Document:

Exhibit 10.11

 

THIS EXPENSE ADVANCEMENT
AGREEMENT (this “Agreement”), dated as of October 24, 2014, is made and entered into by and among Hydra
Industries Acquisition Corp., a Delaware corporation (the “Company”), and Hydra Industries Sponsor
LLC and MIHI LLC (collectively, the “Sponsors”).

 

RECITALS

 

WHEREAS, the
Company is engaged in an initial public offering (the “Offering”) pursuant to which the Company will
issue and deliver up to 9,200,000 units (the “Units”) (including up to 1,200,000 Units subject to an
over-allotment option granted to the underwriters of the Offering), with each Unit comprised of one share of common stock, par
value $0.0001 per share (the “Common Stock”), of the Company, one right (each, a “Right,”
and collectively, the “Rights”) to receive one-tenth of one share of Common Stock upon the Company’s
completion of a Business Combination (as defined below) and one warrant, each warrant exercisable to purchase one-half of one share
of Common Stock at $5.75 per half share ($11.50 per whole share), subject to certain adjustments (each, a “Warrant,”
and collectively, the “Warrants”);

 

WHEREAS, the
Company has filed with the Securities and Exchange Commission a registration statement on Form S-1, No. 333-198236 (the
“Registration Statement”) for the registration, under the Securities Act of 1933, as amended (the “Securities
Act”), of the Units, the Rights, the Warrants and the Common Stock underlying the Units, including a prospectus (the
“Prospectus”);

 

WHEREAS, the
gross proceeds of the Offering will be deposited in a trust account (the “Trust Account”) at J.P. Morgan
Chase Bank, N.A. and managed by Continental Stock Transfer & Trust Company, as trustee, as described in the Registration Statement
and the Prospectus; and

 

WHEREAS, the
Sponsors desire to enter into this Agreement in order to facilitate the Offering and the other transactions contemplated in the
Registration Statement and the Prospectus, including any merger, capital stock exchange, asset acquisition, stock purchase, reorganization
or other similar business combination by the Company with one or more businesses (a “Business Combination”).

 

NOW, THEREFORE,
in consideration of the representations, covenants and agreements contained herein, and certain other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as
follows:

 

1.             (a)         From
time to time, as may be requested by the Company, the Sponsors agree to advance to the Company up to $500,000 in the aggregate,
allocated in accordance with Schedule I hereto, in each instance pursuant to the terms of the form of promissory note attached
as Exhibit A hereto (the “Note”), as may be necessary to fund the Company’s expenses relating
to investigating and selecting a target business and other working capital requirements following the Offering and prior to any
potential Business Combination.

 

(b)          The
Sponsors represent to the Company that they are capable of making such advances, collectively, to satisfy their obligations under
clause (a) of this Section 1.

 

(c)          Notwithstanding
anything to the contrary herein or in the Note, Sponsors hereby waive any and all right, title, interest or claim of any kind ("Claim") in
or to any distribution of the Trust Account in which the proceeds of the Offering, as described in greater detail in the Registration
Statement and the Prospectus, will be deposited, and hereby agree not to seek recourse, reimbursement, payment or satisfaction
for any Claim against the Trust Account for any reason whatsoever; provided, however, that if the Company completes its Business
Combination, the Company shall repay such loaned amounts out of the proceeds released to the Company from the Trust Account.

 

    	 

    	 

    

  

2.           This
Agreement, together with the Note, constitutes the entire agreement and understanding of the parties hereto in respect of the subject
matter hereof and supersedes all prior understandings, agreements, or representations by or among the parties hereto, written or
oral, to the extent they relate in any way to the subject matter hereof or the transactions contemplated hereby. This Agreement
may not be changed, amended, modified or waived (other than to correct a typographical error) as to any particular provision, except
by a written instrument executed by the parties hereto.

 

3.           No
party may assign either this Agreement or any of his, her or its rights, interests, or obligations hereunder without the prior
written consent of the other party. Any purported assignment in violation of this paragraph shall be void and ineffectual and shall
not operate to transfer or assign any interest or title to the purported assignee. This Agreement shall be binding on the undersigned
and each of his or its heirs, personal representatives, successors and assigns.

 

4.           Any
notice, statement or demand authorized by this Agreement shall be sufficiently given (i) when so delivered if by hand or overnight
delivery, (ii) the date and time shown on a telefacsimile transmission confirmation, or (iii) if sent by certified mail or private
courier service within five (5) days after deposit of such notice, postage prepaid. Such notice, statement or demand shall
be addressed as follows:

 

If to the Company or
Hydra Industries Sponsor LLC:

 

Hydra Industries Acquisition
Corp.

3 Columbus Circle

16th Floor

New York, NY 10019

Attn: Jeffrey S. Lipkin

Facsimile: (646) 619-4266

 

with a copy in each case (which shall not constitute notice)
to:

 

Ellenoff Grossman &
Schole LLP

1345 Avenue of the
Americas

New York, New York
10105

Attn: Stuart Neuhauser,
Esq.

Facsimile: (212) 370-7889

 

If to MIHI LLC:

 

c/o Macquarie Capital (USA) Inc.

125 West 55th Street, L-22

New York, NY 10019-5369

Attn: Jin Chun

Facsimile: (212) 231-1717

  

    	 

    	 

    

  

with a copy in each case (which shall not constitute notice)
to:

 

Skadden, Arps, Slate, Meagher & Flom
LLP

525 University Avenue

Palo Alto, California 94301

Attn: Thomas J. Ivey

Fascimile: (650) 798-6549

 

5.          This
Agreement may be executed in any number of original or facsimile counterparts and each of such counterparts shall for all purposes
be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

 

6.          This
Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the
validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid
or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision
as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable.

 

7.          This
Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving
effect to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction. The
parties hereto (i) agree that any action, proceeding, claim or dispute arising out of, or relating in any way to, this Agreement
shall be brought and enforced in the courts of New York, in the State of New York, and irrevocably submits to such jurisdiction
and venue, which jurisdiction and venue shall be exclusive and (ii) waive any objection to such exclusive jurisdiction and venue
or that such courts represent an inconvenient forum.

 

[Signature Page Follows]

 

    	 

    	 

    

  

IN WITNESS WHEREOF, the undersigned
have caused this Agreement to be executed as of the date first written above.

 

	 	HYDRA INDUSTRIES ACQUISITION

CORP., a Delaware corporation
	 	 	 
	 	By:	 /s/ Martin E. Schloss
	 	 	Name: Martin E. Schloss
	 	 	Title: Executive Vice President and Secretary

 

	 	PURCHASERS:
	 	 
	 	HYDRA INDUSTRIES SPONSOR LLC
	 	 	 	 
	 	By:	 	
         /s/A.
        Lorne Weil

	 	 	 	Name: A. Lorne Weil
	 	 	 	Title:  Managing Member
	 	 	 	 
	 	
         MIHI LLC

	 	 	 	 
	 	By:	 	
         /s/Duncan
        Murdoch

	 	 	 	Name: Duncan Murdoch
	 	 	 	Title:  Vice President
	 	 	 	 
	 	By:	 	 /s/Drew Reid
	 	 	 	Name: Drew Reid
	 	 	 	Title:  Authorized Signatory

 

    	 

    	 

    

  

Schedule I

 

Allocation

 

To be allocated 50% for each of MIHI LLC and Hydra Industries
Sponsor LLC. 

 

    	 

    	 

    

  

Exhibit A

 

Promissory Note

 

    	 

    	 

    

  

THIS PROMISSORY NOTE (“NOTE”)
HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).  THIS NOTE HAS
BEEN ACQUIRED FOR INVESTMENT ONLY AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF REGISTRATION OF THE RESALE THEREOF
UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY IN FORM, SCOPE AND SUBSTANCE TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED.  

 

PROMISSORY NOTE

 

	 	 Dated as of _____, 2014
	 	 
	Principal Amount:  $____________ 	New York, New York

  

             
Pursuant to that certain Expense Advance Agreement (the “Agreement”), dated as of October 24, 2014, by and between
Hydra Industries Acquisition Corp., a Delaware corporation (the “Maker”), and [________] (the “Payee”),
the Maker hereby promises to pay to the order of the Payee or its registered assigns or successors in interest, or order, the principal
sum of _________ Dollars ($_________) in lawful money of the United States of America, on the terms and conditions described below.  All
payments on this Note shall be made by check or wire transfer of immediately available funds or as otherwise determined by the
Maker to such account as the Payee may from time to time designate by written notice in accordance with the provisions of this
Note. Certain terms used herein but not defined herein shall have the meaning given to such terms in the Agreement.

 

1.            Principal. The
principal balance of this Note shall be payable on the date on which Maker consummates its Businesses Combination. The principal
balance may be prepaid at any time.

 

2.            Interest. No
interest shall accrue on the unpaid principal balance of this Note.

 

3.            Application
of Payments. All payments shall be applied first to payment in full of any costs incurred in the collection of any sum
due under this Note, including (without limitation) reasonable attorney’s fees, then to the payment in full of any late charges
and finally to the reduction of the unpaid principal balance of this Note.

 

4.            Events
of Default. The following shall constitute an event of default (“Event of Default”):

 

(a)           Failure
to Make Required Payments. Failure by Maker to pay the principal amount due pursuant to this Note within five (5) business
days of the date specified above.

 

(b)           Voluntary
Bankruptcy, Etc. The commencement by Maker of a voluntary case under any applicable bankruptcy, insolvency, reorganization,
rehabilitation or other similar law, or the consent by it to the appointment of or taking possession by a receiver, liquidator,
assignee, trustee, custodian, sequestrator (or other similar official) of Maker or for any substantial part of its property, or
the making by it of any assignment for the benefit of creditors, or the failure of Maker generally to pay its debts as such debts
become due, or the taking of corporate action by Maker in furtherance of any of the foregoing.

  

    	 

    	 

    

  

(c)           Involuntary
Bankruptcy, Etc. The entry of a decree or order for relief by a court having jurisdiction in the premises in respect of Maker
in an involuntary case under any applicable bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator,
assignee, custodian, trustee, sequestrator (or similar official) of Maker or for any substantial part of its property, or ordering
the winding-up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period
of 60 consecutive days.

 

5.            Remedies.

 

(a)           Upon
the occurrence of an Event of Default specified in Section 4(a) hereof, Payee may, by written notice to Maker, declare this Note
to be due immediately and payable, whereupon the unpaid principal amount of this Note, and all other amounts payable thereunder,
shall become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby
expressly waived, anything contained herein or in the documents evidencing the same to the contrary notwithstanding.

 

(b)           Upon
the occurrence of an Event of Default specified in Sections 4(b) and 4(c), the unpaid principal balance of this Note, and all other
sums payable with regard to this Note, shall automatically and immediately become due and payable, in all cases without any action
on the part of Payee.

 

6.            Waivers. Maker
and all endorsers and guarantors of, and sureties for, this Note waive presentment for payment, demand, notice of dishonor, protest,
and notice of protest with regard to the Note, all errors, defects and imperfections in any proceedings instituted by Payee under
the terms of this Note, and all benefits that might accrue to Maker by virtue of any present or future laws exempting any property,
real or personal, or any part of the proceeds arising from any sale of any such property, from attachment, levy or sale under execution,
or providing for any stay of execution, exemption from civil process, or extension of time for payment; and Maker agrees that any
real estate that may be levied upon pursuant to a judgment obtained by virtue hereof, on any writ of execution issued hereon, may
be sold upon any such writ in whole or in part in any order desired by Payee.

 

7.            Unconditional
Liability. Maker hereby waives all notices in connection with the delivery, acceptance, performance, default, or enforcement
of the payment of this Note, and agrees that its liability shall be unconditional, without regard to the liability of any other
party, and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or
consented to by Payee, and consents to any and all extensions of time, renewals, waivers, or modifications that may be granted
by Payee with respect to the payment or other provisions of this Note, and agrees that additional makers, endorsers, guarantors,
or sureties may become parties hereto without notice to Maker or affecting Maker’s liability hereunder.

 

8.            Notices. All
notices, statements or other documents which are required or contemplated by this Agreement shall be: (i) in writing and delivered
personally or sent by first class registered or certified mail, overnight courier service or facsimile or electronic transmission
to the address designated in writing, (ii) by facsimile to the number most recently provided to such party or such other address
or fax number as may be designated in writing by such party and (iii) by electronic mail, to the electronic mail address most recently
provided to such party or such other electronic mail address as may be designated in writing by such party.  Any notice
or other communication so transmitted shall be deemed to have been given on the day of delivery, if delivered personally, on the
business day following receipt of written confirmation, if sent by facsimile or electronic transmission, one (1) business day after
delivery to an overnight courier service or five (5) days after mailing if sent by mail.

 

    	 

    	 

    

  

9.            Construction. THIS
NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS THEREOF.

 

10.          Severability. Any
provision contained in this Note which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

11.          Trust
Waiver.  Notwithstanding anything herein to the contrary, the Payee hereby waives any Claim in or to any distribution
of or from the Trust Account, and hereby agrees not to seek recourse, reimbursement, payment or satisfaction for any Claim against
the Trust Account for any reason whatsoever; provided, however, that if the Maker completes its Business Combination, the Maker
shall repay the principal balance of this Note out of the proceeds released to the Maker from the Trust Account.

 

12.          Amendment;
Waiver.  Any amendment hereto or waiver of any provision hereof may be made with, and only with, the written consent
of the Maker and the Payee.

 

13.          Assignment.  No
assignment or transfer of this Note or any rights or obligations hereunder may be made by any party hereto (by operation of law
or otherwise) without the prior written consent of the other party hereto and any attempted assignment without the required consent
shall be void; provided, however, that the foregoing shall not apply to an affiliate of the Payee who agrees to be bound
to the terms of this Note.

 

		14.	Conversion.

 

(a)          At the Payee’s option,
at any time prior to payment in full of the principal balance of this Note, the Payee may elect to convert all or any portion of
this Note into that number of warrants (the “Conversion Warrants”) equal to: (i) the portion of the principal
amount of the Note being converted pursuant to this Section 14, divided by (ii) $0.50, rounded up to the nearest whole number.
Each Conversion Warrant shall have the same terms and conditions as the warrants issued by the Maker pursuant to a private placement,
as described in Maker’s Registration Statement on Form S-1 (333-198236). The Conversion Warrants, the shares of Common Stock
underlying the Conversion Warrants and any other equity security of Maker issued or issuable with respect to the foregoing by way
of a stock dividend or stock split or in connection with a combination of shares, recapitalization, amalgamation, consolidation
or reorganization (the “Warrant Shares”), shall be entitled to the registration rights set forth in Section
15 hereof.

 

(b)          Upon any complete or partial
conversion of the principal amount of this Note, (i) such principal amount shall be so converted and such converted portion of
this Note shall become fully paid and satisfied, (ii) the Payee shall surrender and deliver this Note, duly endorsed, to Maker
or such other address which Maker shall designate against delivery of the Conversion Warrants, (iii) Maker shall promptly deliver
a new duly executed Note to the Payee in the principal amount that remains outstanding, if any, after any such conversion and (iv)
in exchange for all or any portion of the surrendered Note, Maker shall deliver to Payee the Conversion Warrants, which shall bear
such legends as are required, in the opinion of counsel to Maker or by any other agreement between Maker and the Payee and applicable
state and federal securities laws.

 

(c)          The Payee shall pay any and
all issue and other taxes that may be payable with respect to any issue or delivery of the Conversion Warrants upon conversion
of this Note pursuant hereto; provided, however, that the Payee shall not be obligated to pay any transfer taxes resulting from
any transfer requested by the Payee in connection with any such conversion.

 

    	 

    	 

    

  

(d)          The Conversion Warrants shall
not be issued upon conversion of this Note unless such issuance and such conversion comply with all applicable provisions of law.

 

		15.	Registration Rights.

 

(a)          Reference is made to that certain
Registration Rights Agreement between the Maker and the parties thereto, dated as of the date hereof (the “Registration
Rights Agreement”). All capitalized terms used in this Section 15 shall have the same meanings ascribed to them in the
Registration Rights Agreement.

 

(b)          The holders (“Holders”)
of the Conversion Warrants (or the Warrant Shares) shall be entitled to one Demand Registration, which shall be subject to the
same provisions as set forth in Section 2.1 of the Registration Rights Agreement.

 

(c)          The Holders shall also be entitled
to include the Conversion Warrants (or the Warrant Shares) in Piggyback Registrations, which shall be subject to the same provisions
as set forth in Section 2.2 of the Registration Rights Agreement; provided, however, that in the event that an underwriter advises
the Maker that the Maximum Number of Securities has been exceeded with respect to a Piggyback Registration, the Holders shall not
have any priority for inclusion in such Piggyback Registration.

 

(d)          Except as set forth above, the
Holders and the Maker, as applicable, shall have all of the same rights, duties and obligations set forth in the Registration Rights
Agreement.

  

[Signature Page Follows]

 

    	 

    	 

    

  

IN WITNESS WHEREOF, Maker, intending
to be legally bound hereby, has caused this Note to be duly executed by the undersigned as of the day and year first above written. 

 

	 	Hydra Industries Acquisition Corp.	 
	 	 	 	 
	 	By:	 	 
	 	 	Name: 	 
	 	 	Title:Exhibit 10.12

 

Hydra Industries Acquisition Corp.

3 Columbus Circle, 16th Floor

New York, NY 10019

October 24, 2014

MIHI LLC

125 West 55th Street

New York, NY 10019

 

	 	Re:	Contingent Forward Purchase Contract

 

Ladies and Gentlemen:

 

We are pleased to accept
the offer MIHI LLC (the “Subscriber” or “you”) has made to purchase an aggregate of (i) 2,000,000
units (the “Units”) of Hydra Industries Acquisition Corp., a Delaware corporation (the “Company”),
each Unit comprising one share of Common Stock of the Company, par value $0.0001 per share (“Common Stock” or
“Share”), one right to receive one-tenth (1/10) of a Share (“Right”) and one warrant to purchase
one-half of one Share (“Warrant”) and (ii) 500,000 Shares (the “Founder Shares”), for an
aggregate purchase price of $20,004,347.83. The Units, Shares, Rights, Warrants and Founder Shares, collectively, are hereinafter
referred to as the “Securities”. Each holder of Rights will receive one-tenth (1/10) of a Share per Right upon
consummation of the Company’s initial business combination (the “Business Combination”). For example,
if Subscriber holds ten Rights, Subscriber would receive one share of Common Stock upon consummation of the Business Combination
pursuant to the ten Rights. Each Warrant is exercisable to purchase one-half of one Share at an exercise price of $5.75 per half
Share during the period commencing on the later of (i) twelve (12) months from the date of the closing of the Company’s initial
public offering of units, each comprising one share of Common Stock, one Warrant and one Right (the “IPO”) and
(ii) thirty (30) days following the consummation of the Business Combination and expiring on the fifth anniversary of the
consummation of the Business Combination. Warrants must be exercised for one whole share of Common Stock. For example, if Subscriber
holds two Warrants, such Warrants will be exercisable for one share of Common Stock at a price of $11.50 per share. No fractional
shares of Common Stock will be issued upon exercise of the Warrants. If, upon exercise of the Warrants, a holder would be entitled
to receive a fractional interest in a Share, we will, upon exercise, round down to the nearest whole number the number of shares
of Common Stock to be issued to the warrant holder. The terms (this “Agreement”) on which the Company is willing
to sell the Securities to the Subscriber, and the Company and the Subscriber’s agreements regarding such Securities, are
as follows:

 

1. Purchase
of the Securities. For the sum of $20,004,347.83 (the “Purchase Price”), the Company agrees to sell the
Securities to the Subscriber, and the Subscriber hereby agrees to purchase the Securities from the Company, subject to the terms
and subject to the conditions set forth in this Agreement.

 

2. Representations,
Warranties and Agreements.

 

 

2.1Subscriber’s
Representations, Warranties and Agreements. To induce the Company to issue the Securities to the Subscriber, the Subscriber
hereby represents and warrants to the Company and agrees with the Company as follows:

 

    	 

    	 

    

 

2.1.1No Government
Recommendation or Approval. The Subscriber understands that no federal or state agency has passed upon or made any recommendation
or endorsement of the offering of the Securities.

 

 

2.1.2No Conflicts.
The execution, delivery and performance of this Agreement and the consummation by the Subscriber of the transactions contemplated
hereby do not violate, conflict with or constitute a default under (i) the formation and governing documents of the Subscriber,
(ii) any agreement, indenture or instrument to which the Subscriber is a party, (iii) any law, statute, rule or regulation to which
the Subscriber is subject, or (iv) any agreement, order, judgment or decree to which the Subscriber is subject.

 

 

2.1.3Organization
and Authority. The Subscriber is a Delaware limited liability company, validly existing and in good standing under the laws
of Delaware and possesses all requisite power and authority necessary to carry out the transactions contemplated by this Agreement.
Upon execution and delivery by you, this Agreement is a legal, valid and binding agreement of Subscriber, enforceable against Subscriber
in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance
or similar laws affecting the enforcement of creditors’ rights generally and subject to general principles of equity (regardless
of whether enforcement is sought in a proceeding at law or in equity).

 

 

2.1.4Experience,
Financial Capability and Suitability. Subscriber is: (i) sophisticated in financial matters and is able to evaluate the risks
and benefits of the investment in the Securities and (ii) able to bear the economic risk of its investment in the Securities for
an indefinite period of time because the Securities have not been registered under the Securities Act (as defined below) and therefore
cannot be sold unless subsequently registered under the Securities Act or an exemption from such registration is available. Subscriber
is capable of evaluating the merits and risks of its investment in the Company and has the capacity to protect its own interests.
Subscriber must bear the economic risk of this investment until the Securities are sold pursuant to: (i) an effective registration
statement under the Securities Act or (ii) an exemption from registration available with respect to such sale. Subscriber is able
to bear the economic risks of an investment in the Securities and to afford a complete loss of Subscriber’s investment in
the Securities.

 

 

2.1.5Access
to Information; Independent Investigation. Prior to the execution of this Agreement, the Subscriber has had the opportunity
to ask questions of and receive answers from representatives of the Company concerning an investment in the Company, as well as
the finances, operations, business and prospects of the Company, and the opportunity to obtain additional information to verify
the accuracy of all information so obtained. In determining whether to make this investment, Subscriber has relied solely on Subscriber’s
own knowledge and understanding of the Company and its business based upon Subscriber’s own due diligence investigation and
the information furnished pursuant to this paragraph. Subscriber understands that no person has been authorized to give any information
or to make any representations which were not furnished pursuant to this Section 2 and Subscriber has not relied on any other representations
or information in making its investment decision, whether written or oral, relating to the Company, its operations and/or its prospects.

 

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2.1.6Regulation
D Offering. Subscriber represents that it is an “accredited investor” as such term is defined in Rule 501(a) of
Regulation D under the Securities Act of 1933, as amended (the “Securities Act”) and acknowledges the sale contemplated
hereby is being made in reliance on a private placement exemption to “accredited investors” within the meaning of Section
501(a) of Regulation D under the Securities Act or similar exemptions under state law.

 

2.1.7Investment
Purposes. The Subscriber is purchasing the Securities solely for investment purposes, for the Subscriber’s own account
and not for the account or benefit of any other person, and not with a view towards the distribution or dissemination thereof.
The Subscriber did not decide to enter into this Agreement as a result of any general solicitation or general advertising within
the meaning of Rule 502 under the Securities Act.

 

2.1.8Restrictions
on Transfer; Shell Company. Subscriber understands the Securities are being offered in a transaction not involving a public
offering within the meaning of the Securities Act. Subscriber understands the Securities will be “restricted securities”
within the meaning of Rule 144(a)(3) under the Securities Act and Subscriber understands that any certificates representing the
Securities will contain a legend in respect of such restrictions. If in the future the Subscriber decides to offer, resell, pledge
or otherwise transfer the Securities, such Securities may be offered, resold, pledged or otherwise transferred only pursuant to:
(i) registration under the Securities Act, or (ii) an available exemption from registration. Subscriber agrees that if any transfer
of its Securities or any interest therein is proposed to be made, as a condition precedent to any such transfer, Subscriber may
be required to deliver to the Company an opinion of counsel satisfactory to the Company. Absent registration or an exemption, the
Subscriber agrees not to resell the Securities. Subscriber further acknowledges that because the Company is a shell company, Rule
144 may not be available to the Subscriber for the resale of the Securities until one (1) year following consummation of the Business
Combination, despite technical compliance with the requirements of Rule 144 and the release or waiver of any contractual transfer
restrictions.

 

2.1.9No Governmental
Consents. No governmental, administrative or other third party consents or approvals are required, necessary or appropriate
on the part of Subscriber in connection with the transactions contemplated by this Agreement, other than the filing of a Form D
with the Securities and Exchange Commission and such state Blue Sky, FINRA and NASDAQ consents and approvals as may be required.

 

2.2Company’s
Representations, Warranties and Agreements. To induce the Subscriber to purchase the Securities, the Company hereby represents
and warrants to the Subscriber and agrees with the Subscriber as follows:

 

2.2.1Organization
and Corporate Power. The Company is a Delaware corporation and is qualified to do business in every jurisdiction in which the
failure to so qualify would reasonably be expected to have a material adverse effect on the financial condition, operating results
or assets of the Company. The Company possesses all requisite corporate power and authority necessary to carry out the transactions
contemplated by this Agreement.

 

2.2.2No Conflicts.
The execution, delivery and performance of this Agreement and the consummation by the Company of the transactions contemplated
hereby do not violate, conflict with or constitute a default under (i) the Certificate of Incorporation or Bylaws of the Company,
(ii) any agreement, indenture or instrument to which the Company is a party or (iii) any law, statute, rule or regulation to which
the Company is subject, or (iv) any agreement, order, judgment or decree to which the Company is subject.

 

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2.2.3Title to
Securities. Upon issuance in accordance with, and payment pursuant to, the terms hereof, the Securities will be duly and validly
issued, fully paid and non-assessable. Upon issuance in accordance with, and payment pursuant to, the terms hereof the Subscriber
will have or receive good title to the Securities, free and clear of all liens, claims and encumbrances of any kind, other than
(a) transfer restrictions under federal and state securities laws, and (b) liens, claims or encumbrances imposed due to the actions
of the Subscriber. The Company will reserve sufficient Shares to permit full exercise of the Warrants.

 

2.2.4No Adverse
Actions. There are no actions, suits, investigations or proceedings pending, threatened against or affecting the Company which:
(i) seek to restrain, enjoin, prevent the consummation of or otherwise affect the transactions contemplated by this Agreement or
(ii) question the validity or legality of any transactions or seeks to recover damages or to obtain other relief in connection
with any transactions.

 

2.2.5Authorization.
All corporate action on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution
and delivery of this Agreement, the Securities, the performance of all obligations of the Company required pursuant thereto, and
the authorization, issuance (or reservation for issuance) of the Securities, has been taken. This Agreement constitutes and, when
issued, the Units, Rights and Warrants will constitute, valid and legally binding obligations of the Company, enforceable in accordance
with their respective terms, subject to: (i) judicial principles limiting the availability of specific performance, injunctive
relief, and other equitable remedies and (ii) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter
in effect generally relating to or affecting creditors’ rights.

 

2.2.6Capitalization.
The authorized capital stock of the Company on the date hereof, consists of 29,000,000 shares of Common Stock, 2,300,000 shares
of which are issued and outstanding, and 1,000,000 shares of preferred stock, no shares of which are issued and outstanding. All
issued and outstanding shares of the Company’s Common Stock (a) have been duly authorized and validly issued, and (b) are
fully paid and non-assessable. The rights, preferences, privileges and restrictions of the Common Stock are as stated in the Certificate
of Incorporation currently on file with the Delaware Secretary of State. There are no outstanding rights, options, warrants, preemptive
rights, rights of first refusal or similar rights for the purchase or acquisition from the Company of any securities of the Company.

 

3. Settlement
Date and Delivery.

 

3.1Closing.
The settlement of the contingent forward purchase contract for the purchase and sale of the Securities hereunder (the “Closing”)
shall be held at the same date and time as the closing of the Business Combination (the date of the Closing being referred to as
the “Closing Date”). At the Closing, the Company will issue to the Subscriber the Units (which includes 2,000,000
Rights which will at the Closing be concurrently exchanged for 200,000 shares of Common Stock) and the Founder Shares, each registered
in the name of the Subscriber, against delivery of the aggregate purchase price of $20,004,347.83 in cash via a wire to an account
specified in writing by the Company no later than five (5) business days prior to the Closing.

 

    	4

    	 

    

 

3.2Conditions
to Closing of the Company.

 

The Company’s obligations to sell
and issue the Securities at the Closing are subject to the fulfillment of the following conditions:

 

3.2.1Representations.
The representations made by the Subscriber in Section 2 of this Agreement shall be true and correct in all material respects when
made, and shall be true and correct in all material respects on the applicable Closing Date.

 

3.2.2Blue Sky.
The Company shall have obtained all necessary Blue Sky law permits and qualifications, or secured an exemption therefrom, required
by any state for the offer and sale of the Securities.

 

3.3Conditions
to Closing of the Subscriber.

 

The Subscriber’s obligation to purchase
the Securities at the Closing is subject to the fulfillment on or prior to the Closing Date of each of the following conditions:

 

3.3.1Representations
and Warranties Correct. The representations and warranties made by the Company in Section 2 hereof shall be true and correct
in all material respects when made and shall be true and correct in all material respects on and as of the Closing Date (unless
they specifically speak as of another date in which case they shall be true and correct in all material respects as of such date)
with the same force and effect as if they had been made on and as of said date.

 

3.3.2Covenants.
All covenants, agreements and conditions contained in this Agreement to be performed by the Company on or prior to the Closing
Date shall have been performed or complied with in all material respects.

 

3.3.3Blue Sky.
The Company shall have obtained all necessary Blue Sky law permits and qualifications, or secured an exemption therefrom, required
by any state for the offer and sale of the Securities.

 

3.3.4Subscriber
Consent. The Subscriber shall have given written consent (in its capacity as a party to this agreement and not as a director
or existing stockholder), which may be given by e-mail, to the Business Combination (which it may withhold at its sole discretion)
which shall be withheld or granted no later than 48 hours after receipt of notification that the Board of the Company has met and
agreed to enter into a definitive acquisition agreement for the Business Combination. The Business Combination shall be consummated
concurrently with the Closing but only on substantially the terms approved by the Subscriber without any waiver of any failure
to satisfy a condition to close the Business Combination, except for waivers of satisfying conditions to close the Business Combination
the failure of which, in the aggregate, are immaterial.

 

3.3.5Ancillary
Documents. The Company and Subscriber shall have entered into a registration rights agreement as described in Section 5.5,
an agreement among sponsors, and an insider letter each in the last form previously provided to the Subscriber. The Company and
Macquarie Capital (USA) Inc. shall have entered into a right of first refusal for the provision of investment banking services.

 

    	5

    	 

    

 

3.3.6IPO Closing.
The Company shall have consummated an IPO raising at least $75 million in gross proceeds.

 

4. Terms of
the Units, Rights and Warrants.

 

4.1The Rights will
be substantially identical to the Rights to be included in the units offered in the IPO as set forth in the Rights Agreement to
be entered into with Continental Stock Transfer and Trust Company at or prior to the IPO (the “Rights Agreement”).

 

4.2The Warrants will
be substantially identical to the Warrants to be included in the units offered in the IPO as set forth in the Warrant Agreement
to be entered into with Continental Stock Transfer and Trust Company at or prior to the IPO (the “Warrant Agreement”),
except that the Warrants: (i) will be non-redeemable so long as they are held by the initial holder thereof (or any of its permitted
transferees), and (ii) are exercisable on a “cashless” basis if held by Subscriber or its permitted transferees.

 

4.3The Units and
their component parts will be substantially identical to the units to be offered in the IPO except that the Units and component
parts are being purchased pursuant to an exemption from the registration requirements of the Securities Act and will become freely
tradable only after they are registered pursuant to the Registration Rights Agreement to be signed on or before the date of the
Company’s registration statement to be filed in connection with the IPO, as amended at the time it becomes effective (the
“Registration Statement”).

 

5. Restrictions
on Transfer.

 

5.1Securities
Law Restrictions. In addition to any restrictions to be contained in that certain letter agreement (commonly known as an “Insider
Letter”) dated as of the closing of the IPO by and between Subscriber and the Company and subject to the exceptions contained
in Section 9(a) thereof, Subscriber agrees not to, except to an affiliate of the Subscriber, sell, transfer, pledge, hypothecate
or otherwise dispose of all or any part of the Securities unless, prior thereto (a) a registration statement on the appropriate
form under the Securities Act and applicable state securities laws with respect to the Securities proposed to be transferred shall
then be effective or (b) the Company has received an opinion from counsel reasonably satisfactory to the Company, that such registration
is not required because such transaction is exempt from registration under the Securities Act and the rules promulgated by the
Securities and Exchange Commission thereunder and with all applicable state securities laws.

 

5.2Lock up.
Subscriber acknowledges that the Founder Shares and the shares of Common Stock underlying the Rights included in the Units will
be subject to lock up provisions (the “Lock up”) contained in the Insider Letter. Pursuant to the Insider Letter
and subject to the exceptions contained therein, Subscriber will agree not to, except to an affiliate of the Subscriber, sell,
transfer, pledge, hypothecate or otherwise dispose of all or any part of the Founder Shares and the shares of Common Stock underlying
the Rights included in the Units until the earlier to occur of: (a) one year after the completion of a Business Combination or
(b) the date following the completion of a Business Combination on which the Company completes a liquidation, merger, stock exchange
or other similar transaction that results in all of the Company’s stockholders having the right to exchange their shares
of Common Stock for cash, securities or other property. Notwithstanding the foregoing, in the event Subscriber withholds consent
to consummate a Business Combination because of regulatory reasons or the Business Combination involves a competitor to Subscriber,
its affiliates, or an entity in which Subscriber or an affiliate has an equity interest, then Subscriber shall be permitted to
sell or transfer its Founder Shares and warrants pursuant to Section 3 of that certain Agreement Among Sponsors, dated as of the
date hereof, by and among the Subscriber, the Company, Hydra Industries Sponsor LLC and A. Lorne Weil. Notwithstanding the foregoing,
if the last sale price of the Common Stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations,
recapitalizations and the like) for any 20 trading days within any 30 trading day period commencing at least 150 days after the
Business Combination, the Founder Shares will be released from the Lock up.

 

    	6

    	 

    

 

5.3Restrictive
Legends. All certificates representing the Securities shall have endorsed thereon legends substantially as follows:

 

“THE SECURITIES REPRESENTED HEREBY
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND NEITHER THE SECURITIES
NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER SUCH ACT OR SUCH LAWS OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS WHICH, IN THE OPINION OF COUNSEL
FOR THE COMPANY, IS AVAILABLE.”

 

All certificates representing the Common Stock shall have endorsed
thereon legends substantially as follows:

 

“THE SECURITIES REPRESENTED BY
THIS CERTIFICATE ARE SUBJECT TO A LOCKUP SET FORTH IN AN AGREEMENT DATED OCTOBER 24, 2014 BETWEEN THE COMPANY AND THE SUBSCRIBER
AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED DURING THE TERM OF THE LOCKUP EXCEPT PURSUANT TO ITS TERMS.”

 

5.4Additional
Units or Substituted Securities. In the event of the declaration of a share dividend, the declaration of an extraordinary dividend
payable in a form other than Common Stock, a spin-off, a share split, an adjustment in conversion ratio, a recapitalization or
a similar transaction affecting the Company’s outstanding Common Stock without receipt of consideration (other than those
occurring at the time of the IPO in connection with a change in the size of the offering), any new, substituted or additional securities
or other property which are by reason of such transaction distributed with respect to any Securities subject to this Section 5.4
or into which such Securities thereby become convertible shall immediately be subject to this Section 5.4 and Section 3. Appropriate
adjustments to reflect the distribution of such securities or property shall be made to the number and/or class of Securities subject
to this Section 5.4 and Section 3. The Securities shall not be subject to forfeiture upon failure of the underwriters to exercise
their over-allotment option in the IPO.

 

5.5Registration
Rights. Subscriber acknowledges that the Securities and the shares of Common Stock underlying the Rights are being purchased
pursuant to an exemption from the registration requirements of the Securities Act and will become freely tradable only after certain
conditions are met or they are registered pursuant to a Registration Rights Agreement to be entered into with the Company prior
to the closing of the IPO which shall be on the same terms as such registration rights granted to Hydra Industries Sponsor LLC.

 

    	7

    	 

    

 

6. Other Agreements.

 

6.1Further Assurances.
Each of the Company and Subscriber agrees to execute such further instruments and to take such further action as may reasonably
be necessary to carry out the intent of this Agreement.

 

6.2Notices.
All notices, statements or other documents which are required or contemplated by this Agreement shall be: (i) in writing and delivered
personally or sent by first class registered or certified mail, overnight courier service or facsimile or electronic transmission
to the address designated in writing, (ii) by facsimile to the number most recently provided to such party or such other address
or fax number as may be designated in writing by such party and (iii) by electronic mail, to the electronic mail address most recently
provided to such party or such other electronic mail address as may be designated in writing by such party. Any notice or other
communication so transmitted shall be deemed to have been given on the day of delivery, if delivered personally, on the business
day following receipt of written confirmation, if sent by facsimile or electronic transmission, one (1) business day after delivery
to an overnight courier service or five (5) days after mailing if sent by mail.

 

6.3Entire Agreement.
This Agreement, together with that certain Insider Letter to be entered into between Subscriber and the Company, substantially
in the form to be filed as an exhibit to the Registration Statement, embodies the entire agreement and understanding between the
Subscriber and the Company with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings
relating to the subject matter hereof. No statement, representation, warranty, covenant or agreement of any kind not expressly
set forth in this Agreement shall affect, or be used to interpret, change or restrict, the express terms and provisions of this
Agreement.

 

6.4Modifications
and Amendments. The terms and provisions of this Agreement may be modified or amended only by written agreement executed by
all parties hereto.

 

6.5Waivers and
Consents. The terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only by
written document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent shall be
deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of this Agreement, whether or
not similar. Each such waiver or consent shall be effective only in the specific instance and for the purpose for which it was
given, and shall not constitute a continuing waiver or consent.

 

6.6Assignment.
The rights and obligations under this Agreement may not be assigned by either party hereto without the prior written consent of
the other party, except to an affiliate of the Subscriber.

 

6.7Benefit.
All statements, representations, warranties, covenants and agreements in this Agreement shall be binding on the parties hereto
and shall inure to the benefit of the respective successors and permitted assigns of each party hereto. Nothing in this Agreement
shall be construed to create any rights or obligations except among the parties hereto, and no person or entity shall be regarded
as a third-party beneficiary of this Agreement.

 

6.8Governing Law.
This Agreement and the rights and obligations of the parties hereunder shall be construed in accordance with and governed by the
laws of New York applicable to contracts wholly performed within the borders of such state, without giving effect to the conflict
of law principles thereof.

 

    	8

    	 

    

 

6.9Severability.
In the event that any court of competent jurisdiction shall determine that any provision, or any portion thereof, contained in
this Agreement shall be unreasonable or unenforceable in any respect, then such provision shall be deemed limited to the extent
that such court deems it reasonable and enforceable, and as so limited shall remain in full force and effect. In the event that
such court shall deem any such provision, or portion thereof, wholly unenforceable, the remaining provisions of this Agreement
shall nevertheless remain in full force and effect.

 

6.10No Waiver
of Rights, Powers and Remedies. No failure or delay by a party hereto in exercising any right, power or remedy under this Agreement,
and no course of dealing between the parties hereto, shall operate as a waiver of any such right, power or remedy of such party.
No single or partial exercise of any right, power or remedy under this Agreement by a party hereto, nor any abandonment or discontinuance
of steps to enforce any such right, power or remedy, shall preclude such party from any other or further exercise thereof or the
exercise of any other right, power or remedy hereunder. The election of any remedy by a party hereto shall not constitute a waiver
of the right of such party to pursue other available remedies. No notice to or demand on a party not expressly required under this
Agreement shall entitle the party receiving such notice or demand to any other or further notice or demand in similar or other
circumstances or constitute a waiver of the rights of the party giving such notice or demand to any other or further action in
any circumstances without such notice or demand.

 

6.11Survival of
Representations and Warranties. All representations and warranties made by the parties hereto in this Agreement or in any other
agreement, certificate or instrument provided for or contemplated hereby, shall survive the execution and delivery hereof and any
investigations made by or on behalf of the parties.

 

6.12No Broker
or Finder. Each of the parties hereto represents and warrants to the other that no broker, finder or other financial consultant
has acted on its behalf in connection with this Agreement or the transactions contemplated hereby in such a way as to create any
liability on the other. Each of the parties hereto agrees to indemnify and save the other harmless from any claim or demand for
commission or other compensation by any broker, finder, financial consultant or similar agent claiming to have been employed by
or on behalf of such party and to bear the cost of legal expenses incurred in defending against any such claim.

 

6.13Headings and
Captions. The headings and captions of the various subdivisions of this Agreement are for convenience of reference only and
shall in no way modify or affect the meaning or construction of any of the terms or provisions hereof.

 

6.14Counterparts.
This Agreement may be executed in one or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being
understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or any other form of electronic delivery, such signature shall create a valid and binding obligation of the party executing (or
on whose behalf such signature is executed) with the same force and effect as if such signature page were an original thereof.

 

    	9

    	 

    

 

6.15Construction.
The words “include,” “includes,” and “including” will be deemed to be
followed by “without limitation.” Pronouns in masculine, feminine, and neuter genders will be construed to include
any other gender, and words in the singular form will be construed to include the plural and vice versa, unless the context otherwise
requires. The words “this Agreement,” “herein,” “hereof,” “hereby,”
“hereunder,” and words of similar import refer to this Agreement as a whole and not to any particular subdivision
unless expressly so limited. The parties hereto intend that each representation, warranty, and covenant contained herein will have
independent significance. If any party hereto has breached any representation, warranty, or covenant contained herein in any respect,
the fact that there exists another representation, warranty or covenant relating to the same subject matter (regardless of the
relative levels of specificity) which such party hereto has not breached will not detract from or mitigate the fact that such party
hereto is in breach of the first representation, warranty, or covenant.

 

6.16Mutual Drafting.
This Agreement is the joint product of the Subscriber and the Company and each provision hereof has been subject to the mutual
consultation, negotiation and agreement of such parties and shall not be construed for or against any party hereto.

 

7. Tender or
Redemption of Shares. The Subscriber agrees not to tender any Shares in connection with a tender or redemption offer presented
to the Company’s stockholders in connection with the Business Combination.

 

8. Indemnification.
Each party shall indemnify the other against any loss, cost or damages (including reasonable attorney’s fees and expenses)
incurred as a result of such party’s breach of any representation, warranty, covenant or agreement in this Agreement.

 

[Signature Page Follows]

 

    	10

    	 

    

 

If the foregoing accurately sets forth our
understanding and agreement, please sign the enclosed copy of this Agreement and return it to us.

 

	 	Very truly yours,
	 	 	 
	 	HYDRA INDUSTRIES Acquisition CORP.
	 	 	 
	 	By: 	/s/A. Lorne Weil
	 	Name:  	A. Lorne Weil
	 	Title:  	Chairman and Chief Executive Officer

 

Accepted and agreed this 24th day of October, 2014.

 

MIHI LLC, 

a Delaware
limited liability company 

 

	By:   	/s/Duncan Murdoch	 
	Name:   	Duncan Murdoch	 
	Title:   	Vice President	 

 

 

	By:    	/s/Drew Reid	 
	Name:   	Drew Reid	 
	Title:   	Authorized Signatory	 

 

    	11

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