give rise to such a claim. 4.21.5. Section 4.21.5 of the Disclosure Schedule sets forth the number of each employee’s hire date of employment, job title, monthly basic compensationand any other type of compensation, place of work, type of employment, eligibility to obtain bonus, annual days of paid time off, and other benefits for eachregular, full time or part time employee of the Company. Except as set forth in Section 4.21.5 of the Disclosure Schedule, all of the employment contractsrelated to any employees of the Company and consulting agreements to which the Company is a party, are in writing. Section 4.21.5 of the DisclosureSchedule lists each employee benefit plan sponsored, maintained, contributed to by the Company or to which the Company has any liability, contingent orotherwise, for the benefit of any employee or former employee of the Company. Except in the ordinary course of business or pursuant to the Company’spolicies and, in all cases, as set forth in Section 4.21.5 of the Disclosure Schedule, the Company has not granted or promised an increase in any employee’scompensation, bonuses, incentives or any benefit that would become effective after the Closing. 4.21.6. Section 4.21.5 of the Disclosure Schedule, sets forth a list of the Company’s employee’s and workers entitled to receive performance bonus to bepaid as of the Closing Date for the period January 1, 2018 to December 31, 2018, including, their position and bonus range for each position and reflectingany and all Company´s bonus policies, performance bonus, profit sharing, commission, discretionary bonus arrangements, share option schemes, profitrelated pay schemes, or employee share ownership plans of the Company for each such Company’s employee’s and/or workers. The Company has nooutstanding debt or payment obligation of any nature related to employee’s performance bonus or any other obligation. There are no profit sharing, commission, discretionary bonus arrangements, share option schemes, profit related pay schemes, or employee share ownershipplans in respect of any of the directors, employees or workers of the Company, except as disclosed in Section 4.21.5 of the Disclosure Schedule. 4.21.7. Except as set forth in Section 4.21.5 of the Disclosure Schedule, the consummation of the transaction contemplated hereby will not entitle anymanager, director, officer or employee to terminate their employment and receive any payment or other benefits or result in the acceleration of the time ofpayment or vesting of any awards or benefits under any Labor Agreements or Employee Benefit Plans. Except as set forth in Section 4.21.5 of the DisclosureSchedule, the Company has not made or agreed to make a payment or provided or agreed to provide a benefit to a present or former director or officer,employee or worker or to their dependants in connection with, or related to the transaction contemplated hereby. 31Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 4.21.8. Section 4.21.8 of the Disclosure Schedule sets forth a list of the Company’s current independent contractors and for each the initial start date of theengagement, termination date of the engagement, a description of the remuneration arrangements applicable to each independent contractors and a briefdescription of the services provided. 4.21.9. Section 4.21.9 of the Disclosure Schedule sets forth a list of the Company’s employees considered to be the “Management Team”. As of the date ofthis Agreement, none of the employees in the Management Team list has given written notice to the Company or any of the Sellers to resign from his or heremployment or has terminated his or her employment with the Company. None of the Selling Parties has any reason to believe that any of such keyemployees intend to resign from employment. 4.22. Compliance with Law; Permits. Each of the Company and the Sellers has complied with all applicable Laws and is not in violation of anyapplicable Law relating to the operation of its business, and has not received notice of any such violation, except for instances of noncompliance that,individually or in the aggregate, have not or would not reasonably be expected to be material to the Company, or give rise to claims or to material fines,contingencies, criminal penalties or other material civil penalties imposed on the Company or the Sellers. All permits, licenses, approvals, certifications,registrations, consents and similar authorizations of the Company required to conduct its business and to own, lease, use and, when applicable, operate itsassets are currently in full force and effect, are not in default, and are valid under applicable Laws according to their terms, except for instances ofnoncompliance that, individually or in the aggregate, have not or would not reasonably be expected to be material to the Company, or give rise to claims orto material fines, contingencies, criminal penalties or other material civil penalties imposed on the Company or the Sellers. There is no legal action,governmental proceeding or investigation pending against the Company or threatened against the Company to terminate, suspend or modify any permit andthe Company is in compliance in all respects with the terms and conditions of all permits, including all requirements for notification, filing, reporting, andmaintenance of records. All legal and procedural requirements in relation to all mandatory filings with all Governmental Bodies have been duly and properly complied with in allmaterial respects and the Company is not in violation of any material requirements or obligations pursuant to any applicable Laws. Neither the Company nor any of the Sellers or any of their directors, officers or employees, executive officers, directors or any individual, entity, ororganization holding any ownership interest or controlling interest in either Company or the Sellers is an individual, entity, or organization with whomGlobant is prohibited from dealing by any United States Law, regulation, or executive order, including, without limitation, names appearing on the U.S.Department of the Treasury’s Office of Foreign Assets Control’s and Specially Designated Nationals and Blocked Persons List. 4.23. Affiliated Transactions. Except as set forth in Section 4.23 of the Disclosure Schedule, no manager, officer, director, employee, stockholder oraffiliate of the Company or any individual known to be related by blood, marriage or adoption to any such individual or any entity in which any such personor individual owns any beneficial interest, is a party to any outstanding contract with the Company or has any interest in any property used by the Company. All contracts, agreements and arrangements between the Company and related parties have always been in compliance with transfer pricing rules andregulations. 32Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 4.24. Dividends. Since December 31, 2017, the Company has not declared or distributed any dividends or made other distributions (whether in cash,stock, or property, or any combination thereof). At the time of Closing, there will be no dividends due to any present or past shareholder of the Company. 4.25. Sellers Credit. None of the Sellers holds a credit or any right to receive a payment from the Company. 4.26. Books and Records. (a) The books of accounting of the Company have been fully, properly and accurately maintained in all respects, and contain inall respects true, complete and accurate records of all matters required by Law to be entered therein. The Sellers represent and warrant that the registrationsmade in the books of accounting reflect valid, genuine and legitimate transactions. (b) The books of accounts and other financial records of the Company: (i)reflect all items of the Financial Statements and of income and expense and all assets and liabilities required to be reflected therein in accordance withapplicable Laws and regulations, (ii) are in all respects complete and correct, and do not contain or reflect any inaccuracies or discrepancies and (iii) havebeen maintained in accordance with applicable generally accepted accounting practices, except for instances of noncompliance that, individually or in theaggregate, have not or would not reasonably be expected to be material to the Company, or give rise to claims or to material fines, contingencies, criminalpenalties or other material civil penalties imposed on the Company or the Sellers. There is no untrue, false or misleading information as well as no undisclosed liabilities in the statutory books, Financial Statements and records of theCompany which may lead to unexpected liabilities of the Company. 4.27. Office Leases. Section 4.27 of the Disclosure Schedule includes a list of the lease agreements (“Lease Agreements”) with respect to all of the realproperty leased or subleased to and occupied and used (or to be occupied and used) by the Company in conducting the operations of its business (the“Leased Real Property”). The Company has a valid leasehold interest in the Leased Real Property and the Lease Agreements are in full force and effect andthere are no disputes or conflicts whatsoever pending or threatened against the Company in relation to the Lease Agreements. As of the Closing Date, thereare no amounts due and unpaid by the Company under the Lease Agreements for any period before Closing or with respect to the Leased Real Property andthe Company is not in breach of any of its obligations under the Lease Agreements. 4.28. Effects of Due Diligence. The performance by the Purchaser, its auditors and counsel of a legal, tax, technical and accounting audit of the Companyand other due diligence tasks carried out by them or by others at their request prior to or the date hereof, or the results thereof, in no way limit or exclude theliabilities of the Company or the Sellers under this Agreement, except for those liabilities included in the Disclosure Schedule (subject to any specifictreatment agreed in connection thereto). None of the rights of Globant hereunder shall be limited or affected in any respect by reason of any knowledge acquired by Purchaser, or its agents orrepresentatives, of the business, liabilities or rights of the Company, in the conduct of due diligence reviews or otherwise except for those liabilities includedin the Disclosure Schedule (subject to any specific treatment agreed in connection thereto). 4.29. No other Investments. Except as listed in Section 4.28 of the Disclosure Schedule, the Company does not own or has any ownership interests of anykind, or is the beneficiary directly or indirectly of any shares or participation interests of any kind of outstanding capital stock or securities convertible intoor exchangeable or exercisable for capital stock or, or any other equity interest in any other person. 33Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 4.30. Foreign Corrupt Practices Act. Neither the Company, the Sellers, nor any of their directors, officers, employees, nor, to the Company’s or any of theSellers’ knowledge, any of their agents have, directly or indirectly, made, offered, promised or authorized any payment or gift of any money or anything ofvalue to or for the benefit of any “foreign official” (as such term is defined in the FCPA), foreign political party or official thereof or candidate for foreignpolitical office for the purpose of (a) influencing any official act or decision of such official, party or candidate, (b) inducing such official, party or candidateto use his, her or its influence to affect any act or decision of a foreign Governmental Body, or (c) securing any improper advantage, in the case of (a), (b) and(c) above, in order to assist the Company or any Seller in obtaining or retaining business for or with, or directing business to, any person. Neither theCompany, the Sellers, nor any of their directors, officers, employees nor, to the Company’s or any of the Sellers’ knowledge, any of their agents have made orauthorized any bribe, rebate, payoff, influence payment, kickback or other unlawful payment of funds or received or retained any funds in violation of anyLaw, rule or regulation. Neither the Company, the Sellers, nor, to the Company’s or any of the Sellers’ knowledge, any of their officers, directors or employeesare the subject of any allegation, voluntary disclosure, investigation, prosecution or other enforcement action related to any Anti-Bribery Law. The Companyand each of the Sellers is in compliance with all applicable Anti-Bribery Laws. 4.31. U.S. Sanctions, Export Control and Anti-Money Laundering Laws. Neither the Company, the Sellers, nor any of their directors, officers, employees,nor, to the Company’s or any of the Sellers knowledge, any agent or any other person acting for or on behalf of the Company or any Seller (a) is designatedon any prohibited persons or entities list of any Sanctions Governmental Authority, including, but not limited to, the U.S. Office of Foreign Assets Control(“OFAC”) Specially Designated Nationals and Blocked Persons List, the U.S. Department of Commerce Denied Persons List, the Commerce Entity List, andthe U.S. Department of State Debarred List, (b) participated in any transaction on behalf of the Company or any Seller involving such designated Person, orany country that is subject to economic sanctions administered by OFAC or other Sanctions Governmental Authority, to the extent such a transaction is orwould be prohibited by such sanctions, (c) exported (including, but not limited to, deemed exportation) or re-exported, directly or indirectly, any good,technology or services on behalf of the Company or any Seller in violation of any applicable export control or economic sanctions Laws, rules or regulationsadministered by a Sanctions Governmental Authority, or (d) participated on behalf of the Company or any Seller in any export, re-export or transactionconnected with any purpose prohibited by applicable anti-money laundering, export control or economic sanctions Laws, rules or regulations, includingsupport for international terrorism and nuclear, chemical or biological weapons proliferation. The Company and each of the Sellers is in compliance with allapplicable Anti-Money-Laundering Laws. 4.32. Data Privacy. In connection with its collection, storage, transfer (including, without limitation, any transfer across national borders) and/or use ofany personally identifiable information from any individuals, including, without limitation, any employees, customers, prospective customers, and/or otherthird parties (including legal entities) (collectively, “Personal Information”), the Company is and since its formation has been in compliance in all materialrespects with all applicable Laws in all relevant jurisdictions, the Company’s privacy policies and the requirements of any contract or codes of conduct towhich the Company is a party. The Company has commercially reasonable physical, technical, organizational and administrative security measures and, at itsheadquarters only, a written policy in place to protect all Personal Information collected by it or on its behalf from and against unauthorized access, useand/or disclosure. The Company is and since its formation has been, to the Company’s knowledge, in compliance in all material respects with all Lawsrelating to data loss, theft and breach of security notification obligations. 34Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 4.33. Foreign Exchange Laws. The Company has complied in all material respects with all exchange Laws applicable to its Business and operations,including those issued by the Central Bank of Colombia, the Central Bank of Mexico, the Central Bank of Argentina and the Central Bank of Brazil, and inparticular, without limiting the generality of the foregoing, has complied in all material respects with governing rules for foreign exchange inflow andoutflow, settlement of foreign currency from exports and/or funding from abroad, minimum time and/or averages applicable to repayment of financing fromabroad, payment of imports, rules regarding advance of founds and pre-financing exports, and any other transaction made or needed to be made according toapplicable Laws and has filed on a timely basis with the applicable Governmental Authority all documents required to be filed in compliance with theaforementioned rules and its related regulations, except for instances of noncompliance that, individually or in the aggregate, have not or would notreasonably be expected to be material to the Company, or give rise to claims or to material fines, contingencies, criminal penalties or other material civilpenalties imposed on the Company or the Sellers. All records of foreign investments have been timely registered in accordance with the applicable Laws, andsuch records are correct, accurate, truthful and up-to-date, reflecting the status of the Company’s investments, except for instances of noncompliance that,individually or in the aggregate, have not or would not reasonably be expected to be material to the Company, or give rise to claims or to material fines,contingencies, criminal penalties or other material civil penalties imposed on the Company or the Sellers. 4.34. Environmental and Safety Laws. Except as would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, (a)the Company is in compliance with all Environmental Laws applicable to the conduct of the Business, except for instances of noncompliance that,individually or in the aggregate, have not and would not be reasonably be expected to be material to the Company, or give rise to material fines, criminalpenalties or other material civil penalties imposed on the Company and (b) to the Company’s or the Sellers’ best knowledge, there has been no release orthreatened release of any pollutant, contaminant or toxic or hazardous material, substance or waste or petroleum or any fraction thereof (other than office andcleaning supplies which are safely maintained) (each, a “Hazardous Substance”) on, upon, into or from any site currently or heretofore owned, leased orotherwise used by the Company. The Company has made available to the Purchaser true, correct and complete copies in all material respects of all materialenvironmental records, reports, notifications, certificates of need, permits, pending permit applications, correspondence, engineering studies andenvironmental studies or assessments. 4.35. Customs. The Company has complied in all material respects with all applicable Laws on customs and foreign trade, except for instances ofnoncompliance that, individually or in the aggregate, have not or would not reasonably be expected to be material to the Company, or give rise to claims orto material fines, contingencies, criminal penalties or other material civil penalties imposed on the Company or the Sellers. The Company has submitted ontime and according to applicable Law all customs destinations and they were complete and accurate in all material respects, reflecting all customs duties andresponsibilities required by applicable Laws, except for instances of noncompliance that, individually or in the aggregate, have not and would not bereasonably be expected to be material to the Company, or give rise to material fines, criminal penalties or other material civil penalties imposed on theCompany. Import and exports transactions made by the Company have been and will continue to be made at market prices, and prices have been dulydeclared under applicable customs Laws, except for instances of noncompliance that, individually or in the aggregate, have not and would not be reasonablybe expected to be material to the Company, or give rise to material fines, criminal penalties or other material civil penalties imposed on the Company. Exceptas set forth in Section 4.35 of the Disclosure Schedule, there is no Action against the Company pending, whether administrative or judicial level, in relationto foreign trade issues. 4.36. Brokers and Financial Advisors. The Sellers have retained Bowstring Advisors as financial advisor for the transaction contemplated hereby. Sellersshall be severally (and not jointly) responsible for any payment and fees or commissions to any broker, finder, financial advisor, legal advisor or agentengaged by the Company or a Seller with respect to the transactions contemplated hereby. Neither the Company nor the Purchaser will be responsible for anypayment and fees or commissions to any broker, finder or financial advisor, with respect to the transactions contemplated hereby. 35Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 4.37. Solvency. The Company is not insolvent or unable to pay its debts nor has any insolvency proceedings of any nature, including without limitation,winding up, bankruptcy, receivership, reorganization, composition or arrangement with creditors, voluntary or involuntary, whether or not been initiated bythe Company or threatened against the Company or initiated against the Company nor has the Company appointed, or received or sent any written notice forthe appointment of, a liquidator or provisional liquidator or administrator to the Company or any of its assets. 4.38. Material Adverse Effect. To the best of Sellers’ or the Key Employees’ knowledge, no change, event, occurrence or circumstance has occurred or issubsisting or threatened which, individually or in the aggregate with any other changes, events, occurrences or circumstances, has had, would, or mightreasonably in any such case, constitute a Materially Adverse Effect on the Company, its business, assets or financial position. 4.39. No other Representation or Warranties. No Reliance. Except for the representations and warranties contained in this ARTICLE 4, neither the Sellersnor any other person makes any other express or implied representation or warranty on behalf of Sellers. WITHOUT LIMITATION, NONE OF THE SELLERS, THEIR AFFILIATES, AND THE DIRECTORS, OFFICERS, AGENTS AND OTHERREPRESENTATIVES OF ANY OF THE FOREGOING GIVES ANY REPRESENTATION OR WARRANTY CONCERNING THE SOLVENCY OF ANYCUSTOMER. IT IS UNDERSTOOD THAT ANY ESTIMATES, FORECASTS, PROJECTIONS OR OTHER PREDICTIONS AND ANY OTHERINFORMATION OR MATERIALS THAT HAVE BEEN PROVIDED OR MADE AVAILABLE TO PURCHASER OR ANY OF ITS AFFILIATES OR ITS ORTHEIR RESPECTIVE REPRESENTATIVES (INCLUDING IN ANY PRESENTATION BY A SELLER, ANY OF THEIR AFFILIATES, MANAGEMENT OFTHE BUSINESS, THEIR RESPECTIVE REPRESENTATIVES OR OTHERWISE AND INCLUDING ANY DOCUMENTS OR INFORMATION MADEAVAILABLE IN THE APPLICABLE “DATA ROOM”) ARE NOT, AND SHALL NOT BE DEEMED TO BE, REPRESENTATIONS AND WARRANTIES OFTHE SELLERS OR ANY OF THEIR AFFILIATES OR ANY OF THEIR RESPECTIVE REPRESENTATIVES. THE PURCHASER HEREBY EXPRESSLYDISCLAIMS (AND SHALL CAUSE ITS AFFILIATES, SHAREHOLDERS, AND ANY OTHER INTEREST HOLDERS OF ANY KIND WHATSOEVER TOEXPRESSLY DISCLAIM, AS AND WHEN REQUESTED) ANY RELIANCE WHATSOEVER ON ANY REPRESENTATION, WARRANTY OR OTHERSTATEMENT OF THE SELLERS, THEIR AFFILIATES, OFFICERS, DIRECTORS, AGENTS OR ANY OTHER REPRESENTATIVES, EXCEPT FOR THEREPRESENTATIONS AND WARRANTIES SET FORTH IN ARTICLE 4. 4.40. Full Disclosure. To the best of the Sellers’ or any Key Employee’s knowledge, there are no facts pertaining to the Company or the Sellers, whichcould affect adversely the Company, or its business or which are likely in the future to affect adversely the Company or its business and which have not beendisclosed in this Agreement, the Schedules or the Financial Statements. To the best of the Sellers’ or any Key Employee’s knowledge, no representation,warranty or statement by the Sellers in this Agreement, or in any Schedule, statement or certificate furnished to the Purchaser pursuant to this Agreement,contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements made herein, in light of the circumstancesunder which they were made, not misleading. 36Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. ARTICLE 5.REPRESENTATIONS AND WARRANTIES OF PURCHASER The Purchaser represents and warrants to the Sellers that the following representations are true and complete as of the date hereof and as of the Closing Date. 5.1. Organization of Purchaser. The Purchaser is a corporation duly organized, validly existing and in good standing under the Laws of the jurisdictionwhere it is incorporated and where it operates. 5.2. Authority. The Purchaser has full corporate power and authority to execute and deliver this Agreement and to consummate the transactionscontemplated herein. This Agreement has been duly authorized, executed and delivered by the Purchaser and constitutes a legal, valid and bindingobligation of the Purchaser, enforceable in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium and similar Laws ofgeneral application relating to or affecting creditors’ rights and to general equity principles. 5.3. No Conflict. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated herein by the Purchaserwill violate any provision of the certificate of incorporation or bylaws of the Purchaser. 5.4. Consent and Approvals. Other than as specifically enumerated herein, the execution, delivery and performance of this Agreement by the Purchaser,and the Purchaser’s ownership of the Shares on the date hereof, will not require the Purchaser to obtain any permit, consent, waiver, authorization or approvalof, or make any filing with or give notice to, any person other than those which are not material. 5.5. Legal Proceedings. There are no Actions pending or threatened against Purchaser and any of its Affiliates which, if adversely determined, wouldprohibit the consummation of the transactions contemplated hereby. 5.6. Funding. Purchaser has sufficient funds or immediately available financing to consummate the Transactions and to satisfy their respectiveobligations thereunder, including payment of the Purchase Price and fees and expenses relating to the transactions contemplated by the Agreement and theTransaction Documents. Purchaser acknowledges and agrees that its obligations are not subject to any conditions regarding Purchaser’s or any other person’sability to obtain financing for the consummation of the transactions contemplated by this Agreement. 5.7. No Brokers’ Fees. No broker, investment banker, financial advisor or other person is entitled to any broker’s, finder’s, financial advisor’s or othersimilar fee or commission in connection with any of the Agreement and/or the Transaction Documents or the transactions contemplated thereby based uponarrangements made by or on behalf of Purchaser or any of its Affiliates. 5.8. Foreign Corrupt Practices Act. Neither the Purchaser nor any of its directors, officers, employees, nor, to the Purchaser’s knowledge, any of its agentshave, directly or indirectly, made, offered, promised or authorized any payment or gift of any money or anything of value to or for the benefit of any “foreignofficial” (as such term is defined in the FCPA), foreign political party or official thereof or candidate for foreign political office for the purpose of (a)influencing any official act or decision of such official, party or candidate, (b) inducing such official, party or candidate to use his, her or its influence toaffect any act or decision of a foreign Governmental Body, or (c) securing any improper advantage, in the case of (a), (b) and (c) above, in order to assist thePurchaser in obtaining or retaining business for or with, or directing business to, any person. Neither the Purchaser nor any of its directors, officers, employeesnor, to the Purchaser’s knowledge, any of its agents have made or authorized any bribe, rebate, payoff, influence payment, kickback or other unlawfulpayment of funds or received or retained any funds in violation of any Law, rule or regulation. Neither the Purchaser, any of its officers, directors oremployees are the subject of any allegation, voluntary disclosure, investigation, prosecution or other enforcement action related to any Anti-Bribery Law.The Purchaser is in compliance with all applicable Anti-Bribery Laws. 37Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 5.9. U.S. Sanctions, Export Control and Anti-Money Laundering Laws. Neither the Purchaser nor any of its directors, officers, employees, nor, to thePurchaser’s knowledge, any agent or any other person acting for or on behalf of the Purchaser (a) is designated on any prohibited persons or entities list ofany Sanctions Governmental Authority, including, but not limited to, the U.S. Office of Foreign Assets Control (“OFAC”) Specially Designated Nationalsand Blocked Persons List, the U.S. Department of Commerce Denied Persons List, the Commerce Entity List, and the U.S. Department of State Debarred List,(b) participated in any transaction on behalf of the Purchaser involving such designated Person, or any country that is subject to economic sanctionsadministered by OFAC or other Sanctions Governmental Authority, to the extent such a transaction is or would be prohibited by such sanctions, (c) exported(including, but not limited to, deemed exportation) or re-exported, directly or indirectly, any good, technology or services on behalf of the Purchaser inviolation of any applicable export control or economic sanctions Laws, rules or regulations administered by a Sanctions Governmental Authority, or (d)participated on behalf of the Purchaser in any export, re-export or transaction connected with any purpose prohibited by applicable anti-money laundering,export control or economic sanctions Laws, rules or regulations, including support for international terrorism and nuclear, chemical or biological weaponsproliferation. The Purchaser is in compliance with all applicable Anti-Money-Laundering Laws. 5.10. No Other Representation or Warranties. No Reliance. Except for the representations and warranties contained in this ARTICLE 5, neither Purchasernor any other person makes any other express or implied representation or warranty on behalf of Purchaser. WITHOUT LIMITATION, NONE OF THE PURCHASER, ITS AFFILIATES, AND THE DIRECTORS, OFFICERS, AGENTS AND OTHERREPRESENTATIVES OF ANY OF THE FORGOING GIVES ANY REPRESENTATION OR WARRANTY CONCERNING ANY ESTIMATES, FORECASTS,PROJECTIONS OR OTHER PREDICTIONS AND ANY OTHER INFORMATION OR MATERIALS THAT MAY HAVE BEEN PROVIDED OR MADEAVAILABLE TO ANY OF THE SELLERS OR ANY OF THEIR AFFILIATES OR THEIR RESPECTIVE REPRESENTATIVES (INCLUDING IN ANYPRESENTATION BY THE PURCHASER, ANY OF THEIR AFFILIATES, MANAGEMENT, THEIR RESPECTIVE REPRESENTATIVES OR OTHERWISEAND INCLUDING ANY DOCUMENTS OR INFORMATION MADE AVAILABLE TO ANY OF THE SELLERS) AND ARE NOT, AND SHALL NOT BEDEEMED TO BE, REPRESENTATIONS AND WARRANTIES OF THE PURCHASER OR ANY OF ITS AFFILIATES OR ANY OF THEIR RESPECTIVEREPRESENTATIVES. EACH OF THE SELLERS HEREBY EXPRESSLY DISCLAIMS (AND SHALL CAUSE THEIR AFFILIATES, SHAREHOLDERS, ANDANY OTHER INTEREST HOLDERS OF ANY KIND WHATSOEVER TO EXPRESSLY DISCLAIM, AS AND WHEN REQUESTED) ANY RELIANCEWHATSOEVER ON ANY REPRESENTATION, WARRANTY OR OTHER STATEMENT OF THE PURCHASER, ITS AFFILIATES, OR THEIR OFFICERS,DIRECTORS, AGENTS OR ANY OTHER REPRESENTATIVES, EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES SET FORTH IN ARTICLE5. 38Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. ARTICLE 6.INDEMNIFICATION 6.1. Indemnification by Sellers. 6.1.1. From and after the Closing, and subject to the terms of this ARTICLE 6, each Seller (each, a “Seller Indemnifying Party”), shall severally (but notjointly) indemnify and hold harmless the Purchaser, its Affiliates and their respective successors and assigns, and each of their respective managers, members,directors, officers, employees, shareholders, representatives and agents and other persons who control or are controlled by the Purchaser, as the case may be(each a “Purchaser Indemnified Party”), against and in respect of all Losses (as defined in Section 6.4 below) by reason of any: (a)Breach of any of the representation or warranties of Sellers as set forth in ARTICLE 4; (b)Breach of any of the obligations, covenants or agreements of Sellers under this Agreement; and (c)The matters disclosed in Schedule 6.1.1(c). 6.1.2. The obligation of each of the Sellers to indemnify the Purchaser Indemnified Parties for Losses pursuant to Section 6.1.1, is subject to the followinglimitations: (a)The indemnification of any Losses suffered by any breach or inaccuracy of the Sellers’ Fundamental Representations shall be limited to theamounts received by the Sellers as Purchase Price. Except as otherwise stated in this Agreement, any other representations granted bySellers shall be limited to an amount equivalent to seventeen point five percent (17.5%) of the Purchase Price ($8,497,518.23). For purposesof calculation of the amounts provided herein, withholdings or deductions applied to the Purchase Price as provided in this Agreementshall not be applicable. (b)Sellers shall not be required to provide indemnification to any Purchaser Indemnified Party unless the amount of Losses incurred by thePurchaser Indemnified Parties in respect of all claims against Sellers for indemnification hereunder pursuant to Section 6.1.2(a), exceeds theaggregate amount of $200,000, at which point the full amount of any and all Losses shall be recoverable from the first Dollar. None of the limitations set forth in Section 6.1.2(a) or Section 6.1.2(b) above will apply in case of fraud or willful misconduct and the limitations set forth inSection 6.1.2(b) will not aply in the case of the claims listed in Schedule 6.1.1(c), which are assumed and fully indemnifiable by the Sellers. 6.2. Indemnification by Purchaser. 6.2.1. From and after the Closing, and subject to the terms of this ARTICLE 6, the Purchaser (the “Purchaser Indemnifying Party” and together withSellers’ Indemnifying Party, the “Indemnifying Parties”, and each, an “Indemnifying Party”), shall indemnify and hold harmless the Sellers, their Affiliatesand their respective successors and assigns, and each of their respective managers, members, directors, officers, employees, shareholders, representatives andagents and other persons who control or are controlled by the Sellers, as the case may be (each a “Sellers Indemnified Party” and together with the PurchaserIndemnified Party, the “Indemnified Parties”, and each, an “Indemnified Party”), against and in respect of all Losses, by reason of any: (a)Breach of any of the representation or warranties of Purchaser as set forth in ARTICLE 5; and (b)Breach of any of the covenants, obligations or agreements of Purchaser under this Agreement. 39Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 6.2.2. The obligation of each of the Purchaser to indemnify the Sellers Indemnified Parties for Losses pursuant to Section 6.2.1, is subject to the followinglimitations: (a)The indemnification of any Losses suffered by any breach or inaccuracy of the Purchaser’s Fundamental Representations shall be limited tothe amounts received by the Sellers as Purchase Price. Except as otherwise stated in this Agreement, any other representations granted bythe Purchaser shall be limited to an amount equivalent to seventeen point five percent (17.5%) of the amounts paid as Purchase Price (i.e.$8,497,518.23). For purposes of calculation of the amounts provided herein, withholdings or deductions applied to the Purchase Price asprovided in this Agreement shall not be applicable. (b)Purchaser shall not be required to provide indemnification to any Seller Indemnified Party unless the amount of Losses incurred by theSeller Indemnified Parties in respect of all claims against Purchaser for indemnification hereunder pursuant to Section 6.2.1, exceeds theaggregate amount of $200,000, at which point the full amount of any and all Losses shall be recoverable from the first Dollar. None of the limitations set forth in Section 6.2.2(a) or Section 6.2.2(b) above will apply in case of fraud or willful misconduct. 6.3. Termination of Indemnification Obligations. The indemnification obligations of the Indemnifying Parties under this Agreement shall terminatetwenty four (24) months as from the Closing Date except (a) as to matters as to which the Indemnified Party has made a claim for indemnification on or priorto such date specifically addressing a Loss, as stipulated in this Agreement, (b) as to matters as to which the Indemnified Party has suffered Losses arising outof the Indemnifying Party’s fraud or willful misconduct, (c) in the case of the indemnity obligations of the Indemnifying Party, as applicable with respect toany claim pertaining to a misrepresentation, inaccuracy or breach of warranty under any of the representations and warranties contained in Sections 4.1, 4.2,4.3, 4.4, 4.5, 4.6, 4.7, 4.23, 4.30, 4.31 (the “Sellers’ Fundamental Representations”), 5.1, 5.2, 5.3, 5.4, 5.8, 5.9 (the “Purchaser’s FundamentalRepresentations”), and a claim for breach of a covenant contained in ARTICLE 7, and (d) the representations and warranties contained in Sections 4.9 and4.21. The obligations referred to in: 6.3.1. the preceding clause (a) shall survive the expiration of such period until such claims are finally resolved and any obligations with respect thereto arefully satisfied; 6.3.2. the preceding clauses (b) and (c) shall terminate upon the expiration of the relevant statutory period of limitation, except as to matters as to whichany Indemnified Party has made a claim for indemnification on or prior to such date, in which case the right to indemnification with respect thereto shallsurvive the expiration of any such period until such claim is finally resolved and any obligations with respect thereto are fully satisfied; 6.3.3 the preceding clause (d) shall terminate upon the sixth anniversary of the Closing Date and upon the third anniversary of the Closing Date,respectively. Any claims made after the aforementioned survival periods shall be forever barred and no Party shall have any liability hereunder in respect thereof;provided, that if a valid claim notice for indemnification has been given hereunder prior to expiration of the applicable survival period, then the claims forsuch Loss alleged to have been incurred in such claim notice (and only such claim and for such Loss alleged to have been suffered) if then unresolved, willnot be extinguished by the passage of the applicable survival period. 40Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. For the avoidance of doubt, survival periods are not mutually exclusive with respect to any facts, events or conditions giving rise to an indemnification rightand any claim of an Indemnified Party that is eligible for more than one survival period pursuant to Section 6.3 shall be subject to the longest survival periodthat is relevant to such claim. 6.4. Grounds for Asserting Claims. Each Seller Indemnifying Party hereby undertakes severally (but not jointly) and the Purchaser Indemnifying Partyhereby undertakes the obligation to indemnify the applicable Indemnified Parties against and with respect to any and all actions, claims, losses, charges,damages, awards, liabilities, settlements, payments, penalties and fees, costs and expenses (including reasonable attorneys’ fees and expenses), providedhowever, that losses shall not include special, indirect, consequential, punitive or other special damages, including loss of profits, loss of revenue or income,cost of capital, or loss of business reputation or opportunity (hereinafter, “Losses”) suffered or incurred by any applicable Indemnified Party as a result of anydirect Loss or an action, suit, proceeding, determination or demand (whether judicial or not) instituted against the Indemnified Party including, withoutlimitation, (a) any action or claim of any nature brought or otherwise initiated by any of the Indemnifying Parties or (b) by a third party or any GovernmentalBody in connection with, arising out of or in any way related to any breach or misstatement of any representation and warranty or other obligation orstatement of the the Parties under this Agreement and the Schedules herein. 6.5. Remedy of Set-Off. In addition to any remedies available to the Purchaser under applicable Law and under this Agreement, the Purchaser shall beentitled to deduct the Losses suffered by it or any other amount owed to it under this Agreement from any outstanding payment that may be payable by thePurchaser or the Company to such Seller, under this Agreement or any other ancillary document in the event the Escrow Amount is insufficient to cover suchLosses (and only in excess of any deficiency) (“Set-Off Rights”). For the avoidance of doubt deductions shall be made to the corresponding Seller severallybut not jointly. For the avoidance of doubt, any portion of any payments owed by the Purchaser to any of the Sellers that is set off or withheld pursuant to the exercise of SetOff Rights shall not in any way be deemed to be a defaulted or otherwise unpaid amount pursuant to Sections 1.2, 1.3, 1.4, and 2.2, and shall instead bedeemed to have been paid in full by the Purchaser to the Sellers in accordance with Sections 1.2, 1.3, 1.4, and 2.2. 6.6. Process of Claiming Indemnification. 6.6.1. Notice of Third-Party Claims. If any of the Indemnified Parties receives notice of the commencement or assertion of any claim by a third party (a“Third-Party Claim”), the Indemnified Party shall give to the Indemnifying Party (the “Indemnifier”) prompt and detailed notice thereof, but in any eventno later than ten (10) Business Days after receipt of such notice of such Third-Party Claim or within such shorter period of time as may reasonably be requiredto permit the Indemnifier to respond to any such claim; provided, however, that the failure to provide such notice or any delay in providing such notice shallnot release any Indemnifying Party from any of their obligations under this ARTICLE 6 except to the extent the Indemnifying Party is materially prejudicedby such failure or delay (and then only to the extent of such prejudice). Such notice to the Indemnifier shall describe the Third-Party Claim in reasonabledetail and, as the case may be, shall have copy of the documentation received therewith enclosed. 41Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 6.6.2. If the Indemnifier disputes such Third Party Claim or does not so respond to the Indemnified Party within a ten (10) calendar day period or withinsuch shorter period of time as may reasonably be required to permit the Indemnifier to respond to any such claim, the Indemnifier and the Indemnified Partyshall settle such dispute in accordance with Section 10.12 hereto. 6.6.3. Defense of Third-Party Claims. The Indemnifier may participate in or assume the defense of any Third-Party Claim by giving prompt notice to thateffect to the Indemnified Party but in any event no later than twenty (20) Business Days or within such shorter period of time as may reasonably be requiredto permit the Indemnifier to respond to any such claim, after receiving notice of that Third-Party Claim (the “Notice Period”), so long as the Indemnifieracknowledges in writing its obligation to indemnify the Indemnified Party for Losses related to such Third Party Claim. Such notice by the Indemnified Partyshall describe the Third-Party Claim in reasonable detail and shall include copies of all material written evidence thereof and shall indicate the estimatedamount, if reasonably practicable, of the Loss that has been or may be sustained by the Indemnified Party. The Indemnifier agrees to pay all of its ownexpenses of participating in or assuming such defense, provided, that counsel for the Indemnifier who shall conduct the defense of such Third Party Claimshall be a reasonably reputable counsel and if the Indemnifier elects to undertake any such defense against a Third-Party Claim, the Indemnified Party mayparticipate in such defense at its own expense, subject to the Indemnifying Party’s right to control the defense thereof. The Indemnifier shall not enter intoany agreement or settlement of any Third-Party Claim without obtaining the prior written consent of the Indemnified Party, which shall not be unreasonablywithheld, conditioned or delayed. If the Indemnified Party has not received notice within the Notice Period that the Indemnifier has elected to assume thedefense of such Third-Party Claim, the Indemnified Party may, assume such defense, assisted by counsel of its own election and if decides to settle orcompromise the Third-Party Claim, it must obtain the prior written consent of the Indemnifying Party, which shall not be unreasonably withheld, conditionedor delayed. In any such case, the Indemnifier shall be liable for all reasonable costs and expenses paid or incurred in connection therewith and any Losssuffered or incurred by the Indemnified Party with respect to such Third-Party Claim. Notwithstanding the foregoing, if an Indemnified Party determines ingood faith that there is a reasonable probability that a Third Party Claim may adversely affect it or any Affiliate, the Indemnified Party may, by notice to theIndemnifier, assume the right to defend such Third Party Claim; provided that the Indemnifier shall be entitled to continue participating in the defense withits own counsel, and no settlement whereby the Indemnifier may be obliged to indemnify shall be made, without the prior written consent of the Indemnifier. 6.6.4. Assistance for Third-Party Claims. The Indemnifier and the Indemnified Party will use commercially reasonable efforts to cooperate with each otherin all reasonable respects in connection with the defense of any Third Party Claim, including making available to the Party who is undertaking andcontrolling the defense of any Third-Party Claim (the “Defending Party”): (a)those employees and agents whose assistance, testimony or presence is necessary or desirable to assist the Defending Party in evaluatingand in defending any Third-Party Claim; and (b)all documents, records and other materials in the possession of such Party reasonably required by the Defending Party for its use indefending any Third-Party Claim. 6.6.5. Designation of counsel. The Parties agree that, provided that the Indemnifier elects to assume the defense of any Third Party as provided for underthis Section 6.6, it shall be entitled to elect counsel to defend against the Third-Party Claim. 42Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 6.6.6. Direct Claims. Any claim among the Parties (a “Direct Claim” and jointly with the Third-Party Claims, the “Claims”) shall be asserted by giving theIndenifying Party prompt and detailed written notice, including a description, as accurate as practicable, of the amount, cause and circumstances of the Lossrelated to the Direct Claim, but in any event not later than fifteen (15) Business Days after the Indemnified Party becomes aware of such Direct Claim;provided, however, that the failure to provide such notice or any delay in providing such notice shall not release any Indemnifying Party from any of theirobligations under this ARTICLE 6 except to the extent the Indemnifying Party is materially prejudiced by such failure or delay (and then only to the extentof such prejudice). The Indemnifier shall then have a period of thirty (30) Business Days within which to respond in writing to such Direct Claim. If theIndemnifier accepts in writing full responsibility for the Direct Claim described in such notice, the Indemnifier shall pay upon demand to the IndemnifiedParty the amount of Losses relating to such Direct Claim as the Parties hereto agree. If the Indemnifier disputes such Direct Claim or does not so respondwithin such thirty (30) day period, the Indemnifier and the Indemnified Party agree to proceed in good faith to negotiate a resolution of such dispute inaccordance with Section 10.12 hereto. 6.7. Indemnity Payments. 6.7.1. In calculating the amount of any Losses, any payment made pursuant to this Article will be treated as an adjustment to the Purchase Price for all Taxpurposes unless otherwise required by applicable Laws. The amount of any Losses incurred in a currency other than Dollars will be converted into Dollars atthe official exchange rate published in either (a) Diario Oficial de la Federacion (National Gazzette) with respect to Mexican pesos, (b) the SuperintendenciaFinanciera de Colombia with respect to Colombian pesos, (c) by the Superintendencia de Banca, Seguros y AFP de la República del Perú with respect toPeruvian soles, (d) in the official web page of the Central Bank of Brazil with respect to Brazilian reais, and (d) Communication “A” 3500, as amended orsupplemented, issued by the Central Bank of the Republic of Argentina with respect to Argentine pesos, for the closing of transactions for the Business Dayimmediately prior to the date such Losses are actually incurred. 6.7.2. Notwithstanding Purchaser’s rights pursuant to Section 6.5, the Indemnifier will pay all amounts payable pursuant to this Article, (A) to the extentthe Indemnifier are Sellers, first, from the Escrow Fund and (B) second, to the extent such Losses exceed the aggregate amounts referenced in clause (A) aboveby the Indemnifier and, if the Indemnifier are Sellers, severally but not jointly, by wire transfer of immediately available cash funds in Dollars promptlyfollowing receipt from an Indemnified Party of a Claim, unless the Indemnifier in good faith reasonably disputes the Losses, in which event it will promptlynotify the Indemnified Party, and in any event, the Indemnifier will pay to the Indemnified Party, by wire transfer in immediately available cash funds in U.S.dollars, the amount of any Losses for which it is liable hereunder no later than three (3) Business Days following any Determination of such Losses and theIndemnifier’s liability therefor. A “Determination” will exist when (A) the parties to the dispute have entered into a legally binding agreement with respectto the dispute, (B) a court of competent jurisdiction will have entered a final and non-appealable order or judgment, or (C) an arbitration or like panel willhave rendered a final and non-appealable determination with respect to disputes the parties have agreed to submit thereto. 6.7.3. The Indemnifier will only be discharged of its payment obligation by paying the full payment amount in Dollars, and not by conversion of anypayment amounts into other currencies and/or by means of a local payment. To the fullest extent permissible under applicable law, the Parties herebyirrevocably waive and renounce to judicially invoke and/or in any way enforce any right that it may currently have or that it will have pursuant to anyapplicable Law to make any payment of the payment obligations and/or any other amount owed to the Indemnified Party under this Agreement in itsequivalent amount in local currency. 43Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 6.8. Limitations of Liability. 6.8.1. Losses Net of Insurance and Recovery. In calculating amounts payable to an Indemnified Party, the amount of any indemnified Losses shall becomputed net of (i) payments actually recovered by the Indemnified Party under any insurance policy, with respect to such Losses, less any increase in thecorresponding premium and (ii) any prior recovery by the Indemnified Party from any third party with respect to such Losses. If an Indemnified Party recoversan amount from an insurance policy or any other third party in respect of Losses that is the subject of indemnification hereunder after all or a portion of suchLosses has been paid by an Indemnifier pursuant to this Article, the Indemnified Party will promptly remit to the Indemnifier the excess (if any) of (i) theamount paid by the Indemnifier in respect of such Losses, plus the amount received from the insurance policy or third party in respect thereof, less (ii) the fullamount of Losses. 6.8.2. No Duplicative Recovery. Where substantially the same events or circumstances qualify under one or more single or multiple claims or under one ormore provisions of this Agreement, the Indemnified Party seeking indemnification shall not be entitled to double or duplicative recovery of Losses arisingout of such events or circumstances, or to calculate its Losses by duplicating or double counting its Losses arising out of such events or circumstances. Forthe avoidance of doubt, if the Indemnified Party is entitled to bring the claim under more than one provision of this Agreement, such Indemnified Party maychoose at its sole and absolute discretion the provision or provisions under which it seeks indemnification. 6.8.3. Subrogation. To the extent that an Indemnifying Party makes any payment pursuant to this ARTICLE 6 in respect of Losses for which anyIndemnified Party has a right to recover against a Third Party (including an insurance company), such Indemnifying Party shall be subrogated to the right ofsuch Indemnified Party to seek and obtain recovery from such Third Party, except, that if such Indemnifying Party shall be prohibited from such subrogation,such Indemnified Party shall seek recovery from such Third Party on such Indemnifying Party’s behalf and pay any such recovery to such Indemnifying Party. 6.8.4. Fraud; Willful Misconduct. Notwithstanding any other provisions of this Agreement, in no event shall any Indemnified Party be entitled toindemnification pursuant to this ARTICLE 6 to the extent any Losses were solely attributable to such Indemnified Party’s bad faith, willful misconduct orintentional fraud. 6.8.5. Mitigation. Each of the Sellers Indemnified Parties and Purchaser Indemnified Parties shall use its commercially reasonable efforts to take or cause tobe taken all reasonable steps to mitigate its Losses upon and after becoming aware of any event that could reasonably be expected to give rise to Losses thatmay be indemnifiable under this ARTICLE 6 to the extent required by applicable Law. 6.8.6. Exclusive Remedy. The Parties agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance withthe terms hereof and that the parties shall be entitled to specific performance of the terms hereof, in addition to any other remedy to which they are entitledaccording to this Agreement. Except in the case of intentional fraud or willful misconduct committed with the knowledge of any of the Parties (as to whichnone of the limitations set forth in this ARTICLE 6 will apply), from and after the Closing, the rights of any Indemnified Party under this ARTICLE 6(including, any right to specific performance) will be the sole and exclusive remedy of such Indemnified Party with respect to claims for breach or inaccuracyof any of the representations, or warranties, or breach of any of the covenants and agreements, in each case, that are indemnifiable under this ARTICLE 6. 44Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. ARTICLE 7.COVENANTS 7.1. Access to Information. Subject to applicable Law, during the period from the date hereof and continuing until the earlier of the termination of thisAgreement or the Closing Date, the Purchaser shall be entitled, through its employees and representatives, to enter upon and make such investigation of theassets, properties, business and operations of the Company and its Subsidiaries and such examination of the books and records, financial condition andoperations of the Company and its Subsidiaries as such Purchaser may desire (in a manner so as to not interfere with the normal business operations of theCompany and its Subsidiaries); provided, however, such Purchaser may not communicate with any customers, vendors, suppliers or creditors of the Companyand its Subsidiaries with respect to the Business without the prior written consent of the Company. Any such investigation and examination shall beconducted during normal business hours. Notwithstanding the foregoing, the Company may withhold any document (or portions thereof) or information (a)that is subject to the terms of a non-disclosure agreement with a third party, (b) that constitutes privileged attorney-client communications or attorney workproduct and the transfer of which, or the provision of access to which, as reasonably determined by the Company’s counsel, constitutes a waiver of any suchprivilege, (c) if the provision of access to such document (or portion thereof) or information, as determined by the Company’s counsel, would reasonably beexpected to conflict with applicable Laws or (d) relating to the sale process regarding the Shares or bids received from others in connection with any suchprocess. 7.2. Conduct of Business. 7.2.1. During the period from the date hereof and continuing until the earlier of the termination of this Agreement or the Closing Date, the Sellers shallcause the Company and its Subsidiaries to carry on the business of the Company and its business organization in all material respects in the ordinary courseconsistent with past practice. 7.2.2. Except as expressly provided herein, set forth in Schedule 7.2.2, consented to in writing by the Purchaser (which consent shall not be unreasonablywithheld or delayed) or required by Law, from the date hereof and continuing until the earlier of the termination of this Agreement or the Closing Date, theSellers shall, and shall cause the Company to conduct the business of the Company in the ordinary course of business consistent with past practice. Withoutlimiting the foregoing, from the date hereof and continuing until the earlier of the termination of this Agreement or the Closing Date, the Sellers shall not,and shall cause the Company and its Subsidiaries not to: (a)transfer, issue, grant, deliver or sell or authorize or propose the issuance, delivery or sale of, any ordinary stock or preferred stock orsecurities convertible into, or subscriptions, rights, warrants or options to acquire, or other agreements or commitments of any characterobligating it to issue any such ordinary stock or preferred stock or other convertible securities or any stock or rights pursuant to phantomstock agreements or stock option agreements, other than those transfers permitted pursuant to Section 3.2.4; (b)effect any recapitalization, reclassification or like change in its capitalization; (c)amend its certificate of incorporation or by-Laws or other organizational documents; (d)enter into or agree to enter into any merger or consolidation with any corporation or other entity, or acquire securities owned by any othercompany or individual; 45Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. (e)(A) increase the annual level of compensation of any of its directors or executive officers, (B) grant any unusual or extraordinary bonus,benefit or other direct or indirect compensation to any of its directors or executive officers, (C) increase the coverage or benefits availableunder any (or create any new) severance pay, termination pay, vacation pay, company awards, salary continuation for disability, sick leave,deferred compensation, bonus or other incentive compensation, insurance, pension, or other employee benefit plant or arrangement madeto, for, or with any of its directors or executive officers of otherwise modify or amend or terminate any such plan or arrangement or (D) enterinto any employment, deferred compensation, severance, consulting, non-competition or similar agreement (or amend any such agreement)involving any of its directors or executive officers, except, in each case as required by applicable Law from time to time in effect or by theterms of any employee plan; (f)acquire any properties, rights or other assets, in each case, other than in the ordinary course of business, or sell, assign, license, transfer,convey, lease or otherwise dispose of any of its material properties or rights; (g)make, change or revoke any Tax election, settle or compromise any Tax claim or liability, incur any liability for Taxes other than in theordinary course of business consistent with past practice, change (or make a request to any Governmental Body to change) any aspect of itsmethod of accounting for Tax purposes, or waive or extend any statute of limitations in respect of Taxes or period within which anassessment or reassessment of Taxes may be issued; (h)increase current indebtedness of the Company and its Subsidiaries in an amount higher than $250,000 in the aggregate; (i)incur in breach of the agreements entered into by and between the Company and certain key vendors, as disclosed in Schedule 7.2.2(i), thatlead or could have led to the termination of the distribution and marketing rights granted to the Company pursuant to such agreements; or (j)agree, in writing or otherwise, to take any of the foregoing actions, or take any action or agree, in writing or otherwise, to take any actionwhich would in any material respect impede or delay the ability of the Parties to satisfy any of the conditions set forth in this Agreement. 7.3. Exclusivity. During the period from the date hereof and continuing until the earlier of the termination of this Agreement or the Closing Date, withoutthe prior approval of the Purchasers, none of the Company or any of its shareholders, directors, officers, employees, agents or representatives will, directly orindirectly, solicit, facilitate or encourage proposals from or enter into or continue discussions or negotiations with or furnish any nonpublic information toany other Person regarding the possible sale of the Shares or other capital stock of the Company (including any security that is convertible into capital stockof the Company), a material portion of the Company’s assets or any merger or similar transaction or any financing transaction (an “AlternativeTransaction”). Upon the execution and delivery of this Agreement, to the extent it has not already done so, the Company will, and will cause any of itsSubsidiaries to, immediately terminate any ongoing discussions with any other third parties regarding a possible Alternative Transaction and request thereturn of any confidential information provided to third parties in connection with a potential Alternative Transaction. The Company will notify thePurchasers promptly of any proposals by third parties received by the Company or any of its directors, officers, employees, agents or representatives after thedate hereof with respect to any potential Alternative Transaction (including the terms of such proposal and any written correspondence related thereto). TheCompany will, and will cause its Subsidiaries to, deal exclusively with the Purchasers notwithstanding any such third party proposals. 46Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 7.4. Publicity. The Company, the Selling Shareholders and the Purchasers agree that no public release or announcement concerning the Transactionsshall be issued without the prior consent of the other Party, except where such announcement is required under applicable Law or the rules of any stockexchange or trading system. Notwithstanding the preceding sentence, upon the Closing of the Transactions, the Company and the Purchasers may issue apress release in form and substance reasonably satisfactory to the Company and the Purchasers. 7.5. Further Assurances. Subject to the terms and conditions herein provided, the Parties shall do or cause to be done all such commercially reasonableacts and things as may be necessary, proper or advisable, consistent with all applicable Laws, to consummate and make effective the Transactions, as soon asreasonably practicable. Without limiting the foregoing, each Party shall use its commercially reasonable efforts, and the other Parties shall cooperate withsuch efforts, to execute and deliver, or cause to be executed and delivered, such further documents and instruments, in each case as may be necessary orproper in the reasonable judgment of any Party to carry out the provisions and purposes of this Agreement. 7.6. Non-competition. Each Group B Seller acknowledges and agrees that such Group B Seller has had access to or received and may continue to haveaccess to valuable confidential information and trade secrets of the Company and exposure to key suppliers, service providers, and clients or customers of theCompany. Accordingly, because of such Group B Seller’s and/or the relevant Key Employee’s access to, and knowledge of, the Company’s confidentialinformation and trade secrets and key suppliers, service providers and clients or customers, as well as Group B Seller’s or Key Employee’s extraordinaryposition within the Company, such Group B Seller or Key Employee would be in a unique position to divert business from the Company and to commitirreparable damage to the Company were such Group B Seller or Key Employee be allowed to compete with the Company or to commit any of the other actsprohibited below. Each Group B Seller or Key Employee therefore recognizes that the assumption of non-competition and non-solicitation obligations bysuch Group B Seller is a key consideration and an essential condition for the Purchaser’s decision to enter into this Agreement and pay the Purchase Price,and is necessary to protect the legitimate interests of the Company and in order to protect the legal rights and interests of all Parties under this Agreement.Each Group B Seller acknowledges and agrees that the limitations of time, geography, and scope of activity set forth in this ARTICLE 7 are reasonablebecause, among other things, the Company is engaged in a highly competitive industry; the Group B Sellers and/or the Key Employees have had and maycontinue to have access to the trade secrets and know-how of the Company, including without limitation the plans and strategy (and in particular, thecompetitive strategy) of the Company; and these limitations are necessary to protect the trade secrets, Confidential Information, and goodwill of theCompany. Accordingly, each Group B Seller and/or Key Employee hereby undertakes, for the period of (i) thirty-six (36) months from the Closing Date; or(ii) eighteen (18) months of termination of employment with the Company of such Group B Seller or applicable Key Employee; whichever occurs last and upto a maximum term of five years as from the Closing Date, the obligation not to, directly or indirectly, on his own account, jointly with or on behalf of anyother person or corporation as an independent contractor, partner, joint venture partner, or agent, or as principal, or otherwise on any account or pretense or asa trustee, officer, director, manager, shareholder, employee, advisor, or agent of any corporation, trust or other business organization or commercial entity,compete with the Company, Purchaser and/or its Affiliates, in any state or country, territory or jurisdiction, in activities defined for the purposes of thisSection 7.6 as follows: the business of providing outsourced service of designing, implementing third-party software solutions, reselling of cloud technologylicenses, developing and implementing custom software applications, digital product, websites, technologies, strategies and consulting for the purpose ofdigital transformation, as of the date of this Agreement (the “Activities”), being therefore the Group B Sellers prevented from doing the aforementioned(“Non-Competition Obligation”) unless it is authorized in writing by the Purchaser. 47Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. The provisions of this Section 7.6 shall remain in force for a maximum term of until the fifth anniversary of the Closing Date, at which point the non-competerestrictions included in each of the Non-Disclosure Agreements executed by each Key Employee shall apply. 7.6.1. Except for the participation in Novimark, which shall not be increased and which is a company involved in the activites described in Schedule 7.6.1,holding any equity interest (other than minority interest representing more than two percent (2%)) in companies whose activities are the same as or similar toor are directly or indirectly competing with the Activities; 7.6.2. Rendering consultancy, management or other similar services in connection to the Activities to third parties (including but not limited to the pastand / or current clients of the Company); 7.6.3. Becoming a director, officer, trustee, agent, advisor, manager, an employee services renderer or consultant or contractor of any company or businessorganization or commercial entity which activities are the same or similar to or are directly or indirectly competing with the Activities; or 7.6.4. Commencing, owning, operating, managing, joining, establishing, engaging in, assisting, having an interest in, controlling, or carrying on, orattempting to or agreeing to commence, own, operate, manage, join, establish, engage in, assist, have an interest in, control, or carry on an Activity which isthe same as or similar to the Activities, in any manner other than holding any minority interest representing no more than 5% (five percent) in companieswhose activities are the same as or similar to or are directly or indirectly competing with the Activities as contemplated in Section 7.6 above. 7.7. Non-Solicitation. Each Group B Seller hereby undertakes, (i) for the period of thirty-six (36) months from the Closing Date or (ii) eighteen (18)months of termination of employment with the Company of such Seller; whichever occurs last, shall not, whether directly or indirectly, by themselves or inassociation with or through any person, in any manner whatsoever, to (i) contract, subcontract or enter into a joint venture with any of the employees ormanagers of the Company, Globant or any of Globant’s Affiliates among themselves and/or any of them with any of this family members; (ii) tender for,canvass or solicit or attempt to tender for, canvass or solicit the business of or employment of any client or customer of the Company in connection with theActivities; (iii) induce or attempt to induce any client, customer or supplier of the Company to cease to deal with the Company or otherwise interfere with therelationship between such client, customer or supplier and the Company; or (iv) perform any actions towards co-opting the clients of the Company and/orinterrupting any transaction in progress among the Company and such clients (with regards to the Company’s Activities); or (v) assist, influence, encourageor induce such action in any manner whatsoever (the “Non-Solicitation Obligation”). 7.8. Antitrust Filing. If applicable, the Parties agree to comply with any other pre or post Closing mandatory merger control notification or requests ofapproval before the relevant Antitrust Authorities in any jurisdiction where the Company has made material sales. 7.9. Cooperation. The Sellers shall grant to the Purchaser (or its designees) access, after Closing, at all reasonable times to all of the documents,information, books, data files, and records relating to the Company or the Transaction within the possession of the Sellers that are not transferred to thePurchaser pursuant to ARTICLE 2, as applicable, and shall afford the Purchaser (or its designees) the right to take extracts therefrom and to make copiesthereof, to the extent reasonably necessary to permit the Purchaser (or its designees) to prepare any document that must be filed with any Governmental Body,respond to audits and investigations, prosecute protests, appeals and refund claims and to conduct negotiations with taxing authorities or with third parties.The Purchaser shall grant or cause the Company to grant to the Sellers (or their designees) access at all reasonable times to all of the information, books andrecords relating to the Company within the possession of the Purchaser or the Company, and shall afford the Sellers (or their designees) the right to takeextracts therefrom and to make copies thereof, in each case to the extent reasonably necessary to permit the Sellers (or their designees) to prepare responses,respond to audits and investigations, prosecute protests, appeals and claims and to conduct negotiations with any Governmental Body or with third parties. 48Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. ARTICLE 8.SELLERS’ TAXES; COOPERATION 8.1. Allocation. Each of the Sellers shall be responsible for Taxes and associated expenses allocated to such Seller and will file all Tax Returns requiredto be filed to report Taxes imposed on or with respect to the Transaction. Each Seller will be solely liable for and will pay all such Taxes, and will indemnify,defend, and hold harmless Purchaser from and against any and all liability for the payment of such Taxes and the filing of such Tax returns. 8.2. Pre-Closing Taxable Periods. With respect to any income Tax Return covering a taxable period ending on or before the Closing Date (a “Pre-Closing Taxable Period”) that is required to be filed after the Closing Date with respect to the Company (a) the Purchaser shall cause the Company toprepare such Tax Return as otherwise required by applicable Law, and shall deliver such Tax Return to the Sellers for their review and comments at leastthirty (30) days prior to the due date (including extensions) for filing such Tax Return, (b) the Purchaser shall consider in good faith any reasonablecomments provided in writing by the Sellers within ten (10) days of receipt of the draft Tax Return, and (c) the Purchaser shall cause such Tax Return to beduly and timely filed with the appropriate taxing authority and shall pay, or cause to be paid, all Taxes shown as due and payable on such Tax Return or, asapplicable, his or its allocable share of such Taxes. 8.3. Straddle Taxable Periods. With respect to any Tax Return covering a taxable period beginning on or before the Closing Date and ending after theClosing Date (a “Straddle Taxable Period”) that is required to be filed after the Closing Date with respect to the Company, (a) the Purchaser shall cause theCompany to prepare such Tax Return as required by applicable Law, and shall deliver a draft of such Tax Return to the Sellers, for their review and approvalat least fifteen (15) days prior to the due date (including extensions) for filing such Tax Return, (b) the Parties shall cooperate and consult with each other inorder to finalize such Tax Return, and (c) thereafter, subject to the Sellers’ payment to the Purchaser of any portion of any Taxes shown as due and payable onsuch Tax Return with respect to the portion of the period that ends on the Closing Date that was not reflected as a liability in the calculation of Net WorkingCapital and/or in the Financial Statements, the Purchaser shall cause such Tax Return to be executed and duly and timely filed with the appropriate taxingauthority and shall pay all Taxes shown as due and payable on such Tax Return. Tax liability for a Straddle Taxable Period shall be apportioned between theportion of the taxable period ending on the Closing Date and the portion of the taxable period beginning after the Closing Date. Such apportionments shallbe made on a per diem basis for (i) income and turn-over Taxes and similar Taxesand (ii) exemptions, allowances or deductions that are calculated on anannual basis (such as the deduction for depreciation). Such apportionment shall be made for all other Taxes on the basis of a “closing of the books” as of theend of the Closing Date. 8.4. Cooperation. The Sellers shall grant to the Purchaser (or its designees) access at all reasonable times to all of the documents, information, books, datafiles, and records relating to the Company within the possession of the Sellers that are not transferred to the Purchaser pursuant to ARTICLE 2, as applicable,and shall afford the Purchaser (or its designees) the right to take extracts therefrom and to make copies thereof, to the extent reasonably necessary to permitthe Purchaser (or its designees) to prepare Tax Returns, respond to Tax audits and investigations, prosecute Tax protests, appeals and refund claims and toconduct negotiations with taxing authorities. The Purchaser shall grant or cause the Company to grant to the Sellers (or their designees) access at allreasonable times to all of the information, books and records relating to the Company for taxable periods and portions of taxable periods through the ClosingDate within the possession of the Purchaser or the Company, and shall afford the Sellers (or their designees) the right to take extracts therefrom and to makecopies thereof, in each case to the extent reasonably necessary to permit the Sellers (or their designees) to prepare financial statements, Tax Returns, respondto Tax audits and investigations, prosecute Tax protests, appeals and refund claims and to conduct negotiations with taxing authorities. After the ClosingDate, the Parties will preserve all information, records or documents in their respective possessions relating to liabilities for Taxes of the Company for Pre-Closing Taxable Periods or Straddle Taxable Periods until six (6) months after the expiration of any applicable statute of limitations (including extensionsthereof) with respect to the assessment of such Taxes. 49Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. ARTICLE 9.TERMINATION 9.1. Termination. This Agreement may be terminated at any time prior to the Closing: 9.1.1. by the mutual written consent of the Sellers and Purchaser; 9.1.2. by Purchaser by written notice to the Sellers if Purchaser is not then in material breach of any provision of this Agreement and there has been amaterial breach, inaccuracy in or failure to perform any representation, warranty, covenant or agreement made by Sellers pursuant to this Agreement thatwould give rise to the failure of any of the conditions specified in ARTICLE 3 and such breach, inaccuracy or failure has not been cured by Sellers withinfifteen (15) days of the receipt of written notice of such breach from Purchaser; 9.1.3. by Sellers by written notice to Purchaser if Sellers are not then in material breach of any provision of this Agreement and there has been a materialbreach, inaccuracy in or failure to perform any representation, warranty, covenant or agreement made by Purchaser pursuant to this Agreement that wouldgive rise to the failure of any of the conditions specified in ARTICLE 3 and such breach, inaccuracy or failure has not been cured by Purchaser within fifteen(15) days of Purchaser’s receipt of written notice of such breach from the Sellers; or 9.1.4. by Purchaser or Sellers in the event that (i) there shall be any Law that makes consummation of the transactions contemplated by this Agreementillegal or otherwise prohibited or (ii) any Governmental Authority shall have issued a Governmental Order restraining or enjoining the transactionscontemplated by this Agreement, and such Governmental Order shall have become final and non-appealable. 9.2. Effect of Termination. In the event of the termination of this Agreement in accordance with this ARTICLE 9 or if the Closing does not occur byMarch 1, 2019 (unless extended by the Purchaser to April 1, 2019), this Agreement shall forthwith become void and there shall be no liability on the part ofany Party hereto except: 9.2.1. as set forth in this ARTICLE 9, and ARTICLE 10 hereof, as applicable; 9.2.2. the Non-Disclosure Agreement between the Sellers and Purchaser dated May 8, 2018, will continue to be in force; and 50Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 9.2.3. that nothing herein shall relieve any Party hereto from liability for any willful breach of any provision hereof. 9.3. Effect of Closing. Each Party shall be deemed to have waived its respective rights to terminate this Agreement upon the completion of the Closing.No such waiver shall constitute a waiver of any other rights arising from the nonfulfillment of any condition precedent set forth in ARTICLE 3 unless suchwaiver is made in writing. ARTICLE 10.GENERAL 10.1. Amendment and Modification. This Agreement may only be amended, modified or supplemented by the written agreement of the Parties hereto. 10.2. Waiver of Compliance. Any failure of Purchaser, on the one hand, or Sellers, on the other hand, to comply with any obligation, agreement orcondition contained herein may be waived only if set forth in an instrument in writing signed by the Party or Parties to be bound by such waiver, but suchwaiver or failure to insist upon strict compliance with such obligation, agreement or condition shall not operate as a waiver of, or estoppel with respect to,any other failure. 10.3. Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any applicable Law or publicpolicy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of thetransactions contemplated herein is not affected in any manner materially adverse to any Party. Upon such determination that any term or other provision isinvalid, illegal or incapable of being enforced, the Governmental Body making such determination is authorized and instructed to modify this Agreement soas to reflect the original intent of the parties as closely as possible in order that the transactions contemplated herein are consummated as originallycontemplated to the fullest extent possible. 10.4. Expenses. Except as otherwise expressly provided in this Agreement, all costs and expenses incurred by the parties hereto in connection with thetransactions contemplated by this Agreement including negotiation of any documents and ancillary agreements (the “Transaction Documents”), shall beborne solely and entirely by the Party that has incurred in such expenses. All Taxes and costs incurred by the parties hereto in connection with thetransactions contemplated by this Agreement including negotiation of any Transaction Documents shall be borne solely and entirely by the Party that hasincurred in such Taxes, expenses or costs. It is further clarified that, if applicable, all expenses in relation to the payment of stamp duty or stamp tax related tothe execution of any transfer of the shares or equity interest to Globant shall be borne by Globant and the Sellers in equal parts. 10.5. Parties in Interest. Other than as specifically provided herein, this Agreement is not intended to and shall not confer upon any person, other than theParties hereto (and persons specifically granted indemnification rights hereunder), any rights or remedies with respect to the subject matter or any provisionhereof. 10.6. Notices. All notices and other communications hereunder shall be in writing and shall be deemed given if delivered by electronic mail, hand, mailedby registered or certified mail (return receipt requested), sent by facsimile or sent by Federal Express or other recognized overnight courier to the parties at thefollowing addresses (or at such other address for a Party as shall be specified by like notice): 51Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. If to Sellers to: Sanford Management Sucursal ColombiaAv Calle 72 No. 6 - 30 Piso 6.Bogotá, ColombiaE-mail: clloreda@laif.com.paAttention: Cristina Lloreda Diego MaldonadoCarrera 18 A No. 137 - 80 Piso 5Bogotá, ColombiaE-mail: dmaldonado@avanxo.com With copy to (which shall not constitute notice): Philippi, Prietocarrizosa, Ferrero DU & Uría S.A.S.Carrera 9 No. 74 - 08 (105)Bogotá, ColombiaE-mail: martin.acero@ppulegal.comAttention: Martin Acero If to Purchaser to: GlobantIng. Butty 240, 6th floor(1001) City of Buenos AiresArgentinaEmail: sol.noello@globant.comAttn. General Counsel With copy (which shall not constitute notice) to: Marval, O’Farrell & MairalAv. Leandro N. Alem 882, 13th floor(1001) City of Buenos AiresArgentinaEmail: hs@marval.comAttn. Hernán Slemenson If to the Company to: Avanxo (Bermuda) LimitedVictoria Place, 31 Victoria Street, Hamilton HM 10, BermudaAttn. Roderick M. Forrest Any of the above addresses may be changed at any time by notice given as provided above; provided, however, that any such notice of change of addressshall be effective only upon receipt. All notices, requests or instructions given in accordance herewith shall be deemed received on (i) the date of receipt ifhand delivered, (ii) on the date of receipt if transmitted by facsimile, (iii) the date indicated for receipt on the return receipt, if mailed by registered or certifiedmail and (iv) the date of receipt specified by the carrier, if sent by Federal Express or other recognized overnight courier. If notices, requests or instructions aregiven by facsimile, a confirming copy will be sent by hand, or mailed by registered or certified mail. 52Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 10.7. Counterparts. This Agreement may be executed and delivered in one or more counterparts, all of which shall be considered one and the sameagreement and shall become effective when all the counterparts have been signed by each of the parties and delivered to the other Party. A signed copy ofthis Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of anoriginal signed copy of this Agreement. 10.8. Entire Agreement. This Agreement (which term shall be deemed to include the exhibits and schedules hereto and the other certificates, documentsand instruments delivered hereunder) and the Transaction Documents constitute the entire agreement of the parties hereto and supersede all prior agreements,letters of intent, discussions and understandings, both written and oral, between the parties with respect to the subject matter of this Agreement, other than theTransaction Documents. There are no representations or warranties, agreements or covenants other than those expressly set forth in this Agreement. 10.9. Assignment. This Agreement may not be assigned by the Sellers, in whole or in part, without the previous written consent of the Purchaser, providedhowever, that CloudFour Tech SAS may transfer its Shares in Avanxo (Bermuda) Limited to MB Marcomm LLC and, in such case, all rights and obligationsof CloudFour Tech SAS under this Agreement shall be assumed by MB Marcomm LLC. The Purchaser may assign this Agreement and all of the rights andobligations to any Affiliate company and/or to any third party without the prior consent of the Sellers, provided that such Affiliates comply with allrequirements set forth in this Agreement, complies with the warranties and representations granted by the Purchaser in this Agreement and has securedsufficient funds to comply with the obligations set forth in this Agreement. 10.10. Publicity. Disclosure. Except by prior mutual consent, neither Sellers nor Purchaser shall issue any press releases or make any other publicannouncement or statement concerning this Agreement and the transactions contemplated hereby, provided, however, that Purchaser and its Affiliates shallbe entitled to disclose the terms of this Agreement, and make any announcement and filing (including a filing of this Agreement and its Schedules) requiredby any applicable Law and, in particular, by any securities and public offerings Laws of the United States of America and/or Luxembourg. 10.11. Further Assurances. At any time on or after the date hereof, the Parties shall upon request each perform such acts, execute and deliver suchinstruments, assignments and other documents and do all such other things consistent with the terms of this Agreement as may be reasonably necessary toaccomplish the transactions contemplated in this Agreement or otherwise to carry out the purposes of this Agreement. 10.12. Governing Law and Arbitration. This Agreement shall be governed by and construed in accordance with the Laws of the State of New York withoutgiving effect to any conflict of Law provisions. All disputes arising out or in connection with the Agreement (a “Controversy”) shall be resolved in one of the following ways: 10.12.1. By mutual agreement of the Parties involved in the Controversy, expressed by a letter signed by the parties thereto, whereby the Parties involved inthe Controversy shall endeavor to negotiate a settlement of the Controversy. If the Parties fail to resolve the Controversy within 21 calendar days after theirfirst discussion, they shall commit to a personal meeting, at a location mutually acceptable to the Parties in New York, New York, United States of America,for two (2) business days to negotiate a solution to the Controversy, and only if they fail to resolve such Controversy according to this Section 10.12.1, theControversy shall be resolved as provided in Section 10.12.2 below. The letter of mutual agreement to negotiate may set forth rules, procedures, time limitsand other matters agreed to by the Parties. 53Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 10.12.2. If the Parties fail to resolve the Controversy in accordance with Section 10.12.1 above, such Controversy shall be finally settled under the Rules ofArbitration of the International Chamber of Commerce for the time being in force (which rules are deemed to be incorporated by reference in this Section10.12.2) by three (3) arbitrators appointed in accordance with such rules; provided, however, that if the Controversy is for an amount of less than $5,000,000,only one (1) arbitrator to be appointed in accordance with such rules shall intervene to settle the Controversy. The place of the arbitration shall be Miami,Florida, United States of America, and the language of the arbitration shall be English. Notwithstanding anything to the contrary in this Section 10.12.2,documents and other evidence in the arbitration may be submitted in Spanish if Spanish is the original language of the document or evidence, and witnessesand experts may provide testimony in Spanish if Spanish is their mother language or if they so elect. The Parties hereby waive the right to demand theposting of bond for costs. With the broadest scope as permitted by Law, the Parties hereto waive their right to file legal actions against the arbitration award and exceptions against itsexecution. The enforcement or execution of any award may be requested before the competent courts of any competent jurisdiction. 10.13. Attorneys Fee. If any action is brought for the enforcement or interpretation of this Agreement or relating to an alleged dispute, breach, default ormisrepresentation in connection with any of the provisions of this Agreement, the successful or prevailing Party as determined by the judge or arbitrator shallbe entitled to recover attorneys’ fees and other costs incurred in addition to any other relief to which such Party may be entitled. 10.14. Confidential Information. Each of the Sellers hereby agrees (i) to hold and to cause each of such Party’s agents, employees and representatives tohold the Company’s and Globant’s Confidential Information in strict confidence and to take reasonable precautions to protect such Confidential Information,(ii) not to make any use whatsoever at any time of such Confidential Information except as contemplated hereunder, and (iv) not to copy or reverse engineerany such Confidential Information. For purposes of this Section 10.14, “Confidential Information” shall mean, without limitation: (a) any information that isspecifically marked as “Confidential”; (b) any notes, analyses, compilations, studies, interpretations, or other documents prepared or furnished by theCompany or Globant related to any of the transactions contemplated by this Agreement; (c) information which the management of the Company or Globanthas requested in writing to be kept confidential; (d) information which is disclosed verbally and identified as confidential at the time of disclosure; and (e)information of which, by its nature, must be kept confidential in order to prevent adverse consequences to the business of the company or Globant. 10.15. Interpretation. For purposes of this Agreement, (a) the words “include,” “includes” and “including” shall be deemed to be followed by the words“without limitation”; (b) the word “or” is not exclusive; and (c) the words “herein,” “hereof,” “hereby,” “hereto” and “hereunder” refer to this Agreement as awhole. Unless the context otherwise requires, references herein: (x) to Articles, Sections, Disclosure Schedules and Exhibits mean the Articles and Sections of,and Disclosure Schedules and Exhibits attached to, this Agreement; (y) to an agreement, instrument or other document means such agreement, instrument orother document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and (z) to a statute means suchstatute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement shall beconstrued without regard to any presumption or rule requiring construction or interpretation against the Party drafting an instrument or causing anyinstrument to be drafted. The Disclosure Schedules and Exhibits referred to herein shall be construed with, and as an integral part of, this Agreement to thesame extent as if they were set forth verbatim herein. 54Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. 10.16. Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement. * * * [Signature pages follow.] 55Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. SCHEDULE ADEFINITIONS For purposes of this Agreement and its Exhibits and Schedules, and notwithstanding those definitions included in other parts of the Agreement (including itsSchedules, Annexes and Exhibits), and unless the context clearly indicates otherwise, the terms of which the first letter is written in an upper case shall havethe meaning ascribed to it in this Schedule. “2018 Bonus Payments” shall mean any obligations or payments to be made by the Company after the Closing Date with respect to any extraordinarygratification, bonus or other incentive compensation to any employee of the Company in connection with their employment and/or performance prior toDecember 31, 2018, including, without limitation, sales related bonuses and Management Team performance bonuses. “Accounts Receivable” shall have the meaning set forth in Section 4.15.4 of this Agreement. “Action” shall have the meaning set forth in Section 4.8. of this Agreement. “Activities” shall have the meaning set forth in Section 7.6 of this Agreement. “Actual Revenue” shall mean Revenue for each of Year 1 and Year 2. “Actual Gross Margin” shall mean Gross Margin Revenue for each of Year 1 and Year 2. “Actual Operating Margin” shall mean Operating Margin Revenue for each of Year 1 and Year 2. “Agreement” shall mean the Share Purchase Agreement entered into by and between Globant and Sellers. “Affiliate” shall mean a person controlled by, controlling of, or under common control with one of the Parties, as the context may indicate. “Alternative Transaction” shall have the meaning set forth in Section 7.3 of this Agreement. “Anti-Bribery Laws” means applicable anti-corruption or anti-bribery Laws and any related rules, regulations or guidelines, issued, administered or enforcedby any Governmental Authority, including the FCPA, the UK Bribery Act, Sections 256 to 259, 266, 268 and 300 bis of the Argentine Criminal Code(Código Penal de la Nación), Argentine Law No 25,188, Argentine National Decree No 41/99, Argentine Law No 27,401, the Colombian Laws No 1474 of2011 and 1778 of 2016 and articles 407 and 433 of the Colombian Criminal Code (Código Penal), the international conventions, including the Inter-American Convention against Corruption (IACAC) 1996, the Convention on Combating Bribery of Foreign Officials in International Business Transactions1997 (OECD Anti-Bribery Convention), the United Nations Conventions against Business Corruption 2003, the Brazilian Federal Law No 12,846 from 2013(Brazilian Clean Company Act), its Decree 8,420 from 2015, and, when applicable, the Brazilian Civil Code, Brazilian Federal Law No 8,429 from 1992,Brazilian Federal Law 8,666 from 1993, Federal Law No 8,443 from 1992, and other Brazilian Laws that may be applicable and include aspects related toanti-corruption, anti-bribery, anti-fraud, etc., in federal, state or municipality level, Peruvian Criminal Code, Peruvian Law No 30424 and its modifications,Section 113 of the Political Constitution of the United Mexican States, the Tenth Title of the Mexican Federal Criminal Code, the Mexican FederalAnticorruption Law Public Contracting, the Fourth Title of the Mexican Federal Law of Administrative Responsibilities of Public Officers and the Generalguidelines for the establishment of permanent actions that ensure the integrity and ethical behavior of public officers in the performance of their jobs,positions or commissions. 56Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. “Anti-Money Laundering Laws” means any and all applicable anti-money laundering Laws issued, administered or enforced by any Governmental Body,including, without limitation, the U.S. Bank Secrecy Act and the USA Patriot Act, Colombian Laws No. 1121 of 2006 and the 1708 of 2014, and article 323of the Colombian Criminal Code (Código Penal), Argentine Laws No 25,246 and 25,188, as amended and complemented, and any decree, regulation,resolution, rule or guidelines issued by the Governmental Authority in charge of supervising anti-money laundering matters, including, without limitation,international conventions including the United Nations Convention against Illicit Traffic in Narcotic Drugs and Money Laundering 1988, the UnitedNations Convention for the Suppressing of the Financing of Terrorism 1999, the United Nations Convention against Transnational Organized Crime 2000,the Inter-American Convention against Terrorism and Money Laundering 2002 and the resolutions issued by the Brazilian Financial Activities ControlCouncil (Conselho de Controle de Atividades Financeiras), Peruvian Legislative Decree No 1106, and Sections 400 Bis and 400 Bis 1, 139, 139 Bis and 139Ter, 139 Quater and 139 Quinqui of the Mexican Federal Criminal Code, the Mexican Federal Law for the Prevention and Identification of Operations withResources of Illegal Origin, the Regulations of the Federal Law for the Prevention and Identification of Operations with Resources of Illegal Origin, and theRules of a General Character referred to in the Mexican Federal Law for the Prevention and Identification of Operations with Resources of Illegal Origin. “Antitrust Clearance” means (a) the Colombian Antitrust Authority having adopted a decision stating that either the transaction contemplated herein (i) fallsoutside the scope of Colombian merger control rules, or (ii) is unconditionally authorized without the need to apply remedies, or (iii) is conditionallyauthorized subject to compliance with specific remedies set forth by the Colombian Antitrust Authority, or (b) the Colombian Antitrust Authority havingfailed to adopt a decision authorizing or objecting the transaction contemplated herein within the statutory timeframe. “Avanxo” shall mean Avanxo (Bermuda) Limited, a company duly organized and existing under the Laws of the Islands of Bermuda. “Accounts Receivable Certificate” shall have the meaning set forth in Section 1.4.2(a) of this Agreement. “Bad Debt” means any debt that is still unpaid after one hundred and twenty (120) calendar days from its due date. “Breaching Group B Seller” shall have the meaning set forth in Section 1.4.5(a) of this Agreement. “Business Day” means any day of the year on which national banking institutions in the City of Buenos Aires, Argentina, Bogota, Colombia and New York,New York, United States of America are open to the public for conducting business and are not required or authorized to close. “Cash” shall mean any sum related to the amounts held by the Company in cash and/or in bank accounts or cash equivalents (other than cash and cashequivalents that are not freely usable by the Company because they are subject to restrictions or limitations on use or distribution by Law or contract). “Cause for Non-Payment” shall have the meaning set forth in Section 1.4.5 of this Agreement. “Claim” shall have the meaning set forth in Section 6.6.6 of this Agreement. 57Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. “Closing” shall have the meaning set forth in Section 2.1 of this Agreement. “Closing Cash Statement” shall have the meaning set forth in Section 1.4.3(c) of this Agreement. “Closing Date” shall have the meaning set forth in Section 2.1 of this Agreement. “Closing Date Accounts Receivable Certificate” shall have the meaning set forth in Section 1.4.2(a) of this Agreement. “Closing Date Payment” shall have the meaning set forth in Section 1.4.3(b) of this Agreement. “Colombian Antitrust Authority” means the Superintendence of Industry and Commerce (Superintendencia de Industria y Comercio) of Colombia. “Company” shall mean Avanxo. “Company Copyrights” shall have the meaning set forth in Section 4.18.2 of this Agreement. “Company Marks” shall have the meaning set forth in Section 4.18.3 of this Agreement. “Company Patents” shall have the meaning set forth in Section 4.18.1 of this Agreement. “Company Registered IP” shall have the meaning set forth in Section 4.18.7 of this Agreement. “Confidential Information” shall have the meaning set forth in Section 10.14 of this Agreement. “Confidential Information Agreements” shall have the meaning set forth in Section 4.19 of this Agreement. “Controversy” shall have the meaning set forth in Section 10.12 of this Agreement. “Cutoff Date” shall have the meaning set forth in Section 1.4.2(a) of this Agreement. “Defending Party” shall have the meaning set forth in Section 6.6.4 of this Agreement. “Definitive Cash at Closing” shall have the meaning set forth in Section 1.4.3(d)of this Agreement. “Definitive Net Working Capital” shall have the meaning set forth in Section 1.4.1(b) of this Agreement. “Determination” shall have the meaning set forth in Section 6.7.2 of this Agreement. “Direct Claim” shall have the meaning set forth in Section 6.6.6 of this Agreement. “Direct Costs” shall mean, salaries and wages, bonuses, commissions, any mandatory salary payment, profit sharing distribution, costs of health, dental,and/or vision plans, life insurances, workers’ compensation insurance policy, holiday pay, Company benefits, professional fees, contractors fees, free-lancersfees and/or any amount paid for consultancy performed on a project, cost of any special equipment and devices needed for a specific project, travel expensesrelated to a project, and any expenses incurred by the Company while delivering services to a client (except reimbursed travel and project expenses (travel,hotels, meals, etc.). For the avoidance of doubt, no Indirect Costs shall be included in Direct Costs. Cost of software subscription/licenses shall be recognizedand included in Earn Out calculations over the period of each applicable customer contract. 58Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. “Disclosure Schedule” shall have the meaning set forth in the preamble of ARTICLE 4 of this Agreement. “Dollar” or “$”shall mean the United States dollar, lawful currency of the United States of America. “Earn Out Objection Notice” shall have the meaning set forth in Section 1.3.3(c) of this Agreement. “Earn Out Payment” shall mean each of the payments to be made by the Purchaser to Group B Sellers, as set forth in Section 1.3.2(a)(ii) of this Agreement. “Earn Out Periods” shall have the meaning set forth in Exhibit C of this Agreement. “Earn Out Report” shall have the meaning set forth in Section 1.3.3 of this Agreement. “Effect” shall have the meaning set forth in Section 3.2.10 of this Agreement. “Employee Benefit Plan” shall mean any welfare benefit plan, pension benefit plan, deferred compensation plan or arrangement, any agreement, plan,program, fund, policy, contract or arrangement providing compensation, pension, retirement, superannuation, profit sharing, thirteenth month, severance,change in control, termination indemnity, redundancy pay, bonus, incentive compensation, group insurance, death benefit, health, cafeteria, flexible benefit,medical expense reimbursement, dependent care, stock option, stock purchase, stock appreciation rights, savings, consulting, vacation pay, holiday pay, lifeinsurance, or other employee benefit or fringe benefit plan, program or arrangement covering any employee or former employee of the Company, and thebeneficiaries and dependents of any employee or former employee, regardless of whether it is private, funded, unfunded, financed by the purchase ofinsurance, contributory or noncontributory. “Environmental Laws” means any Law, regulation, or other applicable requirement relating to (x) releases or threatened release of Hazardous Substance, (y)pollution or protection of employee health or safety, public health or the environment or (z) the manufacture, handling, transport, use, treatment, storage, ordisposal of Hazardous Substances. “Escrow Agreement” means that certain Escrow Agreement to be entered on the Closing Date by and between Sellers and Purchaser, on terms and conditionsreasonably satisfactory to Purchaser and Sellers. “Escrow Amount” shall have the meaning set forth in Section 1.3.2(a)(iii) of this Agreement. “Escrow Fund” shall have the meaning set forth in Section 1.3.1(b) of this Agreement. “Estimated Cash at Closing” shall have the meaning set forth in Section 1.4.3(d) of this Agreement. “Estimated Cash at Closing Certificate” shall have the meaning set forth in Section 1.4.3(a) of this Agreement. “Estimated Closing Cash Certificate” shall have the meaning set forth in Section 1.4.3(a) of this Agreement. “FCPA” shall mean the U.S. Foreign Corrupt Practices Act of 1977. 59Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. “Financial Arbitrator” shall mean the firm chosen pursuant to Section 1.3.3(d) of this Agreement. “Financial Arbitrator Determination” shall have the meaning set forth in Section 1.3.3(d)(iv) of this Agreement. “Financial Performance Target” shall have the meaning set forth in Exhibit C of this Agreement. “Financial Statements” shall have the meaning set forth in Section 4.11 of this Agreement. “G Shares” shall have the meaning set forth in Section 1.3.2(c) of this Agreement. “G Shares Amount” shall have the meaning set forth in Section 1.3.2(c) of this Agreement. “GAAP” shall mean United States generally accepted accounting principles. “GDPR” shall mean the European Union General Data Protection Regulation. “General and Administrative Expenses” means, for the Company, all the operating expenses, salaries of non-sales people and Taxes related to the generaloperation to the company (building and services, communications, finance, legal, IT, D&A, Taxes, salaries and wages and others. “Globant” shall have the meaning assigned in the heading of this Agreement. “Governmental Body” means any federal, state, local or foreign government or political subdivision thereof, or any agency or instrumentality of suchgovernment or political subdivision, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental authority (tothe extent that the rules, regulations or orders of such organization or authority have the force of Law), or any arbitrator, court or tribunal of competentjurisdiction. “Gross Margin” shall mean, for any applicable period, Gross Profit divided by Revenue. “Gross Margin Target” shall have the meaning set forth in Exhibit C of this Agreement. “Gross Margin Target Payment” shall have the meaning set forth in Exhibit C of this Agreement. “Gross Profit” shall mean Revenue minus Direct Costs minus Indirect Costs related to the services rendered and cost of licenses to be resold. “Group B First Payment” shall have the meaning set forth in Section 1.3.2(a)(i) of thisAgreement. “Group B Sellers’ Accounts” shall have the meaning ser forth in Section 1.3.2(b) of this Agreement. “Group A Payment” shall have the meaning set forth in Section 1.3.1(a) of this Agreement. “Group A Sellers” shall mean Marseilles Investments Limited, Scott Lee Hoing, Andres Wladimir Snaider and Top Oak LLC, as set forth in Schedule B ofthis Agreement. “Group A Sellers’ Accounts” shall have the meaning set forth in Section 1.3.1(c) of this Agreement. 60Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. “Group A Sellers Escrow Amount” shall have the meaning set forth in Section 1.3.1(b) of this Agreement. “Group B First Payment” shall have the meaning set forth in Section 1.3.2(a)(i) of this Agreement. “Group B Sellers” shall mean Carlos Eduardo Morais, CloudFour Tech SAS and MB MARCOMM LLC, as set forth in Schedule B of this Agreement. “Group B Sellers Escrow Amount” shall have the meaning set forth in Section 1.3.2(a)(iii) of this Agreement. “Hazardous Substance” shall have the meaning set forth in Section 4.34 of this Agreement. “IFRS” shall have the meaning set forth in Section 1.3.2(a)(iii) of this Agreement. “Inbound License Agreement” means any agreement granting to the Company or any of its Subsidiaries any license under or with respect to any IntellectualProperty Rights, other than (A) the nonexclusive license to the Company or any of its Subsidiaries of standard, generally commercially available, “off-the-shelf” third party products and services, (B) Open Source Software, or (C) Confidential Information Agreements (as defined below). A covenant not to assertany Intellectual Property Right against the Company or any of its Subsidiaries will be deemed to be an Inbound License Agreement. “Indemnified Party” shall have the meaning set forth in Section 6.2.1of this Agreement. “Indemnifier” shall have the meaning set forth in Section 6.6.1 of this Agreement. “Indemnifying Parties” shall have the meaning set forth in Section 6.2.1 of this Agreement. “Indirect Costs” Shall mean the cost of employees not assigned to any project but whose services are a necessary part of the delivery, costs associated to themanagement of projects for customers, the cost of talent pool (i.e., employees not assigned to billable projects) and severance for billable employees. For theavoidance of doubt, no Direct Costs will be included in Indirect Costs. “Individual Seller” shall mean any of the selling shareholders identified in Schedule B of this Agreement. “Intellectual Property Rights” means all rights arising from or associated with the following, whether protected, created or arising under the Laws of anyjurisdiction of the world: (a) patents and patent applications, including continuation, divisional, continuation-in-part, reexamination and reissue patentapplications, and any patents issuing therefrom, and rights in respect of utility models or industrial designs (collectively, “Patents”); (b) copyrights andregistrations and applications therefor, including software (collectively, “Copyrights”); (c) trade names, trademarks and service marks (registered andunregistered), domain names, URLs, and other Internet addresses or identifiers, social media handles, trade dress and similar rights, and registrations andapplications to register any of the foregoing (collectively, “Marks”); (d) non-public Technology, and other proprietary or confidential business informationthat derives economic value (actual or potential) from not being generally known to other persons who can obtain economic value from its disclosure or use,including customer lists, but excluding any published Copyrights or published Patents that may cover or protect any of the foregoing (collectively, “TradeSecrets”); (e) mask work and similar rights protecting integrated circuit or chip topographies or designs (collectively, “Mask Works”); and (f) moral rights,publicity rights and any other proprietary, intellectual or industrial property rights of any kind or nature that do not comprise or are not protected by Marks,Patents, Copyrights, Trade Secrets or Mask Works. 61Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. “Key Employees” shall mean Diego Maldonado and Carlos Eduardo Morais. “knowledge” means, when referring to the “knowledge” of each of the Sellers, or any similar phrase or qualification based on knowledge, the actualknowledge of the Sellers, the Key Employees and the chief financial officer and the knowledge that each such person would have reasonably obtained in theperformance of each such person's duties as director, officer or employee of the Company. “Labor Agreement” shall mean each management, employment, severance, consulting, service agreement or similar agreement or contract between theCompany and any current, former, or retired employee, officer, or director of the Company and/or independent consultants or contractors. “Labor Permits and Regulations” shall mean any foreign, federal, state and local Laws, rules and regulations relating to the relocation, repatriation,expatriation, visas, work permit of any nature applicable to any current, former, or retired employee, officer, or director of the Company and its Subsidiariesand/or independent consultants or contractors. “Law” means any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, decree, other requirement or rule of law ofany Governmental Body. “Lease Agreements” shall have the meaning set forth in Section 4.27 of this Agreement. “Lease Agreements” shall have the meaning set forth in Section 4.27 of this Agreement. “Leased Real Property” shall have the meaning set forth in Section 4.27 of this Agreement. “Legal Proceeding” means any claim, action, demand, suit, litigation, arbitration, proceeding (including any civil, criminal, administrative, regulatory,investigative or appellate proceeding), hearing, inquiry, audit, notice of violation, subpoena, summons, examination or investigation commenced, brought,conducted or heard by or before, or otherwise involving, any court or other Governmental Body or any arbitrator or arbitration panel. “Lien” shall have the meaning set forth in Section 1.1 of this Agreement. “Losses” shall have the meaning set forth in Section 6.4 of this Agreement. “Management Team” shall mean the employees listed in Section 4.21.9 of the Disclosure Schedule. “Marseilles” shall have the meaning set forth in Section 3.2.7 of this Agreement. “Material Adverse Effect” shall have the meaning set forth in Section 3.2.10 of this Agreement. “Material Contract” shall have the meaning set forth in Section 4.14 of this Agreement. 62Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. “Minimum Cash” shall mean the amount of Cash the Company needs at Closing to cover, as of the Closing Date, the Company’s (a) financial debt(including applicable interest and/or expenses), (b) outstanding debt related to any tax amnesty program, (c) amounts to be paid for any Taxes or withholdingamounts payable in connection with any dividend or other distribution to the Sellers made prior to Closing, (d) $320,000 (including any withholding, Taxesor social security or other contributions) for the payments to employees as listed in Exhibit G, (e) $280,000 (including any withholding, Taxes or socialsecurity or other contributions) as part of the first installment of the Retention Bonus, pursuant to Section 1.7.1(a) hereof, (f) 2018 Bonus Payments(including any withholding, Taxes or social security or other contributions), (g) vacations accrued and unpaid for any period prior to 2018, and (h) amountscollected from clients of the Company on or prior to the Closing Date for services not yet rendered as of the Closing Date. “Net Working Capital” shall have the meaning set forth in Section 1.4.1(a) of this Agreement. “Non-Competition Obligation” shall have the meaning set forth in Section 7.6 of this Agreement. “Non-Disclosure Agreement” shall have the meaning set forth in Section 2.2.8 of this Agreement. “Non Labor Revenue” shall mean all revenue related to customarily reimbursable expenses of a project (including but not limited to travel, accommodation,flight tickets, meals, etc.). “Non-Solicitation Obligation” shall have the meaning set forth in Section 7.7 of this Agreement. “Notice Period” shall have the meaning set forth in Section 6.6.3 of this Agreement. “OFAC” shall have the meaning set forth in Section 4.31 of this Agreement. “Open Source Software” shall have the meaning set forth in Section 4.18.15 of this Agreement. “Operating Margin” means Operating Profit divided by Revenue.. “Operating Profit Target” means Gross Profit less (a) Sales & General Administrative Expenses and (b) Depreciation & Amortization. “Order” shall have the meaning set forth in Section 4.8 of this Agreement. “Outbound License Agreement” means any agreement under which the Company or any of its Subsidiaries grants any person any license or other right, titleor interest (whether or not currently exercisable and including a right to receive a license) under or with respect to any Intellectual Property Rights orTechnology, other than the nonexclusive license of the Company’s software and products in the ordinary course of business pursuant to standard end-useragreements. For the avoidance of doubt, a covenant by the Company or any of its Subsidiaries not to assert any Intellectual Property Right against a Personshall be deemed to be an Outbound License Agreement. “Parties” shall have the meaning assigned in the heading of this Agreement. “Party” shall have the meaning assigned in the heading of this Agreement. “Personal Information” shall have the meaning set forth in Section 4.32 of this Agreement. “Pre-Closing Taxable Period” shall have the meaning set forth in Section 8.2 of this Agreement. “Purchase Price” shall have the meaning set forth in Section 1.2 of this Agreement. “Purchaser” shall have the meaning assigned in the heading of this Agreement. 63Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. “Purchaser Indemnified Party” shall have the meaning set forth in Section 6.1.1 of this Agreement. “Purchaser Indemnifying Party” shall have the meaning set forth in Section 6.2.1 of this Agreement. “Purchaser’s Fundamental Representations” shall have the meaning set forth in Section 6.3 of this Agreement. “Representative” shall mean officers, employees, accountants, investment bankers, agents, advisors and other representatives. “Retention Bonus” shall have the meaning set forth in Section 1.7 of this Agreement. “Revenue” shall mean, for any applicable period: a.all revenue, but excluding any project expenses to be reimbursed (i.e. travel, hotel, meals, etc. –non-labor cost) related to the services rendered;excluding any interest income, and provided further that revenue shall be net of any Bad Debt that is included in revenue; b.Revenue related to the resale of subscriptions from Salesforce and/or similar providers shall be recognized over the period of each applicable customercontract; c.Revenue derived from the resale of Salesforce.com subscriptions invoiced in 2018 as detail in Exhibit H “Revenue – Deferred Revenue 2018” shall berecognized over the period of the applicable customer contract; d.Referral Fees paid by Salesfoce.com or other similar providers; e.Revenue related to the resale of subscription based on cloud services consumption, such as Amazon Web Services, shall be recognized monthly over theperiod of each applicable customer contract; and f.Revenue related to the resale of perpetual licenses, such as Informatica, shall be recognized according to IFRS. In connection with the foregoing item, it shall be understood that (A) Revenue generated from the services provided by the Company to new and currentclients of the Company shall be deemed to be included in Earn Out calculations in a proportion equivalent to 100% of the total Revenue generated bythe provision of such services by the Company, (B) the services provided by the Company to any of Globant’s current or future clients or customers thathave been referred to the Company by Globant shall be deemed to be included in Earn Out calculations in a proportion equivalent to 70% of the totalrevenue generated by the provision of such services by the Company; and (C) the services provided by Globant to clients of the Company that have beenreferred to Globant by the Company, shall be deemed to be included in Earn Out calculations in a proportion equivalent to 30% of the total revenuegenerated by the provision of such services by Globant. For purposes of paragraphs (B) and (C) above, the same proportion of Direct Costs and IndirectCosts will be deducted from Revenue in order to calculate Company's Gross Profit and Operating Profit. For purposes of this paragraph, any reference toGlobant shall include their respective Affiliates but exclude the Company. Revenue shall exclude any interest income and shall be net of any Bad Debt. “Revenue Target” shall have the meaning set forth in Exhibit C of this Agreement. 64Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. “Revenue Target Payment” shall have the meaning set forth in Exhibit C of this Agreement. “Sales and General Administrative Expenses” means the expenses related to Selling, General & Administrative: 1) Salaries, payroll taxes, mandatorypayments, health insurances, life insurances, holiday pay, accruals for bonuses, commisions and vacations, any other employment benefit and travels relatedto the following Departments: a) Sales & Busines Development; b) Marketing, c) IT; d) Facilities & Building Services; e) Finance&Administration; f) HumanResources & Recruiting; g) Internal Communication, h) Legal&Labor fees (accounting, recruiting, audit, legal, etc.); 2) Property lease and office expenses,telephony, cloud hosting, IT services, utilities, accounting fees, audit fees, tax fees, recruiting fees, payroll fees, marketing fees, company events expenses,legal fees, 3) All taxes except for Income tax, 4) depreciation and amortization. “Sanctions Governmental Authority” means the United States Government (including without limitation, OFAC), the United Nations Security Council, theEuropean Union, Her Majesty’s Treasury or other relevant sanctions authority in any jurisdiction. “Set-Off Rights” shall have the meaning set forth in Section 6.5 of this Agreement. “Shares” shall mean one hundred percent (100%) of the issued and outstanding share capital in the Company and, indirectly, in any Subsidiary, as set forthin Exhibits A and B of this Agreement. “Sellers” shall mean Group A Sellers and Group B Sellers, jointly considered. “Sellers’ Fundamental Representations” shall have the meaning set forth in Section 6.3 of this Agreement. “Sellers Indemnified Party” shall have the meaning set forth in Section 6.2.1 of this Agreement. “Sellers Indemnifying Party” shall have the meaning set forth in Section 6.1.1 of this Agreement. “Sellers’ Ownership Percentage” shall have the meaning set forth in Section 1.2 of this Agreement. “Shareholders’ Agreement” shall have the meaning set forth in Section 3.2.7 of this Agreement. “Straddle Taxable Period” shall have the meaning set forth in Section 8.3 of this Agreement. “Subscription Agreement” shall have the meaning set forth in Section 1.3.2(c) of this Agreement. “Subsidiary” means, with respect to the Company, any branch, any corporation or other person of which securities or other interests having the power to electa majority of that corporation’s or other person’s board of directors or similar governing body, or otherwise having the power to direct the business andpolicies of that corporation or other person (other than securities or other interests having power only upon the happening of a contingency that has notoccurred) are held by the Company or one or more of its Subsidiaries. “Target Net Working Capital” shall have the meaning set forth in Section 1.4.1(a) of this Agreement. “Tax Return” means any return, declaration, report, claim for refund, information return or other document relating to Taxes, including any schedule orattachment thereto, and including any amendments thereof. 65Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. “Taxes” shall mean any and all taxes, fees, levies, duties, tariffs, imposts, and other charges of any kind (together with any and all interest, penalties,additions to tax and additional amounts imposed with respect thereto) imposed by any Taxing Authority. “Taxing Authority” means any central, federal, state, local or foreign Government, entity, agency, body or person that is authorized by law or by any otherregulation to impose, levy, collect, audit, assess, make a claim or take any other decision concerning Taxes. “Technology” means all algorithms, application programming interfaces, apparatus, databases and data collections, diagrams, designs, formulae, discoveries,inventions (whether or not patentable), know-how, concepts, ideas, methods, improvements, network configurations and architectures, processes, technicaldata, proprietary information, schematics, specifications, software code (in any form including source code and executable or object code), techniques,domain names, URLs, social media handles, web sites, works of authorship, and other forms of technology. “Third-Party Claim” shall have the meaning set forth in Section 6.6.1 of this Agreement. “Transaction” shall have the meaning assigned in the preamble of this Agreement. “Transaction Documents” shall have the meaning set forth in 10.4 of this Agreement. “Unresolved Earn Out Objections” shall have the meaning set forth in Section 1.3.3(d)(iii) of this Agreement. “Voluntary Leaver” shall have the meaning set forth in Section 1.4.5(b) of this Agreement. 66Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. SELLERS MARSEILLES INVESTMENTS LIMITED /Christina Lioreda/ Name: Christina LioredaTitle: POA SIGNATURE PAGE 1 OF 9 TO SHARE PURCHASE AGREEMENT Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. SCOTT LEE HOING /Scott Lee Hoing/ SIGNATURE PAGE 2 OF 9 TO SHARE PURCHASE AGREEMENT Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. ANDRES WLADIMIR SNAIDER /Andres Wladimir Snaider/ SIGNATURE PAGE 3 OF 9 TO SHARE PURCHASE AGREEMENT Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. TOP OAK LLC /Juan P. Navas/ Name: Juan P. NavasTitle: Member – Manager SIGNATURE PAGE 4 OF 9 TO SHARE PURCHASE AGREEMENT Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. CARLOS EDUARDO MORAIS /Carlos Eduardo Morais/ SIGNATURE PAGE 5 OF 9 TO SHARE PURCHASE AGREEMENT Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. MB MARCOMM LLC /Diego Maldonado/ Name: Diego MaldonadoTitle: Member Manager SIGNATURE PAGE 6 OF 9 TO SHARE PURCHASE AGREEMENT Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. CLOUDFOUR TECH SAS /Diego Maldonado/ Name: Diego MaldonadoTitle: Rep. Legal SIGNATURE PAGE 7 OF 9 TO SHARE PURCHASE AGREEMENT Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. THE COMPANY AVANXO (BERMUDA) LIMITED /Diego Maldonado/ Name: Diego MaldonadoTitle: CEO SIGNATURE PAGE 8 OF 9 TO SHARE PURCHASE AGREEMENT Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. PURCHASER GLOBANT ESPANA S.A. (SOCIEDADUNIPERSONAL) /Martin Gonzalo Umaran/ Name: Martin Gonzalo UmaranTitle: Apoderado SIGNATURE PAGE 9 OF 9 TO SHARE PURCHASE AGREEMENT Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Exhibit 8.1 List of Subsidiaries as of March 15, 2019 Globant España S.A. (sociedad unipersonal) Spain 100% Globant S.A.Software Product Creation S.L. Spain 52.28% Globant España S.A. (sociedad unipersonal) 47.72% Globant S.A.Sistemas Colombia S.A.S. Colombia 99.99% Globant España S.A. (sociedad unipersonal) 00.01% Software Product Creation SLGlobant, LLC USA 100% Globant España S.A. (sociedad unipersonal)Sistemas Globales Uruguay S.A. Uruguay 100% Globant España S.A. (sociedad unipersonal)Difier S.A. Uruguay 100% Globant España S.A. (sociedad unipersonal)Sistemas UK Ltd. England & Wales 100% Globant España S.A. (sociedad unipersonal)We Are London Ltd. England & Wales 100% Globant España S.A. (sociedad unipersonal)Sistemas Globales Chile Asesorías Ltda. Chile 95.00% Globant España S.A. (sociedad unipersonal) 05.00% Software Product Creation S.L.Global Systems Outsourcing S. de R.L. de C.V. Mexico 99.99% Globant España S.A. (sociedad unipersonal) 00.01% IAFH Global S.A.IAFH Global S.A. Argentina 99.9989% Globant España S.A. (sociedad unipersonal) 00.0011% Software Product Creation S.L.Sistemas Globales S.A. Argentina 89.85% Globant España S.A. (sociedad unipersonal) 10.15% Software Product Creation S.L.Huddle Group S.A. Argentina 98.60% Globant España S.A. (sociedad unipersonal) 01.40% Software Product Creation S.L.Globers S.A. Argentina 95.00% IAFH Global S.A. 05.00% Sistemas Globales S.A.Dynaflows S.A. Argentina 94.99% Sistemas Globales S.A. 05.01% Globant España S.A. (sociedad unipersonal)Globant Ventures S.A.S. Argentina 100% Sistemas Globales S.A.Globant Peru S.A.C. Peru 99.99% Globant España S.A. (sociedad unipersonal) 00.01% Software Product Creation S.L.Globant Brasil Consultoria Ltda. Brazil 99.99% Globant España S.A. (sociedad unipersonal) 00.01% Software Product Creation SLGlobant India Pvt. Ltd. India 95.45% Globant España S.A. (sociedad unipersonal)Globant Canada Corp. Canada 100% Globant España S.A. (sociedad unipersonal)Globant Bel LLC Belarus 95.00% Globant Españ S.A. (sociedad unipersonal) 05.00% Software Product Creation S.L.Small Footprint S.R.L. Romania 100% Globant España S.A. (sociedad unipersonal)Globant France S.A.S. France 100% Globant S.A.Software Product Creation S.L. - Dubai Brunch Dubai Brunch of Software Product Creation S.L.Avanxo (Bermuda) Limited Bermuda 100% Globant España S.A. (sociedad unipersonal)Avanxo - Sucursal del Perú Peru Brunch of Avanxo (Bermuda) LimitedAvanxo Colombia Colombia Brunch of Avanxo (Bermuda) LimitedAvanxo U.S., LLC USA 100% Avanxo (Bermuda) LimitedAvanxo S.A. Argentina 99.96% Avanxo (Bermuda) Limited 00.04% Avanxo México S.A.P.I de C.V. Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Avanxo México S.A.P.I. de C.V. Mexico 99.99% Avanxo (Bermuda) Limited 00.01% Avanxo Brasil Tecnología da Informacao LTDA.Avanxo Servicios S.A. de C.V. Mexico 90.00% Avanxo México S.A.P.I. de C.V. 10.00% Avanxo Brasil Tecnología da Informacao LTDA.Avanxo Brasil Tecnología da Informacao LTDA. Brasil 99.99% Avanxo (Bermuda) Limited 00.01% Avanxo México S.A.P.I. de C.VOrizonta Consultoria de Negocios e Tecnologia LTDA. Brasil 99.997% Avanxo Brasil Tecnología da Informacao LTDA. 00.003% Avanxo México S.A.P.I. de C.V Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Exhibit 12.1 CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. §1350) I, Martín Migoya, certify that: 1.I have reviewed this annual report on Form 20-F of Globant S.A. (the “Company”) for the fiscal year ended December 31, 2018; 2.Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3.Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects thefinancial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this annual report; 4.The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined inExchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)),for the Company and have: (a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensurethat material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities,particularly during the period in which this report is being prepared; (b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under oursupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for externalpurposes in accordance with generally accepted accounting principles; (c)Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about theeffectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (d)Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the period covered by the annualreport that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and 5.The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to theCompany’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions): (a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonablylikely to adversely affect the Company’s ability to record, process, summarize and report financial information; and (b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control overfinancial reporting. Date: March 29, 2019 /s/ Martín Migoya Martín Migoya Chief Executive Officer Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Exhibit 12.2 CERTIFICATION PURSUANT TO SECTION 302OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. §1350) I, Juan Urthiague, certify that: 1.I have reviewed this annual report on Form 20-F of Globant S.A. (the “Company”) for the fiscal year ended December 31, 2018; 2.Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3.Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects thefinancial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this annual report; 4.The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined inExchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)),for the Company and have: (a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensurethat material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities,particularly during the period in which this report is being prepared; (b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under oursupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for externalpurposes in accordance with generally accepted accounting principles; (c)Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about theeffectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (d)Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the period covered by the annualreport that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and 5.The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to theCompany’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions): (a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonablylikely to adversely affect the Company’s ability to record, process, summarize and report financial information; and (b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control overfinancial reporting. Date: March 29, 2019 /s/ Juan Urthiague Juan Urthiague Chief Financial Officer Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Exhibit 13.1 Officer Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), theundersigned officer of Globant S.A (the “Company”), hereby certifies, to such officer’s knowledge, that: The annual report on Form 20-F for the year ended December 31, 2018 (the “Report”) of the Company fully complies with the requirements ofsection 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in the Report fairly presents, in all material respects, thefinancial condition and results of operations of the Company. Date: March 29, 2019 /s/ Martín Migoya Martín Migoya Chief Executive Officer Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Exhibit 13.2 Officer Certifications Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), theundersigned officer of Globant S.A (the “Company”), hereby certifies, to such officer’s knowledge, that: The annual report on Form 20-F for the year ended December 31, 2018 (the “Report”) of the Company fully complies with the requirements ofsection 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in the Report fairly presents, in all material respects, thefinancial condition and results of operations of the Company. Date: March 29, 2019 /s/ Juan Urthiague Juan Urthiague Chief Financial Officer Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. Exhibit 15.1 Deloitte & Co. S.A.Florida 234, 5° pisoC1005AAFCiudad Autónomade Buenos AiresArgentina Tel.: (+54-11) 4320-2700Fax: (+54-11) 4325-8081/4326-7340www.deloitte.com/ar CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM We consent to the incorporation by reference in registration statements No. 333-201602 and 333-211835 on Form S-8 and No. 333-225731 on Form F-3 ofour reports dated March 22, 2019, relating to (1) the consolidated financial statements of Globant S.A. and (2) the effectiveness of Globant S.A.’s internalcontrol over financial reporting, appearing in the annual report on Form 20-F of Globant S.A. for the year ended December 31, 2018. /s/ Deloitte & Co. S.A. City of Buenos Aires, Argentina March 29, 2019 Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, andtheir related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does notprovide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms. Deloitte Touche Tomatsu Limited is a private Company limited by guarantee incorporated in England & Wales under Company number 07271800, and itsregistered office is Hill House, 1 Little new Street, London, EC4a, 3TR, United Kingdom. Source: Globant S.A., 20-F, March 29, 2019Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.

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