Document:

Exhibit 10.1

 Exhibit 10.1 

 
  
 HARVEST NATURAL RESOURCES, INC. 
 11.0% Senior Notes due 2014

 and 
 Warrants to Purchase Shares of Common Stock 
 SECURITIES PURCHASE
AGREEMENT 
  
  

Dated as of October 11, 2012 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
		
	 SECTION 1.         PURCHASE AND SALE OF SECURITIES
	  	 	1	  
			
	 1.1
	  	 Issue of Securities
	  	 	1	  
	 1.2
	  	 Purchase and Sale of Securities
	  	 	3	  
	 1.3
	  	 Tax Treatment
	  	 	4	  
	 1.4
	  	 Fees and Expenses
	  	 	5	  
	 1.5
	  	 Registration of Securities
	  	 	5	  
	 1.6
	  	 Delivery Expenses
	  	 	6	  
	 1.7
	  	 Issue Taxes
	  	 	6	  
	 1.8
	  	 Lost, Etc. Securities
	  	 	6	  
	 1.9
	  	 Further Actions
	  	 	7	  
	 1.10
	  	 Other Covenants
	  	 	7	  
	 1.11
	  	 Election to Be Subject to Beneficial Ownership Limitation Provisions
	  	 	8	  
		
	 SECTION 2.         CLOSING CONDITIONS
	  	 	9	  
			
	 2.1
	  	 Delivery of Documents
	  	 	9	  
	 2.2
	  	 Legal Investment; Purchase Permitted by Applicable Laws
	  	 	10	  
	 2.3
	  	 Payment of Fees
	  	 	11	  
	 2.4
	  	 Compliance with Agreements
	  	 	11	  
	 2.5
	  	 Completion of Simultaneous or Prior Transactions
	  	 	11	  
	 2.6
	  	 Proceedings Satisfactory
	  	 	11	  
	 2.7
	  	 Consents and Permits
	  	 	11	  
	 2.8
	  	 No Material Adverse Effect
	  	 	11	  
	 2.9
	  	 No Material Judgment or Order
	  	 	12	  
		
	 SECTION 3.         REPRESENTATIONS AND WARRANTIES OF THE
COMPANY
	  	 	12	  
			
	 3.1
	  	 Authorization; Enforceability
	  	 	12	  
	 3.2
	  	 Capitalization; Existing Registration Rights
	  	 	12	  
	 3.3
	  	 No Violation or Conflict; No Default
	  	 	13	  
	 3.4
	  	 Use of Proceeds
	  	 	14	  
	 3.5
	  	 No Material Adverse Change; Financial Statements
	  	 	14	  
	 3.6
	  	 Exchange Act Documents; Full Disclosure
	  	 	15	  
	 3.7
	  	 Third Party Consents
	  	 	15	  
	 3.8
	  	 Private Offering
	  	 	15	  
	 3.9
	  	 Solvency
	  	 	16	  
	 3.10
	  	 Litigation
	  	 	16	  
	 3.11
	  	 Environmental Compliance
	  	 	16	  
	 3.12
	  	 ERISA Compliance
	  	 	17	  
	 3.13
	  	 Compliance with Laws
	  	 	18	  
	 3.14
	  	 Foreign Assets Control Regulations
	  	 	18	  
	 3.15
	  	 Survival of Representations and Warranties
	  	 	19	  
		
	 SECTION 4.         REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF EACH
PURCHASER
	  	 	19	  

  
 i 

							
	 4.1
	  	 Purchase for Own Account
	  	 	19	  
	 4.2
	  	 Accredited Investor
	  	 	19	  
	 4.3
	  	 Authorization
	  	 	20	  
	 4.4
	  	 Securities Restricted
	  	 	20	  
	 4.5
	  	 ERISA
	  	 	20	  
	 4.6
	  	 Fairness
	  	 	21	  
	 4.7
	  	 Placement Agents and Counsel
	  	 	21	  
		
	 SECTION 5.         REGISTRATION RIGHTS
	  	 	21	  
			
	 5.1
	  	 Registration
	  	 	21	  
	 5.2
	  	 Expenses
	  	 	22	  
	 5.3
	  	 Registration Procedures
	  	 	22	  
	 5.4
	  	 Indemnification
	  	 	24	  
	 5.5
	  	 Certain Obligations of Holders
	  	 	26	  
	 5.6
	  	 Rule 144
	  	 	27	  
		
	 SECTION 6.         DEFINITIONS
	  	 	27	  
			
	 6.1
	  	 Definitions
	  	 	27	  
	 6.2
	  	 Rules of Construction
	  	 	34	  
		
	 SECTION 7.         MISCELLANEOUS
	  	 	35	  
			
	 7.1
	  	 Amendments and Waivers
	  	 	35	  
	 7.2
	  	 Notices
	  	 	35	  
	 7.3
	  	 Successors and Assigns
	  	 	36	  
	 7.4
	  	 Counterparts
	  	 	36	  
	 7.5
	  	 Headings
	  	 	36	  
	 7.6
	  	 Governing Law; Submission to Jurisdiction
	  	 	36	  
	 7.7
	  	 Entire Agreement
	  	 	36	  
	 7.8
	  	 Severability
	  	 	36	  
	 7.9
	  	 Further Assurances
	  	 	37	  

  
 ii 

			
	Annexes:	  	
		
	Annex A	  	Indenture
	Annex B	  	Warrant Agreement
	Annex C	  	Form of Legal Opinion of Special Counsel to the Company
		
	Schedules:	  	
		
	1.1	  	Notices and Numbers of Securities
	3.10	  	Disclosed Litigation
	3.11	  	Environmental Matters
	3.14	  	Anti-Money Laundering Law Events

  
 iii

 SECURITIES PURCHASE AGREEMENT 

This Securities Purchase Agreement dated as of October 11, 2012 is entered into by and among Harvest Natural Resources, Inc., a
Delaware corporation, and the Purchasers listed on the signature pages hereto. 
 Capitalized terms not otherwise defined herein
shall have the meanings ascribed to such terms in Section 6.1. 
 In consideration of the premises, mutual covenants and
agreements hereinafter contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company agrees, and each of the Purchasers severally (but not jointly) agrees, as follows: 

SECTION 1. PURCHASE AND SALE OF SECURITIES. 
  

	1.1	Issue of Securities. 

 (a) On or before the Closing, the Company will have authorized the original issue and sale to the Purchasers, in the respective amounts set forth on Schedule 1.1 hereto, of (i) up to
$80,000,000 aggregate principal amount of its 11.0% Senior Notes due 2014 (the “Notes”) and (ii) warrants (the “Warrants”) to purchase up to an aggregate of 688,913 shares of common stock, par value $0.01 per
share, of the Company (“Common Stock”). The Notes and the Warrants shall each individually be referred to herein as a “Security” and collectively referred to herein as the “Securities.” 

(b) The Securities will be offered and sold to the Purchasers (the “Offering”) pursuant to (i) the
exemption from registration afforded by Section 4(a)(2) of the Securities Act or Regulation S under the Securities Act and (ii) the Company’s offering memorandum dated October 9, 2012, as revised by the revised offering
memorandum dated October 10, 2012 (the “Offering Memorandum”). 
 (c) The Notes will be
issued pursuant to an indenture in the form attached hereto as Annex A (the “Indenture”), to be dated as of the Closing Date, between the Company and U.S. Bank National Association as trustee (the “Trustee”).
Each Note shall be dated the date of its issuance. 
 (d) The Warrants will be issued pursuant to a warrant
agreement substantially in the form attached as Annex B hereto (the “Warrant Agreement”). Each Warrant shall be dated the date of its issuance. The Warrants will be exercisable, in the manner provided in the Warrants, for a
number of shares of Common Stock as provided in the Warrants (the “Warrant Shares”). Each Holder of Warrants or Warrant Shares will have certain registration rights with respect to Warrant Shares and other rights and obligations
with respect to Warrants and Warrant Shares, as provided herein and in the Warrant Agreement. 
 (e) The terms
and provisions contained in the Indenture, the Notes, the Warrant Agreement and the Warrants shall constitute, and are hereby expressly made, a 

 
part of this Agreement and, to the extent applicable, the parties hereto, by their execution and delivery of this Agreement, expressly agree to such terms and provisions and to be bound thereby.

 (f) Upon original issuance thereof, and until such time as the same is no longer required under the applicable
requirements of the Securities Act, the Securities shall bear the following legend: 
 THIS OFFER AND SALE OF THIS SECURITY HAS
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION. 
 THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES, ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, NOT TO OFFER, SELL OR OTHERWISE TRANSFER THIS
SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS IN THE CASE OF RULE 144A SECURITIES: ONE YEAR (OR SUCH SHORTER PERIOD THAT MAY HEREAFTER BE PROVIDED UNDER RULE 144 OR ITS SUCCESSOR RULE AS PERMITTING RESALES
BY NON-AFFILIATES OF RESTRICTED SECURITIES WITHOUT RESTRICTION); OR IN THE CASE OF REGULATION S SECURITIES: [40
DAYS]1 [ONE YEAR]2 AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE
ON WHICH HARVEST NATURAL RESOURCES, INC. (THE “ISSUER”) OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY) EXCEPT (A) TO THE ISSUER, (B) PURSUANT TO A REGISTRATION STATEMENT THAT
HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER”
(AS DEFINED IN RULE 144A) THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S.
PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE
SECURITIES ACT THAT IS PURCHASING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL “ACCREDITED INVESTOR,” FOR INVESTMENT PURPOSES AND NOT WITH A VIEW 

 
  

	1 	 To be included only with respect to debt securities. 

	2 	 To be included only with respect to equity securities. 

  
 2 

 
TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE [TRUSTEE’S]3 [WARRANT AGENT’S]4 RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO THIS CLAUSE (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM,
AND IN EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THIS SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE [TRUSTEE]5 [WARRANT AGENT]6. [EACH HOLDER AGREES NOT TO ENGAGE IN ANY HEDGING TRANSACTIONS WITH REGARDS TO THE WARRANTS OR WARRANT SHARES UNLESS IN
COMPLIANCE WITH THE SECURITIES ACT.]7 THIS LEGEND WILL BE
REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE. 
 Upon original issuance
thereof and until such time as is no longer required under the applicable requirements of the Internal Revenue Code, the Notes shall bear the following legend: 
 THIS NOTE HAS BEEN ISSUED WITH ORIGINAL ISSUE DISCOUNT (“OID”) FOR PURPOSES OF SECTIONS 1271 ET. SEQ. OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. FOR INFORMATION REGARDING THE ISSUE DATE,
ISSUE PRICE, AMOUNT OF OID PER $1,000 OF PRINCIPAL AMOUNT AND YIELD TO MATURITY FOR PURPOSES OF THE OID RULES, PLEASE CONTACT THE CHIEF FINANCIAL OFFICER OF THE COMPANY AT 1177 ENCLAVE PARKWAY, SUITE 300, HOUSTON, TEXAS 77007, FAX:
(281) 899-5702. 
  

	1.2	Purchase and Sale of Securities. 

 (a) The Company agrees to sell and, subject to the terms and conditions set forth herein and in reliance on the representations and warranties of the Company contained or incorporated herein, each of the
Purchasers agrees, severally (but not jointly), to purchase the Securities set forth below such Purchaser’s name on Schedule 1.1 hereto at the purchase price indicated therein. 

(b) The purchase and sale of the Securities shall take place at a closing (the “Closing”) at the offices
of Fulbright & Jaworski L.L.P., Fulbright Tower, 1301 
  

 

	3 	 To be included only with respect to debt securities. 

	4 	 To be included only with respect to warrants. 

	5 	 To be included only with respect to debt securities. 

	6 	 To be included only with respect to warrants. 

	7 	 To be included only with respect to warrants. 

  
 3 

 
McKinney, Suite 5100, Houston, Texas 77010, at 8:30 a.m., Central time, on October 11, 2012, or such other Business Day as may be agreed upon by the Purchasers and the Company (the
“Closing Date”). Payment for the Securities shall be made by wire transfer in immediately available funds to the account(s) specified by the Company to the Placement Agents, or by such other means, and for such other consideration,
as the Company shall approve. Delivery of the Securities being purchased by each Purchaser shall be made through the facilities of DTC in accordance with DTC procedures for book-entry settlement, or if such Purchaser shall so instruct the Company in
writing at least two Business Days prior to Closing, to such Purchaser (in such denomination or denominations and registered in such Purchaser’s name or the name of such nominee or nominees as such Purchaser may request), with any transfer
taxes payable in connection with the sale of the Securities duly paid by the Company. The certificates for the Securities will be made available for inspection by the Placement Agent and its counsel not later than 1:00 P.M., Eastern time, on the
Business Day prior to the Closing Date. 
 (c) Each Purchaser’s obligations hereunder are subject to the
execution and delivery of this Agreement by the other Purchasers listed on the signature pages hereof. The obligations of each Purchaser shall be several and not joint, and no Purchaser shall be liable or responsible for the acts of any other
Purchaser under this Agreement. 
  

	1.3	Tax Treatment. 

 The
Company and the Purchasers agree that the Notes and the Warrants are being issued together as an “investment unit” within the meaning of Section 1273(c)(2) of the Internal Revenue Code. For the purpose of allocating the issue price of
the “investment unit” to the Notes and the Warrants, the Company and the Purchasers agree that the aggregate fair market value of the Notes is $73,874,768.79 and the aggregate fair market value of the Warrants is $2,685,231.21, in each
case, on the date hereof. The Company and the Purchasers agree that the foregoing allocation will be used to determine the issue price of the “investment unit” for purposes of Section 1273(c)(2) of the Internal Revenue Code and
Treasury Regulations Section 1.1273-2(h)(2), and except as otherwise required by applicable Law, to use the foregoing allocation for all applicable Tax purposes with respect to this transaction. The Company and the Purchasers agree
(i) that the Notes are debt for U.S. federal income tax purposes, (ii) that the Notes issued to each Purchaser constitute a single debt instrument for purposes of Sections 1271 through 1275 of the Internal Revenue Code and the Treasury
Regulations thereunder (pursuant to Treasury Regulations Section 1.1275-2(c)), that such debt instrument is issued with original issue discount (“OID”), and that such debt instrument is described in Treasury Regulations
Section 1.1272-1(c)(2) and therefore is governed by the rules set out in Treasury Regulations Section 1.1272-1(c), including Section 1.1272-1(c)(5), and is not governed by the rules set out in Treasury Regulations
Section 1.1275-4, (iii) that any calculation by the Company regarding the amount of OID for any accrual period on the Notes shall be as set forth by the Company in a written statement that shall be prepared by the Company consistent
herewith within forty-five days of the Closing and will be available to each Purchaser upon request and (iv) to adhere to this Agreement for U.S. federal income tax purposes and not to take any action or file any Tax Return, report or
declaration inconsistent herewith (including, with respect to the amount of OID on the Notes, as determined in accordance with the preceding clause (iii)). This paragraph is not an admission by any Purchaser that it is subject to United States
taxation. 

  
 4 

	1.4	Fees and Expenses. 

 (a) Regardless of whether the Securities are sold, the Company agrees to pay or reimburse all expenses and costs relating to the Offering, this Agreement and the other Documents, including without
limitation, the following: 
 (i) the fees and other charges and expenses of Andrews Kurth LLP, as special
counsel to Knight Capital Americas, LLC (“Knight”), in connection with the Offering and Documents; 
 (ii) the cost, if any, of printing, reproducing and delivering to each Purchaser’s home office or the office of such Purchaser’s designee, insured to such Purchaser’s satisfaction the
Documents; 
 (iii) the fees and expenses (including the fees and expenses of counsel) in connection with any
registration or qualification of the Securities required in connection with the offer and sale of the Securities pursuant to this Agreement under the securities or Blue Sky Laws of any jurisdiction requiring such registration or qualification or in
connection with obtaining any exemptions from such requirements; 
 (iv) all fees and expenses (including fees
and expenses of counsel) in connection with the approval of the Notes, the Warrants and the Warrant Shares by DTC for “book-entry” transfer; 
 (v) each Purchaser’s expenses (including the fees and expenses of counsel) relating to any amendment to, or modification of, or any waiver or consent or preservation of rights under, this Agreement
or any of the other Documents; 
 (vi) all costs, expenses, fees and taxes incident to and in connection with the
issuance and delivery of the Notes, including, without limitation, the fees and expenses of the Trustee and the fees and expenses of the Warrant Agent; and 
 (vii) all other expenses, including without limitation counsel’s fees, accountants’ fees incurred by the Company in connection with the transactions contemplated by this Agreement or any of the
other Documents. 
 (b) The Company shall deliver to each of the Purchasers and each of the Placement Agents or
to such other Persons as such Purchaser or Placement Agent shall direct, concurrently with the Closing, by intra-bank or Federal funds bank wire transfer of same day funds, payment for any documented out-of-pocket expenses for which such Purchaser
is entitled to reimbursement pursuant to this Section 1.4. 
  

	1.5	Registration of Securities. 

 The Company shall cause to be kept (a) at the offices of the Registrar (as defined in the Indenture), a register for the registration and transfer of the Notes (the “Notes
Register”), (b) by 

  
 5 

 
the Warrant Agent, a register for the registration and transfer of the Warrants (the “Warrant Register”) in accordance with the terms of the Warrant Agreement and (c) at the
offices of the Transfer Agent, a register for the registration and transfer of the Warrant Shares (the “Common Stock Register”). The names and addresses of the Holders of Notes, each transfer of Notes, and the names and addresses of
the transferees of the Notes, shall be registered in the Notes Register. The names and addresses of the Holders of Warrants, each transfer of Warrants, and the names and addresses of the transferees of Warrants, shall be registered in the Warrant
Register. The names and addresses of the Holders of Warrant Shares, each transfer of Warrant Shares, and the names and addresses of the transferees of Warrant Shares, shall be registered in the Common Stock Register. 

 

	1.6	Delivery Expenses. 

 If a
Holder surrenders any Security to the Company for any reason, the Company agrees to pay the cost of delivering from or to such Holder’s home office or from or to the office of such Holder’s designee from the Company, insured to such
Holder’s satisfaction, the surrendered Security and each Security issued in substitution, replacement or exchange for the surrendered Security. 
  

	1.7	Issue Taxes. 

 The Company
agrees to pay all documentary stamp taxes and other governmental charges (other than taxes in the nature of income, franchise, property, estate, inheritance, gift or similar taxes) and governmental fees in connection with the issuance or delivery by
the Company to each Holder of the Securities and the execution and delivery of the other Documents and any modification of any of such Securities or other Documents, and will hold such Holder harmless without limitation as to time against any and
all liabilities with respect to all such taxes and fees. The obligations of the Company under this Section 1.7 are in addition to any other obligations of the Company contained elsewhere in this Agreement and shall survive the payment or
prepayment of the Notes, at maturity, upon redemption or otherwise, the exercise of the Warrants and the termination of this Agreement or any of the other Documents. 
  

	1.8	Lost, Etc. Securities. 

If a mutilated Security is surrendered to the Company or if the Holder of a Security claims and submits an affidavit or other evidence,
satisfactory to the Company, to the effect that the Security has been lost, destroyed or wrongfully taken, the Company shall issue a replacement Security if the customary requirements relating to replacement securities are reasonably satisfied. If
required by the Company, such Holder must provide an indemnity bond, or other form of indemnity, sufficient in the judgment of the Company to protect the Company from any loss which it may suffer if a Security is replaced. If any Purchaser or any
other institutional Holder (or nominee thereof) is the owner of any such lost, stolen or destroyed Security, then the affidavit of an authorized officer of such owner, setting forth the fact of loss, theft or destruction and of its ownership of the
Security at the time of such loss, theft or destruction shall be accepted as satisfactory evidence thereof, and no further indemnity shall be required as a condition to the execution and delivery of a new Security other than the unsecured written
agreement of such owner reasonably satisfactory to the Company, to indemnify the Company or at the option of the Purchaser, an indemnity bond in the amount of the Security remaining outstanding. Every replacement Security shall be a valid and
binding obligation of the Company. 

  
 6 

	1.9	Further Actions. 

 During
the period from the date hereof to the Closing Date, the Company shall (i) take all actions necessary or appropriate to cause its representations and warranties contained in Section 3.3 to be true and correct as of the Closing Date (unless
stated to refer to another date), both before and after giving effect to the transactions contemplated by this Agreement or any of the other Documents, as if made on and as of such date, and (ii) take, or cause to be taken, all action, and do,
or cause to be done, all things necessary, proper or advisable under applicable Law and regulations to consummate and make effective the transactions contemplated by this Agreement or any of the other Documents, including, without limitation,
obtaining all consents and approvals of all Persons and removing all injunctive or other impediments or delays, legal or otherwise, which are necessary to the consummation of the transactions contemplated by this Agreement or any of the other
Documents. 
  

	1.10	Other Covenants. 

 The
Company further covenants and agrees: 
 (a) to not, and will ensure that no affiliate (as defined in Rule 501(b)
of the Securities Act) of the Company, nor any other Person acting on its behalf, will sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in the Securities Act) that would be integrated with
the sale of the Securities in a manner that would require the registration under the Securities Act of the sale to the Purchasers of the Securities; 
 (b) for so long as any of the Securities remain outstanding and during any period in which the Company is not subject to Section 13 or 15(d) of the Exchange Act, to make available to any beneficial
owner of Securities and to any prospective purchaser thereof from such beneficial owner, the information required by Rule 144A(d)(4) under the Securities Act; 
 (c) to cause the Notes, the Warrants and the Warrant Shares to be eligible for clearance and settlement through DTC and to comply with the representation letter of the Company to DTC relating to the
approval of such securities by DTC for “book entry” transfer; and 
 (d) to (i) advise the
Purchasers promptly after obtaining knowledge (and, if requested by any of the Purchasers, confirm such advice in writing) of the issuance by any state securities commission of any stop order suspending the qualification or exemption from
qualification of any of the Securities for offer or sale in any jurisdiction, or the initiation of any proceeding for such purpose by any state securities commission or other regulatory authority, (ii) use its commercially reasonable efforts to
prevent the issuance of any stop order or order suspending the qualification or exemption from qualification of any of the Securities under any state securities or Blue Sky laws, and (iii) if at any time any state securities commission or other
regulatory authority shall issue an 

  
 7 

 
order suspending the qualification or exemption from qualification of any of the Securities under any such laws, use its commercially reasonable efforts to obtain the withdrawal or lifting of
such order at the earliest possible time. 
  

	1.11	Election to Be Subject to Beneficial Ownership Limitation Provisions. 

(a) Each Purchaser agrees that if it indicates below its signature to this Agreement that it has elected to be subject to
the provisions set forth below in Section 1.11(b) (the “Beneficial Ownership Limitation Provisions”) it shall be subject to such limitations as they will appear on any certificate representing the Warrants until such time that the
Purchaser has provided the Company with the notice described in the Beneficial Ownership Limitation Provisions or those provisions shall have otherwise terminated in accordance those provisions. 

(b) The following Beneficial Ownership Limitation Provisions will apply only to a Purchaser who has made the election
described in Section 1.11(a): The holder of this Warrant shall not be entitled to receive shares of Common stock upon exercise of this Warrant to the extent (but only to the extent) that such receipt would cause the holder to become, directly
or indirectly, a “beneficial owner” (within the meaning of Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder) of a number of shares of Common Stock that exceeds the Maximum Percentage of the shares
of Common Stock outstanding at such time. This limitation on beneficial ownership shall be terminated (i) upon 61 days’ notice to the Company by the holder or (ii) immediately on the date that is 30 days prior to the expiration of the
Exercise Period of the Warrants. Any purported delivery of shares of Common Stock upon exercise of this Warrant shall be void and have no effect to the extent (but only to the extent) that such delivery would result in the holder becoming the
beneficial owner of more than the Maximum Percentage of the shares of Common Stock outstanding at such time. If any delivery of shares of Common Stock owed to the holder upon exercise of this Warrant is not made, in whole or in part, as a result of
this limitation, the Company’s obligation to make such delivery shall not be extinguished and the Company shall deliver such shares of Common Stock as promptly as practicable after the holder gives notice to the Company that such delivery would
not result in such limitation being triggered or after these beneficial ownership limitation provisions shall have been terminated by the holder of the Warrants or upon 30 days prior to the expiration of the Exercise Period of the Warrants. For
purposes of this Agreement, (i) the term “Maximum Percentage” shall mean initially 5%; provided, that if at any time on or after the date hereof the Holder Group beneficially owns in excess of 5% of the outstanding shares of Common
Stock (excluding any shares issuable under this Warrant and any other convertible security including a similar limitation), then the Maximum Percentage shall automatically increase to 10% so long as the Holder Group owns in excess of 5% of the
outstanding shares of Common Stock (excluding any shares issuable under this Warrant and any other convertible security including a similar limitation), and (ii) the term “Holder Group” shall mean the holder of this Warrant plus any
other Person with which such holder is considered to be part of a group under Section 13 of the Exchange Act or with which such holder otherwise files reports under Section 13 or 16 of the Exchange Act. 

  
 8 

	SECTION	2. CLOSING CONDITIONS. 

 The
obligations of each Purchaser to purchase and pay for the Securities to be delivered to such Purchaser at the Closing shall be subject to the satisfaction of each of the following conditions on or before the Closing Date: 

 

	2.1	Delivery of Documents. 

The Company shall have delivered to each Purchaser, in form and substance satisfactory to such Purchaser, the following: 

(a) The Notes being purchased by such Purchaser, duly executed by the Company, in the aggregate principal amount set forth
below such Purchaser’s name on Schedule 1.1 hereto and the Warrants being purchased by such Purchaser, representing the number of Warrants set forth below such Purchaser’s name on Schedule 1.1 hereto. 

(b) Duly executed original counterparts of this Agreement, the Indenture, the Notes, the Warrant Agreement and the
Warrants. 
 (c) The following legal opinions: 

(i) An legal opinion, dated the Closing Date and addressed to the Purchasers and the Placement Agents, from
Fulbright & Jaworski L.L.P., counsel for the Company, as to the matters set forth on Annex C, and otherwise in form and substance satisfactory to the Purchasers and the Placement Agents. 

(ii) Such other legal opinions covering matters incidental to the transactions contemplated by this Agreement or any of
the other Documents as any Purchaser may reasonably request. 
 (d) Resolutions of the Board of Directors of the
Company, certified by the Secretary or Assistant Secretary of the Company, to be duly adopted and in full force and effect on such date, authorizing (i) the execution, delivery and performance of this Agreement and the other Documents to which
the Company is a party and the consummation of the transactions contemplated hereby and thereby and (ii) specific officers of the Company to execute and deliver this Agreement and any other Documents to which the Company is a party. 

(e) Certificates of (i) the President or any Vice President (other than the Chief Financial Officer of the Company)
of the Company and (ii) the Chief Financial Officer of the Company, dated the Closing Date, certifying that (i) all of the conditions set forth in Sections 2.3, 2.4, 2.5, 2.7, 2.8 and 2.9 are satisfied on and as of such date and specifying
as to each such condition the satisfaction thereof, (ii) all of the representations and warranties of the Company contained or incorporated by reference herein or in any of the other Documents are true and correct on and as of such date as
though made on and as of such date (unless stated to relate to another date) and on and as of the Closing Date as though made on and as of such date (and after giving effect to the transactions contemplated by this Agreement or any of the other
Documents), and (iii) as to such other matters as such Purchaser may reasonably request. 

  
 9 

 (f) A certificate in form, scope and substance reasonably satisfactory to
the Purchasers, from the Chief Financial Officer of the Company, dated the Closing Date, to the effect that at the Closing Date, (and after giving effect to the transactions contemplated hereby (including without limitation, the issuance of the
Securities and the application of the proceeds therefrom)), the Company is Solvent. 
 (g) Governmental
certificates, dated the most recent practicable date prior to the Closing Date, showing that the Company is organized, existing and in good standing in the jurisdiction of its incorporation and is qualified as a foreign corporation and in good
standing in all other U.S. jurisdictions in which it has executive offices or transacts business, except where the failure to be so qualified could not reasonably be expected to have a Material Adverse Effect. 

(h) Copies of each consent, license and approval required in connection with the execution, delivery and performance by
the Company of this Agreement and the other Documents and the consummation of the transactions contemplated hereby and thereby. 
 (i) Copies of the Charter Documents of the Company, certified as of a recent date by the Secretary of State of the relevant state of incorporation and certified by the Secretary or Assistant Secretary of
the Company, as true and correct as of the Closing Date. 
 (j) Certificates of the Secretary or an Assistant
Secretary of the Company as to the incumbency and signatures of the officers or representatives of the Company executing this Agreement and the other Documents and any other certificate or other document to be delivered pursuant hereto or thereto,
together with evidence of the incumbency of such Secretary or Assistant Secretary. 
 (k) Such additional
information and materials as any Purchaser may reasonably request, including, without limitation, copies of any debt agreements, security agreements and other contracts to which the Company is a party. 

 

	2.2	Legal Investment; Purchase Permitted by Applicable Laws. 

 Each Purchaser’s acquisition of the Securities (a) shall not be prohibited by any applicable Law or governmental regulation, release, interpretation or opinion (including, without limitation,
Regulations T, U and X of the Board of Governors of the Federal Reserve System), (b) shall constitute a legal investment as of the Closing Date under the Laws and regulations and orders of each jurisdiction to which such Purchaser may be
subject (without resort to any “basket” or “leeway” provision), and (c) shall not subject such Purchaser to any penalty or, in its reasonable judgment, other onerous condition in or pursuant to any such Law, regulation or
order; and such Purchaser shall have received such certificates or other evidence as such Purchaser may reasonably request to establish compliance with this condition. 

  
 10 

	2.3	Payment of Fees. 

 The
Company shall have caused to be delivered to each of the Placement Agents, at the Closing, by intra-bank or Federal funds bank wire transfer of same day funds, payment for such Placement Agent’s placement fee owed by the Company to such
Placement Agent. 
  

	2.4	Compliance with Agreements. 

 The Company shall have performed and complied with all agreements, covenants and conditions contained in this Agreement or in any of the other Documents and in any other document contemplated hereby or
thereby, which are required to be performed or complied with by the Company on or before the Closing Date. 
  

	2.5	Completion of Simultaneous or Prior Transactions. 

 Simultaneously with or prior to the sale to each Purchaser of the Securities to be purchased by such Purchaser: 
 (a) Each of the Documents shall have been executed and delivered by each of the parties thereto (other than such Purchaser) in form and substance satisfactory to the Purchasers, and such parties shall
have consummated the transactions contemplated thereby in accordance with all applicable Laws (including without limitation, the Securities Act, all applicable state securities Laws and all related rules and regulations under such statutes and other
Laws). 
 (b) All of the other Purchasers listed in the signature pages hereof shall have consummated their
purchase of Securities pursuant to this Agreement. 
  

	2.6	Proceedings Satisfactory. 

All proceedings taken in connection with the sale of the Securities, the transactions contemplated hereby, and all documents and papers
relating thereto, shall be reasonably satisfactory to such Purchaser. Such Purchaser and its counsel shall have received copies of such documents and papers as they may reasonably request in connection therewith, or as a basis for the Closing
opinions, all in form and substance satisfactory to such Purchaser. 
  

	2.7	Consents and Permits. 

The Company shall have received all consents, permits, approvals and authorizations and sent or made all notices, filings, registrations
and qualifications as may be required pursuant to any Law, statute, regulation or rule (Federal, state, local or foreign) or pursuant to any other agreement, order or decree to which it is a party or to which it is subject, in connection with the
transactions to be consummated on or prior to the Closing Date as contemplated by this Agreement or any of the other Documents. 
  

	2.8	No Material Adverse Effect. 

 Subsequent to December 31, 2011: (a) the Company shall not have suffered any adverse change in its properties, business, operations, assets, condition (financial or otherwise) or prospects, that
could reasonably be expected to result in a Material Adverse Effect; and (b)

  
 11 

 
except as described in the Exchange Act Documents or as contemplated hereby, (i) there shall not have been any material change in the capital stock or long-term debt, or material increase in
short-term debt, of the Company and (ii) the Company shall not have incurred any liability or obligation, direct or contingent, that is material to the Company, is required to be reflected on a balance sheet prepared in accordance with GAAP,
and has not been disclosed in the Exchange Act Documents. 
  

	2.9	No Material Judgment or Order. 

 There shall not be on the Closing Date any judgment or order of a court of competent jurisdiction or any ruling of any agency of the Federal, state or local government that, in the reasonable judgment of
any Purchaser, either of the Placement Agents or their respective counsel, would prohibit the sale or issuance of the Securities hereunder or subject the Company to any material penalty if the Securities were to be issued and sold hereunder.

  

	SECTION	3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. 

 The Company represents and warrants to each of the Purchasers, on the date hereof and as of the Closing, as follows: 
  

	3.1	Authorization; Enforceability. 

 (a) The Company has taken all actions necessary to authorize it (i) to execute, deliver and perform all of its obligations under each of the Documents to which it is a party, and (ii) to
consummate the transactions contemplated thereby. Upon and after execution and delivery thereof by the parties thereto, each of this Agreement, the Indenture, the Notes, the Warrant Agreement and the Warrants will be a legally valid and binding
obligation of the Company, enforceable against it in accordance with its respective terms, except for (a) the effect thereon of bankruptcy, insolvency, reorganization, moratorium and other similar Laws relating to or affecting the rights of
creditors generally and (b) limitations imposed by equitable principles upon the specific enforceability of any of the remedies, covenants or other provisions thereof and upon the availability of injunctive relief or other equitable remedies.

 (b) On the Closing Date, the Securities will be duly authorized and validly issued, will be fully paid and
nonassessable and will not have been issued in violation of, nor will they be subject to, any preemptive or similar rights. All of the Warrant Shares have been duly authorized by the Company and reserved for issuance upon exercise of the Warrants,
and upon issuance of such Warrant Shares in accordance with the terms of the Warrant Agreement and the Warrants, such Warrant Shares will be validly issued, fully paid and nonassessable. 

 

	3.2	Capitalization; Existing Registration Rights. 

 (a) The authorized capital stock of the Company consists of 80,000,000 shares of Common Stock and 5,000,000 shares of preferred stock, par value $0.01 per share, of which 5,000 shares have been designated
as Series B Preferred Stock. Currently, (i) 38,757,020 shares of Common Stock are issued and outstanding, (ii) there were 

  
 12 

 
outstanding options for the purchase of 3,906,632 shares of Common Stock, (iii) no other shares of Capital Stock are issued and outstanding and (iv) 3,937,632 shares of Common Stock
were reserved for issuance upon exercise of outstanding options issued or options that may be issued under the Company’s 2001 Long Term Stock Incentive Plan, the Harvest Natural Resources 2004 Long Term Incentive Plan, the Harvest Natural
Resources 2006 Long Term Incentive Plan, as amended, and the Harvest Natural Resources 2010 Long Term Incentive Plan. All shares of Common Stock outstanding on the date hereof have been duly authorized and are validly issued, fully paid and
non-assessable. 
 (b) Except as disclosed in the Exchange Act Documents, on the Closing Date, there are no
outstanding (i) securities convertible into or exchangeable for any Equity Interests of the Company, (ii) options, warrants or other rights to purchase or subscribe to Equity Interests of the Company or securities convertible into or
exchangeable for Equity Interests of the Company, (iii) contracts, commitments, agreements, understandings, arrangements, calls or claims of any kind relating to the issuance of any Equity Interests of the Company, any such convertible or
exchangeable securities or any such options, warrants or rights or (iv) voting trusts, agreements, contracts, commitments, understandings or arrangements with respect to the voting of any of the Equity Interests of the Company. 

(c) Except for this Agreement and the other Documents, there are no contracts, commitments, agreements, arrangements,
understandings or undertakings of any kind to which the Company is a party, or by which it is bound, granting to any Person the right to require the Company to file a registration statement under the Securities Act with respect to any Equity
Interests of the Company or requiring the Company to include any such Equity Interests with the underlying securities registered pursuant to any registration statement, including without limitation the registration statement required pursuant to
Section 5.1(a). 
  

	3.3	No Violation or Conflict; No Default. 

 (a) Neither the execution, delivery or performance of this Agreement or any of the other Documents by the Company, nor the compliance with its obligations hereunder or thereunder, nor the consummation of
the transactions contemplated hereby and thereby, nor the issuance, sale or delivery of the Securities will: 

(i) violate any provision of the Charter Documents of the Company; 

(ii) violate any statute, Law, rule or regulation or any judgment, decree, order, regulation or rule of any Governmental
Authority to which the Company, any Subsidiary of the Company or any of their properties may be subject; 
 (iii)
permit or cause the acceleration of the maturity of any debt or obligation of the Company or any Subsidiary of the Company; or 

  
 13 

 (iv) violate, or be in conflict with, or constitute a default under, or
permit the termination of, or require the consent of any Person under, or result in the creation or imposition of any Lien (other than Permitted Liens (as defined in the Indenture)) upon any property of the Company or any of its Subsidiaries under,
any mortgage, indenture, loan agreement, note, debenture, agreement for borrowed money or any other agreement to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries (or their properties) may be
bound, other than such violations, conflicts, defaults, terminations and Liens, or such failures to obtain consents, which could not reasonably be expected to result in a Material Adverse Effect. 

(b) Neither the Company nor any of its Subsidiaries is in default (without giving effect to any grace or cure period or
notice requirement) under any agreement for borrowed money or under any agreement pursuant to which any of its securities were sold. 
  

	3.4	Use of Proceeds. 

 All of
the net proceeds from the sale of the Securities hereunder will be used for general corporate purposes, including without limitation the Company’s Gabon drilling and development program. 

 

	3.5	No Material Adverse Change; Financial Statements. 

 (a) No Material Adverse Change. Since December 31, 2011, the Company and its Subsidiaries, have not suffered any change in their properties, business, operations, assets, condition (financial
or otherwise) or prospects that could reasonably be expected to result in a Material Adverse Effect. 
 (b)
Financial Statements. Except as disclosed in the Exchange Act Documents, (i) the financial statements included in the Exchange Act Documents present fairly the consolidated financial position of the Company and its consolidated
subsidiaries as of the dates indicated and the results of their operations and the changes in their consolidated cash flows for the periods specified therein, (ii) said financial statements have been prepared in conformity with generally
accepted accounting principles and practices (“GAAP”) applied on a consistent basis; (iii) the supporting schedules, if any, in the Exchange Act Documents present fairly the information required to be stated therein,
(iv) the other financial and statistical information and any other financial data set forth in the Exchange Act Documents present fairly, in all material respects, the information purported to be shown thereby at the respective dates or for the
respective periods to which they apply and (v) to the extent such information is set forth in or has been derived from the financial statements and accounting books and records of the Company, have been prepared on a basis consistent with such
financial statements and the books and records of the Company. 

  
 14 

	3.6	Exchange Act Documents; Full Disclosure. 

 The Company has timely filed with the SEC all documents and reports required under the Exchange Act and the rules and regulations of the SEC thereunder. The Exchange Act Documents were prepared in
accordance with and, as of the date on which each such Exchange Act Document was filed with the SEC, complied in all material respects with the applicable requirements of the Exchange Act. Except to the extent information contained in any of the
Exchange Act Documents has been revised, corrected or superseded by a later Exchange Act Document, none of the Exchange Act Documents contains an untrue statement of a material fact or omits to state a material fact required to be stated therein or
necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. Furthermore, the Documents, the Offering Memorandum, the Exchange Act Documents and any other document, certificate or
written statement furnished by or on behalf of the Company to any Purchaser in connection with the negotiation and sale of the Securities pursuant to this Agreement, when considered together, do not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. There is no material fact known to the Company that has had or could reasonably be expected to have
a Material Adverse Effect and that has not been disclosed in the Exchange Act Documents. 
  

	3.7	Third Party Consents. 

Neither the nature of the Company and its Subsidiaries nor of any of their businesses or properties, nor any relationship between the
Company or any Subsidiary and any other Person, nor any circumstance in connection with the offer, issuance, sale or delivery of the Securities at the Closing nor the performance by the Company of its other obligations hereunder or under the other
Documents, or the consummation of the transactions contemplated hereby or by any of the other Documents, as the case may be, is such as to require a consent, approval or authorization of, or notice to, or filing, registration or qualification with,
any Governmental Authority or other Person on the part of the Company as a condition to the execution and delivery of this Agreement or any of the other Documents or the offer, issuance, sale or delivery of the Securities at the Closing other than
such consents, approvals, authorizations, notices, filings, registrations or qualifications which shall have been made or obtained on or prior to the Closing Date and such filings under Federal and state securities Laws which are permitted to be
made after the Closing Date and which the Company hereby agrees to file within the time period prescribed by applicable Law. 
  

	3.8	Private Offering. 

 (a) Assuming the truth and correctness of the representations and warranties set forth in SECTION 4, the sale of the Securities hereunder is exempt from the registration and prospectus delivery
requirements of the Securities Act. 
 (b) In the case of each offer or sale of the Securities, no form of
general solicitation or general advertising was used by the Company or its representatives or agents, including, but not limited to, advertisements, articles, notices or other communications published in any newspaper, magazine or similar medium or
broadcast over television or radio, or any seminar or meeting whose attendees have been invited by any general solicitation or general advertising. 

  
 15 

 (c) The Purchasers are the sole purchasers of the Securities. No securities
of the same class as any of the Securities have been issued and sold by the Company within the six-month period immediately prior to the date hereof. 
  

	3.9	Solvency. 

 Immediately
prior to and after giving effect to the issuance of the Securities and the execution, delivery and performance of this Agreement, the other Documents and any instrument governing Indebtedness of the Company or any of its Subsidiaries incurred as of
the Closing Date, the Company and each of its Subsidiaries are Solvent. 
  

	3.10	Litigation. 

 There are no
actions, suits, proceedings, claims or disputes pending or, to the knowledge of the Company, threatened or contemplated, at Law, in equity, in arbitration or before any Governmental Authority, by or against the Company or any of its Subsidiaries or
against any of their properties or revenues that (a) purport to affect or pertain to this Agreement or any other Document, or (b) except as specifically disclosed in Schedule 3.10, either individually or in the aggregate, if
determined adversely, could reasonably be expected to have a Material Adverse Effect. 
  

	3.11	Environmental Compliance. 

 (a) The Company and its respective Subsidiaries conduct in the ordinary course of business a review of the effect of existing Environmental Laws on their business, operations and properties and claims
asserted against them alleging potential liability or responsibility for violation of any Environmental Law, and as a result thereof the Company has reasonably concluded that such Environmental Laws and such claims could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. 
 (b) Except as otherwise set forth in
Schedule 3.11, none of the properties currently or formerly owned or operated by the Company or any of its Subsidiaries is listed or proposed for listing on the NPL or on the CERCLIS or any analogous foreign, state or local list or, to the
knowledge of the Company, is adjacent to any such property; there are no and never have been any underground or above-ground storage tanks other than in material compliance with applicable Environmental Laws or any surface impoundments, septic
tanks, pits, sumps or lagoons in which Hazardous Materials are being or have been treated, stored or disposed on any property currently owned or operated by the Company or any of its Subsidiaries or, to the knowledge of the Company, on any property
formerly owned or operated by the Company or any of its Subsidiaries; other than in material compliance with applicable Environmental Laws, there is no asbestos or asbestos-containing material on any property currently owned or operated by the
Company or any of its Subsidiaries; and Hazardous Materials have not been Released, discharged or disposed of by the Company or any of its Subsidiaries or, to the knowledge of the Company, any other Person on any property currently or formerly owned
or operated by the Company or any of its Subsidiaries. 

  
 16 

 (c) Except as otherwise set forth on Schedule 3.11, or as could not
reasonably be expected to have a Material Adverse Effect, neither the Company nor any of its Subsidiaries is undertaking, either individually or together with other potentially responsible parties, any investigation or assessment or remedial or
response action relating to any actual or threatened release, discharge or disposal of Hazardous Materials at any site, location or operation, either voluntarily or pursuant to the order of any Governmental Authority or the requirements of any
Environmental Law; and to the knowledge of the Company, all Hazardous Materials generated, used, treated, handled or stored at, or transported to or from, any property currently or formerly owned or operated by the Company or any of its Subsidiaries
have been disposed of in a manner not reasonably expected to result in material liability to the Company or any of its Subsidiaries. 
  

	3.12	ERISA Compliance. 

 (a) Each Plan is in compliance with the applicable provisions of ERISA, the Internal Revenue Code and other federal or state laws, except in instances in which any such non-compliance could not be
reasonably expected to have a Material Adverse Effect. Each Pension Plan that is intended to be a qualified plan under Section 401(a) of the Internal Revenue Code has received a favorable determination letter from the IRS to the effect that the
form of such Plan is qualified under Section 401(a) of the Internal Revenue Code and the trust related thereto has been determined by the IRS to be exempt from federal income tax under Section 501(a) of the Internal Revenue Code, or has an
applicable remedial amendment period that will not have ended before the Closing Date. To the knowledge of the Company, nothing has occurred that would prevent or cause the loss of such tax-qualified status. 

(b) There are no pending or, to the knowledge of the Company, threatened claims, actions or lawsuits, or action by any
Governmental Authority, with respect to any Plan that could reasonably be expected to have a Material Adverse Effect. There has been no prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan that has
resulted or could reasonably be expected to result in a Material Adverse Effect. 
 (c) (i) No ERISA Event has
occurred, and neither the Company nor any ERISA Affiliate is aware of any fact, event or circumstance that could reasonably be expected to constitute or result in an ERISA Event with respect to any Pension Plan; (ii) the Company and each ERISA
Affiliate has met all applicable requirements under the Pension Funding Rules in respect of each Pension Plan, and no waiver of the minimum funding standards under the Pension Funding Rules has been applied for or obtained; (iii) as of the most
recent valuation date for any Pension Plan which is not a Multiemployer Plan, the funding target attainment percentage (as defined in Section 430(d)(2) of the Internal Revenue Code) is 60% or higher and the Company knows of no facts or
circumstances that could reasonably be expected to cause the funding target attainment percentage for any such plan to drop below 60% as of the most recent valuation date; (iv) neither the Company nor any ERISA Affiliate has incurred any
liability to the PBGC other than for the payment of premiums, and there are no premium payments which have 

  
 17 

 
become due that are unpaid; (v) neither the Company nor any ERISA Affiliate has engaged in a transaction that could be subject to Section 4069 or Section 4212(c) of ERISA; and
(vi) no Pension Plan has been terminated by the plan administrator thereof nor by the PBGC, and no event or circumstance has occurred or exists that could reasonably be expected to cause the PBGC to institute proceedings under Title IV of ERISA
to terminate any Pension Plan. 
 (d) Neither the Company or any ERISA Affiliate maintains or contributes to, or
has any unsatisfied obligation to contribute to, or liability under, any active or terminated Pension Plan. 
  

	3.13	Compliance with Laws. 

The Company and its Subsidiaries are in compliance with the requirements of all applicable Laws and all orders, writs, injunctions and
decrees applicable to them or to their properties, except in such instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted or
(b) the failure to comply therewith, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. 
  

	3.14	Foreign Assets Control Regulations. 

 (a) Neither the Company nor any Affiliated Entity is (i) a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons published by the Office of Foreign Assets
Control, U.S. Department of Treasury (“OFAC”) (an “OFAC Listed Person”) or (ii) a department, agency or instrumentality of, or is otherwise controlled by or acting on behalf of, directly or indirectly, (x) any OFAC
Listed Person or (y) the government of a country subject to comprehensive U.S. economic sanctions administered by OFAC (each OFAC Listed Person and each other entity described in clause (ii), a “Blocked Person”). 

(b) No part of the proceeds from the sale of the Securities hereunder constitutes or will constitute funds obtained on
behalf of any Blocked Person or will otherwise be used, directly by the Company or indirectly through any Affiliated Entity, in connection with any investment in, or any transactions or dealings with, any Blocked Person. 

(c) Except as set forth in Schedule 3.14, to the Company’s knowledge, neither the Company nor any Affiliated
Entity (i) is under investigation by any Governmental Authority for, or has been charged with, or convicted of, money laundering, drug trafficking, terrorist-related activities or other money laundering predicate crimes under any applicable Law
(collectively, “Anti-Money Laundering Laws”), (ii) has been assessed civil penalties under any Anti-Money Laundering Laws or (iii) has had any of its funds seized or forfeited in an action under any Anti-Money Laundering Laws.
The Company has taken reasonable measures appropriate to the circumstances (in any event as required by applicable Law), to ensure that the Company and each Affiliated Entity is and will continue to be in compliance with all applicable current and
future Anti-Money Laundering Laws. 

  
 18 

 (d) No part of the proceeds from the sale of the Securities hereunder will
be used, directly or indirectly, for any improper payments to any governmental official or employee, political party, official of a political party, candidate for political office, official of any public international organization or anyone else
acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage. The Company has taken reasonable measures appropriate to the circumstances (in any event as required by applicable Law), to ensure that
the Company and each of its Subsidiaries is and will continue to be in compliance with all applicable current and future anti-corruption Laws and regulations. 
  

	3.15	Survival of Representations and Warranties. 

 The Company’s representations and warranties hereunder and under the other Documents shall survive the execution and delivery of the same, any investigation by any Purchaser and the issuance of the
Securities. 
  

	SECTION	4. REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF EACH PURCHASER. 

 Each Purchaser (as to itself only) and each Account Manager (as to the managed accounts of Purchasers) represents and warrants to the Company that: 

 

	4.1	Purchase for Own Account. 

Such Purchaser or such Account Manager is purchasing the Securities to be purchased by it solely for its own account (or in the case of
Account Managers, on behalf of managed accounts) and not as nominee or agent for any other Person (other than for such managed accounts, if applicable) and not with a view to, or for offer or sale in connection with, any distribution thereof (within
the meaning of the Securities Act) that would be in violation of the securities Laws of the United States of America or any state thereof, without prejudice, however, to its right at all times to sell or otherwise dispose of all or any part of said
Securities pursuant to a registration statement under the Securities Act or pursuant to an exemption from the registration requirements of the Securities Act, and subject, nevertheless, to the disposition of its property being at all times within
its control. 
  

	4.2	Accredited Investor. 

Such Purchaser or such Account Manager is knowledgeable, sophisticated and experienced in business and financial matters; it has
previously invested in securities similar to the Securities and it acknowledges that the Securities have not been registered under the Securities Act and understands that the Securities must be held indefinitely unless they are subsequently
registered under the Securities Act or such sale is permitted pursuant to an available exemption from such registration requirement; it (or, in the case of an Account Manager, the managed account on behalf of which the Account Manager is acting) is
able to bear the economic risk of its investment in the Securities and is presently able to afford the complete 

  
 19 

 
loss of such investment; it (or, in the case of an Account Manager, the managed account on behalf of which the Account Manager is acting) is an “accredited investor” as defined in
Regulation D promulgated under the Securities Act; and it has been afforded access to information about the Company and its financial condition and business sufficient to enable it to evaluate its investment in the Securities. 

 

	4.3	Authorization. 

 Each
Purchaser has taken all actions necessary to authorize it (or, in the case of an Account Manager, such Account Manager is duly authorized by the managed account for which it is acting) (i) to execute, deliver and perform all of its obligations
under this Agreement, (ii) to perform all of its obligations under the Securities and (iii) to consummate the transactions contemplated hereby and thereby. 
  

	4.4	Securities Restricted. 

Each Purchaser acknowledges that the Securities have not been registered under the Securities Act and understands that the Securities must
be held indefinitely, unless they are subsequently registered under the Securities Act or such sale is permitted pursuant to an available exemption from such registration requirement. 

Each Purchaser acknowledges that no transfer or sale (including, without limitation, by pledge or hypothecation) of Notes by any
Purchaser which is otherwise permitted hereunder, other than a transfer or sale to the Company, shall be effective unless such transfer or sale is made in accordance with the resale restrictions set forth in the restrictive legend required pursuant
to Section 1.1(f) to be set forth in the Notes. Each Purchaser shall, and each subsequent Holder is required to, notify any later purchaser of Securities from it of such resale restrictions. 

 

	4.5	ERISA. 

 Such Purchaser
(and each subsequent Holder) represents that either: 
 (a) it is not acquiring the Securities for or on behalf
of any employee pension benefit plan or employee welfare benefit plan (as defined in Section 3 of ERISA) or any “plan” (as defined in Section 4975 of the Internal Revenue Code) (each hereafter a Holder “Plan”);
or 
 (b) the purchase and holding of the Securities would be exempt under the applicable provisions of one of
the following Prohibited Transaction Class Exemptions (“PTCE”): PTCE 95-60, PTCE 91-38, PTCE 90-1, PTCE 84-14 or PTCE 96-23; or 
 (c) to the extent such purchase is made on behalf of a Holder Plan, such purchase and holding of the Securities will not otherwise give rise to a transaction described Section 406 of ERISA or
Section 4975(c)(1) of the Internal Revenue Code for which a statutory or administrative exemption is unavailable. 

  
 20 

	4.6	Fairness. 

 Each Purchaser
acknowledges that no federal or state agency or regulatory authority has made any finding or determination as to the fairness of the Offering of the Securities for public investment, or any recommendation or endorsement of the Securities.

  

	4.7	Placement Agents and Counsel. 

 Each Purchaser acknowledges that (i) the Company has retained Knight and Wunderlich Securities, Inc. (“Wunderlich” and, together with Knight, the “Placement Agents”)
to act as exclusive placement agents for the Company in conducting the Offering, (ii) the Company will pay a placement agent fee to each of the Placement Agents upon consummation of the purchase and sale of the Securities pursuant to this
Agreement, and (iii) the Offering is not being underwritten by the Placement Agents, (iv) neither of the Placement Agents nor any of their respective representatives are making any representation to any Purchaser regarding the legality or
merits of any investment in the Securities, (v) such Purchaser should not construe, any communication, whether verbal or written, with either Placement Agent or any of their respective representatives as legal, business, financial, accounting,
tax or other advice, (vi) such Purchaser has consulted with its own advisors as to the legal, business, financial, accounting, tax and other aspects of an investment in the Securities and (vii) each of Fulbright & Jaworski L.L.P.
and Andrews Kurth LLP has not represented such Purchaser or provided any legal, business, financial, accounting, tax or other advice to such Purchaser. 
 SECTION 5. REGISTRATION RIGHTS. 
  

	5.1	Registration. 

 (a) The Company shall use its commercially reasonable efforts to (i) cause to be prepared and filed with the SEC a shelf registration statement on Form S-3 (or, if the Company is not eligible to use
such form, Form S-1) (the “Registration Statement”) within ninety (90) days of the Closing Date (the “Filing Date”) for purposes of registering for sale to the public the Registrable Securities, and
(ii) cause such Registration Statement to be declared effective (including, without limitation, the execution of any required undertaking to file post-effective amendments, appropriate qualifications or exemptions under applicable Blue Sky or
other state securities Laws and appropriate compliance with applicable securities laws, requirements or regulations) under the Securities Act by the SEC as soon as practicable thereafter and in any event no later than one hundred fifty
(150) days after the Closing Date. The Company shall not be obligated to enter into any underwriting agreement for the sale of any of the Registrable Securities. 

(b) Notwithstanding the foregoing, if after the filing of any Registration Statement but before the effectiveness thereof,
the Board of Directors of the Company determines in its good faith reasonable judgment that the Company should not file or seek effectiveness of such Registration Statement otherwise required to be filed pursuant to such Section 5.1(a) because
(i) the filing of the Registration Statement or continuation of the registration process would adversely affect a pending or proposed material financing or a material acquisition, merger, recapitalization, consolidation, reorganization or
similar 

  
 21 

 
transaction, or negotiations, discussions or pending proposals with respect thereto or (ii) the Registration Statement and any prospectus contains or would contain a material misstatement of
fact or omission as a result of an event that has occurred or is continuing, the Company shall be entitled to postpone for the shortest reasonable period of time (but not exceeding one hundred eighty (180) days from the date of such
determination of the Board of Directors of the Company), the filing or effectiveness of such Registration Statement and shall promptly give the Holders written notice of such determination, and, upon request of the Holders, a general statement of
the reasons for such postponement and an approximation of the anticipated delay. 
 5.2 Expenses. All Registration Expenses incurred in
connection with any registration, qualification, exemption or compliance pursuant to Section 5.1 shall be borne by the Company. All Selling Expenses relating to the sale of Registrable Securities shall be borne by such Holders pro rata on the
basis of the number of securities so registered. 
  

	5.3	Registration Procedures. 

In the case of the registration, qualification, exemption or compliance effected by the Company pursuant to this Agreement, the Company
shall, upon reasonable written request, inform each Holder as to the status of such registration, qualification, exemption and compliance. At its expense the Company shall: 

(a) subject to Section 5.5, use its commercially reasonable efforts to keep such registration, and any qualification,
exemption or compliance under state securities Laws which the Company determines to obtain, continuously effective until the earlier of the following: (i) such time as all of the Registrable Securities are sold, or (ii) such time as all
Warrant Shares and any other shares of Common Stock held by the Holders cease to be Registrable Securities. The period of time during which the Company is required hereunder to keep the Registration Statement effective is referred to herein as the
“Registration Period.” 
 (b) advise the Holders within five (5) Business Days: 

(i) when the Registration Statement or any amendment thereto has been filed with the SEC and when the Registration
Statement or any post-effective amendment thereto has become effective; 
 (ii) of any request by the SEC for
amendments or supplements to the Registration Statement or the prospectus included therein or for additional information; 
 (iii) of the issuance by the SEC of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for such purpose; 

(iv) of the receipt by the Company of any notification with respect to the suspension of the qualification of the
Registrable Securities included therein for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; and 

  
 22 

 (v) of the occurrence of any event that requires the making of any changes
in the Registration Statement or the prospectus so that, as of such date, the statements therein are not misleading and do not omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of
the prospectus, in the light of the circumstances under which they were made) not misleading; 
 (c) use its
commercially reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of any Registration Statement at the earliest possible time; 
 (d) promptly furnish to each Holder, without charge, at least one copy of such Registration Statement and any post-effective amendment thereto, including financial statements and schedules, and, if the
Holder so requests in writing, all exhibits in the form filed with the SEC; 
 (e) during the Registration
Period, promptly deliver to each Holder, upon request and without charge, as many copies of the prospectus included in such Registration Statement and any amendment or supplement thereto as such Holder may reasonably request; and the Company
consents to the use, consistent with the provisions hereof and thereof, of the prospectus or any amendment or supplement thereto by each of the selling Holders of Registrable Securities in connection with the offering and sale of the Registrable
Securities covered by the prospectus or any amendment or supplement thereto; 
 (f) prior to any public offering
of Registrable Securities pursuant to any Registration Statement, promptly take such actions as may be necessary to register or qualify or obtain an exemption for offer and sale under the securities or Blue Sky Laws of such jurisdictions as any such
Holders reasonably request in writing, provided that the Company shall not for any such purpose be required to qualify generally to transact business as a foreign corporation in any jurisdiction where it is not so qualified, to consent to
general service of process in any such jurisdiction or to become subject to taxation in any jurisdiction in which it is not then already subject to taxation, and do any and all other acts or things reasonably necessary or advisable to enable the
offer and sale in such jurisdictions of the Registrable Securities covered by such Registration Statement; 
 (g)
upon the occurrence of any event contemplated by Section 5.3(b)(v), the Company shall use its best efforts to promptly prepare a post-effective amendment to the Registration Statement or a supplement to the related prospectus, or file any other
required document so that, as thereafter delivered to purchasers of the Registrable Securities included therein, the prospectus will not include any untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading; 

  
 23 

 (h) otherwise use its commercially reasonable efforts to comply with all
applicable rules and regulations of the SEC that could affect the sale of the Registrable Securities; 
 (i) use
its commercially reasonable efforts to cause all Registrable Securities to be listed on each securities exchange or market, if any, on which equity securities issued by the Company have been listed; and 

(j) use its commercially reasonable efforts to take all other steps necessary to effect the registration of the
Registrable Securities contemplated hereby and to enable the Holders to sell Registrable Securities under Rule 144. 
  

	5.4	Indemnification. 

 (a) To the extent permitted by Law, the Company shall indemnify each Holder and each Person controlling such Holder within the meaning of Section 15 of the Securities Act, with respect to which any
registration that has been effected pursuant to this Agreement, against all claims, losses, damages and liabilities (or action in respect thereof), including any of the foregoing incurred in settlement of any litigation, commenced or threatened
(subject to Section 5.4(c)), arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in the Registration Statement, prospectus, any amendment or supplement thereof or based on any omission (or
alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, in light of the circumstances in which they were made, or any violation by the Company of any rule or
regulation promulgated by the Securities Act applicable to the Company and relating to any action or inaction required of the Company in connection with any such registration and will reimburse each Holder and each Person controlling such Holder for
reasonable legal and other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability or action as incurred; provided, however, that the Company will not be liable in any such
case to the extent that any untrue statement or omission or allegation thereof is made in reliance upon and in conformity with written information furnished to the Company by or on behalf of such Holder; provided further, however, that
the Company will not be liable in any such case where the claim, loss, damage or liability arises out of or is related to the failure of the Holder to comply with the covenants and agreements contained in this Agreement respecting sales of
Registrable Securities. 
 (b) Each Holder will severally (but not jointly), if Registrable Securities held by
such Holder are included in the securities as to which such registration is being effected, indemnify the Company, each of its directors and officers and each Person who controls the Company within the meaning of Section 15 of the Securities
Act, against all claims, losses, damages and liabilities (or actions in respect thereof), including any of the foregoing incurred in settlement of any litigation, commenced or threatened (subject to Section 5.4(c)), arising out of or based on
any untrue statement (or alleged untrue statement) of a material fact contained in the Registration Statement, prospectus, or any amendment or supplement thereof, or based on any omission (or alleged omission) to

  
 24 

 
state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, in light of the circumstances in which they were made, and will reimburse
the Company, such directors and officers and each Person controlling the Company for reasonable legal and any other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability or action as
incurred, in each case to the extent, but only to the extent, that such untrue statement or omission or allegation thereof is made in reliance upon and in conformity with written information furnished to the Company by or on behalf of such Holder;
provided that the indemnity shall not apply to the extent that such claim, loss, damage or liability results from the fact that the Final Prospectus was not made available to the Person or entity asserting the loss, liability, claim or damage
at or prior to the time such furnishing is required by the Securities Act and the Final Prospectus would have cured the defect giving rise to such loss, claim, damage or liability. Notwithstanding the foregoing, a Holder’s aggregate liability
pursuant to this Section 5.4(b) and Section 5.4(d) shall be limited to the net amount received by the Holder from the sale of the Registrable Securities. 

(c) Each party entitled to indemnification under this Section 5.4 (the “Indemnified Party”) shall
give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying
Party (at its expense) to assume the defense of any such claim or any litigation resulting therefrom, provided, however, that counsel for the Indemnifying Party, who shall conduct the defense of such claim or litigation, shall be
approved by the Indemnified Party (whose approval shall not unreasonably be withheld), and the Indemnified Party may participate in such defense provided that all legal and other expenses incurred by the Indemnified Party in connection therewith
shall be at such Indemnified Party’s expense, and, provided further, that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Agreement, unless
such failure is materially prejudicial to the Indemnifying Party in defending such claim or litigation. An Indemnifying Party shall not be liable for any settlement of an action or claim effected without its written consent (which consent will not
be unreasonably withheld). No Indemnifying Party, in its defense of any such claim or litigation, shall, except with the consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such claim or litigation. 

(d) If the indemnification provided for in this Section 5.4 is held by a court of competent jurisdiction to be
unavailable to an Indemnified Party with respect to any loss, liability, claim, damage or expense referred to therein, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party thereunder, shall contribute to the amount paid or
payable by such Indemnified Party as a result of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative 

  
 25 

 
fault of the Indemnifying Party on the one hand and of the Indemnified Party on the other in connection with the statements or omissions which resulted in such loss, liability, claim, damage or
expense as well as any other relevant equitable considerations. The relative fault of the Indemnifying Party and of the Indemnified Party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission to state a material fact relates to information supplied by the Indemnifying Party or by the Indemnified Party and the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission. 
  

	5.5	Certain Obligations of Holders. 

 (a) Each Holder agrees that, upon receipt of any notice from the Company of the happening of any event requiring the preparation of a supplement or amendment to a prospectus relating to Registrable
Securities so that, as thereafter delivered to the Holders, such prospectus shall not contain an untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not
misleading, each Holder will forthwith discontinue disposition of Registrable Securities pursuant to the Registration Statement and prospectus contemplated by Section 5.1 until its receipt of copies of the supplemented or amended prospectus
from the Company and, if so directed by the Company, each Holder shall deliver to the Company all copies, other than permanent file copies then in such Holder’s possession, of the prospectus covering such Registrable Securities current at the
time of receipt of such notice. 
 (b) Each Holder shall suspend, upon request of the Company, any disposition of
Registrable Securities pursuant to the Registration Statement and prospectus contemplated by Section 5.1 during (i) any period not to exceed one ninety (90) day period within any one twelve (12) month period (the “Ninety
Day Period”) the Company requires in connection with a primary underwritten offering of equity securities so long as the Holders are permitted to participate in such primary underwritten offering on a pro rata basis based on the number of
shares of Common Stock they hold at such time relative to the Company’s total number of outstanding shares of Common Stock at such time (provided, however, that, to the extent the underwriters for such offering advise the Holders
that marketing factors require a limitation of the number of shares of Common Stock that may be included in such underwritten offering, the right of the Holders to participate in such offering on a pro rata basis as described above shall be reduced
or eliminated and such Holder shall nonetheless remain obligated to suspend its disposition of Registrable Securities pursuant to the Registration Statement and prospectus contemplated by Section 5.1 for up to the entirety of the Ninety Day
Period), and (ii) any period, not to exceed one ninety (90) day period per twelve (12) month period, when the Company determines in good faith that offers and sales pursuant thereto should not be made by reason of the presence of
material undisclosed circumstances or developments with respect to which the disclosure that would be required in such a prospectus is premature or would have a Material Adverse Effect on the Company. 

(c) As a condition to the inclusion of its Registrable Securities, each Holder shall furnish to the Company such
information regarding such Holder and the distribution proposed by such Holder as the Company may request in writing, including completing a Registration Statement questionnaire substantially in the form provided by the Company, or as shall be
required in connection with any registration referred to in this Agreement. 

  
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 (d) Each Holder acknowledges and agrees that the Registrable Securities sold
pursuant to the Registration Statement are not transferable on the books of the Company unless any stock certificate submitted to the transfer agent evidencing such Registrable Securities is accompanied by a certificate reasonably satisfactory to
the Company to the effect that (i) the Registrable Securities have been sold in accordance with such Registration Statement and (ii) the requirement of delivering a current prospectus has been satisfied. 

(e) Each Holder agrees not to take any action with respect to any distribution deemed to be made pursuant to such
Registration Statement which would constitute a violation of Regulation M under the Exchange Act or any other applicable rule, regulation or Law. 
 (f) At the end of the Registration Period the Holders shall discontinue sales of shares pursuant to such Registration Statement upon receipt of notice from the Company of its intention to remove from
registration the shares covered by such Registration Statement which remain unsold, and such Holders shall notify the Company of the number of shares registered which remain unsold immediately upon receipt of such notice from the Company.

  

	5.6	Rule 144. 

 With a view to
making available to the Holders the benefits of certain rules and regulations of the SEC which at any time permit the sale of the Notes, the Warrants or the Registrable Securities to the public without registration, so long as the Holders still own
the Notes, the Warrants or any Registrable Securities, the Company shall use its commercially reasonable efforts to: 
 (a) make and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act, at all times; 

(b) file with the SEC in a timely manner all reports and other documents required of the Company under the Exchange Act;
and 
 (c) furnish to such Holder, upon any reasonable request, a written statement by the Company as to its
compliance with Rule 144 under the Securities Act, and of the Exchange Act, a copy of the most recent annual or quarterly report of the Company, and such other reports and documents of the Company as such Holder may reasonably request in availing
itself of any rule or regulation of the SEC allowing a Holder to sell any such securities without registration. 

  
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 SECTION 6. DEFINITIONS. 

 

	6.1	Definitions. 

 As used in
this Agreement, the following terms shall have the following meanings: 
 “Account Manager” means each Purchaser
(including without limitation any investment manager or general partner), if any, duly authorized to act as attorney in-fact or to make investment decisions on behalf of any Person in purchasing, in the name of and using funds provided by such
Person, Securities hereunder. 
 “Affiliate” means, with respect to any referenced Person, a Person
(a) which directly or indirectly through one or more intermediaries controls, or is controlled by, or is under common control with, such referenced Person, (b) which directly or indirectly through one or more intermediaries beneficially
owns or holds 10% or more of the combined voting power of the total Voting Securities of such referenced Person or (c) of which 10% or more of the combined voting power of the total Voting Securities directly or indirectly through one or more
intermediaries is beneficially owned or held by such referenced Person or a Subsidiary of such referenced Person. When used herein without reference to any Person, Affiliate means an Affiliate of the Company. For purposes of this definition,
“control” when used with respect to any Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such person, whether through the ownership of Voting Securities,
by agreement or otherwise; and the terms “affiliated,” “controlling” and “controlled” have meanings correlative to the foregoing. 
 “Affiliated Entity” means any Subsidiary of the Company and any controlled Affiliate of the Company or any Subsidiary of the Company. 

“Agreement” means this Securities Purchase Agreement dated as of October 11, 2012 by and among the Company and the
Purchasers. 
 “Business Day” means any day which is not a Legal Holiday. 

“Capital Stock” means any and all shares, interests, participations or other equivalents (however designated) of
corporate stock, including without limitation all common stock and preferred stock. 
 “Charter Documents” of
any Person, means its certificate of incorporation, articles of incorporation, bylaws, limited liability company certificate, limited partnership certificate, limited liability company agreement, operating agreement, limited partnership agreement,
partnership agreement or other organic document of similar purpose. 
 “Closing” has the meaning given to such
term in Section 1.2(b). 
 “Closing Date” has the meaning given to such term in Section 1.2(b).

 “Common Stock” has the meaning given to such term in Section 1.1(a). 

“Common Stock Register” has the meaning given to such term in Section 1.5. 

“Company” means Harvest Natural Resources, Inc., a Delaware corporation. 

  
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 “Default” has the meaning given to such term in the Indenture. 

“Documents” means (a) this Agreement, the Indenture, the Notes, the Warrant Agreement and the Warrants,
collectively, or each of such documents singularly, and (b) any documents or instruments contemplated by or executed in connection with any of them or any of the transactions contemplated hereby or thereby. 

“DTC” means The Depository Trust Company. 
 “Environmental Laws” means all federal, state, local and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises,
licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the Release of any Hazardous Materials into the environment, including those related to air emissions and discharges to waste or public
systems. 
 “Equity Interest” means (a) with respect to a corporation, any and all Capital Stock or
warrants, options or other rights to acquire Capital Stock (but excluding any debt security which is convertible into, or exchangeable or exercisable for, Capital Stock) and (b) with respect to a partnership, limited liability company or
similar Person, any and all units, interests, rights to purchase, warrants, options or other equivalents of, or other ownership interests in any such Person. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and any successor statute or Law thereto. 

“ERISA Affiliate” means any trade or business (whether or not incorporated) under common control with the Company within
the meaning of Section 414(b) or (c) of the Internal Revenue Code (and Sections 414(m) and (o) of the Internal Revenue Code for purposes of provisions relating to Section 412 of the Internal Revenue Code). 

“ERISA Event” means (a) a Reportable Event with respect to a Pension Plan (other than a Multiemployer Plan);
(b) the withdrawal of the Company or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which such entity was a “substantial employer” as defined in Section 4001(a)(2) of ERISA or
a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by the Company or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan
is in reorganization; (d) the filing of a notice of intent to terminate the treatment of a Pension Plan amendment as a termination under Section 4041 or 4041A of ERISA; (e) the institution by the PBGC of proceedings to terminate a
Pension Plan; (f) any event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan; (g) the determination that any Pension Plan is
considered an at-risk plan or any Multiemployer Plan is a plan in endangered or critical status within the meaning of Sections 430, 431 and 432 of the Internal Revenue Code or Sections 303, 304 and 305 of ERISA; or (h) the imposition of any
liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Company or any ERISA Affiliate. 
 “Event of Default” has the meaning given to such term in the Indenture. 

  
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 “Exchange Act” means the Securities Exchange Act of 1934, as amended, from
time to time, and any successor statute or Law thereto. 
 “Exchange Act Documents” means the Annual Report on
Form 10-K for the year ended December 31, 2011 filed by the Company with the SEC on March 15, 2012, and each other report or document filed by the Company with the SEC pursuant to the Exchange Act after such date and prior to the date
hereof, including the exhibits thereto. 
 “Filing Date” has the meaning given to such term in
Section 5.1(a). 
 “Final Prospectus” has the meaning given to such term in Section 5.4(a).

 “GAAP” has the meaning given to such term in the Indenture. 

“Governmental Authority” means the government of the United States or any other nation or of any political subdivision
thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining
to government (including any supra-national bodies such as the European Union or the European Central Bank). 

“Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances,
wastes or other pollutants, including petroleum distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any
Environmental Law. 
 “Holder” or “Holders” means each Purchaser (so long as it holds any
Securities) and any other holder of any of the Securities. For purposes of SECTION 5 (but not for purposes of the definition of “Registrable Securities”), “Holder” shall be limited to holders of Registrable Securities.

 “Holder Plan” has the meaning given to such term in Section 4.5(a). 

“Indebtedness” has the meaning given to such term in the Indenture. 

“Indemnified Party” has the meaning given to such term in Section 5.4(c). 

“Indemnifying Party” has the meaning given to such term in Section 5.4(c). 

“Indenture” has the meaning given to such term in Section 1.1(c). 

“Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from time to time, and any successor statute
or Law thereto. 
 “IRS” means the United States Internal Revenue Service. 

“Knight” has the meaning given to such term in Section 1.4(a)(i). 

  
 30 

 “Laws” means all international, foreign, federal, state and local statutes,
treaties rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or
administration thereof, and all applicable administrative orders, directed duties, licenses, authorizations and permits of, and agreements with, any Governmental Authority. 
 “Legal Holiday” means a Saturday, Sunday or day on which banks and trust companies in the principal place of business of the Company or in the City of New York are not required to be
open. 
 “Lien” means any mortgage, pledge, lien, encumbrance, charge or adverse claim affecting title or
resulting in a charge against real or personal property, or security interest of any kind (including, without limitation, any conditional sale or other title retention agreement, any lease in the nature thereof, any option or other agreement to sell
and any filing of any financing statement under the Uniform Commercial Code (or equivalent statutes) of any jurisdiction). 

“Material Adverse Effect” means (a) a material adverse effect upon the business, operations, properties, assets,
condition (financial or otherwise) or prospects of the Company and its Subsidiaries, considered as a single enterprise or (b) a material adverse effect on the ability of the Company to perform its obligations under this Agreement or of any
Purchaser or Holder to enforce or collect any of the obligations hereunder or under any of the other Documents. In determining whether any individual event could reasonably be expected to result in a Material Adverse Effect, notwithstanding that
such event does not of itself have such effect, a Material Adverse Effect shall be deemed to have occurred if the cumulative effect of such event and all other then existing events could reasonably be expected to result in a Material Adverse Effect.

 “Multiemployer Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of
ERISA, to which the Company or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated to make contributions. 

“Multiple Employer Plan” means a plan which has two or more contributing sponsors (including the Company or any ERISA
Affiliate) at least two of whom are not under common control, as such a plan is described in Section 4064 of ERISA. 

“Ninety Day Period” has the meaning given to such term in Section 5.5(b). 

“Notes” has the meaning given to such term in Section 1.1(a). 

“Notes Register” has the meaning given to such term in Section 1.5. 

“Offering” has the meaning given to such term in Section 1.1(b). 

“Offering Memorandum” means the Company’s Offering Memorandum dated October 9, 2012, as revised by the revised
offering memorandum dated October 10, 2012, relating to the Securities. 

  
 31 

 “OID” has the meaning given to such term in Section 1.3. 

“PBGC” means the Pension Benefit Guaranty Corporation. 

“Pension Act” means the Pension Protection Act of 2006. 

“Pension Funding Rules” means the rules of the Internal Revenue Code and ERISA regarding minimum required contributions
(including any installment payment thereof) to Pension Plans and set forth in, with respect to plan years ending before the effective date of the Pension Act, Section 412 of the Internal Revenue Code and Section 302 of ERISA, each as in
effect before the Pension Act and, thereafter, Section 412, 430, 431, 432 and 436 of the Internal Revenue Code and Sections 302, 303, 304 and 305 of ERISA. 
 “Pension Plan” means any employee pension benefit plan within the meaning of Section 3(3) or ERISA (including a Multiple Employer Plan or a Multiemployer Plan) that is maintained or
is contributed to by the Company and any ERISA Affiliate and is either covered by Title IV of ERISA or is subject to the minimum funding standards under Section 412 of the Internal Revenue Code. 

“Person” means an individual, partnership, corporation, limited liability company, trust or unincorporated organization
or a government or agency or political subdivision thereof. 
 “Placement Agent” has the meaning given to such
term in Section 4.7. 
 “Plan” means any employee benefit plan within the meaning of Section 3(3) of
ERISA (including a Pension Plan) other than a Multiemployer Plan, maintained for employees of the Company or any ERISA Affiliate or any such Plan to which the Company or any ERISA Affiliate is required to contribute on behalf of any of its
employees. 
 “PTCE” has the meaning given to such term in Section 4.5(b). 

“Purchasers” means the purchasers on the signature pages hereto. 

“Registrable Securities” means the Warrant Shares; provided, however, that securities shall only be
treated as Registrable Securities (a) if and only for so long as they (i) have not been disposed of pursuant to a registration statement declared effective by the SEC, (ii) have not been sold in a transaction exempt from the
registration and prospectus delivery requirements of the Securities Act so that all transfer restrictions and restrictive legends with respect thereto are removed upon the consummation of such sale and are held by (A) a Purchaser under this
Agreement, (B) a Holder or (C) an owner of Warrant Shares who is not a Purchaser or a Holder but who has delivered to the Company a written undertaking, in form reasonably satisfactory to the Company, to be subject to the obligations of a
Holder under Article 5 of this Agreement and (b) until the third anniversary of the Closing Date. Notwithstanding the foregoing, Registrable Securities shall not be deemed Registrable Securities at any time during which such Registrable
Securities may be sold under Rule 144 during any 90 day period without any limitations as to volume or holding period. 

  
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 “Registration Expenses” means all expenses incurred by the Company in
complying with SECTION 5 hereof, including, without limitation, all registration, qualification and filing fees, printing expenses, escrow fees, fees and expenses of counsel for the Company, Blue Sky fees and expenses, all fees and expenses of legal
counsel for any Holder, and the expense of any special audits incident to or required by any such registration (but excluding all Selling Expenses). 
 “Registration Period” has the meaning given to such term in Section 5.3(a). 
 “Registration Statement” has the meaning given to such term in Section 5.1(a). 
 “Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping or disposing into the environment of any Hazardous
Materials (including the abandonment or discarding of barrels, containers and other closed receptacles containing any Hazardous Materials). 
 “Regulation M” has the meaning promulgated by the Commission pursuant to the Exchange Act, as such regulation may be amended from time to time. 

“Reportable Event” means any of the events set forth in Section 4043(c) or ERISA, other than events for which the
30-day notice period has been waived. 
 “Rule 144” means Rule 144 as promulgated by the SEC under the
Securities Act, as amended from time to time, and any successor rule or regulation thereto. 
 “Rule 144A”
means Rule 144A as promulgated by the SEC under the Securities Act, as amended from time to time, and any successor rule or regulation thereto. 
 “Rule 424(b)” means Rule 424(b) as promulgated by the SEC under the Securities Act, as amended from time to time, and any successor rule or regulation thereto. 

“Rule 434” means Rule 434 as promulgated by the SEC under the Securities Act, as amended from time to time, and any
successor rule or regulation thereto. 
 “SEC” means the United States Securities and Exchange Commission and
any successor thereto. 
 “Securities Act” means the Securities Act of 1933, as amended from time to time, and
any successor statute or Law thereto. 
 “Security” or “Securities” has the meaning given to
such term in Section 1.1(a). 
 “Selling Expenses” means all selling commissions applicable to the sale of
Registrable Securities. 
 “Solvent” means, with respect to any Person on a particular date, that on such date,
(a) the fair saleable value of the assets of such Person exceeds its probable liability on its debts as they become absolute and mature, (b) all of such Person’s assets, at a fair valuation, exceed the

  
 33 

 
sum of such Person’s debts, (c) such Person is able to pay its debts or liabilities as such debts and liabilities mature and (d) such Person is not engaged in a business or
transaction, and is not about to engage in a business or transaction, for which such Person’s assets would constitute an unreasonably small capital. 
 “Subsidiary” means, with respect to any Person, (a) a corporation a majority of whose Capital Stock with voting power, under ordinary circumstances, to elect directors is, at the
date of determination, directly or indirectly, owned by such Person, by one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person or (b) a partnership in which such Person or a Subsidiary of such
Person is, at the date of determination, a general or limited partner of such partnership, but, in the case of a limited partner, only if such Person or its Subsidiary is entitled to receive more than 50% of the assets of such partnership upon its
dissolution, or (c) any limited liability company or any other Person (other than a corporation or a partnership) in which such Person, a Subsidiary of such Person or such Person and one or more Subsidiaries of such Person, directly or
indirectly, at the date of determination, has (i) at least a majority ownership interest or (ii) the power to elect or direct the election of a majority of the directors or other governing body of such Person. 

“Taxes” means all Federal, state, local and foreign taxes, and other assessments of a similar nature (whether imposed
directly or through withholding), including any interest, additions to tax, or penalties applicable thereto. 
 “Tax
Return” means all Federal, state, local and foreign tax returns, declarations, statements, reports, schedules, forms and information returns and any amended Tax Return relating to Taxes. 

“Trustee” has the meaning given to such term in Section 1.1(c). 

“Voting Securities” means any class of Equity Interests of a Person pursuant to which the holders thereof have, at the
time of determination, the general voting power (“Voting Power”) under ordinary circumstances to vote for the election of directors, managers, trustees or general partners of such Person (regardless of whether at the time any other
class or classes will have or might have voting power by reason of the happening of any contingency). 
 “Warrant
Agent” has the meaning given to such term in the Warrant Agreement. 
 “Warrant Agreement” has the
meaning given to such term in Section 1.1(d). 
 “Warrants” has the meaning given to such term in
Section 1.1(a). 
 “Warrant Register” has the meaning given to such term in Section 1.5. 

“Warrant Shares” has the meaning given to such term in Section 1.1(d). 

“Wunderlich” has the meaning given to such term in Section 4.7. 

  
 34 

	6.2	Rules of Construction. 

Unless the context otherwise requires: 
 (a) a term has the meaning assigned to it; 
 (b) “or” is
not exclusive; 
 (c) words in the singular include the plural, and words in the plural include the singular;

 (d) provisions apply to successive events and transactions; 

(e) “herein,” “hereof,” “hereunder” and other words of similar import refer to this
Agreement as a whole and not to any particular Section or other subdivision; and. 
 (f) any reference to a
“Section,” “Annex” or “Schedule” refers to a Section of, an Annex to, or a Schedule to this Agreement, respectively. 
 SECTION 7. MISCELLANEOUS. 
  

	7.1	Amendments and Waivers. 

No amendment, supplement, modification or waiver of any provision of this Agreement, nor any consent or approval to any departure
therefrom, shall in any event be valid or effective, unless the same shall be in writing and signed by each of the parties hereto. 
  

	7.2	Notices. 

 All notices and
other communications provided for or permitted hereunder shall be made by hand-delivery, first-class mail, telex, telecopier, or overnight air courier guaranteeing next day delivery: 

(a) if to any Purchaser, at such Purchaser’s address or telecopy number set forth on Schedule 1.1 hereto; and

 (b) if to the Company, 1177 Enclave Parkway, Suite 300, Houston, Texas 77077, Attention: General Counsel,
Phone: (281)-899-5700, Fax: (281) 899-5702 with a copy to Fulbright & Jaworski L.L.P., 2200 Ross Avenue, Suite 2800, Dallas, Texas 75201, Attention: Harva Dockery, Phone: (214)-855-8369, Fax: (214) 855-8200. 

All such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five
business days after being deposited in the mail, postage prepaid, if mailed; when answered back if telexed; when receipt acknowledged, if telecopied; and the next business day after timely delivery to the courier, if sent by overnight air courier
guaranteeing next day delivery. The parties may change the addresses to which notices are to be given by giving five days’ prior notice of such change in accordance herewith. 

  
 35 

	7.3	Successors and Assigns. 

This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties. 

 

	7.4	Counterparts. 

 This
Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

  

	7.5	Headings. 

 The headings
in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. 
  

	7.6	Governing Law; Submission to Jurisdiction. 

 This Agreement and all issues hereunder shall be governed by and construed in accordance with the Laws of the State of New York. To the fullest extent it may effectively do so under applicable Law, the
Company hereby irrevocably submits to the jurisdiction of any New York state court sitting in the Borough of Manhattan in the City of New York or any federal court sitting in the Borough of Manhattan in the City of New York in respect of any suit,
action or proceeding arising out of or relating to this Agreement or any of the Documents, and irrevocably accepts for itself and in respect of its property, generally and unconditionally, jurisdiction of the aforesaid courts. The Company
irrevocably waives, to the fullest extent it may effectively do so under applicable Law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that
any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. Nothing herein shall affect the right of any Purchaser or any Holder of a Security to serve process in any other manner permitted by Law or to
commence legal proceedings or otherwise proceeding against the Company in any other jurisdiction. 
  

	7.7	Entire Agreement. 

 This
Agreement, together with the other Documents, is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the
subject matter contained herein and therein. This Agreement, together with the other Documents, supersedes all prior agreements and understandings between the parties hereto with respect to such subject matter hereof. 

 

	7.8	Severability. 

 In the
event that any one or more of the provisions contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision
in every other respect and of the remaining provisions hereof shall not be in any way impaired or affected, it being intended that each Purchaser’s rights and privileges shall be enforceable to the fullest extent permitted by Law. 

  
 36 

	7.9	Further Assurances. 

 The
Company shall, and shall cause each of its Subsidiaries to, at its cost and expense, upon request of any Purchaser or Holder, duly execute and deliver, or cause to be duly executed and delivered, to such Purchaser or Holder such further instruments
and do or cause to be done such further acts as may be necessary or proper in the reasonable opinion of such Purchaser or Holder to carry out more effectually the provisions and purposes of this Agreement and the other Documents. 

(Signature pages follow) 

  
 37 

 IN WITNESS WHEREOF, this Agreement has been duly executed by the parties set forth below as
of the date first written above. 
  

			
	HARVEST NATURAL RESOURCES, INC.
		
	By:	 	 /s/ Stephen C. Haynes

	Name:	 	Stephen C. Haynes
	Title:	 	Vice President and Chief Financial Officer

  
 Signature
Page to Securities Purchase Agreement 

			
	 ADVANCED SERIES TRUST – AST
 ACADEMIC STRATEGIES ASSET
 ALLOCATION PORTFOLIO

		
	By:	 	 /s/ Brendan Kalb

	Name:	 	Brendan Kalb
	Title:	 	General Counsel

 Check yes X or no   ̈. The Purchaser whose signature
appears above hereby elects to be subject to the Beneficial Ownership Limitation Provisions described in Section 1.11 of this Agreement and in any certificate representing the Warrants. If no box is checked, it will be assumed that the
Purchaser does NOT so elect. 
 Notes Purchased: $675,000 
 Warrants Purchased: 5,813 
 Aggregate Purchase Price: $648,000 

(wire this amount) 
 IAI Notes CUSIP:
41754V AE3 
 IAI Warrants CUSIP: 41754V 152 

  
 Signature
Page to Securities Purchase Agreement 

			
	AMICI ASSOCIATES L.P.
		
	By:	 	 /s/ Paul Orlin

	Name:	 	Paul Orlin
	Title:	 	Managing Member of Porter Orlin LLC

 Check yes  ̈ or no X. The Purchaser whose signature appears above
hereby elects to be subject to the Beneficial Ownership Limitation Provisions described in Section 1.11 of this Agreement and in any certificate representing the Warrants. If no box is checked, it will be assumed that the Purchaser does NOT so
elect. 
 Notes Purchased: $534,000 

Warrants Purchased: 4,595 
 Aggregate Purchase
Price: $512,640 
 (wire this amount) 
 IAI Notes CUSIP: 41754V AE3 
 IAI Warrants CUSIP: 41754V 152 

  
 Signature
Page to Securities Purchase Agreement 

			
	AMICI FUND INTERNATIONAL, LTD.
		
	By:	 	 /s/ Paul Orlin

	Name:	 	Paul Orlin
	Title:	 	Managing Member of Porter Orlin LLC

 Check yes  ̈ or no X. The Purchaser whose signature appears above
hereby elects to be subject to the Beneficial Ownership Limitation Provisions described in Section 1.11 of this Agreement and in any certificate representing the Warrants. If no box is checked, it will be assumed that the Purchaser does NOT so
elect. 
 Notes Purchased: $2,477,000 

Warrants Purchased: 21,326 
 Aggregate Purchase
Price: $2,377,920  
 (wire this amount) 
 IAI Notes CUSIP: 41754V AE3 
 IAI Warrants CUSIP: 41754V 152 

  
 Signature
Page to Securities Purchase Agreement 

 
			
	AMICI QUALIFIED ASSOCIATES, L.P.
		
	By:	 	 /s/ Paul Orlin

	Name:	 	Paul Orlin
	Title:	 	Managing Member of Porter Orlin LLC

 Check yes  ̈ or no
 ̈. The Purchaser whose signature appears above hereby elects to be subject to the Beneficial Ownership Limitation Provisions described in Section 1.11 of this Agreement and in any certificate
representing the Warrants. If no box is checked, it will be assumed that the Purchaser does NOT so elect. 
 Notes Purchased: $1,567,000

 Warrants Purchased: 13,757 

Aggregate Purchase Price: $1,533,120 

(wire this amount) 
 IAI Notes CUSIP:
41754V AE3 
 IAI Warrants CUSIP: 41754V 152 

  
 Signature
Page to Securities Purchase Agreement 

 
			
	 AQR FUNDS – AQR DIVERSIFIED
 ARBITRAGE FUND

		
	By:	 	 /s/ Brendan Kalb

	Name:	 	Brendan Kalb
	Title:	 	Executive Vice President & Secretary

 Check yes X or no  ̈. The Purchaser whose signature appears above
hereby elects to be subject to the Beneficial Ownership Limitation Provisions described in Section 1.11 of this Agreement and in any certificate representing the Warrants. If no box is checked, it will be assumed that the Purchaser does NOT so
elect. 
 Notes Purchased: $5,975,000 

Warrants Purchased: 51,454 
 Aggregate Purchase
Price: $5,736,000 
 (wire this amount) 
 IAI Notes CUSIP: 41754V AE3 
 IAI Warrants CUSIP: 41754V 152 

  
 Signature
Page to Securities Purchase Agreement 

			
	 AQR OPPORTUNISTIC PREMIUM OFFSHORE
 FUND, L.P.

		
	By:	 	 /s/ Brendan Kalb

	Name:	 	Brendan Kalb
	Title:	 	General Counsel

 Check yes X or no  ̈. The Purchaser whose signature appears above
hereby elects to be subject to the Beneficial Ownership Limitation Provisions described in Section 1.11 of this Agreement and in any certificate representing the Warrants. If no box is checked, it will be assumed that the Purchaser does NOT so
elect. 
 Notes Purchased: $700,000 

Warrants Purchased: 6,028 
 Aggregate Purchase
Price: $672,000 
 (wire this amount) 
 IAI Notes CUSIP: 41754V AE3 
 IAI Warrants CUSIP: 41754V 152 

  
 Signature
Page to Securities Purchase Agreement 

 
			
	CHULA ENTERPRISES LLC
		
	By:	 	 /s/ David K. Sherman

	Name:	 	David K. Sherman
	Title:	 	Authorized Agent as Investment Adviser

 Check yes  ̈ or no
 ̈. The Purchaser whose signature appears above hereby elects to be subject to the Beneficial Ownership Limitation Provisions described in Section 1.11 of this Agreement and in any certificate
representing the Warrants. If no box is checked, it will be assumed that the Purchaser does NOT so elect. 
 Notes Purchased: $100,000

 Warrants Purchased: 861 
 Aggregate
Purchase Price: $96,000 
 (wire this amount) 
 IAI Notes CUSIP: 41754V AE3 
 IAI Warrants CUSIP: 41754V 152 

  
 Signature
Page to Securities Purchase Agreement 

 
			
	 CNH DIVERSIFIED OPPORTUNITIES MASTER
 ACCOUNT, L.P.

		
	By:	 	 /s/ Brendan Kalb

	Name:	 	Brendan Kalb
	Title:	 	General Counsel

 Check yes X or no  ̈. The Purchaser whose signature appears above
hereby elects to be subject to the Beneficial Ownership Limitation Provisions described in Section 1.11 of this Agreement and in any certificate representing the Warrants. If no box is checked, it will be assumed that the Purchaser does NOT so
elect. 
 Notes Purchased: $150,000 

Warrants Purchased: 1,292 
 Aggregate Purchase
Price: $144,000 
 (wire this amount) 
 IAI Notes CUSIP: 41754V AE3 
 IAI Warrants CUSIP: 41754V 152 

  
 Signature
Page to Securities Purchase Agreement 

 
			
	 COHANZICK ABSOLUTE RETURN MASTER
 FUND, LTD.

		
	By:	 	 /s/ David K. Sherman

	Name:	 	David K. Sherman
	Title:	 	Authorized Agent

 Check yes  ̈ or no
 ̈. The Purchaser whose signature appears above hereby elects to be subject to the Beneficial Ownership Limitation Provisions described in Section 1.11 of this Agreement and in any certificate
representing the Warrants. If no box is checked, it will be assumed that the Purchaser does NOT so elect. 
 Notes Purchased: $575,000

 Warrants Purchased: 4,951 

Aggregate Purchase Price: $552,000 

(wire this amount) 
 IAI Notes CUSIP:
41754V AE3 
 IAI Warrants CUSIP: 41754V 152 

  
 Signature
Page to Securities Purchase Agreement 

 
			
	 COHANZICK CREDIT OPPORTUNITIES
 MASTER FUND, LTD.

		
	By:	 	 /s/ David K. Sherman

	Name:	 	David K. Sherman
	Title:	 	Authorized Agent

 Check yes  ̈ or no
 ̈. The Purchaser whose signature appears above hereby elects to be subject to the Beneficial Ownership Limitation Provisions described in Section 1.11 of this Agreement and in any certificate
representing the Warrants. If no box is checked, it will be assumed that the Purchaser does NOT so elect. 
 Notes Purchased: $175,000

 Warrants Purchased: 1,507 

Aggregate Purchase Price: $168,000 

(wire this amount) 
 IAI Notes CUSIP:
41754V AE3 
 IAI Warrants CUSIP: 41754V 152 

  
 Signature
Page to Securities Purchase Agreement 

 
			
	THE COLLECTORS’ FUND, L.P.
		
	By:	 	 /s/ Paul Orlin

	Name:	 	Paul Orlin
	Title:	 	Managing Member of Porter Orlin LLC

 Check yes  ̈ or no X. The Purchaser whose signature appears above
hereby elects to be subject to the Beneficial Ownership Limitation Provisions described in Section 1.11 of this Agreement and in any certificate representing the Warrants. If no box is checked, it will be assumed that the Purchaser does NOT so
elect. 
 Notes Purchased: $392,000 

Warrants Purchased: 3,379 
 Aggregate Purchase
Price: $376,320 
 (wire this amount) 
 IAI Notes CUSIP: 41754V AE3 
 IAI Warrants CUSIP: 41754V 152 

  
 Signature
Page to Securities Purchase Agreement 

 
			
	DCF PARTNERS, LP
		
	By:	 	 /s/ David S. Floren

	Name:	 	David S. Floren
	Title:	 	General Partner

 Check yes  ̈ or no X. The Purchaser whose signature appears above
hereby elects to be subject to the Beneficial Ownership Limitation Provisions described in Section 1.11 of this Agreement and in any certificate representing the Warrants. If no box is checked, it will be assumed that the Purchaser does NOT so
elect. 
 Notes Purchased: $2,500,000 

Warrants Purchased: 21,529 
 Aggregate Purchase
Price: $2,400,000 
 (wire this amount) 
 IAI Notes CUSIP: 41754V AE3 
 IAI Warrants CUSIP: 41754V 152 

  
 Signature
Page to Securities Purchase Agreement 

 
			
	DUBUQUE BANK & TRUST
		
	By:	 	 /s/ Michael G. Flood

	Name:	 	Michael G. Flood
	Title:	 	Equity Manager

 Check yes  ̈ or no X. The Purchaser whose signature appears above
hereby elects to be subject to the Beneficial Ownership Limitation Provisions described in Section 1.11 of this Agreement and in any certificate representing the Warrants. If no box is checked, it will be assumed that the Purchaser does NOT so
elect. 
 Notes Purchased: $1,250,000 

Warrants Purchased: 10,764 
 Aggregate Purchase
Price: $1,200,000 
 (wire this amount) 
 IAI Notes CUSIP: 41754V AE3 
 IAI Warrants CUSIP: 41754V 152 

  
 Signature
Page to Securities Purchase Agreement 

			
	MSD CREDIT OPPORTUNITY FUND, L.P.
		
	By:	 	 /s/ Marcello Liguori

	Name:	 	Marcello Liguori
	Title:	 	Managing Director

 Check yes X or no  ̈. The Purchaser whose signature appears above
hereby elects to be subject to the Beneficial Ownership Limitation Provisions described in Section 1.11 of this Agreement and in any certificate representing the Warrants. If no box is checked, it will be assumed that the Purchaser does NOT so
elect. 
 Notes Purchased: $40,000,000 

Warrants Purchased: 344,456 
 Aggregate
Purchase Price: $38,400,000 
 (wire this amount) 
 IAI Notes CUSIP: 41754V AE3 
 IAI Warrants CUSIP: 41754V 152 

  
 Signature
Page to Securities Purchase Agreement 

			
	MSD ENERGY PARTNERS, L.P.
		
	By:	 	 /s/ Marcello Liguori

	Name:	 	Marcello Liguori
	Title:	 	Managing Director

 Check yes X or no  ̈. The Purchaser whose signature appears above
hereby elects to be subject to the Beneficial Ownership Limitation Provisions described in Section 1.11 of this Agreement and in any certificate representing the Warrants. If no box is checked, it will be assumed that the Purchaser does NOT so
elect. 
 Notes Purchased: $10,500,000 

Warrants Purchased: 90,420 
 Aggregate Purchase
Price: $0 
 (wire this amount) 
 IAI Notes CUSIP: 41754V AE3 
 IAI Warrants CUSIP: 41754V 152 

  
 Signature
Page to Securities Purchase Agreement 

			
	TRIMARC CAPITAL FUND, LP
		
	By:	 	 /s/ Michael Trica

	Name:	 	Michael Trica
	Title:	 	Portfolio Manager

 Check yes  ̈ or no X. The Purchaser whose signature appears above
hereby elects to be subject to the Beneficial Ownership Limitation Provisions described in Section 1.11 of this Agreement and in any certificate representing the Warrants. If no box is checked, it will be assumed that the Purchaser does NOT so
elect. 
 Notes Purchased: $2,000,000 

Warrants Purchased: 17,223 
 Aggregate Purchase
Price: $1,920,000 
 (wire this amount) 
 IAI Notes CUSIP: 41754V AE3 
 IAI Warrants CUSIP: 41754V 152 

  
 Signature
Page to Securities Purchase Agreement 

 
			
	ULYSSES PARTNERS LP
		
	By:	 	 /s/ David K. Sherman

	Name:	 	David K. Sherman
	Title:	 	Authorized Agent as Investment Advisor

 Check yes  ̈ or no
 ̈. The Purchaser whose signature appears above hereby elects to be subject to the Beneficial Ownership Limitation Provisions described in Section 1.11 of this Agreement and in any certificate
representing the Warrants. If no box is checked, it will be assumed that the Purchaser does NOT so elect. 
 Notes Purchased: $150,000

 Warrants Purchased: 1,292 

Aggregate Purchase Price: $144,000 

(wire this amount) 
 IAI Notes CUSIP:
41754V AE3 
 IAI Warrants CUSIP: 41754V 152 

  
 Signature
Page to Securities Purchase Agreement 

 
			
	VR GLOBAL PARTNERS, L.P.
		
	By:	 	 /s/ Jeffrey Johnson

	Name:	 	Jeffrey Johnson
	Title:	 	Director

 Check yes  ̈ or no X. The Purchaser whose signature appears above
hereby elects to be subject to the Beneficial Ownership Limitation Provisions described in Section 1.11 of this Agreement and in any certificate representing the Warrants. If no box is checked, it will be assumed that the Purchaser does NOT so
elect. 
 Notes Purchased: $7,000,000 

Warrants Purchased: 60,280 
 Aggregate Purchase
Price: $6,720,000 
 (wire this amount) 
 IAI Notes CUSIP: 41754V AE3 
 IAI Warrants CUSIP: 41754V 152 

  
 Signature
Page to Securities Purchase Agreement 

 
			
	 WOLVERINE FLAGSHIP FUND TRADING
 LIMITED

		
	By:	 	 /s/ Andrew R. Sujdak

	Name:	 	Andrew R. Sujdak
	Title:	 	 Managing Director, Wolverine Asset
 Management (its General Partner)

 Check yes  ̈ or no
 ̈. The Purchaser whose signature appears above hereby elects to be subject to the Beneficial Ownership Limitation Provisions described in Section 1.11 of this Agreement and in any certificate
representing the Warrants. If no box is checked, it will be assumed that the Purchaser does NOT so elect. 
 Notes Purchased: $3,000,000

 Warrants Purchased: 25,834 

Aggregate Purchase Price: $2,880,000 

(wire this amount) 
 IAI Notes CUSIP:
41754V AE3 
 IAI Warrants CUSIP: 41754V 152 

  
 Signature
Page to Securities Purchase Agreement 

 Annex A 
 Form of Indenture 
 [Separately provided.] 

A 

 Annex B 
 Form of Warrant Agreement 
 [Separately provided.] 

B 

 Annex C 
 Form of Legal Opinion of Special Counsel to the Company 
 Capitalized terms used
in this Annex have the respective meanings (i) set forth below, or (ii) if not so set forth, given to such terms in the Purchase Agreement to which this Annex is attached (the “Purchase Agreement”). 

“Applicable Agreements” means those agreements and other instruments included among the agreements and other instruments
that have been filed or listed as exhibits to any of the Exchange Act Documents. 
 “Applicable Orders” means
those orders or decrees of governmental authorities listed in Schedule [    ] to this opinion letter, which have been certified by officers of the Company as being every order or decree of any governmental authority by
which the Company or any of its subsidiaries or any of their respective properties is bound, that is material in relation to the business, operations, affairs, financial condition, assets, or properties of the Company and its subsidiaries,
considered as a single enterprise. [However, officers of the Company have certified to us that there are no Applicable Orders.] 

“Transaction Agreements” means the Purchase Agreement, the Indenture, the Notes, the Warrant Agreement and the Warrants.

 References herein to “applicable laws” mean those laws, rules and regulations that, in our experience, are normally
applicable to transactions of the type contemplated by the Transaction Agreements, without our having made any special investigation as to the applicability of any specific law, rule or regulation, and that are not the subject of a specific opinion
herein referring expressly to a particular law or laws; provided however, that such references do not include any municipal or other local laws, rules or regulations, or any antifraud, environmental, labor, securities (except as set forth in
paragraphs 10 and 11 below), tax, insurance or antitrust, laws, rules or regulations. 
 1. The Company is validly existing as a
corporation and in good standing under the laws of the State of Delaware. 
 2. The Company has the corporate power and
corporate authority under the laws of the State of Delaware to (i) execute and deliver, and incur and perform all of its obligations under, each of the Transaction Agreements and (ii) carry on its business and own its properties as
described in the Exchange Act Documents. 
 3. Each of the Transaction Agreements has been duly authorized, executed and
delivered by the Company. 
 4. None of (i) the execution and delivery of, or the incurrence or performance by the Company
of its obligations under, each of the Transaction Agreements, each in accordance with its terms and (ii) the offering, issuance, sale and delivery of the Securities pursuant to the Purchase Agreement, (A) constituted, constitutes or will
constitute a violation of the Company’s Charter Documents, (B) constituted, constitutes or will constitute a breach or violation of, or a 
 Annex C - Page 1 

 
default (or an event which, with notice or lapse of time or both, would constitute such a default), under any Applicable Agreement, (C) resulted, results or will result in the creation of
any security interest in, or lien upon, any of the property or assets of the Company or any of its subsidiaries pursuant to any Applicable Agreement, (D) resulted, results or will result in any violation of (i) applicable laws of the State
of New York, (ii) applicable laws of the State of Texas, (iii) applicable laws of the United States of America or (iii) the General Corporation Law of the State of Delaware or (E) resulted, results or will result in the
contravention of any Applicable Order. 
 5. No Governmental Approval or Filing, which has not been obtained or made and is not
in full force and effect, is required to authorize, or is required for the execution and delivery by the Company of, the Transaction Agreements or the incurrence or performance of its obligations thereunder, or the enforceability of any of such
Transaction Agreements against the Company. As used in this paragraph, “Governmental Approval or Filing” means any consent, approval, license, authorization or validation of, or filing, recording or registration with, any executive,
legislative, judicial, administrative or regulatory body of the State of New York, the State of Texas, the State of Delaware or the United States of America, pursuant to (i) applicable laws of the State of New York, (ii) applicable laws of
the State of Texas, (iii) the General Corporation Law of the State of Delaware or (iv) applicable laws of the United States of America. 
 6. Each of the Transaction Agreements constitutes a valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, under applicable laws of the State of New
York. 
 7. In a case properly argued and presented, a Texas state court having jurisdiction and applying Texas law (including,
without limitation, the conflict of law principles set forth in Chapter 271 of the Texas Business and Commerce Code) or a United States federal court having jurisdiction and applying Texas law (including, without limitation, the conflict of law
principles set forth in Chapter 271 of the Texas Business and Commerce Code) would enforce the provisions contained in the Transaction Agreements that purport to require that the rights and obligations of the parties thereto are to be governed by
and construed in accordance with the laws of the State of New York. 
 8. In a case properly argued and presented, a New York
state court having jurisdiction and applying New York law (including, without limitation, New York General Obligations Law Section 5-1401) or a United States federal court having jurisdiction and applying New York law (including, without
limitation, New York General Obligations Law Section 5-1401) would enforce the provisions contained in the Transaction Agreements that purport to require that the rights and obligations of the parties thereto are to be governed by and construed
in accordance with the laws of the State of New York. 
 9. The holders of outstanding shares of capital stock of the Company
are not entitled to any preemptive rights under the Company’s Charter Documents or any Applicable Agreement, to subscribe for the Securities or the shares of the Company’s Common Stock issuable upon the exercise of any of the Warrants. The
shares of Common Stock issuable upon exercise of the Warrants at the initial exercise price provided in the Warrant Agreement and the 
 Annex C - Page 2 

 
Warrants have been duly authorized by the Company and reserved for issuance upon such exercise, and upon issuance of such shares of Common Stock pursuant to the exercise of the Warrants in
accordance with the terms of the Warrant Agreement and the Warrants at exercise prices at or in excess of the par value of such shares of Common Stock, such shares of Common Stock will be validly issued, fully paid and nonassessable. 

10. The issuance, sale and delivery by the Company of the Securities to the Purchasers in the manner contemplated by the Purchase
Agreement, do not require registration under the Securities Act of 1933, as amended, and such issuance, sale and delivery of the Notes do not require the Purchase Agreement or the Indenture to be qualified under the Trust Indenture Act of 1939, as
amended. 
 11. Each of the Company and its Subsidiaries is not, and immediately after giving effect to the issuance and sale of
the Securities occurring today and the application of proceeds therefrom as described in the Purchase Agreement, will not be, an “investment company” within the meaning of said term as used in the Investment Company Act of 1940, as
amended. 
 Annex C - Page 3 

 Schedule 1.1 
 Notices and Numbers of Securities 
  

			
	Wolverine Flagship Fund Trading Limited
	Notes:	  	$3,000,000
	Warrants:	  	25834
	Address	  	 C/O Wolverine Asset Management
 Dominic Data
 175 W. Jackson Blvd, Suite 200

Chicago, IL 60604

	Phone	  	(312) 884-4000
	Fax	  	(312) 884-4001
		
	Amici Associates L.P.	  	
	Notes:	  	$534,000
	Warrants:	  	4595
	Address	  	 Paul E. Orlin
 666 Fifth
Avenue, Suite 3403
 New York, NY 10103

	Phone	  	(212) 484-5000
	Fax	  	
		
	Amici Qualified Associates, L.P.	  	
	Notes:	  	$1,597,000
	Warrants:	  	13757
	Address	  	 Paul E. Orlin
 666 Fifth
Avenue, Suite 3403
 New York, NY 10103

	Phone	  	(212) 484-5000
	Fax	  	
		
	Amici Fund International, Ltd.	  	
	Notes:	  	$2,477,000
	Warrants:	  	21326
	Address	  	 Paul E. Orlin
 666 Fifth
Avenue, Suite 3403
 New York, NY 10103

	Phone	  	(212) 484-5000
	Fax	  	

  
 Schedule 1.1 -
Page 1 

			
	The Collectors’ Fund L.P.
	Notes:	  	$392,000
	Warrants:	  	3379
	Address	  	 Paul E. Orlin
 666 Fifth
Avenue, Suite 3403
 New York, NY 10103

	Phone	  	(212) 484-5000
	Fax	  	
		
	Trimarc Capital Fund, LP	  	
	Notes:	  	$2,000,000
	Warrants:	  	17223
	Address	  	 C/O Oakum Bay Capital, LLC

Michael Trica
 400 Madison Avenue, Suite
9D
 New York, NY 10017

	Phone	  	(646) 568-7110
	Fax	  	(646) 568-7121
		
	Dubuque Bank & Trust	  	
	Notes:	  	$1,250,000
	Warrants:	  	10764
	Address	  	 1398 Central Ave, PO Box 747

C/O Michael Flood
 Dubuque, IA
52001

	Phone	  	563-589-2031
	Fax	  	
		
	Cohanzick Credit Opportunities Master Fund, Ltd.	  	
	Notes:	  	$175,000
	Warrants:	  	1507
	Address	  	 Jonathan Barkoe
 C/O
Cohanzick Offshore Advisors, L.P.
 427 Bedford Road Suite 320
 Pleasantville, NY 10570

	Phone	  	(914) 741-9600
	Fax	  	(914) 206-4163

  
 Schedule 1.1 -
Page 2 

			
	Cohanzick Absolute Return Master Fund, Ltd.
	Notes:	  	$575,000
	Warrants:	  	4951
	Address	  	 Jonathan Barkoe
 C/O
Cohanzick Offshore Advisors, L.P.
 427 Bedford Road Suite 320
 Pleasantville, NY 10570

	Phone	  	(914) 741-9600
	Fax	  	(914) 206-4163
		
	Ulysses Partners LP	  	
	Notes:	  	$150,000
	Warrants:	  	1292
	Address	  	 Eric Squire
 One Rockefeller
Plaza, 20th Floor
 New York, NY 10020

	Phone	  	(212) 455-6238
	Fax	  	(212) 455-6286
		
	Chula Enterprises LLC	  	
	Notes:	  	$100,000
	Warrants:	  	861
	Address	  	 Warren Berman
 500 North
Third Street, Suite 205
 Fairfield, IA 52556

	Phone	  	(641) 472-4887
	Fax	  	(641) 472-6929
		
	DCF Partners, LP	  	
	Notes:	  	$2,500,000
	Warrants:	  	21529
	Address	  	 DCF Capital
 73 Arch
Street
 Greenwich, CT 06830

	Phone	  	(203) 622-5850
	Fax	  	(203) 422-6983

  
 Schedule 1.1 -
Page 3 

			
	VR Global Partners, L.P.	  	
	Notes:	  	$7,000,000
	Warrants:	  	60280
	Address	  	 Intertrust Corporate Services (Cayman) Limited
 87 Mary Street George Town
 Grand Cayman KY1-9005

Cayman Islands

	Phone	  	+971 4 372 3400
	Fax	  	+971 4 372 3499
		
	AQR Opportunistic Premium Offshore Fund, L.P.	  	
	Notes:	  	$700,000
	Warrants:	  	6028
	Address	  	 C/O CNH Partners, LLC

Brendan Kalb
 Two Greenwich Plaza, 3st
Floor
 Greenwich, CT 06830

	Phone	  	(203) 742-3618
	Fax	  	(203) 742-3118
	
	Advanced Series Trust - AST Academic Strategies Asset Allocation Portfolio
	Notes:	  	$675,000
	Warrants:	  	5813
	Address	  	C/O CNH Partners, LLCBrendan KalbTwo Greenwich Plaza, 3st Floor Greenwich, CT 06830
	Phone	  	(203) 742-3618
	Fax	  	(203) 742-3118
	
	CNH Diversified Opportunities Master Account, L.P.
	Notes:	  	$150,000
	Warrants:	  	1292
	Address	  	 C/O CNH Partners, LLC

Brendan Kalb
 Two Greenwich Plaza, 1st
Floor
 Greenwich, CT 06830

	Phone	  	(203) 742-3618
	Fax	  	(203) 742-3118

  
 Schedule 1.1 -
Page 4 

			
	AQR Funds - AQR Diversified Arbitrage Fund
	Notes:	  	$5,975,000
	Warrants:	  	51454
	Address	  	 C/O AQR Funds
 Brendan
Kalb
 Two Greenwich Plaza, 3st Floor

Greenwich, CT 06830

	Phone	  	(203) 742-3618
	Fax	  	(203) 742-3118
		
	MSD Energy Partners, L.P.	  	
	Notes:	  	$10,500,000
	Warrants:	  	90420
	Address	  	 Douglas Marks
 645 Fifth
Avenue, 21st Floor
 New York, NY 10022

	Phone	  	(212) 303-1694
	Fax	  	(212) 303-1622
		
	MSD Credit Opportunity Fund, L.P.	  	
	Notes:	  	$40,000,000
	Warrants:	  	344456
	Address	  	 Jeff Kravetz
 645 Fifth
Avenue, 21st Floor
 New York, NY 10022

	Phone	  	(212) 303-1655
	Fax	  	(212) 303-1622

  
 Schedule 1.1 -
Page 5 

 Schedule 3.10 
 Disclosed Litigation 
 In May 2012, Newfield Production Company
(“Newfield”) filed notice pursuant to the Purchase and Sale Agreement between Harvest (US) Holdings, Inc. (“Harvest US”) and Newfield dated March 21, 2011 (the “PSA”) of a potential environmental claim involving
certain wells drilled on the Antelope Project. The claim asserts that locations constructed by Harvest were built on, within, or otherwise impact or potentially impact wetlands and other water bodies. The notice asserts that to the extent of
potential penalties or other obligations that might result from potential violations that Harvest US indemnifies Newfield pursuant to the PSA. In June 2012, we provided Newfield with notice pursuant to the PSA (1) denying that Newfield has any
right to indemnification from us, (2) alleging that any potential environmental claim related to Newfield’s notice would be an assumed liability under the PSA and (3) asserting that Newfield indemnify us pursuant to the PSA. We
dispute Newfield’s claims and plan to vigorously defend against them. We are unable to estimate the amount or range of any possible loss. 
 Schedule 3.10 

 Schedule 3.11 
 Environmental Matters 
 Please see Schedule 3.10. 

Schedule 3.11 

 Schedule 3.14 
 Anti-Money Laundering Law Events 
 On May 31, 2011, the United Kingdom
branch of our subsidiary, Harvest Natural Resources, Inc. (UK), initiated a wire transfer of approximately $1.1 million ($0.7 million net to our 66.667 percent interest) intending to pay Libya Oil Gabon S.A. (“LOGSA”) for fuel that LOGSA
supplied to our subsidiary in the Netherlands, Harvest Dussafu, B.V., for the company’s drilling operations in Gabon. On June 1, 2011, our bank notified us that it had been required to block the payment in accordance with the U.S.
sanctions against Libya as set forth in Executive Order 13566 of February 25, 2011, and administered by OFAC, because the payee, LOGSA, may be a blocked party under the sanctions. The bank further advised us that it could not release the
funds to the payee or return the funds to us unless we obtain authorization from OFAC. On October 26, 2011, we filed an application with OFAC for return of the blocked funds to us. Unless that application is approved, the funds will
remain in the blocked account, and we can give no assurance when, or if, OFAC will permit the funds to be released. Our October 26, 2011 application for the return of the blocked funds remains pending with OFAC.

Schedule 3.14Investors' Rights Agreement dated September 6, 2011

 Exhibit 4.4 
 Execution Version 
 INVESTORS’ RIGHTS AGREEMENT 

This INVESTORS’ RIGHTS AGREEMENT (this “Agreement”) is entered into as of September 6, 2011 by and among:

 (1) YY Inc., a limited liability company duly incorporated and validly existing under the laws of the Cayman Islands (the
“Company”); 
 (2) Duowan Entertainment Corp., a limited liability company duly incorporated and validly
existing under the laws of the British Virgin Islands (the “Duowan BVI”); 
 (3) NeoTasks Inc., an
exempted limited liability company duly incorporated and validly existing under the laws of the Cayman Islands (the “Cayman Subsidiary”); 
 (4) NeoTasks Limited, a limited liability company duly incorporated and validly existing under the laws of Hong Kong (the “Hong Kong Subsidiary”); 

(5) Duowan Entertainment Information Technology (Beijing) Co., Ltd. 

, a wholly foreign-owned enterprise duly incorporated and validly existing under the laws of the PRC (the “Beijing WFOE”); 

(6) Zhuhai Duowan Technology Limited 

, a wholly foreign-owned enterprise duly incorporated and validly existing under the laws of the PRC (“Zhuhai WFOE”, together with the Beijing WFOE, the “WFOEs” and
individually, a “WFOE”); 
 (7) Zhuhai Duowan Information and Technology Co., Limited 

, a limited liability company duly incorporated and validly existing under the laws of the PRC (“Zhuhai Duowan”); 
 (8) Guangzhou Huaduo Network Technology Co., Limited 

, a limited liability company duly incorporated and validly existing under the laws of the PRC (“Guangzhou Huaduo”); 
 (9) Beijing Tuda Technology Co., Limited 

, a limited liability company duly incorporated and validly existing under the laws of the PRC (“Beijing Tuda”, together with Zhuhai Duowan and Guangzhou Huaduo, the “Domestic
Companies” and individually, a “Domestic Company”); 
 (10) the Persons listed on Exhibit
A hereto (each a “Key Holder” and collectively, the “Key Holders”); 
 (11)
the Persons listed on Exhibit B hereto (each a “Series A Investor” and collectively, the “Series A Investors”); 

(12) the Persons listed on Exhibit C hereto (each a “Series B Investor” and collectively, the
“Series B Investors”); 
 (13) the Persons listed on Exhibit D hereto (each a
“Series C Investor” and collectively, the “Series C Investors”); and 
 (14) Tiger Global Six YY Holdings, a limited liability company duly incorporated and validly existing under the laws of Mauritius (“Tiger”, together with the Series A Investors, the
Series B Investors and the Series C Investors, the “Investors” and individually, an “Investor”). 

  
 1 

 Execution Version 

 
 RECITALS 

WHEREAS: 
 (A) the Key
Holders, the Series A Investors, the Series B Investors, the Series C Investors, MTIL and Tiger were the legal and beneficial holders of all of the issued share capital of Duowan BVI immediately prior to the share exchange pursuant to a certain
Share Exchange Agreement, dated September 6, 2011, among the Company and other parties thereto (the “Share Exchange Agreement”); 
 (B) the Key Holders, the Series A Investors, the Series B Investors, the Series C Investors, MTIL and Tiger were parties to that certain Third Amended and Restated Investors’ Rights Agreement dated
January 21, 2011, among Duowan BVI and the parties thereto (the “BVI Investors’ Rights Agreement”); 
 (C) the Series
A Investors entered into a series A convertible preferred shares purchase agreement dated June 2, 2008 with Duowan BVI, the Key Holders and certain other parties thereto (the “Series A Preferred Share Purchase Agreement”) with
respect to the issuance and sale by Duowan BVI of 277,757 no par value convertible redeemable series A preferred shares at a consideration of US$2,000,000.00 to the Series A Investors; 
 (D) the Series B Investors entered into a series B preference share purchase agreement dated August 8, 2008 with Duowan BVI, the Key Holders and certain other parties thereto (the “Series B
Preferred Share Purchase Agreement”) with respect to the issuance and sale by Duowan BVI of 208,314 no par value convertible redeemable series B preferred shares at a consideration of US$5,000,015.30 to the Series B Investors; 

(E) the Series C Investors entered into a series C preferred share purchase agreement dated November 20, 2009 with Duowan BVI, the Key Holders and
certain other parties thereto (the “Series C Preferred Share Purchase Agreement”) with respect to the issuance and sale by Duowan BVI of 33,163 no par value convertible redeemable series C-1 preferred shares at a consideration of
US$1,299,989.60 and of 214,285 no par value convertible redeemable series C-2 preferred shares at a consideration of US$10,499,965.00 to the Series C Investors; 
 (F) Duowan BVI sub-divided all of its then authorised and issued Shares by means of a 490-for-1 share split which was approved by the shareholders’ resolutions on July 9, 2010; 

(G) Tiger entered into a common share purchase agreement and warrant purchase agreement dated January 21, 2011 with Duowan BVI, the Key Holders and
certain other parties thereto (the “Common Share Purchase Agreement”) with respect to the issuance and sale by Duowan BVI of 51,140,432 no par value common shares in Duowan BVI at an aggregate consideration of US$50,000,000 and a
warrant (the “Warrant”) to purchase 25,570,216 no par value common shares in Duowan BVI at a consideration of US$25,000,000 to Tiger. On July 29, 2011, Tiger exercised the Warrant and 25,570,216 no par value common shares in
Duowan BVI were issued to Tiger accordingly; and 
 (H) in connection with the share exchange (the “Share Exchange”) pursuant
to the Share Exchange Agreement, the parties hereto now wish to enter into this Agreement and a Right of First Refusal and Co-Sale Agreement among the parties hereto, dated on or about the date of this Agreement, for the purposes of regulating the
rights and obligations among them as well as the business and management of the Group Companies. 

  
 2 

 Execution Version 

 
 WITNESSETH 

NOW, THEREFORE, in consideration of the premises set forth above, the mutual promises and covenants set forth herein and other
good and valuable consideration, the parties hereby agree as follows: 
  

	1.	DEFINITIONS. 

 1.1 Certain Defined Terms.
As used in this Agreement, the following terms shall have the following respective meanings: 
 “Affiliate”
means, with respect to a Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control with such Person. For purposes of this Agreement, “control” means, when used with respect to any Person,
power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, and the terms “affiliated,” “controlling” and
“controlled” have meanings correlative to the foregoing. 
 “Agreement” has the meaning
ascribed to it in the Preamble to this Agreement. 
 “Beijing Tuda” has the meaning ascribed to it in the
Preamble to this Agreement. 
 “Beijing WFOE” has the meaning ascribed to it in the Preamble to this Agreement.

 “Board” means the board of Directors of the Company. 

“Budget” has the meaning ascribed to it in Section 2.1(c). 

“Business Day” means any day that is not a Saturday, Sunday, legal holiday or other day on which commercial banks are
required or authorized by laws to be closed in Hong Kong, Cayman Islands, British Virgin Islands, the PRC or New York. 

“BVI Investors Rights Agreement” means the third amended and restated investors’ right agreement dated
January 21, 2011 entered into by and among Duowan BVI, the Key Holders, the Series A Investors, the Series B Investors, the Series C Investors, MTIL, Tiger and certain other parties, together with the exhibits and schedules attached thereto.

 “Cayman Subsidiary” has the meaning ascribed to it in the Preamble to this Agreement. 

“Centre” has the meaning ascribed to it in Section 8.2(b). 

“CEO Director” has the meaning ascribed to it in Section 6.1(a). 

“CFC” has the meaning ascribed to it in Section 2.4(c). 

“Chairman” has the meaning ascribed to it in Section 6.1(c). 

“Code” means the United States Internal Revenue Code of 1986, as amended from time to time. 

“Commission” means (i) with respect to any offering of securities in the United States, the Securities and Exchange
Commission of the United States or any other federal agency at the time administering the Securities Act, and (ii) with respect to any offering of securities in a jurisdiction other than the United States, the regulatory body of the
jurisdiction with authority to supervise and regulate the sale of securities in that jurisdiction. 

  
 3 

 Execution Version 

 
 “Common Share Equivalent” means, with
respect to any shareholder of the Company, Common Shares owned by such shareholder together with the Common Shares into or for which any issued and outstanding Preferred Shares or any other issued and outstanding convertible securities (excluding,
for the avoidance of doubt, unexercised options or warrants) owned by such shareholder shall be convertible. 
 “Common
Shares” means common shares of par value of US$0.00001 each of the Company. 
 “Company” has the
meaning ascribed to it in the Preamble to this Agreement. 
 “Competitor” means Sina.com, qq.com, Ispeak.cn and
such other companies which provide team voice chat software used for personal computers in the PRC. For the purpose of this definition, the term “Competitor” shall not include the limited partners of any Investor. 

“Consultation Request” has the meaning ascribed to it in Section 8.2(a). 

“Conversion Shares” means the Common Shares issuable upon conversion of the Preferred Shares. 

“Deemed Liquidation Event” has the meaning ascribed to it in the Memorandum and Articles of the Company, as amended from
time to time. 
 “Directors” means the directors of the Company. 

“Domestic Company” and “Domestic Companies” have the meanings ascribed to them in the Preamble to this
Agreement. 
 “Duowan BVI” has the meaning ascribed to it in the Preamble to this Agreement. 

“Exchange Act” means the U.S. Securities and Exchange Act of 1934, and the rules and regulations promulgated thereunder,
as amended from time to time. 
 “Final Prospectus” has the meaning ascribed to it in
Section 3.8(d). 
 “First Participation Notice” has the meaning ascribed to it in
Section 4A.4(a). 
 “Form F-3” and “Form S-3” have the meanings ascribed to them
in Section 3.2(e). 
 “GGV” means Granite Global Ventures III L.P. and GGV III Entrepreneurs Fund
L.P., their general partners and any of their respective successors and assignees, collectively. 
 “Group
Companies” includes but without limitation the Company, Duowan BVI, the Cayman Subsidiary, the Hong Kong Subsidiary, the WFOEs, the Domestic Companies and any controlled Affiliate of each of the Company, Duowan BVI, the Cayman Subsidiary,
the Hong Kong Subsidiary, the WFOEs, and the Domestic Companies that is not a natural person (each a “Group Company”). 
 “Guangzhou Huaduo” has the meaning ascribed to it in the Preamble to this Agreement. 
 “HK GAAP” means the “Hong Kong Generally Accepted Accounting Principles”. 
 “Holder” has the meaning ascribed to it in Section 3.2(d). 
 “Hong Kong Subsidiary” has the meaning ascribed to it in the Preamble to this Agreement. 

  
 4 

 Execution Version 

 
 “Hong Kong” means the Hong Kong Special
Administrative Region of the PRC. 
 “Independent Director” has the meaning ascribed to it in
Section 6.1(a). 
 “Initiating Holders” has the meaning ascribed to it in
Section 3.3(b). 
 “Investment Securities” means the Common Shares, Preferred Shares and Conversion
Shares held by an Investor. 
 “Investors” means the Series A Investors, the Series B Investors, the Series C
Investors and Tiger. 
 “Investor Directors” means the Preferred Directors and the Tiger Director,
collectively; 
 “Key Employee” means each of the Persons listed in Exhibit E. 

“Key Holder Directors” means the directors nominated by the Key Holders in accordance with the provisions of
Section 6.1(a) and Section 6.1(b). 
 “Key Holder” and “Key Holders”
have the meanings ascribed to them in the Preamble to this Agreement. 
 “Liquidation Event” has the meaning
ascribed to it in the Memorandum and Articles, as amended from time to time. 
 “Majority Preferred Holders”
means the holders of more than fifty percent (50%) of the then outstanding Series A Preferred Shares, Series B Preferred Shares and Series C Preferred Shares, and the Conversion Shares issued upon conversion thereof, voting or consenting
together as a single class on a fully-diluted and as-if-converted basis. 
 “Majority Series A Holders” means
the holders of more than fifty percent (50%) of the then outstanding Series A Preferred Shares, and the Conversion Shares issued upon conversion thereof, on a fully-diluted and as-converted basis. 

“Majority Series B Holders” means the holders of more than fifty percent (50%) of the then outstanding Series B
Preferred Shares, and the Conversion Shares issued upon conversion thereof, on a fully-diluted and as-converted basis. 

“Majority Series C Holders” means, collectively, the holders of more than fifty percent (50%) of the then
outstanding Series C-1 Preferred Shares and the Series C-2 Preferred Shares, and the Conversion Shares issued upon conversion thereof, on a fully-diluted and as-converted basis. 

“Memorandum and Articles” means the memorandum and articles of association of the Company adopted by resolution in
writing of all shareholders of the Company, as amended from time to time, and the terms “Memorandum” and “Articles” shall be construed accordingly. 

“Morningside Group” means Favor Star Limited and Morningside China TMT Fund I, L.P., and any of their respective
successors and assignees, collectively. 
 “MTIL” means Morningside Technology Investments Limited, and any of
its successors or assignees. 
 “New Securities” has the meaning ascribed to it in Section 4A.3.

 “Notice” has the meaning ascribed to it in Section 8.2(a). 

  
 5 

 Execution Version 

 
 “Original Series B Issue Date” means the
date on which the first Series B Preferred Shares was issued, i.e., August 19, 2008. 
 “Participation Rights
Holder” has the meaning ascribed to it in Section 4A.1. 
 “Person” or
“person” shall be construed as broadly as possible and shall include an individual, a partnership, a limited liability company, a company, an association, a trust, a joint venture or unincorporated organization and any government
organization or authority. 
 “PFIC” has the meaning ascribed to it in Section 2.4(a). 

“PRC” means the People’s Republic of China, excluding, for the purpose of this Agreement, Hong Kong, Macau Special
Administrative Region and Taiwan. 
 “Preferred Directors” has the meaning ascribed to it in
Section 6.1(a). 
 “Preferred Participation Notice” has the meaning ascribed to it in
Section 4B.3. 
 “Preferred Participation Rights Holder” has the meaning ascribed to it in
Section 4B.1. 
 “Preferred Right of Participation” has the meaning ascribed to it in
Section 4B.1. 
 “Preferred Right Participants” has the meaning ascribed to it in
Section 4B.3(b). 
 “Preferred Shares” means the Series A Preferred Shares, the Series B Preferred
Shares and the Series C Preferred Shares, collectively. 
 “pro rata share” has the meaning ascribed to it in
Section 4A.2. 
 “QEF Election” has the meaning ascribed to it in Section 2.4(a).

 “Qualified IPO” has the meaning ascribed to it in the Memorandum and Articles of the Company, as amended
from time to time. 
 “Qualified Trade Sale” has the meaning ascribed to it in Section 6.4;

 “register”, “registered”, and “registration” have the meanings ascribed to
them in Section 3.2(a). 
 “Registrable Securities then outstanding” has the meaning ascribed to it
in Section 3.2(c). 
 “Registrable Securities” has the meaning ascribed to it in
Section 3.2(b). 
 “Request Notice” has the meaning ascribed to it in Section 3.3(a).

 “Restricted Shareholder” has the meaning ascribed to it in Section 7.7. 

“Right of First Refusal and Co-Sale Agreement” shall mean the right of first refusal and co-sale agreement entered into
by and among the Company, the Investors and certain other parties thereto dated as of the date of this Agreement, as amended from time to time. 
 “Right of Participation” has the meaning ascribed to it in Section 4A.1. 
 “Right Participants” has the meaning ascribed to it in Section 4A.4(b). 

  
 6 

 Execution Version 

 
 “Rule 144” means Rule 144 promulgated under
the Securities Act, as amended from time to time. 
 “SEC” means the U.S. Securities and Exchange Commission,
as constituted from time to time. 
 “Second Participation Notice” has the meaning ascribed to it in
Section 4A.4(b). 
 “Second Participation Period” has the meaning ascribed to it in
Section 4A.4(b). 
 “Second Preferred Participation Notice” has the meaning ascribed to it in
Section 4B.3(b). 
 “Second Preferred Participation Period” has the meaning ascribed to it in
Section 4B.3(b). 
 “Securities Act” means the U.S. Securities Act of 1933 and the rules and
regulations promulgated thereunder, as amended from time to time. 
 “Selling Shareholder” has the meaning
ascribed to it in Section 6.4(b). 
 “Series A Director” has the meaning ascribed to it in the
Memorandum and Articles, as amended from time to time. 
 “Series A Holders” means the holders of the then
outstanding Series A Preferred Shares and the Conversion Shares issued upon conversion thereof, collectively. 
 “Series
A Investor” and “Series A Investors” have the meanings ascribed to them in the Preamble to this Agreement. 
 “Series A Preferred Shares” means the series A preferred shares of par value of US$0.00001 each of the Company. 
 “Series B Director” has the meaning ascribed to it in the Memorandum and Articles, as amended from time to time. 
 “Series B Holders” means the holders of the then outstanding Series B Preferred Shares and the Conversion Shares issued upon conversion thereof, collectively. 

“Series B Investor” and “Series B Investors” have the meanings ascribed to them in the Preamble to this
Agreement. 
 “Series B Preferred Shares” means the series B preferred shares of par value of US$0.00001 each
of the Company. 
 “Series C Director” has the meaning ascribed to it in the Memorandum and Articles, as
amended from time to time. 
 “Series C Holders” means, collectively, the holders of the then outstanding
Series C-1 Preferred Shares and the Series C-2 Preferred Shares, and the Conversion Shares issued upon conversion thereof. 

“Series C Investor” and “Series C Investors” have the meanings ascribed to them in the Preamble to this
Agreement. 

  
 7 

 Execution Version 

 
 “Series C Preferred Shares” means the series
C-1 preferred shares of par value of US$0.00001 each and series C-2 preferred shares of par value of US$0.00001 each of the Company. 
 “Share Option Plan” has the meaning ascribed to it in Section 7.11(a). 
 “Shareholder” means each of the Key Holders, the Investors and any of their successors or assignees. 
 “Steamboat” means Steamboat Ventures Asia, L.P., and any of its successors or assignees. 
 “Tiger Director” has the meaning ascribed to it in Section 6.1. 
 “Tiger Shares” mean the Common Shares held by Tiger. 

“Tiger” means Tiger Global Six YY Holdings, and any of its Affiliates, successors or assignees. 

“Transaction Agreements” means this Agreement, the Share Exchange Agreement, the Right of First Refusal and Co-Sale
Agreement and the Memorandum and Articles, and any other agreements, instruments or documents entered into in connection with the Share Exchange, together with the exhibits and schedules attached thereto. 

“U.S. GAAP” means the “United States Generally Accepted Accounting Principles”. 

“Violation” has the meaning ascribed to it in Section 3.8(a). 

“Warrant” has the meaning ascribed to it in the Recitals to this Agreement. 

“WFOE” and “WFOEs” have the meanings ascribed to them in the Preamble to this Agreement. 

“Zhuhai Duowan” has the meaning ascribed to it in the Preamble to this Agreement. 

“Zhuhai WFOE” has the meaning ascribed to it in the Preamble to this Agreement. 

 

	2.	INFORMATION AND INSPECTION RIGHTS. 

 2.1
Delivery of Financial Statements. The Company covenants and agrees that, commencing on the date of this Agreement, and for so long as an Investor continues to hold three percent (3%) or more of the shares in the stock capital of the
Company, it will deliver the following to such Investor with respect to the Company: 
 (a) Within ninety (90) days after
the end of each fiscal year of the Company, (i) a consolidated income statement for the Company for such fiscal year; (ii) a statement of cash flows for the Company for such fiscal year; (iii) a consolidated balance sheet for the
Company as of the end of the fiscal year, audited and certified by an international recognized accounting firm approved by the Board of Directors (with the affirmative consent of a majority of the Investor Directors); and (iv) a management
report including a comparison of the financial results of such fiscal year with the corresponding annual budget, all prepared in English and in accordance with HK GAAP or U.S. GAAP; 

(b) Within twenty-one (21) days of the end of each month, (i) a consolidated unaudited income statement for such calendar
month; (ii) a statement of cash flows for such calendar month; (iii) a consolidated balance sheet for the Company as of the end of such calendar month; and (iv) a management report including a comparison of the actual results of such
period with the projection in the annual budget, all prepared in English and in accordance with the HK GAAP or U.S. GAAP (except for year-end adjustments and except for the absence of notes); 

  
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 (c) No later than thirty (30) days prior to the end of
each fiscal year, a proposed budget and business plan for the next fiscal year to be submitted to the Board of Directors for approval (collectively, the “Budget”), prepared on a monthly basis including, revenues, expenses, cash
position, balance sheets and sources and applications of funds statements (including any anticipated or planned capital expenditure or borrowings) for such months and, as soon as prepared, any other budgets or revised budgets prepared by the
Company; 
 (d) Copies of all other documents or other information sent to any Person in such Person’s capacity as a
shareholder of the Company; and 
 (e) Copies of all other documents or other information as the Investors or any assignee of an
Investor may reasonably request. 
 2.2 Inspection Rights. For so long as an Investor continues to hold three percent (3%) or more
of the shares in the stock capital of the Company, the Company shall, subject to such Investor complying with the confidentiality requirements, permit such Investor, at its own expense, by itself or through its authorized agent, to visit and
inspect, during normal business hours following reasonable notice by such Investor to the Company and only in a manner so as not to interfere with the normal business operations of the Group Companies, any of the properties of the Group Companies,
and examine the books of account and records of the Group Companies, and discuss the affairs, finances and accounts of the Group Companies with the directors, officers, management employees, accountants, legal counsel and investment bankers of such
companies, all at such reasonable times as may be requested in writing by such Investor; provided, that with respect to any of the preceding obligations of the Company with respect to a Group Company that is not controlled by the Company
through the ownership of voting securities, the Company shall be required only to use its commercially reasonable best efforts to fulfil such obligations; provided, further, that such Investor may be excluded from access to any
material, records or other information (a) if the applicable Group Company is restricted from making such disclosure pursuant to a bona fide agreement with a third party; (b) if such disclosure will jeopardize the attorney-client
privilege, except to the extent such Investor agrees in writing to keep all such information confidential upon terms acceptable to the Company on advice of counsel; or (c) if the Company reasonably considers such information to be a trade
secret or similar confidential information. 
 2.3 Information Rights (Post-IPO). The Company covenants and agrees that, for a period of
three (3) years following the closing of a Qualified IPO, unless otherwise instructed by such Investor, the Company shall promptly deliver to such Investor copies of the Company’s quarterly, interim and annual reports to shareholders and
all other filings required to be made with the Commission or governmental agencies inside or outside the United States after such documents are filed with the appropriate securities exchange or regulatory authority. 

2.4 U.S. Tax Matters. 

(a) The Company shall (a) determine, with respect to such taxable year whether the Company (or any of its Affiliates) is a passive
foreign investment company (“PFIC”) as described in Section 1297 of the United States Internal Revenue Code of 1986, as amended (the “Code”) (including whether any exception to PFIC status may apply) or is or
may be classified as a partnership or branch for U.S. federal income tax purposes, and (b) provide such information reasonably available to the Company as any U.S. Investor may reasonably request to permit such U.S. Investor to elect to treat
the Company and/or any such entity (including a subsidiary of the Company) as a “qualified electing fund” (within the meaning of Section 1295 of the Code) (a “QEF Election”) for U.S. federal income tax purposes. The
Company shall also, obtain and provide any and all other information reasonably deemed necessary by the U.S. Investor to comply with the provisions of this Section 2.4. The Company shall appoint an internationally reputable accounting
firm acceptable to the Investors to prepare and submit its U.S. tax filings. The Company shall use its best efforts to avoid becoming a PFIC as defined in the Code. 

  
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 (b) If a determination is made by the Company that the
Company is a PFIC for a particular taxable year, then for such year and for each year thereafter, the Company shall also provide each known U.S. Investor within sixty (60) days with a completed “PFIC Annual Information Statement” as
required by Treasury Regulation Section 1.1295-1(g) and any other information reasonably required by a U.S. Investor to comply with any reporting or other requirements in connection with the QEF Election. 

(c) The Company shall promptly provide the U.S. Investors with written notice if it (or any of its Subsidiaries) becomes aware that it is
a controlled foreign corporation as described in Section 957 of the Code (“CFC”). The Company shall furnish on a timely basis all information requested by such Investor to satisfy its U.S. federal income tax return filing
requirements, if any, arising from its investment in the Company and relating to the Company or any Group Company’s classification as a CFC. 
 (d) The Company, will comply and will cause its Subsidiaries to comply with all record-keeping, reporting, and other requests reasonably necessary for the Company and its Subsidiaries to allow any U.S.
Investor to comply with any applicable U.S. federal income tax laws. The Company, will also provide any known U.S. Investor with any information reasonably requested to allow such U.S. Investor to comply with any applicable U.S. federal income tax
laws (including but not limited to information relating to the transfer of any equity interests of the Company (or any Subsidiary) and the issuance or redemption by the Company (or any Subsidiary) of any equity interests). 

(e) The Company shall, cooperate in determining whether it would be desirable, reasonable and appropriate for the Company and/or any
Subsidiary to elect to be classified as a partnership or branch for U.S. federal income tax purposes and, if so, to take all reasonable steps to cause any such elections to be made, including by filing or by causing to be filed, Internal Revenue
Service Form 8832 (or any successor form), and the Company shall not permit such election, once made, to be terminated or revoked without the written consent of the U.S. Investors; provided that the Company shall notify all U.S. Investors
prior to the making of any such election. 
 (f) The Company shall, and shall cause each Group Company to, timely and accurately
file tax returns in each jurisdiction in which such returns are required to be filed. 
 (g) All out-of-pocket expenses incurred
by the Company or any Subsidiary, resulting from the taking any actions pursuant to Sections 2.4 (a)-(f) above shall be borne by the Company. 
 2.5 Termination of Rights. The foregoing information and inspection rights in Section 2.1 and 2.2 shall terminate immediately prior to the earlier of (i) the Company’s
Qualified IPO; or (b) a Liquidation Event. 
  

	3.	REGISTRATION RIGHTS. 

 3.1
Applicability of Rights. The Holders (as defined in Section 3.2(d) below) shall be entitled to the following rights with respect to any potential public offering of Common Shares in the United States, and to any analogous
or equivalent rights with respect to any other offering of Common Shares in any other jurisdiction pursuant to which the Company undertakes to publicly offer or list such securities for trading on a recognized securities exchange. 

  
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 3.2 Definitions. For purposes of this Section 3: 

(a) Registration. The terms “register”, “registered”, and “registration”
refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the declaration or ordering of effectiveness of such registration statement. 

(b) Registrable Securities. The term “Registrable Securities” means: (i) any Common Share of the Company
issued or to be issued upon conversion of Preferred Shares; (ii) any Common Share of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution
with respect to, or in exchange for or in replacement of, any of the foregoing; (iii) any other Common Share owned or hereafter acquired by the Investors, including, without limitation, any Common Shares issued in respect of the Common Shares
described in (i)-(iii) of this Section 3.2(b) upon any share split, share dividend, recapitalization or a similar event; and (iv) any depositary receipts issued by an institutional depositary upon deposit of any of the
foregoing. Notwithstanding the foregoing, “Registrable Securities” shall not include any Registrable Securities sold by a person in a transaction in which rights under this Section 3 are not assigned in accordance with this
Agreement or any Registrable Securities sold in a public offering, whether sold pursuant to Rule 144, or in a registered offering, or otherwise. 
 (c) Registrable Securities Then Outstanding. The number of shares of “Registrable Securities then outstanding” shall mean the number of Common Shares of the Company that are
Registrable Securities and are then issued and outstanding or would be outstanding assuming full conversion of all Preferred Shares which are convertible into Common Shares. 
 (d) Holder. For purposes of this Section 3, the term “Holder” means any person who holds Registrable Securities of record, whether such Registrable Securities were
acquired directly from the Company or from another Holder in a permitted transfer, to whom rights under this Section 3 have been duly assigned in accordance with this Agreement; provided, however, that for purposes of this
Agreement, a record holder of Preferred Shares convertible into such Registrable Securities shall be deemed to be the Holder of such Registrable Securities; and provided, further, that (i) the Company shall in no event be
obligated to register Preferred Shares and that (ii) until just prior to the declaration of effectiveness of the registration statement for the offering to which a given registration relates, Holders of Registrable Securities will not be
required to convert their Preferred Shares into Common Shares in order to exercise the registration rights granted hereunder. 

(e) Form F-3 and Form S-3. The terms “Form F-3” and “Form S-3” mean such respective forms under
the Securities Act as is in effect on the date hereof or any successor or comparable registration forms under the Securities Act subsequently adopted by the SEC, which permits inclusion or incorporation of substantial information by reference to
other documents filed by the Company with the SEC. 
 3.3 Demand Registration. 

(a) Request by Holders. If the Company shall at any time following the date that is the earlier of (i) three (3) years
following the Original Series B Issue Date, and (ii) six (6) months following initial underwritten public offering of its Common Shares (other than pursuant to a registration statement related either to the sale of securities to employees
of the Company pursuant to a share option, share purchase or similar plan or an SEC Rule 145 transaction), receive a written request from the Holders of at least twenty-five percent (25%) of the Registrable Securities then outstanding that the
Company file a registration statement under the Securities Act covering the registration of at least twenty percent (20%) of the Registrable Securities then outstanding pursuant to this Section 3.3 (or any lesser percentage if the
anticipated gross receipts from the offering are to exceed US$10,000,000) then the Company shall, within ten (10) Business Days of the receipt of such written request, give written notice of such request (“Request Notice”) to
all Holders, and use its reasonable best efforts to effect, as soon as practicable but in any event later than one hundred eighty (180) days after the Request Notice, the registration under the Securities Act of all Registrable Securities that
Holders request to be registered and included in such registration by written notice given by such Holders to the Company within twenty (20) days after their receipt of the Request Notice, subject only to the limitations of this
Section 3.3. The Company shall not be obligated to effect any registration pursuant to this Section 3.3 if the Company has, within the six (6) month period preceding such request, already effected a registration pursuant
to this Section 3.3 in which all of the Registrable Securities proposed to be sold by the initiating Holders were registered and sold pursuant to the registration statement governing such registration or in which such Holders had an
opportunity to fully participate pursuant to the provisions of Section 3.3, other than a registration from which all or any portion of the Registrable Securities the Holders requested to be included in such registration were excluded or
not sold. 

  
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 (b) Underwriting. If the Holders initiating the
registration request under this Section 3.3 (“Initiating Holders”) intend to distribute the Registrable Securities covered by their request by means of an underwriting, then they shall so advise the Company as a part of
their request made pursuant to this Section 3.3 and the Company shall include such information in the Request Notice referred to in Section 3.3(a). In the event of an underwritten offering, the right of any Holder to include
its Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting (unless otherwise mutually agreed by a
majority in interest of the initiating Holders and such Holder) to the extent provided herein. All Holders proposing to distribute their securities through such underwriting shall enter into an underwriting agreement in customary form with the
managing underwriter or underwriters selected for such underwriting by the Holders of a majority of the Registrable Securities being registered and reasonably acceptable to the Company. Notwithstanding any other provision of this
Section 3.3, if the underwriter(s) advise(s) the Company in writing that marketing factors require a limitation of the number of securities to be underwritten, then the Company shall so advise all Holders of Registrable Securities which
would otherwise be registered and underwritten pursuant hereto, and the number of Registrable Securities that may be included in the underwriting shall be reduced as required by the underwriter(s) and allocated among the Holders of Registrable
Securities on a pro rata basis according to the number of Registrable Securities then outstanding held by each Holder requesting registration (including the initiating Holders); provided, however, that the number of shares of Registrable
Securities to be included in such underwriting and registration shall not be reduced unless all other securities are first entirely excluded from the underwriting and registration including, without limitation, all shares that are not Registrable
Securities and are held by any other person, including, without limitation, any person who is an employee, officer or director of the Company (or any Group Company or any Affiliate of the Company or any Group Company). If any Holder disapproves of
the terms of any such underwriting, such Holder may elect to withdraw therefrom by written notice to the Company and the underwriter(s), delivered at least ten (10) Business Days prior to the effective date of the registration statement. Any
Registrable Securities excluded or withdrawn from such underwriting shall be excluded and withdrawn from the registration. For any Holder that is a partnership, the Holder and the partners and retired partners of such Holder, or the estates and
family members of any such partners and retired partners and any trusts for the benefit of any of the foregoing persons, and for any Holder that is a corporation, the Holder and all corporations that are affiliates of such Holder, shall be deemed to
be a single “Holder,” and any pro rata reduction with respect to such “Holder” shall be based upon the aggregate amount of Registrable Securities owned by all entities and individuals included in such “Holder,” as
defined in this sentence. 
 (c) Maximum Number of Demand Registrations. The Company shall have no obligation to effect
more than three (3) registrations pursuant to this Section 3.3. 

  
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 (d) Deferral. Notwithstanding the foregoing, if the
Company shall furnish to Holders requesting the filing of a registration statement pursuant to this Section 3.3, a certificate signed by the President or Chief Executive Officer of the Company stating that in the good faith judgment of
the Board, it would be materially detrimental to the Company and its shareholders for such registration statement to be filed, then the Company shall have the right to defer such filing for a period of not more than ninety (90) days after
receipt of the request of the Initiating Holders; provided, however, that the Company may not utilize this right more than once in any twelve (12) month period; provided further that during such ninety (90) day period,
the Company shall not file any registration statement pertaining to the securities of the Company for the account of itself or any other shareholder. 
 (e) Expenses. The Company shall pay all expenses (excluding only underwriters’ discounts and commissions relating to the Registrable Securities sold by the Holders) incurred in connection with
any registration pursuant to this Section 3.3, including without limitation all U.S. federal, “blue sky” and all foreign registration, filing and qualification fees, printer’s and accounting fees, and reasonable fees and
expenses (including disbursements) of one (1) outside counsel for the Holders selected by them with the approval of the Company, which approval shall not be unreasonably withheld. Each Holder participating in a registration pursuant to this
Section 3.3 shall bear such Holder’s proportionate share (based on the total number of shares sold in such registration other than for the account of the Company) of all discounts, and commissions or other amounts payable to
underwriter(s) or brokers, in connection with such offering by the Holders. Notwithstanding the foregoing, the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to this Section 3.3 if the
registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered, unless the Holders of a majority of the Registrable Securities then outstanding agree that such registration
constitutes the use by the Holders of one (1) demand registration pursuant to this Section 3.3 (in which case such registration shall also constitute the use by all Holders of Registrable Securities of one (l) such demand
registration); provided, however, that if at the time of such withdrawal, the Holders have learned of a material adverse change in the condition, business, or prospects of the Company not known to the Holders at the time of their
request for such registration and have withdrawn their request for registration with reasonable promptness after learning of such material adverse change, then the Holders shall not be required to pay any of such expenses and such registration shall
not constitute the use of a demand registration pursuant to this Section 3.3. 
 3.4 Piggyback Registrations. The Company
shall notify all Holders of Registrable Securities in writing at least thirty (30) days prior to filing any registration statement under the Securities Act for purposes of effecting a public offering of securities of the Company (including, but
not limited to, registration statements relating to secondary offerings of securities of the Company, but excluding registration statements relating to any registration under Section 3.3 or Section 3.5 of this
Agreement or to any employee benefit plan or a corporate reorganization) and will afford each such Holder an opportunity to include in such registration statement all or any part of the Registrable Securities then held by such Holder. Each Holder
desiring to include in any such registration statement all or any part of the Registrable Securities held by such Holder shall within twenty (20) days after receipt of the above-described notice from the Company, so notify the Company in
writing, and in such notice shall inform the Company of the number of Registrable Securities such Holder wishes to include in such registration statement. If a Holder decides not to include all of its Registrable Securities in any registration
statement thereafter filed by the Company, such Holder shall nevertheless continue to have the right to include any Registrable Securities in any subsequent registration statement or registration statements as may be filed by the Company with
respect to offerings of its securities, all upon the terms and conditions set forth herein. 

  
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 (a) Underwriting. If a registration statement under
which the Company gives notice under this Section 3.4 is for an underwritten offering, then the Company shall so advise the Holders of Registrable Securities. In such event, the right of any such Holder’s Registrable Securities to
be included in a registration pursuant to this Section 3.4 shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent
provided herein. All Holders proposing to distribute their Registrable Securities through such underwriting shall enter into an underwriting agreement in customary form with the managing underwriter or underwriters selected by the Company for such
underwriting. Notwithstanding any other provision of this Agreement, if the managing underwriter(s) determine(s) in good faith that marketing factors require a limitation of the number of shares to be underwritten, then the managing underwriter(s)
may exclude shares from the registration and the underwriting, and the number of shares that may be included in the registration and the underwriting shall be allocated, first to the Company, and second, to each of the Holders
requesting inclusion of their Registrable Securities in such registration statement on a pro rata basis based on the total number of Registrable Securities then held by each such Holder; provided, however, that the right of the
underwriter(s) to exclude shares (including Registrable Securities) from the registration and underwriting as described above shall be restricted so that (i) the number of Registrable Securities included in any such registration is not reduced
below thirty percent (30%) of the aggregate number of Registrable Securities for which inclusion has been requested, even if this will cause the Company to reduce the number of shares it wishes to offer, unless such offering is the initial
public offering of the Company’s securities, in which case, all of the requested Registrable Securities may be excluded if the managing underwriter(s) make the determination described above and no other Holder’s securities are included;
and (ii) all shares that are not Registrable Securities and are held by any other person, including, without limitation, any person who is an employee, officer or director of the Company (or any Group Company or any Affiliate of the Company or
any Group Company) shall first be excluded from such registration and underwriting before any Registrable Securities are so excluded. If any Holder disapproves of the terms of any such underwriting, such Holder may elect to withdraw therefrom by
written notice to the Company and the underwriter(s), delivered at least ten (10) Business Days prior to the effective date of the registration statement. Any Registrable Securities excluded or withdrawn from such underwriting shall be excluded
and withdrawn from the registration. For any Holder that is a partnership, the Holder and the partners and retired partners of such Holder, or the estates and family members of any such partners and retired partners and any trusts for the benefit of
any of the foregoing persons, and for any Holder that is a corporation, the Holder and all corporations that are affiliates of such Holder, shall be deemed to be a single “Holder”, and any pro rata reduction with respect to such
“Holder” shall be based upon the aggregate amount of Registrable Securities carrying registration rights owned by all entities and individuals included in such “Holder”, as defined in this sentence. 

(b) Expenses. The Company shall pay all expenses (excluding only underwriters’ and brokers’ discounts and commissions
relating to shares sold by the Holders) incurred in connection with a registration pursuant to this Section 3.4, including, without limitation all U.S. federal, “blue sky” and all foreign registration, filing and qualification
fees, printers’ and accounting fees, and reasonable fees and expenses (including disbursements) of one (1) outside counsel for the Holders selected by them with the approval of the Company, which approval shall not be unreasonably
withheld. 
 (c) Not Demand Registration. Registration pursuant to this Section 3.4 shall not be deemed to be
a demand registration as described in Section 3.3 above. Except as otherwise provided herein, there shall be no limit on the number of times the Holders may request registration of Registrable Securities under this
Section 3.4. 
 3.5 Form F-3 and Form S-3 Registration. After its initial public offering, the Company shall use its
reasonable best efforts to qualify for registration on Form F-3, Form S-3 or any comparable or successor form as early as possible and use reasonable best efforts to maintain such qualification thereafter. If the Company is qualified to use Form F-3
or Form S-3, any Holder or Holders shall have a right to request at any time from time to time (such request shall be in writing) that the Company effect a registration on either Form F-3 or Form S-3 and any related qualification or compliance with
respect to all or a part of the Registrable Securities owned by such Holder or Holders, and upon receipt of each such request, the Company will: 
 (a) Notice. Promptly give written notice of the proposed registration and the Holder’s or Holders’ request therefor, and any related qualification or compliance, to all other Holders of
Registrable Securities; and 

  
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 (b) Registration. As soon as practicable, effect such
registration and all such qualifications and compliances as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of such Holders or Holders’ Registrable Securities as are specified in such
request, together with all or such portion of the Registrable Securities of any other Holder or Holders joining in such request as are specified in a written request given within twenty (20) days after the Company provides the notice
contemplated by Section 3.5(a); provided, however, that the Company shall not be obligated to effect any such registration, qualification or compliance pursuant to this Section 3.5: 

(i) if Form F-3 or Form S-3 becomes unavailable for such offering by the Holders: 

(ii) if the Holders, together with the holders of any other securities of the Company entitled to inclusion in such registration, propose
to sell Registrable Securities and such other securities (if any) at an aggregate price to the public of less than US$1,000,000; 
 (iii) if the Company has, within the six (6) month period preceding the date of such request, already effected a registration under the Securities Act other than a registration from which the
Registrable Securities of Holders have been excluded (with respect to all or any portion of the Registrable Securities the Holders requested be included in such registration) pursuant to the provisions of Section 3.4(a); or 

(iv) in any particular jurisdiction in which the Company would be required to qualify to do business or to execute a general consent to
service of process in effecting such registration, qualification or compliance. 
 (c) Expenses. The Company shall pay
all expenses (excluding only underwriters’ or brokers’ discounts and commissions relating to shares sold by the Holders) incurred in connection with each registration requested pursuant to this Section 3.5, including without
limitation all U.S. federal, “blue sky” and all foreign registration, filing and qualification fees, printers’ and accounting fees, and reasonable fees and expenses (including disbursements) of one (1) outside counsel for the
Holders selected by them with the approval of the Company, which approval shall not be unreasonably withheld. 
 (d) Maximum
Frequency. There shall be no limit on the number of times the Holders may request registration of Registrable Securities under this Section 3.5. 
 (e) Deferral. Notwithstanding the foregoing, if the Company shall furnish to Holders requesting the filing of a registration statement pursuant to this Section 3.5, a certificate signed
by the President or Chief Executive Officer of the Company stating that in the good faith judgment of the Board, including a majority of the Investor Directors, if any, it would be materially detrimental to the Company and its shareholders for such
Form F-3 or Form S-3 registration statement to be filed, then the Company shall have the right to defer such filing for a period of not more than ninety (90) days after receipt of the request of the initiating Holders; provided,
however, that the Company may not utilize this right more than once in any twelve (12) month period; provided further that during such ninety (90) days period, the Company shall not file any registration statement pertaining
to the securities of the Company for the account of itself or any other shareholder. 
 (f) Not Demand Registration. Form
F-3 and Form S-3 registrations shall not be deemed to be demand registrations as described in Section 3.3 above. 

  
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 (g) Underwriting. If the requested registration under
this Section 3 is for an underwritten offering, the provisions of Section 3.3(b) shall apply. 
 3.6 Obligations of the
Company. Whenever required to effect the registration of any Registrable Securities under this Agreement the Company shall, as expeditiously as reasonably possible: 
 (a) Registration Statement. Prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its reasonable best efforts to cause such registration
statement to become effective, and, upon the request of the Holders of a majority of the Registrable Securities registered hereunder, keep any such registration statement effective for a period of up to one hundred twenty (120) days or until
the Holder or Holders have completed the distribution described in the registration statement relating thereto, whichever occurs first. The Company shall not be required to file, cause to become effective or maintain the effectiveness of any
registration statement that contemplates a distribution of securities on a delayed or continuous basis pursuant to Rule 415 under the Securities Act. 
 (b) Amendments and Supplements. Prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with such registration statement
as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement for up to one hundred twenty (120) days, or until the distribution described in
such registration statement is completed, if earlier. 
 (c) Prospectuses. Furnish to the Holders such number of copies
of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of the Registrable Securities owned by
them that are included in such registration. 
 (d) Blue Sky. Use its reasonable best efforts to register and qualify the
securities covered by such registration statement under such other securities or “blue sky” laws of such jurisdictions as shall be reasonably requested by the Holders, provided that the Company shall not be required in connection
therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions, unless the Company is already subject to service in such jurisdiction and except as may be inquired
by the Securities Act. 
 (e) Underwriting. In the event of any underwritten public offering, enter into and perform its
obligations under an underwriting agreement in usual and customary form, with the managing underwriter(s) of such offering. Each Holder participating in such underwriting shall also enter into and perform its obligations under such an agreement.

 (f) Notification. Notify each Holder of Registrable Securities covered by such registration statement at any time when
a prospectus relating thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a
material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing, such obligation to continue for one hundred twenty
(120) days. 
 (g) Opinion and Comfort Letter. Furnish, at the request of any Holder requesting registration of
Registrable Securities, on the date that such Registrable Securities are delivered to the underwriter(s) for sale, if such securities are being sold through underwriters, or, if such securities are not being sold through underwriters, on the date
that the registration statement with respect to such securities becomes effective, (i) an opinion, dated as of such date, of the counsel representing the Company for the purposes of such registration, in form and substance as is customarily
given to underwriters in an underwritten public offering, addressed to the underwriters, if any, and to the Holders requesting registration of Registrable Securities and (ii) a “comfort” letter dated as of such date, from the
independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering, addressed to the underwriters, if any, and to the
Holders requesting registration of Registrable Securities. 

  
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 Execution Version 

 
 (h) Registration. Cause all such Registrable
Securities registered pursuant to this Agreement hereunder to be listed on a securities exchange or trading system and each security exchange and trading system on which similar securities issued by the Company are then listed. 

3.7 Furnish Information. It shall be a condition precedent to the obligations of the Company to take any action pursuant to
Sections 3.3, 3.4 or 3.5 that the selling Holders shall furnish to the Company such information regarding themselves, the Registrable Securities held by them and the intended method of disposition of such securities as
shall be reasonably necessary or advisable to timely effect the Registration or other qualification of their Registrable Securities. The Company shall have no obligation with respect to any registration requested pursuant to Section 3.3
or Section 3.5 of this Agreement if, as a result of the application of the preceding sentence, the number of shares or the anticipated aggregate offering price of the Registrable Securities to be included in the registration does not
equal or exceed the number of shares or the anticipated aggregate offering price required to originally trigger the Company’s obligation to initiate such registration as specified in Section 3.3(a) or Section 3.5(b)(ii),
whichever is applicable. 
 3.8 Indemnification. In the event any Registrable Securities are included in a registration statement under
Sections 3.3, 3.4 or 3.5: 
 (a) By the Company. To the extent permitted by laws, the Company will
indemnify and hold harmless each Holder, its partners, officers, directors, legal counsel, any underwriter (as determined in the Securities Act) for such Holder and each person, if any, who controls such Holder or underwriter within the meaning of
the Securities Act or the Exchange Act against any losses, claims, damages, or liabilities (joint or several) to which they may become subject under the Securities Act, the Exchange Act or other applicable laws, insofar as such losses, claims,
damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively a “Violation”): 

(i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any
preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto; 
 (ii) the omission or
alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading, or 
 (iii) any violation or alleged violation of the Securities Act, the Exchange Act, any federal or state securities laws or any rule or regulation promulgated under the Securities Act, the Exchange Act or
other applicable securities laws in connection with the offering covered by such registration statement; 
 and the Company will reimburse each
such Holder, its partner, officer, director, legal counsel, underwriter or controlling person for any legal or other expenses reasonably incurred by them, as incurred, in connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that the indemnity agreement contained in this Section 3.8(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is
effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such case for any such loss, claim, damage, liability or action to the extent that it arises out of or is based
upon a Violation which occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by such Holder, underwriter or controlling person of such Holder. 

  
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 Execution Version 

 
 (b) By Selling Holders. To the extent permitted by
laws, each selling Holder will indemnify and hold harmless the Company, each of its directors, each of its officers who have signed the registration statement, each person, if any, who controls the Company within the meaning of the Securities Act,
any underwriter and any other Holder selling securities under such registration statement or any of such other Holder’s partners, directors, officers, legal counsel or any person who controls such Holder within the meaning of the Securities Act
or the Exchange Act, against any losses, claims, damages or liabilities (joint or several) to which the Company or any such director, officer, legal counsel, controlling person, underwriter or other such Holder, partner or director, officer or
controlling person of such other Holder may become subject under the Securities Act, the Exchange Act or other applicable laws, insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any
Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Holder expressly for use in connection with such registration; and each such
Holder will reimburse any legal or other expenses reasonably incurred by the Company or any such director, officer, controlling person, underwriter or other Holder, partner, officer, director or controlling person of such other Holder, as incurred,
in connection with investigating or defending any such loss, claim, damage, liability or action: provided, however, that the indemnity agreement contained in this Section 3.8(b) shall not apply to amounts paid in settlement
of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; and provided further that the total amounts payable in indemnity by a
Holder under this Section 3.8(b) in respect of any Violation shall not exceed the net proceeds received by such Holder in the registered offering out of which such Violation arises, except in the case of willful fraud by such Holder.

 (c) Notice. Promptly after receipt by an indemnified party under this Section 3.8 of notice of the
commencement of any action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 3.8, deliver to the indemnifying party a written
notice of the commencement thereof (a “Claim Notice”) and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly
noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together with all other indemnified parties which may be represented without conflict by one
counsel) shall have the right to retain its own counsel, with the reasonable fees and expenses to be paid by the indemnifying party, (i) during the period from the delivery of a Claim Notice until retention of counsel by the indemnifying party;
and (ii) if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential conflict of interests between such indemnified party and any other party represented by
such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall relieve such indemnifying party of liability to the indemnified party under this
Section 3.8 to the extent the indemnifying party is prejudiced as a result thereof, but the omission so to deliver written notice to the indemnified party will not relieve it of any liability that it may have to any indemnified party
otherwise than under this Section 3.8. 
 (d) Defect Eliminated in Final Prospectus. The foregoing indemnity
agreements of the Company and Holders are subject to the condition that, insofar as they relate to any Violation made in a preliminary prospectus but eliminated or remedied in the amended prospectus on file with the SEC at the time the registration
statement in question becomes effective or the amended prospectus filed with the SEC pursuant to SEC Rule 424(b) (the “Final Prospectus”), such indemnity agreement shall not inure to the benefit of any person if a copy of the Final
Prospectus was timely furnished to the indemnified party and was not furnished to the person asserting the loss, liability, claim or damage at or prior to the time such action is required by the Securities Act. 

  
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 Execution Version 

 
 (e) Contribution. In order to provide for just and
equitable contribution to joint liability under the Securities Act in any case in which either (i) any Holder exercising rights under this Agreement, or any controlling person of any such Holder, makes a claim for indemnification pursuant to
this Section 3.8 but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification
may not be enforced in such case notwithstanding the fact that this Section 3.8 provides for indemnification in such case, or (ii) contribution under the Securities Act may be required on the part of any such selling Holder or any
such controlling person in circumstances for which indemnification is provided under this Section 3.8; then, and in each such case, the Company and such Holder will contribute to the aggregate losses, claims, damages or liabilities to
which they may be subject (after contribution from others) in such proportion so that such Holder is responsible for the portion represented by the percentage that the public offering price of its Registrable Securities offered by and sold under the
registration statement bears to the public offering price of all securities offered by and sold under such registration statement, and the Company and other selling Holders are responsible for the remaining portion; provided, however,
that, in any such case: (A) no such Holder will be required to contribute any amount in excess of the public offering price of all such Registrable Securities offered and sold by such Holder pursuant to such registration statement, except in
the case of willful fraud; and (B) no person or entity guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any person or entity who was not guilty
of such fraudulent misrepresentation. 
 (f) Survival. The obligations of the Company and the Holders under this section
shall survive until the fifth (5th) anniversary of the completion of any offering of Registrable Securities in a registration statement, regardless of the expiration of any statutes of limitation or extensions of such statutes. 

3.9 Rule 144 Reporting. With a view to making available to the Holders the benefits of certain rules and regulations of the SEC which may permit
the sale of the Registrable Securities to the public without registration, the Company agrees to use its reasonable best efforts to: 
 (a) Make and keep public information available, as those terms are understood and defined in Rule 144 or any similar or analogous rule promulgated under the Securities Act, at all times after ninety
(90) days after the effective date of the first registration filed by the Company for an offering of its securities to the general public, so long as the Company remains subject to the periodic reporting requirements under Sections 13 or
15(d) of the Exchange Act; 
 (b) File with the SEC, in a timely manner, all reports and other documents required of the
Company under the Securities Act or the Exchange Act, at all times after the effective date of the first registration under the Securities Act filed by the Company; 
 (c) So long as a Holder owns any Registrable Securities, furnish to such Holder forthwith upon request, (i) a written statement by the Company as to its compliance with the reporting requirements of
said Rule 144 of the Securities Act, and of the Exchange Act (at any time after it has become subject to such reporting requirements); (ii) a copy of the most recent annual, or quarterly report of the Company; and (iii) such other reports
and documents as a Holder may reasonably request availing itself of any rule or regulation of the SEC allowing it to sell any such securities without registration. 
 3.10 Termination of the Company’s Obligations. Notwithstanding the foregoing, the Company shall have no obligations pursuant to Sections 3.3, 3.4 or 3.5 with respect to
any Registrable Securities proposed to be sold by a Holder in a registered public offering (i) five (5) years after the consummation of a Qualified IPO; (ii), if, in the opinion of counsel to the Company satisfactory to the Holder, all
such Registrable Securities proposed to be sold by a Holder may then be sold under Rule 144 or another similar exemption under the Securities Act in one (1) transaction without exceeding the volume limitations thereunder; or (iii) upon a
Liquidation Event. 

  
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 Execution Version 

 
 3.11 Limitations on Subsequent Registration Rights. Without the
prior written consent of the Majority Series A Holders, the Majority Series B Holders and the Majority Series C Holders (each voting as a separate class), the Company covenants and agrees that it shall not grant, or cause or permit to be created,
for the benefit of any person or entity any registration rights that would allow such person or entity (a) to include such securities in any registration filed under Section 3.3 hereof, unless under the terms of such agreement, such
Holder or prospective Holder may include such securities in any such registration only to the extent that the inclusion of his securities will not reduce the amount of the Registrable Securities of the Holders which is included or (b) to make a
demand registration which could result in such registration statement being declared effective prior to the earlier of either of the dates set forth in Section 3.3(a) or within one hundred twenty (120) days of the effective date of
any registration statement effected pursuant to Section 3.3. 
 3.12 “Market Stand-Off” Agreement. Each Holder
hereby agrees that, if and to the extent requested by the lead underwriter of securities of the Company in connection with a registration relating to a specific proposed public offering (other than a registration on Form S-8 or a related or
successor form relating solely to an employee benefit plan or a registration on Form S-4 or a related or successor form relating solely to a transaction under SEC Rule 145), such Holder will, subject to the following conditions, enter into a lock-up
or standoff agreement in customary form (subject to the following conditions) under which such Holder agrees not to sell or otherwise transfer or dispose of any Registrable Securities or other shares of the Company owned by such Holder as of the
date of such registration seven (7) days prior to, and for up to one hundred eighty (180) days following the effective date of the related registration statement. The obligations of each Holder under this Section 3.12 are
subject to the following conditions: (i) the lockup or standoff agreement applies only to the first registration statement of the Company which covers securities to be sold on its behalf to the public in an underwritten offering; (ii) all
directors, officers, and holders of one percent (1%) or more of any class of securities of the Company are bound by substantially identical restrictions; (iii) the lockup or standoff agreement provides that if any securities of the Company
are to be excluded or released in whole or part from such restrictions, the underwriter shall so notify each Holder and each Holder shall be excluded or released, in proportionate amounts to the extent of the exclusion or release, prior to any other
holder of Company’s securities, including director, officer, or holder of one percent (1%) or more of any class of securities of the Company subject to such restrictions; and (iv) the lockup or standoff agreement by its terms permits
transfers of Registrable Securities by any Holder to any Affiliate of such Holder during the restricted period, provided that such Affiliate executes a lock-up or standoff agreement substantively identical to that signed by the transferring Holder.
The Company may impose a stop-transfer instruction with respect to Registrable Securities subject to any such lockup or standoff agreement but shall remove such instruction immediately upon expiration of the underlying restrictions. 

 

	4A.	GENERAL RIGHT OF PARTICIPATION. 

 4A.1
General. 
 All holders of the Preferred Shares and Tiger Shares (including Common Shares issued upon Conversion of the
Preferred Shares) and the Affiliates of such holders to which rights under this Section 4A have been duly assigned in accordance with Section 5.1 (each a “Participation Rights Holder”) shall have a right of first
offer to purchase such Participation Rights Holder’s pro rata share (as defined below), of all (or any part) of any New Securities (as defined in Section 4A.3) that the Company may from time to time issue after the date of this
Agreement (the “Right of Participation”). 

  
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 Execution Version 

 
 4A.2 Pro Rata Share. A Participation Rights Holder’s “pro
rata share” for purposes of the Right of Participation is the ratio of (i) the number of Common Share Equivalents then held by such Participation Rights Holder, to (ii) the sum of the total number of Common Shares (assuming full
conversion and exercise of all convertible or exercisable securities, including such Participation Rights Holder’s Common Share Equivalents) then outstanding immediately prior to the issuance of New Securities giving rise to the Right of
Participation. 
 4A.3 New Securities. “New Securities” shall mean any shares of the Company designated as
“preferred shares,” Common Shares” or other voting shares of the Company, whether now authorized or not, and rights, options or warrants to purchase such preferred shares, Common Shares or other voting shares, and securities of any
type whatsoever that are, or may become, convertible or exchangeable into such preferred shares, Common Shares or other voting shares (including shares issued or issuable by way of debt instrument or conversion of convertible loans), provided,
however, that the term “New Securities” shall not include: 
 (a) Common Shares issued or issuable upon conversion or
exercise of the Preferred Shares; 
 (b) up to 118,166,946 Common Shares (as adjusted for share splits, subdivision,
consolidation, recapitalizations, reclassifications, and similar transactions prior to such date) issued or issuable to officers, employees, consultants or directors of the Company either in connection with the provision of services to the Company
or on exercise of any options to purchase Common Shares granted under the Share Option Plan), provided that the Share Option Plan is approved by the majority of the Board of Directors of the Company, including the affirmative consent of a
majority of the Investor Directors; 
 (c) Common Shares issued or issuable as a result of any share split or share
consolidation or the like which does not affect the total number of shares in the Company; provided that the prices at which the Common Shares shall be deliverable upon conversion of the Series A Preferred Shares, Series B Preferred Shares
and Series C Preferred Shares in effect prior to the issuance of such equity securities shall have already been adjusted as a result of and in accordance with Clause 5.3A.1.5(g) of the Articles; 

(d) Common Shares issued or issuable as a dividend or distribution generally to members of the Company in proportion to their holdings of
Common Shares (with all issued and outstanding Preferred Shares counted as issued and outstanding Common Shares on a fully-diluted and as-converted basis); 
 (e) Common Shares issued in consideration of an acquisition or a merger approved by the affirmative vote or consent of (i) the Majority Preferred Holders, and (ii) a majority of the Investor
Directors; 
 (f) Common Shares issued in a Qualified IPO; 

(g) Securities issued to strategic partners of the Company or of its Subsidiaries approved by the affirmative vote or consent of
(i) the Majority Preferred Holders, and (ii) a majority of the Investor Directors; and 
 (h) Securities issued
pursuant to the consent in writing of all the Shareholders. 
 4A.4 Procedures. 

(a) First Participation Notice. In the event that the Company proposes to undertake an issuance of New Securities (in a single
transaction or a series of related transactions), it shall give to each Participation Rights Holder written notice of its intention to issue New Securities (the “First Participation Notice”), describing the amount and the type of
New Securities and the price and the terms upon which the Company proposes to issue such New Securities. Each of the Participation Rights Holders shall have fifteen (15) days from the date of receipt of any such First Participation Notice to
agree in writing to purchase up to all of such Participation Rights Holder’s pro rata share of such New Securities for the price and upon the terms and conditions specified in the First Participation Notice by giving written notice to the
Company and stating therein the quantity of New Securities to be purchased (not to exceed such Participation Rights Holder’s pro rata share). If any Participation Rights Holder fails to so agree in writing within such fifteen (15) day
period to purchase such Participation Rights Holder’s full pro rata share of an offering of New Securities, then such Participation Rights Holder shall forfeit the right hereunder to purchase that part of its pro rata share of such New
Securities that it did not so agree to purchase. 

  
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 Execution Version 

 
 (b) Second Participation Notice; Oversubscription. If
any New Securities which were available for purchase by a Participation Rights Holder under Section 4A.4(a) are not subscribed for in accordance with that subsection, the Company shall promptly give notice (the “Second
Participation Notice”) to each Participating Rights Holders who exercised its Right of Participation with respect to its full pro rata share (the “Right Participants”) in accordance with Section 4A.4(a) above.
The Right Participants shall have ten (10) days from the date of receipt of the Second Participation Notice (the “Second Participation Period”) to notify the Company of its desire to purchase more than its pro rata share of the
New Securities, stating the number of the additional New Securities it proposes to buy. Such notice may be made by telephone if confirmed in writing within two (2) Business Days thereafter. If as a result thereof, such oversubscription exceeds
the total number of the remaining New Securities which remain available for purchase, the oversubscribing Right Participants will be cut back by the Company with respect to their oversubscriptions to that number of remaining New Securities equal to
the product obtained by multiplying (i) the number of the remaining New Securities available for subscription by (ii) a fraction the numerator of which is the number of Common Share Equivalents held by each oversubscribing Right
Participant notified and the denominator of which is the total number of Common Share Equivalents held by all the oversubscribing Right Participants. Each oversubscribing Right Participant shall be obligated to buy such number of additional New
Securities as determined by the Company pursuant to this Section 4A.4(b) and the Company shall so notify the Right Participants within fifteen (15) Business Days of the date of the Second Participation Notice. 

4A.5 Failure to Exercise. Upon the expiration of the Second Participation Period, or in the event no Participation Rights Holder exercises the
Right of Participation, after fifteen (15) days following the delivery of the First Participation Notice, the Company shall have sixty (60) days thereafter to offer the remaining New Securities described in the First Participation Notice
(with respect to which the Participation Rights Holders’ rights of first offer hereunder were not exercised) at the same or higher price and upon non-price terms not more favorable than specified in the First Participation Notice in accordance
with Section 4B below. 
 4A.6 Termination. The Right of Participation shall terminate immediately prior to the consummation
of a Qualified IPO. 
  

	4B.	PREFERRED RIGHT OF PARTICIPATION. 

 4B.1
General. Subject to the rights set forth in Section 4A above, the holders of the Preferred Shares, Tiger Shares and the Affiliates of the holders of the Preferred Shares and/or the Tiger Shares to which rights under this
Section 4B have been duly assigned in accordance with Section 5.1 (each holder of the Preferred Shares, Tiger Shares and each such assignee being hereinafter referred to as a “Preferred Participation Rights
Holder”) shall have a subsequent right of first offer to purchase such Preferred Participation Rights Holder’s pro rata share (as defined below), of all (or any part) of any New Securities that the Company may from time to time issue
after the date of this Agreement that have not already been purchased by the Participation Rights Holders in accordance with Section 4A above (the “Preferred Right of Participation”). 

  
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 Execution Version 

 
 4B.2 Pro Rata Share. A Preferred Participation Rights Holder’s
“pro rata share” for purposes of the Preferred Right of Participation is the ratio of (i) the number of Common Share Equivalents then held by such Preferred Participation Rights Holder, to (ii) the sum of the total number
of Common Shares (assuming full conversion and exercise of all convertible or exercisable securities, including such Preferred Participation Rights Holder’s Common Share Equivalents) then outstanding immediately prior to the issuance of New
Securities giving rise to the Preferred Right of Participation. 
 4B.3 Procedures. 

(a) Participation Notice. In the event that the Participation Rights Holders do not exercise, or partially exercise, their rights
set forth in Section 4A above, the Company shall then give to each Preferred Participation Rights Holder written notice of its intention to issue New Securities (the “Preferred Participation Notice”), describing the
amount and the type of New Securities that are available for such Preferred Participation Rights Holder to purchase and the price and the terms upon which the Company proposes to issue such New Securities. Each Preferred Participation Rights Holder
shall have fifteen (15) days from the date of receipt of any such Preferred Participation Notice to agree in writing to purchase up to all of such Preferred Participation Rights Holder’s pro rata share of such New Securities for the price
and upon the terms and conditions specified in the Preferred Participation Notice by giving written notice to the Company and stating therein the quantity of New Securities to be purchased (not to exceed such Preferred Participation Rights
Holder’s pro rata share). If any Preferred Participation Rights Holder fails to so agree in writing within such fifteen (15) day period to purchase such Preferred Participation Rights Holder’s full pro rata share of an offering of New
Securities, then such Preferred Participation Rights Holder shall forfeit the right hereunder to purchase that part of its pro rata share of such New Securities that it did not so agree to purchase. 

(b) Second Preferred Participation Notice; Oversubscription. If any New Securities which were available for purchase by a
Preferred Participation Rights Holder under Section 4B.3(a) are not subscribed for in accordance with that subsection, the Company shall promptly give notice (the “Second Preferred Participation Notice”) to each
Preferred Participation Rights Holders who exercised its Preferred Right of Participation with respect to its full pro rata share (the “Preferred Right Participants”) in accordance with Section 4B.3(a) above. The
Preferred Right Participants shall have ten (10) days from the date of receipt of the Second Preferred Participation Notice (the “Second Preferred Participation Period”) to notify the Company of its desire to purchase more than
its pro rata share of the New Securities, stating the number of the additional New Securities it proposes to buy. Such notice may be made by telephone if confirmed in writing within two (2) Business Days thereafter. If as a result thereof, such
oversubscription exceeds the total number of the remaining New Securities which remain available for purchase, the oversubscribing Preferred Right Participants will be cut back by the Company with respect to their oversubscriptions to that number of
remaining New Securities equal to the product obtained by multiplying (i) the number of the remaining New Securities available for subscription by (ii) a fraction the numerator of which is the number of Common Share Equivalents held by
each oversubscribing Preferred Right Participant notified and the denominator of which is the total number of Common Share Equivalents held by all the oversubscribing Preferred Right Participants. Each oversubscribing Preferred Right Participant
shall be obligated to buy such number of additional New Securities as determined by the Company pursuant to this Section 4B.3(b) and the Company shall so notify the Preferred Right Participants within fifteen (15) Business Days of
the date of the Second Preferred Participation Notice. 

  
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 Execution Version 

 
 4B.4 Failure to Exercise. Upon the expiration of the Second Preferred
Participation Period, or in the event no Preferred Participation Rights Holder exercises the Preferred Right of Participation, after fifteen (15) days following the delivery of the Preferred Participation Notice, the Company shall have sixty
(60) days thereafter to sell the New Securities described in the Preferred Participation Notice (with respect to which the Preferred Participation Rights Holders’ rights of first offer hereunder were not exercised) at the same or higher
price and upon non-price terms not more favorable to the purchasers thereof than specified in the Preferred Participation Notice. In the event that the Company has not issued and sold such New Securities within such sixty (60) day period, then
the Company shall not thereafter issue or sell any New Securities without again first offering such New Securities first to the Participation Rights Holders pursuant to Section 4A above and second to the Preferred Participation Rights
Holders pursuant to this Section 4B. 
 4B.5. Most Favoured Investor. In the event that the Company grants subsequent
purchasers of the Company’s securities rights that are superior to the rights granted in Section 4A and Section 4B, the Company shall grant each Investor the same rights. 

 

	5.	ASSIGNMENT. Notwithstanding anything herein to the contrary: 

 5.1 Right of Assignment. Each of the Investor shall be entitled to transfer all or any of the Preferred Shares or Common Shares held by it, provided that such transferee shall agree in
writing to be bound to the same extent by the terms of this Agreement as if it were a holder of Preferred Shares or Common Shares at the time this Agreement was executed, provided, further, that such transferee shall not be a
Competitor. 
 5.2 Information Rights. Without prejudice to the generality of Section 5.1, the rights of each Investor under
Sections 2.1 and 2.2 are transferable prior to a Qualified IPO to any person who holds or is acquiring Investment Securities in a permitted transfer; provided, however, that the Company is given written notice at the time
of such assignment stating the name and address of the assignee and identifying the securities of the Company as to which the rights in question are being assigned; provided further that no such assignment may be made to a Competitor; and
provided further that any such assignee shall receive such assigned rights subject to all the terms and conditions of this Agreement, including without limitation the provisions of this Section 5. 

5.3 Registration Rights. Without prejudice to the generality of Section 5.1, the rights to cause the Company to register Registrable
Securities pursuant to Section 3 may be assigned (but only with all related obligations) by a Holder to a transferee or assignee (i) of at least 10,000 shares of such securities (subject to adjustment for share splits, share
dividends, reclassification or the like) (or if the transferring Holder owns less than 10,000 shares of such securities, then all Registrable Securities held by the transferring Holder), or (ii) that is an Affiliate of the Holder;
provided, however, that the Company is given written notice at the time of such assignment stating the name and address of the assignee and identifying the securities of the Company as to which the rights in question are being
assigned; and provided further that any such assignee shall receive such assigned rights subject to all the terms and conditions of this Agreement, including without limitation the provisions of this Section 5. 

5.4 Rights of Participation. The Rights of Participation of the Investors under Section 4A and 4B hereof are fully assignable
to any person who holds or is acquiring Investment Securities in a permitted transfer; provided, however that the Company is given written notice at the time of such assignment stating the name and address of the assignee and
identifying the securities of the Company as to which the rights in question are being assigned; and provided further that any such assignee shall receive such assigned rights subject to all the terms and conditions of this Agreement,
including without limitation the provisions of this Section 5. 

  
 24 

	6.	BOARD REPRESENTATION RIGHTS; CERTAIN INVESTOR RIGHTS. 

 6.1 Board of Directors. 
 (a) The authorised size of the Board shall be a
maximum of nine (9) directors who shall be appointed in accordance with the following provisions: 
 (i) for so long as
Morningside Group continues to hold 45,138,261 or more of the shares of the Company (as adjusted for any share splits, share dividends, combinations, recapitalizations or similar transactions), it shall be entitled to appoint one (1) Director,
initially to be LIU Qin (“Series A Director”); 
 (ii) for so long as Steamboat continues to hold 45,138,261 or
more of the shares of the Company (as adjusted for any share splits, share dividends, combinations, recapitalizations or similar transactions), it shall be entitled to appoint one (1) Director, initially to be Alex Hartigan (“Series B
Director”); 
 (iii) for so long as GGV continues to hold 45,138,261 or more of the shares of the Company (as adjusted
for any share splits, share dividends, combinations, recapitalizations or similar transactions), it shall be entitled to appoint one (1) Director, initially to be Jenny LEE (“Series C Director”, together with the Series A Director
and the Series B Director, the “Preferred Directors” and individually, a “Preferred Director”); 
 (iv) for so long as the Key Holders continue to hold 90,276,522 or more of the shares of the Company (as adjusted for any share splits, share dividends, combinations, recapitalizations or similar
transactions), they shall be entitled to collectively appoint four (4) Directors (one of whom will also be the chief executive officer of the Company (“CEO Director”)), initially to be LI Xueling 

, who will be the initial CEO Director, LEI Jun 

 and two vacancies to be appointed by the Key Holders following the date hereof; 
 (v) the Key
Holders (except CAO Jin 

 and ZHAO Bin 

) shall be entitled to appoint one more director (the “Management Director”) with the approval of the majority of the Investor Directors (which approval shall not be unreasonably withheld), who shall
initially be Zhao Bin 

; and 
 (vi) for so long as Tiger continues to hold 45,138,261 or more of the shares of the
Company (as adjusted for any share splits, share dividends, combinations, recapitalizations or similar transactions), it shall be entitled to appoint one director to the Company, who is currently YASIN Nazar Abdenabi (“Tiger
Director”) as of the date of this Agreement. 
 (b) In the event of a deadlock with respect to any action submitted to
the Board for a vote or written consent, the chairman of the Board (the “Chairman”) shall cast the deciding vote, provided that the Chairman does not have an interest in the matter in question, provided further that
upon appointment of directors according to Section (a) above, the Chairman shall no longer be entitled to the casting vote. 
 (c) The Chairman, who shall initially be LEI Jun 

, shall be appointed among the directors of the Company by the CEO Director and a majority of the Investor Directors, including the affirmative vote or consent of at least one (1) Key Holder Director. 

6.2 Board; Quorum; Meetings, Board of Directors of Group Companies., The Company’s Memorandum and Articles shall provide for a quorum (which
shall exist at the time of the voting as well as the attendance of the Board meeting) of the Board of six (6) directors, including a majority of the Investor Directors. 
 (a) The Board of Directors will determine the frequency of future meetings, which in no case will be less than one (1) scheduled board meeting per year. Upon the request of three (3) directors
of the Company, an interim board meeting shall be convened accordingly. 

  
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 Execution Version 

 
 (b) The Company shall reimburse all the Investor Directors
for reasonable expenses that incurred in conformity with the Company’s travel and expense policies associated with attending meetings of the Board of Directors or subcommittees thereof. 

(c) Each of the Preferred Directors shall have a right to serve as a member of the Company’s compensation committee, audit
committee, and any other subcommittees of the Board of Directors. 
 (d) The CEO Director shall have the power to nominate any
senior management personnel (other than the chief financial officer), provided that the nomination made by the CEO Director shall be subject to the approval of the Board of Directors in accordance with the procedures as provided under the
Memorandum and Articles. 
 (e) Each Group Company shall have the same board composition with the Company as determined in
accordance with Section 6.1, and the Company, Duowan BVI, the Cayman Subsidiary, the Hong Kong Subsidiary, the WFOEs, the Domestic Companies and the Key Holders shall procure that such nominee(s) are appointed to the relevant board of
directors. 
 6.3 Removal of Board Members. Each Shareholder also agrees to vote all of his, her or its shares from time to time and at
all times in whatever manner as shall be necessary to ensure that (i) no director elected pursuant to Section 6.1 of this Agreement may be removed from office unless (A) such removal is directed or approved by the affirmative
vote of the holders of fifty percent (50%) or more of the shares entitled under Section 6.1 to designate that director; or (B) the person(s) or entity(ies) originally entitled to designate or approve such director or occupy
such Board seat pursuant to Section 6.1 is no longer so entitled to designate or approve such director or occupy such Board seat; and (ii) any vacancies created by the resignation, removal or death of a director elected pursuant to
Section 6.1 shall be filled pursuant to the provisions of Section 6.1. All Shareholders agree to execute any written consents required to effectuate the obligations of this Agreement, and the Company agrees at the request of
any Shareholder entitled to designate directors to call a special meeting of shareholders for the purpose of electing directors. 
 6.4
Drag-Along Right. In the event that (i) the holders of more than fifty percent (50%) of the then outstanding Series A Preferred Shares, Series B Preferred Shares and Series C Preferred Shares voting or consenting together as a
single class on a fully-diluted and as-converted basis, approve in writing a transaction or series of transactions with respect to the Company that qualifies as a Deemed Liquidation Event, and (ii) the minimum aggregate purchase price offered
by the potential acquirer in such transaction or series of transactions exceeds US$1,500,000,000 (a “Qualified Trade Sale”); provided that the Shareholders holding more than 50% Common Shares in the Company have approved the terms
and conditions of such Qualified Trade Sale and have committed to participate in such Qualified Trade Sale, then each of the remaining Investors and the holders of Common Shares hereby agrees with respect to all shares that he, she or it holds and
any other Company securities over which he, she or it otherwise exercises dispositive power: 
 (a) in the event such Qualified
Trade Sale requires the approval of shareholders, (a) if the matter is to be brought to a vote at a shareholder meeting, after receiving proper notice of any meeting of shareholders of the Company to vote on the approval of the Qualified Trade
Sale, to be present, in person or by proxy, as a holder of shares, at all such meetings and be counted for the purposes of determining the presence of a quorum at such meetings; and (b) to vote (in person, by proxy or by action by written
consent, as applicable) all shares in favor of such Qualified Trade Sale and in opposition of any and all other proposals that could reasonably be expected to delay or impair the ability of the Company to consummate such Qualified Trade Sale;

  
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 Execution Version 

 
 (b) in the event that the Qualified Trade Sale is to be
effected by the sale of shares held by another Shareholder (the “Selling Shareholder”) without the need for shareholder approval, to sell all shares of the Company beneficially held by such Shareholder (or in the event that the
Selling Shareholder is selling fewer than all of its shares held in the Company, shares in the same proportion as the Selling Shareholder is selling) to the person to whom the Selling Shareholder propose to sell its shares, for the same per-share
consideration (on a fully-diluted and as-converted basis) and on the same terms and conditions as the Selling Shareholder, except that the Shareholder will not be required to sell its shares unless the liability for indemnification, if any, of the
Shareholder in such Sale of the Company is several, not joint, and is pro rata in accordance with the Shareholder’s relative share ownership of the Company, and will not exceed the consideration payable to the Shareholder, if any, in such
transaction (except in the case of potential liability for fraud or willful misconduct by the Shareholder); 
 (c) to refrain
from exercising any dissenters’ rights or rights of appraisal under applicable laws at any time with respect to such Qualified Trade Sale; 
 (d) to execute and deliver all related documentation and take such other action in support of the Qualified Trade Sale as shall reasonably be requested by the Company; and 

(e) not to deposit, and to cause their Affiliates not to deposit, except as provided in this Agreement, any voting securities owned by
such party or Affiliate in a voting trust or subject any such voting securities to any arrangement or agreement with respect to the voting of such securities, unless specifically requested to do so by the acquirer in connection with a Qualified
Trade Sale. 
 6.5 Increase in Authorized Share Capital. Each Shareholder agrees to vote all of its shares from time to time and at all
times, in whatever manner shall be necessary to authorize an increase in the authorized share capital of the Company so that there will be sufficient Common Shares available for conversion of all of the then-outstanding Preferred Shares at any time
that an adjustment to the relevant conversion price with respect to the Preferred Shares is made under the Articles. 
 6.6 Specific
Enforcement. Each Shareholder acknowledges and agrees that each party hereto will be irreparably damaged in the event any of the provisions of this Section 6 are not performed by the Shareholder in accordance with their specific
terms or are otherwise breached. Accordingly, it is agreed that each of the Company and the Shareholders shall be entitled to an injunction in a court of competent jurisdiction to prevent breaches of the covenants, agreements and obligations in this
Agreement, and specific enforcement in any action instituted in any court of competent jurisdiction, in addition to any other remedy to which they may be entitled at laws or in equity. For purposes of the foregoing, each of the parties to this
Agreement hereby consents to personal jurisdiction in any such action brought in the state and federal courts located in Hong Kong. 
 6.7
Assignment and Termination. The rights of each Investor set forth in this Section 6 are fully assignable to any person who holds or is acquiring Preferred Shares or Tiger Shares in a permitted transfer; provided,
however that the Company is given written notice at the time of such assignment stating the name and address of the assignee and identifying the securities of the Company as to which the rights in question are being assigned; and provided
further that any such assignee shall receive such assigned rights subject to all the terms and conditions of this Agreement, including without limitation the provisions of this Section 6. The rights of each Investor in this
Section 6 shall terminate immediately prior to the consummation of the earlier of (a) a Qualified IPO; or (b) a Liquidation Event. 
  

	7.	COVENANTS. 

 7.1 Use of Proceeds.
Subject to Section 7.13 below, the Company shall use the proceeds from the sale of the Tiger Shares for general working capital and other general corporate purposes for the Group Companies in accordance with the directions of the
Company’s Board of Directors, as it shall be constituted in accordance with the terms hereunder. The proceeds shall in no event be applied or used to repay or settle any indebtedness owing by any Group Company to any of its shareholders,
directors, officers or any other persons related in whatever respect with any of the foregoing parties without the prior written consent of Tiger. 

  
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 Execution Version 

 
 7.2 Conduct the Business of the Group Companies. The Company
undertakes to the Investors that, unless otherwise provided by the Board of Directors of the Company (which such action must include the consent of the Investor Directors), the Company shall (i) cause any other Group Companies to enforce the
Plan of Restructuring (as defined in the Common Share Purchase Agreement) and the documents mentioned thereunder, (ii) not permit any other Group Companies to approve any material amendment, alteration, termination or waiver of any of the Plan
of Restructuring and the documents mentioned thereunder, and (iii) use commercially reasonable best efforts to, and cause the WFOEs and each other Group Company that is directly controlled by the Company or the WFOEs through ownership of voting
securities to use commercially reasonable best efforts to, cause each of the other Group Companies (including without limitation the Domestic Companies) to conduct the business of such Person in the ordinary course and in a prudent manner consistent
with past practice. 
 7.3 Compliance with Laws and Instruments. The Company undertakes to the Investors to cause the WFOEs and any other
Group Company that is controlled by the Company or the WFOEs through ownership of voting securities, and to use commercially reasonable best efforts to cause each of the other Group Companies, to comply with such Person’s memorandum of
association, articles of association, business license, or other constitutional or governance documents, each as may be amended from time to time, unless the Board of Directors of the Company directs otherwise (which such action must include the
consent of the Investor Directors). 
 7.4 Protective Provisions - Matters Requiring Approval of the Majority Series A Holders, the Majority
Series B Holders, the Majority Series C Holders and Tiger. For so long as (A) any Preferred Shares remain outstanding; or (B) any shares owned by Tiger or its Affiliates in the Company, in addition to any other vote or consent required
elsewhere in this Agreement, the Articles or by any applicable statute, each of the Company and the Group Companies hereby covenants and agrees with the Investors that it shall not, and the Key Holders shall procure that the Company and the Group
Companies do not directly or indirectly, without the approval of the affirmative vote of (i) the Majority Series A Holders, (ii) the Majority Series B Holders; (iii) the Majority Series C Holders; and (iv) Tiger (each voting or
consenting as a separate class), take any action (whether by amendment of the Memorandum or the Articles, through any merger, amalgamation, combination or similar transaction or otherwise, and whether in a single transaction or a series of related
transactions) that: 
 (i) alters or changes the rights, preferences or privileges of the Common Shares, the Series A Preferred
Shares, the Series B Preferred Shares and/or the Series C Preferred Shares; 
 (ii) redeems or repurchases any shares of the
Company (other than pursuant to equity incentive agreements with service providers giving any Group Company the right to repurchase shares upon the termination of service); 
 (iii) authorizes or issues any equity security with rights, preferences or privileges senior to or on a parity with the Common Shares, the Series A Preferred Shares, the Series B Preferred Shares and/or
the Series C Preferred Shares; 
 (iv) amends or waives any provision of the Memorandum and Articles in a manner that would
alter or change the rights, preferences or privileges of any Common Shares, Series A Preferred Shares, Series B Preferred Shares and/or Series C Preferred Shares; and 
 (v) takes any action which would result in any transaction involving both a Group Company and the shareholder or any of the employees, officers or directors of the Group Company or its subsidiaries or any
affiliate of such shareholder, employee, officer, or director in excess of US$200,000 in a single transaction or in a series of transactions on the same subject matter (except for transactions entered into from time to time in the ordinary course of
the business of the Company or its subsidiaries); 

  
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 Execution Version 

 
 provided, always that in no circumstance shall
Tiger’s consent or approval be required if and when any holder of the Preferred Shares exercises its redemption right and liquidation preference pursuant to the Memorandum and Articles, provided, further that Tiger’s right under this
Section 7.4 shall not prejudice in any way the exercise by the holders of the Preferred Shares of their drag-along rights under Section 6.4 herein and the Memorandum and Articles. 
 7.5 Protective Provisions - Matters Requiring the Approval of the Series A Holders, the Series B Holders and the Series C Holders. For so long as any Preferred Shares remain outstanding, in
addition to any other vote or consent required elsewhere in this Agreement, the Articles or by any applicable statute, each of the Company and the Group Companies hereby covenants and agrees with the Investors that it shall not, and the Key Holders
shall procure that the Company does not directly or indirectly, without the approval of the affirmative vote of the Majority Preferred Holders (voting together as a single class but not as separate classes), take any action (whether by amendment of
the Memorandum or the Articles, through any merger, amalgamation, combination or similar transaction or otherwise, and whether in a single transaction or a series of related transactions) that: 

(i) results in any merger, consolidation, or other corporate reorganization, or any transaction or series of transactions in which in
excess of fifty percent (50%) of any of the Group Companies’ voting power is transferred or in which all or substantially all of the assets of any Group Company are sold; 

(ii) increases or decreases the authorized size of the board of directors of any Group Company; 

(iii) results in the liquidation, dissolution or winding up of any Group Company or a Deemed Liquidation Event (as defined in the
Memorandum and Articles of the Company); 
 (iv) declares or allows the accrual of a dividend on any class or series of shares
of the Company or take any action to decide not to declare the distributable profits of the Company as dividend; 
 (v) extends
any loan or guarantees any Group Company for indebtedness in excess of US$1,000,000 in the aggregate to any third party; 
 (vi)
issues debt in excess of US$1,000,000; 
 (vii) purchases any shares, securities or equity interest in, or otherwise acquire the
business or assets of, any other company, body corporate, partnership or other business entity, involving an aggregate amount in excess of an aggregate amount of US$1,000,000; 
 (viii) authorizes any new issuance of any equity securities of any Group Company, excluding (a) any issuance of Common Shares upon conversion of the Preferred Shares; and (b) the issuance of
Common Shares (or options or warrants thereof) under the Share Option Plan approved by the Board of Directors, including the affirmative consents of a majority of the Investor Directors; and 

(ix) increases or decreases the authorized number of Common Shares or Preferred Shares. 

  
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 Execution Version 

 
 7.6 Matters Requiring the Approval of the Series A Director, the Series B
Director and the Series C Director. For so long as any Preferred Share remains outstanding, in addition to any other vote or consent required elsewhere in the Memorandum and Articles or by the Companies Law of the Cayman Islands (2010 Revision),
the Company shall not (and shall not permit any wholly-owned subsidiary of the Company or cause any other Group Company to), without first obtaining the written approval of the Board of Directors of the Company (by vote or written consent, as
provided by laws), which must include the approval of at least two (2) of the Preferred Directors (as defined herein) voting together to take any action that: 
 (i) acquires (by way of purchase or otherwise) any interest in any real property except a lease of office premises; 
 (ii) executes any lease of any property for an annual rental payment in excess of US$500,000; 
 (iii) establishes or acquires any subsidiary; 
 (iv) sells or disposes any Group
Company, or create any encumbrance over, any of its assets or undertakings with a book value in excess of US$500,000; 
 (v)
appoints, removes, dismisses or terminates the employment of any Group Company’s chief executive officer, chief financial officer, chief technology officer and chief operating officer of any Group Company, or determine the amount of such
persons’ remuneration, compensation and other benefits, including the grant of any share options or similar rights; provided that the Chief Financial Officer of the Company and all of his direct reports shall be appointed by the Board of
Directors in accordance with the nomination of a written consent from the Majority Preferred Holders (voting together as a single class but not as separate classes); 
 (vi) appoints and removes auditors of any Group Company or causes any material change in the accounting and financial policies of any Group Company; and 

(vii) incurs an expenditure or indebtedness (including bank borrowing) that has been projected in its annual budget of an amount
representing a deviation of ten percent (10%) or more from the Board-approved annual budget (either in one transaction or in a series of related transactions) or an expenditure or indebtedness of any amount representing a deviation of ten
percent (10%) or more from the Board-approved annual budget (either in one transaction or in a series of related transactions) that has not already been projected in its annual budget. 
 7.7 Lock-up. In addition to the restrictions set forth in the Right of First Refusal and Co-Sale Agreement, LI Xueling 

 (the “Restricted Shareholder”) shall not effect a transfer (i) prior to February 11, 2013; or if it occurs later (ii) within one hundred eighty (180) days following the consummation
of the Qualified IPO, unless such Transfer has been approved in writing by (i) the Majority Preferred Holders; and (ii) at least two (2) of the Preferred Directors. 
 7.8 Non-Compete. LI Xueling 

 undertakes to the Investors not to compete with the Company and the Group Companies or solicit the employees or customers of the Company or the Group Companies during his employment with the Company and/or the Group
Companies or office with the Company and/or the Group Companies and for a period of two (2) years following the termination of LI Xueling 

’s employment with the Company and/or the Group Companies or office with the Company and/or the Group Companies. 
 7.9 Non-Competition and Non-Disclosure Agreements. LI Xueling 

 undertakes to the Investors to cause the Company to enter into Non-Competition, Non-Disclosure and Invention Assignment Agreements, in form and substance reasonably acceptable to the Investors, with each past,
present and future Key Employees of the Company. The Company shall undertake to enforce its rights under Non-Competition, Non-Disclosure and Invention Assignment Agreements as requested by the Investors. 

  
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 Execution Version 

 
 7.10 Domestic Enterprise. Each of the Key Holders undertakes to the
Investors that each of the Key Holders shall irrevocably grant an exclusive option in favour of the Company and/or each WFOE to acquire the entire equity interest in the Domestic Companies when permitted by the PRC laws in such manner as requested
by the Investors. 
 7.11 Share Option Plan. 
 (a) The Company reserves a pool of not more than 118,166,946 Common Shares, to be granted to the officers, directors, employees and consultants of the Company. The Common Shares issued pursuant to the
employee share option plan (“Share Option Plan”) shall also be subject to vesting over four (4) years at twenty-five percent (25%) each year. Unless otherwise approved by the Board of Directors, including the affirmative
consent of a majority of the Investor Directors, all officers, directors, employees and consultants of the Company who shall purchase, or receive options to purchase, shares of the Company under the Share Option Plan shall be required to execute
share purchase or option agreements providing for (i) vesting of shares over not less than a four (4)-year period with the first twenty-five percent (25%) of such shares vesting following twelve (12) months of continued employment or
services, and the remaining shares vesting in equal instalments at the end of each consecutive six (6) monthly interval commencing immediately after the said initial twelve (12) month period over the following thirty-six (36) months;
and (ii) a one-hundred eighty (180) day lockup period in connection with the Company’s IPO. The Company shall retain a “right of first refusal” on employee transfers until the Company’s IPO and the right to repurchase
unvested shares at cost. The Company shall have a repurchase option on unvested shares at cost. 
 Notwithstanding any provision
to the contrary in this Agreement, the Company and the Board of Directors shall agree, except for the current 118,166,946 Common Shares reserved under Section 7.11(a) above, no additional Common Shares shall be reserved and granted to
the officers, directors, employees and consultants of the Company under the Share Option Plan or any other incentive plan of the Company. 
 (b) Subject to existing share purchase or options agreements entered into by the Company and such officers, directors, employees and consultants of the Company and unless otherwise approved by a majority
of the Board of Directors, including the affirmative consent of a majority of the Investor Directors, no option for Common Share issued pursuant to the Share Option Plan shall provide for acceleration of vesting. Notwithstanding the foregoing, with
the approval of the Board of Directors of the Company, including the affirmative consent of a majority of the Investor Directors, the Company may issues options or restricted stock that provides for the acceleration of vesting in accordance with a
standard double trigger arrangement (with the first trigger event to be a change of Control of the Company, and the second trigger event to be the involuntary termination of respective relationship of such officers, directors, employees and
consultants with the Company within six (6) months of the date of such change of Control of the Company, other than for cause. 
 (c) Any options or restricted stock grants issued under the Share Option Plan shall be issued at an exercise price as approved by the Board of Directors, including the affirmative vote of a majority of
the Investor Directors, and no additional options or restricted stock grants shall be issued before February 11, 2012, unless otherwise approved by the majority of the Board of Directors of the Company, including the affirmative consent of a
majority of the Investor Directors. 
 7.12 Insurance. Following receipt of a written requests from each of the Majority Series A
Holders, the Majority Series B Holders, the Majority Series C Holders or Tiger, the Company shall use its reasonable best efforts to obtain from financially sound and reputable insurers (i) Directors and Officers Liability insurance, and
(ii) term “key-person” insurance on LI Xueling 

 in each case to the extent such insurance is available on commercially reasonable terms and in an amount satisfactory to the Board of Directors, and will use reasonable best efforts to cause such insurance policies
to be maintained until such time as the Board of Directors determines that such insurance should be discontinued. The “key person” policy shall name the Company as loss payee and neither policy shall be cancelable by the Company without
prior approval of the Board of Directors (including at least one Preference Director). 

  
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 7.13 Termination of Covenants. The covenants set forth in this
Section 7 (other than Section 7.3) shall terminate and be of no further force or effect immediately prior to the consummation of (a) a Qualified IPO; or (b) a Deemed Liquidation Event, whichever event shall first
occur. 
  

	8.	GENERAL PROVISIONS. 

 8.1 Governing
Law. This Agreement shall be governed by and construed exclusively in accordance with the laws of Hong Kong, without regards to conflicts of law principles. 
 8.2 Dispute Resolution. 
 (a) Any dispute, controversy or claim arising out
of or relating to this Agreement, or the interpretation, breach, termination or validity hereof, shall first be subject to resolution through consultation of the parties to such dispute, controversy or claim. Such consultation shall begin
immediately after one party hereto has delivered to the other party hereto a written request for such consultation (the “Consultation Request”). If within thirty (30) days following the date on which the Consultation Request is
delivered the dispute cannot be resolved, the dispute shall be submitted to arbitration upon the request of either party with notice to the other (the “Notice”). 

(b) The arbitration shall be conducted in Hong Kong under the auspices of the Hong Kong International Arbitration Centre (the
“Centre”). There shall be three arbitrators. The complainant(s) and the respondent(s) to such dispute shall each select one arbitrator within thirty (30) days after giving or receiving the demand for arbitration. Such
arbitrators shall be freely selected, and the parties shall not be limited in their selection to any prescribed list. The Chairman of the HKIAC shall select the third arbitrator, who shall be qualified to practice Law in Hong Kong. If either party
to the arbitration does not appoint an arbitrator who has consented to participate within thirty (30) days after selection of the first arbitrator, the relevant appointment shall be made by the Chairman of the HKIAC. 

(c) The arbitration proceedings shall be conducted in English. The arbitration tribunal shall apply the Arbitration Rules of the Centre
in effect at the time of the Notice. However, if such rules are in conflict with the provisions of this Section 8.2, including the provisions concerning the appointment of arbitrators, the provisions of this Section 8.2 shall
prevail. 
 (d) Each party hereto shall cooperate with the other in making full disclosure of and providing complete access to
all information and documents requested by the other in connection with such arbitration proceedings, subject only to any confidentiality obligations binding on such party. 
 (e) The award of the arbitration tribunal shall be final and binding upon the disputing parties, and either party may apply to a court of competent jurisdiction for enforcement of such award. 

(f) Either party shall be entitled to seek preliminary injunctive relief, if possible, from any court of competent jurisdiction pending
the constitution of the arbitral tribunal. 
 8.3 Notices. Except as may be otherwise provided herein, all notices, requests, waivers and
other communications made pursuant to this Agreement shall be in writing and shall be conclusively deemed to have been duly given (i) when hand delivered to the other party; (ii) when sent by facsimile at the number set forth on the
signature page hereof upon successful transmission report being generated by the sender’s machine; (iii) three (3) Business Days after deposit with an international overnight delivery service, postage prepaid, addressed to the parties
as set forth on the signature page with next-business-day delivery guaranteed, provided that the sending party receives a confirmation of delivery from the delivery service provider; or (iv) when sent by electronic mail to the email
address set forth on the signature page hereof. 

  
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 Execution Version 

 
 Each person making a communication hereunder by facsimile or
electronic mail shall promptly confirm by telephone to the person to whom such communication was addressed each communication made by it by facsimile or electronic mail pursuant hereto but the absence of such confirmation shall not affect the
validity of any such communication. A party may change or supplement the addresses given above, or designate additional addresses, for purposes of this Section 8.3 by giving the other party written notice of the new address in the manner set
forth above. 
 8.4 Entire Agreement; Prior Agreements; Conflicts. This Agreement, together with all the exhibits and schedules hereto,
constitutes and contains the entire agreement and understanding of the parties with respect to the subject matter hereof and supersedes any and all prior negotiations, correspondence, agreements, understandings, duties or obligations between the
parties respecting the subject matter hereof. In the event of any conflicts with the Memorandum and Articles, the provisions of this Agreement shall prevail. 
 8.5 Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, then such provision(s) shall be excluded from this Agreement and the balance of this
Agreement shall be interpreted as if such provision(s) were so excluded and shall be enforceable in accordance with its terms. 
 8.6
Counterparts; Facsimile. This Agreement may be executed and delivered by facsimile signature and in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 8.7 Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered
in construing or interpreting this Agreement. 
 8.8 Language. This Agreement and all other Transaction Agreements are entered into in
English only. Any Chinese translation of the Transaction Agreements, if any, is for reference only and shall not be a legally binding document. Accordingly, the English version will prevail in the event of any inconsistency between the English and
any Chinese translations thereof. 
 8.9 Effective Date. This Agreement shall become automatically effective immediately following its
execution, from and as of the date of the execution. 
 8.10 Further Assurances. At any time or from time to time after the date hereof,
the parties agree to cooperate with each other, and at the request of any other party, to execute and deliver any further instruments or documents and to take all such further action as the other party may reasonably request in order to evidence or
effectuate the consummation of the transactions contemplated hereby and to otherwise carry out the intent of the parties hereunder. 
 8.11
Costs of Enforcement. If any party to this Agreement seeks to enforce its rights under this Agreement by legal proceedings, the non-prevailing party shall pay all costs and expenses incurred by the prevailing party, including, without
limitation, all reasonable attorneys’ fees. 
 8.12 Aggregation of Rights. All Common Shares, Series A Preferred Shares, Series B
Preferred Shares, Series C Preferred Shares and Common Share Equivalents held or acquired by any Series A Investor, Series B Investor or Series C Investor and its Affiliates respectively shall be aggregated for purposes of determining the
availability of any rights under this Agreement. 

  
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 Execution Version 

 
 8.13 Interpretation; Captions. This Agreement shall be construed
according to its fair language. The rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement. The captions to sections of this Agreement have been inserted
for identification and reference purposes only and shall not be used to construe or interpret this Agreement. 
 8.14 Third Parties.
Nothing in this Agreement, express or implied, is intended to confer upon any person, other than the parties hereto and their permitted successors and assignees, any rights or remedies under or by reason of this Agreement. 

8.15 Successors and Assignees. Subject to the provisions of Section 5.1 and Section 6.3, the provisions of this Agreement
shall inure to the benefit of, and shall be binding upon, the successors and permitted assignees of the parties hereto. Except as expressly stated otherwise, the rights of the Investors set forth in this Agreement are fully assignable to any person
who holds or is acquiring Preferred Shares or Tiger Shares through a permitted transfer. 
 8.16 Adjustments for Share Splits, Etc.
Wherever in this Agreement there is a reference to a specific number or percentage of the Preferred Shares and/or Common Shares, then, upon the occurrence of any share subdivision, share split, combination, reclassification, merger, consolidation,
reorganization, recapitalization or share dividend of any Preferred Shares or Common Shares, as applicable, the specific number of shares so referenced in this Agreement shall automatically be proportionally adjusted to reflect the affect on the
outstanding shares of such class or series of share by such event. 
 8.17 Amendment of Rights. This Agreement may be amended or modified
and the observance of any term hereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument executed by (i) the Company, (ii) the Key Holders holding a majority
of the Common Shares held by all Key Holders; (iii) Tiger; (iv) the Majority Series C Holders, (v) the Majority Series B Holders and (vi) the Majority Series A Holders. Notwithstanding the foregoing, in the case of an amendment
of any provision of Section 3 hereof, any such amendment may be made only with the written consents of (i) the Company and (ii) a majority in interest of the Investors. Any amendment effected in accordance with this
Section 8.17 shall be binding upon each party to this Agreement, and their respective successors in interest. 
 8.18 Legend.

 (a) Each certificate representing Shares issued by the Company shall be endorsed with the following legends: 

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH TRANSFER MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933. 
 THE SALE, PLEDGE, HYPOTHECATION OR TRANSFER OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO, AND IN CERTAIN CASES PROHIBITED BY, THE TERMS AND CONDITIONS OF A CERTAIN INVESTORS’ RIGHT AGREEMENT AND A CERTAIN RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT, BOTH BY AND AMONG THE
SHAREHOLDER, THE COMPANY AND CERTAIN OTHER HOLDERS OF SHARES OF THE COMPANY. COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY. 

  
 34 

 Execution Version 

 
 (b) Each Key Holder agrees that the Company may instruct its
transfer agent to impose transfer restrictions on the shares represented by certificates bearing the legend referred to in Section 8.18(a) above to enforce the provisions of this Agreement, and the Company agrees to promptly do so. The
legend shall be removed upon termination of this Agreement at the request of the holder. 
 8.19 Investment in Competing Companies.
Nothing in this Agreement and in any other agreements, contracts and documents shall prohibit or restrict the Investors from (i) receiving information relating to, meeting with employees of, or discussing with any companies in competition with
the Company, and (ii) investing in any companies in competition with the Company in any way. 
 8.20 Termination of Existing Investors
Rights Agreement; Waiver of Pre-emptive Rights. 
 (a) In consideration of the mutual covenants and promises contained
herein, each of the parties to the Existing Investors Rights Agreement hereby confirms and covenants with each of the other parties thereto that, with effect immediately upon the effectiveness of this Agreement: (a) the Existing Investors
Rights Agreement shall be absolutely terminated; (b) none of the parties to the Existing Investors Rights Agreement have or shall have any rights, claims or interests whatsoever against any of the other parties to the Existing Investors Rights
Agreement under or in respect of the Existing Investors Rights Agreement; and (c) to the extent that any of the parties to the Existing Investors Rights Agreement have or may have any rights, claims or interests whatsoever against any of the
other parties thereto under or in respect of the Existing Investors Rights Agreement, such rights, claims or interests are hereby absolutely, irrevocably and unconditionally waived, discharged and released by the parties concerned. 

(b) Each of the shareholders of the Company hereby waives any right of first offer, pre-emptive right or other rights to purchase any
portion of the Common Shares issued by the Company pursuant to the Share Exchange Agreement that such shareholder may have under the Existing Investors Rights Agreement, the Memorandum and Articles of the Company, or otherwise. 

[The remainder of this page has been intentionally left blank] 

  
 35 

 Execution Version 

 
 IN WITNESS WHEREOF, the parties hereto have executed
this Investors’ Rights Agreement as of the day and year herein above first written. 
  

			
	COMPANY:
	
	 For and on behalf of
 YY INC.

		
	By:	 	 

 
			
	Name: LI Xueling 

	Capacity:	 	CEO
	
	 Address: c/o 4/F, No. 44/46, Jianzhong Road,
 Tianhe District, Guangzhou, Guangdong, PRC.

	
	Attention: LI Xueling
	
	E-mail: lixueling@chinaduo.com

  
 Signatory Page

 Execution Version 

 
 IN WITNESS WHEREOF, the parties hereto have executed
this Investors’ Rights Agreement as of the day and year herein above first written. 
  

			
	DUOWAN BVI:
	
	 For and on behalf of
 DUOWAN ENTERTAINMENT CORP.

	
	 For and on behalf of
 Duowan Entertainment Corp.

		
	By:	 	 

		 	Authorized Signature(s)

 
			
	Name: LI Xueling 

	Capacity:	 	CEO
	
	 Address: c/o 4/F, No. 44/46, Jianzhong Road,
 Tianhe District, Guangzhou, Guangdong, PRC.

	
	Attention: LI Xueling
	
	E-mail: lixueling@chinaduo.com

  
 Signatory Page

 Execution Version 

 
 IN WITNESS WHEREOF, the parties hereto have executed
this Investors’ Rights Agreement as of the day and year herein above first written. 
  

			
	CAYMAN SUBSIDIARY:
	
	 For and on behalf of
 NEOTASKS INC.

		
		 	 For and on behalf of

NeoTasks Inc.

		
	By:	 	 

		 	Authorized Signature(s)

 
			
	Name: LI Xueling

	Capacity: Authorized Director
	
	Address: c/o: 4/F, No. 44/46, Jianzhong Road, Tianhe District, Guangzhou, Guangdong, PRC.
		
	Attention:	 	LI Xueling
		
	E-mail:	 	lixueling@chinaduo.com

  
 Signatory Page

 Execution Version 

 
 IN WITNESS WHEREOF, the parties hereto have executed
this Investors’ Rights Agreement as of the day and year herein above first written. 
  

			
	HONG KONG SUBSIDIARY:
	
	 For and on behalf of
 NEOTASK LIMITED

		
		 	 For and on behalf of

NeoTask Limited
 

		
	By:	 	 

		 	Authorized Signature(s)

 
			
	Name: LI Xueling 

	Capacity: Authorized Director
	
	Address: c/o: 4/F, No. 44/46, Jianzhong Road,
	Tianhe District, Guangzhou, Guangdong, PRC
	
	Attention: LI Xueling
	
	E-mail: lixueling@chinaduo.com

  
 Signatory Page

 Execution Version 

 
 IN WITNESS WHEREOF, the parties hereto have executed
this Investors’ Rights Agreement as of the day and year herein above first written. 
  

			
		 	WFOES:
		
		 	 DUOWAN ENTERTAINMENT INFORMATION
 TECHNOLOGY (BEIJING) CO., LTD.            
 

	 

	 	 By:

	 	Name: LI Xueling

	 	Capacity: Legal Representative
	 	Affix Seal:
		
		 	Address: c/o Room 1507, B, Huizhi Tower, No. 9, Xueqing Road, Haidian District, Beijing, PRC
		
		 	Attention: LI Xueling
		
		 	E-mail: lixueling@chinaduo.com
		
		 	 ZHUHAI DUOWAN TECHNOLOGY LIMITED
 

	

	 	 By:

	 	Name: LI Xueling

	 	Capacity: Legal Representative
	 	Affix Seal:
	 	  
 Address: Area C, 13th Floor, No. 1, Exhibition Center,
No. 1, Software Garden Road, Tangjiawan Town, Zhuhai, Guangdong, PRC.

		
		 	Attention: LI Xueling
		
		 	E-mail: lixueling@chinaduo.com

  
 Signatory Page

 Execution Version 

 
 IN WITNESS WHEREOF, the parties hereto have executed
this Investors’ Rights Agreement as of the day and year herein above first written. 
  

					
	DOMESTIC COMPANIES:	 	
	
	 ZHUHAI DUOWAN INFORMATION AND TECHNOLOGY CO., LIMITED
 

	By:	 	 

	 	

	Name: CAO Jin 

	 
	Capacity: Legal Representive	 
	Affix Seal: 	 
	 
	
	 Address: Area B, 13th Floor, No. 1, Exhibition Center, No. 1, Software Garden Road,

Tangjiawan Town, Zhuhai, Guangdong, PRC.

		
	E-mail: caojin@chinaduo.com	 	
	
	 GUANGZHOU HUADUO NETWORK TECHNOLOGY CO., LTD.
 

	By:	 	 

	 	

	Name: LI Xueling 

	 
	Capacity: Legal Representative	 
	Affix Seal: 	 
	
	Address: 4/F, No. 44/46 Jianzhong Road, Tian He District, Guangzhou, Guangdong Province, PRC
	Post Code: 510660	 	
		
	Attention: LI Xueling 

	 	
		
	E-mail: lixueling@chinaduo.com	 	
	
	 BEIJING TUDA TECHNOLOGY CO., LTD
 

	By:	 	 

	 	

	Name: CAO Jin

	 
	Capacity: Legal Representative	 
	Affix Seal:	 
	
	Address: Room 1506, B, Huizhi Tower, No. 9, Xueqing Road, Haidian District, Beijing, PRC
		
	E-mail: caojin@chinaduo.com	 	

  
 Signatory Page

 Execution Version 

 
 IN WITNESS WHEREOF, the parties hereto have executed
this Investors’ Rights Agreement as of the day and year herein above first written. 
  

	
	KEY HOLDERS:
	
	 

	LI Xueling

	
	Address: No. 33 Xuesha Road, Zonglu Tan, Lijiang Garden, Panyuan District, Guangzhou, PRC
	
	E-mail: lixueling@chinaduo.com
	
	  

	LEI Jun

	
	Address: Room 19E, Block A, Hua Ting Jia Yuan, Bei Si Huan Zhong Lu, Chao Yang District, Beijing, PRC
	
	E-mail: leijun@gmail.com

  
 Signatory Page

 Execution Version 

 
 IN WITNESS WHEREOF, the parties hereto have executed
this Investors’ Rights Agreement as of the day and year herein above first written. 
  

	
	KEY HOLDERS:
	
	  

	LI Xueling

	
	Address: No. 33 Xuesha Road, Zonglu Tan, Lijiang Garden, Panyuan District, Guangzhou, PRC
	
	E-mail: lixueling@chinaduo.com
	
	 

	LEI Jun

	
	Address: Room 19E, Block A, Hua Ting Jia Yuan, Bei Si Huan Zhong Lu, Chao Yang District, Beijing PRC
	
	E-mail: leijun@gmail.com

  
 Signatory Page

 Execution Version 

 
 IN WITNESS WHEREOF, the parties hereto have executed
this Investors’ Rights Agreement as of the day and year herein above first written. 
  

	
	KEY HOLDERS:
	
	 

	CAO Jin

	
	Address: 6-1-301, Guanjingli, Hongqi South Road, Nankai District, Tianjin, PRC.
	
	E-mail: caojin@chinaduo.com
	
	 

	ZHAO Bin

	
	Address: 6-2-501, Jiefangdongyuan, No. 55, Dongxi, Luoyang, Henan, PRC
	
	E-mail: zhaobin@chinaduo.com

  
 Signatory Page

 Execution Version 

 
 IN WITNESS WHEREOF, the parties hereto have executed
this Investors’ Rights Agreement as of the day and year herein above first written. 
  

					
	INVESTOR:
	
	STEAMBOAT VENTURES ASIA, L.P.
		
	By:	 	Steamboat Ventures Asia Manager, L.P.
	Its:	 	General Partner
		
	By:	 	Steamboat Ventures Asia GP, Ltd.
	Its:	 	General Partner
		
	By:	 	 

	Name and Capacity: Daniel L. Beldy, Director

  
 Signatory Page

 Execution Version 

 
 IN WITNESS WHEREOF, the parties hereto have executed
this Investors’ Rights Agreement as of the day and year herein above first written. 
  

			
	INVESTOR:
	 For and on behalf of
 FAVOR STAR LIMITED

		
	By:	 	 

	Name: Rayrnond Long Sing Tang/Louise Mary Garbarino
	Capacity: Authorized Signatures
	
	Address: c/o 22/F Hang Lung Centre, 2-20 Paterson Street, Causeway Bay, Hong Kong
	
	Attention: Alice Li
	
	E-mail: alice.li@springfld.com/lgarbarino@thc-mgt.mc

  
 Signatory Page

 Execution Version 

 
 IN WITNESS WHEREOF, the parties hereto have executed
this Investors’ Rights Agreement as of the day and year herein above first written. 
  

	
	INVESTOR:
	
	 MORNINGSIDE CHINA TMT FUND I, L.P.,
 a Cayman Islands exempted limited partnership,

	
	By: MORNINGSIDE CHINA TMT GP, L.P., a
	Cayman Islands exempted limited partnership, its general partner,
	
	By: TMT GENERAL PARTNER LTD., a
	Cayman Islands limited company, its general partner
	
	 

	Director/Authorized Signatory
	Date:

  
 Signatory Page

 Execution Version 
 IN WITNESS WHEREOF, the parties hereto have executed this Investors’ Rights Agreement as of the day and year herein above first written. 

 

					
	INVESTORS:
	
	GRANITE GLOBAL VENTURES III L.P.
		
	By:	 	 Granite Global Ventures III L.L.C.,
 its General Partner

		
	By:	 	 

	Name: Hany Nada
	Capacity: Managing Director
	
	Address: 2494 Sand Hill Road, Suite 100,
	Menlo Park, CA 94025 USA
	
	Attention:
	
	E-mail: hnada@ggvc.com
	
	GGV III ENTREPRENEURS FUND L.P.
		
	By:	 	 Granite Global Ventures III L.L.C.,
 its General Partner

		
	By:	 	 

	Name: Hany Nada
	Capacity: Managing Director
	
	Address: 2494 Sand Hill Road, Suite 100,
	Menlo Park, CA 94025 U.S.A.
	
	Attention:
	
	E-mail: hnada@ggvc.com

 Signatory Page 

 IN WITNESS WHEREOF, the parties hereto have executed this Investors’ Rights
Agreement as of the day and year herein above first written. 
  

			
	INVESTOR:
	
	TIGER GLOBAL SIX YY HOLDINGS
		
	By:	 	 

	Name: Moussa Taujoò
	Capacity: Director
	
	Address: Tiger Global Mauritius Office, TwentySeven, Cybercity, Ebene, Mauritius
	
	Attention: Moussa Taujoo
	
	E-mail: mataujoo@tigerglobal.com

 Signatory Page 

 Execution Version 

 
 EXHIBIT A 

KEY HOLDERS 
  

			
	 Name of the Key Holder
	 	 Passport/ID No.

	 LI Xueling 

	 	640204197410230034
	 LEI Jun

	 	11010819691216311X
	 ZHAO Bin 

	 	110108710130183
	 CAO Jin 

	 	120104197211114332

  
 Exhibit A

 Execution Version 

 
 EXHIBIT B 

SERIES A INVESTORS 
  

	
	 Name of the Series A Investor

	Favor Star Limited
	Morningside China TMT Fund I, L.P.

  
 Exhibit B

 Execution Version 

 
 EXHIBIT C 

SERIES B INVESTORS 
  

	
	 Name of the Series B Investor

	Morningside China TMT Fund I, L.P.
	Steamboat Ventures Asia, L.P.

  
 Exhibit C

 Execution Version 

 
 EXHIBIT D 

SERIES C INVESTORS 
  

	
	 Name of the Series C Investor

	Morningside China TMT Fund I, L.P.
	Steamboat Ventures Asia, L.P.
	Granite Global Ventures III L.P.
	GGV III Entrepreneurs Fund L.P.

  
 Exhibit D

 SASMF 
  

EXHIBIT E 
 KEY EMPLOYEES 
  

			
	 Name of the Key Employee
	 	 PRC Identity Card No.

	 LI Xueling
	 	640204197410230034
	 CAO Jin
	 	120104197211114332
	 ZHAO Bin
	 	110108710130183

  
 Exhibit E

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