Document:

exhibit101shareissuancea

FOIA CONFIDENTIAL TREATMENT HAS BEEN REQUESTED PURSUANT TO RULE 406  UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND RULE 24b-2 UNDER THE  SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, FOR INFORMATION CONTAINED  IN THIS DOCUMENT INDICATED HEREIN                                                            EXECUTION VERSION                        SHARE ISSUANCE AND ACQUISITION AGREEMENT                                                                            by and among:                                                                WAL-MART INTERNATIONAL HOLDINGS, INC.,                                 a Delaware corporation;                              FLIPKART PRIVATE LIMITED,                             a company incorporated in Singapore;                           and, for purposes of Section 10.19 only,                                   WALMART INC.,                                a Delaware corporation                                                                             Dated as of May 9, 2018                                                

 

                             TABLE OF CONTENTS                                                                            Page  1.    Description of Transaction ............................................................................................................... 2        1.1   Issuance of Issued Shares.................................................................................................... 2        1.2   Closing ................................................................................................................................ 2        1.3   Issuance of Additional Shares ............................................................................................. 2        1.4   Further Action ..................................................................................................................... 3        1.5   Effect of Payments .............................................................................................................. 3  2.    Representations and Warranties of the Company ............................................................................ 3        2.1   Due Organization; Etc ........................................................................................................ 3        2.2   Charter Documents; Records .............................................................................................. 4        2.3   Capitalization ...................................................................................................................... 4        2.4   Financial Statements and Related Information. .................................................................. 8        2.5   Liabilities. ........................................................................................................................... 9        2.6   Absence of Changes .......................................................................................................... 10        2.7   Title to Property and Assets .............................................................................................. 11        2.8   Bank Accounts .................................................................................................................. 11        2.9   Real Property .................................................................................................................... 12        2.10  Intellectual Property .......................................................................................................... 12        2.11  Contracts ........................................................................................................................... 20        2.12  Compliance with Legal Requirements .............................................................................. 22        2.13  Governmental Authorizations; No Subsidies .................................................................... 25        2.14  Tax Matters ....................................................................................................................... 25        2.15  Employee and Labor Matters; Benefit Plans .................................................................... 28        2.16  Environmental Matters ..................................................................................................... 31        2.17  Insurance ........................................................................................................................... 31        2.18  Related Party Transactions ............................................................................................... 32        2.19  Legal Proceedings; Orders ................................................................................................ 32        2.20  Authority; Binding Nature of Agreements ....................................................................... 33        2.21  Non-Contravention; Consents ........................................................................................... 33        2.22  Brokers .............................................................................................................................. 34        2.23  Access to Information ....................................................................................................... 34        2.24  Full Disclosure .................................................................................................................. 34   3.    Representations and Warranties of Purchaser ................................................................................ 34         3.1   Valid Existence ................................................................................................................. 34        3.2   Authority and Due Execution ........................................................................................... 35        3.3   Non-Contravention ........................................................................................................... 35        3.4   Litigation ........................................................................................................................... 35        3.5   Financing .......................................................................................................................... 35        3.6   ************** ............................................................... ............................................... 35   4.    Certain Covenants of the Company ............................................................................................... 35   Confidential Information has been omitted from this page and replaced by the asterisks appearing on this page.  Such  Confidential Information has been filed separately with the Securities and Exchange Commission.  Confidential  treatment has been requested with respect to this omitted information under Rule 406 under the Securities Act of 1933, as  amended, and Rule 24b-2 under the Securities Exchange Act of 1934, as amended.  

 

              4.1   Access and Investigation................................................................................................... 35          4.2   Operation of the Business of the Acquired Companies .................................................... 37        4.3   Notification; Updates to Disclosure Schedule. ................................................................. 39        4.4   No Negotiation .................................................................................................................. 41        4.5   Termination/Amendment of Agreements ......................................................................... 41        4.6   Repayment of Insider Receivables .................................................................................... 41        4.7   Resignation of Officers and Directors .............................................................................. 41        4.8   Company Consideration Spreadsheet ............................................................................... 41        4.9   Notification and Consultation ........................................................................................... 41        4.10  Third Party Consents ........................................................................................................ 42        4.11  Compliance Programs ....................................................................................................... 42        4.12  Specified Warrant Cancelation ......................................................................................... 42        4.13  Intellectual Property Assignments .................................................................................... 42        4.14  Certain Compounding Filings and Other Actions ............................................................ 43   5.    Certain Covenants of the Parties .................................................................................................... 43         5.1   Filings and Consents. ........................................................................................................ 43        5.2   Public Announcements ..................................................................................................... 45        5.3   Reasonable Best Efforts .................................................................................................... 45        5.4   Directors and Officers of Acquired Companies. ............................................................... 45   6.    Conditions Precedent to Obligations of Purchaser ........................................................................ 46         6.1   Accuracy of Representations. ........................................................................................... 46        6.2   Performance of Covenants ................................................................................................ 47        6.3   Governmental and Other Consents; Expiration of Notice Periods. .................................. 47        6.4   Shareholder Approval ....................................................................................................... 47        6.5   No Material Adverse Effect .............................................................................................. 47        6.6   Agreements and Documents ............................................................................................. 47        6.7   No Restraints..................................................................................................................... 49        6.8   No Legal Proceedings ....................................................................................................... 49        6.9   Conversion Event .............................................................................................................. 50        6.10  Waivers ............................................................................................................................. 50        6.11  Specified Warrant Cancelation ......................................................................................... 50        6.12  Certain India Actions ........................................................................................................ 50        6.13  Board Appointments ......................................................................................................... 50        6.14  Secondary Share Purchase ................................................................................................ 50   7.    Conditions Precedent to Obligation of the Company .................................................................... 50         7.1   Accuracy of Representations ............................................................................................ 50        7.2   Performance of Covenants ................................................................................................ 51        7.3   Agreements and Documents ............................................................................................. 51        7.4   Governmental Approvals .................................................................................................. 51        7.5   No Restraints..................................................................................................................... 51      

 

   8.    Termination .................................................................................................................................... 51         8.1   Termination Events ........................................................................................................... 51        8.2   Termination Procedures .................................................................................................... 53        8.3   Effect of Termination ........................................................................................................ 53   9.    Indemnification .............................................................................................................................. 53         9.1   Survival of Representations, Warranties and Covenants .................................................. 53        9.2   Indemnification ................................................................................................................. 55        9.3   Limitations. ....................................................................................................................... 57        9.4   Defense of Third Party Claims ......................................................................................... 59        9.5   Indemnification Claim Procedure ..................................................................................... 60        9.6   Exclusive Remedy ............................................................................................................ 63        9.7   Exercise of Remedies Other Than by Purchaser ............................................................... 63        9.8   Recoveries ......................................................................................................................... 63        9.9   Company Actions ............................................................................................................. 64   10.   Miscellaneous Provisions............................................................................................................... 64         10.1  Further Assurances ........................................................................................................... 64        10.2  No Waiver Relating to Claims for Fraud .......................................................................... 64        10.3  Fees and Expenses ............................................................................................................ 64        10.4  Attorneys’ Fees ................................................................................................................. 65        10.5  Notices .............................................................................................................................. 65        10.6  Headings ........................................................................................................................... 66        10.7  Counterparts and Exchanges by Electronic Transmission or Facsimile ........................... 66        10.8  Governing Law; Dispute Resolution. ............................................................................... 66        10.9  Successors and Assigns .................................................................................................... 67        10.10 Remedies Cumulative; Specific Performance................................................................... 67        10.11 Waiver ............................................................................................................................... 68        10.12 Waiver of Jury Trial .......................................................................................................... 68        10.13 Amendments ..................................................................................................................... 68        10.14 Severability ....................................................................................................................... 68        10.15 Parties in Interest .............................................................................................................. 69        10.16 Entire Agreement .............................................................................................................. 69        10.17 Disclosure Schedule .......................................................................................................... 69        10.18 Certain Post-Closing Actions ............................................................................................ 69        10.19 Performance of Obligations .............................................................................................. 70        10.20 Construction ...................................................................................................................... 71                                                      ii    

 

                             Exhibits and Schedules   EXHIBIT A       Certain Definitions   Annex 1 to Exhibit A Persons Whose Knowledge is Imputed to the Company*   EXHIBIT B       Form of Release Agreement*   EXHIBIT C       Form of Written Resignation*   EXHIBIT D       Form of New Shareholders’ Agreement   Schedule 4.2(g) Convertible Security Liquidity Transactions*   Schedule 4.5    Agreements to be Terminated/Amended as of the Closing*   Schedule 4.10   Third Party Consents*   Schedule 4.13   Intellectual Property Assignments*   Schedule 4.14   Certain Compounding Filings, Submissions and Other Actions*   Schedule 6.3(b) Required Consents and Notices*   Schedule 6.12   Identified Premises*   * Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. A copy of any omitted schedule or exhibit will be furnished supplementally to the SEC upon request.                                         iii  

 

                     SHARE ISSUANCE AND ACQUISITION AGREEMENT         THIS SHARE ISSUANCE  AND ACQUISITION AGREEMENT (this  “Agreement”) is  being  entered  into  as  of  May 9,  2018  (the  “Agreement  Date”),  by  and  among: WAL-MART INTERNATIONAL  HOLDINGS, INC.,  a Delaware  corporation (“Purchaser”); FLIPKART PRIVATE LIMITED,  a  company  incorporated in Singapore with Company Registration Number 201129903N (the “Company”); and, for  purposes of Section 10.19 only, WALMART INC., a Delaware Corporation (“Parent”). Certain capitalized  terms used in this Agreement are defined in Exhibit A.                                       RECITALS         A.    The Company desires to issue to Purchaser, and Purchaser desires to purchase from the  Company, the number of Company Ordinary Shares (rounded up to the nearest whole share) equal to the  Aggregate Investment Amount divided by the Price Per Primary Share (such Company Ordinary Shares  being  referred  to  as  the  “Issued  Shares,”  and  the  issuance  of  the  Issued  Shares  to  Purchaser and  the  acquisition of the Issued Shares by Purchaser pursuant to this Agreement being referred to as the “Share  Issuance”).         B.    As  an  inducement  for  Purchaser  to  enter  into  this  Agreement  and  to  consummate  the  Share Issuance and the other Contemplated Transactions, concurrently with the execution and delivery of  this Agreement, certain shareholders of the Company (the “Secondary Sellers”) are entering into a Share  Purchase  Agreement  with Purchaser  and  Parent  (the  “Share  Purchase  Agreement”),  pursuant  to  which  Purchaser will purchase from such shareholders, contemporaneously with the Share Issuance, the number  of Company  Shares specified  opposite  the  term “Total Shares to be  Sold” on Schedule  I of the  Share  Purchase  Agreement  (the  sale  and  purchase  of  such  Company  Shares  pursuant  to  the  Share  Purchase  Agreement, the “Secondary Share Purchase”).          C.    On April 18, 2018, the Company initiated a repurchase of Company Shares from certain  of its shareholders through selective off-market purchases pursuant to Section 76D of the Companies Act  of Singapore, which offer to repurchase expires on May 16, 2018 (the “Repurchase Transactions”).         D.    The Company has delivered to each Secondary Seller, at least two Business Days prior to  the Agreement Date, an information statement setting forth all information material to such Secondary  Seller’s decision to sell Company Shares to Purchaser (the “Information Statement”).         E.    As  an  inducement  for  Purchaser  to  enter  into  this  Agreement  and  to  consummate  the  Share Issuance and the other Contemplated Transactions, the requisite holders of each series of Company  Preference  Shares  have  delivered  written  consents:  (i)  in  favor  of  the  conversion  of  such  series  of  Company Preference Shares into Company Ordinary Shares immediately after the Closing in compliance  with  the  Constitution  of  the  Company  (such  conversion,  the  “Conversion  Event”);  and  (ii)  electing  to  waive the treatment of the Secondary Share Purchase and the Share Issuance as a Liquidation Event (as  such  term  is  defined  in  the  Constitution  of  the  Company)  in  accordance  with  the  Constitution  of  the  Company  (the  waiver  of  such  treatment,  the  “Liquidation  Event  Waiver”).  In  addition,  the  requisite  holders of Company Shares have delivered written consents in favor of the approval of the Share Issuance  in  accordance  with  the  Constitution  of  the  Company,  the  Existing  Shareholders’  Agreement  and  applicable Legal Requirements.          F.    As  an  inducement  for  Purchaser  to  enter  into  this  Agreement  and  to  consummate  the  Share Issuance and the other Contemplated Transactions: (i) each of the Significant Investors (as such  term  is  defined  in  the  Constitution  of  the  Company)  has  executed  and delivered  to  the  Company  and  Purchaser a written consent electing to treat the Issued Shares as Excepted Dilution Instruments (as such      

 

   term is defined in the Constitution of the Company) pursuant to the Constitution of the Company and the  Existing Shareholders’ Agreement; (ii) each holder of Series I Shares has executed and delivered to the  Company and Purchaser a written waiver of any preemptive rights or similar rights that such holder may  have under the Constitution of the Company or the Existing Shareholders’ Agreement in connection with  the  Share  Issuance  (the  written  consents and  waivers identified  in clauses  “(i)” and  “(ii)” above  being  collectively  referred  to  as  the  “Preemptive  Rights  Waiver”);  and  (iii)  the  Company  and  the  requisite  holders of Company Shares have executed and delivered to Purchaser agreements terminating the Side  Letter, the Existing Registration Rights Agreement, the Existing Shareholders’ Agreement and each of the  Series Deeds effective as of the Closing.                                    AGREEMENT         The parties to this Agreement, intending to be legally bound, agree as follows:   1.    DESCRIPTION OF TRANSACTION         1.1   Issuance of Issued Shares.                 (a)  Not less than three Business Days before the Closing, Purchaser shall deliver a   notice  to  the  Company  specifying  the  aggregate  dollar amount  that  Purchaser  elects  to  pay  for  the   Company Ordinary Shares to be issued to Purchaser pursuant to Section 1.1(b), which amount shall be   no less than $2,000,000,000 and no more than $5,000,000,000 (the amount specified in such notice, the   “Aggregate Investment Amount”).                 (b)  At  the  Closing,  upon  the  terms  and  subject  to  the  conditions  set  forth  in  this   Agreement,  the  Company  shall  issue  and  allot  to  Purchaser,  and  Purchaser  shall  purchase  from  the   Company, the Issued Shares.  The Issued Shares shall be issued and allotted as fully paid up Company   Ordinary Shares, free and clear of all Encumbrances (except those  imposed by applicable securities   laws and the New Shareholders’ Agreement), and shall rank pari passu in all respects with the other   Company Ordinary Shares issued and outstanding immediately after the Closing. Subject to Section 9,   the  consideration  payable  by  Purchaser  to  the  Company  for  each  of  the  Issued  Shares  shall  be  an   amount in cash equal to the Price Per Primary Share.          1.2   Closing.  The consummation of the Share Issuance (the “Closing”) shall take place at the  offices of Hogan Lovells US LLP, 4085 Campbell Avenue, Suite 100, Menlo Park, California 94025 (or,  at Purchaser’s election, by means of a virtual closing through electronic exchange of signatures), at 10:00  a.m.  (Central  time)  on  a  date  to  be  designated  by  Purchaser,  which  shall  be  no  later  than  the  third  Business Day after the satisfaction or waiver of the last to be satisfied or waived of the conditions set  forth in Sections 6 and 7 (other than  the  conditions  set forth in Sections 6.6 and 7.3, which  are  to be  satisfied  at the  Closing, but subject to the  satisfaction or waiver of those conditions), or at such other  place, time or date as Purchaser and the Company may jointly designate. The date on which the Closing  actually takes place is referred to in this Agreement as the “Closing Date.”         1.3   Issuance of Additional Shares.  At any time after the Closing and on or before the first  anniversary of the Closing Date, the Company shall, if requested by Purchaser or any of its Affiliates,  issue (on one or more occasions) additional Company Ordinary Shares with an aggregate purchase price  of up to $3,000,000,000 to Purchaser and/or one or more other Persons designated by Purchaser.  These  additional  Company  Ordinary  Shares  will  be  issued  at  the  same  Price  Per  Primary  Share  (subject  to  adjustment  in  accordance  with  the  last  sentence  of  this Section 1.3)  and  on  other  terms  at  least  as  favorable  to  the  Company  as  the  terms  set  forth  in  this  Agreement.  The  issuance  of  these  additional  Company Ordinary Shares will not require any further approval by the Company, the board of directors of                                          2    

 

   the Company (or any committee thereof) or any shareholder of the Company. If, between the Agreement  Date and the first anniversary of the Closing Date, the outstanding Company Ordinary Shares are changed  into a different number or class of shares by reason of any stock split, division or subdivision of shares,  stock  dividend,  reverse  stock  split,  consolidation  of  shares,  reclassification,  recapitalization  or  other  similar transaction, or if a stock dividend is declared by the Company during such period, or a record date  with respect to any such event shall occur during such period, then the price per share for the Company  Ordinary Shares to be issued pursuant to this Section 1.3 shall be adjusted to the extent appropriate to  provide the same economic effect as contemplated by this Section 1.3 prior to such action.          1.4   Further Action.  If, at any time after the Closing, any further action (of a type that is  routine and customarily provided for or contemplated in connection with transactions similar in nature to  the Contemplated Transactions) is necessary to carry out the intent and purposes of this Agreement or any  of the Contemplated Transactions or to vest Purchaser with full right, title and possession of and to all  Issued  Shares,  the  Company  shall  execute  and  deliver,  or  cause  to  be  executed  and  delivered,  such  additional  transfers,  assignments,  endorsements,  Consents  and  other  instruments,  and  shall  take  such  further actions, as Purchaser may reasonably request (provided that no such documents or actions shall be  deemed to increase the obligations or decrease the rights of the Company under this Agreement or the  Sellers under the Share Purchase Agreement).         1.5   Effect  of  Payments.  To  the  extent  permitted  by  applicable  Legal  Requirements,  payments made to Purchaser or any other Indemnitee pursuant to this Agreement (including pursuant to  Section 9) shall be treated by all parties as adjustments to the purchase price paid by Purchaser pursuant  to this Agreement.   2.    REPRESENTATIONS AND WARRANTIES OF THE COMPANY           Except as specifically set forth in the corresponding part of the Disclosure Schedule prepared by  the  Company  in  accordance  with Section 10.17 and  delivered  to  Purchaser  concurrently  with  the  execution and delivery of this Agreement, the Company represents and warrants, to and for the benefit of  Purchaser and the other Indemnitees (with the understanding and acknowledgement that Purchaser would  not have entered into this Agreement without being provided with the representations and warranties set  forth in this Section 2 and that Purchaser is relying on these representations and warranties, and with the  further understanding that Purchaser and the other Indemnitees have indemnification and other rights with  respect  to  breaches  of  or  inaccuracies  in  these  representations  and  warranties  as  set  forth  in  this  Agreement and in the Share Purchase Agreement), as follows:          2.1   Due Organization; Etc.                  (a)  Organization.  Each Acquired Company has been duly organized, and is validly   existing  and  in  good  standing  (to  the  extent  that  the  Legal  Requirements  of  the  jurisdiction  of  its   formation recognize the concept of good standing) under the Legal Requirements of the jurisdiction of   its formation.  Each Acquired Company has full power and authority: (i) to conduct its business in the   manner in which its business is currently being conducted; (ii) to own and use its assets in the manner   in which its assets are currently owned and used; and (iii) to perform its obligations under all Contracts   to which it is a party or by which it is bound.                (b)  Qualification.  Each Acquired Company is qualified, licensed or admitted to do   business in, and is in good standing (to the extent that the applicable jurisdiction recognizes the concept   of good standing), under the Legal Requirements of, all jurisdictions where the property owned, leased   or operated by it or the nature of its business requires such qualification, license or admission.                                           3    

 

                (c)  Directors  and  Officers.  Part 2.1(c) of  the  Disclosure  Schedule  accurately  sets   forth: (i) the names of the directors (if any) of each Acquired Company; and (ii) the names and titles of   the officers of each Acquired Company.                (d)  Powers of Attorney.  There are no outstanding powers of attorney executed by or   on behalf of any Acquired Company, other than authorizations to sign vakalatnamas (documents and   applications in courts, tribunals and related adjudicative bodies) executed in the ordinary course of such   Acquired Company’s business.         2.2   Charter  Documents;  Records.   The  Company  has  Made  Available  to  Purchaser  accurate  and  complete  copies  of:  (a)  the  constitution,  articles  of  association,  bylaws  and/or  other  applicable  organizational  documents  (the “Charter  Documents”),  including  all  amendments  thereto,  of  each  Acquired  Company;  (b)  the  share  registers or  register  of  membership  interests of  each  Acquired  Company; (c) all agreements between or among any Acquired Company, any owner of any equity interest  or voting right in any Acquired Company and/or any other third party that relates to the holding of any  equity interest or voting right in any Acquired Company; and (d) the minutes and other records of the  meetings and other proceedings (including any actions taken by written consent or otherwise without a  meeting) of the shareholders and the board of directors (or other similar body) or executive managers (as  the case may be) and all committees of the board of directors (or other similar body) of each Acquired  Company  since  April  1,  2015,  which  minutes  or  other  records  contain  a  complete  summary  of  all  meetings of directors, executive managers or shareholders, and all actions taken at such meetings or by  written consent.  All actions taken and all transactions entered into by each Acquired Company have been  duly  approved  by  all  necessary  action  of  the  board  of  directors  (or  other  similar  body),  executive  managers or shareholders of such Acquired Company (as the case may be).  There has been no violation  of any of the provisions of the Charter Documents of any Acquired Company and no Acquired Company  has  taken  any  action  that  is  inconsistent  in  any  material  respect  with  any  resolution  adopted  by  such  Acquired  Company’s  shareholders,  board  of  directors  (or  similar  body)  or  executive  managers  (as the  case may be).  The books of account, share records or records of membership interests, minute books and  other records of each Acquired Company are accurate, up-to-date and complete in all material respects,  and  have  been  maintained  in  accordance  with  prudent  business  practices  and  all  applicable  Legal  Requirements.         2.3   Capitalization.                  (a)  Company  Shares.   As  of  the  date  of  this  Agreement,  in  the  capital  of  the   Company: (i) an aggregate of 15,985,303 Company Ordinary Shares are issued and outstanding; (ii) an   aggregate  of 13,382,618 Series A Shares  are  issued  and  outstanding; (iii) an  aggregate  of 2,818,504   Series B Shares are issued and outstanding; (iv) an aggregate of 8,644,837 Series C Shares are issued   and  outstanding; (v) an  aggregate  of 14,265,131 Series D Shares  are issued and outstanding; (vi) an   aggregate  of 9,661,911 Series  E Shares are issued and outstanding; (vii) an  aggregate  of 12,554,027   Series F Shares are issued and outstanding; (viii) an aggregate of 4,258,600 Series G Shares are issued   and outstanding; (ix) an aggregate of 3,892,609 Series H Shares are issued and outstanding; and (x) an   aggregate of 47,012,094 Series I Shares are issued and outstanding. As of the Agreement Date, there are   no Company Shares held by the Company as treasury shares or otherwise.  The Company has never   declared or paid any dividends on any Company Shares. Part 2.3(a) of the  Disclosure  Schedule sets   forth as of the Agreement Date with respect to each shareholder of the Company, such shareholder’s   name and addresses and the number, class and series of Company Shares held by such shareholder. All   of the outstanding Company Shares have been duly authorized, validly issued and allotted and are fully   paid, and none of such shares are subject to any repurchase option, forfeiture provision or restriction on   transfer  (other  than  restrictions  on  transfer  imposed  in  the  Existing  Shareholders’  Agreement  or  the   Constitution of the Company or by virtue of applicable securities laws). Each of the Issued Shares has                                         4    

 

                been  duly  authorized  and  as  of  the  Closing  will  be  validly  issued  and  allotted  and  fully  paid. Each  Company Preference Share (other than Series G Shares and Series H Shares) is convertible into one  Company  Ordinary  Share.  Each  Series  G  Share  is  convertible  into  1.359156088  Company  Ordinary  Shares and each Series H Share is convertible into 1.61428158 Company Ordinary Shares.                (b)  Subsidiaries.  Part 2.3(b) of the  Disclosure  Schedule sets  forth a  complete  and  accurate list of the name and jurisdiction of organization of each Acquired Company (other than the  Company) and the number, class and series of all outstanding capital shares, membership interests and  other equity interests of such Acquired Company and the record owners thereof. All of the shares of,  and other equity, voting, beneficial or ownership interests in, each Acquired Company (other than the  Company)  are  owned  by  another  Acquired  Company  free  and  clear  of  any  Encumbrances  and  such  Acquired Company has good, valid and marketable title to such shares or such equity, voting, beneficial  or ownership interests. None of the Acquired Companies has ever owned, beneficially or otherwise, any  shares,  membership  interests  or  other  securities  of,  or  any  direct  or  indirect  equity  interest  in,  any  Entity, other than another Acquired Company.  No Acquired Company has agreed or is obligated to  make any future investment in or capital contribution to any Entity. All of the issued and outstanding  shares and other equity interests of each Acquired Company (other than the Company) have been duly  authorized  and  validly  issued,  and  are  fully  paid,  non-assessable  and  not  subject  to  any  preemptive  rights. No Acquired Company has the right to vote on or approve the Share Issuance or any of the other  Contemplated Transactions. None of the capital stock or other equity, voting, beneficial, financial or  ownership interests  of any Acquired Company  is  subject to any voting trust agreement or any other  Contract  relating  to  the  voting,  dividend  rights  or  disposition  of any  capital  stock  or  other  equity,  voting, beneficial, financial or ownership interests of any Acquired Company, except that the Company  Shares  are  subject to the terms  of the  Existing Shareholders’ Agreement and  the  Constitution of the  Company. Each Acquired Company has complied with all reporting obligations under applicable Legal  Requirements in connection with any transfer of any securities of such Acquired Company.               (c)  Company  Options.  The  Company  has  reserved  11,947,026  Company  Ordinary  Shares  for  issuance  under  the  Company  Option  Plans,  of  which  options  to  purchase  6,242,271  Company Ordinary Shares are outstanding as of the Agreement Date.  Part 2.3(c)-1 of the Disclosure  Schedule  accurately  sets  forth,  with  respect  to  each  Company  Option  that  is  outstanding  as  of  the  Agreement Date: (i) the name of the holder of such Company Option and whether such holder is still  employed by an Acquired Company; (ii) the total number of Company Ordinary Shares that are subject  to such Company Option; (iii) the date on which such Company Option was granted and the term of  such Company Option; (iv) the vesting schedule for such Company Option; (v) the exercise price per  Company Ordinary Share purchasable under such Company Option; and (vi) whether such Company  Option is subject to any Encumbrance by virtue of any action taken by or on behalf of an Acquired  Company or whether any restrictions have been imposed on such Company Option by the Company.  Part 2.3(c)-2 of the Disclosure Schedule accurately sets forth, with respect to each Company Subsidiary  Option that  is  outstanding  as  of the  Agreement  Date:  (A)  the  name  of  the  holder of  such  Company  Subsidiary  Option  and  whether  such  holder  is  still  employed  by  an  Acquired  Company;  (B)  the  Acquired Company that issued such Company Subsidiary Option, the total number of shares that are  subject to such Company Subsidiary Option; (C) the date on which such Company Subsidiary Option  was  granted  and  the  term  of  such  Company  Subsidiary  Option;  (D)  the  vesting  schedule  for  such  Company  Subsidiary  Option;  (E)  the  exercise  price per  share  purchasable  under  such  Company  Subsidiary Option; and (F) whether such Company Subsidiary Option is subject to any Encumbrance by  virtue of any action taken by or on behalf of an Acquired Company or whether any restrictions have  been  imposed  on  such  Company  Subsidiary  Option  by  any  Acquired  Company.  Each  grant  of  an  Acquired  Company  Option  was  duly  authorized  no  later  than  the  date  on  which  the  grant  of  such  Acquired Company Option was, by its terms, to be effective (the “Option Grant Date”) by all necessary  corporate,  partnership  or  similar  Entity  governance  action,  including,  as  applicable,  approval  by  the                                        5                 

 

                board  of directors  (or similar  body)  of  the  applicable  Acquired  Company  (or  a  duly  constituted  and  authorized committee thereof) and any required shareholder approval by the necessary number of votes  or  written  consents,  and  the  award  agreement  governing  such  grant  (if  any)  was  duly  executed  and  delivered by each party thereto and is in full force and effect, each such grant was made in accordance  with  the  terms  of  the  applicable  Acquired  Company  Option  Plan  and  all  other  applicable  Legal  Requirements, the per share exercise price of each Acquired Company Option issued to a U.S. taxpayer  was equal to or greater than the fair market value of a share of the Acquired Company that issued such  Acquired  Company  Option  on  the  applicable  Option  Grant  Date  and  each  such  grant  was  properly  accounted for in accordance with IFRS in the financial statements (including the related notes) of the  Company.  All Acquired Company Options that were ever issued by any Acquired Company ceased to  vest on the date on which the holder thereof ceased to be an employee or director of, or a consultant to,  an Acquired Company.  The exercise of each Acquired Company Option and the payment of cash in  respect thereof complied with the terms of the applicable Acquired Company Option Plan, all Contracts  applicable  to  such  Acquired  Company  Option and  all  Legal  Requirements. The  Company  has  Made  Available to Purchaser accurate and complete copies of the Acquired Company Option Plans and each  form of agreement used thereunder.               (d)  Warrants.  Part 2.3(d)-1 of  the  Disclosure  Schedule  accurately  sets  forth,  with  respect to each Company  Warrant that is outstanding as of the  Agreement Date: (i) the name  of the  holder of such Company Warrant; (ii) the class, series and total number of Company Shares that are  subject to such Company Warrant and the class, series and number of Company Shares with respect to  which  such  Company  Warrant  is  immediately  exercisable;  (iii)  the  date  on  which  such  Company  Warrant was issued and the term of such Company Warrant; and (iv) the exercise price per Company  Share purchasable under such Company Warrant. Part 2.3(d)-2 of the Disclosure Schedule accurately  sets forth, with respect to each Company Subsidiary Warrant that is outstanding as of the Agreement  Date: (A) the name of the holder of such Company Subsidiary Warrant; (B) the class, series and total  number of shares that are subject to such Company Subsidiary Warrant and the class, series and number  of shares with respect to which such Company Subsidiary Warrant is immediately exercisable; (C) the  date on which such Company Subsidiary Warrant was issued and the term of such Company Subsidiary  Warrant; and (D) the exercise price per share purchasable  under such Company Subsidiary Warrant.  The  Company  has  Made  Available  to  Purchaser  an  accurate  and  complete  copy  of  each  Company  Warrant and each Company Subsidiary Warrant.                 (e)  No Other Securities or Agreements.  Except as set forth in Parts 2.3(a), 2.3(b),  2.3(c)-1, 2.3(c)-2, 2.3(d)-1 and 2.3(d)-2 of the Disclosure Schedule, there is no: (i) issued or outstanding  subscription, option, call, convertible  note,  warrant or right (whether or not currently exercisable) to  acquire any share in the capital, membership interest or other security of any Acquired Company; (ii)  outstanding security, profits interest, instrument or obligation that is or may become convertible into or  exchangeable  for  any  share  in  the  capital,  membership  interest  or  other  security  of  any  Acquired  Company; (iii) Contract under which any Acquired Company is or may become obligated to sell, grant  or  otherwise  issue  any  share  in  the  capital,  membership  interest  or  other  security  of  any  Acquired  Company; or (iv) to the Knowledge of the Company, any condition or circumstance that may give rise  to or provide a basis for the assertion of a valid claim by any Person to the effect that such Person is  entitled  to  acquire  or  receive  any  share  in  the  capital,  membership  interest  or  other  security  of  any  Acquired  Company.  As  of the  Closing, there  will be  no Company Subsidiary Options  or Company  Subsidiary  Warrants  outstanding.  Part 2.3(e) of  the  Disclosure  Schedule  accurately  identifies  each  Company  Contract  relating  to any  security  or  membership  interest  of  any  Acquired  Company  that  contains any information rights, registration rights, financial statement requirements or other terms that  would survive the Closing unless terminated or amended prior to the Closing.                                         6                 

 

                            (f)  Legal Issuance.  All shares in the capital, membership interests or other securities  of  each  Acquired  Company that  have  ever  been  issued  or  granted  have  been  fully  paid  and  validly  issued  and  granted  in  compliance  with:  (i)  all  applicable  securities  laws  and  other  applicable  Legal  Requirements, including all reporting requirements thereunder; (ii) all applicable Charter Documents;  (iii)  all  applicable  shareholders  agreements  and  similar  agreements  (including  the  Existing  Shareholders’ Agreement); and (iv) all requirements set forth in all applicable Contracts.  None of the  outstanding shares in the capital, membership interests or other securities of any Acquired Company  were issued in violation of any preemptive rights or other rights to subscribe for or purchase securities  or membership interests of any Acquired Company.               (g)  Repurchased Shares.                      (i)   Part 2.3(g)(i)-1 of  the  Disclosure  Schedule accurately  sets  forth  with       respect to any shares ever repurchased or redeemed by any Acquired Company on or prior to the       Agreement Date: (A) the name of the seller of such shares; (B) the number, class and series of       shares repurchased or redeemed; (C) the date of such repurchase or redemption; and (D) the price       paid  by  such  Acquired  Company  for  such  shares.  All  shares  ever  repurchased,  redeemed,       converted  or  cancelled  by  any  Acquired  Company  were  repurchased,  redeemed,  converted  or       cancelled  in  compliance  with:  (1)  all  applicable  securities  laws  and  other  applicable  Legal       Requirements;  (2)  all  applicable  Charter  Documents;  and  (3)  all  requirements  set  forth  in  all       applicable  Contracts,  including  the  Existing  Shareholders’  Agreement. Part 2.3(g)(i)-2 of  the       Disclosure  Schedule  accurately  sets  forth  all  redemption  rights  with  respect  to  each  Company       Share in favor of the Company or the holder thereof.                    (ii)  Without  limiting  the  generality  of Section 2.3(g)(i),  none  of  the       Repurchase Transactions: (A) conflicted with or violated any of the  Charter Documents  of the       Company or any resolution adopted by the shareholders, the board of directors or any committee       of the board of directors of the Company; (B) conflicted with or violated any applicable securities       law, corporate statute or other Legal Requirement to which the Company is or was subject; (C)       resulted in any breach of or constituted a default (or an event that with notice or lapse of time or       both would become a default) under, or impaired the rights of the Company or altered the rights       or obligations of any Person under, or gave to any Person any right of termination, amendment,       acceleration or cancellation of, or has resulted in the creation of an Encumbrance on any of the       assets  of  any  Acquired  Company  pursuant  to,  any  Company  Contract;  or  (D)  contravened,       conflicted  with  or  resulted  in  a  violation  of  any  of  the  terms  or  requirements  of,  or  gave  any       Governmental  Entity  the  right  to  revoke,  withdraw,  suspend,  cancel, terminate  or  modify,  any       Governmental  Authorization  that  is  or  was  held  by  any  of  the  Acquired  Companies  or  that       otherwise relates to such Acquired Company’s business or to any of the assets owned by such       Acquired  Company.  The  Company  disclosed  to  each  of  the  shareholders  from  which  the       Company repurchased Company Shares in the Repurchase Transactions information concerning       the  Acquired  Companies  and their businesses and  prospects that was necessary to enable  such       shareholders to make a fully informed decision concerning the sale of such Company Shares to       the  Company  pursuant  to  the  Repurchase  Transactions  (including  any  financial  or  other       information requested by any such shareholders).               (h)  Ungranted Equity.  Part 2.3(h) of the Disclosure Schedule (i) identifies as of the  Agreement Date each Company Employee or other Person who has received or may have rights under  an offer letter, employment agreement or other Contract that contemplates a grant of options or other  equity awards with respect to Company Shares or any other security of any Acquired Company, which  options, other equity awards or other securities have not been issued or granted as of the Agreement                                         7                 

 

                Date  and  (ii)  specifies  the  number  of  such  options,  other  equity  awards  or  other  securities  and  any  promised terms with respect thereto.        2.4   Financial Statements and Related Information.               (a)  Delivery  of  Financial  Statements.   The  Company  has  Made  Available  to  Purchaser  the  audited  consolidated  financial  statements  (consisting  of  consolidated  statements  of  financial  position,  consolidated  income  statements,  consolidated  statements  of  other  comprehensive  income, consolidated statements of changes in equity and consolidated statements of cash flows) of the  Acquired Companies as of and for the fiscal years ended March 31, 2018, March 31, 2017, March 31,  2016 and March 31, 2015, including the notes thereto and the unqualified report and opinion of Ernst &  Young Associates LLP thereon. The financial statements referred to in this Section 2.4(a) and the notes  thereto are referred to collectively as the “Company Financial Statements.”                (b)  Fair  Presentation.   The  Company  Financial  Statements  were  prepared  in  accordance with IFRS consistently applied throughout the periods covered and in accordance with the  Company’s historic past practice and fairly present in all material respects the consolidated financial  position,  results  of  operations,  changes  in  shareholders’  equity  and  cash  flows  of  the  Acquired  Companies as of the dates, and for the periods, indicated therein. All required write-downs and reserves  have been entered into the Company Financial Statements in accordance with IFRS, and the Company  Financial  Statements  do  not  include  any  extraordinary  items  that  are  not  specifically  and  clearly  disclosed therein unless otherwise permitted by IFRS. There are no Encumbrances on any of the cash  and cash equivalents reported on the Most Recent Balance Sheet. The Pre-Closing Financial Statements  will be prepared in accordance with IFRS consistently applied throughout the periods covered and in  accordance with the Company’s historic past practice (except that the Pre-Closing Financial Statements  might not contain footnotes and are subject to customary year-end audit adjustments that, individually  or  in  the  aggregate,  will  not  be  material)  and  will  fairly  present  the  consolidated  financial  position,  results of operations, changes in shareholders’ equity and cash flows of the Acquired Companies as of  the dates, and for the periods, indicated therein.               (c)  Internal Controls.  The books, records and accounts of each Acquired Company  accurately and fairly reflect, in reasonable detail, the transactions in and dispositions of the assets of  such Acquired Company.  The systems of internal accounting controls maintained by each Acquired  Company are sufficient to provide reasonable assurance that: (i) transactions are executed in accordance  with  management’s  general  or  specific  authorization;  (ii)  transactions  are  recorded  as  necessary  to  permit preparation of financial statements in conformity with IFRS or Indian GAAP, as applicable, and  to  maintain  accountability  for  assets;  (iii)  access  to  assets  is  permitted  only  in  accordance  with  management’s general or specific authorization; (iv) the recorded accountability for assets is compared  with  the  existing  assets  at  reasonable  intervals  and  appropriate  action  is  taken with  respect  to  any  differences; (v) violations of applicable Anti-Corruption Laws will be prevented and detected; and (vi)  none of the Acquired Companies maintain any off-the-books accounts or more than one set of books or  financial or other records.  Part 2.4(c) of the Disclosure Schedule lists as of the Agreement Date, and  the Company has Made Available to Purchaser copies of, all written descriptions of, and all policies,  manuals and other documents promulgating, such internal accounting controls.               (d)  Accounts Receivable; Inventory.  All of the accounts receivable of the Acquired  Companies (including those  accounts  receivable reflected on the  Company Financial Statements  that  have not yet been collected and those accounts receivable that have arisen since the Balance Sheet Date  and  have  not  yet  been  collected):  (i)  represent  valid  obligations  arising  from  bona  fide  transactions  entered into in the ordinary course of business and not in violation of any Legal Requirement; (ii) are  carried on the  records  of the  Acquired  Companies  at values determined in accordance with IFRS or                                        8                 

 

                Indian  GAAP,  as  applicable;  and  (iii)  are  collectible  (which,  for  the  avoidance of  doubt,  is  not  a  guarantee  of  collection),  subject  to  the  allowance  for  doubtful  accounts  shown  on  the  Most  Recent  Balance  Sheet. No  Person  has  any  Encumbrance  on  any  of  such  accounts  receivable,  and,  as  of  the  Agreement Date, no request or agreement for deduction or discount has been made with respect to any  of such accounts receivable, except as fully and adequately reflected in reserves for doubtful accounts  set forth in the audited consolidated statement of financial position dated March 31, 2018 (the “Balance  Sheet Date”) and included in the Company Financial Statements (the “Most Recent Balance Sheet”).  All inventory reported on the Most Recent Balance Sheet is  stated at the lower of cost or realizable  value  and  is  expected  to be  sold for a  value  not lower than  the  reported  book value.  Any damaged,  expired, non-moving or slow moving inventory has been fully provided for on the Most Recent Balance  Sheet.                (e)  Insider  Receivables.  Part 2.4(e) of  the  Disclosure  Schedule  provides  (i)  an  accurate and complete breakdown of all amounts (including loans, advances or other amounts) owed to  any Acquired Company by a director, executive officer or shareholder of any Acquired Company (other  than any such amount owed to the Company by an employee of any Acquired Company in the ordinary  course of the Acquired Companies’ business) (“Insider Receivables”) as of the Agreement Date and (ii)  an  indication  of  whether  any  such  amount  is  delinquent  by  more  than  30  days.  There  will  be  no  outstanding Insider Receivables as of the Closing.        2.5   Liabilities.               (a)  No Liabilities.  No Acquired Company has any material Liability, other than: (i)  liabilities identified as such in the “liabilities” column of the Most Recent Balance Sheet; (ii) liabilities  that  have  been  incurred  since  the  date  of  the  Most  Recent  Balance  Sheet  in  the  ordinary  course  of  business and consistent with past practices; (iii) obligations that (A) exist under Company Contracts,  (B) are expressly set forth in and identifiable by reference to the text of such Company Contracts and  (C) are not required to be identified as liabilities in a balance sheet prepared in accordance with IFRS;  and  (iv)  Company  Transaction  Expenses  identified  in  the  Company  Consideration  Spreadsheet.   For  purposes of this Section 2.5(a), the mere existence, in and of itself, of a claim, complaint or notice from  a  third  party  alleging  wrongdoing  by  any  Acquired  Company  that  is  asserted  or  delivered  after  the  Agreement  Date  shall  not  constitute  an  unknown,  undisclosed,  unmatured,  unaccrued,  unasserted,  contingent, indirect, conditional or other liability or obligation of the  Acquired Companies as of the  Closing Date and accordingly shall not constitute a breach of this Section 2.5(a).  Without limiting the  generality of the foregoing: (1) immediately after the Closing, the Company will have no Liability to  any shareholder or former shareholder of the Company arising out of or relating to any breach of any  representation  or  warranty  made by  the  Company  under  any  deed,  side  letter,  share  purchase  or  investment  agreement  or  any  other  similar  Contract  or  by  virtue  of  any  indemnification  or  similar  obligation of the Company (other than the D&O Indemnification Obligations); and (2) following the  Closing, the Company will not incur or otherwise become subject to any Liability to any shareholder or  former  shareholder  of  the  Company  based  on  any  deed,  side  letter,  share  purchase  or  investment  agreement or any other similar Contract executed at any time prior to the Closing.               (b)  Indebtedness.  Part 2.5(b) of the Disclosure Schedule sets forth an accurate and  complete  list  of  all  Company  Indebtedness  as  of  the  Agreement  Date,  identifying  the  creditor  or  creditors  to  which  such  Indebtedness  is  owed,  the  name  of  such  creditor  or  creditors,  the  type  of  instrument  under  which  such  Indebtedness  is  evidenced  or  the  agreement  under  which  such  Indebtedness was incurred and the aggregate principal amount of such Indebtedness as of the close of  business on the date of this Agreement. No Company Indebtedness contains any restriction upon: (i) the  prepayment of any of such Indebtedness; (ii) the incurrence of any other Indebtedness by any Acquired  Company; or (iii) the ability of any Acquired Company to grant any Encumbrance on any of its assets.                                        9                 

 

                No Acquired Company is in default with respect to any Company Indebtedness and no payment with  respect to any Company Indebtedness is past due. No Acquired Company has received any notice of a  default,  alleged  failure  to  perform  or  any  offset  or  counterclaim  with  respect  to  any  Company  Indebtedness (which allegations, in the case of notices received after the Agreement Date, are valid).  Neither  the  consummation  of  any  of  the  Contemplated  Transactions  nor  the  execution,  delivery  or  performance of any Transaction Document will, or would reasonably be expected to, cause or result in a  default, breach or acceleration, automatic or otherwise, of any condition, covenant or any other term of  any Company Indebtedness. No Acquired Company has guaranteed or otherwise become liable for any  Indebtedness of any other Person (other than an Acquired Company).               (c)  No Off-Balance Sheet Arrangements.  No Acquired Company has ever effected  or otherwise been involved in any off-balance sheet arrangement.  For purposes of this Section 2.5(c),  “off−balance sheet arrangement” means any transaction or Contract to which an Entity unconsolidated  with an Acquired Company is a party and under which such Acquired Company has: (i) any obligation  under a guarantee Contract pursuant to which such Acquired Company could be required to make any  payment  to  the  guaranteed  party,  including  any  standby  letter  of  credit,  market  value  guarantee,  performance  guarantee,  indemnification  agreement,  keep-well  or  other  support  agreement;  (ii)  any  retained  or  contingent interest  in  any  asset  transferred  to  such  unconsolidated  Entity  that  serves  as  credit, liquidity or market risk support to the Entity in respect of such asset; (iii) any variable interest  held in such unconsolidated Entity where such Entity provides any financing, liquidity, market risk or  credit risk support to, or engages in any leasing, hedging or research and development service  with,  such Acquired Company; and (iv) any other similar liability or obligation (whether absolute, accrued,  contingent  or  otherwise)  that  would  not  be  required  to  be  reflected  in  the  Company  Financial  Statements.               (d)  Director, Executive Manager and Officer Indemnification.  To the Knowledge of  the  Company,  as  of  the  Agreement  Date,  no  event  has  occurred,  and  no  circumstance  or  condition  exists,  that  has  resulted  in,  or  that  will  or  would  reasonably  be  expected  to  result  in,  any  claim  for  indemnification,  reimbursement,  contribution  or  the  advancement  of  expenses  by  any  Company  Employee (other than a claim for reimbursement by an Acquired Company, in the ordinary course of  business,  of  travel  expenses  or  other  out-of-pocket  expenses  of  a  routine  nature  incurred  by  such  Company Employee in the course of performing such Company Employee’s duties for such Acquired  Company) or any agent of any Acquired Company pursuant to: (i) the terms of the Charter Documents  of  such  Acquired  Company;  (ii)  any  indemnification  agreement  or  other  Contract  between  such  Acquired  Company  and  any  such  Company  Employee  or  agent;  or  (iii)  any  applicable  Legal  Requirement.               (e)  Claims by Securityholders.  As of the Agreement Date, no event has occurred,  and to the Knowledge of the Company no circumstance or condition exists, that has resulted in, or that  will  or  would  reasonably  be  expected  to  result  in,  any  Liability  of any  Acquired  Company  to  any  current,  former  or  alleged  securityholder  of  any  Acquired  Company  in  such  Person’s  capacity  (or  alleged  capacity)  as  a  securityholder  of  such  Acquired  Company (other  than  in  connection  with  the  exercise of rights granted to such securityholder pursuant to the Charter Documents of such Acquired  Company, any Contract with such Acquired Company or applicable Legal Requirements).        2.6   Absence of Changes.  Between March 31, 2018 and the Agreement Date:               (a)  there  has  not  been  any  Material  Adverse  Effect  (it  being  understood  that,  for  purposes  of  this Section 2.6(a) only,  all  references  to  “the  Agreement  Date”  in  clauses  “(i),”  “(ii),”  “(iii)”  “(iv),”  “(v)”  and  “(viii)”  of  the  definition  of  “Material  Adverse  Effect”  in Exhibit A shall  be  deemed to refer to “March 31, 2018”);                                         10                 

 

                (b)  each Acquired Company has:                     (i)   used  commercially  reasonable  efforts  to  (A)  preserve  intact  its  current        business organization,  (B)  keep  available  the  services  of  its  current  officers  employees  and        independent  contractors  (other  than  terminations  for cause), (C)  preserve  its  relationships  with        material customers, material suppliers, landlords, creditors and others having business dealings        with it and (D) maintain its material assets in their current condition, except for ordinary wear and        tear;                     (ii)  repaired,  maintained  or  replaced  all  material  equipment  in  accordance        with the normal standards of maintenance applicable in the industry;                     (iii) used commercially reasonable efforts to renew any Contract that was a        Material Contract, to the extent such Contract was up for renewal or otherwise terminating during        such period;                     (iv)  paid  all  material  accounts  payable  and  other  ordinary  course  operating        liabilities as they became due;                      (v)   prepared and filed or caused  to be  prepared and filed any Tax Returns        that were required to be filed and paid all Taxes due with respect to such Tax Returns within the        time and in the manner required by applicable Legal Requirements; and                (c)  none of the Acquired Companies has taken any action, or authorized, committed   or  agreed to  take  any  action  that,  if  taken  during  the  Pre-Closing  Period,  would  require  Purchaser’s   consent under Section 4.2.         2.7   Title to Property and Assets.                  (a)  The  Acquired  Companies  own,  and  have  good  and  valid  title  to,  all  tangible   assets purported to be owned by them, including: (i) all tangible assets reflected on the Most Recent   Balance  Sheet;  and  (ii)  all  other  tangible  assets  reflected  in  the  books  and  records  of  the  Acquired   Companies as  being owned by the Acquired Companies.  All such tangible assets are owned  by the   applicable  Acquired  Company  free  and  clear  of  any  Encumbrances  (other  than  Permitted   Encumbrances).   All  material  Company  Personal  Property:   (A)  is  in  good  operating  condition  and   repair  (ordinary  wear  and  tear  excepted)  and  is  adequate  for  the  conduct  of  each  of  the  Acquired   Companies’ respective businesses as they are currently conducted; (B) is available for immediate use in   the business and operation of the Acquired Companies as currently conducted; and (C) permits each   Acquired Company to operate in accordance with applicable Legal Requirements.                (b)  Part 2.7(b) of  the  Disclosure  Schedule  identifies  as of  the  Agreement  Date  all   Company Personal Property that is material to the business of the Acquired Companies and that is being   leased to any Acquired Company for monthly lease payments in excess of $100,000.          2.8   Bank Accounts.  Part 2.8 of the Disclosure Schedule provides as of the Agreement Date  the following information with respect to each account maintained by or for the benefit of any Acquired  Company at any bank or other financial institution: (i) the name of the bank or other financial institution  at which such account is maintained; (ii) the account number; (iii) the type of account; and (iv) the names  of all Persons who are authorized to sign checks or other documents with respect to or otherwise access  such account.                                          11    

 

                     2.9   Real Property.               (a)  No Owned Real Property.  No Acquired Company owns (or has ever owned) any  real property or any interest in real property (other than a leasehold interest).                (b)  Leaseholds.  Part 2.9(b) of  the  Disclosure  Schedule  sets  forth  as  of  the  Agreement Date an accurate and complete list of each lease (i) pursuant to which any real property (or  any  interest  in  real  property)  that  is  occupied  by  any  Acquired  Company  (other  than  the  Specified  Subsidiary) on the Agreement Date and involves premises measuring in excess of 2,000 square feet is  leased or licensed to or by any Acquired Company (other than the Specified Subsidiary); (ii) pursuant to  which any real property (or any interest in real property) that is occupied by the Specified Subsidiary on  the  Agreement  Date  and  involves  premises  measuring  in  excess  of  10,000  square  feet  is  leased  or  licensed to or by the Specified Subsidiary; or (iii) pursuant to which any real property (or any interest in  real property) that constitutes a “mother hub” is leased or licensed to or by any Acquired Company.   The  Company  has  Made  Available  to  Purchaser  accurate  and  complete  copies  of  all  such  Company  Leases. Each Company Lease is in good standing and in full force and effect.  An Acquired Company  has valid leasehold title to each Leased Real Property, in each case, free and clear of any Encumbrances  (other  than  Permitted  Encumbrances).   With  respect  to  each  Company  Lease:  (A)  all  rents  and  additional rents have been paid; (B) no waiver, indulgence or postponement of the lessee’s obligations  has been granted by the lessor; (C) the relevant Acquired Company has at all times complied with the  terms of each Company Lease; (D) there have been no events of default which, taken together, would  entitle  the  lessor  to  terminate  any  Company  Lease;  (E)  no  event  has  occurred  or  circumstance  or  condition exists which, with the giving of notice, the lapse of time or the happening of any other event  or condition, will or would reasonably be expected to become a default under any Company Lease on  the part of any Acquired Company; and (F) to the Knowledge of the Company, all of the covenants to  be  performed  by  any  other  party  under  any  Company  Lease  have  been  fully  performed.   All  of  the  structures,  facilities,  fixtures,  systems,  improvements  and  other  items  of  property  owned  by  any  Acquired Company and located on any Leased Real Property are suitable in all material respects for the  purpose  of  conducting  the  business  of  such  Acquired  Company  and  as  of  the  Agreement  Date,  no  Acquired Company has received any notice or other communication stating that the operation thereof  by  such  Acquired  Company  as  currently  conducted  is  in  violation  of  any  Company  Lease,  any  applicable building code, zoning ordinance, Contract or any other applicable Legal Requirement.  To  the Knowledge of the Company, no parcel of Leased Real Property is subject to any decree or order of a  Governmental  Entity  to  be  sold  or  is  being  condemned,  expropriated  or  otherwise  taken  by  any  Governmental  Entity  in  a  manner  which  will,  or  would  reasonably  be  expected  to,  deprive  any  Acquired Company of its leasehold interest therein.        2.10  Intellectual Property.               (a)  Scheduled IP.  Part 2.10(a) of the Disclosure Schedule accurately identifies each  of the following as of the Agreement Date:                    (i)   all Patents owned or filed by or on behalf of any Acquired Company, or       to which any Acquired Company has exclusive rights in any field or territory, including for each       Patent:  (A)  the  country  of  filing;  (B)  the  record  owner  and,  if  different,  the  legal  owner  and       beneficial  owner;  (C)  the issuance  or  filing  number;  (D)  the  date  of  issue  or  filing;  (E)  the       expiration date; (F) the title; and (G) an accurate status of prosecution and maintenance;                    (ii)  all registered or pending Trademarks owned or filed by or on behalf of,       any Acquired Company, or to which any Acquired Company has exclusive rights in any field or       territory, including for each Trademark: (A) the country of filing; (B) the record owner and, if                                        12                 

 

                     different,  the  legal  owner  and  beneficial  owner;  (C)  the  relevant  international  class;  (D) the       registration or application number; (E) the  date  of registration or filing; and (F) the  expiration       date;                    (iii) all material unregistered Trademarks owned by any Acquired Company,       or to which any Acquired Company has exclusive rights in any field or territory;                    (iv)  all  material  registered  copyrights  and  applications  for  registration  of       material copyrights owned or filed by or on behalf of any Acquired Company, or to which any       Acquired  Company  has  exclusive  rights  in  any  field  or  territory,  including  for  each  copyright       registration: (A) the country of filing; (B) the record owner and, if different, the legal owner and       beneficial owner; (C) the registration or filing number; (D) the date of registration or filing; and       (E) the expiration date;                    (v)   all internet domain names owned by, or registered to or by, any Acquired       Company or used in the business or operations of any Acquired Company; and                    (vi)  each  other  item  of  material  Registered  IP  in  which  any  Acquired       Company  has  or  purports  to  have  an  ownership  interest  of  any  nature  (whether  exclusively,       jointly with another Person or otherwise) or any exclusive rights in any field or territory.   Part 2.10(a) of the Disclosure Schedule also identifies any other Person that has an ownership interest in  any item of Registered IP or any unregistered Trademark, in each case that is identified or required to  be identified in Part 2.10(a) of the Disclosure Schedule, and the nature of such ownership interest.  The  Company  has  Made  Available  to  Purchaser  complete  and  accurate  copies  of  all  applications,  registrations, correspondence with any Governmental Entity, assignments and other material documents  related  to  each  item  of  Registered  IP  identified  or  required  to  be  identified  in Part 2.10(a) of  the  Disclosure Schedule.               (b)  Inbound Licenses.  Part 2.10(b) of the Disclosure Schedule accurately identifies  as of the Agreement Date: (i) each Contract pursuant to which any Acquired Company has been granted  any license under, in or to, or has otherwise received or acquired any right, title or interest (whether or  not  currently  exercisable  and  including  a  right  to  receive  a  license)  in,  or  any  embodiment  of,  any  Intellectual Property or Intellectual Property Right (other than (A) non-exclusive licenses to “off-the- shelf”  third  party  Computer  Software  that  is:  (1)  licensed  to  the  Acquired  Companies  on  generally  available, standard commercial terms for less than $100,000 per annum or $200,000 in the aggregate;  (2)  not  distributed  by  any  Acquired  Company, is  not  incorporated  or  embodied  in  any  Company  Product  that  is  distributed  to  third  parties;  and  (3)  not  otherwise  material  to  the  operation  of  any  Company Website; and (B) licenses to Open Source Code set forth in Part 2.10(n)(i) of the Disclosure  Schedule); and (ii) whether the licenses or rights granted to or received or acquired by the Acquired  Company  in  each  such  Contract  are  exclusive.  For  purposes  of  this Section 2.10, Section 2.11 and  Section 4.2, a covenant not to assert, standstill or other immunity under any Intellectual Property Right  will be deemed to be a license.                (c)  Outbound  Licenses.  The  Company  has  Made  Available  to  Purchaser  each  Contract pursuant to which any Person has, as of the Agreement Date, been granted any license under,  in  or  to,  or  otherwise  has  received  or  acquired  any  right,  title  or  interest  (whether  or  not  currently  exercisable and including a right to receive a license) in, or any embodiment of, any Company IP, other  than (A) non-exclusive licenses granted to Acquired Company customers on the standard form EULA  Made  Available  to  Purchaser  pursuant  to Section 2.10(e) and  (B)  non-exclusive,  end-user  licenses  (without  rights  of  further  redistribution  or  resale)  to  Company  Products  that  have  been  granted  by                                         13                 

 

                Acquired  Companies  to  Acquired  Company  customers  in  the  ordinary  course  of  business  under  Contracts with total compensation paid or payable to the Acquired Companies of less than $200,000.   No Acquired  Company is  bound by, and  no Company  IP is  subject to, any Contract containing any  covenant or other provision that in any material respect limits or restricts the ability of any Acquired  Company to use, exploit, assert or enforce (1) any Company IP owned or purported to be owned by any  Acquired Company anywhere in the world or (2) any Company IP exclusively licensed to an Acquired  Company with respect to which the Acquired Company has enforcement rights (collectively, “Owned  Company IP”).               (d)  Royalty  Obligations.  Part 2.10(d) of  the  Disclosure  Schedule contains  a  complete  and accurate list and  summary as of the  Agreement Date  of all royalties  and  other similar  amounts payable periodically by any Acquired Company to any other Person upon or for the use of any  Company IP.               (e)  Standard Form IP Agreements. The Company has Made Available to Purchaser a  complete  and  accurate  copy  of  each  standard  form  of  Company  IP  Contract  used  by  any  of  the  Acquired Companies as of the Agreement Date, including each standard form of: (i) end user license  agreement,  subscription  agreement,  or  terms  of  use  or  service  (each  a  “EULA”);  (ii)  employee  agreement containing any assignment or license of Intellectual Property or Intellectual Property Rights;  (iii) consulting or independent contractor agreement; (iv) confidentiality or nondisclosure agreement;  and  (v)  API  or  data  license  agreement.  Each  user  of  any  Company  Website  is  subject  to  valid  and  enforceable  web  site terms  of use in the  form Made  Available  to Purchaser pursuant to this Section  2.10(e).  No  Acquired  Company  has  distributed  to  any  third  party  any  Computer  Software  that  constitutes a  Company Product except pursuant to a valid and  enforceable  EULA in the form Made  Available to Purchaser pursuant to this Section 2.10(e).                 (f)  Ownership.   The Acquired  Companies  collectively  are  the  sole  and  exclusive  owner of all right, title and interest to and in the Company IP (other than Intellectual Property Rights  validly  licensed  to  any  of  the  Acquired  Companies,  as  identified  in Part 2.10(b) of  the  Disclosure  Schedule or expressly exempted from the disclosure requirements under Section 2.10(b)) free and clear  of  any  Encumbrances  (other  than  Permitted  Encumbrances  and  licenses  that  are  identified  in Part  2.10(c) of the Disclosure Schedule or are expressly exempted from the disclosure requirements under  Section 2.10(c)).  Without limiting the generality of the foregoing:                    (i)   all  documents  and  instruments  necessary  to  establish,  perfect  and       maintain  the  rights  of  any  Acquired  Company  in  any  Owned  Company  IP  have been  validly       executed, delivered and filed in a timely manner with the appropriate Governmental Entity (or       validly registered with the appropriate registrar in the case of domain names and the like);                    (ii)  each Company Employee and each other Person who is or was involved       in  the  creation  or  development  of  any  Company  Product  or  any  other  material  Intellectual       Property or material Intellectual Property Rights (each, an “IP Developer”) has signed a valid and       enforceable agreement containing (A) an irrevocable assignment to a Acquired Company of (or a       provision  of  similar  effect  vesting  in  an  Acquired  Company  and  guaranteeing  such  Acquired       Company’s full and absolute right, title and interest to) all Intellectual Property and Intellectual       Property  Rights  pertaining to  any  Company  IP  or  Company  Product  or  that  were  created  or       developed  by  such  IP  Developer  in  the  course  of  that  IP  Developer’s  work  for  any  Acquired       Company  and  (B)  confidentiality  provisions  protecting  the  Trade  Secrets  and other  non-public       elements of Company Products and such Intellectual Property and Intellectual Property Rights,       and no such IP Developer has any obligation to any Person (other than the Acquired Companies)       with respect to such Company Product, Intellectual Property or Intellectual Property Rights;                                        14                 

 

                                 (iii) each Acquired Company has taken all reasonable steps to maintain the       confidentiality  of  and  otherwise  protect  and  enforce  its  rights  in  all  Trade  Secrets  and  other       proprietary or confidential information pertaining to the Acquired Companies, the Company IP,       the Company Products, or the business of the Acquired Companies (including any confidential       information  owned  by  any  Person  to  whom  any  Acquired  Company  has  a  confidentiality       obligation);                    (iv)  the  Acquired  Companies  (A)  own,  license,  or  otherwise have  all       Intellectual  Property  and  Intellectual  Property  Rights  needed  to  conduct  the  business  of  the       Acquired  Companies  as  currently  conducted  and (B)  own,  license  or  otherwise  can  obtain  on       commercially reasonable terms all Intellectual Property and Intellectual Property Rights needed       to  conduct  the  business  of  the  Acquired  Companies  as currently  planned  by  the  Acquired       Companies  to  be  conducted,  and,  after  the  Closing,  each  Acquired  Company  will  continue  to       have  all  Intellectual  Property  and  Intellectual  Property  Rights  needed  to  conduct  each  of  the       businesses  of  the  Acquired  Companies  as  currently  conducted  and  currently  planned  by  the       Acquired Companies to be conducted;                    (v)   no  funding,  facilities,  or  personnel  of  any  Governmental  Entity  or  any       university  or  educational  institution  or  research  center  were  used,  directly  or  indirectly,  to       develop or create, in whole or in part, any Company IP, and no Governmental Entity, university,       or other educational institution or research center has any ownership in or rights under, in or to       any Company IP;                    (vi)  no  Acquired  Company  is  or  ever  was  a  member  or  promoter  of,  or  a       contributor to, any industry standards body or similar organization that requires or obligates any       Acquired Company to grant or offer to any other Person any license or right under, in or to any       Company IP; and                    (vii) no director, officer, executive manager or IP Developer of any Acquired       Company is (A) bound by or otherwise subject to any Contract restricting in any material respect       that  director,  officer, executive  manager or  IP  Developer  from  performing  such  director’s,       officer’s, executive manager’s or IP Developer’s duties for any Acquired Company, (B) in breach       of  any  Contract  with  any  former  employer  or  other  Person  concerning  Intellectual  Property       Rights or confidentiality due to such director’s, officer’s, executive manager’s or IP Developer’s       activities as a director, officer, executive manager or IP Developer of an Acquired Company, (C)       to the Knowledge of the Company subject to any Contract with any other Person that requires       such officer, executive manager or other IP Developer to assign any interest in inventions or other       Intellectual Property or Intellectual Property Rights  or (D) to the Knowledge  of the Company,       subject to any Contract with any other Person that requires such officer, executive manager or IP       Developer  to  keep  confidential  any  Trade  Secrets,  proprietary  data,  customer  lists  or  other       business  or  technical  information  that  such  officer, executive  manager or  IP  Developer  has       disclosed to any Acquired Company or has used in such officer’s, executive manager’s or other       IP  Developer’s  work  for  any  Acquired  Company  (other  than  standard  confidentiality  and       nondisclosure agreements entered into in the ordinary course of business as part of such Person’s       work for an Acquired Company).               (g)  Valid and Enforceable. All Owned Company IP that is Registered IP is valid and  subsisting  and,  except  with  respect  to  pending  applications  for  Owned  Company  IP,  enforceable.   Without limiting the generality of the foregoing:                                         15                 

 

                                 (i)   no Trademark owned or for which registration has been applied for by an       Acquired  Company  conflicts  or  interferes  with  any  Trademark  owned,  used  or  for  which       registration  has  been  applied  for  by  any  other  Person  in  the  applicable  jurisdiction,  and each       Acquired  Company  has  taken  reasonable  steps  to  police  the  use  of  its  Trademarks  in  the       jurisdictions  where  such  Acquired  Company  has  registered,  or  is  currently  registering  such       Trademark;                    (ii)  no interference, opposition, cancellation, reissue, review, reexamination       or  other  Legal  Proceeding  is  or  has  been  pending  or,  to  the  Knowledge  of  the  Company,       threatened, in which the ownership, scope, validity or enforceability of any Owned Company IP       is being, has been, or would reasonably be expected to be contested or challenged, and, to the       Knowledge of the Company, there is no basis for a claim that any Owned Company IP is invalid       or unenforceable;                    (iii) all necessary registration, maintenance and renewal fees in respect of the       Company  IP  owned  by  any  Acquired  Company  that  is  Registered  IP  have  been  paid  and  all       necessary documents and certificates have been filed with the relevant Governmental Entity for       the purpose of maintaining such Company IP; and                    (iv)  no  act  has  been  done,  or  omitted  to  be  done,  by  any  of  the  Acquired       Companies, as a result of which (A) any Owned Company IP has been or would reasonably be       expected to be, impaired in any material respect or placed in the public domain or (B) any Person       has been  or would reasonably be  expected to be  entitled to cancel, forfeit, modify or consider       abandoned, any Company IP.               (h)  No  Third  Party  Infringement  of  Company  IP.   To  the  Knowledge  of  the  Company, as of the Agreement Date, (i) no Person has infringed, misappropriated or otherwise violated,  and no Person is currently infringing, misappropriating or otherwise violating, any Company IP, nor has  any Acquired Company acquiesced in the unauthorized use by any Person of any Company IP and (ii)  there are no circumstances likely to give rise to any of the foregoing. The Company has Made Available  to Purchaser a complete and accurate copy of each letter or other written or electronic communication  or correspondence that has been sent by or to any Acquired Company regarding any actual, alleged or  suspected infringement, misappropriation or other violation of any Company IP as of the Agreement  Date.  Part 2.10(h) of  the  Disclosure  Schedule  accurately  provides  a  brief  description  of  the  current  status of the matter referred to in each such letter, communication or correspondence Made Available or  required to be Made Available under this Section 2.10(h).               (i)  Effects of This Transaction.  Neither the execution, delivery or performance of  this Agreement or any other Transaction Document nor the consummation of any of the Contemplated  Transactions will, with or without notice or lapse of time, result in, or give any other Person the right or  option to cause or declare: (i) a loss of, or Encumbrance on, any Company IP; (ii) a breach of or default  under  any  Company  IP  Contract;  (iii)  the  release,  disclosure  or  delivery  of  any  Company  IP  or  Company Product by or to any escrow agent or other Person; (iv) the grant, assignment or transfer to  any other Person of any license or other right or interest under, in or to any of the Company IP; or (v)  by the terms of any Company Contract, a reduction of any royalties, revenue sharing, or other payments  any of the Acquired Companies would otherwise be entitled to with respect to any Company IP.               (j)  No  Infringement  of  Third  Party  IP  Rights.  No  Acquired  Company  has  ever  infringed (directly, contributorily, by inducement or otherwise), misappropriated or otherwise violated  or made unlawful use of any Intellectual Property or Intellectual Property Right of any other Person.   No  Company  Software  or  Company  Product  infringes,  violates  or  makes  unlawful  use  of  any                                        16                 

 

    Intellectual  Property  Right  of,  or  contains  any  Intellectual  Property  misappropriated  from,  any  other   Person.  Without limiting the generality of the foregoing:                     (i)   no infringement, misappropriation or similar claim or Legal Proceeding        is pending or, to the Knowledge of the Company, threatened against any Acquired Company or        against any other Person who is or may be entitled to be indemnified, defended, held harmless or        reimbursed by any Acquired Company with respect to any such claim or Legal Proceeding, and        no  Acquired  Company  has  ever  received  any written  or,  to  the  Knowledge  of  the  Company,        notice or other written communication requesting, claiming, or demanding any of the foregoing        with respect to any such claim or Legal Proceeding and, to the Knowledge of the Company, there        are no circumstances likely to give rise to any of the foregoing; and                     (ii)  no  Acquired  Company  has  ever  received  any  written  or,  to  the        Knowledge of the Company, notice or other written communication relating to any actual, alleged        or suspected infringement, misappropriation, violation or unlawful use by any Company Product        or Company Software, or by any Acquired Company, of any Intellectual Property or Intellectual        Property  Rights  of  another  Person,  including  any  letter  or  other  written  communication        suggesting or offering that any Acquired Company obtain a license to any Intellectual Property        Rights of another Person.   Section 2.10(j)(ii) specifically excludes notices received and handled by Acquired Companies under the  policy  described  below.   The  Acquired  Companies  have  established  and  maintained  a  policy  for  (x)  receipt of notices of potential infringements, misappropriations or violations of the rights of third parties  (including Intellectual Property Rights) due to information included in listings on the Company Websites  or  Company  Software  or  due  to  merchandise,  goods,  or  other  items  included  in  such  listings  or  sold  through such Company Websites or Company Software (whether by or through any Acquired Company  or any third party) and (y) take-down from the Company Websites and Company Software of listings and  merchandise,  goods,  or  other  items  complained  about  in  such  notices.  The  Acquired  Companies  use  commercially reasonable efforts to comply with such policy in a prompt and timely manner. Except as set  forth  in Part 2.10(j) of  the  Disclosure  Schedule,  no  claim  or  Legal  Proceeding  is  pending,  or  to  the  Knowledge of the Company, has been threatened, against any Acquired Company arising from or related  to  any  listing  on  any  Company  Website  or  Company  Software,  any  merchandise,  good  or  other  item  included in any such listing or sold through any Company Website or Company Software, or any failure  by any Acquired Company to comply with such policy.                (k)  No Harmful Code.  None of the Computer Software (including websites, smart   phone  or  tablet  applications,  HTML  code  and  firmware)  owned,  developed  (or  currently  being   developed),  used,  marketed,  distributed,  licensed,  made  available  or  sold  by  an  Acquired  Company   (excluding any “off-the-shelf” third party Computer Software that is licensed to an Acquired Company   on generally available, standard commercial terms (including Open Source Code), is not distributed by   an  Acquired  Company,  is  not  incorporated  into  or  made  a  part  of  any  product or  service  of  any   Acquired  Company  and  is  not  otherwise  material  to  the  business  of  the  Acquired  Companies)   (collectively,  “Company  Software”)  contains  any  “back  door,”  “drop  dead  device,”  “malware,”   “ransomware,”  “time  bomb,”  “Trojan  horse,”  “virus,”  or  “worm”  (as  such  terms  are  commonly   understood  in  the  software  industry)  or  any  other  code  designed  or  intended  to  have  any  of  the   following functions: (i) disrupting, disabling, harming or otherwise impeding in any material respect the   operation of, or providing unauthorized  access to, a computer system or network or other device on   which such code is stored or installed; or (ii) damaging, destroying, encrypting or denying access to any   data or file without the user’s consent.                                          17    

 

                            (l)  Bugs.  None of the Company Software: (i) contains any bug, defect, or error that  adversely  affects,  in  any  material  respect,  the  use,  functionality,  security,  or  performance  of  such  Company  Software  or any product or system containing or used in conjunction with such Company  Software;  or  (ii)  fails  to  comply  in  any  material  respect  with  any  applicable  warranty  or  other  contractual commitment relating to the use, functionality, or performance of such Company Software or  any product or system containing or used in conjunction with such Company Software.                (m)  Source  Code.  The  source  code  for  all  Company  Software  contains  clear  and  accurate  annotations  and  programmer’s  comments,  and  otherwise  has  been  documented  in  a  professional manner that is both: (i) consistent with customary code annotation conventions and best  practices  in  the  software  industry;  and  (ii)  sufficient  to  independently  enable  a  programmer  of  reasonable  skill  and  competence  in  a  similar  industry  to  understand,  analyze,  and  interpret  program  logic, correct errors and improve, enhance, modify and support the Company Software.  No source code  for any Company Software has been delivered, licensed or made available to any escrow agent or other  Person who is not, as of the Agreement Date, an employee or contractor of an Acquired Company.  No  Acquired  Company has any duty or obligation (whether present, contingent or otherwise) to deliver,  license  or  make  available  the  source  code  for  any  Company  Software  to  any  escrow  agent  or  other  Person.  No event has occurred, and no circumstance or condition exists, that (with or without notice or  lapse of time) will, or would reasonably be expected to, result in the delivery, license or disclosure of  the source code for any Company Software to any other Person.               (n)  Use of Open Source Code.                    (i)   The Company has Made Available to Purchaser a schedule that identifies       and  describes,  as  of  the  Agreement  Date:  (A)  the  licenses  for  Open  Source  Code  that  are       approved for use by IP Developers, which constitute the only licenses for Open Source Code used       by the Acquired Companies (including in any mobile applications not covered by clause “(B)”       below);  and  (B)  (1)  each  item  of  Open  Source  Code  that  is  contained  in,  distributed  or  made       available with any Company mobile application; (2) the version or versions of each such items of       Open  Source  Code  identified  or  required  to  be  identified  under Section 2.10(n)(i)(B);  (3)  the       applicable license terms for each such item of Open Source Code; and (4) the Company mobile       application to which each such item of Open Source Code relates.                     (ii)  Each  Acquired  Company’s  use,  marketing,  distribution,  licensing,  and       sale  of Company Software  does  not  violate  any  license  terms  applicable  to  any  item  of  Open       Source  Code,  and each  Acquired  Company  has  all  rights  in  each  item  of  Open  Source  Code       identified in the schedule Made Available to Purchaser pursuant to Section 2.10(n)(i) as needed       for  the Acquired  Companies to  conduct  the  business  of  the Acquired  Companies as  currently       conducted and currently planned by the Acquired Companies to be conducted, without violation       of any license terms pertaining to such Open Source Code.                    (iii) No Company Software contains, is distributed or made available with or       is derived from Open Source Code that is licensed under any terms that: (A) impose or purport to       impose a requirement or condition that any Acquired Company grant a license under or refrain       from asserting or enforcing any of its Intellectual Property Rights, or that any Company Software       or  part  thereof  be  (1)  disclosed  or  distributed  in  source  code  form,  (2)  licensed  for  making       modifications or derivative works, or (3) redistributable at no charge; or (B) impose or purport to       impose  any  other  material  limitation,  restriction,  or  condition  on  the  right  or  ability  of  any       Acquired Company to use or distribute any Company Software.                                         18                 

 

                            (o)  Privacy  Policies.   Each  Company  Privacy  Policy:  (i)  is  incorporated  into  the  applicable  Acquired  Company’s  EULA;  (ii)  states  that  User  Data  may  be  transferred  in  a  merger,  acquisition, reorganization, or sale of assets; and (iii) states that sensitive Personal Data is not collected  automatically by any Company Website or any Company Software.  Each Acquired Company requires,  and has required, each user of any Company Website or Company Software to agree and consent to all  applicable  Company  Privacy  Policies.   Each  Acquired  Company  and  the  Company  Software  has  complied  at  all  times  with  all  applicable  Company  Privacy  Policies  and  with  all  applicable  Privacy  Laws  pertaining  to  the  Processing  of  data,  User  Data,  Personal  Data,  data  security,  and  spyware.   Without limiting the foregoing, each Acquired Company has Processed all User Data pursuant to, and  in accordance with the terms of, valid and enforceable Company Privacy Policies and applicable Legal  Requirements.  No Acquired Company has received notice from, nor been subject to, enquiries by any  Governmental Entity regarding non-compliance or alleged non-compliance by such Acquired Company  with any Privacy Laws.  No individual has alleged that an Acquired Company has failed to comply with  any Privacy Laws, or claimed compensation from an Acquired Company for alleged failure to comply  with  any  Privacy  Laws  (including  for  unauthorized  disclosure  of  Personal  Data).   No  Acquired  Company has obtained, collected or used any User Data or Personal Data, or possessed any data that is  not publicly available, in violation or breach of any Company Privacy Policy, Company Contract, or  applicable Legal Requirement.  Neither the execution, delivery or performance of this Agreement or  any  of  the  other  Transaction  Documents  nor  the  consummation  of  any  of  the  Contemplated  Transactions will result in any violation of any Company Privacy Policy, Company Contract, or any  Privacy Law.                 (p)  Ownership  and  Use  of  Data.   All  Company  Data  is  owned  by  the  Acquired  Companies, free and clear of any Encumbrances (other than Permitted Encumbrances).  The Acquired  Companies have all necessary and required rights to use, reproduce, modify, create derivative works of,  license, sublicense, distribute and otherwise exploit the data contained in the Company Data, including  in connection with the operation of the business of each Acquired Company.  The Acquired Companies  have complied with all applicable Legal Requirements, Contracts, and Company Privacy Policies in the  Processing and other exploitation of Company Data.               (q)  Information  Technology.   All  Company  IT Systems  have  been  properly  maintained by technically competent personnel, in accordance with standards set by the manufacturers  or  otherwise  in  accordance  with  standards  prudent  in  the  industry,  to  ensure  proper  operation,  monitoring and use.  The Company IT Systems are in good working condition to effectively perform all  information technology operations necessary to conduct the business of the Acquired Companies.  No  Acquired  Company  has  experienced  since  March  31,  2015  any  material  disruption  to,  or  material  interruption  in,  the  conduct  of  business  attributable  to  a  defect,  bug,  breakdown  or  other  failure  or  deficiency of the  Company  IT Systems.  Each of the  Acquired  Companies  have  taken  commercially  reasonable measures to provide for the back-up and recovery of the data and information necessary to  the conduct of the business  of such Acquired  Company (including such data and information that is  stored on magnetic or optical media in the ordinary course) without material disruption to, or material  interruption in, the conduct of the business of such Acquired Company.  No Acquired Company is in  material breach  of any Contract related to any Company IT System, nor has any notice  been served  alleging any such breach or seeking to terminate the foregoing nor is any Acquired Company aware of  any event that, with the passage of time or the giving of notice, or both, would constitute a breach of  any Company Contract related to any Company IT System.               (r)  Information Security.  Each of the Acquired Companies have implemented and is  in compliance with a written information security program that: (i) includes administrative, technical  and physical safeguards designed to safeguard the security, confidentiality, and integrity of transactions  and Company Data; (ii) is designed to protect against unauthorized access to the Company IT Systems                                        19                 

 

                and Company Data and the systems of any third party service providers that have access to Company  Data  or  Company  IT  Systems;  and  (iii)  complies  with  applicable  Legal  Requirements  and  meets  generally-accepted standards in the industry of such Acquired  Company.  Since  March 31, 2015, no  Acquired  Company  has  suffered  a  security  breach  with  respect  to  any  of  the  Company  Data  or  Company IT Systems. No breach or violation of any security program described above has occurred or,  to the Knowledge of the Company, is threatened, and there has been no unauthorized or illegal use of or  access to any Company Data. No Acquired Company has notified or has been required to notify any  Person of any information security breach involving Personal Data. Each of the Acquired Companies is  in full compliance with all information security control and audit requirements as provided by credit or  payment  card  companies  for  all  payment  card  collection  and  processing  activities.  With  respect  to  transactions processed in any way (including any processing, storing or communication of transaction  data or payment card data) by any Acquired Company for or on behalf of any Person, the Company is  and  at  all  times  has  been  in  compliance  in  all  material  respects  with  Level  3  of  the  Payment  Card  Industry Data Security Standard, to the extent required, as it may be amended from time to time (the  “PCI-DSS”).  Any software application or online service that is intended to be used to process financial  or credit card transactions (including any processing, storing or communication of transaction data or  credit card data) and is provided by any Acquired Company to any Person, is in compliance with the  PCI-DSS.               (s)  Personal Data.  Each Company Database that is required to be registered under  any applicable Legal Requirement has been duly registered and maintained.  No breach or violation of  any such security policy has occurred or, to the Knowledge of the Company, is threatened, and there  has been no unauthorized or illegal use of or access to any of the  data or information in any of the  Company  Databases.   Each  Acquired  Company  has  acquired,  Processed,  and  exploited  all  Personal  Data pursuant to, and in accordance with the terms of, valid and enforceable Contracts.  No Acquired  Company  has  obtained  or  Processed  any  Personal  Data,  or  possessed  any  data  that  is  not  publicly  available, in violation or breach of any Company Contract or applicable Legal Requirement.               (t)  Use of Name; Trademark Rights. The Acquired Companies (i) are the exclusive  owner  of  all  Trademark  rights  in  the  Flipkart  name,  Flipkart  stylized  marks  and  Flipkart  logos  (collectively, “Flipkart Marks”) and (ii) have the exclusive right to use the Flipkart Marks (including  the  www.Flipkart.com  domain  name  and  other  domain  names  used  by  any  Acquired  Company  that  include Flipkart) for the operation of the Acquired Companies’ businesses and any similar or related  businesses.  No  Flipkart  Mark  conflicts  or  interferes  with  any  Trademark  owned,  used  or  for  which  registration has been applied for by any other Person in each jurisdiction where an Acquired Company  uses, has registered or is currently registering a Flipkart Mark, and each Acquired Company has taken  reasonable steps to police the use of the Flipkart Marks. Each Flipkart Mark that is Registered IP is and  at all times has  been in compliance  with all Legal Requirements and all filings, payments  and other  actions required to be made or taken to maintain such Flipkart Mark in full force and effect have been  made  and  taken  by  the  applicable  deadline,  in  each  case,  in  the  jurisdictions  where  such  Acquired  Company uses, has registered, or is currently registering such Flipkart Mark.        2.11  Contracts.               (a)  List  of  Contracts.  Part 2.11(a) of  the  Disclosure  Schedule  sets  forth  as  of  the  Agreement Date  an  accurate  and complete list (grouped  according to the  categories  described in the  subsections below) of all Company Contracts of the following nature or that contain provisions of the  following nature:                    (i)   each Company Contract (A) relating to the voting or any other right or       obligation  of  a shareholder of  any  Acquired  Company  or  (B)  affecting  or  dealing  with any                                        20                 

 

                     security or  membership  interest of  any  Acquired  Company,  including  any  restricted  share       agreement  or  escrow  agreement  (but  excluding  any  stock  option  agreement  on  any  Acquired       Company’s standard form Made Available to Purchaser);                    (ii)  each  Company  Contract (A)  relating  to  any  merger,  consolidation,       reorganization,  amalgamation,  scheme  or  plan  of  arrangement,  share  purchase  or  any  similar       transaction  involving  any  Acquired  Company,  (B)  relating  to  the  acquisition,  sale,  spin-off  or       outsourcing of any Subsidiary or business unit of any Acquired Company or (C) involving the       acquisition, issuance or transfer of any security or membership interest of any Entity, other than       an Acquired Company;                    (iii) each Company Contract for the sale of any of the material assets of any       Acquired Company, other than in the ordinary course of business, or for the grant to any Person       of any preferential right to purchase any of the material assets of any Acquired Company;                    (iv)  each Company Contract relating to the hosting of any Company Website       or the operation of any platform of any Acquired Company;                    (v)   each Company Contract creating, providing for, requiring, governing or       otherwise relating to any partnership, joint venture, strategic alliance or any sharing of revenues,       profits, losses, costs or liabilities or any similar arrangement;                     (vi)  each  Company  Contract  imposing  any  restriction  on  any  Acquired       Company’s ability to: (A) compete with any other Person; (B) acquire any product or other asset       or any service from any other Person, to sell any product or other asset to or perform any service       for any other Person or to transact business or deal in any other manner with any other Person;       (C)  develop  or  distribute  any  Owned  Company  IP;  (D)  use  or  otherwise  exploit  any  Owned       Company IP; or (E) manufacture any product;                     (vii) each Company Contract: (A) granting any exclusive or preferential right       to license, market, sell or deliver any of the Company Products or Company IP; (B) containing       any “most favored nation” or “most favored customer” or similar provision in favor of any other       Person;  or  (C)  otherwise  contemplating  an  exclusive  or  preferential  relationship  between  any       Acquired  Company  and  any  other  Person,  including  with  respect  to  placement  of  content  or       advertising on any Company Website or Company Software;                     (viii) each  Company  Contract,  excluding  purchase  orders  for  goods  and       services issued in the ordinary course of business, that contemplates or involves: (A) the payment       or delivery of cash or other consideration by any Acquired Company in an amount in excess of       $10,000,000 in the aggregate when taken together with all other Company Contracts involving       such Person or such Person’s Affiliates between April 1, 2017 and March 31, 2018; or (B) the       performance  of  services  involving  the  payment  or  delivery  of  cash  or  other  consideration  in       excess of $10,000,000 in the aggregate when taken together with all other Company Contracts       involving such Person or such Person’s Affiliates between April 1, 2017 and March 31, 2018; and                     (ix)  any  other  Company  Contract,  the  termination  of which  will  or  would       reasonably  be  expected  to  have  a  material  adverse  effect  on  the  business,  condition,  assets,       liabilities, operations or results of operations of the Acquired Companies, taken as a whole.               (b)  Delivery  of  Contracts;  Etc.   The  Company  has  Made Available  to  Purchaser  accurate  and  complete  copies  of  all  written  Contracts  identified,  or  required  to  be  identified,  in                                         21                 

 

                Part 2.11(a) of the Disclosure Schedule, including all amendments thereto.  All Material Contracts are  in  full  force  and  effect,  and  are  valid  and  enforceable  by  the  applicable  Acquired  Company  in  accordance with their terms, subject only to the Enforceability Exception.               (c)  No Breach.  No Acquired Company, and, to the Knowledge of the Company, no  other party, is in default under or in breach of any Material Contract.  No undisputed payment or other  obligation of any Acquired Company is more than 30 days past due under any Material Contract.  No  event has occurred, and no circumstance or condition exists, that, with notice, the passage of time or  both, could reasonably be expected to:  (i) constitute a default under or result in a violation or breach of  any of the provisions of any Material Contract; (ii) give any Person the right to declare a default or  exercise  any  remedy  under  any  Material  Contract;  (iii)  give  any  Person  the  right  to  accelerate  the  maturity or performance of any Material Contract; or (iv) give any Person the right to cancel, terminate  or modify any Material Contract. No party to any Material Contract has validly exercised (or, as of the  Agreement Date, purported or threatened to exercise) any termination right with respect to any Material  Contract other than an exercise of a termination right at the end of the term of such Material Contract  that  did  not  arise  out of,  or  relate  to, any  breach of or  default  under  such  Material  Contract  by  any  Acquired Company. No Acquired Company has received any notice of a default, an alleged failure to  perform or an offset or counterclaim with respect to any Material Contract (which allegations, in the  case  of  notices  received  after  the  Agreement  Date,  are  valid)  that  has  not  been  fully  remedied  and  withdrawn. Each Material Contract that is required to be stamped and registered under any applicable  Legal Requirement has been duly stamped and registered in compliance with such Legal Requirement.               (d)  No Renegotiation.  No Person has a contractual right pursuant to the terms of any  Material Contract  to  renegotiate  any  amount  paid  or  payable  to  any  Acquired  Company  under  any  Material Contract  or  any  other  material  term  or  provision  of  any Material Contract  and the  consummation of the Contemplated Transactions will not affect the enforceability against any Person of  any Material Contract.               (e)  Standard  Form  Customer  Contracts.  The  Company  has  Made  Available  to  Purchaser  a  complete  and  accurate  copy  of  each  standard  form  of  customer  Contract  used  by  any  Acquired Company.                 (f)  Outstanding  Indemnities.   No  Acquired  Company  has,  or  will  have,  any  indemnification obligation under, or arising out of, the UBS SPA.         2.12  Compliance with Legal Requirements.               (a)  Compliance.   Each  Acquired  Company  is,  and  has  at  all  times  been,  in  compliance  in  all  material  respects  with  each  Legal  Requirement  that  is  applicable  to  it  or  to  the  conduct of its businesses or the ownership of its assets.  To the Knowledge of the Company, no event  has occurred, and no condition or circumstance exists, that will (with or without notice or lapse of time)  constitute or result in a violation by any Acquired Company of, or a failure on the part of any Acquired  Company to comply with, any Legal Requirement in any material respect.  No Acquired Company has  received,  on  or  prior  to  the  Agreement  Date,  any  written  notice  or  other  communication  or,  to  the  Knowledge of the Company, any non-written notice or other communication, from any Governmental  Entity regarding any actual or possible violation of, or failure to comply with, any Legal Requirement  in any material respect.                (b)  FDI.  Without limiting the generality of Section 2.12(a), the Acquired Companies  are qualified to, and the businesses of the Acquired Companies in India are eligible to, receive foreign  investment  under  the  “automatic  route,”  as  that  term  is  used  under  the  (Indian)  Foreign  Exchange                                         22                 

 

                Management  Act,  1999  and  the  rules  made  thereunder,  as  amended  from  time  to  time.  The  foreign  investment  in  each  of  the  Acquired  Companies  has  been  received  in  compliance  with  all  applicable  Legal Requirements. Each of the Acquired Companies (i) is and has at all times been in compliance  with all applicable Indian Legal Requirements relating to foreign exchange and investment in or outside  India and (ii) has made all filings with the applicable Governmental Entity required under such Legal  Requirements. No Acquired Company has received any notice or other communication from any Person  regarding any actual or possible violation of, or failure to comply with, any Indian Legal Requirement  relating  to  foreign  exchange  or  investment  in  or  outside  India.  Each  Acquired  Company  is  and  has  always been in compliance with all conditions and requirements that it is required to comply with under  the Foreign Exchange Management (Transfer or Issue of Security by a person resident outside India)  Regulations, 2000 or Foreign Exchange Management (Transfer or Issue of Security by a person resident  outside  India) Regulations, 2017 (including sector specific conditions  prescribed therein for carrying  out of ‘Cash and Carry Wholesale Trading/ Wholesale Trading’ activities and ‘e-commerce’ activities)  as  applicable  to  them.  Without  limiting  the  generality  of  the  foregoing,  none  of  the  Acquired  Companies: (A) has or at any time had any inventory; (B) has at any time failed to comply with the  25% Rule; (C) directly sells or at any time has sold any goods or services to consumers; or (D) has at  any time directly or indirectly influenced the sale prices of goods, in the case of each of clauses “(A),”  “(B),” “(C)” and “(D),” in a manner that has resulted in, or that will or would reasonably be expected to  result in, a breach or violation of, or a failure to comply with, any provision of the (Indian) Foreign  Exchange  Management  Act,  1999  or  any  rule,  regulation  or  circular  promulgated  thereunder  or  any  similar Legal Requirement applicable to such Acquired Company.                 (c)  Export Controls.  Without limiting the generality of Section 2.12(a), none of the  Acquired Companies has violated any applicable Legal Requirement regulating exports, imports or re- exports to or from any country, including the export or re-export of goods, services or technical data  from  such  country,  or  imposing  trade  embargoes  or  economic  sanctions  against  other  countries  or  Persons (such Legal Requirements being collectively referred to as “Export Controls”).               (d)  Anti-Money Laundering.  Each Acquired Company is and has at all times been in  material  compliance  with  all  applicable  anti-money  laundering  Legal  Requirements  and  anti-money  laundering-related  government  guidance  (such  Legal  Requirements  and  government  guidance  being  collectively referred to as “AML Laws”), including any AML Law of the Republic of India or any other  jurisdiction where the nature of such Acquired Company’s business or operations or the ownership of  its assets requires such compliance. There is no pending investigation, inquiry or enforcement action  against any Acquired Company or any of its officers, directors or employees relating to any violation or  potential violation of any AML Law related to the business of any Acquired Company, and there is no  pending  investigation,  prosecution  or  forfeiture  action  against  any  Acquired  Company  or  any  of  its  officers, directors or employees for any violation of any applicable criminal provision of any AML Law  related to the business of any Acquired Company.               (e)  Anti-Corruption and  Anti-Bribery.  No Acquired  Company or officer, director,  executive manager or employee of any Acquired Company, and no agent, Representative or consultant  of any Acquired Company acting on behalf of such Acquired Company, has, directly or indirectly, in  connection with the conduct of any business of any Acquired Company:                    (i)   made, offered or promised to make or offer any payment, loan or transfer       of anything of value, including any reward, advantage or benefit of any kind, to or for the benefit       of any Person for the purpose of corruptly: (A) influencing any act or decision of such Person;       (B) inducing such Person to do or omit to do any act in violation of a lawful duty; (C) obtaining       or retaining business for or with any Person; or (D) otherwise securing any improper advantage;                                         23                 

 

                                 (ii)  paid,  offered  or  promised  to  pay  or  offer  any  bribe,  payoff,  influence       payment, kickback, unlawful rebate, or other similar unlawful payment of any nature;                    (iii) made, offered or promised to make or offer any unlawful contributions,       gifts, entertainment or other unlawful expenditures;                    (iv)  taken any action in furtherance of a payment, offer, promise to pay, or       authorization or ratification of a payment of any gift, money or anything of value to any Person or       Entity  while  knowing,  or  having  reasonable  grounds  to  believe,  that  all  or  a  portion  of  that       payment  will  be  passed  on  to  a  Person  to  obtain  or  retain  business  or  to  secure  an  improper       advantage in violation of any Anti-Corruption Law;                    (v)   been  party  to  the  use  of  the  assets  of any  Acquired  Company  for  the       establishment  of  any  unlawful  or  off-book  fund  or  monies  or  other  assets  or  making  of  any       unlawful or unauthorized payment;                    (vi)  made  or  caused  to  be  made  false  or  misleading  statements  to,  or  has       attempted to coerce or fraudulently influence, an accountant in connection with any audit, review       or examination of the financial statements of any Acquired Company;                    (vii) obtained  any  Governmental  Authorizations  or  land  use  rights  through       conduct amounting to a violation of any Anti-Corruption Law; or                    (viii) taken any act or engaged in any omission that will or would reasonably       be expected to cause any Acquired Company to be in violation of any Anti-Corruption Law.               (f)  Government Anti-Corruption Enforcement.  None of the Acquired Companies or  any  of  their  officers,  directors,  executive  managers  or  employees,  and  no  agent,  Representative  or  consultant of any Acquired Company acting on behalf of any of the Acquired Companies:                    (i)   has  been  convicted  by  a  Governmental  Entity  of  violating  any  Anti-      Corruption Law;                    (ii)  has Knowledge,  as  of  the  Agreement  Date,  of  any  investigation  (or       threatened  investigation)  of,  or  request  for  information  from,  any  Acquired  Company  by  any       Governmental Entity regarding a violation or potential violation of any Anti-Corruption Law;                     (iii) has received any allegation related to any violation or potential violation       of any Anti-Corruption Law by any Acquired Company or has any information that any Person       has made any payment in violation of any Anti-Corruption Law on behalf of or for the benefit of       any Acquired Company; or                    (iv)  has  conducted  any  internal  investigation  based  on  any  violation,  or       suspected violation, of any Anti-Corruption Law.               (g)  Former  Government  Officials.  None  of  the  officers,  directors,  employees,  shareholders, promoters or agents of any Acquired Company is, or since March 31, 2013 has been, a  Government Official.               (h)  Beneficial Interest.  To the Knowledge of the Company, no Government Official  owns  or  will  receive  an  interest,  whether  direct  or  indirect,  legal  or  beneficial,  in  any  Acquired                                         24                 

 

                Company,  or  has  or  will  receive  any  legal  or  beneficial  interest  not  mandated  by  applicable  Legal  Requirements in any payment made pursuant to this Agreement or the Share Purchase Agreement.               (i)  Anti-Corruption  and  Anti-Bribery  Policies.   Each  Acquired  Company has:  (i)  implemented adequate procedures (required to be followed by it and by each of its agents, consultants  and  other  Representatives) to  ensure  compliance  with  all  applicable  Anti-Corruption  Laws;  and  (ii)  instituted and maintain policies and procedures designed to ensure, and that are reasonably expected to  continue  to  ensure,  continued  compliance  (by  it  and  by  each  of  its  agents,  consultants  and  other  Representatives) therewith.               (j)  Singapore Takeover Code.  None of the Acquired Companies (i) is subject to the  Singapore Takeover Code or (ii) is a “public company” within the meaning of the Singapore Takeover  Code. The execution and delivery of this Agreement and each other Transaction Document do not, and  the consummation of the Share  Issuance, the  Secondary Share  Purchase and the  other Contemplated  Transactions  and the  performance  of  this  Agreement,  the  Share  Purchase  Agreement  and  each  other  Transaction Document will not, conflict with or violate any provision or requirement of the Singapore  Takeover Code.        2.13  Governmental Authorizations; No Subsidies.               (a)  Governmental  Authorizations.  Each  Acquired  Company  holds,  to  the  extent  required by applicable Legal Requirements, all Governmental Authorizations from, and has made all  declarations and filings  with, all Governmental Entities for the  operation of its business as currently  conducted and as it is currently planned by such Acquired Company to be conducted, including the sale,  transport, export, import or shipment of any items or materials (whether in tangible form or otherwise)  to any jurisdiction.  As of the Agreement Date, no suspension or cancellation of any such Governmental  Authorization  is  pending  or,  to  the  Knowledge  of  the  Company,  has  been  threatened.   Each  such  Governmental Authorization is valid and in full force and effect, and each Acquired Company is and  always has been in compliance with the terms, conditions and requirements of each such Governmental  Authorization.  Part 2.13(a) of the Disclosure Schedule provides, as of the Agreement Date, an accurate  and  complete  list  of  all  Governmental  Authorizations  held  by  each  Acquired  Company,  and  the  Company  has  Made  Available  to  Purchaser  accurate  and complete  copies  of  all  such  Governmental  Authorizations.  No Acquired Company has on or prior to the Agreement Date received any written  notice or other communication or, to the Knowledge of the Company, any non-written notice or other  communication,  from any  Governmental  Entity  regarding:  (i)  any  actual  or  possible  violation  of  or  failure to comply with any term, condition or requirement of any Governmental Authorization; or (ii)  any actual or possible revocation, withdrawal, suspension, cancellation, termination or modification of  any Governmental Authorization.               (b)  No Subsidies.  No Acquired Company has ever received, applied for or used any  public grant, allowance, aid or other subsidy in any form.        2.14  Tax Matters.                 (a)  Tax Returns and Payments.  All Tax Returns required to be filed by or on behalf  of the Acquired Companies with any Governmental Entity have been timely and properly filed (within  any applicable extension periods) and are accurate and complete in all material respects.  No Acquired  Company has requested an extension of time  within which to file  any Tax  Return that has not been  filed.  All Taxes of the Acquired Companies that are due and payable have been timely and properly  paid.  The Company has Made Available to Purchaser accurate and complete copies of all Tax Returns  filed by the Acquired Companies remaining open under the applicable statute of limitations as of the                                         25                 

 

                Agreement  Date.  Part 2.14(a) of  the  Disclosure  Schedule  lists,  as  of  the  Agreement  Date,  each  jurisdiction in which any Acquired Company is required to file a Tax Return.  No valid claim has ever  been  made  by  a  Governmental  Entity  responsible  for  the  imposition  or administration  of  taxes  in  a  jurisdiction where the Acquired Companies do not file Tax Returns that any Acquired Company is or  may  be  subject  to  taxation  by  that  jurisdiction.   The  Company  Financial  Statements  properly  and  adequately accrue or reserve for Tax liabilities in accordance with IFRS.  No Acquired Company has  waived any statute of limitations with respect to Taxes or agreed to any extension of time with respect  to a Tax assessment or deficiency.                (b)  Withholding Taxes. All material Taxes required to be deducted or withheld by  any Acquired Company (including sales and use Taxes, Taxes required to be withheld from employee  wages or consulting compensation) have been properly and timely deducted or withheld, and remitted  to  applicable  Governmental  Entities,  in  compliance  with  all  applicable  Legal  Requirements.   Each  Acquired Company has timely filed all withholding Tax Returns for all periods.               (c)  Disputes;  Audits.   No  Acquired  Company  is  involved  in  a  dispute  relating  to  Taxes with a  Governmental Entity. Other than  routine  field audits  of any Acquired Company which  have not resulted in any Liability to any Acquired Company relating to Taxes, no Governmental Entity  has  audited  or  investigated  or  indicated  that  it  intends  to  audit  or  investigate  the  Tax  affairs  of  any  Acquired Company, and, to the Knowledge of the Company, there are no facts which might cause such  an audit or investigation to be instituted. No event has occurred, and no condition or circumstance exists  that  (with  or  without  notice  or lapse of time)  will  or  would reasonably  be  expected  to  result in any  Encumbrance or other third party right arising over an asset of any Acquired Company in respect of  unpaid Tax.               (d)  Available Documentation.  The Acquired Companies have readily available all  documents necessary to comply with all Legal Requirements relating to Taxes.  Without limiting the  generality of the foregoing, the Acquired Companies have readily available any and all transfer pricing  documentations necessary under applicable Legal Requirements relating to Taxes, which fully comply  with all Legal Requirements imposed on the Acquired Companies.               (e)  Tax  Rulings.   No  Acquired  Company  has  ever  applied  with  any  relevant  Governmental  Entity:  (i)  for  any  binding  ruling  with  respect  to  Taxes;  (ii)  for  any  deferral  of  an  obligation to pay a Tax; or (iii) for any other discretionary decision with respect to Taxes.               (f)  Special  Arrangements.  Part 2.14(f) of  the Disclosure  Schedule  contains  a  summary  of  all  arrangements  that  are  not  based  on  a  strict  application  of  relevant  Tax  legislation,  published extra-statutory concessions or published statements of practice with respect to the Tax affairs  of the Acquired Companies.               (g)  CFCs, etc.  No Acquired Company is or has ever been required to include any  amount  into  income  under  Section  951  of  the  Code  for  taxable  years  ending  prior  to  Closing.   No  Acquired Company is or has been a specified foreign corporation within the meaning of Section 965(e)  of the Code.  No Acquired Company is a “passive foreign investment company” within the meaning of  Section 1297 of the Code.  No Acquired Company has outstanding any warrants, options, convertible  securities, or any other type of right pursuant to which any person could acquire stock in the Acquired  Company which could affect Purchaser’s ability to meet requirements under section 1504(a)(2) of the  Code.               (h)  No  Encumbrances.   There  is  no  Encumbrance  upon  any  of  the  properties  or  assets of any Acquired Company arising from any failure or alleged failure to pay any Tax.                                         26                 

 

                            (i)  Arms’ Length Transactions.  No Acquired Company is (or has ever been) a party  to  or  otherwise  involved  in  any  transaction,  Contract  or  arrangement  (including  any  transaction,  Contract or arrangement with a Related Party or any other Acquired Company): (i) that is or was not on  an arms’ length basis; (ii) under which it has been or is or may be required to make any payment for  any good, service or facility provided to it which is in excess of the market value of such good, service  or facility; (iii) under which it has been, is or may be required to provide any good, service or facility  for consideration which is less than the market value of such good, service or facility, including any gift  or other transfer for zero consideration between any Acquired Companies; (iv) as a result of which it is  or  might  be  assumed  for Tax  purposes to have  received  or  paid for  any  good,  service  or facility  an  amount which differs from that actually received or paid; (v) which fails to comply with, or could be  challenged by any relevant Governmental Entity from the perspective of, any applicable transfer pricing  rule;  or  (vi)  that  is  not  in  compliance  with  applicable  Legal  Requirements,  including  applicable  competition, fair trade and Tax Legal Requirements.  None of the Acquired Company has received any  written notice or other communication or, to the Knowledge of the Company, any non-written notice or  other communication, from any Governmental Entity in connection with any transaction, Contract or  arrangement described in clauses “(i)” through “(vi)” of the preceding sentence.               (j)  Tax Indemnification.  No Acquired Company is bound by or party to any Tax  indemnity, Tax sharing or Tax allocation agreement in respect of which any claim against any Acquired  Company would not be time barred (other than any such agreement (i) solely between or among the  Acquired Companies or (ii) customary gross-up and indemnification provisions in credit agreements,  derivatives, leases and supply agreements entered into in the ordinary course of business with respect to  which taxation is an incidental matter, in the case of each of clauses “(i)” and “(ii)” that has been Made  Available to Purchaser).  No Acquired Company has any Liability for any Tax of any Person (other  than Taxes of the Acquired Companies): (A) under any provision of any state, local or foreign Legal  Requirement;  (B)  as  a  transferee  or  successor;  (C)  by  Contract;  or  (D)  otherwise.   No  Acquired  Company is a party to any special Tax regime granted specifically to such Acquired Company.               (k)  No Permanent Establishment.  No Acquired Company has any liability for any  Tax in any jurisdiction, other than the jurisdiction in which it is organized.  No Acquired Company has  ever had a permanent establishment in a jurisdiction other than the jurisdiction of its organization.  No  Acquired Company is an agent or permanent establishment of another Person or Entity for the purpose  of assessing the Person or Entity to Tax in the country of residence of such Acquired Company.  Part  2.14(k) of  the  Disclosure  Schedule  identifies  the  jurisdiction  in  which  each  Acquired  Company  is  resident for Tax purposes as of the Agreement Date.               (l)  Place  of  Effective  Management.   With  respect  to  each  Acquired  Company  incorporated  in  a  jurisdiction  outside  of  India,  such  Acquired  Company’s  place  of  effective  management, as defined under Section 6 of the (Indian) Income-tax Act, 1961, is and has always been  located outside India, exclusively in the jurisdiction of its incorporation.               (m)  Foreign Receipts.  Each Acquired Company has in its possession official foreign  government receipts for any Taxes paid by it to any foreign Governmental Entity.               (n)  Allocation of Tax Items.  No Acquired Company will be required to include any  item of income in, or exclude any item of deduction from, taxable income for any taxable period (or  portion thereof) ending after the Closing Date as a result of any:                    (i)   change in the method of accounting for any taxable period ending on or       prior to the Closing Date;                                         27                 

 

                                 (ii)  use of an improper method of accounting for any taxable period ending       on or prior to the Closing Date;                    (iii) “closing  agreement”  as  described  in  Section  7121 of  the  Code  (or any       corresponding or similar provision of state, local or non-U.S. income  Tax  Legal Requirement)       executed on or prior to the Closing Date; or                    (iv)  prepaid amount received on or prior to the Closing Date.               (o)  Stamp  Duties.   Any  stamp  duty,  other  duty  or  transfer  Tax  that  any  Acquired  Company is required by any Legal Requirement to pay in respect of any instrument executed by such  Acquired Company has been duly paid to the proper Governmental Entity, or to the extent not yet due  and payable, is held in a separate bank account for such purpose. Any relief obtained from such duty or  Tax  has  been  properly  obtained,  and  no  event  has  occurred  which  has  resulted  in,  or  will  or  would  reasonably be expected to result in, such duty or Tax for which relief was obtained becoming payable.               (p)  No Tax Avoidance.  No Acquired Company has entered into or been engaged in  or been a party to any transaction (or series of transactions), scheme or arrangement of which the main  purpose or one of the main purposes was the avoidance or deferral of Tax or a reduction in any Tax  liability.               (q)  Disclaimer  of  Tax  Attributes.   Notwithstanding  anything  to  the  contrary  contained in this Agreement, the Company is not making, and shall not be construed to have made, any  representation  or  warranty  as  to  the  amount  or  availability  of  any  net  operating  losses,  unabsorbed  depreciation,  Tax  credits,  Tax  basis,  Tax  refunds,  credit  of  Tax deducted  at  source  or  other  Tax  attributes.        2.15  Employee and Labor Matters; Benefit Plans.               (a)  Employees.  Part 2.15(a) of the Disclosure Schedule contains a list of all current  Company  Employees  whose  annual  compensation  exceeds  $350,000  as  of  the  Agreement  Date,  and  correctly states: (i) their dates of commencement of engagement or employment; (ii) their job titles and  positions; (iii) their fees, rates of pay or annual salaries; (iv) their vacation day entitlements; (v) any  other  compensation  payable  to  them  (including  overtime  entitlement,  commuting  or  transportation  allowance,  housing  or  residence  allowances,  mobile  allowance,  airfare  allowance,  compensation  payable pursuant to bonus, deferred compensation or commission arrangements or other compensation),  in  each  case  separately  identified,  and  whether  such  compensation  is  paid  directly  to  the  Company  Employees or paid to a third party on behalf of or for the benefit of the Company Employees; (vi) their  visa  status;  (vii)  each  Company  Benefit  Plan in  which  they  participate  or  are  eligible  to  participate;  (viii) any promises made to them with respect to changes or additions to their compensation or benefits;  and (ix) the location of their principal place of employment.  There are no written or unwritten policies  or customs that, by extension, could entitle any Company Employee to any benefit in addition to those  to which he or she is entitled pursuant to applicable Legal Requirements, other than those included in  the  Company  Benefit  Plans  or  the  Company  Employee  Agreements.  No  Acquired  Company  is  obligated to increase the total annual compensation (including salary or any contractual or discretionary  incentive award) payable to any director, officer, executive manager or other employee of any Acquired  Company in the future except as required by any applicable Legal Requirement.               (b)  Classification.  Each Person providing services to an Acquired Company that has  been characterized as a consultant or independent contractor has been properly characterized as such in  the records of such Acquired Company.  No Acquired Company has or will or would reasonably be                                         28                 

 

                expected  to  have  any  Liability  to  any  individual  who  is  not  currently  on  such  Acquired  Company’s  payroll for any claim, demand or entitlement based upon employment status. No independent contractor  is  eligible  to  participate  in  any  Company  Benefit  Plan,  other  than  a  Company  Option  Plan.   No  Acquired Company has ever had any temporary or leased employee that was not treated and accounted  for in all respects as an employee of such Acquired Company, other than contract laborers disclosed in  Part 2.15(b) of  the  Disclosure  Schedule.   No  employee  of  any  Acquired  Company  is  incorrectly  classified as to such employee’s status as exempt from overtime wages other than as would not result in  liability to any Acquired Company under the Legal Requirements of the applicable jurisdiction in which  the Acquired Company maintains such employment relationship.  Each Acquired Company maintains  accurate  and complete records of all overtime  hours worked  by each employee eligible  for overtime  compensation  and  compensates  all employees  in  all  material  respects  in  accordance  with  the  Legal  Requirements of all jurisdictions in which the Acquired Companies maintain employees.               (c)  Employment  Termination.  Subject  to  applicable  Legal  Requirements,  each  Acquired Company can terminate the employment of each employee by giving to such employee the  applicable  statutory  minimum  notice  without  giving  rise  to  a  claim  for  damages  or  compensation  (except  statutory  compensation).  To  the  Knowledge  of  the  Company,  no  executive  officer  of  any  Acquired Company intends to resign as a result of this Agreement or any other Transaction Document  or any of the Contemplated Transactions. The Company has Made Available to Purchaser accurate and  complete copies of all employee manuals, handbooks and policy statements relating to the employment  of the Company Employees.               (d)  Outstanding Sums and Liabilities.  The Company: (i) does not owe any sum to  any  Company  Employee  except  for  base  salary  accrued  since  the  last  normal  pay  date  or  for  the  reimbursement of properly incurred and approved expenses; and (ii) has no outstanding Liability for:  (A)  breach  of  a  Contract  relating  to  employment;  (B)  redundancy  payments;  (C)  compensation  for  wrongful or unfair dismissal; or (D) failure to comply with any Legal Requirement in respect of any  Company Employee.               (e)  Termination and Suspension Payments.  Since March 31, 2017, no payment has  been made or promised by an Acquired Company to any Company Employee in connection with the  termination (whether actual or proposed) or suspension (whether actual or proposed) of such Company  Employee’s employment, except a payment: (i) that was due under a Company Employee Agreement;  or (ii) that was the minimum required by any applicable Legal Requirement.                (f)  Redundancies or Transfers of Employees.  Since March 31, 2017, no Acquired  Company has given notice of a redundancy to the relevant Governmental Entity or trade union, works  council or employee representative body, or started consulting about making any employee redundant  with an independent trade union, works council or employee representative body under any applicable  statutory provision (the “Transfer Regulations”) or failed to comply with a duty to inform and consult  an independent trade union, works council, employee representative body or individual employee under  the  Transfer  Regulations.   There  are  no  reconciliation  of  interest  or  social  plans  or  individual  or  collective arrangements, whether in the form of general commitments, standard terms of employment,  works  agreements,  collective  bargaining  agreements  or  in  any  other  legal  form,  including  such  agreements  which  would  restrict  any  Acquired  Company’s  freedom  to  dismiss  any  employee  or  to  change  the  terms  of  employment  (including  restrictions  in  the  form  of  an  obligation  to  make  any  payment in the event of any dismissal or change), to which any Acquired Company is bound or which  are in preparation, discussion or negotiation with respect to any Acquired Company.                (g)  No  Breach  of  Employee-Related  Obligations.  Each  Acquired  Company  has  complied  in  all  material  respects  with  each  obligation  imposed  on  it  by  all  applicable  Legal                                        29                 

 

                Requirements,  codes  of  conduct,  collective  agreements,  customs  or  practices  in  connection  with  all  Company Employees and any relationship with a labor organization or other employee representative  body. Each amount owed under a Company Benefit Plan or a Company Employee Agreement has been  paid  as  and  when  due  under  the  terms  of  such  Company  Benefit  Plan  or  such  Company  Employee  Agreement.               (h)  Trade  Unions.   No  Acquired  Company  is a  party  to  any  collective  bargaining  agreement or similar Contract or has an agreement or arrangement to recognize a trade union or has  agreed or arranged to negotiate or consult with a  works  council, staff association or other employee  representative  body.  No  Acquired  Company  is  or  has  ever  been  involved  in  a  dispute  with  a  trade  union, works council or employee representative body and, to the Knowledge of the Company, no event  has occurred, and no claim or other condition or circumstance exists, that will or could reasonably be  expected to, give rise to or serve as a basis for the commencement of such a dispute.  There is not, and  since  March  31,  2015  there  has  not  been,  any  pending  or  threatened  labor  strike,  walkout,  work  stoppage, slow-down or lockout involving any Acquired Company.               (i)  Company  Employment  Agreements  and  Company  Benefit  Plans.   Neither  the  execution and delivery of this Agreement or any other Transaction Document nor the consummation of  any of the Contemplated Transactions will: (A) result in any payment becoming due from any Acquired  Company to any Company Employee; (B) increase any benefit for any Company Employee under any  Company Employee Agreement or any Company Benefit Plan; or (C) result in the acceleration of the  time of payment, vesting or funding of any such benefit under any Company Employee Agreement or  any Company Benefit Plan. The Company has Made Available to Purchaser a copy of each Company  Benefit Plan, each standard form of employment contract used for any Company Employee and each  Company Employee Agreement (other than employment agreements on substantially the same form as  a standard form of employment contract Made Available to Purchaser).  No Acquired Company intends  or  has  committed  to  establish  or  enter  into  any  new  Company  Benefit  Plan  or  Company  Employee  Agreement, or to modify any Company Benefit Plan or Company Employee Agreement (except (1) to  conform any such Company Benefit Plan or Company Employee Agreement to the requirements of any  applicable  Legal  Requirement  and  (2)  for  the  entry  into  new  Company  Employee  Agreements  on  substantially the same form as a standard form of employment contract Made Available to Purchaser  pursuant  to  this Section 2.15(i) for  new  hires,  in  the  case  of  each  of  clauses  “(1)”  and  “(2),”  in  compliance with Section 4.2).                (j)  No  Proceedings.   There  is  no  claim  or Legal  Proceeding  (other  than  routine  claims for benefits) pending or, to the Knowledge of the Company, threatened against: (i) the trustees or  administrators of any Company Benefit Plan or Company Employee Agreement; or (ii) any Acquired  Company, in connection with any Company Benefit Plan or Company Employee Agreement.  To the  Knowledge of the Company, no event has occurred, and no claim or other condition or circumstance  exists,  that  will  or  could  reasonably  be  expected  to,  give  rise  to  or  serve  as  a  basis  for  the  commencement of such a claim or Legal Proceeding.               (k)  Operation.  Each  Acquired  Company  is  in  compliance  in  all  material  respects  with all applicable Legal Requirements, Contracts and orders, rulings, decrees, judgments or arbitration  awards  of  any  arbitrator  or  any  court  or  other  Governmental  Entity  respecting  employment,  employment  practices,  terms  and  conditions  of  employment,  wages,  hours  or  other  labor-related  matters,  including  Legal  Requirements,  orders,  rulings,  decrees,  judgments  and  awards  relating  to  discrimination,  wages  and  hours,  labor  relations,  leave  of  absence  requirements,  occupational  health  and  safety,  retirement  benefit  provision,  privacy,  harassment,  retaliation,  immigration,  wrongful  discharge  or  violation  of  the  personal  rights of  Company  Employees  or  prospective  employees.  No  Acquired  Company  has  any  Liability  for  (A)  any  arrears  of  wages  or  any  Taxes  or  any  penalty  for                                        30                 

 

    failure to comply with any of the matters described in the immediately preceding sentence or (B) any   payment to any trust or other fund governed by or maintained by or on behalf of any Governmental   Entity  with  respect  to  unemployment  compensation  benefits,  social  security  or  other  benefits  or   obligations for any Company Employee.  Each Company Benefit Plan and each Company Employee   Agreement  has  always  been  operated  in  all  material  respects  in  accordance  with  its  governing   documentation and with all applicable Legal Requirements. None of the Company Benefit Plans or the   Company  Employee  Agreements  is  subject  to  winding  up  or  has  been  wound  up  and  no  event  has   occurred,  and  no  claim  or  other  condition  or  circumstance  exists,  that  will  or  would  reasonably  be   expected to, give rise to or serve as a basis for such plan or agreement being wound up.  All investment   business relating to Company Benefit Plans and Company Employee Agreements has been conducted   by Persons who are appropriately authorized under applicable Legal Requirements.         2.16  Environmental Matters.  Each of the Acquired Companies is and has at all times been  in compliance with all Environmental Laws and no Legal Proceeding, complaint, demand or notice has  been made, given, filed or commenced (or, to the Knowledge of the Company, has been threatened) by  any Person against any Acquired Company alleging any failure to comply with any Environmental Law.   Each Acquired Company has obtained, and is and has at all times been in compliance with all of the terms  and conditions of, all Environmental Licenses that are required under any Environmental Law and has at  all  times  complied  with  all  other  limitations,  restrictions,  conditions,  standards,  prohibitions,  requirements, obligations, schedules and timetables that are contained in any applicable Environmental  Law. To the Knowledge of the Company, as of the Agreement Date, no current or former owner of any  property  leased  or  controlled  by  any  of  the  Acquired  Companies  has  received  any  notice  or  other  communication, whether from a Governmental Entity, citizens group, Company Employee or otherwise,  that alleges that such current or former owner or such Acquired Company is not in compliance with any  Environmental Law. None of the Acquired Companies has caused or contributed to any Environmental  Release and no circumstance or physical condition exists on or under any property that may have been  caused by or impacted by the operations or activities of any Acquired Company that will or could give  rise to any Environmental Release by any of the Acquired Companies.  No Contaminants are stored or  contained on or under any of the Leased Real Property, whether in storage tanks, landfills, pits, ponds,  lagoons or otherwise. The Company has Made Available to Purchaser accurate and complete copies of all  internal and external environmental audits and studies in its possession or control, if any, relating to any  Acquired Company or its operations and all correspondence on substantial environmental matters relating  to any Acquired Company or its operations.         2.17  Insurance.   The  Company  has  Made  Available  to  Purchaser  accurate  and  complete  copies of  each  insurance  policy  maintained  by,  at  the  expense  of  or  for  the  benefit  of  any  Acquired  Company as of the Agreement Date (each such policy, a “Company Insurance Policy”) and a schedule  that identifies any material claim made thereunder (whether or not pending) as of the Agreement Date.   Each of the Company Insurance Policies is in full force and effect.  None of the Acquired Companies has  received, on or prior to the Agreement Date, any notice or other communication regarding any actual or  possible: (a) cancellation or invalidation of any Company Insurance Policy; (b) refusal of any coverage or  rejection  of  any  claim  under  any  such  Company  Insurance  Policy;  or  (c)  material  adjustment  in  the  amount  of  the  premiums  payable  with  respect  to  any  such  Company Insurance  Policy.  Neither  the  execution, delivery or performance of this Agreement or any of the other Transaction Documents nor the  consummation of any of the Contemplated Transactions, will (with or without notice or lapse of time): (i)  result in the cancellation, invalidation or termination, or give any Person the right to cancel, invalidate or  terminate, any of the Company Insurance Policies; (ii) result in the reduction of coverage, or give any  Person the right to reduce the coverage, under any Company Insurance Policy; or (iii) have any impact on  any Acquired Company’s right or ability to make a claim under any Company Insurance Policy in respect  of or relating to any event or circumstance that has occurred prior to the Closing.                                           31    

 

         2.18  Related  Party  Transactions.   No  Related  Party  has,  or  has  had,  any  interest  in  any  material asset used in, necessary for or otherwise related to the business of any Acquired Company. No  Related Party is, or has been, indebted to any of the Acquired Companies (other than for ordinary travel  advances) or has entered into, or has had any financial interest in, any Material Contract involving any of  the Acquired Companies. To the Knowledge of the Company, no Related Party is competing, or has at  any time competed, with the business of any Acquired Company. No Related Party has any claim or right  against any of the Acquired Companies (other than rights under Company Options, Company Warrants  and rights to receive compensation for services performed as an employee of an Acquired Company or  other rights arising in the ordinary course of employment and rights under the Charter Documents, the  Existing  Shareholders’  Agreement  and  the  Series  Deeds).   No  member  of  the  board  of  directors  (or  similar body) or executive manager (as the case may be) of any of the Acquired Companies has ever had  a  conflict  of  interest  with  respect  to  the  Acquired  Companies,  and  each  such  member  has  provided  confirmation  of  the  foregoing  to  the  Acquired  Companies  in  accordance  with  applicable  Legal  Requirements.         2.19  Legal Proceedings; Orders.                (a)  Legal  Proceedings.   As  of  the  Agreement  Date,  except  as  set  forth  on Part   2.19(a)-1 of the Disclosure Schedule, there is no Legal Proceeding pending or, to the Knowledge of the   Company,  that  has  been  threatened:  (i)  that  involves  any  of  the  Acquired  Companies  or  any  of  the   assets  owned  by  any  of  the  Acquired  Companies;  (ii) that  involves  any  Liability  (of  any  director,   executive manager, officer or other employee or service provider or any other Person) that has been   retained  or  assumed,  indemnified  against  or  guaranteed  (either  contractually  or  by  operation  of  any   Legal  Requirement) by  any  Acquired  Company;  (iii)  that  challenges,  or  that  may  have  the  effect  of   preventing, delaying, making illegal or otherwise interfering with, the Share Issuance, the Secondary   Share  Purchase  or  any  of the  other  Contemplated  Transactions;  (iv)  that  relates  to  the  ownership  or   alleged ownership of any share capital, membership interests or other securities of any of the Acquired   Companies, or any option, warrant or other right to acquire share capital, membership interests or other   securities of any of the Acquired Companies; or (v) that relates to any right or alleged right to receive   any consideration as a result of or in connection with this Agreement, any other Transaction Document,   the  Share  Issuance,  the  Secondary  Share  Purchase  or  any  other  Contemplated  Transaction.  To  the   Knowledge of the Company, as of the Agreement Date, no event has occurred, and no claim, dispute or   other condition or circumstance exists, that will or could reasonably be expected to give rise to or serve   as  a  basis  for  the  commencement  of  any  such  Legal  Proceeding.  Part 2.19(a)-2 of  the  Disclosure   Schedule lists: (A) each Legal Proceeding with an amount in controversy exceeding Rs1,000,000 that   any Acquired Company has commenced against any other Person on or prior to the Agreement Date;   (B) each Legal Proceeding with an amount in controversy exceeding Rs1,000,000 that any Acquired   Company has threatened against any other Person during the period from March 31, 2015 through the   Agreement Date; (C) each Legal Proceeding with an amount in controversy exceeding Rs1,000,000 that   has been commenced against any of the Acquired Companies during the period from March 31, 2015   through the Agreement Date; (D) each Legal Proceeding seeking a non-monetary remedy (including a   restraining order, an injunction or other equitable relief) that has been commenced against any of the   Acquired Companies during the period from March 31, 2015 through the Agreement Date; and (E) each   Legal  Proceeding  seeking  to  impose  criminal  sanctions  or  criminal liability  on  the  Company  or  any   Company  Employee  that  has  been  commenced  against  or  involved  any  of  the  Acquired  Companies   during the period from March 31, 2015 through the Agreement Date.                (b)  Orders.  There is no Order binding upon any Acquired Company or to which any   asset owned by any Acquired Company is subject.  To the Knowledge of the Company, no Company   Employee  is  subject  to  any  Order  that  prohibits  such  Company  Employee  from  engaging  in  or   continuing any conduct, activity or practice relating to the respective Acquired Company’s business.                                         32    

 

                     2.20  Authority; Binding Nature of Agreements.               (a)  Authority.  The Company has all requisite corporate power and authority to enter  into this  Agreement  and  each other Transaction  Document to  which  the  Company  is  a  party and  to  consummate  the  Contemplated  Transactions.   The  execution,  delivery  and  performance  by  the  Company of this Agreement and the other Transaction Documents to which the Company is a party,  and the consummation of the Contemplated Transactions, have been duly authorized by all necessary  action on the part of the Company, its board of directors and its shareholders, and no other corporate,  partnership or similar Entity governance proceedings on the part of any Acquired Company or any of  the  shareholders  of  any  Acquired  Company  are  necessary  to  authorize  the  execution,  delivery  or  performance by the Company of this Agreement or any of the other Transaction Documents to which  the Company is a party or to consummate any of the Contemplated Transactions. Each Consent of any  shareholder  of  the  Company  required  to  be  obtained  in  connection  with  any  of  the  Contemplated  Transactions, including the termination of the Existing Registration Rights Agreement, the termination  of the Existing Shareholders’ Agreement, the termination of the Series Deeds and the termination of the  Side Letter, has been executed, delivered and obtained prior to the Agreement Date and is in full force  and effect.                (b)  Due Execution.  This Agreement has been, and each other Transaction Document  to which the Company is a party has been or will be, duly executed and delivered by the Company and,  assuming  due  execution  and  delivery  by  the  other  parties  hereto  and  thereto,  constitutes  or  will  constitute the legal, valid and binding obligation of the Company, enforceable against the Company in  accordance with its terms, subject only to the Enforceability Exception.               (c)  No Takeover Statute.  No takeover statute or similar Legal Requirement applies  or  purports  to  apply  to  this  Agreement, the  Share  Purchase  Agreement,  the  Share  Issuance,  the  Secondary Share Purchase or any of the Contemplated Transactions.        2.21  Non-Contravention; Consents.                 (a)  Non-Contravention.   The  execution  and  delivery  of  this  Agreement  and  each  other Transaction Document do not, and the consummation of the Share Issuance, the Secondary Share  Purchase and the other Contemplated Transactions and the performance of this Agreement, the Share  Purchase Agreement and each other Transaction Document will not: (i) conflict with or violate any of  the Charter Documents of any Acquired Company or any resolution adopted by the shareholders (or  holders of other equity securities), the board of directors (or other similar body) or any committee of the  board of directors (or other similar body) of any of the Acquired Companies; (ii) conflict with or violate  in any material respect any applicable Legal Requirement to which any of the Acquired Companies is  subject; (iii) result in any breach of or constitute a default (or an event that with notice or lapse of time  or both would become a default) under, or impair the rights of any Acquired Company or materially  alter  the  rights  or  obligations  of  any  Person  under,  or  give  to  any  Person  any  right  of  termination,  amendment, acceleration or cancellation of, or result in the creation of an Encumbrance on any of the  assets of any Acquired Company pursuant to, any Material Contract; or (iv) contravene, conflict with or  result in a violation of any of the terms or requirements of, or give any Governmental Entity the right to  revoke, withdraw, suspend, cancel, terminate or modify, any Governmental Authorization that is held  by any of the Acquired Companies or that otherwise relates to such Acquired Company’s business or to  any of the assets owned or used by such Acquired Company.               (b)  Contractual Consents.  No Consent under any Material Contract is required to be  obtained, and no Acquired Company is or will be required pursuant to any Material Contract to give  any notice to, any Person in connection with the execution, delivery or performance of this Agreement,                                        33                 

 

    the Share Purchase Agreement or any other Transaction Document or the consummation of the Share   Issuance, the Secondary Share Purchase or any of the other Contemplated Transactions.  For purposes   of this Section 2 and Sections 4.9, 5.1(a), 5.1(c), 6.3 and 7.4, a Consent or Governmental Authorization   will be deemed “required” to be obtained, a notice will be deemed “required” to be given and a filing or   declaration will be deemed “required” to be made if the failure to obtain such Consent or Governmental   Authorization,  give  such  notice  or  make  such  filing  or  declaration  could  result  in  any Acquired   Company becoming subject to any Liability, being required to make any payment or losing or forgoing   any right or benefit.                (c)  Governmental Consents.  No Consent of any Governmental Entity is required to   be  obtained,  and  no  filing  is  required  to  be  made  with  any  Governmental  Entity,  by  any  Acquired   Company  in  connection  with  the  execution,  delivery  or  performance  of  this  Agreement,  the  Share   Purchase Agreement or any other Transaction Document, or the consummation of the Share Issuance,   the Secondary Share Purchase or any of the other Contemplated Transactions, except for the filings set   forth in Part 2.21(c) of the Disclosure Schedule.         2.22  Brokers.  No broker, finder or investment banker is entitled to any brokerage, finder’s or  other  fee  or  commission  in  connection  with  the  Contemplated  Transactions  based  upon  arrangements  made by or on behalf of any of the Acquired Companies, except for Goldman Sachs & Co.  No Person  other  than  Allen  &  Gledhill  LLP,  Dentons  Rodyk,  Gunderson  Dettmer  Stough  Villeneuve  Franklin  &  Hachigian, LLP, Ernst & Young, Khaitan & Co., Fortis Advisors LLC, Cyril Amarchand Mangaldas and  Goldman  Sachs & Co. is  or may  become  entitled  to receive  any fee or other amount from any of the  Acquired Companies for professional services performed or to be performed for any Person in connection  with the Contemplated Transactions.           2.23  Access to Information.  The Company has made available to each Secondary Seller all  information concerning the Acquired Companies and their businesses and prospects that is necessary to  enable  such  Secondary  Seller to  make  a  fully  informed  decision  concerning  the  sale  of  the  Company  Shares  to  be  sold  by  such  Secondary  Seller  to  Purchaser  pursuant  to  the  Share  Purchase  Agreement  (including  any  financial  or  other  information  requested  by  any  Secondary  Seller).  The  Company  has  given  each  Secondary  Seller  a  reasonable  opportunity  to  ask  questions  of,  and  receive  answers  and  information from, the Company regarding the Acquired Companies and their businesses and prospects.  The information in the Information Statement does not: (a) contain any statement that is inaccurate  or  misleading with respect to any material fact; or (b) omit to state any material fact necessary in order to  make such information (in the light of circumstances under which it is provided) not false or misleading.  The Information Statement complied with all applicable Legal Requirements.         2.24  Full Disclosure.  The representations and warranties of, and information provided by, the  Company in this Agreement (including the Disclosure Schedule), when considered as a whole, do not,  and the certificates to be delivered by any Acquired Company in connection with the Closing will not: (a)  contain any representation, warranty or information that is false or misleading with respect to any material  fact; or (b) omit to state any material fact necessary in order to make the representations, warranties and  information  contained  and  to  be  contained  herein  and  therein  (in  the  light  of  the  circumstances  under  which such representations, warranties and information were or will be made or provided) not false or  misleading.     3.    REPRESENTATIONS AND WARRANTIES OF PURCHASER           Purchaser represents and warrants to the Company as follows:         3.1   Valid Existence.  Purchaser is a corporation validly existing under the laws of Delaware.                                          34    

 

         3.2   Authority and Due Execution.                 (a)  Authority.   Purchaser  has  all  requisite  power  and  authority  to  enter  into  this   Agreement  and  any  other  Transaction  Document  to  which  it  is  a  party  and  to  consummate  the   Contemplated  Transactions  to  which  it  is  a  party.  The  execution, delivery  and  performance  by   Purchaser of this Agreement and the other Transaction Documents to which Purchaser is a party and the   consummation by Purchaser of the Contemplated Transactions to which it is a party have been duly   authorized  by  all  necessary  corporate  action  on  the  part  of  Purchaser  and  no  other  corporate   proceedings on the part of Purchaser are necessary to authorize the execution, delivery or performance   of this Agreement and such other Transaction Documents by Purchaser or for Purchaser to consummate   any of the Contemplated Transactions to which it is a party.               (b)  Due Execution.  This Agreement has been, and, upon execution and delivery by   all other parties thereto, each other Transaction Document to which Purchaser is a party will be, duly   executed and delivered by Purchaser and constitutes, or upon execution and delivery will constitute, the   legal, valid and binding obligation of Purchaser enforceable against Purchaser in accordance with its   terms, subject only to the Enforceability Exception.        3.3   Non-Contravention.  The execution and delivery by Purchaser of this  Agreement and  each  other  Transaction  Document  to  which  Purchaser  is  a  party  does  not,  and  the  consummation  by  Purchaser of the Secondary Share Purchase or the other Contemplated Transactions to which it is a party  will not: (a) conflict with or violate Purchaser’s Charter Documents; (b) conflict with or violate any Legal  Requirement to which Purchaser is subject; or (c) conflict with or violate any Contract to which Purchaser  is a party or by which it is bound.        3.4   Litigation.  As of the Agreement Date, there is no Legal Proceeding pending or, to the  Knowledge  of  Purchaser,  threatened  against  Purchaser  that  challenges,  or  that  will  have  the  effect  of  preventing,  delaying,  making  illegal  or  otherwise  interfering  with,  Purchaser’s  purchase  of  the  Issued  Shares.        3.5   Financing.  At the Closing, Purchaser will have, or will have access to, sufficient funds  to permit Purchaser to consummate the purchase of the Issued Shares, including the payment in full of the  amounts payable by Purchaser pursuant to Section 1.1 at the Closing.        3.6   ***********************.  In  entering  into  this  Agreement,  Purchaser  ************************************************************************************* ************************************************************************************.  4.    CERTAIN COVENANTS OF THE COMPANY         4.1   Access and Investigation               (a)  During the period commencing on the Agreement Date and continuing until the  earlier  of  the  termination  of  this  Agreement  pursuant  to Section 8 and  the  Closing  (the  “Pre-Closing  Period”),  the  Company  shall,  and  shall  cause  the  other Acquired  Companies and  the Acquired  Companies’ respective  Affiliates  and  Representatives  to: (i)  promptly  upon  request,  provide  Purchaser  and Purchaser’s Representatives with reasonable access during normal business hours to the Company’s  Representatives,  personnel  and  assets  and  to  all  books,  records,  Tax  Returns, work  papers  and  other  documents and information relating to the Acquired Companies; and (ii) promptly upon request, provide  Purchaser and  Purchaser’s  Representatives  with  copies  of  such  books,  records,  Tax  Returns,    Confidential Information has been omitted from this page and replaced by the asterisks appearing on this page.  Such  Confidential  Information  has  been  filed  separately  with the  Securities  and  Exchange  Commission.   Confidential  treatment has been requested with respect to this omitted information under Rule 406 under the Securities Act of 1933, as  amended, and Rule 24b-2 under the Securities Exchange Act of 1934, as amended.                                           35    

 

                   work papers  and other documents  and information relating to the Acquired Companies, and with such  additional financial, operating and other data and other information regarding the Acquired Companies, as  Purchaser may reasonably request. Notwithstanding anything to the contrary contained in this Agreement:  (A) nothing in this Section 0 shall require any Acquired Company or its Representatives to disclose any  information to Purchaser or Purchaser’s Representatives if such disclosure would violate any applicable  Legal Requirement (including the rules and regulations of the CCI); and (B) if any Acquired Company  fails to provide or to cause its Representatives to provide such access or such information in reliance on  clause “(A)” above, the Company shall (1) promptly (and in any event within two Business Days) provide  a written notice to Parent stating that it is withholding such access or such information and stating the  justification therefor and (2) use commercially reasonable efforts to provide such access or information in  a way that would not violate such Legal Requirement.                (a)  During  the  Pre-Closing  Period,  Purchaser  and  its  Representatives  may  make   reasonable  inquiries  of  Persons  having  significant  business  relationships  with  any  of  the  Acquired   Companies  (including  suppliers  and  customers),  and  the  Company  shall  ensure  that  each  Acquired   Company  and  its  Representatives  reasonably  facilitate  (and  reasonably  cooperate with  Purchaser  in   connection  with)  such  inquiries,  subject  in  each  case  to  Purchaser  or  Purchaser’s  Representative  (i)   providing  reasonable  advance  notice  to  the  Company  of  its  intention  to  do  so,  and  (ii)  permitting  a   Representative  of  the  Company  designated  by  the  Company  to  participate  in  any  oral  or  in-person   inquiries and to be copied on any written inquiries and correspondence related thereto.                  (b)  The Company shall deliver to Purchaser, as soon as practicable and in any event   within 45 days after the end of each monthly accounting period that ends during the Pre-Closing Period,   unaudited consolidated financial statements of the Acquired Companies (consisting of a consolidated   statement  of  financial  position,  a  consolidated  income  statement,  a  consolidated  statement  of  other   comprehensive income, a consolidated statement of changes in equity and a consolidated statement of   cash flows) as of the end of and for such monthly accounting period, prepared in accordance with IFRS   consistently applied throughout the periods covered and in accordance with the Company’s historic past   practice (the “Pre-Closing Financial Statements”).                (c)  The Confidentiality Agreement shall remain in full force and effect in accordance   with  its  terms  until  the  Closing,  except  that  the  obligations  of  Purchaser  and  its  Affiliates  and  their   respective  Representatives  under  the  first  sentence  of  Section  2  thereof  shall  terminate  upon  the   execution and delivery of this Agreement.                (d)  During  the  Pre-Closing  Period,  the  Company  shall:  (i)  provide  reasonable   advance notice to Purchaser of any meeting or proceeding of the Company’s board of directors or any   committee thereof, including any action to be taken by written consent; (ii) provide Purchaser with a   copy  of  the  agenda  for  each  such  meeting  and  any  resolutions  proposed  to  be  adopted  by  written   consent  of  the  Company’s  board  of  directors  or  any  committee  thereof  concurrently  with  the   distribution of such agenda or resolutions to the Company’s board of directors or such committee; (iii)   promptly  (and  in  any  event  no  later  than  24  hours)  after  each  such  meeting,  notify  Purchaser  of all   decisions and determinations made, and all actions taken, at such meeting by the Company’s board of   directors  or  any  committee  thereof;  and  (iv)  provide  Purchaser  with a  copy  of  the  minutes  of  each   meeting of the Company’s board of directors or any committee thereof promptly after such minutes are   approved.                                           36    

 

         4.2   Operation  of  the  Business  of the  Acquired  Companies.   During  the  Pre-Closing  Period, the Company shall ensure that, except (x) as specifically disclosed in Part 4.2 of the Disclosure  Schedule or (y) as required by applicable Legal Requirements (including competition laws in India):                 (a)  each  Acquired  Company (i) conducts  its  business  and  operations  solely  in  the   ordinary  course  in  all  material  respects  and  substantially in  the  same  manner  as  such  business  and   operations have been conducted before the Agreement Date and (ii) uses its reasonable best efforts to   operate in compliance with all applicable Legal Requirements, including Legal Requirements relating   to  privacy,  data  security,  AML  Laws,  Anti-Corruption  Laws,  banking,  Export  Controls,  foreign   investment and employment matters;                (b)  each Acquired Company uses commercially reasonable efforts to preserve intact   its current business organization, keep available the services of its current officers and employees (other   than employees who are terminated for cause) and maintain its relations and goodwill with all suppliers,   customers, landlords, creditors, employees and other Persons having business relationships with any of   the Acquired Companies;                (c)  each Acquired Company prepares and files or causes to be prepared and filed any   Tax Returns that are required to be filed on or before the Closing Date and pays all Taxes due with   respect to such Tax  Returns  and all previously filed Tax Returns  within the  time  and  in the  manner   required by applicable Legal Requirements;                (d)  no Acquired Company makes any political or charitable contribution;                (e)  no  Acquired  Company declares,  accrues,  sets  aside  or  pays  any  dividend  or   makes any other distribution in respect of any share capital, membership interest or other security, or   repurchases,  redeems  or  otherwise  reacquires  any  shares  of  capital  stock  or  other  securities,  except   repurchases  of  shares  or  forfeitures  of  options  in  connection  with  the  termination  of  the  service   relationship with any employee or other service provider; provided, however, that the Company may   undertake the Convertible Security Liquidity Transactions;                (f)  no Acquired Company sells, issues, grants or authorizes the issuance or grant of:   (i)  any  share,  membership  interest  or  other  security;  (ii)  any  option,  warrant  or  right  to  acquire  any   share or membership interest (or cash based on the value of any share or membership interest) or other   security (except that the Company shall be  permitted to issue  Company Shares upon the exercise of   Company Options and Company Warrants outstanding as of the Agreement Date, and issue Company   Ordinary Shares upon the conversion of Company Preference Shares outstanding as of the Agreement   Date,  in  each  case  in  accordance  with  their  terms  as  in  effect  on  the  Agreement  Date);  or  (iii)  any   instrument convertible into or exchangeable for any share or membership interest (or cash based on the   value of any share or membership interest) or other security (for clarity, excluding such actions taken   by  the  Company  to  adequately  capitalize  its  direct  and  indirect  Subsidiaries  through  transactions   between or among two or more Acquired Companies and no other Person);                 (g)  no  Acquired  Company permits  the  early  exercise  of  any  Acquired  Company   Option  or  Acquired  Company  Warrant  or  amends  or  waives  any  of  its  rights  under,  or  permits  the   acceleration of vesting under: (i) any provision of any Contract evidencing or governing the terms of   any  Acquired  Company  Option;  (ii)  any  provision  of  any  Contract  evidencing  any  outstanding   Acquired  Company  Warrant;  or  (iii)  any  other  Contract  or  arrangement  relating  to  compensation,   benefits or the provision of services to or for the benefit of an Acquired Company, in each case, except   as required by the terms of such Contract as in effect on the Agreement Date; provided, however, that   the Company may undertake the Convertible Security Liquidity Transactions;                                          37    

 

                            (h)  no Acquired Company amends or permits the adoption of any amendment to any  of its Charter Documents, or effects or becomes a party to any Acquisition Transaction, recapitalization,  reclassification of shares, stock split, reverse stock split or similar transaction;               (i)  no Acquired Company forms  any Subsidiary or acquires  any equity interest or  other interest in any other Entity (other than acquisitions of equity interests having a fair market value  of no more than $5,000,000 in the aggregate for all such Entities); provided, however, that the Company  may undertake the Convertible Security Liquidity Transactions;                (j)  no Acquired Company (i) makes any capital expenditures  in any fiscal quarter  that, in the aggregate, exceed 110% of the budgeted amount for such fiscal quarter in the Company’s  current  capital  expenditure  budget  Made  Available  to  Purchaser  or  (ii)  makes  unbudgeted  capital  expenditures  during  the  Pre-Closing  Period  that,  when  added  to  all  other  unbudgeted  capital  expenditures made by or on behalf of the Acquired Companies during the Pre-Closing Period, exceed  $10,000,000 in the aggregate;                (k)  no Acquired Company: (i) acquires, leases or licenses any material right or other  material  asset  from  any  other  Person,  (ii) sells  or  otherwise  disposes  of,  or  leases  or  licenses,  any  material right or other material asset to any other Person; or (iii) waives or relinquishes any material  right, in each case, except in the ordinary course of business consistent with past practice;               (l)  no Acquired Company: (i) lends money to any Person (except that the Acquired  Companies may make routine travel advances or other routine advances to current employees of the  Acquired Companies in the ordinary course of business consistent with past practices); (ii) incurs, or  makes any payments  (other than regularly scheduled interest payments) or repayments  in respect of,  any  Indebtedness,  other  than  the  incurrence  of  Indebtedness  under  working  capital  facilities  in  the  ordinary course of business consistent with past practice; or (iii) guarantees any Indebtedness of any  Person;               (m)  no  Acquired  Company:  (i)  enters  into  any  collective  bargaining  agreement,  works  council  agreement  or  other  Contract  with  any  employee  representative  body;  (ii)  establishes,  adopts, amends or terminates any Company Benefit Plan; (iii) makes any new commitment to pay any  bonus or profit-sharing payment, cash incentive payment or similar payment, other than in the ordinary  course of business and consistent with past practice or pursuant to the Convertible Security Liquidity  Transactions; (iv) increases, or makes any commitment to increase, the amount of the wages, salary,  commissions,  fringe  benefits,  employee  benefits  or  other  compensation  (including  equity-based  compensation,  whether  payable  in  cash  or  otherwise)  or  remuneration  payable  to  any  Company  Employee, other than in the ordinary course of business and consistent with past practice or pursuant to  the  Convertible  Security  Liquidity  Transactions;  (v)  funds,  or  makes  any  commitment  to  fund,  any  compensation plan (whether by grantor trust or otherwise), other than as required by applicable Legal  Requirements  or  under  the  terms  of  Contracts  Made  Available  to  Purchaser  as  in  effect  on  the  Agreement  Date  or  pursuant  to  the  Convertible  Security  Liquidity  Transactions;  (vi)  promotes  or  changes  the  title  of  any  of  its  current  executive  officers  (retroactively  or  otherwise),  other  than  promotions or changes of title approved by the Company’s board of directors; (vii) hires or makes an  offer to hire any new executive officer, other than hires or offers that are approved by the Company’s  board  of  directors;  or (viii)  grants  any  new  right  to  severance  or  termination  pay  to  any  executive  officer, other than grants of severance or termination pay that are approved by the Company’s board of  directors  (it  being  understood  that,  for  purposes  of  clauses  “(vi),”  “(vii)” and  “(viii)”  above,  the  “executive officers” of an Acquired Company shall be deemed to include the chief executive officer,  secretary, chief financial officer, chief operating officer, chief merchandizing officer and any member  of the board of directors of such Acquired Company);                                         38                 

 

                (n)  no Acquired Company changes any of its methods of accounting or accounting   practices in any material respect, except as required by IFRS;                (o)  no Acquired  Company:  (i)  makes,  changes  or rescinds  any  election  relating  to   Taxes; (ii) settles or compromises any claim, controversy or Legal Proceeding relating to Taxes with an   amount  in  controversy  exceeding  $5,000,000;  (iii) except  as  required  by  applicable  Legal   Requirements, makes any change to (or makes a request to any Taxing Authority to change) any of its   methods, policies or practices of Tax accounting or methods of reporting income or deductions for Tax   purposes; (iv) amends, refiles or otherwise revises any previously filed Tax Return, or forgoes the right   to any amount of refund or rebate of a previously paid Tax; (v) enters into or terminates any agreements   with a Taxing Authority; (vi) prepares any Tax Return in a manner inconsistent with past practices; (vii)   consents to an extension or waiver of the statutory limitation period applicable to a claim or assessment   in  respect  of  Taxes;  (viii)  enters  into  a  Tax  allocation  agreement,  Tax  sharing  agreement  or  Tax   indemnity agreement; or (ix) requests a ruling with respect to Taxes;                (p)  no  Acquired  Company  authorizes,  approves,  agrees,  commits  or  offers  to  take   any of the actions described in clauses “(d)” through “(o)” above.   Notwithstanding  the  foregoing,  an  Acquired  Company  may  take  (A)  any  action  prohibited  by  clauses  “(d)” through “(f),” “(h),” “(i),” “(l)” and “(m)” above if Purchaser gives its prior written consent to the  taking of such action by such Acquired Company, (B) any action prohibited by clause “(p)” above (to the  extent relating to clause “(d)” through “(f),” “(h),” “(i),” “(l)” or “(m)” above) if Purchaser gives its prior  written consent to the taking of such action by such Acquired Company, (C) any action prohibited by  clauses “(g),” “(j),” “(k),” “(n)” and “(o)” if Purchaser gives its prior written consent to the taking of such  action  by  such  Acquired  Company,  which  consent  shall  not  be  unreasonably  withheld,  delayed  or  conditioned and (D) any action prohibited by clause “(p)” above (to the extent relating to clause “(g),”  “(j),” “(k),” “(n)” or “(o)” above) if Purchaser gives its prior written consent to the taking of such action  by such Acquired Company, which consent shall not be unreasonably withheld, delayed or conditioned.  Purchaser further acknowledges and agrees that nothing contained in this Agreement shall give Purchaser  the right to impermissibly control or direct the operations of any Acquired Company prior to the Closing  within the meaning of applicable competition laws.   If the Company expects to rely on clause “(y)” of this Section 4.2 or the exception in clause “(m)(v),”  “(n)” or “(o)(iii)” of this Section 4.2 to take, or permit any other Acquired Company to take, any action  that  would  otherwise  be  prohibited  by  this Section 4.2,  then  at  least  three  Business  Days  before  such  action is taken, the Company shall deliver a written notice to Purchaser stating that the Company intends  to take or permit the taking of such action and specifying the Legal Requirement or the IFRS requirement  requiring the taking of such action.         4.3   Notification; Updates to Disclosure Schedule.                (a)  Notification by the Company.  During the Pre-Closing Period, the Company shall   promptly  notify  Purchaser  in  writing  of:  (i)  the  discovery  by  any  Acquired  Company  of  any  event,   condition,  fact  or  circumstance  that  occurred  or  existed  on  or  before  the  Agreement  Date  and  that   caused  or  constitutes  a  breach  of  or  an  inaccuracy  in  any  representation  or  warranty  made  by  the   Company in this Agreement such that the condition in Section 6.1 would not be satisfied; (ii) any event,   condition, fact or circumstance that occurs, arises or exists after the Agreement Date and that would   cause or constitute a material breach of or an inaccuracy in any representation or warranty made by the   Company in this Agreement if (A) such representation or warranty had been made as of the time of the   occurrence,  existence  or  discovery  of  such  event,  condition, fact  or  circumstance  or  (B)  such  event,   condition, fact or circumstance had occurred, arisen or existed on or before the Agreement Date such                                         39    

 

                that the condition in Section 6.1 would not be satisfied; (iii) the commencement of or, to the Knowledge  of the Company, any threat to commence, any Legal Proceeding that challenges or that, if adversely  determined, would reasonably be expected to have the effect of preventing, materially delaying, making  illegal or otherwise interfering with the Share  Issuance, the Secondary Share Purchase or any of the  other Contemplated Transactions involving the Company; (iv) any material breach of any covenant or  obligation of the Company such that the condition in Section 6.2 would not be satisfied; and (v) any  event, condition, fact or circumstance that would make the timely satisfaction of any of the conditions  set forth in Section 6 impossible or unlikely. No such notification shall be deemed to supplement or  amend the Disclosure Schedule for the purpose of: (1) determining the accuracy of any of the Company  Representations;  or  (2)  determining  whether  any  of  the  conditions  set  forth  in Section 6 has  been  satisfied. Any innocent and unintentional failure by the Company to give notice under clause “(i)” or  “(ii)” of this Section 4.3(a) shall not be deemed to be a breach of the covenant contained in clause “(i)”  or “(ii)” of this Section 4.3(a) but instead shall constitute only a breach of the underlying representation  or warranty made by the Company in this Agreement.               (b)  Notification  by  Purchaser.   During  the  Pre-Closing  Period,  Purchaser  shall  promptly notify the Company in writing of: (i) the discovery by Purchaser of any event, condition, fact  or circumstance that occurred or existed on or before the Agreement Date and that caused or constitutes  a breach of or an inaccuracy in any representation or warranty made by Purchaser in this Agreement  such  that  the  condition  in Section 7.1 would  not  be  satisfied;  (ii)  any  event,  condition,  fact  or  circumstance that occurs, arises or exists after the Agreement Date and that would cause or constitute a  material  breach  of  or  an  inaccuracy  in  any  representation  or  warranty  made  by  Purchaser  in this  Agreement  if  (A)  such  representation  or  warranty  had  been  made  as  of  the  time  of  the  occurrence,  existence or discovery of such event, condition, fact or circumstance or (B) such event, condition, fact  or circumstance had occurred, arisen or existed on or before the Agreement Date such that the condition  in Section 7.1 would not be satisfied; (iii) the commencement of or, to the Knowledge of Purchaser, any  threat  to  commence,  any  Legal  Proceeding  that  challenges  or  that,  if  adversely  determined,  would  reasonably  be  expected  to  have  the  effect  of  preventing,  materially  delaying,  making  illegal  or  otherwise  interfering  with  the  Share  Issuance,  the  Secondary  Share Purchase  or  any  of  the  other  Contemplated Transactions involving Purchaser; (iv) any material breach of any covenant or obligation  of Purchaser such that the condition in Section 7.2 would not be satisfied; and (v) any event, condition,  fact or circumstance that would make the timely satisfaction of any of the conditions set forth in Section  7 impossible  or  unlikely.  Any  innocent  and  unintentional  failure  by  Purchaser  to  give  notice  under  clause “(i)” or “(ii)” of this Section 4.3(b) shall not be deemed to be a breach of the covenant contained  in clause “(i)” or “(ii)” of this Section 4.3(b) but instead shall constitute only a breach of the underlying  representation or warranty made by Purchaser in this Agreement.               (c)  Updates.   If  any  event,  condition,  fact  or  circumstance  that  is  required  to  be  disclosed  pursuant  to Section 4.3(a) requires  any  change  in  the  Disclosure  Schedule,  or  if  any  such  event, condition, fact or circumstance would require such a change assuming the Disclosure Schedule  were  dated as of the  date of the  occurrence,  existence  or discovery of such  event, condition, fact or  circumstance,  then  the  Company  shall  promptly  deliver  to  Purchaser  an  update  to  the  Disclosure  Schedule  specifying  such  change.  No  such  update  shall  be  deemed  to  supplement  or  amend  the  Disclosure Schedule for the purpose of: (A) determining the accuracy of any representation or warranty  made by the Company in this Agreement; or (B) determining whether any condition set forth in Section  6 has been satisfied.  Any innocent and unintentional failure by the Company to update the Disclosure  Schedule pursuant to this Section 4.3(c) shall not be deemed to be a breach of the covenant contained in  this Section 4.3(c),  but  instead  shall  constitute  only  a  breach  of  the  underlying  representation  or  warranty made by the Company in this Agreement.                                         40                 

 

         4.4   No Negotiation.  During the Pre-Closing Period, the Company shall not, and shall ensure  that  none  of  the  Acquired  Companies  and  none  of  their  respective Representatives  shall:   (a)  solicit,  knowingly  encourage  or  facilitate  the  initiation  or  submission  of  any  expression  of  interest,  inquiry,  proposal or offer from any Person (other than Purchaser) relating to a possible Acquisition Transaction;  (b)  participate  in  any  discussions  or  negotiations  or  enter  into  any  agreement,  understanding  or  arrangement  with,  or  provide  any  non-public  information  to,  any  Person  (other  than  Purchaser  or  its  Representatives) relating to or in connection with a possible Acquisition Transaction; or (c) entertain or  accept any proposal or offer from any Person (other than Purchaser) relating to a possible Acquisition  Transaction. The Company shall promptly (and in any event within 24 hours after receipt thereof) give  Purchaser notice orally and in writing of any inquiry, indication of interest, proposal, offer or request for  non-public information relating to a possible Acquisition Transaction that is received by any Acquired  Company or any Representative of any Acquired Company during the Pre-Closing Period. Such notice  shall  include  (i)  the  identity  of  the  Person  making  or  submitting  such  inquiry,  indication  of  interest,  proposal, offer or request, and the terms and conditions thereof and (ii) an accurate and complete copy of  (A) all written materials provided in connection with such inquiry, indication of interest, proposal, offer  or  request  and  (B)  a  summary  of  all  oral  communications  provided  in  connection  with  such  inquiry,  indication of interest, proposal, offer or request (except, in the case of clause (ii), to the extent any of such  information is prohibited from being disclosed to Purchaser under the terms of a confidentiality or non- disclosure agreement with such Person that is then in effect and binding on the Company and was already  in  place  as  of  the  Agreement  Date,  in  which  case  such  notice  will  disclose  the  existence  of  such  expression of interest, inquiry, proposal or offer and any of such information with respect thereto that is  not expressly prohibited from being disclosed by the terms of such agreement).         4.5   Termination/Amendment  of  Agreements.  The  Company  shall,  or  shall  cause  the  appropriate Acquired Company to use commercially reasonable efforts to: (a) terminate the agreements  identified in Part 1 of Schedule 4.5 effective as of the Closing in a manner satisfactory to Purchaser; and  (b) amend the agreements identified in Part 2 of Schedule 4.5 effective as of the Closing, in the manner  set forth in Part 2 of Schedule 4.5, pursuant to an amendment satisfactory to Purchaser.         4.6   Repayment  of  Insider  Receivables.  Before  the  Closing,  the  Company  shall  use  commercially reasonable efforts to cause each holder of any security of any Acquired Company and each  of such holder’s Affiliates to pay in full all outstanding Insider Receivables.         4.7   Resignation  of  Officers  and  Directors.  The  Company  shall  use  commercially  reasonable efforts to obtain and deliver to Purchaser, at the Closing, the written resignation, in the form of  Exhibit  C (which,  for  the  avoidance  of  doubt,  provides  that  such  resignation  shall  not  be  deemed  a  resignation from such Person’s employment or consulting arrangement with any Acquired Company, if  any), of each officer and each director of an Acquired Company specified by Purchaser no later than three  Business Days before the Closing Date by providing the Company with a written notice that identifies  each such resigning officer or director.         4.8   Company Consideration Spreadsheet.  At least three Business Days before the Closing  Date,  the  Company  shall  deliver  or  cause  to  be  delivered  to  Purchaser  an  estimated  Company  Consideration  Spreadsheet  setting  forth  the  information  required  by Section 6.6(d).  Nothing  in  this  Section 4.8 shall limit any rights of any Indemnitee set forth in Section 9.         4.9   Notification and Consultation.  During the Pre-Closing Period, the Company shall (and  shall cause the Acquired Companies to) provide any notice required to be provided to, make any filing or  registration  required  to  be  made  with,  and  use  commercially  reasonable  efforts  to obtain  any  Consent  required  to  be  obtained  from,  any  labor  organization,  works  council  or  similar  entity,  council,                                          41    

 

   organization or Governmental Entity in connection with this Agreement, any other Transaction Document  or the consummation of any of the Contemplated Transactions.         4.10  Third Party Consents.  The Company shall, and shall cause each Acquired Company to,  use commercially reasonable efforts to obtain all Consents identified in Schedule 4.10 before the Closing.         4.11  Compliance Programs.                  (a)  During the Pre-Closing Period, the Company shall use its reasonable best efforts   to (i) finalize its implementation of the Code of Conduct, the Anti-Bribery & Corruption Policy and the   Corporate Gift Policy for each Acquired Company and (ii) complete its code of conduct training for all   current Company Employees.                (b)  During the Pre-Closing Period, the Company shall use its reasonable best efforts   to develop a system whereby third party Representatives that interact with Government Officials on any   Acquired  Company’s  behalf  are  subject  to  pre-engagement  due  diligence,  written  agreements  with   compliance  provisions  and  post-engagement  monitoring  to  ensure  compliance  with  applicable  Legal   Requirements, including Anti-Corruption Laws, AML Laws and Export Controls.                (c)  During the Pre-Closing Period, the Company shall use its reasonable best efforts   to  develop  a  transaction  pre-screening  mechanism  to  ensure  that  none  of  the  Acquired  Companies   transacts  with  any  Person  with  whom  dealings  are  restricted  or  prohibited  by  any  Export  Control,   including:  (i)  any  Person  identified  in  any  sanctions  list  maintained  by  (A)  the  United  States   Department of Treasury, Office of Foreign Assets Control, the United States Department of Commerce,   Bureau  of  Industry  and  Security,  or  the  United  States  Department  of  State,  (B)  the  United  Nations   Security Council, (C) the European Union or (D) HM Treasury of the United Kingdom; (ii) any Person   located, organized  or  resident  in,  or  a  Government  Official  of,  any  country  or  territory  with  which   dealings are restricted or prohibited by Export Controls; and (iii) any Person that is a Subsidiary of,   controlled by, or acting for the benefit or on behalf of, a Person described in clause “(i)” or “(ii)” above.         4.12  Specified  Warrant  Cancelation.  Before  the  Closing,  the  Company  shall  cancel  the  BCCL Warrant and, in exchange for the cancelation of the BCCL Warrant, shall make a cash payment to  BCCL in an amount equal to the product of:  (a) the number of Total Parent Swap Shares (as such term is  defined in the BCCL Warrant) issuable pursuant to the BCCL Warrant, multiplied by (b) the Price Per  Secondary Share (as such term is defined in the Share Purchase Agreement) (the cancelation of the BCCL  Warrant being referred to as the “Specified Warrant Cancelation” and such payment being referred to as  the “Specified Warrant Cancelation Payment”).         4.13  Intellectual Property Assignments.  The Company shall use its reasonable best efforts  to obtain as of the  Closing: (a) executed assignments  of Intellectual Property and Intellectual Property  Rights, and related releases, waivers and licenses, each in form and substance reasonably satisfactory to  Purchaser, from (i) each current or former contractor or consultant of any Acquired Company that is or  was involved in the creation or development of any Intellectual Property or Intellectual Property Rights  related to Company Products (including mobile applications) or related to artificial intelligence or search,  in the course of his, her or its activities with or for or otherwise for the benefit of any Acquired Company,  in each case that Purchaser determines in its sole discretion has not previously completely and irrevocably  assigned to the applicable Acquired Company, or, as the case may be, waived in favor of the applicable  Acquired  Company,  all  of  his,  her  or  its  rights  in  such  Intellectual  Property  and  Intellectual  Property  Rights,  and  (ii)  each Person  identified  in Schedule 4.13;  and  (b)  evidence  reasonably  satisfactory  to  Purchaser that each Domain Name used by any Acquired Company has been registered in the name of  such Acquired Company.                                           42    

 

         4.14  Certain Compounding Filings and Other Actions.  The Company shall cause each of  the Acquired Companies identified in Schedule 4.14 to make the filings, and take the actions, described in  Schedule 4.14 before the Closing in a manner satisfactory to Purchaser.   5.    CERTAIN COVENANTS OF THE PARTIES         5.1   Filings and Consents.                (a)  Filings.   Each  party  shall  use  its  reasonable  best  efforts  to  file,  as  soon  as   practicable after the Agreement Date, all notices, reports and other documents required to be filed by   such  party  with  any  Governmental  Entity  with  respect  to  the  Share  Issuance,  the  Secondary  Share   Purchase and the other Contemplated Transactions, and to submit promptly any additional information   requested by any such Governmental Entity. Without limiting the generality of the foregoing, Purchaser   and the Company shall, promptly after the Agreement Date, prepare and file any notification or other   document required to be filed under any applicable antitrust or competition-related Legal Requirement   in  connection  with  the  Share  Issuance,  the  Secondary  Share  Purchase  and  the  other  Contemplated   Transactions (it  being  understood  and  agreed  that  any  filing  with  CCI  will  be  made  solely  by   Purchaser). Purchaser and the  Company shall respond as promptly as practicable to any inquiries  or   requests received from the CCI, any attorney general, foreign antitrust or competition authority or other   Governmental  Entity  in  connection  with  antitrust  or  other  regulatory  matters.  At  the  request  of   Purchaser, the Company shall divest, sell, dispose of, hold separate or take any other action with respect   to any of the  businesses, product lines or assets of the  Acquired  Companies, provided that any such   action is conditioned upon the consummation of the Share Issuance and the Secondary Share Purchase.   Subject to the confidentiality provisions of the Confidentiality Agreement, Purchaser and the Company   shall promptly supply the other with any information which may be required in order to effectuate any   filings (including applications) pursuant to (and to otherwise comply with its obligations set forth in)   this Section 5.1(a). Except where prohibited by applicable Legal Requirements or any Governmental   Entity, and subject to the confidentiality provisions of the Confidentiality Agreement: (i) the Company   shall: (A)  not  take  any  position  with respect  to  any  filing  (including  any  application) or  submission   made pursuant to this Section 5.1(a) without Purchaser’s prior written consent; (B) permit Purchaser to   review and discuss in advance, and consider in good faith the views of Purchaser in connection with,   any  analyses,  appearances,  presentations,  memoranda,  briefs,  white  papers,  arguments,  opinions  and   proposals before making or submitting any of the foregoing to any Governmental Entity in connection   with  any  Legal  Proceeding  related  to  this  Agreement  or  any  of  the  Contemplated  Transactions   (including  any  such  Legal  Proceeding  relating  to  any  antitrust,  competition  or  fair  trade  Legal   Requirement); (C) coordinate with Purchaser in preparing and exchanging such information; and (D)   promptly provide Purchaser (and its counsel) with copies of all filings, notices, analyses, presentations,   memoranda, briefs,  white papers,  opinions,  proposals and  other submissions  (and a  summary of any   oral presentations) made or submitted by the Company with or to any Governmental Entity related to   this Agreement or any of the Contemplated Transactions; and (ii) Purchaser shall, if requested by the   Company, consult with the Company (A) prior to taking a position before a Governmental Entity with   respect to any filing or submission required pursuant to this Section 5.1(a) and (B) in connection with   any  analyses,  appearances,  presentations,  memoranda,  briefs,  white  papers,  arguments,  opinions  and   proposals before making or submitting any of the foregoing to any Governmental Entity in connection   with  any  Legal  Proceeding  related  to  this  Agreement  or  any  of  the  Contemplated  Transactions   (including  any  such  Legal  Proceeding  relating  to  any  antitrust,  competition  or  fair  trade  Legal   Requirement).                 (b)  Notification.  Each of the Company and Purchaser shall promptly notify the other   party upon the receipt of: (i) any communication from any official of any Governmental Entity relating   to  any  filing  made  in  connection  with  any  of  the  Contemplated  Transactions;  (ii)  knowledge  of  the                                         43    

 

                commencement or threat of commencement of any Legal Proceeding by or before any Governmental  Entity with respect to any of the Contemplated Transactions (and shall keep the other party informed as  to the status of any such Legal Proceeding or threat); and (iii) any request by any Governmental Entity  for  any  amendment  or  supplement to  any  filing  made  in  connection  with  any  of  the  Contemplated  Transactions or any information required to comply with any Legal Requirement applicable to any of  the  Contemplated  Transactions.   Whenever  any  event  occurs  that  is  required  to  be  set  forth  in an  amendment  or  supplement  to  any  filing  made  pursuant  to Section 5.1(a),  each  of  the  Company  and  Purchaser shall (promptly upon such party becoming aware of the occurrence of such event) inform the  other  party  of  the  occurrence  of  such  event  and  cooperate  with  the  other  party  in  filing  with  the  applicable Governmental Entity such amendment or supplement.               (c)  Efforts.   Subject  to Section 5.1(d),  Purchaser  and  the  Company  shall  (and  the  Company shall cause the other Acquired Companies to) use their respective reasonable best efforts to  take, or cause to be taken, all actions necessary to consummate the Share Issuance and make effective  the other Contemplated Transactions on a timely basis. Without limiting the generality of the foregoing,  but subject to Section 5.1(d), each party to this Agreement shall (and the Company shall cause the other  Acquired Companies to): (i) make all filings (if any) and give all notices (if any) required to be made  and given by such party in connection with the Share Issuance, the Secondary Share Purchase and the  other  Contemplated  Transactions;  (ii)  use  its  reasonable  best  efforts  to  obtain  each  Consent  (if  any)  required to be obtained (pursuant to any applicable Legal Requirement or Contract, or otherwise) by  such party in connection with the Share Issuance, the Secondary Share Purchase or any of the other  Contemplated  Transactions; provided,  however,  that,  under  no  circumstances  may  any  Acquired  Company pay a fee to any third party in order to obtain any Consent pursuant to this Section 5.1(c)  without Purchaser’s prior written consent; and (iii) use its reasonable best efforts to lift any restraint,  injunction or other legal bar to the Share Issuance or any of the other Contemplated Transactions.               (d)  Limitations.   Notwithstanding  anything  to  the  contrary  contained  in Section  5.1(c) or elsewhere in this Agreement, neither Purchaser nor any Affiliate of Purchaser shall have any  obligation  under this  Agreement:  (i)  to  hold  separate,  divest,  sell,  license,  discontinue  or  otherwise  dispose of or agree to hold separate, divest, sell, license, discontinue or otherwise dispose of (or cause  any of its Subsidiaries or any Acquired Company to hold separate, divest, sell, license, discontinue or  otherwise dispose of or agree to hold separate, divest, sell, license, discontinue or otherwise dispose of)  any of its businesses, product lines or assets, or to take or agree to take (or cause any of its Subsidiaries  or any Acquired Company to take or agree to take) any other action or to agree (or cause any of its  Subsidiaries  or  any  Acquired  Company  to  agree)  to  any  behavioral  remedy  with  respect  to,  or  any  limitation or restriction on, any of its businesses, product lines or assets, other than actions referred to in  this clause “(i)”: (A) that are necessary to satisfy the conditions set forth in Sections 6.3(a) and 7.4; and  (B) that,  individually  or in  the  aggregate,  would  reasonably  be  expected to  have only  an  immaterial  impact  on  the  anticipated  benefits  of  the  Contemplated  Transactions  to  Purchaser;  (ii)  to  amend  or  modify any of Purchaser’s or any of its Affiliates’ rights under any Transaction Document or to prohibit  or limit the exercise by Purchaser of any right with respect to any of the Issued Shares or any other  Company Shares; or (iii) to commence or contest any Legal Proceeding relating to the Share Issuance,  the  Secondary  Share  Purchase  or  any  of  the  other  Contemplated  Transactions.   For  clarity,  the  Company  shall  not  be  required to  commence  any  Legal  Proceeding  relating  to  the  approval  by  any  Governmental  Entity  of  the  Share  Issuance,  the  Secondary  Share  Purchase  or  any  of  the  other  Contemplated Transactions unless Purchaser shall have first committed to support the Company in its  commencement of such Legal Proceeding or to commence a similar Legal Proceeding. For clarity, the  Company shall not be required to contest any Legal Proceeding against the Company relating to the  approval by any Governmental Entity of the Share Issuance, the Secondary Share Purchase or any of  the other Contemplated Transactions unless Purchaser shall have first committed to oppose or contest  such Legal Proceeding.                                        44                 

 

         5.2   Public Announcements.  During the Pre-Closing Period: (a) the Company shall not (and  the  Company  shall  ensure  that  no  other  Acquired  Company  and  no  Representative  of  any  Acquired  Company shall) issue or make any press release or public statement regarding (or otherwise disclose to  any  Person  the  existence  or  terms  of)  this  Agreement,  the  Share  Purchase  Agreement,  the  Secondary  Share Purchase, the Share Issuance or any of the other Contemplated Transactions, without Purchaser’s  prior  written  consent  (other  than  public  statements  made  by  the  Company  in  response  to  any  public  statement  made  by  Purchaser  in  any  public  action,  suit  or  other  legal  proceeding  arising  out  of  this  Agreement prior to the Closing); and (b) the Company shall consult (and the Company shall ensure that  each Acquired Company consults) with Purchaser before issuing or making, and shall consider in good  faith  the  views  of  Purchaser  with  respect  to,  any  other  press  release  or  public  statement.  Except  as  required by applicable  Legal Requirements,  each of the  Company and  Purchaser agree to refrain from  issuing or making any press release or public statement (other than any statement in any public action,  public  suit  or  other  public  legal  proceeding  arising  out  of  this  Agreement  prior  to  the  Closing)  with  respect  to  any  dispute  under  or  relating  to  this  Agreement,  the  Share  Issuance,  the  Secondary  Share  Purchase or any of the other Contemplated Transactions.         5.3   Reasonable  Best  Efforts.  Before  the  Closing:  (a)  subject  to Section 5.1(d),  the  Company shall use its reasonable best efforts to cause the conditions set forth in Section 6 to be satisfied  on a timely basis; and (b) subject to Section 5.1(d), Purchaser shall use its reasonable best efforts to cause  the conditions set forth in Section 7 to be satisfied on a timely basis.         5.4   Directors and Officers of Acquired Companies.                  (a)  For a period of six years following the Closing, the Company will, and will cause   the other Acquired Companies to, honor and fulfill their obligations existing as of the Agreement Date   in favor of all current or former officers or directors of the Company or any other Acquired Company   (the  “D&O  Indemnified  Parties”)  whether  pursuant  to  the  Charter  Documents  of  the  Acquired   Companies,  under  individual  indemnification  agreements,  under  applicable  Legal  Requirements  or   otherwise, for acts or omissions of the D&O Indemnified Parties which occurred prior to the Closing   (the “D&O Indemnification Obligations”) (regardless of whether any proceeding relating to any D&O   Indemnified Party’s rights to indemnification, exculpation, or expense advancement with respect to any   such matters, acts, or omissions is commenced before the Closing); provided, however, that (i) no D&O   Indemnified Party will be entitled to exculpation from, or to be indemnified, reimbursed or advanced   expenses by, any Acquired Company or any Affiliate of any Acquired Company for any amount such   D&O Indemnified Party has paid, owes or may owe to an Indemnitee in such D&O Indemnified Party’s   capacity  as  a  Secondary  Seller  under  the  provisions  set  forth  in  Section  9  of  the  Share  Purchase   Agreement  and  (ii)  no  D&O  Indemnified  Party  shall  be  entitled  to  exculpation  from,  or  to  be   indemnified,  reimbursed  or  advanced  expenses  by,  any  Acquired  Company  or  any  Affiliate  of  any   Acquired Company to the extent such exculpation, or the payment or receipt of any such amount, would   violate  or  contravene  any  applicable  Legal  Requirement.  Under  no  circumstances  shall  any  D&O   Indemnified  Party  be  entitled  to  exculpation,  indemnification,  reimbursement  or  advancement  of   expenses directly from Purchaser or any Affiliate of Purchaser that is not an Acquired Company.  Any   claim for indemnification made under this Section 5.4 on or prior to the sixth anniversary of the Closing   Date shall survive until the final resolution thereof.                (b)  For a period of six years following the Closing, the Company will maintain in   effect  all  director  and  officer  insurance  policies  maintained  by  the  Acquired  Companies  as  of  the   Agreement Date with respect to any actions or omissions by the D&O Indemnified Parties occurring   prior  to  the  Closing,  with  coverage  in  amount  and  scope  at  least  as  favorable  as  the  Acquired   Companies’ existing coverage as of the Agreement Date. Purchaser will not take any action intended to                                          45    

 

    cause  the  Acquired  Companies  to  cancel  or  reduce  the  coverage  of  such  insurance  policies  in  any   material respect prior to the sixth anniversary of the Closing Date.                (c)  The obligations of the Acquired Companies under this Section 5.4 shall not be   terminated,  amended,  or  otherwise  modified  in  such  a  manner  as  to  adversely  affect  any  D&O   Indemnified Party (or his or her heirs, personal representatives, successors, or assigns) without the prior   written  consent  of  such  D&O  Indemnified  Party  (or  his  or  her  heirs,  personal  representatives,   successors, or assigns, as applicable). If any Acquired Company consolidates with or merges into any   other Person and shall not be the continuing or surviving corporation or Entity in such consolidation or   merger, or transfers all or substantially all of its assets to any Person, then proper provision shall be   made so that the successor or assign of such Acquired Company shall assume the remaining obligations   of such Acquired Company under this Section 5.4. Each D&O Indemnified Party (or his or her heirs,   personal representatives, successors, or assigns, as applicable) is an intended third party beneficiary of   the provisions of this Section 5.4 and entitled to enforce such provisions.   6.    CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER         The obligations of Purchaser to acquire the Issued Shares and otherwise cause the Contemplated  Transactions to be consummated are subject to the satisfaction (or waiver by Purchaser), at or before the  Closing, of each of the following conditions:         6.1   Accuracy of Representations.                (a)  The Designated Company Representations shall be accurate in all respects as of   the Closing Date as if made on and as of the Closing Date (other than representations and warranties   which  by  their  terms  are  made  as  of  a  specific  earlier  date,  which  shall  have  been  accurate  in  all   respects as of such earlier date); provided, however, that, for purposes of determining the accuracy of   the Designated Company Representations as of the Closing Date or as of a specific earlier date, (A) any   update of or modification to the Disclosure Schedule made or purported to have been made on or after   the  Agreement  Date  shall  be  disregarded  and  (B)  any  inaccuracies  in  the  Designated  Company   Representations that are, in the aggregate, de minimis in nature shall be disregarded.                 (b)   The Company  Representations  (other  than  the  Designated  Company  Representations) shall be accurate in all material respects as of the Closing Date as if made on and as of  the Closing Date (other than representations and warranties which by their terms are made as of a specific  earlier  date,  which  shall  have  been accurate  in all  material respects  as  of such  earlier  date); provided,  however, that: (i) for purposes of determining the accuracy of such representations and warranties as of  the Closing Date or as of a specific earlier date, (A) all materiality and similar qualifications limiting the  scope of such representations and warranties shall be disregarded and (B) any update of or modification to  the Disclosure Schedule made or purported to have been made on or after the Agreement Date shall be  disregarded; and (ii) for purposes of this Section 6.1(b) only (for clarity, not for purposes of Section 9),  the reference to “as of the Agreement Date” in the first sentence of Section 2.19(a) shall be disregarded  with respect to (A) any Legal Proceeding commenced or threatened by a Governmental Entity and (B)  any  Legal  Proceeding  commenced  by  any  current,  former  or  alleged  shareholder  of  any  Acquired  Company or Affiliate (other than any portfolio company of such shareholder where such shareholder does  not own a majority of equity voting power and does not have the right to appoint a majority of the board  of directors or other governing body in or of such portfolio company) of any current, former or alleged  shareholder of any Acquired Company.                                          46    

 

         6.2   Performance  of  Covenants.  The  covenants  and  obligations  that  the  Company  is  required to comply with or to perform at or before the  Closing under this  Agreement shall have  been  complied with and performed in all material respects.         6.3   Governmental and Other Consents; Expiration of Notice Periods.                (a)  Governmental  Consents.   All  filings  with  the  CCI  required  to  be  made  in   connection  with  the  Share  Issuance,  the  Secondary  Share  Purchase  and  the  other  Contemplated   Transactions shall have been made and CCI Approval shall have been obtained and shall be in full force   and  effect  without  the  imposition  of  any  Burdensome  Condition;  and  any  other  Legal  Requirement   preventing, prohibiting or otherwise restraining, in whole or in part, the Share Issuance, the Secondary   Share Purchase or any of the other Contemplated Transactions shall have expired or been terminated   without  the  imposition  of  any  Burdensome  Condition  and  any  waiting  period  under  any  applicable   antitrust or competition law, regulation or other Legal Requirement in India shall have expired or been   terminated without the imposition of any Burdensome Condition. For purposes of this Section 6.3(a)   and Section 7.4, “CCI Approval” means the receipt of an approval letter under sub-regulation (5) of   Regulation  28  of  the  CCI  Regulations  with  respect  to  the  Share  Issuance  and  the  Secondary  Share   Purchase.                 (b)  Other  Consents  and  Notices.   All  Consents  and  notices  identified  in Schedule   6.3(b) shall have been obtained or given and shall be in full force and effect.                (c)  No Restraint on Business.  No action shall have been taken by any Governmental   Entity of competent jurisdiction, and no Legal Requirement or Order (whether temporary, preliminary   or permanent) shall have been enacted, adopted or issued by any Governmental Entity of competent   jurisdiction, in connection with any of the Contemplated Transactions that has the effect of limiting or   restricting the conduct or operation of the business of the Company, any other Acquired Company or   any their respective Affiliates following the Closing or that has the effect of limiting or restricting the   conduct or operation of the business of Purchaser as owner of the Issued Shares or any other Company   Shares  following  the  Closing,  other  than  limitations  or  restrictions that  (i)  individually  or  in  the   aggregate, would reasonably be expected to have only an immaterial impact on the anticipated benefits   of the Contemplated Transactions to Purchaser or (ii) resulted from the failure of Purchaser to comply   with or perform the covenants and obligations of Purchaser set forth in Section 5.1(c) (as qualified by   Section 5.1(d)).         6.4   Shareholder  Approval.  The  Share  Issuance  shall  have  been  duly  approved  by  the  shareholders of the Company, and no shareholder of the Company shall have initiated a Legal Proceeding  challenging or attempting to revoke the approval of the Share Issuance.         6.5   No Material Adverse Effect.  There shall not have occurred any Material Adverse Effect  since the Agreement Date that is continuing.         6.6   Agreements and Documents.  Purchaser shall have received the following agreements  and documents, each of which shall be in full force and effect:                 (a)  original share certificates representing all Issued Shares;                 (b)  the shareholder register (i) reflecting the conversion of all Company Preference   Shares  into  Company  Ordinary  Shares  upon  the  Closing  pursuant  to  the  Conversion  Event  and   reflecting the  Share  Issuance  and (ii) showing that Purchaser owns  all of the  Issued  Shares  and that   there are no Encumbrances on such shares;                                          47    

 

                            (c)  a  certificate  duly  executed  by  the  chief  executive  officer  and  chief  financial  officer of the Company containing the representation and warranty of the Company that the conditions  set  forth  in Sections 6.1 through 6.5 and  Sections 6.7 through 6.13 have  been  duly  satisfied  (the  “Company Closing Certificate”);               (d)  a  spreadsheet  containing  the  following  information,  together  with  a  certificate  duly executed on behalf of the Company by the chief executive officer and chief financial officer of the  Company, containing the representation and warranty of the Company that all of such information is  accurate and complete (and in the case of dollar amounts, properly calculated) as of the Closing (such  spreadsheet and accompanying certificate, the “Company Consideration Spreadsheet”):                     (i)   (A)  the  aggregate  amount  of  all  Company  Transaction  Expenses,       together  with  a  detailed  breakdown  thereof  specifying  for  each  such  Company  Transaction       Expense the dollar amount thereof (determined using the Specified Exchange Rate, as applicable)       and  whether  it  has  already  been  paid  or  remains  to  be  paid,  (B)  the  Closing  Debt  Amount,       together  with  a  detailed  breakdown  thereof  identifying  the  creditor  or  creditors  to  which  such       Company Indebtedness is owed and the aggregate dollar amount of all principal, accrued interest,       premiums, penalties, fees, Expenses, breakage costs and other payments required to be paid or       offered in respect of such Company Indebtedness as of the Closing or in connection with or in       contemplation of the consummation of any of the Contemplated Transactions, (C) the Specified       Warrant  Cancelation  Payment  Amount,  (D)  the  aggregate amount  of  all  Transaction  Bonuses,       together with a detailed breakdown thereof specifying for each such Transaction Bonus the dollar       amount thereof (determined using the Specified Exchange Rate, as applicable) and whether it has       already  been paid  or remains  to  be  paid or  payable,  (E) the  Primary  Post-Issuance  Ownership       Percentage,  (F)  the Indemnification  Gross-Up  Factor,  (G)  the  Adjusted  Pre-Money  Company       Equity Value, (H) the Price Per Primary Share, (I) the Apportioned Litigation Reserve Amount,       (J)  the Aggregate  Repurchase  Price,  (K)  the  Primary  Specified  Fraction,  (L)  the  Primary       Allocation Gross-Up Factor and (M) the Fully Diluted Share Number;                    (ii)  a funds flow spreadsheet, in form and substance reasonably satisfactory       to Purchaser, showing: (A) the aggregate consideration payable by Purchaser to the Company for       the Issued Shares; (B) the amounts to be distributed by the Disbursing Agent to: (1) the names of       legal  counsel  and  other  service  providers  that  are  owed  or  will  be  owed  any  Company       Transaction  Expense  by  any  of  the  Acquired  Companies,  denominated  in  Singapore  dollars,       rupees  and/or dollars,  as  applicable;  and  (2)  the  other  anticipated  recipients  of  payments  in       connection  with  the  Contemplated  Transactions  and  the  amounts  so  owed  (denominated  in       Singapore dollars, rupees and/or dollars, as applicable); and (C) wire transfer instructions for each       payment to be made by the Disbursing Agent reflected therein;                (e)  reasonable documentation in support of the calculation of the amounts set forth in  the Company Consideration Spreadsheet;               (f)  release agreements, in the form of Exhibit B, duly executed by each director and  each officer of an Acquired Company who is identified by Purchaser in accordance with Section 4.7;               (g)  agreements,  in  form  and  substance  reasonably  satisfactory  to  Purchaser,  terminating or amending the agreements identified in Schedule 4.5 in accordance with Section 4.5;               (h)  written resignations, in the form of Exhibit C, of each director and each officer of  an Acquired Company who is identified by Purchaser in accordance with Section 4.7, effective as of the  Closing Date, and the revocation of all signatory rights of such directors and officers;                                         48                 

 

                (i)  certified  copies  of:  (i)  the  resolutions  adopted  by  the  Company’s  board  of   directors  (A) approving  this  Agreement,  the  Share  Issuance,  the  Secondary  Share  Purchase  and  the   other Contemplated Transactions, including resolutions instructing the Company’s secretary to enter the   name of Purchaser in the electronic register of members of the Company maintained by the Accounting   and  Corporate  Regulatory  Authority  of  Singapore  as  the  holder  of  the  Issued  Shares,  (B) subject  to   receipt of a written consent to act as a director of the Company from the relevant individuals, approving   the appointment as directors of the Company (effective as of the Closing) of five individuals designated   by  Purchaser  prior  to  the  Closing  and  (C)  approving  the  resignation  as  directors  of  the  Company   (effective as of the Closing) of each of the directors who are identified on Schedule 4.7; and (ii) the   resolutions adopted by the shareholders of the Company approving the Share Issuance, the Conversion   Event,  the  Liquidation  Event  Waiver,  the  Preemptive  Rights  Waiver  and  the  other  Contemplated   Transactions;                 (j)  evidence  reasonably  satisfactory  to  Purchaser  that  all  outstanding  Insider   Receivables  owed  by any holder of  any  security  of any  Acquired  Company  or  any  of  such  holder’s   Affiliates have been paid in full;                 (k)  the Shareholders’ Agreement, substantially in the form of Exhibit D (the “New   Shareholders’ Agreement”), duly executed by the Company and each Person that will be a shareholder   of the Company immediately after the Closing;                 (l)  all  documentation  required  by  the  Disbursing  Agent  with  respect  to  any   payments to be made by the Disbursing Agent;                (m)  the  audited  consolidated  financial  statements  (consisting  of  a  consolidated   statement  of  financial position,  a  consolidated  income  statement,  a  consolidated  statement  of  other   comprehensive income, a consolidated statement of changes in equity and a consolidated statement of   cash flows) of the Acquired Companies as of and for the fiscal year ended March 31, 2018, including   the notes thereto and the unqualified report and opinion of Ernst & Young Associates LLP thereon;                (n)  (i) a properly executed Foreign Investment and Real Property Tax Act of 1980   notification letter which states that none of the Company Shares constitute “United States real property   interests” under Section 897(c) of the Code, for purposes of satisfying Purchaser’s obligations under   Treasury Regulation Section 1.1445-2(c)(3) and (ii) a form of notice to the IRS prepared in accordance   with the requirements of Treasury Regulation section 1.897-2(h)(2); and                (o)  one  or more  DVDs  or other digital media  evidencing the  documents that were   Made Available to Purchaser, which shall indicate, for each document, the date that such document was   first uploaded to the Virtual Data Room.         6.7   No Restraints.  No temporary restraining order, preliminary or permanent injunction or  other  Order  preventing  or  otherwise  impeding,  in  whole  or  in  part,  the  consummation  of  the  Share  Issuance or the Secondary Share Purchase shall have been issued by any court of competent jurisdiction  or other Governmental Entity of competent jurisdiction and remain in effect, and there shall not be any  Legal Requirement enacted or deemed applicable to the Share Issuance or the Secondary Share Purchase  by any Governmental Entity of competent jurisdiction that makes consummation of the Share Issuance or  the Secondary Share Purchase illegal, in whole or in part.         6.8   No  Legal  Proceedings.  No  Governmental  Entity  shall  have  commenced  any  Legal  Proceeding that remains pending, or shall have threatened to commence any Legal Proceeding, and no  current, former or alleged shareholder of any Acquired Company or Affiliate (other than any portfolio                                          49    

 

   company of such shareholder where such shareholder does not own a majority of equity voting power and  does not have the right to appoint a majority of the board of directors or other governing body in or of  such portfolio company) of any current, former or alleged shareholder of any Acquired Company shall  have commenced any Legal Proceeding that remains pending:  (a) challenging, in whole or in part, the  Share Issuance, the Secondary Share Purchase or any of the other Contemplated Transactions; (b) seeking  recovery of a material amount of damages in connection with the Share Issuance, the Secondary Share  Purchase or any of the other Contemplated Transactions; (c) seeking to prohibit or limit the exercise by  Purchaser of any right with respect to any Issued Shares or any other Company Shares; (d) that may have  the effect of preventing, delaying, making illegal or otherwise interfering with, in whole or in part, the  Share Issuance, the Secondary Share Purchase or any of the other Contemplated Transactions; (e) seeking  to compel any Acquired Company, Purchaser or any Affiliate of Purchaser to dispose of or hold separate  any material assets as a result of the Share Issuance, the Secondary Share Purchase or any of the other  Contemplated Transactions; or (f) that may result in the imposition of criminal liability on Purchaser, any  Affiliate of Purchaser or any Acquired Company or any officer or director of Purchaser, any Affiliate of  Purchaser  or  any  Acquired  Company  in  connection  with  the  Share  Issuance,  the Secondary  Share  Purchase or any of the other Contemplated Transactions.          6.9   Conversion Event.  The Conversion Event shall (subject only to the consummation of  the  Closing)  become  effective,  and  all  issued  and  outstanding  Company  Preference  Shares  shall  be  converted into  Company  Ordinary  Shares  in  compliance  with  the Constitution  of  the  Company,  immediately after the Closing.          6.10  Waivers.  The Liquidation Event Waiver and the Preemptive Rights Waiver shall be in  full  force  and  effect  and  no  shareholder  of  the  Company  shall  have  commenced  a  Legal  Proceeding  challenging or attempting to revoke the Liquidation Event Waiver or the Preemptive Rights Waiver.          6.11  Specified  Warrant  Cancelation.  The  Company  shall  have  completed  the  Specified  Warrant Cancelation and shall have made the Specified Warrant Cancelation Payment.           6.12  Certain  India  Actions.  The  Company  shall  have  filed  applications,  including  compounding applications, for the payment of stamp duty with respect to all of the Identified Premises.         6.13  Board Appointments.  The Company shall have appointed five individuals designated  by Purchaser to the board of directors of the Company, at least two of whom shall not be Affiliates of  Purchaser, effective as of the Closing.           6.14  Secondary Share Purchase.  Each of the conditions set forth in Section 6 and Section 7  of the Share Purchase Agreement shall have been satisfied or waived in writing and the Secondary Share  Purchase shall be consummated contemporaneously with the Share Issuance at the Closing.   7.    CONDITIONS PRECEDENT TO OBLIGATION OF THE COMPANY         The  obligation  of  the  Company  to  effect  the  Share  Issuance  and  otherwise  consummate  the  Contemplated  Transactions  is  subject  to  the  satisfaction  (or  waiver),  at  or  before  the  Closing,  of  the  following conditions:         7.1   Accuracy of Representations.  The representations and warranties made by Purchaser in  this Agreement shall be accurate as of the Closing Date as if made on and as of the Closing Date, except  where the failure of the representations and warranties of Purchaser to be accurate would not reasonably  be expected to have a material adverse effect on the ability of Purchaser to consummate the acquisition of  the Issued Shares.                                          50    

 

         7.2   Performance of Covenants.  The covenants and obligations that Purchaser is required to  comply with or to perform at or before the Closing under this Agreement shall have been complied with  and  performed  in  all  material  respects,  except  where  the  failure  to  comply  with  or  to  perform  such  covenants or obligations would not reasonably be expected to have a material adverse effect on the ability  of Purchaser to consummate the acquisition of the Issued Shares.         7.3   Agreements and Documents.  The Company shall have received: (a) a certificate duly  executed on behalf of Purchaser by an officer of Purchaser and containing the representation and warranty  of Purchaser that the conditions set forth in Sections 7.1 and 7.2 have been satisfied; and (b) the New  Shareholders’ Agreement, duly executed by Purchaser.         7.4   Governmental Approvals.  All filings with the CCI required to be made by Purchaser in  connection with the Share Issuance shall have been made and CCI Approval shall have been obtained and  shall be in full force and effect, and any waiting period (and extensions thereof) applicable to the Share  Issuance under  any  applicable  antitrust  or  competition  law,  regulation  or  other  Legal  Requirement  in  India shall have expired or been terminated.          7.5   No Restraints.  No temporary restraining order, preliminary or permanent injunction or  other  Order  binding  on  the  Company  and  preventing  the  consummation  of  the  Share  Issuance  by  the  Company shall have been issued by any court of competent jurisdiction or other Governmental Entity in  India, Singapore or the United States and remain in effect, and there shall not be any Legal Requirement  enacted or deemed applicable to the Share Issuance by any Governmental Entity in India, Singapore or  the United States, that makes consummation of the Share Issuance by the Company illegal and remains in  effect.    8.    TERMINATION         8.1   Termination Events.  This Agreement may be terminated before the Closing:                (a)  by the mutual written consent of Purchaser and the Company;                (b)  by Purchaser if the Closing has not taken place on or before 5:00 p.m. (Central   time) on the date that is 10 months after the Agreement Date (the “End Date”) and any condition set   forth in Section 6 has not been satisfied or waived as of the time of termination (other than as a result of   any failure on the part of Purchaser to comply with or perform any covenant or obligation of Purchaser   set forth in this Agreement or in the Share Purchase Agreement);                (c)  by  the  Company  if  the  Closing  has  not  taken  place  on  or  before  5:00  p.m.   (Central time) on the End Date and any condition set forth in Section 7 has not been satisfied or waived   as of the time of termination (other than as a result of any failure on the part of the Company to comply   with  or  perform  any  covenant  or  obligation  set  forth  in  this  Agreement  or  any  other  Transaction   Document);                (d)  by  Purchaser  if:  (i)  a  court  of  competent  jurisdiction  or  other  Governmental   Entity in India,  Singapore or the  United  States shall have  issued a final and nonappealable Order or   shall have taken any other action having the effect of permanently restraining, enjoining or otherwise   prohibiting the Share Issuance or the Secondary Share Purchase, in whole or in part; or (ii) there shall   be any applicable Legal Requirement enacted, promulgated, issued or deemed applicable to the Share   Issuance  or  the  Secondary  Share  Purchase  by  any  Governmental  Entity  in  India,  Singapore  or  the   United States that would make consummation of the Share Issuance or the Secondary Share Purchase   illegal, in whole or in part;                                           51    

 

                (e)  by  the  Company  if:  (i)  (A)  a  court  of  competent  jurisdiction  or  other   Governmental  Entity  in  India,  Singapore  or  the  United  States  shall  have  issued  a  final  and   nonappealable Order binding on the Company or shall have taken any other action having the effect of   permanently restraining, enjoining or otherwise prohibiting the Share Issuance or the Secondary Share   Purchase  or  (B)  there  shall  be  any  applicable  Legal  Requirement  binding  on  the  Company  enacted,   promulgated, issued or deemed applicable to the Share Issuance or the Secondary Share Purchase by   any Governmental Entity in India, Singapore or the United States that would make consummation of   the Share Issuance or the Secondary Share Purchase illegal; and (ii) the failure to comply with such   Order or Legal Requirement, or the effect of such other action, would reasonably be expected to give   rise  to  the  imposition  of  criminal  sanctions  or  criminal  liability  on  the  Company  or  any  of  the   Company’s officers or directors;                (f)  by Purchaser if: (i) any representation and warranty of the Company contained in   this Agreement shall be inaccurate as of the Agreement Date, or shall have become inaccurate as of a   date subsequent to the Agreement Date, such that any of the conditions set forth in Section 6.1 would   not  be  satisfied;  or  (ii)  any  covenant  of  the  Company  contained  in  this  Agreement  shall  have  been   breached such that the condition set forth in Section 6.2 would not be satisfied; provided, however, that   if an inaccuracy in any of the representations and warranties of the Company as of a date subsequent to   the Agreement Date or a breach of a covenant by the Company is curable by the Company through the   use  of  reasonable  efforts  within  30  days  after  Purchaser  notifies  the  Company  in  writing  of  the   existence of such inaccuracy or breach (the “Company Cure Period”), then Purchaser may not terminate   this Agreement under this Section 8.1(f) as a result of such inaccuracy or breach before the expiration   of the Company Cure Period, provided the Company continues to exercise reasonable efforts to cure   such inaccuracy or breach during the Company Cure Period (it being understood that Purchaser may not   terminate this Agreement pursuant to this Section 8.1(f) with respect to such inaccuracy or breach if   such inaccuracy or breach is cured before the expiration of the Company Cure Period);                 (g)  by  the  Company  if:  (i)  any  of  Purchaser’s  representations  and  warranties   contained  in  this  Agreement  shall  be  inaccurate  as  of  the  Agreement  Date,  or  shall  have  become   inaccurate as of a date subsequent to the Agreement Date, such that any of the conditions set forth in   Section 7.1 would not be satisfied; or (ii) if any of Purchaser’s covenants contained in this Agreement   shall  have  been  breached  such that  the  condition  set  forth  in Section 7.2 would  not  be  satisfied;   provided, however, that if an inaccuracy in any of Purchaser’s representations and warranties as of a   date subsequent to the Agreement Date or a breach of a covenant by Purchaser is curable by Purchaser   through the use of reasonable efforts within 30 days after the Company notifies Purchaser in writing of   the existence of such inaccuracy or breach (the “Purchaser Cure Period”), then the Company may not   terminate this Agreement under this Section 8.1(g) as a result of such inaccuracy or breach before the   expiration of the Purchaser Cure Period, provided Purchaser continues to exercise reasonable efforts to   cure such inaccuracy or breach during the Purchaser Cure Period (it being understood that the Company   may not terminate this Agreement pursuant to this Section 8.1(g) with respect to such inaccuracy or   breach if such inaccuracy or breach is cured before the expiration of the Purchaser Cure Period); and                (h)  by Purchaser if the Share Purchase Agreement has been terminated.   Notwithstanding  the  foregoing,  prior  to  invoking  the  condition  in Section 6.7 or  terminating  this  Agreement pursuant to Section 8.1(d) on the grounds that the Secondary Share Purchase has been made  illegal, permanently restrained,  enjoined  or otherwise prohibited  “in part”  as described therein, if such  adverse  effect  would  be  avoided  by  the  exercise  of  the  Exclusion  Option  with  respect  to  a  particular  Secondary Seller, then Purchaser shall be required to exercise the Exclusion Option with respect to such  Secondary Seller and exclude from the Purchased Shares the Company Shares referred to opposite the  name of such Secondary Seller in Column D of Schedule I of the Share Purchase Agreement; provided,                                         52    

 

   however, that in no event shall Purchaser be required to exercise the Exclusion Option with respect to  such Secondary Seller if, after giving effect to all exercises of the Exclusion Option by Purchaser, the  aggregate  number  of  Purchased  Shares  (determined  on  an  as-converted-to-Company  Ordinary  Shares  basis), together with the Issued Shares, would represent less than 51% of the total number of Company  Shares  outstanding  immediately  after the  Closing  (after  giving  effect to the  Conversion  Event  and the  Share Issuance).         8.2   Termination Procedures.  If Purchaser wishes to terminate this Agreement pursuant to  Section 8.1, Purchaser shall deliver to the Company a written notice stating that Purchaser is terminating  this  Agreement  and  setting  forth  a  brief  description  of  the  basis  or  bases  on  which  Purchaser  is  terminating this Agreement. If the Company wishes to terminate this Agreement pursuant to Section 8.1,  the  Company  shall  deliver  to  Purchaser  a  written  notice  stating  that  the  Company  is terminating  this  Agreement and setting forth a brief description of the basis or bases on which the Company is terminating  this Agreement.         8.3   Effect  of  Termination.  If  this  Agreement  is  terminated  pursuant  to Section 8.1,  all  further  obligations  of  the  parties  under  this  Agreement  shall  terminate; provided,  however,  that:  (a)  neither the Company nor Purchaser shall be relieved of any obligation or liability arising from any prior  knowing (with scienter under Delaware law) or willful inaccuracy in or breach of any representation and  warranty of such party, or any prior willful breach by such party of any covenant or obligation, contained  in this Agreement; (b) the Company shall, in all events, remain bound by and continue to be subject to the  provisions set forth in Section 5.2; (c) the parties shall, in all events, remain bound by and continue to be  subject to the terms set forth in Section 10 and (d) the parties shall, in all events, remain bound by and  continue to be subject to the Confidentiality Agreement (as amended pursuant to Section 4.1(c)).   9.    INDEMNIFICATION           9.1   Survival of Representations, Warranties and Covenants.                  (a)  General  Survival.   Subject  to Section 9.1(j),  the  General  Company   Representations shall survive the Closing until 11:59 p.m. Central time on the date that is 18 months   after the Closing Date (the “General Representation Expiration Time”); provided, however, that if, at   any  time  on  or  before  the  General  Representation  Expiration  Time,  any  Indemnitee  delivers  to  the   Company a  Notice of Claim asserting a  breach  of or an  inaccuracy in any of the  General Company   Representations,  then  the  claim  asserted  in  such  notice  shall  survive  the  General  Representation   Expiration Time until such time as such claim is fully and finally resolved.                 (b)  Company Compliance Representations.  Subject to Section 9.1(j), the Company   Compliance  Representations  shall  survive  the  Closing  until  11:59  p.m.  Central  time  on  the  third   anniversary  of  the  Closing  Date; provided, however,  that  if,  at  any  time  on  or  before such  third   anniversary, any  Indemnitee delivers  to the  Company a  Notice of Claim asserting a  breach  of or an   inaccuracy in any of the Company Compliance Representations, then the claim asserted in such notice   shall survive such third anniversary until such time as such claim is fully and finally resolved.                (c)  Company  Tax  Representations.   Subject  to Section 9.1(j),  the  Company  Tax   Representations shall survive the Closing until 11:59 p.m. Central time on the date that is 60 days after   the  expiration  of  the  applicable  Tax-related  statute  of  limitations  (as  it  may  be  extended,  it  being   understood  that  any  extension  that  is  voluntarily  granted  by  Purchaser  and  was  not  requested  by  a   Governmental  Entity  shall  be  disregarded)  applicable  to  the  subject  matter  of  the  Company  Tax   Representation in question; provided, however, that if, at any time on or before the applicable expiration   date referred to in this sentence, any Indemnitee delivers to the Company a Notice of Claim asserting a                                          53    

 

breach of or an inaccuracy in any of the Company Tax Representations, then the claim asserted in such  notice shall survive such expiration date until such time as such claim is fully and finally resolved.               (d)  Fundamental  Company  Representations.   Subject  to Section 9.1(j), the  Fundamental Company Representations shall survive the Closing until 11:59 p.m. Central time on the  sixth anniversary of the Closing Date; provided, however, that if, at any time on or before such sixth  anniversary, any  Indemnitee delivers  to the  Company a  Notice of Claim asserting a  breach  of or an  inaccuracy in any of the Fundamental Company Representations, then the claim asserted in such notice  shall survive such sixth anniversary until such time as such claim is fully and finally resolved.               (e)  Covenants and Agreements.                   (i)   Subject  to Section 9.1(e)(ii),  the  rights  of  the  Indemnitees  to  be      indemnified,  compensated  and  reimbursed  with  respect  to  any  breach  of  any  covenant  or       agreement of the Company contained in this Agreement that by its terms is to be performed at or       prior to the Closing shall survive the Closing until 11:59 p.m. Central time on the date that is 18       months after the Closing Date; provided, however, that if, at any time on or before the date that is       18 months after the Closing Date, any Indemnitee delivers to the Company a  Notice of Claim       asserting a breach of any such covenant or agreement by the Company, then the claim asserted in       such notice shall survive until such time as such claim is fully and finally resolved.                     (ii)  Except  as  otherwise  provided  in Sections 9.1(f), 9.1(h) and 9.1(i),  the      rights  of  the  Indemnitees  to  be  indemnified,  compensated  and  reimbursed  with  respect  to  any       breach  of  any  covenant  or  agreement  of  the  Company  that  by  its  terms  is  to  be  performed  in       whole or in part after the Closing, shall survive the Closing until 11:59 p.m. Central time on the       date that is the later of (A) 60 days after the expiration of the applicable statute of limitations (as       it  may  be  extended,  it  being  understood  that  any  extension  that  is  voluntarily  granted  by       Purchaser and was not requested by a Governmental Entity shall be disregarded) applicable to the       subject matter of the particular covenant or agreement in question and (B) the date on which such       covenant  or  agreement  is  fully  performed  (such latest  date,  the  “Covenant  Expiration  Date”);       provided, however, that if, at any time on or before the Covenant Expiration Date, any Indemnitee       delivers to the Company a Notice of Claim asserting a breach of any such covenant or agreement       by the  Company, then  the claim asserted  in such notice  shall survive  the  Covenant Expiration       Date until such time as such claim is fully and finally resolved.                 (f)  Disclosed Pending Legal Proceedings.  The rights of the Indemnitees to be  indemnified, compensated and  reimbursed with respect to any of the matters described in Section  9.2(a)(vii) shall survive the Closing until 11:59 p.m. Central time on  the third anniversary of the  Closing Date; provided, however, that if, at any time on  or before such third anniversary, any  Indemnitee delivers to the Company a  Notice of Claim seeking indemnification, compensation or  reimbursement with respect to any of such matters, then the claim asserted in such notice shall survive  such third anniversary until such time as such claim is fully and finally resolved.                (g)  Purchaser  Representations.  All  representations  and  warranties  made  by  Purchaser  in  this  Agreement  (other  than  the  representation  and  warranty  in  Section 3.&#0;,  which  shall  expire  on the  later  of  the  sixth  anniversary  of  the  Closing  Date  and  the expiration  of  the  applicable  statute  of  limitations)  and  all  covenants  of  Purchaser  in  this  Agreement shall  terminate  and  expire  as  of  the  Closing,  and  any  liability  of  Purchaser  with  respect  to  such representations, warranties  and  covenants  shall  thereupon  cease;  provided,  however,  that  all  covenants  of  Purchaser  to  be  performed  after  the  Closing  shall  remain  in  full  force  and  effect  until  performed  in accordance with  their terms.                                        54  

 

                            (h)  Securityholder  Claims.   The  rights  of  the  Indemnitees  to  be  indemnified,  compensated  and  reimbursed  with  respect  to  any  of  the  matters  described  in Section 9.2(a)(v) shall  survive  the  Closing  until  11:59  p.m.  Central  time  on  the  sixth  anniversary  of  the  Closing  Date;  provided, however, that if, at any time on or before such sixth anniversary, any Indemnitee delivers to  the Company a Notice of Claim seeking indemnification, compensation or reimbursement with respect  to any of such matters, then the claim asserted in such notice shall survive such sixth anniversary until  such time as such claim is fully and finally resolved.               (i)  Non-Meritorious  Claims.   The  rights  of  the  Indemnitees  to  be  indemnified,  compensated and reimbursed with respect to any non-meritorious claim pursuant to Section 9.2(a)(vi)  shall survive the Closing until the expiration date of the claim period under this Section 9.1 that would  apply  if  such  claim  were  meritorious; provided, however,  that  if,  at  any  time  on  or  before  such  expiration date, any Indemnitee delivers to the Company a Notice of Claim seeking indemnification,  compensation or reimbursement with respect to any such matter, then the claim asserted in such notice  shall survive such expiration date until such time as such claim is fully and finally resolved.               (j)  Fraud.  Notwithstanding anything to the contrary contained in this Section 9.1,  the limitations set forth in Sections 9.1(a), 9.1(b), 9.1(c) and 9.1(d) shall not apply in the event of fraud  committed by or on behalf of the Company relating to any of the Company Representations (it being  understood  that  any  claim  for  fraud  may  be  asserted  until the expiration  of the  applicable  statute  of  limitations).               (k)  Representations  Not  Limited.  The  Company  hereby  agrees  that:  (i)  the  Indemnitees’  rights  to  indemnification,  compensation  and  reimbursement  contained  in this Section 9  relating to the representations, warranties and covenants of the Company are part of the basis of the  bargain contemplated by this Agreement; and (ii) such representations, warranties and covenants, and  the  rights  and  remedies  that  may  be  exercised  by  the  Indemnitees  with  respect  thereto,  shall  not  be  waived, limited or otherwise affected by or as a result of (and the Indemnitees shall be deemed to have  relied upon such representations, warranties and covenants notwithstanding) any knowledge on the part  of  any  of  the  Indemnitees  or  any  of  their  respective  Representatives,  regardless  of  whether  such  knowledge  was  obtained  through  any  investigation  by  any  Indemnitee  or  any  Representative  of  any  Indemnitee  or  through  disclosure  by  any  Acquired  Company  or  any  other  Person,  and  regardless  of  whether such knowledge was obtained before or after the execution and delivery of this Agreement (it  being  understood  that  the  representations  and  warranties  made  by  the  Company  in Section 2 are  qualified by the Disclosure Schedule).               (l)  Disclosure Schedule.  For purposes of this Agreement, each statement or other  item of information set forth in a particular part or subpart of the Disclosure Schedule shall (when read  together with the representation or warranty of the Company in the corresponding section or subsection  of  this  Agreement)  be  deemed to  be  a  representation  and  warranty  made  by  the  Company  in  the  corresponding section or subsection of this Agreement.        9.2   Indemnification.                 (a)  Indemnification.  From and after the Closing, subject to the limitations set forth  in  this Section 9 (but  without  limiting  the  rights  of  the  Indemnitees  under  the  indemnification  provisions of the Share Purchase Agreement), the Company shall hold harmless and indemnify each of  the Indemnitees from and against, and shall compensate and reimburse each of the Indemnitees for, any  Damages that are suffered or incurred at any time by any of the Indemnitees or to which any of the  Indemnitees  may  otherwise  directly  or  indirectly  become  subject  at  any  time  (regardless  of  whether                                         55                 

 

                such Damages relate to any third party claim) and which arise directly or indirectly from or are a direct  or indirect result of, or directly or indirectly relate to:                    (i)   any breach of or inaccuracy in any representation or warranty made by       the  Company  in  this  Agreement  as  of  the  Agreement  Date  (without  giving  effect  to  (A)  any       materiality  or  similar  qualification  limiting  the  scope  of  such  representation  or  warranty  (for       clarity,  “Knowledge”  qualifiers, dollar  thresholds,  the  word  “Material”  in  the  terms  “Material       Contract”  and “Material Adverse Effect” and  any materiality qualification used to define  what       constitutes a Material Contract will not be disregarded) or (B) any update of or modification to       the Disclosure Schedule made or purported to have been made on or after the Agreement Date);                    (ii)  any breach of or inaccuracy in (A) any representation or warranty made       by the Company in this Agreement as if such representation or warranty were made at and as of       the Closing (other than representations and warranties which by their terms are made only as of       the Agreement Date or another specific earlier date) or (B) the Company Closing Certificate (in       each case, without giving effect to (1) any materiality or similar qualification limiting the scope       of  such  representation  or  warranty  (for  clarity,  “Knowledge”  qualifiers,  dollar  thresholds,  the       word  “Material”  in  the  terms  “Material  Contract”  and  “Material  Adverse  Effect”  and  any       materiality  qualification  used  to  define  what  constitutes  a  Material  Contract  will  not  be       disregarded) or (2) any update of or modification to the Disclosure Schedule made or purported to       have been made on or after the Agreement Date);                    (iii) regardless  of  the  disclosure  of  any  matter  set  forth  in  the  Disclosure       Schedule, any inaccuracy in any information set forth in the Company Consideration Spreadsheet,       including any inaccuracy or failure to calculate properly any amount set forth in the Company       Consideration Spreadsheet;                    (iv)  any  breach  of  any  covenant or  agreement  of  the  Company  in  this       Agreement;                    (v)   regardless  of  the  disclosure  of  any  matter  set  forth  in  the  Disclosure       Schedule,  any  claim  asserted  or  held  by  any  current,  former  or  alleged  securityholder  of  any       Acquired Company (A) relating to this Agreement, any other Transaction Document or any of the       Contemplated Transactions or any failure or alleged failure to comply with any provision of the       Charter  Documents  of  any  Acquired  Company  or  the  Existing  Shareholders’  Agreement,  (B)       alleging  any  ownership of,  interest  in  or  right  to  acquire  any  shares  or  other  securities  of  any       Acquired Company or (C) that is in any way inconsistent with, or that involves an allegation of       facts  inconsistent  with,  any  of  the  information  set  forth  in Section 2.3,  in Part 2.3 of  the       Disclosure Schedule or in the Company Consideration Spreadsheet;                     (vi)  subject to Section 9.3(c)(ii), 50% of all fees (including attorneys’ fees),       charges, costs (including costs of investigation) and expenses relating to the defense of any non-      meritorious claim asserted or held by any Person that, if meritorious, would otherwise entitle an       Indemnitee to indemnification, compensation or reimbursement under this Section 9.2(a) (except       that 100% of all fees (including attorneys’ fees), charges, costs (including costs of investigation)       and expenses relating to the defense of any claim (whether meritorious or non-meritorious) of the       type referred to in Section 9.2(a)(v) will be indemnified, compensated and reimbursed);                     (vii) any Legal Proceeding referred to in Part 2.14(c) or Part 2.19(a)-1 of the       Disclosure Schedule; or                                         56                 

 

                                 (viii) regardless  of  the  disclosure  of  any  matter  set  forth  in  the  Disclosure       Schedule,  any  fraud  committed  by  or  on  behalf  of  the  Company  relating  to  any  Company       Representation.               (b)  Damage to Purchaser.                      (i)   The parties acknowledge and agree that if an Acquired Company suffers,       incurs or otherwise becomes subject to any Damages as a result of, or in connection with, any       breach of or inaccuracy in any representation, warranty, covenant or obligation set forth in this       Agreement or in connection with any matter referred to in Section 9.2(a), then, without limiting       the amount of any other Damages that Purchaser or any other Indemnitee may suffer, incur or       otherwise  become  subject to (other than  Purchaser Derivative  Damages), Purchaser and Parent       shall  be  deemed,  by  virtue  of  Purchaser’s  purchase  of  the  Issued  Shares,  to  have  incurred       Damages  in  an  amount  equal  to  (i)  the  aggregate  dollar  amount  of  the  Damages  suffered  or       incurred by such Acquired Company or to which such Acquired Company has otherwise become       subject, multiplied by (ii) the Primary Post-Issuance Ownership Percentage.                     (ii)  The parties acknowledge and agree that if an Indemnitee suffers, incurs       or otherwise becomes subject to any Damages (other than Purchaser Derivative Damages) as a       result of any matter referred to in Section 9.2(a), then: (A) the Company shall hold harmless and       indemnify  such  Indemnitee  from  and  against,  and  shall  compensate  and  reimburse  such       Indemnitee for, the dollar amount of such Damages multiplied by the Primary Specified Fraction       (it  being  understood and  agreed  that  the  Secondary  Sellers  shall  hold  harmless  and  indemnify       such Indemnitee from and against, and shall compensate and reimburse such Indemnitee for, the       remaining portion of such Damages); and (B) for purposes of determining whether the Threshold       Amount  specified  in Section 9.3(a) is  satisfied  only,  such  Indemnitee  will  be  deemed  to  have       incurred Damages in an amount equal to the dollar amount of such Damages multiplied by the       Primary Allocation Gross-Up Factor.                     (iii) For purposes of determining the amount of the indemnification payment       to  be  made  by  the  Company  to  an  Indemnitee pursuant  to Section 9.2(a),  the  amount  of  any       Damages  incurred  by  such  Indemnitee  (including  any  Purchaser  Derivative  Damages  and  any       Damages described in Section 9.2(b)(ii) (calculated after giving effect to clause “(A)” of Section       9.2(b)(ii))) shall be “grossed up” by multiplying the aggregate amount of such Damages by the       Indemnification Gross-Up Factor.        9.3   Limitations.               (a)  Threshold.  Subject to Section 9.3(b), the Company shall not be required to make  any  indemnification  payment  pursuant  to Section 9.2(a)(i) or  Section 9.2(a)(ii) for  any  breach  of  or  inaccuracy  in  any  General  Company  Representation or  any  Company  Compliance  Representation  or  pursuant  to Section 9.2(a)(vi) (with  respect  to  breaches  of  or  inaccuracies  in  representations  and  warranties to which the Threshold Amount is applicable) or Section 9.2(a)(vii) (with respect to Legal  Proceedings  identified  on Part 2.14(c) or Part 2.19(a)-1 of  the  Disclosure  Schedule  that  are  not  Specified Tax Proceedings) until such time as the total amount of all Damages that have been directly  or indirectly suffered or incurred by any one or more of the Indemnitees, or to which any one or more  of the Indemnitees has or have otherwise directly or indirectly become subject, in connection with any  breach of or inaccuracy in any of the General Company Representations or the Company Compliance  Representations  or  in  connection  with  the  matters  referred  to  in Section 9.2(a)(vi) (with  respect to  breaches  of  or  inaccuracies  in  representations  and  warranties  to  which  the  Threshold  Amount  is  applicable) or Section 9.2(a)(vii) (with respect to Legal Proceedings identified on Part 2.14(c) or Part                                        57                 

 

                2.19(a)-1 of the Disclosure Schedule that are not Specified Tax Proceedings) exceeds $7,500,000 in the  aggregate  for  all  such  Damages  (the  “Threshold  Amount”). If  the  total  amount  of  such  Damages  exceeds  the  Threshold  Amount,  then:  (i)  with  respect  to  the  first  $7,500,000  of  such  aggregate  Damages, the Indemnitees shall be entitled to be indemnified against and compensated and reimbursed  for  $3,750,000  of  such  Damages;  and  (ii)  with  respect  to  the  portion  of  such  aggregate  Damages  exceeding the  Threshold  Amount,  the  Indemnitees  shall  be  entitled  to  be  indemnified  against  and  compensated and reimbursed for the entire amount of such Damages.                 (b)  Applicability of Threshold.  For the avoidance of doubt, the limitation set forth in  Section 9.3(a) shall  not  apply  to  (and  shall  not  limit  the  indemnification  or  other  obligations  of  the  Company  for  or  with  respect  to):  (i)  breaches  of  or  inaccuracies  in  any  of  the  Company  Tax  Representations  or  any  of the  Fundamental  Company  Representations;  (ii)  the  matters  referred  to  in  Sections 9.2(a)(iii), 9.2(a)(iv), 9.2(a)(v), 9.2(a)(vi) (with  respect  to  breaches  of  or  inaccuracies  in  representations  and  warranties  to  which  the  Threshold  Amount  is  not  applicable), 9.2(a)(vii) (with  respect to Specified Tax Proceedings) and 9.2(a)(viii).                (c)  Certain Other Limitations.                      (i)   The  Company  shall  not  be  required  to  make  any  indemnification       payment pursuant to Section 9.2(a)(vii) with respect to any Specified Tax Proceeding until such       time as the total amount of all Damages (calculated after giving effect to Section 9.2(b)(i)) that       have been directly or indirectly suffered or incurred by any one or more of the Indemnitees, or to       which any one or more of the Indemnitees has or have otherwise directly or indirectly become       subject, in connection with Specified Tax Proceedings exceeds an amount equal to $53,000,000       multiplied  by the  Primary  Post-Issuance  Ownership  Percentage  (the  “Apportioned  Litigation       Reserve  Amount”).  If  the  total  amount  of  such  Damages  with  respect  to  Specified  Tax       Proceedings exceeds the Apportioned Litigation Reserve Amount, then (subject to the limitations       set  forth  in Section 9.3(a)),  the  Indemnitees  shall  be  entitled  to  be  indemnified  against  and       compensated  and  reimbursed  for  the  portion  of  such  aggregate  Damages  that  exceeds  the       Apportioned Litigation Reserve Amount.                     (ii)  Notwithstanding  anything  to  the  contrary  contained  in  this  Agreement:       (A) any indemnification, compensation or reimbursement sought under Section 9.2(a)(vi) for a       non-meritorious claim will be subject to the same limits under this Section 9.3 that would apply if       such claim were meritorious; (B) in the event of the assertion or commencement by any Person of       any claim or Legal Proceeding against an Acquired Company with respect to which the Company       is obligated to hold harmless, indemnify, compensate or reimburse any Indemnitee pursuant to       Section 9.2(a)(vi), the aggregate amount of Damages that Purchaser and Parent will be deemed to       have suffered, incurred or otherwise become subject to for purposes of Section 9.2(a)(vi) will be       calculated  after  giving  effect  to Section 9.2(b)(i);  and  (C)  in  the  event  of  the  assertion  or       commencement by any Person of any claim or Legal Proceeding against Purchaser with respect to       which  the  Company is  obligated  to  hold  harmless,  indemnify,  compensate  or  reimburse  any       Indemnitee pursuant to Section 9.2(a)(vi), the aggregate amount of Damages that Purchaser will       be  deemed  to  have  suffered,  incurred  or  otherwise  become  subject  to  for  purposes  of       Section 9.2(a)(vi) will be calculated after giving effect to clause “(A)” of Section 9.2(b)(ii).               (d)  Liability Cap.  Subject to Section 10.2, the total dollar amount of indemnification  payments  that  the  Company  shall  be  required  to  make  to  the  Indemnitees  pursuant to Section 9.2(a)  (other  than Section 9.2(a)(viii)( shall  be  limited  to  an  amount  equal  to  the  Aggregate  Investment  Amount.  For the avoidance of doubt, the limitation set forth in the immediately preceding sentence                                         58                 

 

                shall not apply to (and shall not limit the indemnification or other obligations of the Company for or  with respect to) any matter referred to in Section 9.2(a)(viii).         9.4   Defense of Third Party Claims.                 (a)  In the event of the assertion or commencement by any Person of any claim or  Legal Proceeding against Purchaser or any other Indemnitee with respect to which the Company may  become obligated to hold harmless, indemnify, compensate or reimburse any Indemnitee pursuant to  this Section 9, Purchaser shall proceed with the defense of such claim or Legal Proceeding on its own.  In connection with the defense of any such claim or Legal Proceeding:                     (i)   the  Company  shall  make  available  to  Purchaser  any  documents  and       materials  in any  Acquired Company’s  possession  or control  or  in  the  control  of  any  Acquired       Company’s  Representatives  that  may  be  necessary  to  the  defense  of  such  claim  or  Legal       Proceeding;                     (ii)  the Company shall  be  entitled,  at  its  own  expense (A)  to  consult  with       Purchaser with respect to, but not to determine or conduct, the defense of such claim and (B) to       receive  copies  of  complaints,  pleadings,  notices  and  material  written  communications  with       respect to  such  claim; provided, however,  that  Purchaser  shall  not  be  required  to  disclose  any       information to the Company if such disclosure would reasonably be expected to jeopardize the       protection of the attorney-client privilege, work product or similar protection or other applicable       legal privilege; and                    (iii) Purchaser shall have the right to settle, adjust or compromise such claim       or  Legal  Proceeding; provided, however, that  if  Purchaser  settles,  adjusts  or  compromises  any       such claim or Legal Proceeding without the consent of the Company, such settlement, adjustment       or compromise shall not be determinative of the amount of Damages incurred by the Indemnitee       in connection with such claim or Legal Proceeding.    Purchaser  shall  give  the Company prompt  notice  of  the  commencement  of  any  Legal  Proceeding  against Purchaser  with  respect  to  which  Purchaser  intends  to  demand  indemnification  from  the  Company; provided, however, that any failure  on the  part of Purchaser to so notify the Company of  such  Legal  Proceeding  shall  not  limit  any  of the  obligations  of  the  Company  under  this Section 9.4  (except to the extent such failure materially prejudices the defense of such Legal Proceeding).               (b)  In the event of the assertion or commencement by any Person of any claim or  Legal  Proceeding  against  an  Acquired  Company  with  respect  to  which  the  Company  may  become  obligated  to  hold  harmless,  indemnify,  compensate  or  reimburse  any  Indemnitee  pursuant  to  this  Section 9,  (x)  the  Company  shall  defend  such  claim  or  Legal  Proceeding  with  counsel  selected  by  Purchaser, (y) Purchaser shall have the sole and absolute right and authority to determine and conduct  the defense of such claim or Legal Proceeding, including with respect to any decision to settle, adjust or  compromise such claim or Legal Proceeding, and no Consent or approval of the Company, the board of  directors  of  the  Company  (or  any  committee  thereof)  or  any  shareholder  of  the  Company  will  be  required  for  any  action  taken  by  Purchaser  pursuant  to  this  clause  “(y)”  and  (z) all  fees  (including  attorneys’ fees), charges, costs (including costs of investigation) and expenses relating to the defense of  such claim or Legal Proceeding shall be  borne and paid exclusively by the Company.  In connection  with the defense of any such claim or Legal Proceeding:                     (i)   the  Company  shall  make  available  to  Purchaser  any  documents  and       materials in any  Acquired Company’s  possession  or control  or  in  the  control  of  any  Acquired                                         59                 

 

         Company’s  Representatives  that  may  be  necessary  to  the  defense  of  such  claim  or  Legal        Proceeding; and                     (ii)  Purchaser shall have the right to settle, adjust or compromise such claim        or Legal Proceeding on behalf of the applicable Acquired Company; provided, however, that if        Purchaser  settles,  adjusts  or  compromises  any  such  claim  or  Legal  Proceeding  without  the        consent of the Company, such settlement, adjustment or compromise shall not be determinative        of the amount of Damages incurred by the Indemnitee in connection with such claim or Legal        Proceeding.     The Company shall give Purchaser prompt notice of the assertion of any claim or the commencement of   any Legal Proceeding against any Acquired Company with respect to which the Company may become   obligated  to  hold  harmless,  indemnify,  compensate  or  reimburse  any  Indemnitee  pursuant  to  this   Section 9.         9.5   Indemnification  Claim  Procedure.  Any  claim  for  indemnification,  compensation  or  reimbursement pursuant to Section 9 shall be brought and resolved exclusively as follows (and, at the  option of any Indemnitee, any claim based upon fraud may be brought and resolved as follows):                (a)  Notice of Claim.  If any Indemnitee has or claims to have incurred, paid, accrued,   reserved or suffered, or believes in good faith that it may incur, pay, accrue, reserve or suffer, Damages   for which it is or may be entitled to be held harmless, indemnified, compensated or reimbursed under   Section 9.2 (or  for  which  it  is  or  may  be  entitled  to  a  monetary  remedy  in  the  case  of  fraud),  such   Indemnitee may deliver a notice of claim (a “Notice of Claim”) to the Company. Each Notice of Claim   shall: (i) contain a brief description of the facts and circumstances supporting such Indemnitee’s claim;   and (ii) if practicable, contain a good faith, non-binding, preliminary estimate of the amount to which   the Indemnitee might be entitled (the aggregate amount of such estimate, as it may be modified by such   Indemnitee in good faith from time to time, being referred to as the “Claimed Amount”). The Company   hereby waives, and agrees not to assert, any right or defense it might otherwise have in connection with   any delay by Purchaser or any other Indemnitee in delivering a Notice of Claim, including the defense   of laches and any similar defense, notwithstanding any prejudice such delay may cause to the interests   of the Company.                (b)  Dispute Procedure.  During the 30-day period commencing upon delivery by an   Indemnitee to the Company of a Notice of Claim (the “Dispute Period”), the Company may deliver to   the Indemnitee who delivered the Notice of Claim a written response (the “Response Notice”) in which   the Company: (i) agrees that the full Claimed Amount is owed to the Indemnitee; (ii) agrees that part,   but  not  all,  of  the  Claimed  Amount  is  owed  to  the  Indemnitee;  or  (iii) indicates  that  no  part  of  the   Claimed  Amount is  owed to the Indemnitee. If the Response  Notice is delivered  in accordance with   clause “(ii)” or clause “(iii)” of the preceding sentence, the Response Notice shall also contain a brief   description of the facts and circumstances supporting the Company’s claim that only a portion or no   part of the Claimed Amount is owed to the Indemnitee, as the case may be. Any part of the Claimed   Amount that is not agreed to be owed to the Indemnitee pursuant to the Response Notice (or the entire   Claimed Amount, if the Company asserts in the Response Notice that no part of the Claimed Amount is   owed  to  the  Indemnitee)  is  referred  to  as  the  “Contested  Amount”  (it  being  understood  that  the   Contested Amount shall be modified from time to time to reflect any good faith modifications by the   Indemnitee to the Claimed Amount). If a Response Notice is not received by the Indemnitee before the   expiration of the Dispute Period, then the Company shall be conclusively deemed to have agreed that   the full Claimed Amount is owed to the Indemnitee.                                          60    

 

                            (c)  Payment of Claimed Amount.  If: (i) the Company delivers a Response Notice to  the Indemnitee agreeing that the full Claimed Amount is owed to the Indemnitee; or (ii) the Company  does  not  deliver  a  Response  Notice  during  the  Dispute  Period,  then the  Company  shall,  within  10  Business Days following the earlier of the delivery of such Response Notice and the expiration of the  Dispute Period, pay the Claimed Amount to the Indemnitee.               (d)  Payment of Agreed Amount.  If the Company delivers a Response Notice to the  Indemnitee during the Dispute Period agreeing that less than the full Claimed Amount is owed to the  Indemnitee (the “Agreed Amount”), then the Company shall, within 10 Business Days following the  delivery of such Response Notice, pay the Agreed Amount to the Indemnitee.               (e)  Resolution Between the Parties.  If the Company delivers a Response Notice to  the Indemnitee during the Dispute Period indicating that there is a Contested Amount, the Company and  the Indemnitee shall attempt in good faith to resolve the dispute related to the Contested Amount. If the  Indemnitee and the Company resolve such dispute, then their resolution of such dispute shall be binding  on the Company and such Indemnitee, and a settlement agreement stipulating the amount owed to the  Indemnitee  (the  “Stipulated  Amount”)  shall  be  signed  by  the  Indemnitee and  the  Company.  The  Company shall, within 10 Business Days following the execution of such settlement agreement (or such  shorter period of time as may be set forth in the settlement agreement), pay the Stipulated Amount to  the Indemnitee.               (f)  Arbitration.  If the Company and the Indemnitee are unable to resolve the dispute  relating  to  any  Contested  Amount  during  the  30-day  period  commencing  upon  the  delivery  of  the  Response Notice to the Indemnitee, then the Company or the Indemnitee may refer such dispute (an  “Arbitrable  Indemnification  Dispute”)  to  final  and  binding  arbitration  for  resolution; provided,  however, that (i) in no event shall there be more than one arbitration proceeding relating to any fact,  event, circumstance or occurrence (or series of related facts, events, circumstances or occurrences) that  is the subject of both a claim for indemnification, compensation or reimbursement under Section 9.2(a)  and a §9.2(a) Claim (as such term is defined in the Share Purchase Agreement) and (ii) the existence of  any settlement of, or payment with respect to, any indemnification claim under Section 9.2(a) of the  Share Purchase Agreement shall not be used as evidence of the validity of any indemnification claim  against the Company under this Agreement or of the amount of Damages associated with such claim  against  the  Company  under  this  Agreement.  Notwithstanding  the  immediately  preceding  sentence,  nothing in this Section 9.5(f) shall prevent the Indemnitee from seeking preliminary injunctive relief or  other  equitable  relief  from  a  court  of  competent  jurisdiction  pending  settlement  of  any  Arbitrable  Indemnification Dispute.                    (i)   Except  as  otherwise  provided  in  this  Agreement,  any  Arbitrable       Indemnification  Dispute  shall  be  resolved  by  arbitration  in San  Francisco  County,  California,       USA in accordance with JAMS Rules. However, in all events, the provisions contained in this       Agreement shall govern over any conflicting rules which may now or hereafter be contained in       the JAMS Rules. Any judgment upon the award rendered by the arbitrator may be entered in any       court having jurisdiction over the subject matter thereof. The arbitrator shall have the authority to       grant any equitable and legal remedies that would be available if any judicial proceeding were       instituted to resolve an Arbitrable Indemnification Dispute. The existence of such arbitration and       all submissions, correspondence and evidence relating to the arbitration proceedings shall be kept       confidential by the Company; provided, however, that the Company may discuss the arbitration       with those of its advisors who agree in writing to keep the existence of such arbitration and the       terms of such Arbitrable Indemnification Dispute confidential.                                         61                 

 

                            (ii)  Any  such  arbitration  will  be  conducted  before  a  single  arbitrator  who  satisfies the criteria set forth in Section 9.5(f)(iv). The arbitrator will be compensated for his or  her  services  at  a  rate  to  be  determined  by  the  Indemnitee  and  the  Company  or  by  JAMS,  but  based upon reasonable hourly or daily consulting rates for the arbitrator in the event the parties  are not able to agree upon his or her rate of compensation.               (iii) The arbitrator shall be mutually agreed upon by the Indemnitee and the  Company. In the event the Indemnitee and the Company are unable to agree on the selection of an  arbitrator  within  20  days  following  submission  of  the  dispute  to  JAMS  by  one  of  the  parties,  JAMS  will  have  the  authority  to  select  an  arbitrator  from  a  list  of  arbitrators  who  satisfy  the  criteria set forth in Section 9.5(f)(iv).               (iv)  The arbitrator shall not have any past or current family, business or other  relationship  with  the  Indemnitee,  any  Acquired  Company  or  any  Affiliate,  director  or  officer  thereof,  unless,  following  full  disclosure  of  all  such  relationships,  the  Indemnitee  and  the  Company  agree  in  writing  to  waive  such  requirement.  In  addition,  unless  otherwise  agreed  to  between the Indemnitee and the Company in writing, the arbitrator shall have at least 15 years’  experience  in  the  negotiation  of  definitive  merger  and  acquisition  agreements  governed  by  Delaware law involving privately held acquisition targets; provided, however, that if JAMS is not  able  to  provide  an  arbitrator  for  such  arbitration  with  the  requisite  experience  set forth  in  this  clause “(iv),” such arbitrator shall be a retired Article III U.S. Federal District Court judge.                (v)   The arbitrator shall be instructed to hold up to three days of eight-hour  hearings regarding the disputed matter within 60 days of his or her appointment and to render an  award no later than 30 days after the conclusion of such hearings, in each case unless otherwise  mutually  agreed  in  writing  by  the  Indemnitee  and  the  Company.  The  final  decision  of  the  arbitrator: (A) shall include the amount of the award to the Indemnitee (the “Award Amount”), if  any; (B) shall be furnished to the Company and the Indemnitee in writing; and (C) shall constitute  a final, non-appealable and conclusive determination of the issue(s) in question, shall be binding  upon the Company and the Indemnitee and shall not be contested by any of them.               (vi)  No discovery other than an exchange of relevant documents may occur  in any arbitration commenced under the provisions of this Section 9.5(f). The Indemnitee and the  Company agree to act in good faith to promptly exchange relevant documents.               (vii) The Indemnitee and the Company will each pay 50% of the arbitration  fees and initial compensation to be paid to the arbitrator in any such arbitration and 50% of the  costs  of  transcripts  and  other  normal  and  regular  expenses  of  the  arbitration  proceedings;  provided, however, that: (A) the prevailing party in any arbitration will be entitled to an award of  attorneys’ fees and costs; and (B) all costs of arbitration, other than those provided for above, will  be paid by the losing party, and the arbitrator will be authorized to determine the identity of the  prevailing party and the losing party. If an Indemnitee is found to be the prevailing party in any  arbitration, the  amount  of the  fees  and  expenses  of  such  Indemnitee  payable  by  the Company  pursuant to this clause “(vii)” shall be added to the Award Amount.               (viii) The arbitrator will be authorized to determine whether, and at what rate,  interest should accrue on the Award Amount. The amount of such accrued interest, if any, shall  be added to the Award Amount.                                    62                 

 

                     (ix)  The arbitrator chosen in accordance with these provisions will not have        the power to alter, amend or otherwise affect the terms of these arbitration provisions or any other        provisions contained in this Section 9.5 or elsewhere in this Agreement.                (g)  Payment of Award Amount.  Upon resolution of an Arbitrable Indemnification   Dispute, the Company shall, within 10 Business Days following the delivery of the final decision of the   arbitrator,  or  such  shorter  period  of  time  as  may  be  set  forth  in  the  final  decision,  pay  the  Award   Amount to the Indemnitee. Any ruling or decision of the arbitrator may be enforced in any court of   competent jurisdiction.                (h)  Default  of  Payment  Obligations.   If  the  Company  fails  to  pay  when  due  any   amount finally determined to be payable to any Indemnitee pursuant to this Section 9.5 and such failure   continues unremedied for a period of 30 days after Purchaser notifies the Company in writing of such   default,  then  (without  limiting  any  of  the  other  remedies  exercisable  by  the  Indemnitee) in  lieu  of   paying the amount payable in cash, the Company shall, if requested by Purchaser, issue to Purchaser a   number of Company Ordinary Shares equal to the amount determined by dividing (i) the dollar amount   of such overdue payment, by (ii) an amount equal to the lower of (A) the Price Per Primary Share and   (B) the fair market value of a Company Ordinary Share on the date such overdue amount was originally   required to be paid, as determined by Purchaser in good faith.                (i)  Conversion of Damages Amounts.  For purposes of determining (i) whether the   limitations  set  forth  in Section 9.3 have  been  satisfied  and  (ii)  the  amount  of  Damages  suffered  or   incurred in connection with any claim for indemnification, compensation or reimbursement pursuant to   this Section 9, any amount of Damages that is denominated in a currency other than dollars shall be   converted into dollars using the average of the applicable daily exchange rates over the period of five   consecutive  Business  Days  ending  on  the  date  that  is  two  Business  Days  before  the  date  that  such   amount is determined to be owed to the applicable Indemnitee in accordance with this Section 9.5, as   such exchange rates are reported on the Financial Times website at FT.com.         9.6   Exclusive  Remedy.  Subject to Section 10.2,  except  for  equitable  remedies,  from  and  after the Closing, the rights to indemnification, compensation and reimbursement set forth in this Section  9 and  in  Section  9  of  the  Share  Purchase  Agreement  shall  be  the  sole  and  exclusive  post-Closing  monetary remedy of the Indemnitees for any Damages resulting from or arising out of any breach of this  Agreement by the Company. For clarity, this means that the survival periods and liability limits set forth  in this Section 9 and in Section 9 of the  Share  Purchase  Agreement shall control notwithstanding any  statutory or common law provisions or principles to the contrary; provided, however, that nothing in this  Section 9.6 shall limit the liability that any Person may have at law or in equity based on such Person’s  commission of or participation in fraud.         9.7   Exercise of Remedies Other Than by Purchaser.  No Indemnitee (other than Purchaser  or  any  successor  thereto  or  assign  thereof)  shall  be  permitted  to  assert  any  indemnification  claim  or  exercise  any  other  remedy  under  this  Agreement  unless  Purchaser  (or  any  successor  thereto  or  assign  thereof)  shall  have  consented  to  the  assertion  of  such  claim  for  indemnification,  compensation  or  reimbursement or the exercise of such other remedy.         9.8   Recoveries.                  (a)  Subject to the next sentence, the parties acknowledge the existence of a duty to   mitigate  damages under the  common law of the  State  of Delaware.  Notwithstanding anything to the   contrary contained in this Section 9.8 or elsewhere in this Agreement, no Indemnitee shall have any                                          63    

 

    obligation to seek recovery under any insurance policy or against any third party or to obtain insurance   coverage or other third party protection with respect to any matter.                (b)  In order to avoid a “windfall” double recovery on the part of the Indemnitees, the   parties  agree  that:  (i)  the  Indemnitees  shall  not  be  entitled  to  recover  more  than  once  for  the  same   Damages under Section 9.2(a) (it being understood that multiple Indemnitees may each suffer or incur   separate Damages in connection with the same event, facts or circumstances); and (ii) subject to Section   9.8(a), in determining the amount of any Damages for which an Indemnitee is entitled to assert a claim   for indemnification, compensation or reimbursement pursuant to this Section 9, the amount of any such   Damages  shall  be  reduced  by  the  net  amount  of  any  insurance  proceeds  or  other  third  party   indemnification or contribution payments actually received by such Indemnitee as a result of and with   respect  to  such  Damages  under  any  insurance  policy  of  the  Company  or  under  any  third  party   indemnification or contribution arrangement in favor of the  Company in existence as of the  Closing   (with the  net amount of such  Damages calculated  after giving effect to any applicable  deductible  or   retention  and  any  costs  of  recovery,  including  premium  increases  (retroactive  or  otherwise),  any   reimbursement obligation and  any  other  cost related  to the  applicable  insurance  claim  or third  party   indemnification  or  contribution  claim); provided,  however,  that  if  any  Indemnitee  is  indemnified,   compensated or reimbursed pursuant to this Section 9 by the Company with respect to any Damages   and  thereafter  receives  a  payment  from  any  insurance  policy  or  third  party  indemnification  or   contribution  arrangement  referred  to  in  this  clause  “(ii)”  as  a  result  of  and  with  respect  to  such   Damages,  then  the  amount  recovered  from  such  insurance  policy  or  third  party  (up  to  the  amount   recovered  from  the  Company with  respect  to  such  Damages)  shall  be  paid  to  the  Company  by   Purchaser.         9.9   Company  Actions.  Except  as  otherwise  provided  in Section 9.4, all  decisions  and  actions of the  Company under Sections 9.4 and 9.5 will be taken  at the direction of the  Related Party  Transactions Committee (as such term is defined in the New Shareholders’ Agreement).   10.   MISCELLANEOUS PROVISIONS          10.1  Further Assurances.  Each party hereto shall execute and cause to be delivered to each  other party hereto such instruments and other documents, and shall take such other actions, as such other  party may reasonably request (at or after the Closing) for the purpose of carrying out or evidencing any of  the Contemplated Transactions.         10.2  No Waiver Relating to Claims for Fraud.  The liability of any Person under Section 9  will be in addition to, and not exclusive of, any other liability that such Person may have at law or in  equity based on such Person’s commission of or participation in fraud. Notwithstanding anything to the  contrary contained in this Agreement, none of the provisions set forth in this Agreement, including the  provisions set forth in Section 9, shall be deemed a waiver by any Indemnitee of any tort right or remedy  which such Indemnitee may have at law or in equity based on the commission of or participation by such  Person  or  any  of such  Person’s  directors,  officers,  employees  or  agents  in  fraud,  nor  will  any  such  provision limit, or be deemed to limit: (a) the amounts of recovery sought or awarded in any such claim  for fraud; (b) the time period during which a claim for fraud may be brought; or (c) the recourse which  any Indemnitee may seek against such Person with respect to such a claim for fraud.         10.3  Fees and Expenses.  Subject to Section 9, each party to this Agreement shall bear and  pay all fees, costs and expenses that have been incurred or that are incurred in the future by such party in  connection with the Contemplated Transactions, including all fees, costs and expenses incurred by such  party in connection with or by virtue of: (a) the investigation and review conducted by Purchaser and its  Representatives with respect to the Acquired Companies’ businesses (and the furnishing of information to                                         64    

 

   Purchaser and its Representatives in connection with such investigation and review); (b) the negotiation,  preparation  and  review  of  this  Agreement  (including  the  Disclosure  Schedule)  and  all  agreements,  certificates  and  other  instruments  and  documents  delivered  or  to  be  delivered  in  connection  with  the  Contemplated Transactions; (c) the preparation and submission of any filing or notice required to be made  or  given  in  connection  with  any  of  the  Contemplated  Transactions,  and  the  obtaining  of  any  Consent  required to be  obtained  in connection with any of such  transactions; and  (d) the  consummation of the  Contemplated Transactions.         10.4  Attorneys’ Fees.  If any legal proceeding relating to this Agreement or the enforcement  of any provision of this Agreement (other than with respect to a claim for indemnification, compensation  or reimbursement pursuant to Section 9 that is brought and resolved in accordance with Section 9.5) is  brought  by  any  Indemnitee  against  any  party  hereto,  the  prevailing  party  shall  be  entitled  to  recover  reasonable attorneys’ fees, costs and disbursements (in addition to any other relief to which the prevailing  party may be entitled).         10.5  Notices.  Any notice or other communication required or permitted to be delivered to any  party  under  this  Agreement  shall  be  in  writing  and  shall  be  deemed  properly  delivered,  given  and  received: (a) if delivered by hand, when delivered; (b) if sent on a Business Day by facsimile transmission  before 5:00 p.m. (recipient’s time) on the day sent by facsimile transmission and receipt is confirmed, on  the  date  on  which  receipt  is  confirmed;  (c)  if  sent  by  facsimile  transmission  on  a  day  other  than  a  Business Day and receipt is confirmed, or if sent by facsimile transmission after 5:00 p.m. (recipient’s  time) on the day sent by facsimile transmission and receipt is confirmed, on the Business Day following  the date on which receipt is confirmed; and (d) if sent via an international courier service, three Business  Days after being delivered to such courier, in each case to the address set forth beneath the name of such  party below (or to such other address as such party shall have specified in a written notice given to the  other parties hereto):               If to Purchaser or Parent:                                        Wal-Mart International Holdings, Inc.                     c/o Walmart Inc.                    702 SW 8th Street, MS 0215                    Bentonville, Arkansas 72716-0215                    Attention:  Senior Vice President – General Counsel, Walmart International                    Facsimile:  (479) 277-5991                            with copies (which shall not constitute notice) to:                                        Walmart Inc.                    Unit 620, 6/F, 100 QRC, 100 Queen’s Road                    Central, Hong Kong                    Attention:  Senior Vice President – General Counsel, Walmart Asia                    Facsimile:  +852 25768900                                  Walmart Inc.                    702 SW 8th Street, MS 0215                    Bentonville, Arkansas 72716-0215                    Attention:  Vice President – General Counsel, Corporate                    Facsimile:  (479) 277-5991                                                        65    

 

                     Hogan Lovells US LLP                    4085 Campbell Avenue, Suite 100                    Menlo Park, CA 94025                    United States                     Attention:  Richard E. Climan                                      Christopher R. Moore                    Facsimile:  650-463-4199               If to the Company before the Closing:                                        Flipkart Private Limited                    80 Raffles Place                    #32-02 UOB Plaza 1                    Singapore 048624                    Attention:  Rajnish Baweja                                   with copies (which shall not constitute notice) to:                                        Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP                    220 West 42nd Street, 17th Floor                    New York, NY 10036                    United States                     Attention:  Steven L. Baglio, Andrew Y. Luh, Ferish P. Patel, Jonathan C.                    Pentzien and John H. Olson                    Facsimile:  877-881-0530               If to the Company after the Closing:                                        Flipkart Private Limited                    80 Raffles Place                    #32-02 UOB Plaza 1                    Singapore 048624                    Attention:  Rajnish Baweja                                           10.6  Headings.  The  bold-faced  headings  and  the  underlined  headings  contained  in  this  Agreement are for convenience of reference only, shall not be deemed to be a part of this Agreement and  shall not be referred to in connection with the construction or interpretation of this Agreement.         10.7  Counterparts  and  Exchanges  by  Electronic  Transmission  or  Facsimile.  This  Agreement may be executed in several counterparts, each of which shall constitute an original and all of  which, when taken together, shall constitute one agreement. The exchange of a fully executed Agreement  (in counterparts or otherwise) by electronic transmission in .PDF format or by facsimile shall be sufficient  to bind the parties to the terms of this Agreement.          10.8  Governing Law; Dispute Resolution.                  (a)  Governing  Law.   This  Agreement  shall  be  governed  by  and  construed  and   interpreted  in  accordance  with  the  laws  of  the  state  of  Delaware  irrespective  of  the  choice  of  laws                                          66    

 

    principles of the state of Delaware, as to all matters, including matters of validity, construction, effect,   enforceability,  performance  and  remedies  and  in  respect  of  the  statute  of  limitations  or  any  other   limitations period applicable to any claim, controversy or dispute.                (b)  Indemnification  Claims.   Any  claim  for  indemnification,  compensation  or   reimbursement  pursuant  to Section 9 shall  be  brought  and  resolved  (and,  at  the  option  of  any   Indemnitee, any claim made after the Closing based upon fraud relating to this Agreement or any of the   Contemplated  Transactions  may  be  brought  and  resolved)  in  accordance  with Section 9.5 (it  being   understood that, for the avoidance of doubt and without limiting the effect of Section 10.8(c): (i) at the   option of any Indemnitee, any claim based upon fraud against a Person who committed or participated   in such fraud may be brought and resolved in accordance with Section 10.8(c) rather than in accordance   with Section 9.5; and (ii) nothing in this Section 10.8(b) or elsewhere in this Agreement shall prevent   any Indemnitee from seeking preliminary injunctive relief or any other equitable remedy from a court   of competent jurisdiction).                (c)  Other Disputes.  Except as otherwise provided in Section 10.8(b), any action, suit   or  other  legal  proceeding  relating  to  this  Agreement  or  the  enforcement  of  any  provision  of  this   Agreement (including an action, suit or other legal proceeding based upon fraud) may be brought or   otherwise commenced in any state or federal court located in the state of Delaware. Each party to this   Agreement:  (i)  expressly  and  irrevocably  consents  and  submits  to  the  jurisdiction  of  each  state  and   federal court located in the state of Delaware (and each appellate court located in the state of Delaware)   in connection with any such action, suit or legal proceeding; (ii) agrees that each state and federal court   located in the state of Delaware shall be deemed to be a convenient forum; and (iii) agrees not to assert   (by way of motion, as a defense or otherwise), in any such action, suit or legal proceeding commenced   in any state or federal court located in the state of Delaware, any claim that such party is not subject   personally to the jurisdiction of such court, that such action, suit or legal proceeding has been brought   in an inconvenient forum, that the venue of such action, suit or legal proceeding is improper or that this   Agreement or the subject matter of this Agreement may not be enforced in or by such court.          10.9  Successors  and  Assigns.  This  Agreement  shall  be  binding  upon  each  of  the  parties  hereto and each of their respective heirs, executors, personal representatives, successors and assigns, if  any. This Agreement shall inure to the benefit of the Company, Purchaser, the other Indemnitees and the  respective successors and assigns of the foregoing (if any). Purchaser may freely assign any or all of its  rights under this Agreement (including its rights under Section 9), in whole or in part, to any other Person  without obtaining the consent or approval of any other party hereto or of any other Person. In connection  with  any  such  assignment  by  Purchaser,  Purchaser  may  specify  the  extent  to  which  references  to  Purchaser in this Agreement will be deemed to refer to the assignee. The Company shall not be permitted  to assign any of its rights or delegate  any of its obligations under this  Agreement without Purchaser’s  prior  written  consent. Any  attempted  assignment  or  delegation  by  the  Company  in  violation  of  this  Section 10.9 shall be null and void.         10.10 Remedies Cumulative; Specific Performance.  The rights and remedies of the parties  hereto are not exclusive of or limited by any other rights or remedies which they may have, whether at  law, in equity, by contract or otherwise, all of which shall be cumulative (and not alternative). Without  limiting the generality of the foregoing, the rights and remedies of Purchaser and the other Indemnitees  under this  Agreement are in addition to their respective  rights and  remedies under the  Share  Purchase  Agreement.  Nothing in this Agreement shall limit any of the rights or remedies of Purchaser or any of the  other Indemnitees under the Share Purchase Agreement or any other Transaction Document (excluding  the  Company  Closing  Certificate,  the  documents  delivered  pursuant  to Section 6.6 and  the  certificate  contemplated by Section 6.6(d)); and nothing in the Share Purchase Agreement or any other agreement,  certificate or document referred to in the Share Purchase Agreement or to be executed in connection with                                         67    

 

   any of the transactions contemplated by the Share Purchase Agreement shall limit any of the Company’s  obligations,  or  any  of  the  rights  or  remedies  of  Purchaser  or  any  of  the  other  Indemnitees,  under  this  Agreement.   No  breach  on  the  part  of  Purchaser  or  any  other  party  of  any  covenant  or  obligation  contained in the Share Purchase Agreement or any other agreement shall limit or otherwise affect any  right or remedy of Purchaser or any of the other Indemnitees under this Agreement. The parties to this  Agreement agree that, in the event of any breach or threatened breach by the Company of any covenant,  obligation or other provision set forth in this Agreement: (a) Purchaser shall be entitled, without proof of  actual damages (and in addition to any other remedy that may be available to it) to (i) a decree or order of  specific  performance  or mandamus  to  enforce  the  observance  and  performance  of  such  covenant,  obligation or other provision and (ii) an injunction restraining such breach or threatened breach; and (b)  Purchaser shall not be required to provide any bond or other security in connection with any such decree,  order  or  injunction  or  in  connection  with  any  related  action  or  legal  proceeding.  Notwithstanding  the  foregoing,  but  subject  to Section 10.2,  for  clarity,  following  the  Closing, Section 9.6 shall  control  exclusively on the topic of monetary remedies against the Company for any breach of this Agreement by  the Company.         10.11 Waiver.  No failure on the part of any Person to exercise any power, right, privilege or  remedy under this  Agreement, and no delay on the  part of any Person in exercising any power, right,  privilege or remedy under this Agreement, shall operate as a waiver of such power, right, privilege or  remedy; and no single or partial exercise of any such power, right, privilege or remedy shall preclude any  other or further exercise thereof or of any other power, right, privilege or remedy. No Person shall be  deemed to have waived any claim arising out of this Agreement, or any power, right, privilege or remedy  under this Agreement, unless the waiver of such claim, power, right, privilege or remedy is expressly set  forth in a written instrument duly executed and delivered on behalf of such Person; and any such waiver  shall not be applicable or have any effect except in the specific instance in which it is given.         10.12 Waiver of Jury Trial.  Each of the parties hereto hereby irrevocably waives any and all  right to trial by jury in any legal proceeding arising out of or related to this  Agreement or any of the  Contemplated Transactions.         10.13 Amendments.  This Agreement may not be amended, modified, altered or supplemented  other than by means of a written instrument duly executed and delivered on behalf of Purchaser and the  Company; provided, however,  that  if  any  amendment  to  this  Agreement  would  have  a  direct  and  significant adverse economic effect on any Secondary Seller, then such amendment shall also require the  consent of the Sellers’ Representative, which shall not be unreasonably withheld, delayed or conditioned.  Notwithstanding anything to the contrary contained in the proviso to the previous sentence, no consent of  the Sellers’ Representative or any other Person shall be required for any termination of this Agreement or  for the wavier of any rights of the Company or Purchaser under this Agreement.         10.14 Severability.  Any term or provision of this Agreement that is deemed or determined to  be  invalid  or  unenforceable  in  any  situation  in  any  jurisdiction  shall  not  affect  the  validity  or  enforceability of  the  remaining  terms  and  provisions  hereof  or  the  validity  or  enforceability  of  the  offending term or provision in any other situation or in any other jurisdiction. If the final judgment of a  court  of  competent  jurisdiction  declares  that  any  term  or  provision  of  this  Agreement  is  invalid  or  unenforceable, the Company and Purchaser agree that the court making such determination shall have the  power  to limit  the  term  or  provision,  to  delete  specific  words  or  phrases,  or to  replace  any  invalid  or  unenforceable term or provision with a term or provision that is valid and enforceable and that comes  closest  to  expressing  the  intention  of  the  invalid  or  unenforceable  term  or  provision,  and  that  such  modified term or provision of this Agreement shall be enforceable as so modified. In the event such court  does  not  exercise  the  power  granted  to  it  in  the  immediately  preceding  sentence,  the  Company  and  Purchaser agree to replace such invalid or unenforceable term or provision with a valid and enforceable                                         68    

 

   term or provision that will achieve, to the extent possible, the economic, business and other purposes of  such invalid or unenforceable term.         10.15 Parties in Interest.  Except for (a) the provisions of Section 9, which may be enforced  by the Indemnitees as set forth in Section 9, (b) the provisions of Section 10.13, which may be enforced  by the Sellers’ Representative, acting on behalf of the Secondary Sellers and (c) the provisions of Section  5.4, which may be enforced by each D&O Indemnified Party (or his or her heirs, personal representatives,  successors  or  assigns),  none  of  the  provisions  of  this  Agreement  are  intended  to  provide  any  right  or  remedy to any employee, creditor or other Person other than Purchaser, the Company and their respective  successors and assigns (if any).         10.16 Entire Agreement.  This Agreement and the other agreements referred to herein set forth  the  entire  understanding  of  the  parties  hereto  relating  to  the  subject  matter  hereof  and  thereof  and  supersede all prior agreements and understandings among or between any of the parties relating to the  subject matter hereof and thereof.         10.17 Disclosure  Schedule.  The  Disclosure  Schedule  shall  be  arranged  in  separate  parts  corresponding to the numbered and lettered sections and subsections contained in this Agreement, and the  information disclosed in any numbered or lettered part shall be deemed to relate to and to qualify only the  particular  representation  or  warranty  set  forth  in  the  corresponding  numbered  or  lettered  section  or  subsection of this Agreement, except to the extent that: (a) such information is cross-referenced in another  part of the Disclosure Schedule; or (b) it is reasonably apparent on the face of the disclosure (without  reference to any document referred to therein or any independent knowledge  on the part of the reader  regarding the matter disclosed) that such information qualifies another representation and warranty in this  Agreement.  The  mere  listing  of  a  document  or  other  item  in,  or  attachment  of  a  copy  thereof  to,  the  Disclosure Schedule will not be deemed adequate to disclose an exception to a representation or warranty  made in this Agreement (unless the representation or warranty pertains directly to the existence of the  document or other item itself).         10.18 Certain Post-Closing Actions.                  (a)  Indian Actions.  No later than 15 days after the Closing Date, the Company shall,   and  shall  cause  the  other  Acquired  Companies  to:  (a)  notify  the  RBI  of  the  change  of  control  and   management  of  PhonePe  Private  Limited;  (b)  ensure  that  each  of  Flipkart  India  Private  Limited,   Flipkart  Internet  Private  Limited,  Instakart  Services  Private  Limited  and  Myntra  Designs  Private   Limited  responds  to  each  notice  from  the  Indian  Legal  Metrology  Department  under  the  Legal   Metrology Act 2009; (c) ensure that each of Myntra Jabong India Private Limited, Flipkart Logistics   Private Limited and Instakart Services Private Limited obtains registration under the Legal Metrology   (Packaged Commodities) Rules, 2011; and (d) obtain registration under all applicable state shops and   establishments Legal Requirements in India for all of its premises located in India.                (b)  Business Cooperation Agreements.  Purchaser and the Company anticipate that,   from time to time after the Agreement Date, at the request of Purchaser, the Company will negotiate   with Purchaser in good faith the terms of business cooperation agreements between Purchaser and the   Company,  to  become  effective  as  of  or  after  the  Closing,  with  the  Company’s  interests  in  the   negotiation  of  these  business  cooperation  agreements  to  be  represented  by  a  committee  of  the   Company’s board of directors consisting exclusively of directors who are not Affiliates of Purchaser.                (c)  Identified Premises. No later than December 31, 2018, the Company shall, and   shall cause each of the other Acquired Companies to, complete the registration of all of the Identified   Premises in accordance with the (Indian) Registration Act, 1908.                                          69    

 

         10.19 Performance of Obligations.                (a)   To  induce  the  Company  to  enter  into  this  Agreement,  Parent,  intending  to  be  legally bound, hereby absolutely, irrevocably and unconditionally guarantees to the Company the due and  punctual  payment  and  performance  of  (i)  Purchaser’s  obligations  under  this  Agreement  and  (ii)  Purchaser’s  payment  obligations  (including  for  breach)  under  this  Agreement  (collectively,  the  “Purchaser  Guaranteed  Obligations”),  in  each  case,  as  and  when  due  pursuant  to  the  terms  of  this  Agreement.  This guarantee may not be revoked or terminated and shall remain in full force and effect  without  interruption  and  shall  be  binding  on  Parent  and  its  successors  and  assigns  until  the  Purchaser  Guaranteed Obligations have been satisfied in full.  All payments pursuant to this Section 10.19 shall be  made  in  lawful  money  of  the  United  States,  in  immediately  available  funds.  Parent  promises  and  undertakes  to  make  all  payments  hereunder  free  and  clear  of  any  deduction,  offset,  defense,  claim  or  counterclaim of Parent of any kind.               (b)   The  guarantee  set  forth  in Section 10.19(a) (the  “Purchaser  Guarantee”)  is  an  absolute, unconditional and continuing guarantee of the full and punctual payment and performance by  Purchaser of the Purchaser Guaranteed Obligations and not of collection.  Should Purchaser default in the  payment or performance of any of the Purchaser Guaranteed Obligations, Parent’s obligations hereunder  shall become immediately due and payable to the Company. Claims hereunder may be made on one or  more occasions.  If any payment in respect of any Purchaser Guaranteed Obligation is rescinded or must  otherwise  be  returned  for any  reason  whatsoever,  Parent shall  remain  liable  hereunder  with  respect  to  such Purchaser Guaranteed Obligation as if such payment had not been made.               (c)   Parent agrees that the Purchaser Guaranteed Obligations shall not be released or  discharged,  in  whole  or  in  part,  or  otherwise  affected  by:  (i)  the  failure  or  delay  on  the  part  of  the  Company to assert any claim or demand  or to enforce  any right or remedy against Purchaser; (ii) any  change in the time, place or manner of payment of the Purchaser Guaranteed Obligations or amendment  or modification of any of the terms or provisions of this Agreement made in accordance with the terms of  this Agreement; (iii) the addition, substitution or release of any Person that becomes a party to any of the  Contemplated  Transactions;  (iv)  any  change  in  the  corporate  existence,  structure  or  ownership  of  Purchaser; (v) any insolvency, bankruptcy, reorganization or other similar proceeding affecting Purchaser  or its assets; (vi) the adequacy of any means the Company may have of obtaining payment related to the  Purchaser  Guaranteed  Obligations;  or  (vii)  the  existence  of  any  claim,  set-off  or  other  right  which  Purchaser  may  have  at  any  time  against  the  Company  (other than  rights  of  Purchaser  pursuant  to  this  Agreement),  whether  in  connection  with  the  Purchaser  Guaranteed  Obligations  or  otherwise.  Parent  waives promptness, diligence, notice of the acceptance of the Purchaser Guarantee and of the Purchaser  Guaranteed Obligations, presentment, demand for payment, notice of non-performance, default, dishonor  and protest, notice of the Purchaser Guaranteed Obligations incurred and all other notices of any kind, all  defenses which may be available by virtue of any valuation, stay, moratorium law or other similar law  now or hereafter in effect, any right to require the marshalling of assets of Purchaser or any other Person  that becomes a party to any of the Contemplated Transactions, all suretyship defenses generally, and all  defenses available to Parent under the Purchaser Guarantee (other than defenses to the payment of the  Purchaser  Guaranteed  Obligations  that  are  available  to  Purchaser  under  this  Agreement).   Parent  acknowledges  that  it  has  received  and  will  receive  substantial  direct  and  indirect  benefits  from  the  Contemplated Transactions and that the waivers set forth in this Section 10.19 are knowingly made in  contemplation of such benefits.               (d)   The  Company  shall  not  have  any  obligation  to  proceed  at  any  time  or  in  any  manner against, exhaust any or all of the Company’s rights against Purchaser or any other person liable  for any Purchaser Guaranteed Obligations prior to proceeding against Parent hereunder or resort to any  security  or  other  means  of  collecting  payment.   The  Purchaser  Guarantee  may  only  be  amended  by  a                                         70    

 

   writing signed and delivered by Parent and the Company. Parent hereby covenants and agrees that it shall  not  institute,  and  shall  cause  its  respective  Affiliates  not  to  institute,  any  action  asserting  that  the  Purchaser  Guarantee  is  illegal,  invalid  or  unenforceable  in  accordance  with  its  terms,  subject  to  the  Enforceability Exception.               (e)   Parent  hereby  represents  and  warrants  to  the  Company  that:  (i)  the  execution,  delivery and performance of this Agreement have been duly authorized by all necessary corporate action  and do not contravene any provision of Parent’s organizational documents or any Legal Requirement or  contractual restriction binding on Parent or its assets; and (ii) this Agreement constitutes a legal, valid and  binding  obligation  of  Parent  enforceable  against  Parent  in  accordance  with  its  terms,  subject  to  the  Enforceability Exception.         10.20 Construction.                (a)  Gender;  Etc.   For  purposes  of  this  Agreement,  whenever  the  context  requires:    the  singular  number  shall  include  the  plural,  and  vice  versa;  the  masculine  gender  shall  include  the   feminine and neuter genders; the feminine gender shall include the masculine and neuter genders; and   the neuter gender shall include the masculine and feminine genders.                (b)  Currencies; Exchange Rate.  All references in this Agreement to “dollars” or “$”   shall  mean United  States  Dollars.  All  references  in  this  Agreement  to  “rupees”  or  “Rs”  shall  mean   Indian National Rupees. All references in this Agreement to “Singapore dollars” or “S$” shall mean   Singapore Dollars. Except as otherwise provided in this Agreement, for the purpose of translating an   amount denominated in a currency other than dollars into dollars as of a specified date, such amount   shall be determined using the exchange rate between such currency and dollars on the Business Day   immediately preceding such date, as such exchange rate is reported on the Financial Times website at   FT.com                (c)  Ambiguities.  The parties hereto agree that any rule of construction to the effect   that ambiguities are to be resolved against the drafting party shall not be applied in the construction or   interpretation of this Agreement.                (d)  Including.  As used in this Agreement, the words “include” and “including,” and   variations  thereof,  shall  not  be  deemed  to  be  terms  of  limitation,  but  rather  shall  be  deemed  to  be   followed by the words “without limitation.”                (e)  References.  Except as otherwise indicated, all references in this Agreement to   “Sections,”  “Schedules”  and  “Exhibits”  are  intended  to  refer  to  Sections  of  this  Agreement  and   Schedules and Exhibits to this Agreement. All “Schedules” and “Exhibits” annexed hereto or referred   to herein are hereby incorporated in and made a part of this Agreement as if set forth in full herein. Any   capitalized terms used in any “Schedule” or “Exhibit” but not otherwise defined therein shall be defined   as  set  forth  in  this  Agreement.  Any  Contract,  instrument  or  statute  defined  or  referred  to  in  this   Agreement or in Exhibit A means such Contract, instrument or statute, in each case as from time to time   amended, modified or supplemented, including (in the case of Contracts or instruments) by waiver or   consent and (in the case of statutes) by succession or comparable successor statutes. Any Contract or   instrument defined or referred to in this Agreement or in Exhibit A shall include all exhibits, schedules   and other documents or Contracts attached thereto. Any statute defined or referred to in this Agreement   or in Exhibit A shall include all rules and regulations promulgated thereunder.                                          71    

 

                            (f)  Hereof.  The terms “hereof,” “herein,” “hereunder,” “hereby” and “herewith” and  words of similar import will, unless otherwise stated, be construed to refer to this Agreement as a whole  and not to any particular provision of this Agreement.               (g)  Fraud.  For purposes of this Agreement, the Company will be deemed to have  committed fraud relating to an inaccurate or misleading Company Representation if the Company or  any director, officer, employee advisor or agent of the Company, or any other Person acting on behalf  of the Company, has or had the requisite scienter under Delaware law.                                         72                 

 

      The parties hereto have caused this Agreement to be duly executed and delivered as of the date  first written above.                                       WAL-MART INTERNATIONAL HOLDINGS, INC.,                                      a Delaware corporation                                       By:   &#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0;&#0;&#0;                                     _                                        Name:   &#0;&#0;&#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0;&#0;&#0;                                     Title:     &#0;&#0;&#0;&#0;&#0;&#0; &#0;&#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;                                           &#0;     &#0; &#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;                                       WALMART INC.,                                      a Delaware corporation, for purposes of Section 10.19                                      only                                       By:   &#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0;&#0;                                    _                                         Name:   &#0;&#0;&#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0;&#0;                                     Title:     &#0;&#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;                                       FLIPKART PRIVATE LIMITED,                                      a company incorporated in Singapore                                      By: &#0;&#0;&#0;  &#0;&#0;&#0;&#0;&#0;  &#0;&#0;&#0;&#0;&#0;&#0;                                     Name:  &#0;&#0;&#0;&#0;&#0;  &#0;&#0;&#0;&#0;&#0;&#0;                                     Title:     &#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;            [SIGNATURE PAGE TO SHARE ISSUANCE AND ACQUISITION AGREEMENT]  

 

                                                                  FINAL FORM                                       EXHIBIT A                                                                       CERTAIN DEFINITIONS         For purposes of the Agreement (including this Exhibit A):         “25%  Rule”  means:  (a)  the  restriction  set  forth  in  Clause  5.2.15.1.2(d)  of  the  FDI  Policy  permitting wholesale trading of goods among companies of the same group provided such sales do not  exceed  25%  of  the  total turnover  of  the  wholesale  venture;  and  (b)  the  restriction  set  forth  in  Clause  5.2.15.2.4(v) of the FDI Policy that a company undertaking an e-commerce business will not permit more  than 25% of the sales value on a Indian Tax Year basis affected through its marketplace from one vendor  or their group companies.         “Acquired Company” means: (a) the Company; (b) each Subsidiary of the Company; and (c) for  purposes of the Company Representations, each corporation or other Entity that has been merged into, or  that has been combined, amalgamated or consolidated with (including pursuant to a plan or scheme of  arrangement) any of the Entities identified in clauses “(a)” and “(b)” above.         “Acquired Company Option” means a Company Option or a Company Subsidiary Option.         “Acquired  Company  Option  Plan”  means  a  Company  Option  Plan  or  a  Company  Subsidiary  Option Plan.         “Acquired Company Warrant” means a Company Warrant or a Company Subsidiary Warrant.         “Acquisition Transaction” means any transaction or series of transactions involving:               (a)   the  sale,  license,  sublicense  or  disposition  of  all  or  a  material  portion  of  any  Acquired Company’s business or assets, including Intellectual Property;               (b)   the grant, issuance, disposition or acquisition of (i) any share in the capital of any  Acquired Company  or  other  equity  security  of  any  Acquired  Company,  other  than  Company  Shares  issued upon the exercise or conversion of any Acquired Company Option, Acquired Company Warrant or  Company Preference Share that is outstanding on the Agreement Date and identified in Part 2.3(a), Part  2.3(b), Part 2.3(c)-1, Part 2.3(c)-2, Part 2.3(d)-1 or Part 2.3(d)-2 of  the Disclosure  Schedule,  (ii)  any  option, call, warrant or right (whether or not immediately exercisable) to acquire any share in the capital  of  any  Acquired  Company  or  other  equity  security  of  any  Acquired  Company  or  (iii)  any  security,  instrument  or  obligation  that  is  or  may  become  convertible  into  or  exchangeable  for  any  share  in  the  capital of any Acquired Company or other equity security of any Acquired Company; or               (c)   any  merger,  demerger,  amalgamation,  plan  or  scheme  of  arrangement,  consolidation,  business  combination,  reorganization,  restructuring  or  similar  transaction  involving  any  Acquired Company.         “Adjusted  Pre-Money  Company  Equity  Value”  means  an  amount  equal  to  $20,000,000,000,  minus the sum of: (a) the Aggregate Repurchase Price; plus (b) the Closing Debt Amount; plus (c) the  Specified Warrant Cancelation Payment Amount.         “Affiliate”  means,  with  respect  to  any  Person,  any  other  Person  controlling,  controlled  by  or  under  common  control with  such  Person.  For  purposes  of this  definition  and  the  Agreement,  the  term  “control” (and correlative terms) means the power, whether by contract, equity ownership or otherwise, to                                                                                     

 

   direct the policies or management of a Person.  In addition, a natural person’s spouse and other members  of such natural person’s immediate family shall be deemed “Affiliates” of such natural person. The term  “Affiliate” shall be deemed to include current and future “Affiliates.”         “Aggregate Investment Amount” has the meaning assigned to such term in Section 1.1(a).         “Aggregate Repurchase Price” means the aggregate dollar amount paid or payable by or on behalf  of  the  Company  to  Persons  that  are  or  were  shareholders  of  the  Company  in  connection  with  the  Repurchase Transactions.         “Agreed Amount” has the meaning assigned to such term in Section 9.5(d).         “Agreement” has the meaning assigned to such term in the Preamble to the Agreement.         “Agreement Date” has the meaning assigned to such term in the Preamble to the Agreement.         “AML Laws” has the meaning assigned to such term in Section 2.12(d).         “Anti-Bribery & Corruption Policy” means the Company internal policy titled “Anti-Bribery and  Anti-Corruption Policy of Flipkart Private Limited,” implemented on February 1, 2018.         “Anti-Corruption  Law”  means  the  United  States  Foreign  Corrupt  Practices  Act  of  1977,  as  amended, the United Kingdom Bribery Act 2010, as amended, the Indian Prevention of Corruption Act,  1988, as amended, or any other law or regulation that prohibits the conferring of any gift, payment, thing  of value, or other benefit on any person  or any officer, employee, agent or advisor of such person, or  which has as its objective the prevention of corruption and/or bribery.         “API” means application program interface.         “Apportioned  Litigation  Reserve  Amount”  has  the  meaning  assigned  to  such  term  in  Section 9.3(c)(i).         “Arbitrable Indemnification Dispute” has the meaning assigned to such term in Section 9.5(f).         “Award Amount” has the meaning assigned to such term in Section 9.5(f)(v).         “Balance Sheet Date” has the meaning assigned to such term in Section 2.4(a).         “BCCL” means Bennett, Coleman and Company Limited.         “BCCL Warrant” means the Share Cum Warrant Subscription Agreement dated as of December  24, 2016, by and among the Company, Flipkart Internet Private Limited and BCCL.         “Burdensome Condition” means any condition, remedy or action that Purchaser is not obligated  to accept or take pursuant to Section 5.1(d).         “Business  Day” means any  day  other  than  a  Saturday,  Sunday  or  public  holiday  in  India,  Singapore or the state of Arkansas, USA.         “CCI” means the Competition Commission of India.                                                                                                                                                                       2      

 

         “CCI Approval” has the meaning assigned to such term in Section 6.3(a).         “CCI Regulations” means the Competition Act 2002 read with The Competition Commission of  India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011.          “Charter Documents” has the meaning assigned to such term in Section 2.2.         “Claimed Amount” has the meaning assigned to such term in Section 9.5(a).         “Closing” has the meaning assigned to such term in Section 1.2.         “Closing Date” has the meaning assigned to such term in Section 1.2.         “Closing  Debt  Amount”  means  the  amount  (denominated  in  dollars  and  determined  using  the  Specified  Exchange  Rate,  as  applicable),  if  any,  by  which  (a)  the  aggregate  amount  of  Company  Indebtedness (on a consolidated basis) as of the Closing, other than Company Indebtedness for borrowed  money  incurred  for  working  capital  purposes  and  secured  by  cash  or  inventory  of  the  Acquired  Companies, exceeds (b) $5,000,000. For clarity, if the aggregate amount of the Company Indebtedness  referred to in clause “(a)” is less than or equal to $5,000,000, then the Closing Debt Amount shall be zero.         “Code” means the U.S. Internal Revenue Code of 1986, as amended. All references to the Code,  the Treasury Regulations or other governmental pronouncements shall be deemed to include references to  any applicable successor regulations or amending pronouncement.         “Code  of  Conduct”  means  the  Company  internal  policy  titled  “Code  of  Conduct”  dated  July  2017.         “Company” has the meaning assigned to such term in the Preamble to the Agreement.         “Company  Benefit  Plan”  means  any  plan,  program,  policy,  practice,  Contract  or  other  arrangement  providing  for  compensation,  severance,  termination  pay,  deferred  compensation,  performance awards, bonus, commission, incentive, change in control or transaction-based, or retention  payments,  share  or  share-related  awards,  fringe  benefits,  vacation,  sick  leave,  education  or  tuition  benefits,  relocation  or  moving  benefits,  retirement,  supplemental  retirement,  pension,  or  profit  sharing  benefits, health, medical, dental, vision, life insurance, accidental death or dismemberment, disability or  other employee benefits or remuneration of any kind, whether written, unwritten or otherwise, funded or  unfunded, that is or has been maintained, contributed to, or required to be contributed to, by an Acquired  Company for the benefit of any Company Employee, or with respect to which any Acquired Company  has  or  may  have  any  Liability,  except  such  definition  shall  not  include  any  Company  Employee  Agreement.         “Company Closing Certificate” has the meaning assigned to such term in Section 6.6(c).         “Company Compliance Representations” means: (a) the representations and warranties made by  the  Company  in Section 2.4(c) (Internal  Controls)  and Section 2.12 (other  than Sections 2.12(a) and  2.12(j)) (Compliance with Legal Requirements); and (b) the representations and warranties set forth in the  Company  Closing  Certificate,  to  the  extent  such  representations  and  warranties  relate  to  any  of  the  matters addressed in any of the representations and warranties specified in clause “(a)” above.                                                                                                                                                                         3      

 

         “Company Consideration Spreadsheet” has the meaning assigned to such term in Section 6.6(d).         “Company Contract” means any Contract: (a) to which any Acquired Company is a party; (b) by  which any Acquired Company or any of its assets is or may become bound or under which any Acquired  Company has, or may become subject to, any obligation; or (c) under which any Acquired Company has  or may acquire any right or interest. Each Company IP Contract shall constitute a “Company Contract.”         “Company Cure Period” has the meaning assigned to such term in Section 8.1(f).         “Company Data” means all data contained in any databases of any Acquired Company (including  any  and  all  Trade  Secrets,  User  Data  and  listings  and  other  content  displayed,  distributed  or  made  available on or through any Company Website or Company Software) and all other information, data and  compilations thereof used by, or useful or necessary to the business of, any Acquired Company.         “Company Database” means any distinct electronic or other database containing (in whole or in  part) Personal Data maintained by or for any Acquired Company at any time.          “Company Employee” means any current or former director, officer, employee, secondee, agent,  independent contractor or consultant of any Acquired Company.         “Company Employee Agreement” means each management, employment, severance, consulting,  relocation, repatriation or expatriation agreement or other Contract between any Acquired Company and  any Company Employee.         “Company Financial Statements” has the meaning assigned to such term in Section 2.4(a).         “Company  Indebtedness”  means  any  Indebtedness  of  any  Acquired  Company  (including  any  Indebtedness with respect to which any Acquired Company is or may become subject to any obligation or  other Liability).         “Company Insurance Policy” has the meaning assigned to such term in Section 2.17.         “Company  IP”  means:  (a)  all  Intellectual Property  and  Intellectual  Property  Rights  in  or  with  respect  to  which any  Acquired  Company has  (or  purports  to  have)  an  ownership  interest,  exclusive  license, exclusive covenant not to assert (benefitting any Acquired Company) or similar exclusive right in  any field or territory; and  (b) all Intellectual Property and  Intellectual Property Rights  embodied  in or  applicable to each Company Product.         “Company IP Contract” means any Contract: (a) to which any Acquired Company is a party, or  by which any Acquired Company or any Company IP is bound, that contains any assignment or license  in, to or under any Company IP or any covenant not to assert any Company IP; or (b) under which any  Acquired Company has any right, title or interest in or to any Intellectual Property or Intellectual Property  Right.         “Company  IT  System”  means any  information  technology  or  computer  system  (including  any  Computer  Software,  information  technology  or  telecommunication  hardware,  network  or  other  equipment)  relating  to  the  transmission,  storage,  maintenance,  organization,  presentation,  generation,  processing or analysis of data or information or support, disaster recovery or online services (whether or  not in electronic format), used in or necessary to the conduct of the business of any Acquired Company.                                                                                                                                                                        4      

 

          “Company Lease” means any lease agreement or other Contract pursuant to which any Acquired  Company leases or licenses any real property.          “Company Option” means an option to purchase Company Ordinary Shares from the Company,  including, for the avoidance of doubt, any stock option unit issued under the Flipkart 2015 Stock Option  Unit Sub-Plan, but excluding any Company Warrant.         “Company Option Plan” means any equity or equity-based incentive plan or arrangement of the  Company, including the  Flipkart Stock Option Scheme  2012 and  the  Flipkart 2015 Stock Option Unit  Sub-Plan, in each case, as amended, supplemented or modified from time to time in accordance with the  Agreement.         “Company  Ordinary  Shares”  means,  collectively,  the  ordinary  shares in  the  capital  of  the  Company.          “Company Personal Property” means all of the machinery, equipment, fixtures, hardware, tools,  motor  vehicles,  furniture,  furnishings,  leasehold  improvements,  office  equipment,  inventory,  supplies,  plant, spare parts and other tangible personal property owned, leased or used, or purported to be owned,  leased or used, by any Acquired Company.         “Company Preference Shares” means preference shares in the capital of the Company, including  the Series A Shares, the Series B Shares, the Series C Shares, the Series D Shares, the Series E Shares, the  Series F Shares, the Series G Shares, the Series H Shares and the Series I Shares.         “Company Privacy Policy” means each external or internal, past or present privacy policy of any  Acquired Company, including any policy relating to: (a) the privacy of users of any Company Website or  Company Software; (b) the collection, storage, disclosure, and transfer of any User Data or Personal Data;  or (c) any employee information.         “Company  Products” means: (a)  each  of  the  products,  services,  and  Computer  Software  (including  mobile  phone  and  tablet  applications)  that  have  been  or  are  currently  being  developed,  marketed, distributed, made available, licensed, sold, offered or provided by any Acquired Company; (b)  each Company Website, including the platforms and other Computer Software used for each Company  Website; and (c) the Company Data.         “Company Representations” means, collectively, the Company Compliance Representations, the  Company  Tax  Representations, the  General  Company  Representations  and  the  Fundamental  Company  Representations.         “Company  Shares”  means,  collectively, the  Company  Ordinary  Shares  and  the  Company  Preference Shares.         “Company Software” has the meaning assigned to such term in Section 2.10(k).         “Company Subsidiary Option” means an option to purchase capital shares, membership interests  or  other  equity  interests  from  an  Acquired  Company  (other  than  the  Company),  but  excluding  any  Company Subsidiary Warrant.                                                                                                                                                                        5      

 

          “Company  Subsidiary  Option  Plan” means  any  equity  or  equity-based  incentive  plan  or  arrangement of any Acquired Company (other than the Company), including the Jeeves Employee Stock  Option  Scheme, as  amended,  supplemented  or  modified  from  time  to  time  in  accordance  with  the  Agreement.         “Company Subsidiary Warrant” means a warrant to purchase capital shares, membership interests  or other equity interests from an Acquired Company (other than the Company).         “Company  Tax  Representations” means:  (a)  the  representations  and  warranties  made  by  the  Company  in Section 2.14 (Tax  Matters);  and  (b)  the  representations  and  warranties  set  forth  in  the  Company  Closing  Certificate,  to  the  extent  such  representations  and  warranties  relate  to  any  of  the  matters addressed in any of the representations and warranties specified in clause “(a)” above.         “Company Transaction Expense” means each of the following Expenses (whether or not incurred  on or before the Agreement Date, during the Pre-Closing Period or at or after the Closing, whether or not  invoiced before the Closing and whether or not paid before the Closing) incurred by or on behalf of any  Acquired Company, or to or for which any Acquired Company was, is or becomes subject or liable, in  connection with or relating to the Agreement, the Share Purchase Agreement or any of the Contemplated  Transactions or the process resulting in such transactions: (a) Expenses described in Section 10.3; (b) any  Expense  paid  or  payable  to  outside  legal  counsel  or  to  any  financial  advisor,  investment  banker,  consultant, broker, accountant or other Person who performed services for or on behalf of, or provided  advice to, any Acquired Company or any Representative of any Acquired Company, or who is otherwise  entitled to any compensation or payment from any Acquired Company, in connection with or relating to  the Agreement, the Share Purchase Agreement or any of the Contemplated Transactions or the process  resulting  in  such  transactions;  and  (c)  any  Expense  incurred  by  or  on  behalf  of  any  securityholder  or  Representative  of  any  Acquired  Company  in  connection  with  or  relating  to  the  Agreement,  the  Share  Purchase Agreement or any of the Contemplated Transactions or the process resulting in such transactions  that any Acquired Company paid or pays, or reimbursed or reimburses, or was, is or will be obligated to  pay or reimburse. For clarity, the term “Company Transaction Expense” shall not be deemed to include  any payment required to be made to the counterparty to a Material Contract for the purpose of inducing  such  counterparty  to  grant to  the  Company  a  Consent  required  to  be  obtained  in  connection  with  the  Contemplated Transactions or any payment required to be made to a Governmental Entity for the purpose  of inducing such Governmental Entity to grant a Governmental Authorization required to be obtained in  connection with the Contemplated Transactions.         “Company Warrant” means a warrant to purchase Company Shares from the Company.         “Company Website” means any public or private website owned, maintained, or operated at any  time by or on behalf of any Acquired Company and any online service made available by any Acquired  Company.         “Computer  Software”  means  computer  software,  software-as-a-service,  data  files,  source  and  object  codes,  APIs,  tools,  user  interfaces,  manuals  and  other specifications  and  documentation  and  all  know-how relating thereto.         “Confidentiality  Agreement”  means  that  certain  Letter  Agreement  dated  as  of September  27,  2017, between Walmart Inc. and the Company.                                                                                                                                                                         6      

 

          “Consent” means any approval, consent, ratification, permission, waiver, order or authorization  (including any Governmental Authorization).         “Contaminant” includes any material, substance, chemical, gas, liquid, waste, effluent, pollutant  or  contaminant  which,  whether  on  its  own  or  admixed  with  another,  is  identified  or  defined  in  or  regulated by or pursuant to any Environmental Law or which upon release into the environment presents a  danger to the environment or to the health, safety or welfare of any Person (excluding office and janitorial  supplies that are safely maintained and stored).         “Contemplated Transactions” means all transactions and actions contemplated by the Agreement  (including  the  Share  Issuance  and  the  Secondary  Share  Purchase)  and  all  transactions  and  actions  contemplated by the agreements, plans and other documents entered into or delivered in connection with,  or referred to in, the Agreement.         “Contested Amount” has the meaning assigned to such term in Section 9.5(b).         “Contract”  means  any  legally  binding  written,  oral  or  other  agreement,  contract,  license,  sublicense, subcontract, settlement agreement, deed, lease, power of attorney, instrument, note, purchase  order,  warranty,  insurance  policy,  benefit  plan  or  other  legally  binding  commitment,  understanding,  arrangement or undertaking of any nature.         “Conversion Event” has the meaning assigned to such term in the Recitals to the Agreement.         “Convertible  Security  Liquidity  Transactions”  means the  buy  back,  repurchase,  redemption  or  acquisition by other means by the Company, at or after the Closing, of Company Options to purchase up  to  3,461,352  Company  Ordinary  Shares  and  Company  Warrants  to  purchase  up  to  68,138  Company  Shares, in each case at a price per share equal to the Price Per Secondary Share (as such term is defined in  the Share Purchase Agreement), less any applicable withholding Taxes and exercise prices, in the manner  described in Schedule 4.2(g), or as may otherwise be agreed in writing by the Company and Purchaser.         “Corporate  Gift  Policy”  means  the  Company  internal  policy  titled  “Corporate  Gift  Policy,”  implemented on February 1, 2018.         “Covenant Expiration Date” has the meaning assigned to such term in Section 9.1(e)(ii).         “D&O Indemnification Obligations” has the meaning assigned to such term in Section 5.4(a).         “D&O Indemnified Parties” has the meaning assigned to such term in Section 5.4(a).         “Damages” means any loss, damage, injury, liability, settlement, judgment, award, fine, penalty,  Tax, fee (including reasonable attorneys’ fees), charge, cost (including costs of investigation) or expense  of any nature; provided, however, that “Damages” shall not include any punitive damages or exemplary  damages unless such damages are awarded to a third party by a Governmental Entity in connection with  any Legal Proceeding.         “Designated Company Representations” means: (a) the representations and warranties set forth in  Sections 2.3 (Capitalization)  and 2.20 (Authority;  Binding  Nature  of  Agreements);  and  (b) the  representations  and  warranties  set  forth  in  the  Company  Closing  Certificate,  to  the  extent  such                                                                                                                                                                        7      

 

   representations  and warranties  relate to any of the  matters addressed in any of the  representations  and  warranties specified in clause “(a)” above.         “Disbursing Agent”  means a bank or trust company selected by Purchaser to act as disbursing  agent in connection with the Contemplated Transactions.         “Disclosure  Schedule”  means  the  schedule  (dated  as  of  the  Agreement  Date)  delivered  to  Purchaser on behalf of the Company and prepared in accordance with Section 10.17.         “Dispute Period” has the meaning assigned to such term in Section 9.5(b).         “Domain Name” means any domain name, web address, uniform resource locator, social media  handle, user name or account identifier, and any goodwill associated with any of the foregoing.         “Encumbrance”  means  any  lien,  pledge,  hypothecation,  charge,  mortgage,  security  interest,  encumbrance, license, possessory interest, conditional sale or other title retention arrangement, intangible  property right, claim, infringement, option, right of first refusal, preemptive right, community property  interest or restriction of any similar nature (including any restriction on the voting of any security or the  receipt  of  any  income  derived  from  any  asset,  or  any  restriction  on  the  transfer,  use,  possession  or  ownership of any security or other asset). For clarity, the provisions of the Constitution of the Company  shall not be deemed to be an Encumbrance with respect to any Issued Shares.          “End Date” has the meaning assigned to such term in Section 8.1(b).         “Enforceability  Exception”  means  the  effect,  if any,  of:  (a)  applicable  bankruptcy,  insolvency,  moratorium or other similar laws affecting the rights of creditors generally; and (b) rules of law governing  specific performance, injunctive relief and other equitable remedies.         “Entity”  means  any  corporation  (including  any  non-profit  corporation),  general  partnership,  limited  partnership,  limited  liability  partnership,  joint  venture,  estate,  trust,  company  (including  any  limited  liability  company,  joint  stock  company,  company  limited  by  shares  or  company  limited  by  guarantee, whether public or private), firm, body corporate or incorporate (whether or not having separate  legal personality) or other enterprise, association, organization or entity.          “Environment” includes:  (a)  any  and  all  buildings,  structures,  fixtures,  fittings,  appurtenances,  pipes,  conduits,  valves,  tanks,  vessels  and  containers  whether  above  or  below  ground  level;  and  (b)  ambient air, land surface, sub-surface strata, soil, surface water, ground water, river sediment, marshes,  wet lands, flora and fauna.         “Environmental  Law”  means:  all  Legal  Requirements,  by-laws,  orders,  instruments,  directives,  decisions, injunctions and judgments of any government, local government, international, supranational,  executive,  administrative,  judicial  or  regulatory  authority  or  agency  whether  of  India,  Singapore,  the  United States or elsewhere and all approved codes of practice (whether voluntary or compulsory) relating  to  the  protection  of  the  Environment  or  of  human  health  or  safety  or  welfare  or  to  the  manufacture,  formulation, processing, treatment, storage, containment, labeling, handling, transportation, distribution,  recycling, reuse, release, disposal, removal, remediation, abatement or clean-up of any Contaminant and  any  amendment  thereto  and  any  and  all  regulations,  orders  and  notices  made  or  served  thereunder  or  pursuant thereto.                                                                                                                                                                        8      

 

         “Environmental  License” means  any  permit,  licenses,  approval,  permission,  consent  or  authorization required by or pursuant to any applicable Environmental Laws.         “Environmental  Release”  means  the  spilling,  leaking,  pumping,  pouring,  emitting,  releasing,  emptying,  discharging,  injecting,  escaping,  leaching,  dumping,  leaving,  discarding  or  disposing  of  any  Contaminant into or upon the Environment.         “EULA” has the meaning assigned to such term in Section 2.10(e).         “Exclusion Option” has the meaning assigned to such term in the Share Purchase Agreement.         “Existing Registration Rights Agreement” means the Amended and Restated Registration Rights  Agreement  dated  as  of  September  20,  2017,  by  and  among  the  Company  and  the  shareholders  of  the  Company that are parties thereto.         “Existing Shareholders’ Agreement” means the Amended and Restated Shareholders Agreement,  dated as of September 20, 2017, by and among the Company and the shareholders of the Company that  are parties thereto, disregarding any amendments made during the Pre-Closing Period.         “Expense” means any fee, cost, expense, payment, expenditure or similar liability.         “Export Controls” has the meaning assigned to such term in Section 2.12(c).         “FDI Policy” means the consolidated foreign direct investment policy of the Government of India  issued by the Department of Industrial Policy and Promotion of the Ministry of Commerce and Industry  on 28 August 2017.         “Flipkart Marks” has the meaning assigned to such term in Section 2.10(t).         “fraud” means fraud within the meaning of Delaware law, with scienter, as defined in accordance  with Delaware law.         “Fully Diluted Share Number” means an amount equal to the sum of, without duplication: (a) the  aggregate number of Company Ordinary Shares issued and outstanding immediately prior to the Closing;  plus (b) the aggregate number of Company Ordinary Shares that would be issuable upon the conversion  of the Company Preference Shares that are issued and outstanding immediately prior to the Closing; plus  (c)  the  aggregate  number  of  Company  Ordinary  Shares  purchasable  under  or  otherwise  subject  to  Company  Options  or  Company  Warrants  outstanding  immediately  prior  to  the  Closing; plus (d)  the  aggregate  number  of  Company  Ordinary  Shares  issuable  upon  the  conversion  of  Company  Preference  Shares purchasable under or otherwise subject to Company Warrants outstanding immediately prior to the  Closing; plus (e)  the  aggregate  number  of Company  Ordinary  Shares  purchasable  under  or  otherwise  subject to any right (other than a Company Option or a Company Warrant) to acquire Company Shares  (whether  or  not  immediately  exercisable)  outstanding  immediately  prior  to  the  Closing  (in  each  case,  determined  on  an  as-converted-to- Company  Ordinary  Shares  basis); plus (f) the  aggregate  number  of  Company Ordinary Shares that would be issuable upon the conversion of any convertible securities of the  Company (other than Company Preference Shares) outstanding immediately prior to the Closing.         “Fundamental Company Representations” means: (a) the representations and warranties set forth  in Sections 2.1(a) (Due  Organization;  Etc.), 2.3 (Capitalization), 2.10(t) (Use  of  Name;  Trademark                                                                                                                                                                       9      

 

   Rights), 2.20 (Authority; Binding Nature of Agreements) and 2.22 (Brokers); (b) the representations and  warranties set forth in the Company Closing Certificate, to the extent such representations and warranties  relate to any of the matters addressed in any of the representations and warranties specified in clause “(a)”  above;  and  (c)  the  representations,  warranties,  certifications  and  other  statements  and  information  set  forth in the Company Consideration Spreadsheet.          “General Company Representations” means: (a) the representations and warranties set forth in the  Agreement, other than the Company Compliance Representations, the Company Tax Representations and  the  Fundamental Company  Representations; and  (b) the  representations  and warranties  set forth in the  Company  Closing  Certificate,  to  the  extent  such  representations  and  warranties  relate  to  any  of  the  matters addressed in any of the representations and warranties specified in clause “(a)” above.         “General  Representation  Expiration  Time”  has  the  meaning  assigned  to  such  term  in Section  9.1(a).         “Government  Official” means  any  person  qualifying  as  a  public  official  under  any  Legal  Requirement of any relevant jurisdiction, and also includes:                       (h)  a  person  who  holds  a  legislative,  judicial  or  managerial  position  in  or  with  a   Governmental Entity;                (i)  a person holding an official position, such as an employee,  officer or director, in   or with any Governmental Entity or state-owned or controlled commercial or other enterprise that has   supervisory or regulatory oversight over any of the Acquired Companies, or which is, or is likely to   become, a customer of any Acquired Company;                (j)  other  than  in  or  with  those  Governmental  Entities  described  in  clause  “(b)”   above, a person holding an official position, such as an officer or director, in or with any Governmental   Entity or state-owned or controlled commercial or other enterprise;                (k)  an individual “acting in an official capacity,” such as pursuant to a delegation of   authority, from a Governmental Entity to carry out official responsibilities;                 (l)  an official of a public international organization such as the United Nations, the   World Bank, the International Monetary Fund or a regional development bank;                (m)  an official of a political party or a candidate for political office;                (n)  an  immediate  family  member,  such  as  a  parent,  spouse,  sibling  or  child  of  a   person referred to in any of clauses “(a)” through “(f)” above; and                (o)  an agent or intermediary of any person referred to in any of clauses “(a)” through   “(g)” above.          “Governmental  Authorization”  means  any:  (a)  permit,  license,  approval,  certificate,  franchise,  permission,  clearance,  Consent,  registration,  variance,  sanction,  exemption,  order,  qualification  or  authorization  issued,  granted,  given  or  otherwise  made  available  by or  under  the  authority  of  any  Governmental Entity or pursuant to any applicable Legal Requirement; or (b) right under any Contract  with any Governmental Entity.                                                                                                                                                                       10      

 

         “Governmental Entity” means any: (a) nation, multinational, supranational, state, commonwealth,  province,  territory,  county,  municipality,  district  or  other  jurisdiction  of  any  nature;  (b)  federal,  state,  provincial, local, municipal, foreign or other government; (c) instrumentality, public sector undertaking,  state-owned  enterprise,  subdivision,  department,  ministry,  board,  court,  administrative  agency  or  commission, or other governmental entity, authority or instrumentality or political subdivision thereof; or  (d) quasi-governmental body exercising any executive, legislative, judicial, regulatory, taxing, importing  or  other  governmental  functions  or  any  stock  exchange  or  self-regulatory  organization,  including  the  Securities Industry Council of Singapore.         “Identified Premises” means all Leased Real Property which: (a) is a mother hub of any Acquired  Company that is identified in Part A of Schedule 6.12; (b) is an office of any Acquired Company that is  identified  in Part  B of Schedule 6.12.;  (c)  is  a  fulfilment  center,  facility  center  or  warehouse of  any  Acquired Company that is identified in Part C of Schedule 6.12; or (d) is in excess of 10,000 square feet  and is identified in Part D of Schedule 6.12 (other than any Leased Real Property referred to in clause  “(a),” “(b)” or “(c)” above).          “IFRS” means the International Financial Reporting Standards.         “Indebtedness” of a Person means, without duplication: (a) any obligation (including the principal  amount  thereof and,  if  applicable,  the  accreted  amount  thereof  and  the  amount  of  accrued  and  unpaid  interest thereon) of such Person, whether long-term or short-term, whether or not represented by a bond,  debenture, note or other security or instrument and whether or not convertible into any other security or  instrument,  for  the  repayment  of  money  borrowed,  whether  owing  to  a  bank,  to  another  financial  institution, to a Governmental Entity, on an equipment lease or otherwise; (b) any deferred obligation of  such Person for the payment of the purchase price of any property or other asset purchased (other than  current accounts payable that were incurred in the ordinary course of business); (c) any obligation of such  Person to pay rent or other amounts under a lease which is required to be classified as a capital lease or a  capitalized  liability  on  a  balance  sheet  prepared  in  accordance  with  IFRS  or  Indian  GAAP;  (d)  any  outstanding  reimbursement  obligation  of  such  Person  with  respect  to  any  letter  of  credit,  bankers’  acceptance or similar facility issued for the account of such Person that has been drawn upon; (e) any  obligation of such Person under any agreement with respect to any swap, forward, future or derivative  transaction or any option or similar agreement involving, or settled by reference to, any rate, currency,  commodity, price of any equity or debt security or instrument or any economic, financial or pricing index  or measure of economic, financial or pricing risk or value, or any similar transaction or combination of  the foregoing transactions; (f) any obligation secured by any Encumbrance existing on any property or  other asset owned by such Person, whether or not indebtedness secured thereby has been assumed; (g)  any guaranty, endorsement, assumption or other similar contingent obligation of such Person in respect  of,  or  to  purchase  or  to  otherwise  acquire,  any  indebtedness  of  another  Person;  and  (h) any  premium,  penalty, fee, expense, breakage cost or change of control payment required to be paid or offered in respect  of  any  of  the  foregoing  on  prepayment,  as  a  result  of  the  consummation  of  any  of  the  Contemplated  Transactions  or  any  transaction  in  connection  with  any  lender  Consent. For  clarity,  in  no  event  shall  Indebtedness include any intercompany indebtedness among the Acquired Companies.         “Indemnification Gross-Up Factor” means the fraction having: (a) a numerator equal to the sum  of (i) the Fully Diluted Share Number plus (ii) the aggregate number of Issued Shares; and (b) having a  denominator equal to the Fully Diluted Share Number.         “Indemnitees”  means  the  following  Persons:  (a)  Purchaser;  (b)  Purchaser’s  Affiliates;  (c)  the  respective  Representatives  of  the  Persons  referred  to  in  clauses  “(a)”  and  “(b)”  above;  and  (d)  the                                                                                                                                                                      11      

 

   respective  successors  and  assigns  of  the  Persons  referred  to  in  clauses  “(a),”  “(b)”  and  “(c)”  above;  provided, however, that none of the Acquired Companies shall be deemed to be “Indemnitees.”         “Indian Companies Act” means the (Indian) Companies Act, 2013 and the rules made thereunder.         “Indian GAAP” means generally accepted accounting principles and best practices in India.         “Indian Tax Year” means the 12-month period commencing on April 1st of a particular calendar  year and ending on March 31st of the following calendar year.         “Information Statement” has the meaning assigned to such term in the Recitals to the Agreement.         “Insider Receivables” has the meaning assigned to such term in Section 2.4(e).         “Intellectual Property” means algorithms, APIs, apparatus, data, data collections and databases,  diagrams, designs, formulae, inventions (whether or not patentable), know-how, logos, marks (including  brand names, product names, logos, domain names, and slogans), methods, network configurations and  architectures, processes, proprietary information, protocols, schematics, specifications, software, software  code (in any form, including source code and executable or object code), subroutines, techniques, user  interfaces, URLs, web sites, works of authorship (including presentations and all other written materials)  and other forms of technology (whether or not embodied in any tangible form and including all tangible  embodiments of the foregoing, such as instruction manuals, laboratory notebooks, prototypes, samples,  studies and summaries).         “Intellectual  Property  Rights” means  all  rights  of  the  following  types,  which  may  exist  or  be  created under the laws of any jurisdiction in the world, in each case whether registered or unregistered: (a)  rights  associated  with works  of  authorship,  including  exclusive  exploitation  rights,  design  rights,  and  copyrights; (b) Trademark rights, rights in domain names, and similar rights; (c) Trade Secret rights and  similar rights; (d) Patent and industrial property rights and similar rights; (e) other proprietary rights in  Intellectual Property; (f) database rights and similar rights; and (g) rights in or relating to registrations,  renewals, extensions, reversions, combinations, divisions, and reissues of, and applications for, any of the  rights referred to in clauses “(a)” through “(f)” above.         “IP Developer” has the meaning assigned to such term in Section 2.10(f)(ii).         “Issued Shares” has the meaning assigned to such term in the Recitals to the Agreement.         “JAMS Rules” means JAMS’ Comprehensive Arbitration Rules and Procedures.         An individual shall be deemed to have “Knowledge” of a particular fact or other matter if: (a)  such individual is actually aware of such fact or other matter; or (b) a prudent individual could reasonably  be  expected  to  have  discovered  or  otherwise  become  aware  of  such  fact  or  other  matter  after  having  conducted a reasonable inquiry under the circumstances with respect thereto. Further, the Company shall  be  deemed  to  have  “Knowledge”  of  a  particular  fact  or  other  matter  if  any  officer  or  director  of  the  Company, any individual serving in the role of chief executive officer or chief financial officer of any  Acquired Company or any other Person identified on Annex 1 to this Exhibit A, has or had Knowledge of  such fact or other matter. Purchaser shall be deemed to have “Knowledge” of a particular fact or other  matter if any officer or director of Purchaser has or had Knowledge of such fact or other matter.                                                                                                                                                                       12      

 

         “Leased  Real  Property”  means  any  real  property  leased  or  licensed  to  or  by  any  Acquired  Company.         “Legal Proceeding” means any action, suit, litigation, arbitration, application, claim, proceeding  (including  any civil,  criminal,  administrative,  investigative  or  appellate  proceeding),  hearing,  inquiry,  audit, examination, review or investigation commenced,  brought, conducted  or heard by or before  any  court  or  other  Governmental  Entity  (including  any  Taxing  Authority)  or  any  arbitrator  or  arbitration  panel.         “Legal  Requirement”  means  any  national,  federal,  state,  provincial,  local,  municipal,  foreign,  supranational or other law, statute, constitution, treaty, controlling principle of common law, directive,  resolution, ordinance,  code,  edict,  Order,  rule,  regulation  or  requirement  issued,  enacted,  adopted,  promulgated,  entered,  implemented  or  otherwise  put  into  effect  by  or  under  the  authority  of  any  Governmental Entity.         “Liability” means any debt, obligation, duty or liability of any nature (including any unknown,  undisclosed,  unmatured,  unaccrued,  unasserted,  contingent,  indirect,  conditional,  implied,  vicarious,  derivative,  joint,  several  or  secondary  liability),  regardless  of  whether  such  debt,  obligation,  duty  or  liability  would  be  required  to  be  disclosed  on  a  balance  sheet  prepared  in  accordance  with IFRS and  regardless of whether such debt, obligation, duty or liability is immediately due and payable.         “Liquidation  Event  Waiver”  has  the  meaning  assigned  to  such  term  in  the  Recitals  to  the  Agreement.         A document or other item of information shall be deemed to have been “Made Available” only if:  (a) such document or other item of information was, at all times during the period from May 5, 2018 at  6:00 pm (India Standard Time) through the Agreement Date, included (in the appropriate location) in, and  properly categorized and indexed in, the Virtual Data Room; and (b) Purchaser’s Representatives had full  access to such document or other item throughout such period.         “Material Adverse Effect” means any change, event, effect, claim, circumstance or matter (each,  an “Effect”) that (considered together with all other Effects) is, or could reasonably be expected to be or  to become, materially adverse to: (a) the business, condition, assets, liabilities, operations or results of  operations of the Acquired Companies, taken as a whole; (b) Purchaser’s right to own, transfer or exercise  voting rights with respect to, or to receive dividends or other distributions with respect to, any Company  Shares following the Closing; or (c) the ability of the Company to perform any of its material covenants  or obligations under the Agreement or under any other Transaction Document; provided, however, that,  for purposes of clause “(a)” only, none of the following shall, either alone or in combination, be taken  into account in determining whether a Material Adverse Effect has occurred (unless, in the case of each of  clauses  “(i),”  “(ii),”  “(iii),”  “(iv)”  and  “(v)”  below,  it  has  a  disproportionate  effect  on  any  Acquired  Company as compared to the other companies in the industry in which such Acquired Company operates,  in  which  case,  only  the  extent  of  such  disproportionate  effect  shall  be  taken  into  account  when  determining whether a Material Adverse Effect has occurred): (i) adverse changes in general economic  conditions, adverse changes affecting the industry in which the Acquired Companies operate or adverse  changes  in  global  capital  or  global  financial  markets  generally,  in  each  case,  occurring after  the  Agreement Date; (ii) acts of war, sabotage or terrorism or military actions (or any escalation or worsening  thereof), in each case, occurring after the Agreement Date; (iii) earthquakes, hurricanes, tornadoes, floods  or  other  natural  disasters, in  each  case,  occurring  after  the  Agreement  Date;  (iv)  changes  after  the  Agreement Date in Legal Requirements (or the interpretation thereof), excluding (A) any change in the                                                                                                                                                                      13      

 

   (Indian) Foreign Exchange Management Act, 1999 or any rule, regulation or circular promulgated, made  or  issued  thereunder or  the  interpretation  of  any  of  the  foregoing  and  (B)  any  change  in  any  Legal  Requirement  directly  relating  to  the (Indian)  Foreign  Exchange  Management  Act,  1999  or  any  rule,  regulation  or  circular  promulgated,  made or  issued  thereunder or  the  interpretation  of  any  of  the  foregoing; (v) changes after the Agreement Date in IFRS (or the interpretation thereof); (vi) any loss of,  or  adverse  change  in  the  Acquired  Companies’  relationships  with,  employees,  customers,  suppliers  or  business  partners  of  the  Acquired  Companies  after  the  Agreement  Date  that  has  arisen  from  the  announcement  or  pendency  of  the  Agreement;  (vii)  any  failure  to  take  a  specifically  identified  action  requested by the Company that is prohibited by the terms of Section 4.2 (other than Sections 4.2(a), 4.2(b)  and 4.2(c)) of the Agreement for which such specifically identified action Purchaser has not provided its  consent following receipt of a written request therefor from the Company; or (viii) any failure, in and of  itself, of the Company to meet financial projections, estimates or forecasts after the Agreement Date (it  being  understood  that  any  fact  or  circumstance  giving  rise  to  such  failure  may  constitute  a  Material  Adverse  Effect  and  may  be  taken  into  account  in  determining  whether  a  Material  Adverse  Effect  has  occurred).         “Material  Contract”  means:  (a)  each  Company  Contract  described  in  clauses  “(i)”  through  “(ix)”of Section 2.11(a);  (b)  each  Company  Contract  identified,  or  required  to  be  identified,  in Part  2.11(a) of the Disclosure Schedule; (c) each Company Contract identified, or required to be identified, in  Part 2.10(b) of  the  Disclosure  Schedule; (d)  each  Company  Contract  Made  Available  to  Purchaser,  or  required to be Made Available to Purchaser, pursuant to Section 2.10(c); and (e) each Company Contract  that contemplates or involves (i) the payment or delivery of cash or other consideration by any Acquired  Company  in  an  amount  or  having  a  value  in  excess  of  $500,000  individually,  or  $1,000,000  in  the  aggregate when taken together with all other Company Contracts involving such Person or such Person’s  Affiliates between April 1, 2017 and March 31, 2018 or (ii) the performance of services having a value in  excess  of  $500,000  individually,  or  $1,000,000  in  the  aggregate  when  taken  together  with  all  other  Company Contracts involving such Person or such Person’s Affiliates between April 1, 2017 and March  31, 2018.          “Most Recent Balance Sheet” has the meaning assigned to such term in Section 2.4(d).         “New Shareholders’ Agreement” has the meaning assigned to such term in Section 6.6(k).         “Notice of Claim” has the meaning assigned to such term in Section 9.5(a).         “Open Source Code” means any Computer Software that is distributed under “open source” or  “free  software”  terms,  including  any  Computer  Software  distributed  under  the  GPL,  LGPL,  AGPL,  Mozilla License, Apache License, Common Public License, BSD license or similar terms and including  any Computer Software distributed or made available with any license term or condition that imposes or  could  impose  a  requirement  or  condition  that  the  licensee  under  such  terms grant  a  license  under  or  refrain  from  asserting  or  enforcing  any  of  its  Patent  rights  or  that  such  Computer  Software  or  any  modification or derivative work of such Computer Software or part thereof be: (a) disclosed, distributed  or made available in source code form; (b) licensed for the purpose of making modifications or derivative  works; or (c) redistributable at no charge.         “Option Grant Date” has the meaning assigned to such term in Section 2.3(c).         “Order”  means  any  order,  writ,  injunction,  judgment,  edict,  decree,  ruling  or  award  of  any  arbitrator or any court or other Governmental Entity.                                                                                                                                                                      14      

 

         “Owned Company IP” has the meaning assigned to such term in Section 2.10(c).         “Parent” has the meaning assigned to such term in the Preamble to the Agreement.         “Patents” means patents (including utility, utility model, plant and design patents, and certificates  of  invention),  patent  applications  (including  additions,  provisional,  national,  regional  and  international  applications, as well as original, continuation, continuation-in-part, divisional, and continued prosecution  applications, and all patents issuing thereon), reissues, reexaminations, substitutes, and extensions of any  of the foregoing, patent or invention disclosures, registrations, applications for registrations and any term  extension or other governmental action which provides rights beyond the original expiration date of any  of the foregoing.         “PCI-DSS” has the meaning assigned to such term in Section 2.10(r).         “Permitted Encumbrances” means (a) statutory liens for current Taxes (other than payroll Taxes)  not yet due and payable, (b) conditional sales or similar security interests granted in connection with the  purchase of equipment or supplies in the ordinary course of business, (c) statutory liens to secure non- delinquent obligations to landlords, lessors or renters under leases or rental agreements, (d) deposits or  pledges  made  in  connection  with,  or  to  secure  payment of,  workers’  compensation,  unemployment  insurance or similar programs mandated by applicable Legal Requirements, (e) statutory liens in favor of  carriers, warehousemen, mechanics, and materialmen to secure claims for labor, materials, or supplies and  other like liens incurred in the ordinary course of business, in each case for sums not yet due and payable,  (f)  with  respect  to  Acquired  Company  securities,  any  restrictions  on  transfer  imposed  by  applicable  securities  laws,  and  (g)  such  imperfections  of  title  and  encumbrances,  if  any,  which  are  minor  in  character, amount and extent, and which do not, individually or in the aggregate, materially detract from  the value, or materially interfere with the present use, of the property subject thereto or affected thereby.         “Person” means any individual, Entity or Governmental Entity.         “Personal  Data” means:  (a) a  natural  person’s  name,  age,  gender,  street  address,  telephone  number, e-mail address, photograph, social security number, driver’s license number, passport number,  customer  or  account  number,  marital  status,  health,  economic  status,  professional  training,  personal  beliefs, opinions or any other piece of information that allows the identification of a natural person; and  (b)  any  information  defined  as  “personal information”  or  “personal  data”  or  any  similar  term that  is  subject to the privacy laws or other Legal Requirements of any jurisdiction (including the Information  Technology Act, 2000, the Information Technology (Reasonable Security Practices and Procedures and  Sensitive Personal Data or Information) Rules, 2011, and the Aadhaar (Targeted Delivery of Financial  and Other Subsidies, Benefits and Services) Act, 2016) as such Legal Requirements may be amended,  modified, restated or replaced from time to time.          “Pre-Closing Financial Statements” has the meaning assigned to such term in Section 4.1(b).         “Pre-Closing Period” has the meaning assigned to such term in Section 0.         “Preemptive  Rights  Waiver”  has  the  meaning  assigned  to  such  term  in  the  Recitals  to  the  Agreement.         “Price Per Primary Share” means an amount denominated in dollars equal to the Adjusted Pre- Money Company Equity Value divided by the Fully Diluted Share Number.                                                                                                                                                                      15      

 

         “Primary Allocation Gross-Up Factor” means the fraction having: (a) a numerator equal to the  sum  of  (i)  the  aggregate  number  of  Purchased  Shares (determined  on  an  as-converted-to-Company  Ordinary Shares  basis) plus (ii) the aggregate  number of Issued  Shares; and (b) having a  denominator  equal to the aggregate number of Issued Shares.         “Primary  Post-Issuance  Ownership  Percentage”  means  the  percentage  representing  the  fraction  having: (a) a numerator equal to the aggregate number of Issued Shares; and (b) a denominator equal to  the sum of (i) the Fully Diluted Share Number plus (ii) the aggregate number of Issued Shares.         “Primary Specified  Fraction”  means a  fraction  having:  (a)  a  numerator  equal  to  the  aggregate  number  of  Issued  Shares;  and  (b)  a  denominator  equal  to  the  sum  of  (i)  the  aggregate  number  of  Purchased  Shares (determined  on  an  as-converted-to-Company  Ordinary  Shares  basis), plus (ii)  the  aggregate number of Issued Shares.         “Privacy Laws” means: (a) all Legal Requirements applicable to the privacy, security, protection  or Processing (or both) or Personal Data, or the protection of consumers, the Payment Card Industry Data  Security Standards, and direct marketing, e-mails, text messages or telemarketing; (b) guidance issued by  a Governmental Entity that pertains to any Legal Requirement, rule or standard described in clause “(a)”  above; and (c) industry self-regulatory principles applicable to the protection or Processing of Personal  Data, direct marketing, e-mails, text messages or telemarketing.         “Process,”  “Processed”  or  “Processing”  means,  with  respect  to  data,  the  use,  collection,  processing,  storage,  recording,  organization,  adaptation,  alteration,  transfer,  retrieval,  consultation,  disclosure, dissemination, or combination of such data.         “Purchased Shares” has the meaning assigned to such term in the Share Purchase Agreement.         “Purchaser” has the meaning assigned to such term in the Preamble to the Agreement.         “Purchaser Cure Period” has the meaning assigned to such term in Section 8.1(g).         “Purchaser  Derivative  Damages”  means  Damages  deemed  to  be  incurred  by  Purchaser  by  operation of Section 9.2(b)(i) as a result of Damages that an Acquired Company has suffered, incurred or  otherwise become subject to.         “Purchaser Guarantee” has the meaning assigned to such term in Section 10.19(b).         “Purchaser Guaranteed Obligations” has the meaning assigned to such term in Section 10.19(a).         “RBI” means the Reserve Bank of India.         “Registered IP” means all Intellectual Property Rights that are registered, filed, or issued under  the authority of, with or by any Governmental Entity (or other registrar in the case of domain names),  including all Patents, registered copyrights, registered Trademarks, registered designs, domain names, and  all applications for any of the foregoing.         “Related Party” means: (a) each shareholder of the Company as of the Agreement Date; (b) any  Person who is or may be classified as a related party of any Acquired Company pursuant to the Indian  Companies Act; (c) each member of the immediate family of each of the individuals referred to in clauses                                                                                                                                                                      16      

 

   “(a)” and “(b)” above; and (d) any trust or other Entity (other than the Company) in which any one of the  Persons referred to in clauses “(a)”, “(b)” or “(c)” above holds (or in which more than one of such Persons  collectively hold), beneficially or otherwise, a material voting, proprietary or equity interest.  For clarity:  (i)  in  no  event  shall  any  portfolio  company  (whether  privately  held  or  publicly  traded)  of  a  venture  capital, private equity, strategic or angel investor be considered a Related Party; and (ii) Microsoft Global  Finance,  Aceville  Pte.  Ltd.,  eBay  Singapore  Services  Private  Limited, UBS  AG,  London  Branch  and  BCCL will be deemed to be strategic investors in the Company for purposes of this definition.         “Representatives”  means  officers,  directors,  employees,  secondees,  agents,  attorneys,  accountants, advisors and representatives. The term “Representatives” shall be deemed to include current  and future “Representatives.”           “Repurchase  Transactions”  has  the  meaning  assigned  to  such  term  in  the  Recitals  to  the  Agreement.         “Response Notice” has the meaning assigned to such term in Section 9.5(b).         “Secondary Sellers” has the meaning assigned to such term in the Recitals to the Agreement.         “Secondary  Share  Purchase”  has  the  meaning assigned  to  such  term  in  the  Recitals  to  the  Agreement.         “Series  A  Shares”  means,  collectively,  the  compulsorily  convertible  preference  shares  in  the  capital  of  the  Company  issued  pursuant  to  the  terms  of  Regulation  6A  of  the  Constitution  of  the  Company.          “Series B Shares” means, collectively, the preference shares in the capital of the Company issued  pursuant to the terms of Regulation 6B of the Constitution of the Company.          “Series C Shares” means, collectively, the preference shares in the capital of the Company issued  pursuant to the terms of Regulation 6C of the Constitution of the Company.          “Series D Shares” means, collectively, the preference shares in the capital of the Company issued  pursuant to the terms of Regulation 6D of the Constitution of the Company.          “Series Deeds” means, collectively, (a) the October 2011 Subscription Agreement (as such term  is defined in the Existing Shareholders’ Agreement), (b) the November 2011 Subscription Agreement (as  such term is defined in the Existing Shareholders’ Agreement), (c) the January 2012 Subscription Deed  (as such term is defined in the Existing Shareholders’ Agreement), (d) the March 2012 Subscription Deed  (as such term is defined in the Existing Shareholders’ Agreement), (e) the August 2012 Subscription Deed  (as such term is defined in the Existing Shareholders’ Agreement), (f) the June 2013 Subscription Deed  (as such term is defined in the Existing Shareholders’ Agreement), (g) the September 2013 Supplemental  Agreement  (as  such  term  is  defined  in  the  Existing  Shareholders’  Agreement),  (h)  the  October  2013  Supplemental Agreement (as such term is defined in the Existing Shareholders’ Agreement), (i) the April  2014 Subscription Deed (as such term is defined in the Existing Shareholders’ Agreement), (j) the June  2014 Investment Deed (as such term is defined in the Existing Shareholders’ Agreement), (k) the July  2014  Investment  Deed  (as  such  term  is  defined  in  the  Existing  Shareholders’  Agreement),  (l)  the  December 3, 2014 Subscription Deed (as such term is defined in the Existing Shareholders’ Agreement),  (m) the Series G Supplemental Deed (as such term is defined in the Existing Shareholders’ Agreement),                                                                                                                                                                      17      

 

   (n) the Series H Subscription Deed (as such term is defined in the Existing Shareholders’ Agreement), (o)  the Series H Supplemental Deed (as such term is defined in the Existing Shareholders’ Agreement), (p)  the Series I Subscription Deed (as such term is defined in the Existing Shareholders’ Agreement), (q) the  Supplemental  Agreement,  dated  July  8,  2013,  by  and between  Tiger  Global  International  II  Holdings,  Intervision  (Services)  Holdings  BV,  Accel  Growth  FII  (Mauritius)  LTD  and  the  Company  and  (r)  the  Investment  Deed,  dated  October  15,  2014,  by  and  among  the  Company,  Next  Generation  Payments  Private Limited and Mr. Sourabh Jain.          “Series E Shares” means, collectively, the preference shares in the capital of the Company issued  pursuant to the terms of Regulation 6E of the Constitution of the Company.          “Series F Shares” means, collectively, the preference shares in the capital of the Company issued  pursuant to the terms of Regulation 6F of the Constitution of the Company.          “Series G Shares” means, collectively, the preference shares in the capital of the Company issued  pursuant to the terms of Regulation 6G of the Constitution of the Company.          “Series H Shares” means, collectively, the preference shares in the capital of the Company issued  pursuant to the terms of Regulation 6H of the Constitution of the Company.          “Series I Shares” means, collectively, the preference shares in the capital of the Company issued  pursuant to the terms of Regulation 6I of the Constitution of the Company.          “Share Issuance” has the meaning assigned to such term in the Recitals to the Agreement.         “Share  Purchase  Agreement”  has  the  meaning  assigned  to  such  term  in  the  Recitals  to  the  Agreement.         “Side Letter” means that certain letter agreement dated as of September 20, 2017, among Aceville  Pte. Ltd.,  Microsoft Global Finance, eBay Singapore Services  Private  Limited, SVF Holdings  (Jersey)  L.P. and the Company.         “Singapore Takeover Code” means the Singapore Code on Takeovers and Mergers as issued by  the Monetary Authority of Singapore pursuant to section 321 of the Securities and Futures Act.         “Specified  Exchange  Rate”  means,  for  the  purpose of  translating  an  amount  denominated  in a  currency  other  than  dollars  into  dollars,  the  average  daily  exchange  rate  between  such  currency  and  dollars for the five consecutive Business Days immediately preceding the Closing Date, as such exchange  rates are reported on the Financial Times website at FT.com.         “Specified Subsidiary” means Instakart Services Private Limited.         “Specified  Tax  Proceeding”  means  any  Legal  Proceeding  identified  on Part 2.14(c) or Part  2.19(a)-1 of the Disclosure Schedule (including any appeal with respect to such Legal Proceeding): (a)  that was commenced against an Acquired Company by a Taxing Authority and involves the assertion by  such  Taxing  Authority  of  a  failure  by  such  Acquired  Company  to  comply  with  any  Tax  Legal  Requirement;  and (b)  for  which  a  reserve  has  been  established  on  the  Most  Recent  Balance  Sheet  in  accordance with IFRS.                                                                                                                                                                       18      

 

         “Specified Warrant Cancelation” has the meaning assigned to such term in Section 4.12.         “Specified Warrant Cancelation Payment” has the meaning assigned to such term in Section 4.12.         “Specified  Warrant  Cancelation  Payment  Amount”  means the  aggregate  dollar amount  (determined  using  the  Specified  Exchange  Rate,  as  applicable) of  the  Specified  Warrant  Cancelation  Payment.         “Stipulated Amount” has the meaning assigned to such term in Section 9.5(e).         An  Entity  shall  be  deemed  to  be  a  “Subsidiary”  of  another  Person  if  such  Person  directly  or  indirectly owns or purports to own, beneficially or of record: (a) an amount of voting securities of or other  interests in such Entity that is sufficient to enable such Person to elect at least a majority of the members  of such Entity’s board of directors or other governing body; or (b) at least 50% of the outstanding equity,  voting, beneficial or ownership interests in such Entity.         “Tax”  includes  all  forms  of  taxation  and  statutory,  governmental,  supra-governmental,  supranational, state, principal, local government or municipal impositions, duties, contributions, charges  and levies, whenever imposed, and all penalties, charges, surcharges, costs, expenses and interest relating  thereto,  including:  (a)  income,  gross  receipts,  net  proceeds,  profits,  corporation,  turnover,  excise,  real  property, personal property (tangible and intangible), stamp duty, sales, use, leasing, license, registration,  transfer,  franchise,  payroll,  social  security,  occupational,  premium,  employment,  unemployment,  severance,  disability,  transfer  pricing,  value  added,  escheat,  ad  valorem,  environmental,  capital  stock,  capital duty, estimated, gains, wealth, welfare, and any deductions or withholdings or other similar taxes  (including any duty, fee, assessment, impost or other charge in the nature of or in lieu of any tax); (b) all  penalties, charges, surcharges, costs, expenses and interest relating thereto; and (c) any liability for the  payment  of  amounts  described  in  clauses  “(a)”  and  “(b)”  above  as  a  result  of  any  Tax  sharing,  Tax  indemnity or Tax allocation agreement or any other express or implied agreement to pay or indemnify any  other Person whether by contract or otherwise, regardless of whether any such taxes, impositions, duties,  contributions, charges and levies are  chargeable  directly or primarily against or attributable  directly or  primarily  to  any  Acquired  Company  (including  taxes  imposed  on  the  Company  as  a  transferee  or  successor, or by reason of Contract, assumption, operation of Legal Requirement or otherwise) or any  other Person and regardless of whether any amount in respect of any of them is recoverable from any  other Person.         “Tax Return” means any return (including any information return), report, statement, declaration,  self-assessment, estimate, schedule, notice, notification, form, election, certificate or other document or  information filed with or submitted to, or required to be filed with or submitted to, any Governmental  Entity  in  connection  with  the  determination,  assessment,  collection  or  payment  of  any  Tax  or  in  connection with the administration, implementation or enforcement of or compliance with any applicable  Legal Requirement relating to any Tax.          “Taxing  Authority”  means,  with  respect  to  any  Tax,  any  Governmental  Entity  or  political  subdivision thereof that is competent to impose, administer, levy or assess such Tax, and the agency (if  any) charged with the collection of such Tax for such Governmental Entity or subdivision, including any  governmental or quasi-Governmental Entity or agency that is competent to impose, administer, levy or  assess, or is charged with collecting, social security or similar charges or premiums.         “Threshold Amount” has the meaning assigned to such term in Section 9.3(a).                                                                                                                                                                      19      

 

          “Trade Secrets” means trade secrets (as defined by applicable law) and confidential information,  including  all  source  code,  documentation,  know  how,  processes,  technology,  formulae,  customer  lists,  business and marketing plans, inventions (whether or not patentable) and marketing information.         “Trademarks” means  trademarks,  service  marks,  trade  names,  trade  dress,  logos,  corporate  names, rights in business and get-up and other source or business identifiers (in each case whether or not  registered) and any registrations, applications, renewals and extensions of each of the foregoing and all  goodwill associated with each of the foregoing.         “Transaction Bonus” means any cash severance compensation, bonus, incentive or benefit paid or  payable by or on behalf of any Acquired Company to any Company Employee or any other Person in  connection  with  any  of  the  Contemplated  Transactions  (for  clarity,  excluding  any  “double-trigger”  obligations  or  obligations  first  incurred  by  any  Acquired  Company  following  the  Closing  that  are  unrelated to any pre-Closing commitment or other action).          “Transaction  Documents”  means,  collectively,  the  Agreement,  the  Share  Purchase  Agreement,  the Company Consideration Spreadsheet and each other agreement, certificate or document referred to in  the Agreement or to be executed in connection with any of the Contemplated Transactions.         “Transfer Regulations” has the meaning assigned to such term in Section 2.15(f).         “Treasury  Regulations”  means  the  United  States  Treasury  Regulations  promulgated  under  the  Code         “UBS SPA” means that certain Sale and Purchase Agreement dated as of October 26, 2015, by  and among Amicorp Trustees (Singapore) Limited, the Company and UBS AG, London Branch.         “User Data” means any Personal Data or other data or information collected by or on behalf of  any  Acquired  Company  from  users  of  any  Company  Website  or  any  Company  Product  or  Company  Software.         “Virtual Data Room” means the virtual data room established by the Company in connection with        the Contemplated Transactions.                                                                                                                                                                        20      

 

                                EXHIBIT D   FORM OF NEW SHARHEOLDERS’ AGREEMENT                                                                                                                                         21                                

 

                                                                  SHAREHOLDERS AGREEMENT                                 among                                                        FLIPKART PRIVATE LIMITED                                  and                  THE SHAREHOLDERS PARTY HERETO                                                                 Dated as of [●]1                                                                                                                                                                                                                                                                                                                          1 Date to be set as of Closing.                                                                                                                                                                        22                                

 

                                TABLE OF CONTENTS                                                                             Page  ARTICLE I DEFINITIONS .........................................................................................................4        Section 1.1 Certain Terms...............................................................................................4        Section 1.2 Rules of Interpretation. ..............................................................................12  ARTICLE II THE COMPANY ..................................................................................................14        Section 2.1 Organization of the Company; Capitalization. ..........................................14        Section 2.2 Registered Office .......................................................................................14  ARTICLE III BOARD OF DIRECTORS .................................................................................14        Section 3.1 Composition and Size of the Board ...........................................................14        Section 3.2 Rights and Manner of Appointment ..........................................................14        Section 3.3 Powers of the Board ...................................................................................15        Section 3.4 Committees of the Board ...........................................................................15        Section 3.5 Alternate Directors .....................................................................................16        Section 3.6 Non-Executive Status.................................................................................16        Section 3.7 Regard to Appointer's Interest ...................................................................16        Section 3.8 Board Meetings and Voting .......................................................................16  ARTICLE IV SHAREHOLDERS’ MEETINGS ......................................................................17        Section 4.1 Shareholders’ Meetings .............................................................................17        Section 4.2 Wal-Mart Veto Matters ..............................................................................18        Section 4.3 Minority Veto Matters. ..............................................................................19        Section 4.4 Voting Obligation ......................................................................................19  ARTICLE V MANAGEMENT ..................................................................................................19        Section 5.1 Appointment of Executives........................................................................19  ARTICLE VI INFORMATION RIGHTS.................................................................................20        Section 6.1 Reporting....................................................................................................20        Section 6.2 Limitations due to Competitor Shareholdings ...........................................20        Section 6.3 Confidentiality ...........................................................................................20  ARTICLE VII REPRESENTATIONS, WARRANTIES AND COVENANTS .....................20        Section 7.1 Representations and Warranties of Shareholders ......................................20        Section 7.2 Controlled Foreign Company. ...................................................................21        Section 7.3 Tax Matters. ...............................................................................................22        Section 7.4 Internal Policies and Procedures. ...............................................................23        Section 7.5 Applicable ABAC Laws, Applicable Money Laundering Laws and                    Sanctions ....................................................................................................24        Section 7.6 Market Stand-Off. ......................................................................................25        Section 7.7 Non-Solicitation and Non-Competition .....................................................26        Section 7.8 Restrictions on Company Issuances...........................................................27        Section 7.9 Payment-Related Agreements. ...................................................................27        Section 7.10 Waiver and Release....................................................................................27                                                                                      i    

 

           Section 7.11 Change in Domicile Consultation ..............................................................27  ARTICLE VIII PREEMPTIVE RIGHTS.................................................................................28        Section 8.1 Subsequent Offerings .................................................................................28        Section 8.2 Exercise of Rights ......................................................................................28        Section 8.3 Failure to Fully Exercise Rights ................................................................28        Section 8.4 Excluded Securities ....................................................................................28        Section 8.5 Termination and Waiver of Preemption Rights .........................................30        Section 8.6 Prohibited Issuance ....................................................................................30        Section 8.7 Assignment ................................................................................................30  ARTICLE IX TRANSFER OF SHARES ..................................................................................30        Section 9.1 Restriction on Transfers .............................................................................30        Section 9.2 Deed of Accession .....................................................................................30        Section 9.3 Exemptions; Conditions. ............................................................................30        Section 9.4 Prohibited Transfers ...................................................................................31        Section 9.5 Shareholder Anti-Liquidity Covenant........................................................31        Section 9.6 Transfers to Alibaba ...................................................................................31  ARTICLE X RIGHTS OF FIRST REFUSAL; CO-SALE RIGHTS; ....................................32        Section 10.1 Notice of Proposed Sale .............................................................................32        Section 10.2 Exercise of Right........................................................................................32        Section 10.3 Failure to Exercise Right ...........................................................................33        Section 10.4 Co-Sale Right. ............................................................................................33        Section 10.5 Change of Control Liquidity Right ............................................................34        Section 10.6 Competitor Investment Liquidity Right. ....................................................34  ARTICLE XI DRAG-ALONG RIGHTS. .................................................................................34        Section 11.1 General .......................................................................................................34        Section 11.2 Procedure ...................................................................................................35        Section 11.3 Failure to Comply ......................................................................................35        Section 11.4 Conditions ..................................................................................................35  ARTICLE XII TRANSFER-RELATED MATTERS ..............................................................37        Section 12.1 Representations and Warranties Relating to Transfer ...............................37        Section 12.2 Other Actions. ............................................................................................38        Section 12.3 Closing Consideration. ...............................................................................39        Section 12.4 Limitation on Liability. ..............................................................................39  ARTICLE XIII TERMINATION ..............................................................................................40        Section 13.1 Termination Generally ...............................................................................40        Section 13.2 Accrued Rights and Obligations ................................................................40        Section 13.3 Survival ......................................................................................................40  ARTICLE XIV DISPUTE RESOLUTION ...............................................................................40        Section 14.1 Dispute Resolution. ....................................................................................40                                                                                     ii  

 

     ARTICLE XV CONFIDENTIALITY .......................................................................................41        Section 15.1 Confidentiality. ..........................................................................................41  ARTICLE XVI MISCELLANEOUS .........................................................................................42        Section 16.1 Inconsistency..............................................................................................42        Section 16.2 Governing Law ..........................................................................................42        Section 16.3 Successors and Assigns..............................................................................42        Section 16.4 Entire Agreement .......................................................................................42        Section 16.5 Specific Performance .................................................................................42        Section 16.6 Notices .......................................................................................................43        Section 16.7 Amendments and Waivers .........................................................................43        Section 16.8 Delays or Omissions ..................................................................................44        Section 16.9 Counterparts ...............................................................................................44        Section 16.10 Severability ................................................................................................44        Section 16.11 Interim Relief .............................................................................................44        Section 16.12 Conflict with Constitution..........................................................................44        Section 16.13 Costs and Expenses ....................................................................................45        Section 16.14 Third Parties ...............................................................................................45    SCHEDULE 1           MINORITY SHAREHOLDERS*  SCHEDULE 2           FAIR MARKET VALUE*  SCHEDULE 3           SHARE OWNERSHIP*  SCHEDULE 4           WAL-MART COLLECTIVE VETO MATTERS*  SCHEDULE 5           WAL-MART INDEPENDENT VETO MATTERS*  SCHEDULE 6           MINORITY COLLECTIVE VETO MATTERS*    EXHIBIT A            FORM OF REGISTRATION RIGHTS AGREEMENT*  EXHIBIT B            FORM OF DEED OF ACCESSION*  EXHIBIT C            FORM OF INDEMNIFICATION AGREEMENT*  EXHIBIT D            FORM OF PFIC STATEMENT*    * Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. A copy of any  omitted schedule or exhibit will be furnished supplementally to the SEC upon request.                                                                                         iii  

 

                                SHAREHOLDERS AGREEMENT                                    PREAMBLE         THIS SHAREHOLDERS AGREEMENT, is made and delivered as a DEED as of [●]1 (this  “Agreement”), among FLIPKART PRIVATE LIMITED, a  company  incorporated  under the laws of  Singapore  (the  “Company”); FIT HOLDINGS  S.A.R.L.,  a  company  incorporated  under  the  laws  of  Luxembourg (“Wal-Mart”); and the Persons whose names and particulars are listed in Schedule 1. Certain  capitalized terms used in this Agreement are defined in Section 1.1.                                     RECITALS               The Company was incorporated on October 4, 2011 and is engaged in the Fit Business  through the other Fit Group Companies.               Pursuant  to  a  Share  Purchase  Agreement  entered  into  between  Wal-Mart  and  certain  shareholders of the Company dated May 9, 2018 for the sale of Equity Securities of the Company to Wal- Mart (the “Share Purchase Agreement”) and a Share Issuance and Acquisition Agreement entered into  between Wal-Mart and the Company dated May 9, 2018 for the issuance and allotment of new Ordinary  Shares  in  the  Company  to  Wal-Mart   (the  “Share  Issuance  Agreement”),  Wal-Mart  will  acquire  [●]  percent ([●]%)2 of the issued share capital of the Company (the  “Transaction”).  Simultaneously with the  consummation  of  the  Transaction,  pursuant  to  the  Transaction  Documents,  the  Company  Preference  Shares  (as  defined  in  the  Share  Purchase  Agreement)  shall convert into  Ordinary  Shares.  Immediately  prior to the execution of this Agreement and as of the consummation of the Transaction, pursuant to the  Transaction Documents, the Existing Shareholders Agreement was terminated.               The Parties wish to establish their respective rights and obligations with respect to the Fit  Business and to specify in this Agreement the terms of their agreement as to certain matters relating to the  activities and governance of the Company and ownership and disposition of its securities.               Concurrently with the execution and delivery of this Agreement, the Parties are entering  into a Registration Rights Agreement in the form attached hereto as Exhibit A (the “Registration Rights  Agreement”).         Accordingly, in consideration of the foregoing, and for other good and valuable consideration, the  receipt and adequacy of which are hereby acknowledged, the Parties hereby agree as follows:                                     ARTICLE I                                   DEFINITIONS          Section 1.1 Certain  Terms.   The  following  capitalized  terms  have  the  meanings  specified  below:          1 Date to be set as of Closing.         2 To be confirmed as of Closing.                                                                                     iv  

 

            “Accredited Investor” has the meaning assigned to such term under Rule 501 of Regulation D of  the Securities Act;         “Affiliate” means:         (a)   in relation to a natural person: the spouse, parent, sibling or child (including a step child)              of such person;         (b)   in relation to any Entity: any Person that Controls, is Controlled by, or is under common              Control with, such Entity; and         (c)   in  relation  to  an  investment  fund  or  private  fund,  it  shall  also  include  any  other              investment fund or private fund under common Control with such fund or managed by              the manager of such investment fund or private fund (it being understood, however, that,              for the avoidance of doubt, an Entity in which such investment fund or private fund has              merely made an investment shall not be deemed an Affiliate of such investment fund or              private fund, solely as a result of such investment).         For the avoidance of doubt, any Person will only be considered an Affiliate for so long as such  Person continues to meet the requirements of the definition of “Affiliates” as aforesaid;          “Alibaba” means Alibaba Group Holdings Limited (and its Affiliates) and Ant Financial Services  Group (and its Affiliates) or such companies as may operate the businesses of Alibaba or Ant Financial  from time to time after the date hereof; provided, however, that, solely for purposes of Section 9.6, the  term “Alibaba” shall mean solely Alibaba Group Holdings Limited, Ant Financial Services Group and  each  direct  or  indirect wholly-owned,  majority-owned  or  consolidated  subsidiary  of  Alibaba  Group  Holdings Limited or Ant Financial Services Group.          “Alibaba Transfer” has the meaning given in Section 9.6.         “Alibaba Investment” has the meaning given in Section 10.6.         “Alternate Director” has the meaning given in Section 3.5;         “Applicable  ABAC  Laws”  means  all  Laws  applying  to  any  Fit  Group  Company  prohibiting  bribery, money laundering and other forms of corruption, including fraud, tax evasion, insider trading and  market  manipulation  (which  shall  be  deemed  to  include  the  Laws  of  India,  Singapore,  Mauritius,  the  United Kingdom and the United States of America);         “Applicable  Money  Laundering  Laws”  means  the  Laws  applying  to  any  Fit  Group  Company  (which shall be deemed to include the Laws of India, Singapore, Mauritius, the United Kingdom and the  United States of America) prohibiting money laundering and similar activities;         “Appointment Committee” has the meaning given in Section 3.4;         “Approving Shareholders” has the meaning given in Section 11.1;          “Arbitration Tribunal” has the meaning given in Section 14.1(b);         “Asset Sale” means: (a) the sale, lease, transfer, exclusive license or other disposition, in a single  transaction or series of related transactions, by any Fit Group Company of all or substantially all of the                                         2                                                                                       

 

      assets or intellectual property rights of the Fit Group taken as a whole; or (b) the sale, transfer or other  disposition (whether by sale of shares, merger, consolidation, amalgamation, scheme of arrangement or  otherwise) of one or more Fit Group Companies if substantially all of the assets or intellectual property  rights of the Fit Group taken as a whole are held by such Fit Group Company or Fit Group Companies,  except, in the case of each of clauses “(a)” and “(b)” above, where such sale, lease, transfer, exclusive  license or other disposition is to one or more Fit Group Companies;          “Board” means the board of directors of the Company;         “Budget” means the budget and business plan for the Fit Group prepared for each Financial Year;         “Business Day” means any day on which banks in the United States of America, Singapore and  India are open for general banking operations;          “CFC” has the meaning given in Section 7.2(a);         “Chair” means the Director appointed as Chair of the Board;         “Change of Control Sale” has the meaning given in Section 10.5.          “Companies Act”  means the  Companies Act (Chapter 50) of Singapore, or any other statutory  modification or re-enactment thereof;         “Company” has the meaning given in the Preamble.         “Competitor” means:  (a)  any  of  (i)  Jasper  Infotech  Pvt  Ltd  (and  its  Affiliates),  or  such  other  companies as may operate the business of Snapdeal from time to time after the date hereof, (ii) PayTM  (Payments), (iii) PayTM (eCommerce), (iv) Alibaba, (v) Amazon.com Inc. or any of its subsidiaries or  Affiliates (collectively, “Amazon”), or such companies as may operate the business of Amazon after the  date hereof; or (vi) any other e-commerce or payments company with significant operations in India and  in which Alibaba or Amazon has an equity or significant commercial interest; and (b) any other Person  who, in the reasonable good faith determination of the Board, carries on any business that is substantially  similar to the Fit Business or any other business carried on by the Fit Group, with such determination not  to  be  made  more  frequently  than  one  (1) time  per  Financial  Year  and  such  list  of  Competitors  not  to  include more than five (5) specified Persons in the aggregate at any time; provided, however, that, for the  avoidance of doubt, neither Wal-Mart nor Tencent shall be deemed to be a Competitor so long as it (or its  Permitted Transferee) remains a Shareholder;         “Confidential Information” has the meaning given in Section 15.1(b);         “Constitution” means the constitution of the Company, as may be amended from time to time;         “Contract” means any written, oral or other agreement, contract, license, sublicense, subcontract,  settlement  agreement,  deed,  lease,  indenture,  understanding,  arrangement,  instrument,  note,  loan,  purchase order, warranty, insurance policy, benefit plan or legally binding commitment or undertaking of  any nature;         “Control” (including, with its correlative meanings, the terms “controlling”, “controlled by” and  “under common control with”) means:                                          3                                                                                       

 

            (a)   a holding of a direct or indirect interest in the majority of the equity, voting, beneficial or              financial interests of the relevant Entity;         (b)   a holding of the direct or indirect right to appoint or remove a majority of the board of              directors or members of an equivalent management body of the relevant Entity;         (c)   the possession, directly or indirectly, of the power to direct or cause the direction of the              management and policies of the relevant Entity; or         (d)   being a shareholder or member of the relevant Entity and controlling jointly, pursuant to              a  Contract  with  other  shareholders  or  members  or  otherwise,  a  majority  of  the  voting              rights in the Entity;         “Co-Sale Notice” has the meaning given in Section 10.4(a);         “Deed  of  Accession”  means  a  deed  of  accession  in  substantially  the  form  attached  hereto  as  Exhibit B, or, subject to Section 4.2, such other form as approved by the Board;         “Deemed Sale Event” means:         (a)   the  acquisition  of  greater  than  fifty  percent  (50%)  of  the  Company’s  issued  and              outstanding voting securities by means of any transaction or series of related transactions              (including  any  share  purchase, business  combination,  reorganization,  merger,              consolidation,  amalgamation  or  scheme  of  arrangement,  but  excluding  any  such              transaction or series of related transactions where holders of the Company’s issued and              outstanding voting securities immediately prior to the consummation of such transaction              or  series  of  related  transactions  hold,  directly  or  indirectly,  immediately  following  the              consummation  of  such  transaction  or  series  of  related  transactions,  greater  than  fifty              percent  (50%)   of  the  issued  and  outstanding  voting  securities  of  the  surviving              corporation or resulting entity); or         (b)   an Asset Sale;         “Designated Appraiser” has the meaning given in Schedule 2;         “Directors” means the directors of the Company from time to time (and “Director” means any of  them);         “Drag-Along Notice” has the meaning given in Section 11.2;         “Drag-Along Percentage” has the meaning given in Section 11.2;         “Drag-Along Purchaser” has the meaning given in Section 11.1;         “Drag-Along Sale” has the meaning given in Section 11.1;         “Drag-Right” has the meaning given in Section 11.1;         “Dragged Shareholder” has the meaning given in Section 11.2;         “email” has the meaning given in Section 1.2(k);                                          4                                                                                       

 

            “Entity” means any corporation (including any non-profit corporation or other body corporate),  general partnership, limited partnership, limited liability partnership, joint venture, estate, trust, business  trust, company (including any limited liability company or joint stock company), firm or other enterprise,  association, organization or entity;         “Equity Securities” means: (a) any Shares or other equity securities of any Fit Group Company;  or (b) any security, right, option, warrant, appreciation right or instrument (including debt instrument) that  is exercisable for, convertible into, exchangeable for, or entitles the holder to acquire or receive, with or  without consideration, any Shares or other equity securities (including any option to purchase or rights to  subscribe for such a convertible or exchangeable security) of any Fit Group Company;          “Equivalent Shares” has the meaning given in Section 10.4(a);         “Excess Offered Securities” has the meaning given in Section 10.2;         “Excess Proposed Securities” has the meaning given in Section 8.3;         “Excluded Securities” has the meaning given in Section 8.4;         “Exempted Transfer” has the meaning given in Section 10.1.         “Existing Shareholders Agreement” means the Amended and Restated Shareholders Agreement  dated September 20, 2017 among the Company and all of the then existing shareholders of the Company.         “Fairness Opinion” has the meaning given in Schedule 2;          “Financial Year” means  a period in respect of which an audited profit and loss account of the  Company has been or is to be prepared for the purpose of laying before the Company at its annual general  meeting, whether that period is a year or not, or such other date as the Board may decide;         “Fit Business” means the business of: (a) wholesale cash and carry trading of Goods, Services  and Content; (b) being a provider of technology and any and all kinds of services for online sellers of  Goods, Services and Content; (c) providing logistics and related services to sellers of Goods, Services and  Content; (d) creating an online market place where sellers of Goods, Services and Content may market  their offerings to customers; (e) developing and maintaining websites that are organized for online sale of  Goods, Services and Content and licensing the related domain names or unique instances thereof to online  sellers of goods and services; and (f) facilitating payments through internet or mobile phones, whether  through credit card and/or debit card and/or any other payment method. For the purpose of this definition:  (i)  “Goods”  means  any  and  all  kinds  of  goods  and  products  including  tangible  goods;  (ii)  “Services”  means  any and  all kinds  of services; and (iii) “Content”  means any and  all kinds  of content including  music,  e-books  and  movies. Further, all references to the  Fit Business  shall include the  assets  of such  business. The Fit Business shall be carried on through subsidiaries in or outside Singapore;         “Fit Group” means the Company and each of its subsidiaries from time to time;         “Fit Group Company” means any member of the Fit Group;         “Fit Representative” means, as to any Fit Group Company, any director, officer, employee, agent  or  other  representative  acting  for  or  on  behalf  of  such  Fit  Group  Company  and  whose  conduct  could  subject  such  Fit  Group  Company  to  liability  under  Applicable  ABAC  Laws,  Applicable  Money  Laundering Laws, or Sanctions;                                         5                                                                                       

 

            “FMV”  means  the  fair  market  value  per  Ordinary  Share,  as  determined  in  accordance  with  Schedule 2;         “Founder” means Binny Bansal;         “Founder Director” has the meaning given in Section 3.2(a);         “Fully  Diluted  Basis”  means  determined  assuming  all  Equity Securities  of  the  Company  (including the stock options and other equity awards of the Company issued and reserved for issuance  under  any  equity  compensation  plan  or  scheme,  by  whatever  name  called,  and  all  warrants  of  the  Company) existing at the time of determination have been exercised or converted into Ordinary Shares;         “Funding  Transaction”  means  the  issuance  and  sale  solely  to Wal-Mart (and  existing  Shareholders  exercising rights  pursuant to ARTICLE VIII) by the  Company  of newly-issued  Ordinary  Shares at no less than FMV and without any rights or preferences other than those conferred on Ordinary  Shares in order to fund the capital requirements of the Fit Group contemplated in the Budget and with  respect to which preemptive rights are available pursuant to ARTICLE VIII;         “Government Official” means: (a) an officer or employee of any national, regional, local or other  component  of  a  Governmental  Authority;  (b)  a  director,  officer  or  employee  of  any  entity  in  which  a  Governmental Authority or component of a Governmental Authority possesses a majority or controlling  interest; (c) a candidate for public office; (d) a political party and political party official; (e) an officer or  employee of a public international organization; and (f) an individual who is acting in an official capacity  for  any  Governmental  Authority,  component  of  a  Governmental  Authority,  political  party  or  public  international  organization,  even  if  such  individual  is  acting  in  that  capacity  temporarily  and  without  compensation;         “Governmental  Authority”  means  any:  (a)  multinational  or  supranational  body  exercising  legislative,  judicial  or  regulatory  powers;  (b)  nation,  state,  commonwealth,  province,  territory,  county,  municipality,  district  or  other  jurisdiction  of  any  nature;  (c)  federal,  state,  local,  municipal,  foreign  or  other government; or (d) governmental or quasi-governmental, statutory or quasi-statutory or regulatory  authority of any nature (including any division, department, corporation, authority, agency, commission,  instrumentality, official, organization, unit, body or entity, any court or other tribunal, taxing authority,  stock exchange, public international organization, or other body entitled to exercise executive power or  power of any nature);         “Indemnification Agreement”  means  an  agreement in substantially the  form attached  hereto as  Exhibit C to be executed in each case amongst the Company on the one hand, and each Director and their  respective Alternate Directors (if any), on the other hand. The form of the Indemnification Agreement  may be amended by the Company from time to time but such amendments to form shall not affect any  Indemnification Agreements already executed;         “Independent Director” means an individual appointed as a Director by Wal-Mart who is not an  employee of, or otherwise affiliated with, Wal-Mart;         “Initial Offering” has the meaning given in the Registration Rights Agreement;         “Key Minority Nominee Director” has the meaning given in Section 3.2(c);                                          6                                                                                       

 

            “Key Minority Shareholders” means Tiger and Tencent, and each a “Key Minority Shareholder”;  provided, however,  that  any  such  Shareholder  shall  cease  to  be  a  Key  Minority  Shareholder  when  it  ceases to hold the relevant Minimum Ownership Threshold;           “Law” means any federal, state, local, municipal, foreign, supranational or other law (including  common  law),  statute,  constitution,  treaty,  convention,  principle  of  common  law,  directive,  resolution,  ordinance, code, edict, writ, decree, rule, regulation, judgment, ruling, injunction or requirement issued,  enacted, adopted, promulgated, implemented or otherwise put into effect by or under the authority of any  Governmental Authority;         “Lien”  means  a  claim,  mortgage,  charge,  pledge,  lien,  option, restriction, right  of first  refusal,  right of pre-emption, third party right or interest, other encumbrance or security interest of any kind or  other type of preferential arrangement having similar effect;         “Minimum Ownership Threshold” means, with respect to a Minority Shareholder, ownership by  such  Shareholder  and/or  its  Permitted  Transferee(s)  of:  (a)  with  respect  to  each  Key  Minority  Shareholder,  together  with  its  Permitted  Transferee(s),  at  least  three  percent  (3%)  of  the  Outstanding  Shares (disregarding as Outstanding Shares any Shares issued to Wal-Mart or any of its Affiliates after  the date hereof that constitute Excluded Securities); and (b) with respect to Binny Bansal, at least three  million  five  hundred  and  thirty  two  thousand  nine  hundred  and  seventy  seven  (3,532,977)  Ordinary  Shares (disregarding as Outstanding Shares held by him or his Permitted Transferee(s), any and all Shares  acquired by him or any of his Permitted Transferees following the date of this Agreement);          “Minority  Collective  Veto Matters”  means  those  matters  set  forth  on Schedule  6 and  each  a  “Minority Collective Veto Matter”;           “Minority Shareholder” means, as of any given time: (a) each Person identified on Schedule 1  that is a Shareholder at such time, and (b) each Person to which Shares were issued by the Company or  otherwise Transferred following the date of this Agreement, that has executed a Deed of Accession and  that is a Shareholder at such time (provided that, for the avoidance of doubt, at no time shall Wal-Mart or  any  Affiliate  of  Wal-Mart  be  or  be  deemed  to  be  a  Minority  Shareholder  for  any  purpose  under  this  Agreement);         “Minority  Shareholder  Approval”  means  the  approval  of  holders  of  the  Requisite  Minority  Shares,  which  approval  may  be  granted  by  Notification  to  the  Company,  by  way  of  affirmative  Shareholder vote or by execution of written shareholder resolution;          “Non-Purchasing Shareholder” has the meaning given in Section 10.4(a);         “Non-Compete Duration” means, in relation to the Founder, the period commencing on the date  of this Agreement and ending on the date that is eighteen (18) months after the later of: (a) the date the  Founder  ceases  to  hold at least two percent  (2%)  of the  Outstanding  Shares;  and  (b) the  date  that the  Founder ceases to be an employee or a director of any Fit Group Company;         “Notices” has the meaning given in Section 16.6(a);          “Notify” or “Notification” means the providing of a notice in writing, including by facsimile or  electronic means in accordance with Section 16.6;         “Offered Securities” has the meaning given in Section 10.1;                                         7                                                                                       

 

            “Offeree Shareholder” has the meaning given in Section 10.1;         “Ordinary Shares” means ordinary shares in the capital of the Company;         “Outstanding Shares” means, as of the date of determination, the Shares that are then issued and  paid up;          “Participating Offeree Shareholders” has the meaning given in Section 10.2;         “Participating Shareholders” has the meaning given in Section 8.3;         “Party” means a party to this Agreement (including any Person that becomes a Party by way of  execution of a Deed of Accession);         “Payment-Related Agreement” has the meaning given in Section 7.9.         “Permitted Transfer” means: (a) a Transfer of Shares to a Permitted Transferee; (b) the Transfer  by the Founder of such aggregate number of Shares constituting not more than fifteen percent (15%) of  the number of Outstanding Shares held by the Founder as of immediately after the consummation of the  Transaction  (as  appropriately  adjusted  for  share-splits,  share  dividends,  reverse  share-splits  and  other  recapitalizations  or  reorganizations); provided, however,  that  no  more  than  two  percent  (2%)  of  the  Outstanding Shares held by the Founder as of immediately after the consummation of the Transaction (as  appropriately  adjusted  for  share-splits,   share   dividends,   reverse   share-splits   and   other   recapitalizations  or  reorganizations)  may  be  so  Transferred  under  this  clause  “(b)”  in  any  twelve  (12)  month period; and (c) any Transfer by the Founder to Wal-Mart in accordance with the terms of the Put  Right Agreement entered into between the Founder and Wal-Mart in connection with the Transaction;         “Permitted Transferee” means:         (a) with  respect  to  a  Shareholder  that  is  an  Entity,  any  Entity  that  is  an Affiliate  of  such           Shareholder, provided that such transferee is not a Special Purpose Entity; and           (b) with respect to the Founder, his spouse or children (all of the foregoing collectively referred           to  as  “family  members”),  or  any  trustee  of  any  family  trust created  for  estate  planning           purposes and solely for the benefit of the Founder or any of his family members;          “Person”  means  any natural  person,  firm,  Entity, unincorporated organization,  Governmental  Authority, works council or employee representative body or other entity or organization of any nature  whatsoever;         “PFIC” has the meaning given in Section 7.2(b);         “PFIC Investors” has the meaning given in Section 7.2(b);         “Prohibited Transferee” means any: (a) Competitor; (b) Affiliate of a Competitor; and (c) Entity  in which any Competitor or any Affiliate of a Competitor: (i) holds an ownership interest exceeding ten  percent  (10%)  of  the  outstanding  equity  economic  ownership  or  voting  power of  such  Entity  or  other  contractual rights that (A) have substantially the same effect as the aforesaid or (B) provide for greater  than an effective ten percent (10%) voting or economic interest; or (ii) has rights to elect any member(s)  of the board of directors (or similar body) of such Entity;                                           8                                                                                       

 

            “Proposed Securities” has the meaning given in Section 8.2;         “Qualified Private Financing” means any bona fide private equity or equity-linked capital raising  activity of the Company, so long as: (a) any such activity is conducted in accordance with ARTICLE VIII  (it being understood that the  application of ARTICLE VIII may be  waived  in respect of the  securities  issued in such capital raising activity in accordance with Section 8.4(j) and still qualify as a Qualified  Private Financing); (b) the securities issued in any such capital raising activity are Ordinary Shares and do  not (i) result in any material and adverse amendment to the named rights of the Minority Shareholders  expressly set forth in this Agreement (or the Constitution); (ii) result in any material voting rights that are  senior  to  those  provided  to  the  Minority  Shareholders  hereunder  (it  being  understood  that any  new  investor may be joined to this Agreement to the extent provided for in Section 16.7(b)); or (iii) have any  liquidation  preference  or  other  senior  economic  rights  to  other  holders  of  Ordinary  Shares  (it  being  understood that investor being named a ROFR Shareholder shall not constitute a voting right or economic  right that is senior to any rights granted to Minority Shareholders or other holders of Ordinary Shares);  and  (c)  such  securities  are  sold  and  issued  at  a  price  per  share  that  is  no  less  than  the  Wal-Mart  Acquisition Original Cost.         “Qualified Public Offering” means an Initial Offering resulting in: (a) at least ten percent (10%)  of the Outstanding Shares of the Company as of immediately following the consummation of such Initial  Offering being listed on the stock exchange identified in clause “(c)” below that Wal-Mart elects in its  sole discretion; (b) cash proceeds to the Company from the offering of at least twenty-five percent (25%)  of  the  gross  cash  proceeds  of  such  offering;  and  (c)  the  Ordinary  Shares  being  traded  on  one  of  the  following  stock  exchanges  that  Wal-Mart  elects  in  its  sole  discretion: the  New  York  Stock  Exchange,  NASDAQ, the London Stock Exchange or the Hong Kong Stock Exchange;         “Registrable Securities” has the meaning given in the Registration Rights Agreement.         “Registration Rights Agreement” has the meaning given in Recital D;         “Related Party” means:         (a)   in relation to a natural person, the spouse or children of such person or any trust in which              such person or the spouse or children of such person is a trustee or beneficiary;         (b)   in  relation  to  an  Entity,  a  subsidiary  or  parent  company  of  such  Entity  or  another              subsidiary of a parent company of such Entity; or         (c)   in  relation  to  a  Person  not  covered  by  (a)  or  (b)  of  this  definition,  any  other  Person              directly  or  indirectly  Controlling,  Controlled  by  or  under  common  Control  with,  such              Person;         “Related Party Transaction Committee” has the meaning given in Section 3.4;         “Requisite  Minority  Shares”  means:  (a)  with  respect  to  any  Minority  Collective  Veto  Matter  described  in  paragraph  1  of  Schedule  6,  sixty  percent  (60%)  of  the  aggregate  number  of Outstanding  Shares held by the Minority Shareholders as of the date of such approval; and (b) with respect to any  other Minority Collective Veto Matter or any other applicable shareholder approval, forty percent (40%)  of the aggregate number of Outstanding Shares held by the Minority Shareholders as of the date of such  approval;                                          9                                                                                       

 

            “Respective Proportion” means, in relation to each Shareholder, as of the date of determination,  the proportion which the number of outstanding Shares (determined on a Fully Diluted Basis) held by  such Shareholder as of such date bears to the total number of outstanding Shares (determined on a Fully  Diluted Basis) held by all Shareholders as of such date;         “ROFR  Shareholders”  means  Wal-Mart  (and  its  Permitted  Transferees),  each  Key  Minority  Shareholder and each other Shareholder (other than the Founder or any of his Permitted Transferees) that,  together with its Affiliates, holds (as of the time of the exercise of the rights set forth in Section 10.1  through Section 10.3) at least five percent (5%) of the Outstanding Shares; provided, however, that from  and after such time as Wal-Mart and its Affiliates collectively hold at least eighty-five percent (85%) of  the Outstanding Shares, the only ROFR Shareholders shall be Wal-Mart and its Permitted Transferee(s).             “Rules” has the meaning given in Section 14.1(a);         “Sales Notice” has the meaning given in Section 10.1;         “Sanctioned  Person”  means  any  individual  who  or  Entity  that  is:  (a)  specifically listed  in  any  Sanctions List; or (b) Controlled or owned by any individual who or Entity that is included in clause “(a)”  immediately above;         “Sanctions” means (a) sanctions imposed pursuant to a UN Security Council resolution; (b) US  sanctions administered by the US Department of the Treasury, US Department of State or US Department  of  Commerce;  (c)  EU  restrictive  measures  implemented  pursuant  to  an  EU  Council  or  Commission  Regulation or Decision adopted pursuant to a Common Position in furtherance of the European Union’s  Common Foreign and Security Policy; (d) UK sanctions adopted by or pursuant to the UK Terrorist Asset  Freezing, etc., Act 2010 or other UK legislation or statutory instruments enacted pursuant to the United  Nations Act 1946 or the European Communities Act 1972; and (e) any other trade, economic or financial  sanctions laws, regulations, embargoes or similar restrictive measures administered, enacted or enforced  by any Governmental Authority as being applicable to any Fit Group Company;         “Sanctions List” means the: (a) “Specially Designated Nationals and Blocked Persons List” and  “Sectoral Sanctions Identifications List” maintained by the Office of Foreign Assets Control of the US  Department  of  the  Treasury;  (b)  “Consolidated  List  of  Persons,  Groups  and  Entities  Subject  to  EU  Financial  Sanctions”  as  well  as  the  list  of  persons  set  out  under  Annexes  III,  V  and  VI  to  Council  Regulation  833/2014,  as  amended,  maintained  by  the  European  Union;  (c)  “Consolidated  List  of  Financial Sanctions Targets” maintained by Her Majesty’s Treasury; and (d) any similar list maintained  by the European Union, United Kingdom, United Nations or United States of America, each as amended,  supplemented or substituted from time to time;         “Secretary” means the company secretary of the Company;         “Securities Act” means the United States Securities Act of 1933, as amended, and the rules and  regulations promulgated thereunder;         “Selling Shareholder” has the meaning given in Section 10.1;         “Share Issuance Agreement” has the meaning given in Recital 0;         “Share Purchase Agreement” has the meaning given in Recital 0;         “Shareholder” means the holder of at least one (1) Share;                                         10                                                                                       

 

            “Shareholder Group” means a Shareholder and its Affiliates;          “Shareholder Representative” has the meaning given in Section 12.2(a)(v);         “Shares” means  Ordinary Shares  and any other classes or series  of shares in the  capital of the  Company issued from time to time, together with all rights, differential rights, obligations, title, interest  and claim in such shares and shall be deemed to include all bonus shares issued in respect of such Shares  and shares issued pursuant to a stock split in respect of such Shares;         “Special Purpose Entity” means an entity that holds or would hold only Shares or has or would  have a class or series of security holders with beneficial interests primarily in Shares (including for such  purpose  an  entity  that  holds  cash  and/or  cash  equivalents  intended  to  purchase  Shares); provided,  however, that no entity directly holding Shares as of the date of this Agreement shall be deemed a Special  Purpose Entity;         “Specified Investor” has the meaning given in Section 7.2(a);         “Specified Period” means any period during which at least one of the Wal-Mart Directors is not  an employee of, or otherwise affiliated with, Wal-Mart or any of Wal-Mart’s Affiliates;         “Specified Rights” has the meaning given in Section 9.3(c);         “subsidiary” of any Person means any Entity of which such Person owns (directly or indirectly)  securities  or  other  ownership  interests  having  voting  power  in  circumstances  other  than  a  breach  or  default  to  elect  or  remove  at  least  a  majority  of  the  board  of  directors,  managers  or  trustees  or  other  Persons performing similar functions, or in which such Person holds or Controls a majority of the equity,  voting, beneficial or financial interests, or in relation to which such Person has the right (whether under  Contract  or  the  Entity’s  organizational  documents)  or  power,  directly  or  indirectly,  to  direct  the  management  of  the  Entity; provided, however,  that  no  Fit  Group  Company  shall  be  considered  a  subsidiary or Affiliate of a Shareholder for the purposes of this Agreement;         “Tencent” means Aceville Pte. Ltd., a company incorporated under the laws of Singapore. Details  about Tencent are set forth in Schedule 1;         “Tiger” means Tiger Global International II Holdings, a company incorporated under the laws of  Mauritius. Details about Tiger are set forth in Schedule 1;         “Transaction” has the meaning given in Recital 0;         “Transaction  Documents”  means  this  Agreement,  the  Share  Issuance  Agreement,  the  Share  Purchase  Agreement,  the  Registration  Rights  Agreement,  and  any  other  Contracts  and/or  documents  ancillary (or entered into pursuant) to any such Contracts;         “Transaction Expenses” has the meaning given in Section 12.2(b);         “Transfer” means to, directly or indirectly, transfer, sell, assign, encumber in any manner, place  in trust (voting or otherwise), bequeath, distribute, hypothecate, convey, pledge, exchange, gift or transfer  by operation of law or in any other way subject to any Lien or dispose of, whether or not voluntarily, and  “Transferred”  or  “Transferring”  shall  be  construed  accordingly. For avoidance  of doubt, it is clarified  that: (a) a change in Control of any Party by Transfer of the Controlling interest in such Party by any  Person shall also constitute a ‘Transfer’, unless the ultimate holding Person after such transfer remains                                         11                                                                                       

 

      the same; and (b) any transfer, sale or other contract wherein a legal or beneficial interest in, or  economic rights in respect of, any Equity Securities are conferred shall be deemed to be a Transfer.         “Transfer Documents” has the meaning given in Section 12.1(c);         “Unsold Offered Securities” has the meaning given in Section 10.3         “US IRS Code” has the meaning given in Section 7.2(a);         “Valuation Committee” has the meaning given in Section 3.4;         “Valuation Firm” has the meaning given in Schedule 2;         “Valuation Notice” has the meaning given in Schedule 2;         “Wal-Mart” has the meaning given in the Preamble.          “Wal-Mart Acquisition Original Cost” means the Price Per Secondary Share (as defined in the  Share Purchase Agreement), as appropriately adjusted for share-splits,  share  dividends,  reverse  share- splits  and  other  recapitalizations or reorganizations;         “Wal-Mart  Collective Veto  Matters”  means  those  matters  set  forth  on Schedule  4 and  each  a  “Wal-Mart Collective Veto Matter”;         “Wal-Mart Director” has the meaning given in Section 3.2(b);         “Wal-Mart  Independent  Veto  Matters”  means  those  matters  set  out  at Schedule  5 and  each  a  “Wal-Mart Independent Veto Matter”; and          “Wal-Mart  Veto  Matter  Approval”  means  the  approval  of  Wal-Mart,  which  approval  may  be  granted  by  Notification  to  the  Company,  by  way  of  affirmative  Shareholder  vote  or  by  execution  of  written shareholder resolution.           Section 1.2 Rules  of  Interpretation.   In  this  Agreement,  unless  the  context  otherwise   requires, the following rules of interpretation shall apply:               (a)   references  to  Recitals,  Articles,  Sections,  Exhibits and  Schedules  shall  be  to  Recitals, Articles, Sections, Exhibits and Schedules of this Agreement unless otherwise specified;               (b)   all  Exhibits  and  Schedules  annexed  hereto  and  defined  herein  are  hereby  incorporated in and made a part of this Agreement as if set forth in full herein;               (c)   “may” shall be construed as permissive;               (d)   a “month” or a “quarter” means a calendar month or quarter (as the case may be);               (e)   a “notice” means written notice, regardless of whether such term is accompanied  by the words “written,” “in writing” or words of similar import;               (f)   “shall” shall be construed as imperative;               (g)   the use of the word “or” shall not be exclusive;                                         12                                                                                       

 

                  (h)   references to “US$” “$” or “dollars” shall be deemed to refer to lawful currency  of the United States of America;               (i)   where a word or phrase is defined, its other grammatical forms have a  corresponding meaning;                (j)   a  reference  to liability  under,  pursuant  to  or  arising  out of  (or  any  analogous  expression) any Contract includes a reference to contingent liability under, pursuant to or arising out of  (or any analogous expression) that Contract;               (k)   “consent” or “approval” of any Party shall always mean prior written  consent, which may be in the form of electronic mail (“email”);               (l)   writing includes email, typewriting, printing, lithography, photography and other  modes of representing or reproducing words in a legible and non-transitory form;               (m)   article  and  section  headings  herein  have been  inserted  for  convenience  of  reference only, are not a part of this Agreement and shall not be used in construing this Agreement;               (n)   the  terms  “include”  and  “including”  and  words  of  similar  import  are  to  be  construed as non-exclusive (so that, by way of example, “including” shall be deemed to mean “including  without limitation”);               (o)   (i)  words  using  a  singular  or  plural  number  also  include  the  plural  or  singular  number,  respectively;  (ii)  the  terms  “hereof,”  “herein,”  “hereby,”  and  “hereunder”  and  any  derivative  thereof  or  similar  words  refer  to  this  entire  Agreement;  (iii)  the  masculine  gender  shall  include  the  feminine and neuter genders; (iv) any reference to a Law shall be deemed to also refer to any amendment  or  supplement  thereto,  any modification or re-enactment thereof, any legislative provision substituted  therefor and all regulations and statutory instruments issued or promulgated thereunder; (v) any reference  to  a  Contract  or  document  shall  be  deemed  to  also  refer  to that Contract or document as  amended,  novated, supplemented, varied or replaced from time to time; and (vi) whenever this Agreement refers to  a number of days, such number shall refer to calendar days unless such reference specifies Business Days;               (p)   unless otherwise specified, time periods within or following which any payment  is to  be made or act is to be done shall be calculated by excluding the day  on which the  period  commences and including the day  on which the period  ends and by extending the period to the next  Business Day if the last day of such period is not a Business Day, and whenever any payment is to be  made or action to be taken under this Agreement is required to be made or taken on a day other than a  Business Day, such payment shall be made or action taken on the next Business Day;               (q)   no  provision  of  this  Agreement  shall  be  construed  in  favor  of  or  against  any  Person by reason of the extent to which any such Person, its Related Parties or their respective employees  or counsel participated in the drafting thereof; and               (r)   the ejusdem generis principle of construction shall not apply to this Agreement.   Accordingly, general words shall not be given a restrictive meaning by reason of their being preceded or  followed by words indicating a particular class of acts, matters or things or by examples falling within the  general words.  Any phrase introduced by the terms “other”, “including”, “include” and “in particular” or  any  similar  expression  shall  be  construed  as  illustrative  and  shall  not  limit  the  sense  of  the  words  preceding those terms.                                         13                                                                                       

 

                                        ARTICLE II                                  THE COMPANY          Section 2.1 Organization of the Company; Capitalization.               (a)   The Company was incorporated under the laws of Singapore on October 4, 2011.                 (b)   Contemporaneously with the consummation of the Transaction and the execution  of this Agreement, in accordance with the Transaction Documents, the Company undertook a capital re- organization pursuant to which all preference shares in the capital of the Company were converted into  Ordinary Shares, such that the issued share capital of the Company consists of Ordinary Shares only.  The  share capital of the Company may be increased from time to time in accordance with the procedures set  forth in the Company’s Constitution and the provisions of this Agreement.               (c)   As  of  the  execution  of  this  Agreement,  the  Shares  will  be  held  by the  Shareholders in the amounts listed opposite such Shareholders’ names in Schedule 3.  Schedule 3 shall be  updated from time to time as necessary to reflect any issuance or transfer of any share capital (including  Ordinary Shares and other classes of shares) of the Company whether or not now authorized.           Section 2.2 Registered Office.  The registered office of the Company shall be located at 80  Raffles  Place,  #32-01  UOB  Plaza,  Singapore  048624.   The  registered  office  of  the  Company  may  be  changed from time to time to such other place as may be designated by the Board.                                     ARTICLE III                               BOARD OF DIRECTORS          Section 3.1 Composition and Size  of the  Board.  The  Board shall consist of no more  than  nine  (9)  members.   The  Board  shall  initially  be  set  at  eight  (8)  members  (with  the  Board  having  the  authority to expand the number of Directors to nine (9) as set forth in Section 3.2(h)).  Subject to the  provisions  of  this  Agreement,  the  Board  shall  initially  consist  of  the  Founder  Director,  the  Wal-Mart  Directors and the Key Minority Nominee Directors (to the extent the Key Minority Shareholders exercise  their respective appointment rights pursuant to Section 3.2(c)).           Section 3.2 Rights and Manner of Appointment.                 (a)   Founder Director.  The Founder shall be entitled to be a Director for so long as  the  Founder  satisfies  the  relevant  Minimum  Ownership  Threshold  (the  “Founder  Director”).  If  the  Founder loses his right to be a Director under this Section 3.2, then the number of Directors that Wal- Mart has the right to appoint shall increase by one (1) and, unless Wal-Mart and its Affiliates collectively  own at least eighty-five percent (85%) of the Outstanding Shares, such additional Wal-Mart Director must  be an Independent Director appointed by Wal-Mart with the approval of a majority of the Directors.                 (b)   Wal-Mart Directors.  Subject to Section 3.2(d), Wal-Mart shall initially have the  right to appoint five (5) members of the Board, with such number being subject to increase as set forth in  this Section 3.2 (each, a “Wal-Mart Director” and together the “Wal-Mart Directors”).  Each Wal-Mart  Director shall hold office at the pleasure of Wal-Mart and may be substituted at any time by Wal-Mart by  notice to the Company.                (c)   Key Minority Nominee Directors.  Each Key Minority Shareholder shall have the  right to appoint one (1) member of the Board (each a “Key Minority Nominee Director”), in each case for  so long as such Party satisfies the relevant Minimum Ownership Threshold.  Each Key Minority Nominee                                         14                                                                                       

 

      Director shall hold office at the pleasure of his or her respective Key Minority Shareholder and may be  substituted  at  any  time  by  such  Key  Minority  Shareholder  by  notice  to  the  Company.   If  any  Key  Minority Shareholder loses its right to appoint a Director under this Section 3.2(c), then the number of  Directors that Wal-Mart has the right to appoint shall increase by one (1) and, unless Wal-Mart and its  Affiliates collectively own at least eighty-five percent (85%) of the Outstanding Shares, such additional  Wal-Mart  Director  must  be  an  Independent  Director  appointed  by  Wal-Mart  with  the  approval  of  a  majority of the Directors.                (d)   Independent Directors.  For the  period of two (2) years  commencing as of the  date  hereof,  two  of  the  Wal-Mart  Directors  shall  be  Independent  Directors,  and  Wal-Mart  shall  only  exercise  its  right to appoint,  remove  or  replace such  Independent  Directors  after  consultation  with the  Founder so  long as the  Founder satisfies the  relevant Minimum Ownership Threshold. Lee  Fixel shall  initially be one of such Independent Directors.               (e)   Residency of Directors.  If no other Director is a resident of Singapore, one of the  Independent  Directors  (or,  if  there  are  no  Independent  Directors  at  any  given  time,  one  of  the  Key  Minority Nominee Directors) shall be a  Singapore  resident. No Independent Director or Key Minority  Director may be a resident of the United States or India if, immediately after such Director’s appointment,  either: (i) a majority of the Directors would be residents of India; or (ii) a majority of the Directors would  be residents of the United States.               (f)   Manner of Appointment.  Any right to appoint a Director under this Section 3.2  includes  a  power  to  remove  or  replace  such  Director  appointed  pursuant  to  this Section  3.2.  All  appointments, removals and replacements under this Section 3.2 shall be effected by Notification to the  Company and shall take effect immediately upon such Notification being received by the Company. Upon  a Shareholder ceasing to have a right to appoint any Director or Director, such Shareholder shall cause its  Director or Directors to resign from the Board.  If any Shareholder loses its right to appoint a Director,  then it shall also lose any rights to remove or replace such Director under this Section 3.2.                  (g)   Chair. The  Chair  shall  be  appointed  by  Wal-Mart.  The  Chair  shall  not  have  a  second or casting vote. In the absence of the Chair at any meeting, the Board may elect one of the Wal- Mart Directors who is not an Independent Director to chair the meeting in question.                (h)   Additional Director.  The Board may increase the number of Directors from eight  (8) to nine (9) at any time.  Such additional Director shall, unless Wal-Mart and its Affiliates collectively  own at least eighty-five percent (85%) of the Outstanding Shares, be an Independent Director, appointed  by Wal-Mart with the approval of a majority of the Directors.          Section 3.3 Powers  of  the  Board.   Except  as  otherwise  specified  in  this  Agreement  or  the  Constitution  or  as  may  be  required  by  applicable  Law  (including  with  respect  to  rights  and  powers  expressly reserved to the Shareholders or delegated to the officers of the Company), the Board shall have  full power, discretion and authority to make decisions affecting the Company and to take such actions as  it deems necessary or appropriate to accomplish the purposes of the Company as set forth herein.           Section 3.4 Committees of the Board.  The Board may set up such committees of the Board  as it deems fit from time to time.  Notwithstanding the foregoing, the Board shall at all times maintain a  compensation  committee  and  an  audit  committee  and  the  chair  of  each  such  committee  shall  be  designated for appointment, removal or replacement by Wal-Mart. Wal-Mart shall also have the right to  appoint a majority of the members of the audit committee and the compensation committee.  The Board  shall also set up a committee comprised solely of Wal-Mart Directors that are not Independent Directors  and delegate to such committee the authority to appoint the Secretary (the “Appointment Committee”). If                                         15                                                                                       

 

      necessary, the Board shall also set up a committee comprised of all of the Directors (other than any Wal- Mart  Directors  that  are  not  Independent  Directors)  for  the  purposes  of Schedule  2 (the  “Valuation  Committee”).  The Board shall set up a committee comprised of the Founder Director and each of the Key  Minority  Nominee  Directors,  and  delegate  to  such  committee  the  authority  to  approve  material  agreements, arrangements or transactions between any Fit Group Company, on the one hand, and Wal- Mart  or  any  Affiliate  of  Wal-Mart,  on  the  other  hand  (the  “Related  Party  Transaction  Committee”),  including the resolution of any indemnification claim brought by Wal-Mart against the Company under  the  terms  of  any  Transaction  Document; provided,  however,  that  the Related  Party  Transaction  Committee shall not be delegated, and shall not otherwise have, the authority to approve any transactions,  agreements or arrangements described in clauses “(a)” through “(g)” of paragraph 1 on Schedule 6, other  than  as  expressly  provided  in  clause  “(a)”  thereof.   If  a  Shareholder  appointing  any  Director  on  the  Related  Party  Transaction  Committee  falls  below  the  relevant  Minority  Ownership  Threshold,  the  Director  appointed  in  replacement  of  such  Director  shall  replace  such  Director on  the  Related  Party  Transaction Committee.          Section 3.5 Alternate Directors.  A Director shall be entitled to appoint an alternate Director  who shall be deemed to be a Director at any Board meeting or meeting of any committee of the Board if  the appointing Director is not present (each, an “Alternate Director”); provided, however, that neither the  Founder Director nor any Independent Director shall be entitled to appoint an Alternate Director unless  otherwise agreed to by the Board.          Section 3.6 Non-Executive  Status.  The  Company agrees  and  acknowledges  that  the  Wal- Mart  Directors,  the  Key  Minority  Nominee  Directors  and  their  respective  Alternate  Directors  shall  be  non-executive  Directors  of  the  Company,  unless  otherwise  mutually  agreed  by  Wal-Mart  and  such  Director.  The Company shall enter into an Indemnification Agreement with each of the Directors and  their respective Alternate Directors (if any).          Section 3.7 Regard to Appointer's Interest.  A Director appointed by a Shareholder may take  into  account  the  interests  of  that  Director’s  appointer  and  may  act  on  the  wishes  of  that  appointer  in  performing any of his or her duties or exercising any power, right or discretion as a director in relation to  the Company, except in any particular case where no honest and reasonable Director could have formed  the view that, in so doing, the Director was acting in good faith in the best interests of the Company as a  whole and in accordance with all legal requirements imposed on the Director.          Section 3.8 Board Meetings and Voting.                 (a)   Meetings of the Board.  The Board shall meet at least four (4) times per year,  with a majority of the Board meetings being held in Singapore (with at least a majority of the Directors  participating  in  such  meetings  being  physically  present  at  such  meetings).  Travel,  hotel  and  related  expenses incurred by the Directors for attending meetings of the Board and committees shall be borne by  the  Company.  Directors  may  participate  in  Board  meetings  by  means  of  telephone  conference,  video  conference or similar communications  equipment where  all Directors  participating in that meeting can  hear and communicate with each other.               (b)   Notice of Meetings.  Unless otherwise agreed in writing by a Wal-Mart Director  who is not an Independent Director and, so long as a Key Minority Shareholder is entitled to appoint a  Director in accordance with Section 3.2(c), a Key Minority Nominee Director, the Company shall provide  prior notice of at least seven (7) Business Days of the meetings of the Board or committees thereof to all  the Directors and Observers.  Unless otherwise agreed in writing by a Wal-Mart Director who is not an  Independent  Director  and, so long  as  a  Key  Minority  Shareholder  is  entitled  to  appoint  a  Director  in  accordance with Section 3.2(c), a Key Minority Nominee Director, each notice of a meeting of the Board                                         16                                                                                       

 

      or  committee  shall  contain, inter  alia, an  agenda  specifying  in  reasonable  detail  the  matters  to  be  discussed at the relevant meeting together with appropriate documentation with respect to agenda items  calling  for  Board  action, to  adequately  inform  Directors  regarding  the  matters  to  be  placed before  the  Board.  With the written consent of a Wal-Mart Director who is not an Independent Director and, so long  as a Key Minority Shareholder is entitled to appoint a Director in accordance with Section 3.2(c), a Key  Minority Nominee Director, the Board or committee may also consider any matter not circulated in the  agenda.               (c)   Convening Meetings of the Board.  Any Director may, and the Secretary shall, on  the requisition of a Director, summon a meeting of the Board or any committee, in accordance with the  notice and other requirements set out in this Section 3.8. Any Director wishing to place a matter on the  agenda for any meeting of the Board may do so by communicating with the Chair sufficiently in advance  of  the  meeting  of  the Board,  so  as  to  permit  timely  dissemination  of  information  with  respect  to  the  agenda items to all Directors.               (d)   Quorum.  The quorum for all meetings of the Board shall be one (1) Wal-Mart  Director who is not an Independent Director, one (1) Key Minority Nominee Director (so long as a Key  Minority Shareholder is entitled to appoint a Director in accordance with Section 3.2(c)), and the Founder  Director (so long as the Founder is employed by a Fit Group Company in good standing and is otherwise  entitled to serve as a Director in accordance with Section 3.2(a)).  If the quorum is not present within half  an hour of the scheduled time of the meeting, the meeting shall stand adjourned to the same day, location  and time on the following week; provided, however, that if such day is not a Business Day, the meeting  shall be held on the next Business Day at the same location and time.  Notwithstanding the foregoing,  with the written consent of a Wal-Mart Director who is not an Independent Director and, so long as a Key  Minority Shareholder is entitled to appoint a Director in accordance with Section 3.2(c), a Key Minority  Nominee Director, such meeting may be postponed to a date, location and time that is later than the date  prescribed by the previous sentence. The Directors present at such adjourned meeting shall constitute the  quorum for such re-convened meeting.                (e)   Circular Resolutions.  A resolution signed by all of the Directors then in office  shall be deemed to be a decision of the Board without the need for a meeting.  A resolution signed by all  of the  Directors  who are members  of a  committee shall be  deemed  to be  a  decision of the  committee  without  the  need  for  a  meeting.   Any  such  resolution  may  consist  of  several  documents  in  original,  facsimile or electronic form, each signed by one or more Directors.               (f)   Passing  of  Resolutions  and  Voting.  Except  as  otherwise  provided  herein,  decisions of the Board shall be taken by simple majority vote of the participating Directors. Each Director  participating in the meeting has one (1) vote.                                    ARTICLE IV                            SHAREHOLDERS’ MEETINGS          Section 4.1 Shareholders’ Meetings.                 (a)   Requirement to Give Notice.  An annual general meeting of the Shareholders of  the Company shall be held as per the requirements of the Companies Act. Subject to the foregoing, the  Board may convene an extraordinary general meeting of the Shareholders of the Company whenever it  deems appropriate. Subject to the provisions of the Companies Act relating to matters requiring special  notice at least fourteen (14) days prior written notice of every other general meeting of Shareholders shall  be given to all Shareholders whose names appear on the register of members of the Company.  A meeting                                         17                                                                                       

 

      of the Shareholders may be called by giving shorter notice with the written consent of the Shareholders  subject to applicable Law.               (b)   Contents of Notice.  The notice to Shareholders shall specify the place, date and  time  of  the  meeting.  Every  notice  convening  a  meeting  of  the  Shareholders  shall  set  forth  in  full  and  sufficient  detail  the  text  of  the  resolutions  sought  to  be  passed  thereat,  the  business  to  be  transacted  thereat, and no business shall be transacted at such meeting unless the same has been stated in the notice  convening the meeting.               (c)   Chair for General Meeting.  The Chair shall be the Chair for all general meetings.  The Chair of a general meeting of the Company shall not have any second or casting vote. In the absence  of the Chair at any meeting, the Shareholders shall elect one of the Shareholders to chair the meeting in  question.               (d)   Quorum for General Meetings.  To constitute a quorum for a general meeting of  the  Company,  Shareholders  holding  at  least  seventy-five percent (75%)  of  the  Outstanding  Shares,  including, so  long  as  any  Key  Minority  Shareholder  continues  to satisfy  the  relevant  Minimum  Ownership Threshold, at least one Key Minority Shareholder, shall be present in person or through an  authorized representative of such Shareholder(s) at the commencement and throughout the duration of the  meeting.   If  the  quorum  is  not  present  within  half  an  hour  of  the  scheduled  time  of  the  meeting,  the  meeting  shall  stand  adjourned  to  the  same  day,  location  and  time  on  the  following  week; provided,  however, that if such  day is  not a  Business Day, the meeting shall be  held on the  next Business  Day.   Notwithstanding the foregoing, if agreed to by Wal-Mart and, so long as any Key Minority Shareholder  continues  to satisfy the relevant Minimum Ownership Threshold, one  Key Minority Shareholder, such  meeting  may  be  postponed  to  a  date,  location  and  time  that  is  later  than  the  date  prescribed  by  the  previous sentence. The Shareholders present at such adjourned meeting shall constitute the quorum for  such re-convened meeting (it being understood, however, that the foregoing shall not diminish the rights  of Wal-Mart and the other Shareholders under Section 4.2 and Section 4.3, respectively).               (e)   Passing  of  Resolutions  and  Voting.   Except  as  otherwise  provided  herein,  all  resolutions of the Shareholders shall, subject to any additional requirements imposed by the Companies  Act, be adopted by Shareholders holding more than fifty percent (50%) of the Outstanding Shares.               (f)   Shareholders' Written  Resolutions  by Circular.  Subject to the  Companies Act,  Section 4.2 and Section 4.3, a resolution in writing that has been signed by Shareholders holding: (i) in  the case of an ordinary resolution, more than fifty percent (50%) of Outstanding Shares; or (ii) in the case  of a special resolution, more than seventy-five percent (75%) of the Outstanding Shares, shall be valid  and effective as if it had been passed at a general meeting of the Company duly convened and held.  Any  such resolution may  consist of several documents  in the  like  form each  signed  by one  or  more  of the  Shareholders.  The  expressions  “in  writing”  and  “signed”  include  approval  by  telex,  cable,  wireless,  facsimile  or  email  transmission.  In  each  case,  Notice  of  the  proposed  resolution  shall  be  provided  in  writing to all Shareholders before such resolution is signed by such Shareholders.          Section 4.2 Wal-Mart Veto Matters.  The Shareholders agree that, notwithstanding anything  to the contrary contained in this Agreement (a) during any Specified Period, any decision relating to any  Wal-Mart  Independent  Veto  Matter,  and  (b)  any  decision  relating  to  any  Wal-Mart  Collective  Veto  Matter, shall in the case of each of clauses “(a)” and “(b)” above, be required to be passed by Wal-Mart  Veto Matter Approval.  Accordingly, each of the Shareholders and the Company hereby undertake and  agree to not vote in favor of or adopt any resolutions for, take any action to give effect to, or enter into  any commitment that relates to (i) during any Specified Period, any Wal-Mart Independent Veto Matter,                                         18                                                                                       

 

      or (ii) any Wal-Mart Collective Veto Matter, unless, in the case of each of clauses “(i)” and “(ii)” above,  Wal-Mart Veto Matter Approval has been obtained.          Section 4.3 Minority Veto Matters.  The Shareholders agree that, notwithstanding anything to   the contrary contained in this Agreement, until such time as Wal-Mart and its Affiliates collectively hold   at  least  eighty-five  percent  (85%)  of  the  Outstanding  Shares, any  decision  relating  to  any  Minority   Collective Veto Matter shall be passed by Minority Shareholder Approval.  Accordingly, until such time   as Wal-Mart and its Affiliates collectively hold at least eighty-five percent (85%) of the Outstanding   Shares, each of the Shareholders and the Company hereby undertake and agree to not vote in favor of or   adopt any resolutions for, take any action to give effect to, or enter into any commitment that relates to   any Minority Collective Veto Matter unless Minority Shareholder Approval has been obtained.          Section 4.4 Voting Obligation. Without limiting the rights set forth in ARTICLE VIII, in any   general meeting of the Company, or any written resolution described in Section 4.1(f), each Minority   Shareholder hereby agrees to exercise all voting and other rights and powers available to such Minority   Shareholder, and to take all such actions as are necessary under the Constitution, the Companies Act or   otherwise, including to vote in favor of any resolution (whether an  ordinary resolution or special   resolution) to give effect to any resolution required to consummate a Qualified Private Financing or a   Funding Transaction.                                      ARTICLE V                                  MANAGEMENT          Section 5.1 Appointment of Executives.               (a)   The  principal  executives  of  the  Company  shall  be  the chief  executive  officer,  chief financial officer and Secretary. The chief executive officer of the Company shall be appointed by  Wal-Mart (after consultation with the Board). The chief financial officer of the Company, and each of the  Company’s  heads  in the  areas  of  legal,  ethics  and  compliance,  shall  be  appointed  solely  by  Wal-Mart  (after consultation with the Founder, so long as the Founder satisfies the relevant Minimum Ownership  Threshold).  The  appointment  of  the  Secretary  shall  be  delegated  by  the  Board  to  the  Appointment  Committee of the Board. The Company and other Fit Group Companies may have such other executives  as the chief executive officer or the Board may deem necessary, which executives shall, subject to Section  4.2, be appointed by the Board. For the avoidance of doubt, the executives referred to above are intended  to be executives of the Fit Group and not executives of each Fit Group Company. Any appointment right  under this Section 5.1(a) includes the power to remove or replace such appointee.                (b)   Each of the executives of any Fit Group Company shall have such powers and  duties  as  may  from  time  to  time  be  conferred  upon  or  assigned  to  such  executive  by  or  pursuant  to  authority delegated by the Board.  One individual may hold the offices and perform the duties of any two  or more of such offices. For the avoidance of doubt, the Board shall delegate to the principal executives of  the  Company  and  any  other  Fit  Group  Company  the  authority  to  oversee,  manage  and  run  the  Fit  Business on a day-to-day basis.               (c)   Each executive of the Company shall serve until the earliest of his or her death,  resignation or removal by the Board.  Any executive of the Company may resign at any time by giving  written notice to the Company.  The resignation of any executive of the Company shall take effect upon  receipt of written notice thereof or at such later time as shall be specified in such notice.  Unless otherwise  specified therein, the acceptance of such resignation shall not be necessary to make it effective.                                          19                                                                                       

 

                                       ARTICLE VI                               INFORMATION RIGHTS          Section 6.1 Reporting.  Subject to Section 6.2, so long as any Shareholder holds any Shares  in the Company, the Company shall deliver to each such Shareholder:                 (a)   copies  of the  Constitution,  promptly  upon request,  but in  any  event  within  ten        (10) days of such request;               (b)   as soon as practicable, but in any event within ninety (90) days after the end of        each Financial Year, a balance sheet of the Fit Group prepared in accordance with GAAP, as of        the last day of such Financial Year, and a profit and loss statement and statement of cash flows        for such Financial Year prepared in accordance with GAAP, all in reasonable detail, audited and        certified by the auditors of the Fit Group;                (c)   as soon as practicable, but in any event within thirty (30) days after the end of        each quarter, an unaudited income statement and schedule of sources and application of funds for        the Fit Group for such quarter and an unaudited balance sheet as at the end of such quarter in        relation to the Fit Group; and               (d)   solely in the case of Wal-Mart, all information requested by Wal-Mart relating to        the  Budget,  the  Fit  Business,  the  operations,  condition  (financial  or  otherwise),  results  of        operations,  earnings,  profits,  taxes,  assets  or  liabilities  of  the  Fit  Group  or  any Fit  Group        Company, all information required by Wal-Mart for any financial reporting obligations, and any        and all other information relating to the Fit Group or any Fit Group Company.   For the avoidance of doubt, any shareholder having the right to appoint a Director shall have access to the  information provided  to the  Directors  in their  capacity  as  Directors  of  the  Company,  unless  otherwise  reasonably determined by the Board.           Section 6.2 Limitations  due  to  Competitor  Shareholdings.  Notwithstanding  anything  else  contained  in Section  6.1,  any  Minority  Shareholder  that  holds,  or  whose  Affiliate  holds,  directly  or  indirectly, any shares in a Competitor shall only be entitled to receive the items set out in Section 6.1(a)  and Section 6.1(b).          Section 6.3 Confidentiality.  For the avoidance of doubt, all information and materials made  available to, or received by, any Minority Shareholder pursuant to this ARTICLE VI shall be subject to  the provisions of ARTICLE XV.                                     ARTICLE VII                  REPRESENTATIONS, WARRANTIES AND COVENANTS          Section 7.1 Representations and Warranties of Shareholders.  Each Shareholder represents to  the other Shareholders and the Company, as of the date hereof, that:               (a)   Organization and Standing.  If such Shareholder is an Entity, it is an Entity of the  type  set  forth  below  its  signature  on  the  signature  pages  hereof  and  is  duly  organized,  formed  or  incorporated, as  the  case  may  be,  and  validly  existing  and  in  good  standing,  under  the  laws  of  its  jurisdiction of organization, formation or incorporation, as applicable, set forth below its signature on the  signature  pages hereof.  It has full right, corporate  or other entity power and  authority to execute  this  Agreement and to perform fully its obligations hereunder.                                          20                                                                                       

 

                  (b)   Authorization.  Such Shareholder’s execution, delivery and performance of this  Agreement has been duly and validly authorized and approved by all necessary corporate or other action.   Such  Shareholder  has  duly  executed  and  delivered  this  Agreement,  and  this  Agreement  constitute  the  legal,  valid  and  binding  obligation  of  such  Shareholder,  enforceable  against  such  Shareholder  in  accordance  with  its  terms,  except  as  such  enforceability  may  be  limited  by  applicable  bankruptcy,  insolvency, reorganization, moratorium and similar Laws of general application relating to or affecting  the rights and remedies of creditors and by general principles of equity.               (c)   Conflicts.  The execution and delivery of this Agreement and the consummation  of the transactions contemplated hereby and thereby do not and shall not conflict with or result in the  breach  of  any  term  or  provision  of,  or  constitute  a  default  under,  (i)  any  Contract  to  which  such  Shareholder is a party or by which such Shareholder is bound (other than those Contracts the consequence  of  a  violation  of  which  would  not  reasonably  be  expected  to  have  an  adverse  effect  on  the  business,  operations,  affairs,  condition,  properties  or  prospects  of  the  Company or  the  performance  of  such  Shareholder’s obligations under this Agreement), or (ii) any Law, rule or regulation or order, judgment or  decree  of  any  court  or  Governmental  Authority  applicable  to  such  Shareholder,  or the  organizational  documents of such Shareholder, if applicable.               (d)   Consents.  No consent, approval or authorization of, or registration, declaration  or filing with, any Governmental Authority or any other Person is required to be obtained or made by  such Shareholder in connection with the execution, delivery or performance of this Agreement.               (e)   Litigation.  There  is  no  action,  cause  of  action,  claim,  cease  and  desist  letter,  demand, suit, arbitration proceeding, citation, summons, subpoena or investigation of any nature, civil,  criminal, regulatory or otherwise, in law or in equity, pending or, to the knowledge of such Shareholder,  threatened  against  or  affecting  such  Shareholder,  nor  are  there  any  settlement  agreements  or  similar  written  agreements  with  any  Governmental  Authority  or  outstanding  orders,  judgments,  stipulations,  decrees, injunctions, determinations or awards issued by any Governmental Authority against or affecting  such  Shareholder, in each  case that  would  adversely affect  the  business,  operations,  affairs,  condition,  properties or prospects of the Company or the performance of such Shareholder’s obligations under this  Agreement.               (f)   Brokers.   No  broker,  investment  banker,  financial  advisor  or  other  Person  is  entitled to any broker’s, finder’s, financial advisor’s or similar fee or commission in connection with the  transactions  contemplated  by  this  Agreement  based  upon  arrangements  made  by  or  on  behalf  of  such  Shareholder, except those for which such Shareholder will be solely responsible.          Section 7.2 Controlled Foreign Company.                (a)   No  later  than  sixty  (60)  days  following  the  end  of  each  taxable  year  of  the  Company, the Company shall provide the capitalization table of each Fit Group Company as of the end of  the last day of such taxable year to each of Wal-Mart, each Key Minority Shareholder and each other  Shareholder that is a U.S. person and that owns not less than ten percent (10%) of the Outstanding Shares  (each, a “Specified Investor” and collectively, the “Specified Investors”). In addition, the Company shall  provide  each  Specified  Investor  with  access  to  such  other  Fit  Group  Company  information  as  may  be  necessary for such Specified Investor to determine the status of any Fit Group Company as a “controlled  foreign corporation” (“CFC”) as defined in the U.S. Internal Revenue Code of 1986, as amended (or any  successor thereto) (the “US IRS Code”) and to determine whether each Specified Investor or its Affiliates  is required to report its pro rata portion of the Company’s income under Section 951 and/or Section 951A  of the US IRS Code on its United States federal income tax return, or to allow each Specified Investor or  its Affiliates to otherwise comply with applicable United States federal income tax Laws. The Company                                         21                                                                                       

 

      and  the  Shareholders  shall not, without the  written consent of Wal-Mart, issue or transfer stock in the  Company to any investor if prior to such issuance or transfer, the Company was not a CFC and following  such  issuance  or  transfer  the  Company,  in  the  determination  of  counsel  or  accountants  for  Wal-Mart,  would be a CFC.               (b)   The Company shall use commercially reasonable efforts to avoid having any Fit  Group Company become a “passive foreign investment company” within the meaning of Section 1297 of  the US IRS Code (“PFIC”). In connection with a “Qualified Electing Fund” election made by any of the  Specified Investors (the “PFIC Investors”) pursuant to Section 1295 of the US IRS Code or a “Protective  Statement” filed by any of the PFIC Investors pursuant to U.S. Treasury Regulation Section 1.1295-3, as  amended (or any successor thereto), the Company shall provide annual financial information to each of  the  PFIC  Investors  in  the  form  attached  as Exhibit  D (which  shall  be  signed  by  an  officer  of  the  Company) as soon as reasonably practicable following the end of each taxable year of any of the PFIC  Investors (but in no event later than ninety (90) days following the end of each such taxable year), and  shall provide each of the PFIC Investors with such other Company information as may be required for  purposes  of  filing  U.S.  federal  income  tax  returns  in  connection  with  such  “Qualified  Electing  Fund”  election or “Protective  Statement”,  provided  that the reasonable  expenses incurred  by the  Company in  connection with the foregoing information obligations shall be borne by each of the PFIC Investors pro  rata based on the relative ownership of such Parties Each of the PFIC Investors, or their respective direct  or  indirect  beneficial  owners,  as  applicable,  who  has  made  a  “Qualified  Electing  Fund”  election  must  include in its gross income for a particular taxable year its pro rata share of the Company’s earnings and  profits pursuant to Section 1293 of the US IRS Code, as amended (or any successor thereto). Subject to  applicable Laws, the Company agrees to make a dividend distribution to such of the PFIC Investors (no  later than sixty (60) days following the end of such PFIC Investor’s taxable year or, if later, sixty (60)  days after the Company is informed by such Party, that such Party or its Affiliate has been required to  recognize such an income inclusion) in an amount equal to fifty percent (50%) of the amount that would  be so included by such PFIC Investor, if such PFIC Investor were a “United States person” as such term  is  defined  in  Section  7701(a)(30)  of  the  US  IRS  Code and  had  such  PFIC  Investor  made  a  valid  and  timely  “Qualified  Electing  Fund”  election  that  was  applicable  to  such  taxable  year.  In  the  event  any  dividend is paid pursuant to this Section 7.2(b), a like dividend shall, subject to applicable Laws, be paid  to all other Shareholders.               (c)   The  Shareholders  shall  be  Notified  of  any  amendment  to Section  7.2(a) or  Section 7.2(b).               (d)   In  the  event  that  any  subsidiary  of  the  Company  is  determined  by  counsel  or  accountants for Wal-Mart to be subject to the reporting requirements of either or both of Sections 6038  and 6038B of the US IRS Code, the Company agrees, upon a request from such Party, to provide such  information to such Party as may be necessary to fulfill such Party’s obligations thereunder.          Section 7.3 Tax Matters.                (a)   Each Shareholder acknowledges and agrees that Wal-Mart, as a member of a US- based multinational, is subject to various detailed reporting requirements (as amended from time to time)  and to comply with these reporting requirements Wal-Mart will require, and the Company shall provide  (and  will  procure  that  each  Fit  Group  Company  provides):  (i)  detailed  information  regarding  the  computation of earnings and profits of each Fit Group Company; (ii) receipts evidencing foreign taxes  paid by each Fit Group Company; and (iii) any other information Wal-Mart requires with respect to each  Fit  Group  Company  in  order  to  comply  with  its  reporting  obligations  to  a  Governmental  Authority  responsible for the imposition or administration of taxes.                                         22                                                                                       

 

                  (b)   Each  Shareholder  agrees  that  any  action taken  by  the  Company  in  connection  with  audits  of  the  Company  under  applicable  tax  Law  will  be  binding  upon  such  Shareholder.   Each  Shareholder  further  agrees  that  (i)  except  when  the  specific  consent  of  the  Company  is  granted,  such  Shareholder will not treat any Company item inconsistently on such Shareholder’s individual income tax  return  with  the  treatment  of  the  item  on  the  Company’s  tax  return  and  (ii)  such  Shareholder  will  not  independently  act  with respect  to tax  audits  or tax  litigation affecting  the  Company,  unless  previously  authorized to do so in writing by the Company, which authorization may be withheld in the discretion of  the Company.               (c)   Wal-Mart may cause the Company to make or refrain from making all elections  required or permitted to be made by the Company under applicable tax Law provided that: (i) there is no  negative impact (other than in an immaterial respect) to the Company; and (ii) causing the Company to  make  or refrain from  making such elections  would not give  rise to or otherwise  increase the  damages  payable by the Company pursuant to an indemnification claim under the Share Purchase Agreement or  Share Issuance Agreement by an Indemnitee (as such term is defined in each such agreement).               (d)   For  administrative  ease, Wal-Mart may cause the Company  to liquidate and/or  dissolve entities that are no longer required provided that: (i) there is no negative impact (other than in an  immaterial respect) to the Company; and (ii) causing the Company to make or refrain from making such  elections would not give rise to or otherwise increase the damages payable by the Company pursuant to  an  indemnification  claim  under  the  Share  Purchase  Agreement  or  Share  Issuance  Agreement  by  an  Indemnitee (as such term is defined in each such agreement).               (e)   The Company is hereby authorized and empowered to prepare or have prepared,  to  execute  or  have  executed  and  to  file  or to  have  filed,  on  behalf  and  in the  name  of  any  Fit  Group  Company,  any  returns,  applications,  elections,  agreements,  and  other  instruments  or  documents, under  applicable tax Law, which it deems desirable or advisable.  Pursuant to the foregoing, the Company shall  cause  any  tax  returns  of  the  Company  to  be  prepared  by  Wal-Mart.   The  Company  shall  timely  and  properly  prepare  U.S.  federal,  state  and  local  tax returns,  and  any  other  required  tax  returns,  of  the  Company.               (f)   The  Company  is  hereby  authorized  and  empowered  to  handle  tax  audits  or  assessments relating to any taxable period; provided, however, that Wal-Mart shall have control over any  tax audits or assessments that relate to any taxable period ending after the date of this Agreement.               (g)   Each  Shareholder  further  agrees  that  such  Shareholder  will,  upon  reasonable  request  of  the  Company,  provide  any  information  or  documentation,  execute  any  forms  or  documents  (including a power of attorney (except with respect to Tencent) or settlement or closing agreement) and  take any further reasonable action requested by the Company in connection with any tax matter (including  in connection with a tax audit or proceeding) affecting the Company, including as reasonably necessary to  effectuate any of the foregoing provisions of this Section 7.3.          Section 7.4 Internal Policies and Procedures.  Except as otherwise agreed between Wal-Mart   and any Key Minority Shareholder or Key Minority Nominee Director, the Company shall ensure that   the  Fit  Group,  the  Board  and  any  committees  of  the  Board,  and  the  boards  of  directors  (or  similar   governance bodies) of the Fit Group Companies (other than the Company) and any committees of such   boards  or  bodies,  shall,  promptly  following  the  date  of  this  Agreement,  adopt  and  comply  with  the   following procedures, policies, guidelines, resolutions and charters, in each case as amended by Wal-  Mart  from  time  to  time,  with such  amendments  as  Notified  to  the  Company  by  Wal-Mart:  (a)  Wal-  Mart’s  Disclosure  Controls  and  Procedures;  (b)  Wal-Mart’s  Investment  Communications  Policy;  (c)   Wal-Mart’s Conflicts Minerals Policy; (d) Wal-Mart’s Global Investigation Protocols and Procedures;                                         23                                                                                       

 

       (e) Wal-Mart’s Statement of Ethics; (f) Wal-Mart’s Board Corporate Governance Guidelines; (g) Wal-  Mart’s Board Committee Charters; (h) Wal-Mart’s Board Limitation of Authority Resolutions; (i) Wal-  Mart’s  key  Management  Committee  Charters;  (j)  the  Wal-Mart  International  Corporate  Governance   document; (k) Wal-Mart’s financial reporting policies  and  procedures; and (l) such other procedures,   policies, guidelines, resolutions, charters and similar documents or instruments as apply from time to   time  to other subsidiaries of Wal-Mart. If any Fit Group Company wishes  to  access any intellectual   property of, or receive any services from, Wal-Mart or any Affiliate of Wal-Mart (including having any   employee  of  Wal-Mart  or  any  Affiliate  of  Wal-Mart  provide  services  to  any  Fit  Group  Company)   following  the  date  of  this  Agreement,  then  such  Fit  Group  Company  shall  enter  into  intercompany   agreements with Wal-Mart or the applicable Affiliate of Wal-Mart for the provision of such intellectual   property or services on terms and conditions that are consistent with the transfer pricing, employment,   ex-patriot and other policies and procedures of Wal-Mart and its Affiliates.           Section 7.5 Applicable ABAC Laws, Applicable Money Laundering Laws and Sanctions   Without limiting the Company’s obligations set forth in Section 7.4, the Company covenants to each of  the Shareholders, as of the date hereof, that:               (a)   Applicable  ABAC  Laws  /  Applicable  Money  Laundering  Laws  or  Sanctions.   None of the Fit Group Companies or any of their respective Fit Representatives shall pay, offer, promise  or  authorize  the  payment  of,  directly  or  indirectly,  any  monies  or  transfer  anything  of  value  to  any  Government Official or employee of a private sector entity with which such Fit Group Company is doing  or seeking to do business in a manner that violates any Applicable ABAC Laws or engage in any conduct  that would violate any Applicable Money Laundering Laws or Sanctions.               (b)   Sanctioned Persons.  None of the Fit Group Companies or any of their respective  Fit  Representatives,  when  acting  for  or  on  behalf  of  such  Fit  Group  Company,  shall  use,  directly  or  indirectly, the proceeds of the Transaction or lend, contribute or otherwise make available such proceeds  to any Sanctioned Person or individual or entity otherwise subject to Sanctions.               (c)   ABAC Policies and Procedures.  If it has not already done so, the Company shall  adopt and implement within ninety (90) days of the date of this Agreement, a policy and procedures  designed to prevent the Fit Group Companies as well as their respective Fit Representatives from  engaging in any activity, practice or conduct that would violate any Applicable ABAC Laws.  Such  policy and procedures shall be consistent with: (i) the corresponding policies and procedures of Wal- Mart; and (ii) the guidance that has been provided by Governmental Authorities in Singapore, Mauritius,  India, the United Kingdom and the United  States  of  America  having  authority  to  investigate  or   prosecute  violations of Applicable ABAC Laws.               (d)   Money  Laundering  Policies  and  Procedures.   If it has not already done so, the  Company shall adopt and implement within ninety (90) days of the date of this Agreement, a policy and  procedures designed to prevent the Fit Group Companies, as well as their respective Fit  Representatives, from engaging in any activity, practice or conduct that would violate any  Applicable Money Laundering Laws or Sanctions.   Such policy and procedures shall be consistent with:  (i) the corresponding policies and procedures of Wal-Mart; and (ii) the guidance that has been provided  by Governmental Authorities in Singapore, Mauritius, India, the United Kingdom and the United States  of America having authority to investigate or prosecute violations of Applicable Money Laundering Laws  and Sanctions.               (e)   Books and Records.  The Fit Group Companies shall keep and maintain books  and  records  reflecting  accurately  and  in  reasonable  detail  all  transactions  involving  the  Fit  Group                                         24                                                                                       

 

      Companies  as well as  controls  designed  to  ensure  that  payments  by  the  Fit  Group  Companies  will  be  made only in accordance with management instructions.               (f)   Written Confirmation.  The Company shall confirm in writing, upon request from  a  Shareholder, no more than  once each year from the  date hereof, that the Fit Group Companies  have  complied with the undertakings set forth in this Section 7.5.               (g)   Duty to Notify.  If the Company suspects or comes to believe that either it or any  other Fit Group Company has violated any Applicable ABAC Laws, Applicable Money Laundering Laws  or Sanctions, it shall Notify each of the Shareholders promptly in writing of its suspicion or belief.               (h)   Shareholders' Right to Audit.  The Fit Group Companies and their respective Fit  Representatives shall cooperate in good faith with Wal-Mart if Wal-Mart decides to seek to determine  whether  the  Fit  Group  Companies  or  their  respective  Fit  Representatives  have  complied  with  the  undertakings  set  forth  in  this Section  7.5.   The  cooperation  required  by  the  foregoing  shall  include  permitting Wal-Mart or their authorized representative(s) to audit the books and records of the Fit Group  Companies as well as review and make copies of correspondence and other documents, however sent or  received, possessed by the Fit Group Companies pertaining to compliance with the undertakings set forth  in this Section 7.5.          Section 7.6 Market Stand-Off.                (a)   Each Shareholder hereby agrees that it will not, without the prior written consent  of the managing underwriter, during the period commencing on the date of the final prospectus relating to  an Initial Offering and ending on the date specified by the Company and the managing underwriter (such  period  not  to  exceed  one  hundred  and eighty  (180) days  following  the  effectiveness  thereof):  (i)  lend,  offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract  to sell, grant any option, right or warrant to purchase,  or otherwise Transfer or dispose of, directly or  indirectly,  any  Shares  or  other  Equity  Securities  held  immediately  prior  to  the  effectiveness  of  the  registration  statement  for  such  Initial  Offering,  or  (ii)  enter  into  any  swap  or  other  arrangement  that  Transfers to another, in whole or in part, any of the economic consequences of ownership of Shares or  other Equity Securities, whether any such transaction described in clause (i) or (ii) above is to be settled  by delivery of Ordinary Shares or other securities, in cash or otherwise. The foregoing provisions of this  Section 7.6 shall apply only to an Initial Offering, shall not apply to the sale of any Equity Securities to an  underwriter pursuant to an underwriting agreement, and shall only be applicable to the Shareholders if all  officers, members of the Board and holders of greater than five percent (5%) of the Outstanding Shares on  a Fully Diluted Basis enter into similar agreements. The underwriters in connection with such offering are  intended  third  party  beneficiaries  of  this Section  7.6 and  shall  have  the  right,  power  and  authority  to  enforce  the  provisions  hereof as  though  they  were  a  party  hereto.   Each  Shareholder further agrees  to  execute such agreements as may be reasonably requested by the underwriters in such offering that are  consistent with this Section 7.6 or that are necessary to give further effect thereto.               (b)   In  order  to  enforce  the  foregoing  covenant,  the  Company  may  impose  stop- Transfer instructions with respect to the Equity Securities of each Shareholder (and the Equity Securities  of every other Person subject to the foregoing restriction) until the end of such period.               (c)   Each Shareholder agrees that a legend reading substantially as follows shall be  placed  on  all  certificates  representing  all  Equity  Securities  of  each  Shareholder  (and  the  Shares  or  securities of every other Person subject to the restriction contained in this Section 7.6):                                          25                                                                                       

 

            THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A LOCK-       UP  PERIOD  AFTER  THE  EFFECTIVE  DATE  OF  THE  ISSUER’S  REGISTRATION        STATEMENT  FILED  UNDER  THE  UNITED  STATES  SECURITIES  ACT  OF  1933,  AS        AMENDED, AS SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE        ORIGINAL HOLDER OF THESE SECURITIES, A COPY OF WHICH MAY BE OBTAINED        AT  THE  ISSUER’S  PRINCIPAL  OFFICE.  SUCH  LOCK-UP  PERIOD  IS  BINDING  ON        TRANSFEREES OF THESE SHARES.          Section 7.7 Non-Solicitation and Non-Competition               (a)   The Founder covenants with the Company and each Shareholder that, throughout  the Non-Compete Duration, he shall not (and he shall ensure that none of his Affiliates shall), directly or  indirectly:                     (i)   whether individually or in conjunction with any other person, engage in,              directly or indirectly, whether as an individual, through a partnership or as a shareholder,              joint  venture  partner,  collaborator,  consultant,  advisor,  principal  contractor  or  sub-             contractor,  director, trustee,  committee  member,  office  bearer  or  agent  or in  any  other              manner whatsoever, whether for profit or otherwise, any business that competes with the              whole or any part of the Fit Business or any other business being carried on or proposed              to be carried on by any Fit Group Company in India and such other jurisdictions where              any Fit Group Company carries on or proposes to carry on such business;                     (ii)  on his own account or for any Person, enterprise, firm or syndicate entice              away from the any Fit Group Company (A) any customer of any Fit Group Company, (B)              any  supplier  of  any  Fit  Group  Company  and/or  (C)  any  employee  of  any  Fit  Group              Company ; and/or                     (iii) personally or by or through his employees, representatives or agents or              by  circulars,  letters  or  advertisements  whether  on  his  own  account  or  for  any  Person,              enterprise, firm or syndicate interfere with any part of the Fit Business conducted by any              Fit Group Company;   provided, however, that it shall not, in and of itself, be a violation of this Section 7.7 for the Founder to  own,  solely  as  a  passive  investment,  shares  in  a  publicly  listed  company  where  the  number  of  such  company’s shares that are owned beneficially by him and his Affiliates collectively represent less than  two percent (2%) of the paid up capital of such company.               (b)   The Founder acknowledges that: (i) he is a Shareholder and key employee of the  Company  and  has  obtained  and  developed  extensive  and  valuable  knowledge,  trade  secrets  and  Confidential Information concerning the Fit Business of the Fit Group; (ii) in the course of operating the  Fit  Business,  he  has  also  developed  on  behalf  of  the  Fit  Group  significant  goodwill  that  is  now  a  significant  part  of  the  value  of  the  Fit  Group;  and  (iii)  accordingly,  the  non-competition  and  non- solicitation covenants of the Founder contained in this Agreement, and the restrictions contained in this  Section 7.7, are considered reasonable for the legitimate protection of the proprietary interests of the other  Shareholders or, as the case may be, the Fit Group.               (c)   For the avoidance of doubt, nothing in this Section 7.7 shall preclude any Party,  other than the Founder and his Affiliates from investing in, conducting business through or collaborating  with  any  business  or  entity  in  the  same  or  allied  field  as  the  Fit  Business  being  carried  on  by  the  Fit                                         26                                                                                       

 

      Group,  in  India  or  elsewhere; provided, however,  that  nothing  in  this Section  7.7(c) shall  in  any  way  eliminate or diminish any obligation of any Party under Section 7.7(a) or ARTICLE XV.                (d)   Each  of  the  restrictions  set  forth  in Section  7.7(a) is  an  entirely  separate  and  independent restriction on the Founder and the validity or enforceability of one restriction shall not be  affected by the validity or unenforceability of another.               (e)   The  Founder  considers  the  restrictions  in  this  clause  to  be  reasonable  and  necessary for the protection of the interests of the Fit Group.  If any such restriction shall be held to be  void but would be valid if deleted in part or reduced in application, such restriction shall apply with such  deletion or modification as may be necessary to make it valid and enforceable.          Section 7.8 Restrictions  on  Company  Issuances.  The Company shall not, without the   approval of the Board, issue any Equity Securities of the Company to, or engage in any sale of assets,   merger, Deemed Sale Event or other change of control transaction, in each case other than a Drag-Along   Sale, with any Prohibited Transferee.            Section 7.9 Payment-Related Agreements.   Prior to any Fit Group Company entering into or   materially amending: (a) any credit or debit card agreement or re-loadable card agreement involving any   card or similar instrument or device that bears the name, logo, trademark or trade name of any Fit Group   Company; or (b) any agreement (i) between any Fit Group Company  and  any  global credit, debit or   payment card association brand or (ii) involving Apple Pay, Google Pay, Android Pay or similar global   “Pay”  brand,  in  each  case,  relating  to  the  payment  for,  processing  of  or  financial  settlement  of  any   obligation arising from the purchase of goods or services by any Fit Group Company, excluding from   this  clause  “(b)”,  for  the  avoidance  of  doubt,  any  agreement  with  respect  to  customer  promotions   entered  into  in  the  ordinary  course  of  business  between  a  Fit  Group  Company  and  any  financial   institution in  India that issues  credit,  debit  or payment  cards  (each  agreement referred  to  in,  and  not   specifically excluded from, clause “(a)” of “(b)” above, a “Payment-Related Agreement”), the Company   shall notify Wal-Mart of such agreement or amendment and consult with, and consider in good faith all   comments provided by, Wal-Mart with respect thereto.          Section 7.10 Waiver and Release.  Each Minority Shareholder hereby waives and irrevocably   and  completely  releases:  (a)  any  and  all  rights  to  claim  that  any  element  of  the  Contemplated   Transactions (as defined in the Share Purchase Agreement) breaches, violates or does not conform in   any way whatsoever to the requirements or other provisions of any shareholders’ agreement (including   the Existing Shareholders Agreement) or the Constitution; (b) any and all rights of pre-emption, rights   of first refusal, purchase rights, rights of approval or other similar rights or restrictions that relate to any   element of the  Contemplated  Transactions  (including the Transfer or issuance of any Shares  to Wal-  Mart in connection with the Contemplated Transactions), whether arising under any Contract, any Law,   the Constitution or otherwise; (c) any and all conflicts of interest that any director or officer of any Fit   Group Company or any other current or former equity holder of any Fit Group Company may have as a   result of his,  her or its relationship with any Fit Group Company or his,  her or its interest in any of   element of the Contemplated Transactions; and (d) any and all claims or other rights with respect to,   arising out of or otherwise relating to, any of the foregoing.  For the avoidance of doubt, this Section   7.10 shall not operate as a waiver or release of any rights or claims under this Agreement or any other   rights  or  claims  of  the  Minority  Shareholders  under  the  Share  Purchase  Agreement  or  relating  to  a   breach by Wal-Mart of the terms of the Share Purchase Agreement.           Section 7.11 Change  in  Domicile  Consultation.  Without  limiting  the  rights  of  the  Minority   Shareholders  under  this  Agreement  with  respect  to  any  transaction  described  in  paragraph  11  of   Schedule 6 of this Agreement, the Company will provide written notice to each Shareholder no less than                                         27                                                                                       

 

       thirty (30) days prior to consummating any such transaction, and will, at the request of a Shareholder,   consult  with  such  Shareholder  regarding  the  potential  tax  consequences  of  such  transaction  to  such   Shareholder.                                                     ARTICLE VIII                               PREEMPTIVE RIGHTS          Section 8.1 Subsequent  Offerings.  Subject  to  applicable  securities  Laws  and Section  8.4,  each  Shareholder  shall  initially  have  a  right  to  purchase  up  to  its Respective  Proportion of all Equity  Securities that the Company may, from time to time, propose to sell and issue after the date hereof.  The  Company shall not issue any Equity Securities except for in accordance with this ARTICLE VIII.            Section 8.2 Exercise of Rights.  Subject to Section 8.4, if the Company proposes to issue any  Equity Securities (the “Proposed Securities”), it shall give each Shareholder written notice of its intention,  describing the Proposed Securities and the number of Proposed Securities to be issued, the price and the  terms and conditions upon which the Company proposes to issue the same. Each Shareholder shall have  ten  (10)  Business  Days  from  the  receipt  of  such  notice  to  agree  to  purchase  up  to  its Respective  Proportion of the Proposed Securities (rounded to the nearest whole Proposed Security) for the price and  upon the terms and conditions specified in the notice by giving written notice to the Company and stating  therein the quantity of Proposed Securities to be purchased.  Notwithstanding the foregoing, the Company  shall not be required to offer or sell such Proposed Securities to any Shareholder who would cause the  Company to be in violation of applicable securities Laws by virtue of such offer or sale.          Section 8.3 Failure to Fully Exercise Rights.  If not all of the Shareholders elect to purchase  their Respective Proportion of the Proposed Securities (or if any Shareholder elects to purchase less than  its full Respective Proportion of the Proposed Securities), then the Company shall promptly Notify the  Shareholders  who  elected  to  purchase  their  full  Respective  Proportion  of  the  Proposed  Securities  (the  “Participating  Shareholders”)  in  writing  and  shall  offer  to  the  Participating  Shareholders  the  right  to  acquire  any  unsubscribed  Proposed  Securities  (the  “Excess  Proposed  Securities”).   Each  Participating  Shareholder shall have ten (10) Business Days after receipt of such notice to Notify the Company of its  election to purchase all or a portion of the Excess Proposed Securities and stating the quantity of such  Excess  Proposed  Securities  to  be  purchased.   If  Participating  Shareholders  deliver  notices  electing  to  collectively purchase more than the number of Excess Proposed Securities, then such Excess Proposed  Securities  shall  be  allocated pro  rata among  such  Participating  Shareholders  on  the  basis  of  each  Participating Shareholder’s relative ownership of the aggregate number of Shares held by all Participating  Shareholders,  in  each  case  determined  on  a  Fully  Diluted  Basis  and  rounded  to  the  nearest  whole  Proposed Security.  The Company shall have sixty (60) Business Days (plus a sufficient number of days  to allow the expiration or termination of all applicable waiting periods under applicable antitrust Law or  the  receipt  of  all  regulatory  approvals  applicable  to  such  sale)  after  the  expiration  of  such  ten  (10)  Business  Day  period  to  sell  any  Excess  Proposed  Securities  in  respect  of  which  the  Participating  Shareholders’ rights to purchase such Excess Proposed Securities were not exercised, at a price not lower  than (and upon general terms and conditions not materially more favorable to the purchasers thereof than)  that specified in the Company’s notice to the Shareholders pursuant to Section 8.2.  If the Company has  not issued and sold such Excess Proposed Securities within the allotted time, then the Company shall not  thereafter  issue  or  sell  any  Excess  Proposed  Securities,  without  first  offering  such  Excess  Proposed  Securities to the Shareholders in the manner provided above.          Section 8.4 Excluded  Securities.  Subject  to Section  8.6,  the  rights  established  by  this  ARTICLE  VIII (and  the  obligations  of  the  Company  set  forth  in  this ARTICLE  VIII)  shall  have  no                                         28                                                                                       

 

      application to the issuance, sale, grant or award of any of the following Equity Securities of the Company  (“Excluded Securities”):               (a)   any  Equity  Securities  granted,  issued  or  awarded  to  employees  (including        officers) or directors of, or consultants, advisors or service providers to, any Fit Group Company        under  any  equity  incentive  plan  or  other  benefit  plan  or  agreement  in  each  case  as  bona  fide        compensatory arrangements approved by the Board (including Equity Securities issued pursuant        to the exercise of such Equity Securities);               (b)   any Equity Securities issued in a Qualified Public Offering;               (c)   any Shares issued pursuant to the Share Issuance Agreement or upon the exercise        of any rights or obligations set forth in the Share Issuance Agreement (including Shares issued in        satisfaction  of  any  indemnification  claim  brought  pursuant  to  the  terms  of  the  Share  Issuance        Agreement);               (d)   any Equity Securities issued in connection with any Drag-Along Sale;               (e)   any Ordinary Shares issued upon the exercise of any stock options outstanding as        of the date of this Agreement;               (f)   any  Equity  Securities  issued  as  consideration  in  connection  with  (i)  any        acquisition by any Fit Group Company  of any equity securities,  business  or assets  of, (ii) any        business combination, joint venture, license agreement or similar commercial transaction with, or        (iii) the receipt of services from, any other Person, in any transaction approved by the Board and        in accordance with Section 4.2 and Section 4.3,  as applicable;               (g)   any  Equity  Securities  issued  or  granted  as  an  inducement  to  a  lender  in        connection  with  any  bona  fide  debt  financing,  equipment  leasing  or  real  property  leasing        transactions  approved  by  the  Board  and  in  accordance  with Section  4.2 and Section  4.3,  as        applicable;                (h)   any Equity Securities issued in connection with any consolidation or sub-division        of Shares (share-splits and reverse share-splits), share dividend, reorganization or recapitalization        by the Company approved by the Board and in accordance with Section 4.2 and Section 4.3,  as        applicable;                (i)   Ordinary Shares having an aggregate purchase price of up to three billion dollars        ($3,000,000,000), purchased or subscribed for, in one or more transactions consummated (or for        which definitive documents are executed) within twelve (12) months following the date of this        Agreement,  provided  that  such  transactions  (i)  would  otherwise  constitute  Qualified  Private        Financings, (ii) are consummated  with  investors who are not Shareholders on the  date  of this        Agreement  (which, for the avoidance of doubt, shall not include any Affiliate of Wal-Mart or any        Minority  Shareholder)  and  (iii)  do not  result  in  any such investor  together  with  its  Affiliates,        purchasing more than two billion dollars ($2,000,000,000) of Ordinary Shares (in which case the        rights  of  Shareholders  under  this  Article  VIII  shall  apply  to  any  Ordinary  Shares  otherwise        proposed to be purchased by such investor in excess of such two billion dollar ($2,000,000,000)        threshold);               (j)   any Equity Securities with respect to the issuance of which the application of this        ARTICLE VIII has been waived in writing by Wal-Mart and holders of the Requisite Minority                                         29                                                                                       

 

            Shares (or, in the case of any Funding Transaction or other issuance of Equity Securities that is        not a Qualified Private Financing and in which Wal-Mart is participating, holders of sixty percent        (60%) of the aggregate number of Outstanding Shares held by the Minority Shareholders as of the        date  of  such  waiver),  notwithstanding  the  fact  that,  subject  to Section  16.7(a)(iv),  certain        Shareholders may nonetheless, by agreement with the Company, purchase such Equity Securities.          Section 8.5 Termination  and  Waiver  of  Preemption  Rights.  The  rights  established  by  this  ARTICLE VIII (and the obligations of the Company set forth in this ARTICLE VIII) shall not apply to,  and shall terminate upon the effective date of a registration statement pertaining to, a Qualified Public  Offering.           Section 8.6 Prohibited Issuance.  Notwithstanding Section 8.4 or Section 8.7, the Company  shall not, without Board approval, issue any Equity Securities that would or could result in the Company  ceasing  to  be  a  private  company  or  being  deemed  to  be  a public  company,  in  each  case  under  the  Companies Act.          Section 8.7 Assignment.  Subject to the restrictions set forth in Section 8.6, Shareholders  shall be entitled to assign in whole or in part the right to subscribe to Equity Securities of the Company to  their respective Affiliate(s), provided that: (a) at the time of issuance of such Equity Securities, each such  Affiliate shall have executed a Deed of Accession agreeing to be bound by the terms of this Agreement;  and (b) such Shareholder shall cause such Affiliate to remain as an Affiliate for so long as such Affiliate  holds such Equity Securities. Each Shareholder that assigns rights to an Affiliate under this Section 8.7 is,  and  shall  remain,  obligated  for,  and  shall  be  deemed  to  have  guaranteed,  the  performance  by  such  Affiliate of such Affiliate’s obligations under this Agreement.                                        ARTICLE IX                               TRANSFER OF SHARES          Section 9.1 Restriction  on  Transfers.   No  Shareholder  shall  make  or  attempt  to  effect  any  Transfer of all or any portion of any Equity Securities owned by such Shareholder, except in accordance  with  this ARTICLE  IX and ARTICLE  X through ARTICLE  XII.   Any  purported  Transfer  of  Equity  Securities in violation of this Section 9.1 shall be null and void ab initio and unenforceable, no right, title  or interest therein or thereto shall be Transferred to the purported transferee, and the Company shall not,  and shall cause any applicable Fit Group Company not to, record such Transfer on its books or treat any  purported transferee of such Equity Securities as the owner of such Equity Securities for any purpose.          Section 9.2 Deed of Accession.  The Company shall not register a Person (who at the time of  registration  is  not  a  Shareholder)  as  a  holder  of  Shares  pursuant  to  a  Transfer  of  Shares  or  otherwise  (including any Permitted Transfer and any Transfer effected pursuant to ARTICLE X or ARTICLE XI)  unless  that  Person  has  become  a  Party  to  and  is  bound  by  all  of the  provisions  of  this  Agreement by  execution and delivery of a Deed of Accession, and the execution and delivery of such Deed of Accession  by such Person shall be a condition precedent to the effectiveness of any such issuance or Transfer.          Section 9.3 Exemptions; Conditions.               (a)   Subject to Section 9.4, the restriction set forth in Section 9.1 shall not apply to  Transfers of Shares that constitute Permitted Transfers.               (b)   If  a  Shareholder Transfers  any  Equity  Securities  to an  Affiliate  as a  Permitted  Transferee, such Shareholder shall cause such Permitted Transferee to remain as an Affiliate for so long  as such Permitted Transferee holds Shares.  Each Shareholder is, and shall remain, obligated for, and shall                                         30                                                                                       

 

      be  deemed  to  have  guaranteed, the  performance  by  any  of  its  Permitted  Transferees  of  its  obligations  under this Agreement.                (c)   Upon registration of a Permitted Transferee as a holder of Shares, such Permitted  Transferee shall have the rights under this Agreement of the relevant Shareholder transferor, including  any  veto  rights,  consent rights  and  other  rights  expressly  granted  to  such  Shareholder  under  this  Agreement (“Specified Rights”); provided, however, that: (i) if such Shareholder transferor continues to  own any Shares following such Transfer, then all Specified Rights of such Shareholder transferor shall  instead remain with such Shareholder transferor; and (ii) if a Shareholder Transfers Shares to more than  one  Permitted Transferee, prior to making any  Transfer to a  Permitted Transferee that would result in  such Shareholder no longer owning any Shares, such Shareholder shall identify the particular Permitted  Transferee who would be granted the Specified Rights of such Shareholder transferor.           Section 9.4 Prohibited Transfers.  Notwithstanding anything to the contrary contained in  Section  9.3 or  elsewhere  in  this  Agreement,  no  Minority  Shareholder  shall,  without  the  prior  written  approval of Wal-Mart and the Board, make or attempt to effect any Transfer of any Equity Securities: (a)  to any Prohibited Transferee; or (b) where such Transfer would or could result in the Company ceasing to  be a private company or being deemed to be a public company, in each case under the Companies Act.           Section 9.5 Shareholder Anti-Liquidity Covenant.                (a)   Without  limiting  any  other  provisions  of  this  Agreement,  each  Shareholder  hereby  acknowledges  and  agrees  that  such  Shareholder  shall  not  achieve  or  cause  to  be  achieved  any  liquidity with respect to, any Shares, other Equity Securities or other economic interest of any Fit Group  Company held directly or indirectly by such Shareholder, except by way of a direct Transfer of Equity  Securities,  in  each  case  in  accordance  with,  and  subject  to  the  obligations  of,  the  provisions  of  this  Agreement and the Constitution.                (b)   The  Parties  each  acknowledge  and  agree  that  the  covenants  set  forth  in  this  ARTICLE IX are intended to ensure that the Shareholders are able to achieve liquidity with respect to  their respective investments in the Company by substantially the same means. Accordingly, the Parties  agree  that  they  shall  not  attempt  to  avoid  the  provisions  of ARTICLE  IX through  the  creation  of  intermediate  or  Special  Purpose  Entities  or  other  restructuring  of  their  interests  in  any  Fit  Group  Company.          Section 9.6 Transfers to Alibaba.  Subject to the rights set forth in ARTICLE X that would   otherwise be applicable to such Transfer, (i) the Company shall not sell or issue any Shares or other   Equity Securities to Alibaba; (ii) no Shareholder shall Transfer any Shares or other Equity Securities to   Alibaba; and (iii) no Change of Control Sale or Drag-Along Sale to Alibaba shall be effected (each an   “Alibaba Transfer”), unless Tencent shall have been given written notice of at least five (5) Business   Days prior to the consummation of such transaction, with such notice setting forth the purchase price to   be paid and all other material terms and conditions pursuant to which Alibaba is proposing to purchase   such Shares or other Equity Securities from the Company or Shareholder(s) in such Alibaba Transfer   and Tencent shall have the right to purchase all (but not less than all) of the Shares or Equity Securities   to  be  issued  by  the  Company  or  Transferred  by  any  Shareholder  in  connection  with  such  Alibaba   Transfer on the same terms and conditions as proposed by Alibaba (it being understood, however, that if   such Alibaba Transfer is otherwise subject to the terms of ARTICLE X, then Tencent shall only have   the right to purchase the portion of such Shares or Equity Securities that it has the right to do so under   the terms thereof).  No Shareholder shall Transfer any Equity Securities in an Alibaba Transfer, except   in accordance with this Section 9.6.                                         31                                                                                       

 

                                        ARTICLE X                     RIGHTS OF FIRST REFUSAL; CO-SALE RIGHTS;           Section 10.1 Notice  of  Proposed  Sale.   Except  for (a)  Permitted  Transfers,  (b)  Transfers  of  Equity  Securities  to  a  Drag-Along  Purchaser  pursuant  to ARTICLE  XI,  (c)  Transfers  of  Shares  by  Shareholders  in  a  Qualified  Public  Offering,  (d)  any  repurchase by  the  Company  of  Equity  Securities  granted, issued or awarded to employees (including officers) or directors of, or consultants, advisors or  service providers to, any Fit Group Company under any equity incentive  plan or other benefit plan or  agreement in each case as bona fide compensatory arrangements approved by the Board (including Equity  Securities issued pursuant to the exercise of such Equity Securities), and (e) any Transfer by Wal-Mart or  any of its Affiliates that does not constitute a Change of Control Sale (each an “Exempted Transfer”), and  without  limiting  any  restrictions  set  forth  in ARTICLE  IX, any  proposed  Transfer  of  Shares  or  other  Equity  Securities  by  one  or  more  Shareholders (each,  a  “Selling  Shareholder”) shall  be  consummated  only  in  accordance  with  the  following  provisions.  Other  than  with  respect  to  any  Exempted  Transfer,  upon the receipt of a bona fide written offer to purchase Shares or other Equity Securities held by one or  more Selling Shareholders in a transaction or a series of transactions (the “Offered Securities”), which  offer shall not contain any material unsatisfied conditions other than customary non-financial conditions,  then such Shareholder shall give written notice thereof (a “Sales Notice”) to the Company, and also to  each  of  the  ROFR  Shareholders  solely  to  the  extent  that  any  of  the  ROFR  Shareholders  are  not  also  Selling  Shareholders  (each  ROFR  Shareholder  who  is  not  a  Selling  Shareholder,  an  “Offeree  Shareholder”).   The  Sales  Notice  shall  set  forth:  (i)  the  name  and  other  material  particulars  of  the  proposed  transferee;  (ii) the  type  and  number of  Offered  Securities to be  sold or Transferred; (iii) the  price  per  Offered  Security;  and  (iv)  all  other  material  terms  (including  all  indemnification  and  escrow/holdback terms) and conditions upon which the Selling Shareholder proposes to sell or transfer  such Offered Securities, including a copy of the written offer received by the Selling Shareholder from  the proposed transferee.            Section 10.2 Exercise  of  Right.  Each  Offeree  Shareholder  shall  have  sixty  (60)  days  following  receipt  of  the  Sales  Notice  to  elect  to  purchase  up  to  such  Offeree  Shareholder’s pro  rata  portion (determined by dividing the number of Outstanding Shares held by such Offeree Shareholder by  the  total  number  of  Outstanding  Shares  held  by  all  Offeree  Shareholders) of  such  Offered  Securities  (rounded to the nearest whole Offered Security) for the price and upon the terms and conditions specified  in  the  Sales  Notice  by  notifying  the Selling  Shareholder  and  stating  therein  the  quantity  of  Offered  Securities to  be  purchased.  If  not  all  Offeree  Shareholders  elect  to  purchase  their  respective pro  rata  portion of the Offered Securities (or if any Offeree Shareholder elects to purchase less than its pro rata  portion  of  the  Offered  Securities),  then  the  Selling  Shareholder  shall  promptly  notify  in  writing  the  Offeree Shareholders who elected to purchase their full pro rata portion of the Offered Securities (the  “Participating Offeree Shareholders”), with a copy to the Company, and shall offer to the Participating  Offeree  Shareholders  the  right  to  acquire  any  such  excess  Offered  Securities  (the  “Excess  Offered  Securities”). Each Participating Offeree Shareholder shall have ten (10) days after receipt of such notice  to  notify  the  Selling  Shareholder  of  its  election  to  purchase  all  or  a  portion  of  the  Excess  Offered  Securities.  If  Participating  Offeree  Shareholders  deliver  notices  electing  to  collectively  purchase  more  than the number of Excess Offered Securities, then such Excess Offered Securities shall be allocated pro  rata among  such  Participating  Offeree  Shareholders  on  the  basis  of  each  Participating  Offeree  Shareholder’s relative ownership of the aggregate number of Outstanding Shares held by all Participating  Offeree Shareholders, in each case rounded to the nearest whole Offered Security. Settlement for each  such purchase shall be made within thirty (30) Business Days (plus a sufficient number of days to allow  the  expiration  or  termination  of  all  applicable  waiting  periods  under  applicable  antitrust  Law  or  the  receipt of all regulatory approvals applicable to such Transfer) of such notice of election at such place and  time as may be agreed upon by the Selling Shareholder and the applicable Offeree Shareholder or, failing  agreement, at 3:00 pm, Singapore time, on the last day of such period at the principal executive office of                                         32                                                                                       

 

      the Company.  If the nature of any portion of the proposed consideration to be received by the Selling  Shareholder  in  the  transaction  is  other  than  cash,  each  Offeree  Shareholder  shall  have  the  option  of  substituting therefor cash equal to the fair equivalent value of such proposed consideration.          Section 10.3 Failure to Exercise Right.  If the Offeree Shareholders do not, within the allotted  time, exercise their rights set forth in Section 10.2 to purchase all of the Offered Securities (including  their rights to purchase any Excess Offered Securities), then the Selling Shareholder(s) shall, subject to  Section 10.4 and the restrictions on transfer set forth in Section 9.4 and elsewhere in this Agreement, have  sixty (60) days (plus a sufficient number of days to allow the expiration or termination of all applicable  waiting periods under applicable antitrust Law or the receipt of all regulatory approvals applicable to such  Transfer, if any) thereafter to sell or otherwise Transfer the portion of the Offered Securities in respect of  which  the  Offeree  Shareholders’  rights  were  not  exercised  (the  “Unsold  Offered  Securities”)  to  the  proposed transferee named in the Sale Notice; provided, however, that if the price or terms of such sale or  Transfer become more favorable to such proposed transferee than those specified in the Sales Notice or  otherwise change in any respect (other than an immaterial respect), or if any Selling Shareholder fails,  within the allotted time, to sell or Transfer the Unsold Offered Securities to such proposed transferee, then  such Selling Shareholder shall not sell or Transfer the Unsold Offered Securities without first complying  again with Section 10.1 through Section 10.3.          Section 10.4 Co-Sale Right.               (a)   If  the  Offered  Securities (when  taken  together  with any  Shares Transferred  by  any Selling Shareholder(s) during the six (6) months prior to the date of the Sales Notice) constitute at  least  one  percent (1%) of the  Outstanding  Shares  on  the  date  of  the  Sales  Notice, then  each  Minority  Shareholder other than any Offeree Shareholder that has exercised its rights under Section 10.3 (a “Non- Purchasing Shareholder”) shall have the right, exercisable upon written notice (“Co-Sale Notice”) to the  Selling  Shareholder(s)  with  a  copy  to  the  Company,  within  sixty  (60)  days  after  receipt  of  the  Sales  Notice, to participate in such sale or transfer of Offered Securities, by selling or Transferring the same  type  of  Shares  (“Equivalent  Shares”)  held  by  the  Non-Purchasing  Shareholder  to  the  proposed  transferee(s) named in the applicable Sales Notice and/or the Offeree Shareholders who have exercised  their rights under Section 10.3 with respect to the Offered Shares.  Such Non-Purchasing Shareholder’s  Co-Sale Notice shall indicate the number of Equivalent Shares (up to that number determined in Section  10.4(b)) such  Non-Purchasing Shareholder wishes  to sell.  To the  extent one  or  more  Non-Purchasing  Shareholders exercise such right to sell Equivalent Shares pursuant to a Co-Sale Notice, the number of  Offered  Securities  that  each  Selling  Shareholder  may  sell  in  the  transaction  shall  be  correspondingly  reduced as set forth in Section 10.4(b).  For the avoidance of doubt, there shall be no obligation to comply  with  the  procedures  in Section  10.1 through Section  10.3 with  respect  to  the  Transfer  of  Equivalent  Shares by a Non-Purchasing Shareholder pursuant to this Section 10.4.               (b)   Each  Non-Purchasing  Shareholder and  Selling  Shareholder  may  sell all  or  any  part of that number of Equivalent Shares or Offered Securities, as the case may be, equal to the product  (rounded  to  the  nearest  whole  Share)  obtained  by  multiplying:  (i) the  aggregate  number  of  Offered  Securities; by (ii) a fraction: (A) the numerator of which is the total number of Outstanding Shares held by  such Non-Purchasing Shareholder or Selling Shareholder, as the case may be, on the date of the Sales  Notice and (B) the denominator of which is the total number of Outstanding Shares held collectively by  all Non-Purchasing Shareholders and all Selling Shareholders as of the date of the Sales Notice.                 (c)   The  Transfer  of  Equity  Securities  by  the  Selling  Shareholder(s)  and  the  Non- Purchasing  Shareholder(s)  shall  be  carried  out  simultaneously.  To  the  extent that  any  prospective  transferee  prohibits  such  assignment  or  otherwise  refuses  to  purchase  the  Equivalent  Shares  from  any  Non-Purchasing Shareholder in the exercise of its rights of co-sale hereunder, the Selling Shareholder(s)                                         33                                                                                       

 

      shall not sell to such prospective transferee any Offered Securities unless and until, simultaneously with  such sale, the  Selling Shareholder(s) shall purchase that number of Equivalent Shares  from such Non- Purchasing Shareholder that such Non-Purchasing Shareholder elects to sell pursuant to this Section 10.4  in accordance with the terms and conditions specified herein, pro rata by each Selling Shareholder on the  basis  of  the  relative  amounts  of  Offered  Securities  otherwise  proposed  to  be  sold  by  the  Selling  Shareholders.   For  the  avoidance  of  doubt,  no  Shareholder  exercising  rights  under Section  10.3 shall  refuse to purchase Equivalent Shares from a Non-Purchasing Shareholder.               (d)   For the avoidance of doubt, the provisions of this Section 10.4 shall not apply to,  and no Shareholder shall have any rights under this Section 10.4 with respect to Exempted Transfers          Section 10.5 Change of Control Liquidity Right.   In the event of a proposed sale of Shares by   Wal-Mart following which Wal-Mart, together with its Affiliates, would no longer continue to (a) hold   more than fifty percent (50%) of the Outstanding Shares or (b) have the right to elect a majority of the   Board, in each  case,  other  than  in  a  Drag-Along  Sale  (a  “Change  of  Control  Sale”) to  a  prospective   buyer or prospective buyers, each Minority Shareholder may sell all (but not less than all) of the Shares   held by it to the prospective buyer or buyers in connection with such Change of Control Sale on the   same terms and conditions as Wal-Mart is proposing to sell its Shares in such Change of Control Sale;   provided, however, that the provisions set forth in Section 10.1 through Section 10.3 shall continue to   apply in respect of any Transfer by any Minority Shareholder sought to be made in connection with such   Change  of  Control  Sale.  The  rights  of the  Minority  Shareholders  under  this Section  10.5 shall  be  in   addition to, and not in lieu of, the rights of the Minority Shareholders under Section 10.4.          Section 10.6 Competitor  Investment  Liquidity  Right.  Notwithstanding anything  to  the   contrary contained in Section 10.4, subject to compliance with Section 9.6, in the event of a proposed   sale of Shares by Wal-Mart to Alibaba that does  not constitute a  Change  of Control Sale  or a Drag-  Along Sale (an “Alibaba Investment”), Tencent may sell all (but not less than all) of the Shares held by   Tencent to Wal-Mart or the Company in connection with such Alibaba Investment on the same terms   and conditions as Wal-Mart is proposing to sell Shares to Alibaba in such Alibaba Investment; provided,   however, that the provisions set forth in Section 10.1 through Section 10.3 shall continue to apply in   respect of any Transfer by Tencent sought to be made in connection with such Alibaba Investment.                           ARTICLE XI  DRAG-ALONG RIGHTS.          Section 11.1 General.  If a Deemed Sale Event is approved by (a) Wal-Mart and (b) if, as of  the time of the delivery of the Drag Along Notice, Wal-Mart and its Affiliates do not hold at least eighty- five  percent  (85%)  of  the  Outstanding  Shares,  holders  of  (i)  if  the  Deemed  Sale  Event  is  to  be  consummated  prior to the third anniversary of the date hereof, sixty percent (60%) of the  Outstanding  Shares held by the Minority Shareholders, or (ii) if the Deemed Sale Event is to be consummated after the  third  anniversary  hereof,  the  Requisite  Minority  Shares  (such  approved Deemed  Sale  Event,  a  “Drag- Along  Sale”), then  the  Shareholders  approving  such  Drag-Along  Sale  (the  “Approving  Shareholders”)  shall  have  the  right  (the  “Drag-Right”),  but  not  the  obligation,  to  cause  each  Shareholder,  and  each  Shareholder hereby agrees: (A) to sell all or the Drag-Along Percentage of all of the Shares and other  Equity Securities in the  Company beneficially held by such Shareholder to the  Person(s) to whom the  Approving  Shareholders  propose  to  sell  their  Shares  in  the  Drag-Along  Sale  (the  “Drag-Along  Purchaser”),  and  (B)  otherwise  participate  in such  Deemed  Sale  Event  as reasonably  requested  by  the  Approving Shareholders, in each case on the same terms (including escrow, holdback and indemnification  terms)  and  conditions  as  the  Approving  Shareholders  are  prepared  to  accept  from  the  Drag-Along  Purchaser and in the manner and to the extent set forth in this ARTICLE XI and ARTICLE XII; provided,  however, that the Drag-Right may not be invoked in connection with any Deemed Sale Event where the  proposed purchaser is an Affiliate of Wal-Mart.                                         34                                                                                       

 

             Section 11.2 Procedure.  The Approving Shareholders may exercise their rights with respect to  a Drag-Along Sale by the giving written notice (the “Drag-Along Notice”) to each Shareholder that is not  an Approving Shareholder (each, a “Dragged Shareholder”) and the Company setting forth the terms of  the proposed Drag-Along Sale. The Drag-Along Notice shall specify: (a) the proposed valuation of the  Company  and  the  offer  price  for  the  applicable  Equity  Securities  in  the  Drag-Along  Sale;  (b)  the  percentage of the Outstanding Shares that are being acquired by the Drag-Along Purchaser in the Drag- Along Sale (the “Drag-Along Percentage”); (c) the identity and address of the Drag-Along Purchaser; and  (d) the  proposed  date,  time  and  venue for  the  conclusion  of  the  Drag-Along  Sale.  Upon  delivery  of  a  Drag-Along Notice to the Company, the Company shall take such actions as are necessary to accomplish  the Drag-Along Sale specified therein as soon as reasonably practicable. A Drag-Along Notice shall be  revocable  by  the  Approving  Shareholders  by  joint  written  notice  to  the  Company  and  the  Dragged  Shareholders, at any time before the completion of the Drag-Along Sale, and any such revocation shall  not prohibit the Approving Shareholders from exercising Drag-Rights at any time in the future.          Section 11.3 Failure to Comply.  If the Drag-Along Sale includes a sale of Equity Securities of  the  Company  and  any  Shareholder  fails  to  comply  with  such  Shareholder’s  obligations  under  this  ARTICLE XI or ARTICLE XII, then there may be deposited into an escrow account established for such  purpose the consideration payable to such Shareholder in connection with the Drag-Along Sale for Equity  Securities of the Company held by such Shareholder, whereupon all such Equity Securities held by such  Shareholder shall be deemed  to have  been sold or Transferred in the  Drag-Along Sale  without further  action by any Person, and the rights of such Shareholder in respect of such Equity Securities after such  deposit  shall  be  limited  to  receiving  such  consideration  (subject  to  reduction,  from  time  to  time,  in  accordance  with  the  terms  of  the  transaction,  including,  if  applicable,  reduction  as  a  result  of  indemnification  claims  made  by  the  Drag-Along  Purchaser)  upon  presentation  and  surrender  by  such  Shareholder of: (a) the certificates or other documents representing such Shareholder’s Equity Securities,  duly  endorsed  for  transfer;  and  (b)  any  other  agreements,  documents  and  instruments  required  to  be  executed and delivered by such Shareholder under this ARTICLE XI or ARTICLE XII in connection with  the  Drag-Along  Sale.  For  the  avoidance  of  doubt,  if  any  Shareholder  fails  to  comply  with  such  Shareholder’s  obligations  under this ARTICLE  XI or ARTICLE  XII,  the  Drag-Along  Purchaser   may  elect, in its sole discretion, to effect the acquisition of the Equity Securities held by Shareholders who  comply with this ARTICLE XI and ARTICLE XII in lieu of, prior to or concurrent with effecting the  transfer  of  the  Shares  held  by  such  non-complying  Shareholder  in  accordance  with  the  immediately  preceding sentence. In furtherance of the rights of the Approving Shareholders and the obligations of each  Shareholder under this ARTICLE XI and ARTICLE XII, each Shareholder (except, in the case of clauses  “(i)” and “(ii)” below, Tencent) hereby: (i) irrevocably appoints Wal-Mart as its agent and attorney-in- fact (with full power of substitution) to execute all agreements, instruments and certificates and take all  actions  necessary  or  desirable  to  perform  such  Shareholder’s  obligations  under  this ARTICLE XI and  ARTICLE XII; (ii) grants Wal-Mart an irrevocable, durable proxy (which the Shareholder acknowledges  is coupled with a sufficient interest) to vote, or act by written resolution in respect of, the Shares held by  such Shareholder in accordance with such Shareholder’s voting obligations under this ARTICLE XI and  ARTICLE  XII;  and  (iii)  agrees  to take  such  further  action  or  execute  such  other  documents  and  instruments  as  may  be  necessary  or  desirable  to  effectuate  the  provisions  of  this Section  11.3.  The  exercise by any Person of any remedies pursuant to this Section 11.3 shall not be deemed to waive, limit  or cure the applicable Shareholder’s breach of the provisions of this ARTICLE XI or ARTICLE XII, and  all rights and remedies of any Person in respect of such breach shall be preserved.          Section 11.4 Conditions.  Notwithstanding the foregoing, a Shareholder will not be required to  comply with Section 11.1 or ARTICLE XII in connection with any proposed Drag-Along Sale (regardless  of whether at the time of such Drag-Along Sale Wal-Mart and its Affiliates collectively hold at least  eighty-five percent (85%) of the Outstanding Shares), unless:                                         35                                                                                       

 

                                                   (a)   if such Shareholder is a Minority Shareholder, such Shareholder shall have the  opportunity to sell one hundred percent (100%) of the Shares and all other Equity Securities held  by such Shareholder in connection with the Drag-Along Sale;         (b)   any representations and warranties to be made by such Shareholder in connection  with  the  Drag-Along  Sale  shall  be  limited  to  the  representations  and  warranties  set  forth  in  Section 12.1;          (c)   such Shareholder shall not be liable for the inaccuracy of any representation or  warranty  made  by  any  other  Shareholder  in  connection  with  the  Drag-Along  Sale  (other  than  representations and warranties relating to the Fit Group, including  its business, operations, results  of  operations,  assets  and  liabilities)  and,  in  the  event  such  Shareholder  is  held  liable  for  indemnification in the Drag-Along Sale for the inaccuracy of any representations and warranties  relating to the Fit Group, such Shareholder’s liability (i) is several and not joint with any other  Shareholder (except to the extent that funds may be paid out of an escrow or holdback established  to partially or wholly secure any indemnification obligations of the Shareholders in connection  with such Drag-Along Sale), and is pro rata in proportion to the amount of consideration to be  paid to such Shareholder in connection with the Drag-Along Sale (as compared to the amount of  consideration to be paid to all Shareholders in connection therewith) and (ii) does not exceed the  amount of consideration to be paid to such Shareholder in connection with such Drag-Along Sale  (except in the case of fraud by such Shareholder);         (d)   upon the consummation of the Drag-Along Sale, such Shareholder will receive  the  same  form  and  amount  of  consideration  per Share  as is  received  by  other Shareholders  in  respect  of  their  Shares; provided, however,  that,  notwithstanding  the  foregoing,  if  the  consideration to be paid in exchange for such Shareholder’s Equity Securities in a Drag-Along  Sale  includes  any  securities  and  due  receipt  thereof  by  such  Shareholder  would  require  under  applicable Law either (i) the registration or qualification of such securities or of any person as a  broker or dealer or agent with respect to such securities or (ii) the provision to any Shareholder of  any information other than such information as a prudent issuer would generally furnish in an  offering  made  solely  to  Accredited  Investors,  then  the  consideration  to  be  received  by  such  Shareholder in the Drag-Along Sale may include, in lieu of such securities, an amount in cash  equal  to  the  fair  value  of  the  securities  that  such  Shareholder  would  otherwise  receive  in  the  Drag-Along Sale (as determined in good faith by the Board) in exchange for such Shareholder’s  Equity Securities;         (e)   if  any  Shareholders  are  given  an  option  as  to  the  form  and  amount  of  consideration to be received as a result of the Drag-Along Sale with respect to a particular class  or series of Shares (other than an offer to members of management of the Fit Group Companies to  roll-over their Equity Securities), such Shareholder will be given the same option with respect to  the same class or series of Shares held by such Shareholder; provided, however, that nothing in  this  clause “(e)”  shall entitle  any holder to receive  any form of consideration that such holder  would  be  ineligible  to  receive  as  a  result  of  such  holder’s  failure  to  satisfy  any  condition,  requirement or limitation that is generally applicable to the  other Shareholders;          (f)   no non-competition obligations are imposed on the Shareholder or its Affiliates,  except if such Shareholder is the Founder or an officer or employee of any Fit Group Company;  and         (g)   no non-solicitation obligations are imposed on the Shareholder or its Affiliates,  except  (i)  if  such  Shareholder  is  the  Founder  or  an  officer  or  employee  of  any  Fit  Group                                   36                                                                                 

 

            Company, or (ii) for obligations restricting the solicitation of employees or service providers of        any Fit Group Company for a period of one (1) year following the consummation of the Drag-       Along Sale.                                    ARTICLE XII                           TRANSFER-RELATED MATTERS          Section 12.1 Representations  and  Warranties  Relating  to  Transfer.   In  the  event  that  any  Shareholder Transfers Shares or other Equity Securities pursuant to ARTICLE X or ARTICLE XI, such  Shareholder shall be required to make  the following representations  and warranties in connection with  such Transfer:               (a)   such  Shareholder  has  the  sole  and  exclusive ownership  of,  and  good  and       marketable title to, the Shares or other Equity Securities being Transferred;               (b)   the Shares and other Equity Securities to be Transferred by such Shareholder are       free and clear of all Liens (except as set forth in this Agreement and the Constitution);               (c)   such Shareholder has the requisite corporate, limited liability company or other       power and authority, to enter into the documents required to be executed and delivered by such       Shareholder  in  connection  with  such  Transfer  (“Transfer  Documents”)  and  to  perform  such       Shareholder’s obligations thereunder.  Such Shareholder’s execution, delivery and performance of       the  Transfer  Documents  has been  duly  and  validly  authorized  and  approved  by  all  necessary       corporate  or  other  action.   Such  Shareholder  has  duly  executed  and  delivered  the  Transfer       Documents,  and  the Transfer  Documents  constitute  such  Shareholder’s  legal,  valid  and  binding       obligations,  enforceable  against  such  Shareholder  in  accordance  with  its  terms,  except  as  such       enforceability may be  limited  by applicable bankruptcy, insolvency, reorganization, moratorium       and similar Laws of general application relating to or affecting the rights and remedies of creditors       and by general principles of equity;                (d)   the execution and delivery of the Transfer Documents to which such Shareholder       is  a  party  and  the  consummation  of  the  transactions  contemplated  thereby  do  not  and  will  not       conflict with or result in the breach of any term or provision of, or constitute a default under, (i)       any Contract to which such Shareholder is a party or by which such Shareholder is bound (other       than those Contracts the consequence of a violation of which would not reasonably be expected to       adversely affect such Shareholder’s  ability to consummate  the  transactions  contemplated by the       Transfer  Documents  or  the  performance  of  such  Shareholder’s  obligations  under  any  Transfer       Document),  or  (ii)  any  Law,  rule  or  regulation  or  order,  judgment  or  decree  of  any  court  or       Governmental Authority applicable to such Shareholder, or the organizational documents of such       Shareholder;               (e)   no  consent,  approval  or  authorization  of,  or  registration,  declaration  or  filing       with, any Governmental Authority or any other Person is required to be obtained or made by such       Shareholder in connection with the execution, delivery or performance of the Transfer Documents;       and               (f)   there is no action, cause of action, claim, cease and desist letter, demand, suit,       arbitration proceeding, citation, summons, subpoena or investigation of any nature, civil, criminal,       regulatory or otherwise, in law or in equity, pending or, to the knowledge of such Shareholder,       threatened  against  or  affecting  such  Shareholder,  nor  are  there  any  settlement  agreements  or       similar  written  agreements  with  any  Governmental  Authority  or  outstanding orders,  judgments,                                         37                                                                                       

 

           stipulations, decrees, injunctions, determinations or awards issued by any Governmental Authority       against or affecting such Shareholder, in each case that adversely affects such Shareholder’s ability       to consummate the transactions contemplated by the Transfer Documents or the performance of       such Shareholder’s obligations under any Transfer Document; and               (g)   such  representations  and  warranties  relating  to  the  Fit  Group  Companies,       including their respective businesses, operations, results of operations, assets and liabilities, as are       being made by all transferring Shareholders; provided, however, that liability with respect to such       representations and warranties shall be limited as set forth in Section 11.4(c) in the case of a Drag-      Along Sale.          Section 12.2 Other Actions. In the event that any Shareholder Transfers Shares or other Equity   Securities pursuant to ARTICLE X or ARTICLE XI, such Shareholder shall, and in connection with any   Drag-Along Sale, each Dragged Shareholder shall:               (a)   take  or  cause  to  be  taken  all  actions  as  may  be  reasonably  requested  by  the  Company, the proposed transferee, the other transferring Shareholders, the Approving Shareholders or the  Drag-Along Purchaser, or as may otherwise be reasonably necessary or desirable, in order to carry out the  terms  of ARTICLE  X or ARTICLE  XI,  as  applicable,  and  expeditiously  consummate  the  Transfer  or  other Drag-Along Sale pursuant thereto and any related transactions, including:                      (i)   executing,  acknowledging  and  delivering   consents,  assignments,              waivers, agreements and other documents and instruments;                      (ii)  voting  all  Shares  that  such  Shareholder  owns  or  over  which  such              Shareholder  otherwise  exercises  voting  power  (in  person,  by  proxy  or  by  action  by              written  consent,  as  applicable):  (A) in  favor  of the  Transfer  or  other  Drag-Along  Sale              (together with any related amendment to the Constitution required in order to implement              the  Transfer  or  other  Drag-Along  Sale)  and  (B)  in  opposition  to  any  and  all  other              proposals  that could  delay,  or  impair  the  ability  of the  Shareholder,  the  Company,  the              proposed  transferee,  the  Approving  Shareholders  or  the  Drag-Along  Purchaser  to              consummate, the Transfer or other Drag-Along Sale;                     (iii) except  as  provided  in  this  Agreement,  not  depositing  (and  causing  its              Affiliates not to deposit) any Shares or Equity Securities owned by such Shareholder or              Affiliate in a voting trust, and not subjecting (and causing its Affiliates not to subject) any              such  Shares  or  Equity  Securities  to  any  arrangement  or  agreement  with  respect  to  the              voting of such Shares or Equity Securities, unless specifically requested to do so by the              proposed transferee in connection with the Transfer or the Drag-Along Purchaser;                     (iv)  refraining from exercising and, upon request (whether before or after the              closing  of  the  Transfer  or  other  Drag-Along  Sale,  and  regardless  of  whether  such              Shareholder  received  advanced notice  of  the  Transfer  or  other  Drag-Along  Sale),  to              affirmatively  waive,  any  dissenters’  rights,  rights  of  appraisal  or  similar  rights  under              applicable Law at any time with respect to the Transfer or other Drag-Along Sale;                      (v)   in the event that the other transferring Shareholder(s), in connection with              such  Transfer  or  other  Drag-Along  Sale,  appoint  a  Shareholder  representative  (the              “Shareholder Representative”) with respect to matters affecting the  Shareholders under              the  applicable  definitive  transaction  agreements  following  consummation  of  such              Transfer: (A) consenting to: (1) the appointment of such Shareholder Representative; (2)                                         38                                                                                       

 

                  the establishment of any applicable escrow, expense or similar fund in connection with              any indemnification or similar obligations, and (3) the payment of such Shareholder’s pro              rata  portion  (from  the  applicable  escrow  or expense fund  or otherwise) of  any  and  all              reasonable fees and expenses to such Shareholder Representative in connection with such              Shareholder Representative’s services and duties in connection with such Transfer and its              related service as the representative of the Shareholders; and (B) not asserting any claim              or commencing any suit against the Shareholder Representative or any other Shareholder              with  respect  to  any  action  or  inaction  taken  or  failed  to  be  taken  by  the  Shareholder              Representative in connection with its service as the Shareholder Representative, absent              fraud or willful misconduct;                     (vi)  furnishing information and copies of documents reasonably necessary to              effectuate the Transfer or other Drag-Along Sale;                     (vii) filing  applications,  reports,  returns,  filings  and  other  documents  and              instruments  with  Governmental  Authorities  reasonably  necessary  to  effectuate  the              Transfer or other Drag-Along Sale; and                      (viii) otherwise  reasonably  cooperating  with  the  Fit  Group  Companies,  the              other transferring Shareholders, the proposed transferee, the Approving Shareholders and              the Drag-Along Purchaser, as applicable.               (b)   if the Transfer or other Drag-Along Sale is consummated, pay such Shareholder’s  pro rata share (in proportion to the amount of consideration to be paid to such Shareholder in connection  with the Transfer or other Drag-Along Sale as compared to the aggregate consideration received by all  transferring Shareholders) of the reasonable costs incurred by the transferring Shareholders and the Fit  Group Companies relating to the Transfer or other Drag-Along Sale (including legal fees and expenses,  accounting  fees  and  expenses  and  all  finders,  brokerage  or  investment  banking  fees  and  expenses)  (“Transaction Expenses”) to the extent not paid or reimbursed by a Fit Group Company or the proposed  transferee or Drag-Along Purchaser or deducted from the consideration payable to such Shareholder in  the manner described in Section 12.3; and               (c)   at the closing of any Transfer of Shares pursuant to ARTICLE X or ARTICLE  XI, provide, for delivery to the transferee of one or more certificates that represent the number of Shares  to be Transferred by such Transferring Shareholder, together with a signed share transfer form (or other  applicable transfer form) duly completed  in favor of the  prospective  transferee in accordance with the  Constitution in respect of such Shares, free and clear of any Liens, with any applicable transfer tax stamps  affixed, against delivery of the applicable consideration in consummation of the Transfer of such Shares.          Section 12.3 Closing Consideration.  In connection with any Transfer of Equity Securities or   other Drag-Along Sale pursuant to ARTICLE X or ARTICLE XI, the transferring Shareholders shall   receive any consideration for such Equity Securities or in the Drag-Along Sale after deduction of their   pro rata share (in proportion to the amount of consideration to be paid to such Shareholder in connection   with such Transfer as compared to the aggregate consideration received by all transferring Shareholders)   of:  (a)  amounts  paid  into  escrow  or  held  back  for  indemnification  or  post-closing  expenses;  (b)  any   Transaction  Expenses;  and  (c)  amounts  subject  to  post-closing  purchase  price  adjustments,  if  and  as   applicable.           Section 12.4 Limitation  on  Liability.  The  Parties  agree  that  no  Shareholder  shall  have  any   obligation or liability to any other holder of Equity Securities arising from, relating to or in connection   with any Transfer or proposed Transfer of Equity Securities pursuant to ARTICLE X or ARTICLE XI,                                         39                                                                                       

 

       whether or not such Transfer is consummated (except to the extent, if any, such Shareholder may agree   in the definitive documents reflecting such Transfer). Without limiting the generality of the foregoing,   no Shareholder shall have any obligation or liability to any other holder of Equity Securities as a result   of any decision by such Shareholder to approve, accept and consummate (or to not approve, accept or   consummate)  any  Transfer  of  Equity  Securities  pursuant  to ARTICLE  X or ARTICLE  XI (it  being   understood that any and all such  decisions shall be made by such Shareholder in its sole  discretion),   except  to  the  extent,  if  any,  such  Shareholder  may  agree  in  the  definitive  documents  reflecting  such   Transfer.                                     ARTICLE XIII                                  TERMINATION          Section 13.1 Termination Generally.  Subject to Section 13.3, this Agreement shall terminate  in  its  entirety  upon  the  consummation  of  a  Qualified  Public  Offering.   Upon  such  termination,  this  Agreement shall cease to apply to all Parties. Except as otherwise set forth in Section 9.3 and ARTICLE  XV, any Person who ceases to hold any Shares shall cease to be a Shareholder and shall have no further  rights or obligations under this Agreement.           Section 13.2 Accrued Rights and Obligations.  All rights and obligations of the Parties under  this  Agreement  shall  cease  immediately  upon  termination  of  this  Agreement  in  accordance  with  this  ARTICLE XIII.  Such termination shall not affect a Party’s accrued rights and obligations as on the date  of such termination.          Section 13.3 Survival.  The Parties expressly agree that the provisions of ARTICLE I  (Definitions), Section  7.7 (Non-Solicitation  and  Non-Competition), ARTICLE  XV (Confidentiality),  Section  13.2 (Accrued  Rights  and  Obligations),  this Section  13.3 and ARTICLE  XVI (Miscellaneous)  shall survive the termination of this Agreement.                                    ARTICLE XIV                               DISPUTE RESOLUTION          Section 14.1 Dispute Resolution.               (a)   Any  dispute,  controversy  or  claim  arising  out  of,  relating  to,  or  in  connection  with, this Agreement, or the breach, termination or validity hereof, shall be finally settled by arbitration.  The  arbitration  shall  be  conducted  in  accordance  with  the  Arbitration  Rules  (the “Rules”) of  the  Singapore  International  Arbitration  Centre,  except  as  they  may  be  modified  herein  or  by  mutual  agreement  of  the  parties  to  the  dispute,  controversy  or  claim.   The  seat  of  the  arbitration  shall  be  Singapore. The arbitration shall be conducted in the English language.  Evidence and testimony may be  presented in any language,  including a language  other than English providing it is accompanied by an  English translation thereof (which translation shall have been certified and prepared or given at the sole  cost of the Party offering such evidence or testimony).                 (b)   The dispute shall be settled by a panel of three arbitrators to be appointed by the  parties to the dispute (“Arbitration Tribunal”) failing which the members of the Arbitration Tribunal shall  be  appointed  by  the  President  of  the  Court  of  Arbitration  of  the  Singapore  International  Arbitration  Centre.               (c)   The  arbitral  award  shall  be  in  writing  and,  unless the  parties to  the  arbitration  agree otherwise, shall state the reasons upon which it is based. The award shall be final and binding on  the parties to the arbitration. The award may include an award of costs, including reasonable attorneys’                                         40                                                                                       

 

      fees  and  disbursements.   Judgment  upon  the  award  may  be  entered  by  any  court  having  jurisdiction  thereof or having jurisdiction over the parties to the arbitration or their assets.               (d)   Notwithstanding anything to the contrary above, nothing in this Section 14.1, or  otherwise, shall limit the right of any party to this Agreement to seek judicial equitable relief, specific  performance or other equitable relief available to it under applicable Law.                (e)   The  Parties  agree  that  the  operation  of  part  I  of  the  (Indian)  Arbitration  and  Conciliation Act, 1996 is expressly excluded.                                    ARTICLE XV                                CONFIDENTIALITY          Section 15.1 Confidentiality.                (a)   The  terms  and  conditions  of  this  Agreement  shall  be  Confidential  Information  and  the  Shareholders shall  not  disclose  the  same  to  any  third  party  except  as  provided  below.  Each  Shareholder shall be permitted to disclose the terms of this Agreement to such Shareholder’s investors,  investment bankers, lenders, accountants, auditors, legal counsel, and bona fide prospective investors and  transferees and, only after obtaining written consent of the Company, to any other Persons, provided, in  each  case,  that  such  Persons  are  informed  of  the  confidential  nature  of  the  information  and  are  under  appropriate non-disclosure and non-use obligations imposed by ethics, Law or contract with respect to  such information.  Nothing in this Section 15.1 shall affect: (i) any press release issued with the prior  written  consent  of  the  Company; provided, however,  if  any  press  release  refers  to  a  particular  Shareholder, in any form or manner, specific written consent of such Shareholder shall be required; (ii)  disclosures contemplated under the Transaction Documents; (iii) disclosures by the Shareholders to their  respective investment committees, shareholders, boards, trustees, consultants, limited partners or any of  their Affiliates or advisors, provided, in each case, that any recipient of such information is informed of  the  confidential  nature  of  such  information  and  is  under  appropriate  non-disclosure  and  non-use  obligations with respect to such information; (iv) disclosures that are required by applicable Law or the  rule or regulations of any stock exchange.               (b)   Except  with  the  prior  written  consent  of  the  Company,  each  Minority  Shareholder  shall  ensure  that:  (i)  all  trade  secrets,  confidential  operations,  dealings  and  all  other  information relating to the Fit Group, its businesses, finance, transactions or affairs, including proprietary  or confidential information in relation to the Fit Group (“Confidential Information”) obtained by it, its  Affiliates or representatives will be kept secret and confidential both during the term, and at all times after  termination,  of  this  Agreement;  and  (ii)  it,  its  Affiliates  and  representatives:  (A)  do  not  divulge  any  Confidential  Information  to  any  third  party,  or  use,  conceal,  destroy  or  obtain  any  Confidential  Information for his own advantage or that of a third party to the detriment of any Fit Group Company;  and (B) prevent the publication or disclosure of any Confidential Information; provided, however that: (1)  each Minority Shareholder shall be permitted to disclose Confidential Information: (x) in accordance with  Section 15.1(a); and (y) to its employees, directors and representatives who have a need to know such  information  as  long  as  any  recipient  of  such  Confidential  Information  is  informed of  the  confidential  nature  of the  information and  is  under appropriate  non-disclosure  and  non-use obligations  imposed by  ethics,  Law  or  contract  with  respect  to  such  information;  (2)  such  obligation  shall  not  extend  to  Confidential Information to the extent that it has entered the public domain otherwise than through a fault  of the party who has disclosed the same into the public domain; and (3) Confidential Information shall not  include information that the receiving party can demonstrate that the receiving party independently knew  at the time of receiving such information without any obligation of confidentiality with respect thereto, or  that the receiving party has independently developed without using any Confidential Information (in each                                         41                                                                                       

 

      case,  subject to  such  independent  knowledge  or  development  not  being  a  result  of  any  breach  of  this  Section 15.1 or any other obligation of confidentiality or non-use); provided, further that any disclosure  required by Applicable Law or by the rules or regulations of any stock exchange shall not constitute a  breach of this Agreement.               (c)   If a Minority Shareholder is required by Law, legal process or the rules of any  stock exchange to disclose any Confidential Information, such Minority Shareholder may disclose such  Confidential Information in accordance with such Law, legal process, rules or regulations, provided that  the Minority Shareholder: (i) if practicable, gives the Company written notice and the opportunity to seek  confidential treatment of the Confidential Information prior to such disclosure; and (ii) uses commercially  reasonable efforts to ensure that such Confidential Information is disclosed only to the extent so required.               (d)   The obligations of a Shareholder contained in this ARTICLE XV shall endure,  even after such Minority Shareholder ceases to own any Shares or the termination of this Agreement.                                    ARTICLE XVI                                 MISCELLANEOUS           Section 16.1 Inconsistency.   As  among  the  Parties,  the  provisions  of  this  Agreement  shall  prevail over any inconsistent section in the Constitution, and as soon as possible after becoming aware of  any  such  inconsistency,  all  Parties  shall  take  all  necessary  steps  to  amend any  inconsistency  in  the  Constitution to the fullest extent permitted by Law.          Section 16.2 Governing Law.  This Agreement shall be governed by and construed and  interpreted in accordance with the laws of Singapore.            Section 16.3 Successors  and  Assigns.   Except  as  otherwise  expressly  provided  herein,  the  provisions hereof shall inure to the benefit of, and be  binding upon, the successors, permitted assigns,  heirs, executors and administrators of the Parties. Notwithstanding anything to the contrary contained in  this Agreement, neither this Agreement nor any right or obligation under it shall be assignable, assumable  or otherwise transferable by any Shareholder (other than to such Shareholder’s Permitted Transferee in  accordance with this  Agreement) without the  prior written  consent of (a) Wal-Mart and,  (b) unless (i)  Wal-Mart and its Affiliates collectively own at least eighty-five percent (85%) of the Outstanding Shares,  or  (ii)  the  Minority  Shareholders  are  entitled  to  Transfer  100%  of  their  shares  in  connection  with  the  transaction  that  results  in  the  assignment  (including  pursuant  to Section  10.5 and ARTICLE  XI),  the  holders  of the  Requisite Minority Shares,  and any purported assignment, assumption or other Transfer  without such consent shall be void and unenforceable.          Section 16.4 Entire Agreement.  This Agreement and the Transaction Documents constitute  the  entire  understanding  between  the  Parties  with  regard  to  the  subject  matter  hereof  and  thereof  and  supersede any other agreement between the Parties relating to the subject matter hereof and thereof.           Section 16.5 Specific Performance.  This Agreement shall be specifically enforceable at the  instance  of  any  Party.  The  Parties  agree  that  a  non-defaulting  Party  will suffer  immediate,  material,  immeasurable, continuing and irreparable damage and harm in the event of any material breach of this  Agreement  and  the  remedies  at  law  in  respect  of  such  breach  will  be  inadequate  (each  Party  hereby  waives the claim or defense that an adequate remedy at law is available), and such non-defaulting Party  shall be entitled to specific performance against the defaulting Party for performance of its obligations  under  this  Agreement  in  addition  to  any  and  all  other  legal  or  equitable  remedies  available  to  it.   Termination shall be without prejudice to all rights and remedies at law or in equity available to the non- defaulting Party.                                         42                                                                                       

 

             Section 16.6 Notices.                 (a)   Unless  otherwise  provided  herein,  all  notices,  requests,  waivers  and  other  communications  (“Notices”)  shall  be  made  in  writing  and  by  letter  (delivered  by  hand,  courier  or  registered post), email or facsimile transmission (save as otherwise stated) and shall be deemed to be duly  given  or  made:  (i)  in  the  case  of  personal  delivery,  when  delivered; (ii)  in  the  case  of  facsimile  transmission,  provided  that  the  sender  has  received  a  receipt  indicating  proper  transmission,  when  dispatched;  (iii)  in  the  case  of  email,  provided  that  the  sender  has  not  received  a  subsequent  delivery  failure email, when sent by the sender; (iv) in the case of delivery by registered or certified mail with  return receipt requested and postage prepaid, five (5) days after having been sent; or (v) in the case of  delivery  by  an  internationally  recognized  overnight courier,  specifying  next  day  delivery,  with  written  verification of receipt, one (1) day after deposit.               (b)   If delivery or receipt occurs on a day other than a Business Day, or is later than  5:00 p.m. (local time), delivery or receipt will be deemed to have occurred at the commencement of the  next Business Day.               (c)   The address for notices for Wal-Mart shall be as set forth on its signature page  hereto; and for each of the Minority Shareholders as set forth in Schedule 1. Any Party’s address may be  changed by such Party by Notification to the Company and the other Parties.          Section 16.7 Amendments and Waivers.                 (a)   Any term of this Agreement may be amended or terminated, and the observance  of any term of this Agreement may be waived, only with the written consent of the Company, Wal-Mart  and  holders  of the  Requisite  Minority  Shares; provided, however, that any  amendment,  termination  or  waiver  that,  on  its  face,  materially  and  adversely  affects  any  one  Minority  Shareholder  in  a  manner  different  from  and  disproportionate  to  the  adverse  effect  on  the other  Minority  Shareholders,  as  applicable,  shall  require  the  specific  prior  written  consent  of  such  affected  Minority  Shareholder,  as  applicable; provided, further,  that:  (i)  any  amendment,  termination  or  waiver of Section  1.1 (solely  in  respect to the definitions of “Non- Compete Duration” and “Permitted Transfer”), Section 3.1(a), Section  3.2(a), Section 3.8(d), Section 7.7, or this clause “(i)” that adversely affects or eliminates the rights of (or  increases the obligations of) the Founder, in each case other than in an immaterial respect, shall require  the specific prior written approval of the Founder; (ii) any amendment, termination or waiver of Section  1.1 (solely with respect to the proviso to the definition of “Competitor” and, so long as Tencent continues  to satisfy the relevant Minimum Ownership Threshold, the definitions of “Key Minority Shareholder” and  “Minority Ownership Threshold”  (in each case  solely as such definition pertains  to Tencent)); Section  3.1(a), Section  3.2(c), Section  3.8(b) and Section  3.8(d) (solely  as  such  provisions  pertain  to  the  Key  Minority  Shareholders), Section  7.3(g) (solely  as  it  pertains  to  the  requirement  to  deliver  a  power  of  attorney), Section 10.1 (solely as it pertains to the Key Minority Shareholders), Section 10.6,  Section  11.3 (solely as it pertains to the applicability of clauses “(i)” and “(ii)” therein to Tencent) or this clause  “(ii)” that adversely affects or eliminates the rights of (or increases the obligations of) Tencent, in each  case other than in an immaterial respect, shall require the specific prior written approval of Tencent; (iii)  any amendment, termination or waiver of Section 1.1 (so long as Tiger continues to satisfy the relevant  Minimum  Ownership  Threshold,  the  definitions  of  “Key  Minority  Shareholder”  and  “Minority  Ownership Threshold”, in each case solely as such definition pertains to Tiger); Section 3.1(a), Section  3.2(c), Section 3.8(b) and Section  3.8(d) (solely as  such  provisions  pertain  to  the  Key  Minority  Shareholders), Section 10.1 (solely as it pertains to the Key Minority Shareholders) or this clause “(iii)”  that adversely affects or eliminates the rights of (or increases the obligations of) Tiger, in each case other  than in an immaterial respect, shall require the specific prior written approval of Tiger; (iv) in the case of  any amendment of ARTICLE VIII that disapplies the terms thereof to, or any waiver of the observance of                                         43                                                                                       

 

      the  terms  thereof  in respect  of,  any  given  issuance  of  Equity  Securities, no Minority  Shareholder  that  approved such amendment or waiver may then purchase any of such Equity Securities without the prior  written consent of each non-approving Minority Shareholder.                 (b)   Notwithstanding the above, no such consent shall be necessary to add additional  persons who purchase new Shares after the date hereof as additional Shareholders and afford them similar  rights  to  those  enjoyed  by  the  Shareholders  hereunder,  and/or include  such  additional  Shareholders  as  Minority Shareholders and/or as parties whose approval is or may be required for any matter for which  the approval of the Minority Shareholders is required,  provided, in each case, that each such additional  Shareholder has executed a Deed of Accession hereto.                 (c)   Any amendment, termination or waiver of any term of this Agreement effected in  accordance with this Section 16.7 shall be binding upon each of the Parties hereto and their respective  successors and assigns.           Section 16.8 Delays  or Omissions.  No  delay  or  omission  to  exercise  any  right,  power  or  remedy accruing to any Party, upon any breach or default of any Party hereto under this Agreement shall  impair any such right, power or remedy of any Party nor shall such delay or omission (or any other waiver  of any other breach or default thereto or thereafter occurring) be construed to be a waiver of any such  breach or default, or an acquiescence therein, or of any similar breach or default thereafter occurring. Any  waiver, permit, consent or approval of any kind or character on the part of any Party of any breach or  default under this Agreement or any waiver on the part of any Party of any provisions or conditions of  this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such  writing  and  signed  by  such  waiving  Party.  All  remedies,  either  under  this  Agreement,  or  by  law  or  otherwise afforded to any Party shall be cumulative and not alternative.          Section 16.9 Counterparts.  This Agreement may be executed and delivered in any number of  counterparts (including any counterparts exchanged by electronic communication) each of which shall be  an original, but all of which together shall constitute one and the same instrument.          Section 16.10 Severability.   If  a  court  of  competent jurisdiction  holds  that  part  of  this  Agreement is invalid, inoperative or unenforceable in any jurisdiction or circumstances, that part shall not  be  invalid,  inoperative  or  unenforceable  in  any  other  jurisdiction  or  circumstances,  so  long  as  such  invalidity, inoperativeness or unenforceability does not result in a material limitation of any benefit or  increase in any obligation or liability of any Party, and no other part of this Agreement shall be invalid,  inoperative  or  unenforceable,  or  affected  in  any  other  way.   Upon  such  holding  that  any  part  of  this  Agreement is invalid, inoperative or unenforceable: (a) the court making such holding is authorized and  instructed to modify this Agreement so as to effect the original intent of the Parties as closely as possible;  and (b) the Parties shall negotiate in good faith to amend this Agreement to effect the original intent of the  Parties as closely as possible.  If a provision of this Agreement is so broad as to be unenforceable, that  provision shall be interpreted to be only as broad as is enforceable.          Section 16.11 Interim  Relief.   Notwithstanding  anything  in  this  Agreement,  the  Parties  acknowledge and agree that the Parties shall, to the extent permitted by the Rules, have the right at any  time to apply to the Arbitration Tribunal for interim injunctive relief in relation to any dispute arising out  of or in connection with this Agreement.          Section 16.12 Conflict  with  Constitution.   In  the  event  of  any  ambiguity  or  discrepancy  between the provisions of this Agreement and the Constitution, the provisions of this Agreement shall  prevail and accordingly the Shareholders shall exercise all voting and other rights and powers available to                                         44                                                                                       

 

      them to give effect to the provisions of this Agreement and cause such necessary alterations to be made to  the Constitution as are required to remove such ambiguity or discrepancy.          Section 16.13 Costs and Expenses.  Each Party shall bear its own costs and expenses in relation  to the execution and performance of this Agreement.           Section 16.14 Third Parties.  A person who is not a party to this Agreement has no right under  the  Contracts  (Rights  of  Third  Parties)  Act,  Chapter  53B  of  Singapore  to  enforce  any  term  of  this  Agreement, except to the extent set out in this Agreement.              1.    [remainder of page intentionally left blank; signature pages follow]                                             45                                                                                       

 

           IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed and  delivered as a DEED as of the date first above written.                                         COMPANY:                                                                            Flipkart Private Limited                                                                                                                                                                    By: ______________________________                                      Name:       [●]                                      Title:      [●]                                                                            Witnessed by: ______________________________                                                                            Name:       [●]                                      Title:      [●]                                      Occupation:  [●]                                      Address:    [●]                                                                            Signature Page to Shareholders’ Agreement                                                                                    

 

                                                   IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed and  delivered as a DEED as of the date first above written.                                                                             Wal-Mart:                                       Fit Holdings S.a.r.l.                                                                                                                  By: ______________________________                                      Name:       [●]                                      Title:      [●]                                                                             Address for Notification:                                       [●]                                      [●]                                      [●]                                                                             Witnessed by: ______________________________                                                                            Name:       [●]                                      Title:      [●]                                      Occupation: [●]                                      Address:    [●]                                                                 Signature Page to Shareholders’ Agreement                                                                                          

 

                                                   IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed and  delivered as a DEED as of the date first above written.                                                                             Binny Bansal                                                                              By:                                                                  Name:       [●]                                      Title:      [●]                                                                              Witnessed by: ______________________________                                                                            Name:       [●]                                      Title:      [●]                                      Occupation:  [●]                                      Address:    [●]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Signature Page to Shareholders’ Agreement                                                                                          

 

               IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed and  delivered as a DEED as of the date first above written.                                                                             [●]:                                       [●]                                                                               By:                                                                  Name: [●]                                      Title:  [●]                                                                              Witnessed by: ______________________________                                                                            Name:       [●]                                      Title:      [●]                                      Occupation: [●]                                      Address:    [●]                          Signature Page to Shareholders’ Agreement                                                                                          

 

                                                                                                  Signature Page to Shareholders’ Agreementexhibit102sharepurchasea

 FOIA CONFIDENTIAL TREATMENT HAS BEEN REQUESTED PURSUANT TO RULE 406    UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND RULE 24b-2 UNDER THE  SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, FOR INFORMATION CONTAINED                      IN THIS DOCUMENT INDICATED HEREIN                                                             EXECUTION VERSION                            SHARE PURCHASE AGREEMENT                                    by and among:                        WAL-MART INTERNATIONAL HOLDINGS, INC.,                                 a Delaware corporation;                     THE SHAREHOLDERS OF FLIPKART PRIVATE LIMITED                           THAT ARE IDENTIFIED ON SCHEDULE I;                                FORTIS ADVISORS LLC,                              as the Sellers’ Representative;                           and, for purposes of Section 10.18 only,                                   WALMART INC.,                                a Delaware corporation                                  Dated as of May 9, 2018  

 

                             TABLE OF CONTENTS                                                                            Page  1.    Description of Transaction ............................................................................................................... 2        1.1   Purchase and Sale of Purchased Shares .............................................................................. 2        1.2   Closing ................................................................................................................................ 3        1.3   Escrow Contribution ........................................................................................................... 3        1.4   Withholding ........................................................................................................................ 3        1.5   Allocation of Consideration ................................................................................................ 3        1.6   Further Action ..................................................................................................................... 4        1.7   Effect of Payments .............................................................................................................. 4  2.    Representations and Warranties of Each Seller ............................................................................... 4        2.1   Capacity and Authority ....................................................................................................... 4        2.2   Non-Contravention and Consents ....................................................................................... 5        2.3   Title and Ownership ............................................................................................................ 6        2.4   Tax Residency and Status ................................................................................................... 6        2.5   Compliance with Certain Legal Requirements ................................................................... 8        2.6   Insolvency ........................................................................................................................... 8        2.7   No Brokers’ Fees; Etc. ........................................................................................................ 8        2.8   Assets .................................................................................................................................. 8        2.9   Confidential Information .................................................................................................... 9        2.10  Sellers’ Representative ....................................................................................................... 9  3.    Representations and Warranties of Purchaser .................................................................................. 9        3.1   Valid Existence ................................................................................................................... 9        3.2   Authority and Due Execution ............................................................................................. 9        3.3   Non-Contravention ............................................................................................................. 9        3.4   Litigation ............................................................................................................................. 9        3.5   Financing .......................................................................................................................... 10        3.6   ************ ................................................................... ................................................10  4.    Certain Covenants of the Sellers .................................................................................................... 10        4.1   Notification ....................................................................................................................... 10        4.2   No Negotiation .................................................................................................................. 11        4.3   Repayment of Insider Receivables .................................................................................... 11        4.4   Sellers’ Consideration Spreadsheet ................................................................................... 11        4.5   Confidential Information .................................................................................................. 11        4.6   Waivers ............................................................................................................................. 13        4.7   Shareholder Consents ....................................................................................................... 13        4.8   Restrictions on Transfer .................................................................................................... 13        4.9   Withholding Tax Documentation ..................................................................................... 13        4.10  Post-Closing Indian Withholding Tax-Related Filings ..................................................... 13        4.11  Seller Indian Tax Matters.................................................................................................. 14        4.12  Series I Warrants ............................................................................................................... 14   Confidential Information has been omitted from this page and replaced by the asterisks appearing on this page.  Such  Confidential Information has been filed separately with the Securities and Exchange Commission.  Confidential  treatment has been requested with respect to this omitted information under Rule 406 under the Securities Act of 1933, as  amended, and Rule 24b-2 under the Securities Exchange Act of 1934, as amended.  

 

5.    Certain Covenants of the Parties .................................................................................................... 14         5.1   Filings and Consents. ........................................................................................................ 14        5.2   Public Announcements ..................................................................................................... 15        5.3   Reasonable Best Efforts .................................................................................................... 15   6.    Conditions Precedent to Obligations of Purchaser ........................................................................ 15         6.1   Accuracy of Representations ............................................................................................ 15        6.2   Performance of Covenants ................................................................................................ 16        6.3   Governmental and Other Consents; Expiration of Notice Periods. .................................. 16        6.4   No Material Adverse Effect .............................................................................................. 16        6.5   Agreements and Documents ............................................................................................. 17        6.6   No Restraints..................................................................................................................... 18        6.7   No Legal Proceedings ....................................................................................................... 19        6.8   Conversion Event .............................................................................................................. 19        6.9   Waivers ............................................................................................................................. 19        6.10  Share Issuance ................................................................................................................... 19   7.    Conditions Precedent to Obligation of the Sellers ......................................................................... 20         7.1   Accuracy of Representations ............................................................................................ 20        7.2   Performance of Covenants ................................................................................................ 20        7.3   Agreements and Documents ............................................................................................. 20        7.4   Governmental Approvals .................................................................................................. 20        7.5   No Restraints..................................................................................................................... 20   8.    Termination .................................................................................................................................... 21         8.1   Termination Events ........................................................................................................... 21        8.2   Termination Procedures .................................................................................................... 22        8.3   Effect of Termination ........................................................................................................ 22   9.    Indemnification .............................................................................................................................. 23         9.1   Survival of Representations, Warranties and Covenants .................................................. 23        9.2   Indemnification ................................................................................................................. 25        9.3   Limitations ........................................................................................................................ 28        9.4   No Contribution ................................................................................................................ 30        9.5   Defense of Third Party Claims ......................................................................................... 30        9.6   Indemnification Claim Procedure ..................................................................................... 31        9.7   Exclusive Remedy ............................................................................................................ 37        9.8   Exercise of Remedies Other Than by Purchaser ............................................................... 37        9.9   Recoveries ......................................................................................................................... 37   10.   Miscellaneous Provisions............................................................................................................... 38         10.1  Sellers’ Representative ..................................................................................................... 38        10.2  Further Assurances ........................................................................................................... 41  

 

                10.3  No Waiver Relating to Claims for Fraud .......................................................................... 42  10.4  Fees and Expenses. ........................................................................................................... 42  10.5  Attorneys’ Fees ................................................................................................................. 42  10.6  Notices .............................................................................................................................. 42  10.7  Headings ........................................................................................................................... 44  10.8  Counterparts and Exchanges by Electronic Transmission or Facsimile ........................... 44  10.9  Governing Law; Dispute Resolution. ............................................................................... 44  10.10 Successors and Assigns .................................................................................................... 45  10.11 Remedies Cumulative; Specific Performance................................................................... 45  10.12 Waiver ............................................................................................................................... 45  10.13 Waiver of Jury Trial .......................................................................................................... 46  10.14 Amendments ..................................................................................................................... 46  10.15 Severability ....................................................................................................................... 46  10.16 Parties in Interest .............................................................................................................. 46  10.17 Entire Agreement .............................................................................................................. 46  10.18 Performance of Purchaser Obligations ............................................................................. 46  10.19 Construction ...................................................................................................................... 48  10.20 Waiver of Conflict; Attorney-Client Privilege.................................................................. 48                                                                    ii  

 

                                Exhibits and Schedules   EXHIBIT A       Certain Definitions   EXHIBIT B       Form of Release Agreement*   EXHIBIT C       Form of New Shareholders’ Agreement**   Schedule I      Selling Shareholders*   Schedule 4.5(a)(i) Required Specified Seller Filing*    Schedule 4.9    Withholding Related Documents and Certifications*   Schedule 6.3(b) Required Consents*   Schedule 10     Indemnification Procedures for Withholding Tax Indemnity*   * Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. A copy of any  omitted schedule or exhibit will be furnished supplementally to the SEC upon request.   **Exhibit C is filed in identical form as part of Exhibit 10.1 to the Walmart Inc. Report on Form 10-Q for  the period ended July 31, 2018.                                              iii  

 

                           SHARE PURCHASE AGREEMENT         THIS SHARE PURCHASE AGREEMENT (this  “Agreement”) is  being  entered  into  as  of  May 9,  2018  (the  “Agreement  Date”),  by  and  among: WAL-MART INTERNATIONAL HOLDINGS, INC.,  a  Delaware  corporation (“Purchaser”);  those  shareholders  of FLIPKART PRIVATE LIMITED,  a  company  incorporated in Singapore with Company Registration Number 201129903N (the “Company”), that are  identified  on Schedule  I (collectively,  the  “Sellers”  and  each,  a  “Seller”); FORTIS ADVISORS LLC,  a  Delaware limited liability company (the  “Sellers’ Representative”); and, for purposes  of Section 10.18  only, WALMART INC.,  a  Delaware  Corporation  (“Parent”).  Certain  capitalized  terms  used  in  this  Agreement are defined in Exhibit A.                                       RECITALS         A.    Each Seller is the record owner of the Company Shares referred to opposite the name of  such Seller under the heading “Company Shares Owned as of Agreement Date” on Schedule I.          B.    Purchaser  desires  to  purchase  from  each  Seller,  and  each  Seller  desires  to  sell  to  Purchaser, the Company Shares referred to opposite the name of such Seller in Column D of Schedule I  (the  sale  and purchase  of  the  Purchased  Shares  pursuant  to  this  Agreement  being  referred  to  as  the  “Secondary Share Purchase”).          C.    As  an  inducement  for  Purchaser  to  enter  into  this  Agreement  and  to  consummate  the  Secondary Share Purchase and the other Contemplated Transactions, concurrently with the execution and  delivery of this Agreement, the Company is entering into a Share Issuance and Acquisition Agreement  with Purchaser and Parent (the “Share Issuance Agreement”), pursuant to which the Company will issue  Company  Ordinary  Shares  to  Purchaser  contemporaneously  with  the  Secondary  Share  Purchase  (the  issuance of such shares to Purchaser and the acquisition of such shares by Purchaser pursuant to the Share  Issuance Agreement being referred to as the “Share Issuance”).         D.    On April 18, 2018, the Company initiated a repurchase of Company Shares from certain  of its shareholders through selective off-market purchases pursuant to Section 76D of the Companies Act  of Singapore, which offer to repurchase expires on May 16, 2018 (the “Repurchase Transactions”).         E.    As  an  inducement  for  Purchaser  to  enter  into  this  Agreement  and  to  consummate  the  Secondary  Share  Purchase  and  the  other  Contemplated  Transactions:  (i)  the  requisite  holders  of  each  series of Company Preference Shares have delivered written consents electing to waive the treatment of  the Secondary Share Purchase and the Share Issuance as a Liquidation Event (as such term is defined in  the  Constitution of the  Company) in compliance with the  Constitution of the Company (the  waiver of  such  treatment,  the  “Liquidation  Event  Waiver”);  (ii)  the  requisite  holders  of  each  series  of  Company  Preference Shares have delivered written consents in favor of the conversion of such series of Company  Preference Shares into Company Ordinary Shares immediately after the Closing in compliance with the  Constitution of the Company (such conversion, the “Conversion Event”); and (iii) Sachin Bansal, Binny  Bansal and the Significant Investors (as such term is defined in the Constitution of the Company) have  executed and delivered to the  Company and  Purchaser written waivers  of any rights of first refusal or  other  rights  they  may  have  under  the  Constitution  of  the  Company  or  the  Existing  Shareholders’  Agreement in connection with the Secondary Share Purchase (each such waiver, a “ROFR Waiver”).          F.    As  an  inducement  for  Purchaser  to  enter  into  this  Agreement  and  to  consummate  the  Secondary  Share  Purchase  and  the  other  Contemplated  Transactions,  the  Company  and  the  requisite  holders of Company Shares have executed and delivered to Purchaser agreements terminating the Side      

 

   Letter, the Existing Registration Rights Agreement, the Existing Shareholders’ Agreement and each of the  Series Deeds effective as of the Closing.         G.    As  an  inducement  for  Purchaser  to  enter  into  this  Agreement  and  to  consummate  the  Secondary  Share  Purchase  and  the  other  Contemplated  Transactions,  each  Seller  has  delivered  to  Purchaser a duly completed Form E4A and Working Sheet E with respect to the Company Shares referred  to opposite the name of such Seller in Column D of Schedule I and each other document prescribed by the  Commissioner  of  Stamp  Duties  of  Singapore  for  the  purpose  of  assessing  the  stamp  duty  payable  in  connection with the Secondary Share Purchase.                                     AGREEMENT         The parties to this Agreement, intending to be legally bound, agree as follows:   1.    DESCRIPTION OF TRANSACTION         1.1   Purchase and Sale of Purchased Shares.               (a)   Purchase of Purchased Shares.  At the Closing, upon the terms and subject to the  conditions set forth in this Agreement, each Seller shall sell, assign, transfer and convey to Purchaser, and  Purchaser shall purchase from such Seller, the Company Shares referred to opposite the  name  of such  Seller  in  Column  D  of Schedule  I,  free  and  clear  of  all  Encumbrances  (except  those  imposed  under  applicable  securities  laws  and  the  New  Shareholders’  Agreement).   Notwithstanding  anything  to  the  contrary contained in this Section 1.1 or elsewhere in this Agreement, if (i) any representation or warranty  of  any  Seller  contained  in  this  Agreement  is  inaccurate  such  that  any  of  the  conditions  set  forth  in  Section 6.1 would not be satisfied with respect to such Seller as of the time scheduled for the Closing or  (ii) any covenant of any Seller contained in this Agreement has been breached such that the condition set  forth in Section 6.2 would not be satisfied with respect to such Seller as of the time scheduled for the  Closing, then Purchaser shall have the right (which may be exercised at any time prior to the Closing),  upon notice to the Sellers’ Representative and such Seller, to decline to purchase the Company Shares  referred  to  opposite  the  name  of  such  Seller  in  Column  D  of Schedule  I (such  right,  the  “Exclusion  Option”).  If Purchaser exercises the Exclusion Option with respect to any Seller, then (without limiting  any of the Liabilities of such Seller under Section 8.3): (A) all references in this Agreement to “Purchased  Shares” shall be deemed to exclude the Company Shares referred to opposite the name of such Seller in  Column D of Schedule I, (B) such Seller shall cease to have any rights under this Agreement and (C) such  Seller shall, to the extent specified by Purchaser, cease to be a “Seller” for purposes of this Agreement  and  such Seller’s  obligations  under this  Agreement (other than  obligations  under Section 8.3) shall be  deemed terminated.               (b)   Consideration  for  Purchased  Shares.  Subject  to Sections 1.3, 1.4 and 9,  the  consideration payable  by  Purchaser  for each  Purchased  Share  shall  be  an  amount in cash  equal to the  product of: (i) the  Price Per Secondary Share; multiplied  by (ii) the  Conversion Factor with respect to  such Purchased Share. A portion of the consideration payable for the Purchased Shares shall be delivered to  Citibank, N.A. or another bank or trust company selected by Purchaser with the consent of the Sellers’  Representative (which consent shall not be unreasonably withheld, conditioned or delayed) (such bank or  trust company, “Escrow Agent”) pursuant to Section 1.3; a portion of the consideration payable for the  Purchased Shares shall be delivered to the Sellers’ Representative pursuant to Section 10.1(e); and the  remainder  of  such  consideration  shall  be  paid  to  the  Disbursing  Agent  for  further  distribution  to  the  Sellers at the Closing.                                           2  

 

         1.2   Closing.  The consummation of the Secondary Share Purchase (the “Closing”) shall take  place at the offices of Hogan Lovells US LLP, 4085 Campbell Avenue, Suite 100, Menlo Park, California  94025 (or,  at  Purchaser’s  election,  by  means  of  a  virtual  closing  through  electronic  exchange  of  signatures), at 10:00 a.m. (Central time) on a date to be designated by Purchaser, which shall be no later  than the third Business Day after the satisfaction or waiver of the last to be satisfied or waived of the  conditions set forth in Sections 6 and 7 (other than the conditions set forth in Sections 6.5 and 7.3, which  are to be satisfied at the Closing, but subject to the satisfaction or waiver of those conditions), or at such  other place, time or date as Purchaser and the Sellers’ Representative may jointly designate. The date on  which the Closing actually takes place is referred to in this Agreement as the “Closing Date.”         1.3   Escrow  Contribution.   At  or  promptly  after  the  Closing, Purchaser  shall  cause  to  be  delivered to the Escrow Agent in cash as a contribution to the Escrow Fund on behalf of each Seller, an  amount equal to such Seller’s Pro Rata Portion of the Escrow Amount.  The Escrow Fund: (a) shall be  held by the Escrow Agent in accordance with the terms of this Agreement and the terms of the Escrow  Agreement; (b) except as otherwise provided by any Legal Requirement, shall be held as a trust fund and  shall not be subject to any lien, attachment, trustee process or other judicial process of any creditor of any  Person; and (c) shall be held and disbursed solely for the purposes and in accordance with the terms of  this Agreement and the Escrow Agreement. Neither the Escrow Fund (or any portion thereof) nor any  beneficial interest therein may be pledged, subjected to any Encumbrance, sold, assigned or transferred by  any Seller.  The parties hereto agree that Purchaser is the owner of any cash in the Escrow Fund for U.S.  Tax purposes, and that all interest on or other taxable income, if any, earned from the investment of such  cash pursuant to this Agreement shall be treated for U.S. Tax purposes as earned by Purchaser and that  the Escrow Fund shall be treated as an installment obligation for purposes of Section 453 of the Code.         1.4   Withholding.   Notwithstanding  anything  to  the  contrary  contained  in  this  Agreement,  Purchaser, Purchaser’s Affiliates, the Escrow Agent and the Disbursing Agent shall be entitled to deduct  and withhold or cause to be deducted and withheld from any amount payable pursuant to this Agreement  the amount set forth with respect to such payment on the Sellers’ Tax Withholding Spreadsheet; provided,  however, that if (a) any event, condition, fact or circumstance occurs, arises or exists after the Agreement  Date that would cause or constitute a breach of or an inaccuracy in any representation or warranty made  by any Seller contained in Section 2.4 relating to Tax withholding if such representation or warranty were  made  as  of  the  time  of  the  occurrence,  existence  or  discovery  of  such  event,  condition,  fact  or  circumstance, (b) any representation or warranty of any Seller contained in Section 2.4 relating to Tax  withholding is  inaccurate as  of  the  time  scheduled  for  the  Closing, (c)  any  Seller  breaches  any  of  its  covenants  or  obligations  contained  in Section 4.9 or  (d)  Purchaser  discovers  evidence  that  any  of  the  documents  or  certifications  delivered  by  any  Seller  to  Purchaser pursuant to Section 4.9 is  inaccurate,  then Purchaser, Purchaser’s Affiliates, the Escrow Agent and the Disbursing Agent shall be entitled to  deduct  and  withhold  or  cause  to  be  deducted  and  withheld  from  any  amount  payable  to  such  Seller  pursuant to this Agreement such amount with respect to taxable income of such Seller as Purchaser or any  of Purchaser’s Affiliates determines in good faith is required to be deducted or withheld therefrom or in  connection therewith under the IT Act or any other applicable Legal Requirement. To the extent any such  amount that is so deducted or withheld and remitted to the appropriate Taxing Authority, such remitted  amount shall be treated for all purposes under this Agreement as having been paid to the Person to whom  such amount would otherwise have been paid. Purchaser shall, or shall cause the Escrow Agent and/or the  Disbursing  Agent  to,  deliver  a  notice,  which,  to  the  extent  applicable,  shall  be  a  Form  16A  (TDS  Certificate), to the affected Person of the amount so deducted, withheld and remitted.          1.5   Allocation of Consideration.  Each Seller hereby acknowledges and agrees that: (a) the  payment  by  or  on  behalf  of  Purchaser  to  the  Escrow  Agent  of  such  Seller’s  Pro  Rata  Portion  of  the  Escrow Amount, the payment by or on behalf of Purchaser to the Sellers’ Representative of such Seller’s  Pro Rata Portion of the Expense Fund Amount and the payment by the Disbursing Agent to such Seller of                                          3  

 

   the amounts identified in the Sellers’ Consideration Spreadsheet as being owed to such Seller pursuant to  Section 1.1(b) shall constitute payment in full of all amounts owed by Purchaser pursuant to, and shall  fully  satisfy  and  extinguish  all  obligations  and  other  Liabilities  owed  to  such  Seller  under,  this  Agreement;  and  (b)  none  of  Purchaser,  the  Company  or  any  of  their  respective  Affiliates  shall  be  responsible or liable for any error made by the Escrow Agent or the Sellers’ Representative or contained  in the Sellers’ Consideration Spreadsheet.  Each Seller hereby waives any and all rights such Seller might  otherwise have to assert a claim or initiate any Legal Proceeding against Purchaser, the Company or any  of their respective Affiliates or Representatives in the event of any dispute about how any of the amounts  referred to in this Section 1.5 should be, or should have been, allocated or distributed among the various  Sellers.         1.6   Further Action.  If, at any time after the Closing, any further action (of a type that is  routine and customarily provided for or contemplated in connection with transactions similar in nature to  the Contemplated Transactions) is necessary to carry out the intent and purposes of this Agreement or any  of the Contemplated Transactions or to vest Purchaser with full right, title and possession of and to all  Purchased  Shares,  each  Seller  shall  execute  and  deliver,  or  cause  to  be  executed  and  delivered,  such  additional  transfers,  assignments,  endorsements,  Consents  and  other  instruments,  and  shall  take  such  further actions, as Purchaser may reasonably request (provided that no such documents or actions shall be  deemed to increase the obligations or decrease the rights of the Sellers under this Agreement).         1.7   Effect  of  Payments.  To  the  extent  permitted  by  applicable  Legal  Requirements,  payments made to Purchaser or any other Indemnitee pursuant to this Agreement (including pursuant to  Section 9) shall be treated by all parties as adjustments to the purchase price paid by Purchaser pursuant  to this Agreement.    2.    REPRESENTATIONS AND WARRANTIES OF EACH SELLER           Each Seller, on such Seller’s own behalf and not on behalf of any other Seller, represents and  warrants,  to  and  for  the  benefit  of  Purchaser  and  the  other  Indemnitees  (with  the  understanding  and  acknowledgement  that  Purchaser  would  not  have  entered  into  this  Agreement  without  being  provided  with the representations and warranties set forth in this Section 2 and that Purchaser is relying on these  representations  and  warranties  along  with  the  representations  and  warranties  provided  in  the  Share  Issuance Agreement, and with the further understanding that Purchaser and the other Indemnitees have  indemnification and other rights with respect to breaches of or inaccuracies in these representations and  warranties as set forth in this Agreement and in the Share Issuance Agreement), as follows:          2.1   Capacity and Authority.               (a)   Authority,  etc.   Such  Seller  has  all  requisite  power,  authority  and  capacity  to  enter into this Agreement and each Transaction Document to which such Seller is or will become a party  and to consummate the Contemplated Transactions. If such Seller is a natural person, no spousal signature  or other Consent is required  from any other Person with respect to such  Seller in connection with the  execution,  delivery  or  performance  of  this  Agreement  or  any  of  the  other  Transaction  Documents  to  which he or she is or will become a party. If such Seller is an Entity: (i) such Seller is duly organized and  validly existing and in good standing (to the extent that the Legal Requirements of the jurisdiction of its  formation recognize the concept of good standing) under the Legal Requirements of the jurisdiction of its  formation; and (ii) the execution, delivery and performance of this Agreement and the other Transaction  Documents to which such Seller is or will become a party, and the consummation of the Contemplated  Transactions by such Seller, have been duly authorized by all necessary corporate, partnership or similar  Entity governance action on the part of such Seller and its board of directors (or, if such Seller does not  have a board of directors, by all necessary action on the part of its manager, general partner or equivalent                                          4  

 

   body), and no other corporate, partnership or similar Entity governance proceedings on the part of such  Seller are necessary to authorize the execution, delivery or performance of this Agreement or any such  other Transaction Document or the consummation of any of the Contemplated Transactions.               (b)   Due  Execution  and  Enforceability.   This  Agreement  has  been,  and  each  other  Transaction Document to which such Seller is or will become a party has been or will be, duly executed  and delivered by such Seller and, assuming due execution and delivery by the other parties hereto and  thereto, constitutes or will constitute the legal, valid and binding obligation of such Seller, enforceable  against such Seller in accordance with its terms, subject only to the Enforceability Exception.               (c)   Access  to  Information  Concerning  the  Acquired  Companies.  Such  Seller  is  familiar with the business, financial condition, operations and prospects of the Acquired Companies and  has had full access to and been provided with such information concerning the Acquired Companies as  such  Seller  deems  necessary  to  enable  it  to  make  an  informed  decision  concerning  the  sale  of  the  Purchased  Shares  being  sold  by  such  Seller  to  Purchaser  pursuant  to  this  Agreement.  Such  Seller  has  carefully  reviewed  the  terms  of  the  Share  Issuance  Agreement,  including  the  representations  and  warranties of the Company contained in the Share Issuance Agreement, and the information contained in  the  Company  Disclosure  Schedule.  Without  limiting  the  generality  of  the  foregoing,  such  Seller  has  carefully reviewed the Information Statement (as such term is defined in the Share Issuance Agreement)  made available by the Company to the Sellers.         2.2   Non-Contravention and Consents.               (a)   Non-Contravention.  The execution and delivery of this Agreement and the other  Transaction Documents does not, and the consummation of the Secondary Share Purchase and the other  Contemplated Transactions and the performance of this Agreement and the other Transaction Documents  will  not:  (i)  if  such  Seller  is  an  Entity,  conflict  with  or  violate  any  of  its  Charter  Documents,  or  any  resolution adopted by its shareholders (or other holders of voting securities or equity interests), board of  directors (or other similar body) or any committee of the board of directors (or other similar body) of such  Seller; (ii) conflict with or violate any Legal Requirement to which such Seller is subject in any material  respect;  or (iii)  result  in  any  material  breach  of  or  constitute  a  material  default  (or  an  event that  with  notice or lapse of time or both would become a material default) under, or result in the creation of an  Encumbrance  on  any  issued  and  outstanding  Company  Shares  held  by  such  Seller  pursuant  to,  any  Contract to which such Seller is a party or by which it is bound.               (b)   Contractual Consents.  No Consent under any Contract to which such Seller is a  party  or  by  which  it  is  bound  is  required  to  be  obtained  from,  and  such  Seller  is  not  and  will  not  be  required to give any notice to, any Person in connection with the execution, delivery or performance of  this  Agreement  or  any  other  Transaction  Document  or  the  consummation  of  the  Secondary  Share  Purchase or any of the other Contemplated Transactions, other than the approval of the Company’s board  of directors under the Existing Shareholders’ Agreement (which has been obtained prior to the execution  and delivery of this Agreement). For purposes of this Section 2.2(b) and Sections 2.2(c), 5.1(a), 5.1(c),  6.3 and 7.4, a Consent will be deemed “required” to be obtained, a notice will be deemed “required” to be  given, and a filing will be deemed “required” to be made if the failure to obtain such Consent, give such  notice or make such filing could: (i) result in any Company Share held by such Seller becoming subject to  any  Encumbrance;  (ii)  impair,  hinder  or  delay  such  Seller’s  ability  to  perform  any  of  such  Seller’s  obligations under this Agreement or any other Transaction Document; or (iii) have an adverse effect on  Purchaser or any Acquired Company.               (c)   Governmental Consents.  No Consent of any Governmental Entity is required to  be obtained, and no filing (other than the filing by the Specified Seller described in Schedule 4.5(a)(i)) is                                          5  

 

   required  to  be  made  with  any  Governmental  Entity,  by  such  Seller  in  connection  with  the  execution,  delivery or performance of this Agreement or any other Transaction Document or the consummation of  the Secondary Share Purchase or any of the other Contemplated Transactions, other than the approval of  the Reserve Bank of India (if required) in connection with the contribution by the Identified Sellers of  funds  to  the  Escrow  Fund  pursuant  to Section 1.3 and  the  payment  by  the  Identified  Sellers  of  indemnification claims pursuant to Section 9.               (d)   Litigation.  There is no Legal Proceeding pending, or, to the Knowledge of such  Seller,  that has  been  threatened against  such  Seller: (i) that  challenges,  or  that may  have  the  effect  of  preventing,  delaying,  making  illegal  or  otherwise  interfering  with,  the  entry  into,  performance  of,  compliance  with or enforcement of any of the  obligations  of such Seller under this  Agreement or any  other Transaction Document; (ii) that relates to the ownership or alleged ownership by such Seller of any  Company Shares or other securities of the Company; (iii) that relates to any Taxes owed or alleged to be  owed by  such  Seller  in  connection  with  the  ownership  or  alleged  ownership  by  such  Seller  of  any  Company Shares or other securities of the Company; or (iv) that relates to any right or alleged right of  such Seller to receive any consideration as a result of or in connection with the execution, delivery or  performance  of  this  Agreement  or  any  other  Transaction  Document  or  the  consummation  of  the  Secondary Share Purchase or any of the other Contemplated Transactions.          2.3   Title  and  Ownership.   Such  Seller:  (a)  is  the record  and  beneficial  owner  of  all  Company Shares referred to opposite the name of such Seller in Column B of Schedule I; (b) has good,  valid  and  marketable  title  to  such  Company  Shares,  free  and  clear  of  all  Encumbrances  (except  those  imposed under applicable securities laws and the Existing Shareholders’ Agreement); (c) will have, and  will convey to Purchaser at the Closing, good, valid and marketable title to the Company Shares referred  to  opposite  the  name  of  such  Seller  in  Column  D  of Schedule  I,  free and  clear  of  all  Encumbrances  (except those imposed under applicable securities laws and the New Shareholders’ Agreement); (d) is not  a party to or bound by any option, warrant, purchase right or other Contract (other than this Agreement  and  the  Existing Shareholders’ Agreement) that could require  such  Seller to sell, transfer or otherwise  dispose  of  any  Company  Shares; (e)  is  not  a  party  to  any  voting  trust,  proxy  or  other  agreement  or  understanding with respect to the voting of any Company Shares (other than the Existing Shareholders’  Agreement); and (f) except for Company Shares referred to opposite the name of such Seller in Column B  of Schedule  I and  the  Series  I  Warrants  referred  to opposite  the  name  of  such  Seller  in  Column  C  of  Schedule  I, does not own any equity securities of any Acquired  Company or any right to acquire  any  equity securities of any Acquired Company.         2.4   Tax Residency and Status.               (a)   If such Seller is not a tax resident of India, then: (i) such Seller is not, and will  not be, a tax resident of India under Section 6 of the IT Act during the Indian Tax Year in which the  Closing  occurs;  (ii)  such  Seller  has  not  received  any  written  notice  or  other  communication from  any  Taxing  Authority  alleging  that  such  Seller  should  be  classified  as  having  a business  connection  or  a  permanent establishment in India; (iii) such Seller’s Company Shares are and have always been held as a  “capital asset” and not as “stock in trade;” (iv) if such Seller’s place of effective management, within the  meaning  of  Section 6  of  the  IT  Act  (such  Seller’s  “POEM”),  is  determinative  of  such  Seller’s  tax  residency,  then  such  Seller’s  POEM  is  outside  of  India  for  the  entire  Indian  Tax  Year  in  which  the  Closing occurs; and (v) the information, documents and certifications that have been or will be delivered  by such Seller to Purchaser pursuant to Section 4.9 will be accurate and complete.               (b)   If such Seller is not a tax resident of India and claims (or will claim) the benefit  of any DTAA with respect to any Tax liability in India on the sale of any Purchased Shares to Purchaser  pursuant to this Agreement: (i) such Seller is a tax resident of the country party to such DTAA; (ii) such                                          6  

 

   Seller holds a tax residence certificate issued to it by the relevant Government Entity of such country that  covers the period beginning April 1 of the Indian Tax Year in which the Closing occurs and includes the  Closing Date and will continue to hold such tax residence certificate covering the TRC Residual Period  (or if such tax residence certificate does not cover the entire TRC Residual Period, such Seller will have  obtained  a  new  tax  residence  certificate  that  covers  the  entire  TRC  Residual  Period  pursuant  to,  and  within the time specified under, Section 4.10); (iii) such Seller qualifies for the exemption from Tax in  India under the provisions of such DTAA and under the provisions of the IT Act (including Chapter X-A  of the IT Act, to the extent applicable) with respect to the sale of such Purchased Shares to Purchaser; (iv)  such  Seller  is  not  required  to  pay  any  Tax  on  or  in  respect  of  the  amounts  identified  in  the  Sellers’  Consideration  Spreadsheet  as  owed  to  such  Seller  for  the  Purchased  Shares  held  by  such  Seller  and  Purchaser  is not  required  to  withhold  any  Tax  with  respect  to  such  amounts;  (v)  all  documents,  representations and information furnished by such Seller for the purpose of obtaining an opinion from a  Big  Four  Accounting  Firm  in  accordance  with Section 4.9 and  all  documents,  representations  and  information delivered by such Seller to Purchaser pursuant to Section 4.9 will be accurate and complete;  (vi) such Seller is and has always been the legal and beneficial owner of the Company Shares held by  such Seller and is entitled to and has always exercised all ownership rights in respect of such Company  Shares; (vii) the payment of the consideration for the acquisition by such Seller of the Company Shares  held by such Seller was made from such Seller’s bank account in the country where such Seller is a tax  resident; and (viii) the  payment of the  amounts  identified  in the  Sellers’ Consideration Spreadsheet as  owed  to  such  Seller  for the  Purchased  Shares  held  by  such  Seller will  be  ultimately  received  by  such  Seller in the bank account of such Seller in the country where such Seller is a tax resident.               (c)   If such Seller is not a tax resident of India and is a Small Shareholder, then: (i)  during any time during the 12 months prior to the Closing Date, such Seller (individually or together with  any of its Associated Enterprises (as such term is defined in Section 92A of the IT Act)) has not held,  directly or indirectly: (A) the right of management or control in terms of Explanation 7 to Section 9(1)(i)  of  the  IT  Act  with  respect  to  any  Acquired  Company  or  (B)  voting  power,  share  capital  or  interests  exceeding 5% of the total voting power, total share capital or total interests of any Acquired Company,  determined  in  accordance  with  Explanation  7  to  Section  9(1)(i)  of  the  IT  Act;  (ii)  such  Seller  is  not  required to pay any Tax under the IT Act on or in respect of any of the amounts identified in the Sellers’  Consideration  Spreadsheet  as  owed  to  such  Seller  for  the  Purchased  Shares  held by  such  Seller  and  Purchaser is not required to withhold any Tax with respect to any of such amounts; (iii) such Seller is not  required to pay any Tax under the IT Act on the sale of the Purchased Shares held by such Seller under  Explanation 7 to Section 9(1)(i) of the IT Act; and (iv) the documents and certifications that have been or  will be delivered by such Seller to Purchaser pursuant to Section 4.9 will be accurate and complete.               (d)   If such Seller is a tax resident of India, then: (i) such Seller is and will be a tax  resident of India under Section 6 of the IT Act for the entire Indian Tax Year in which the Closing occurs  and the information, documents and certifications that have been or will be delivered by such Seller to  Purchaser pursuant to Section 4.9 will be accurate and complete; (ii) Purchaser is not required to withhold  any Tax on or in respect of the amounts identified in the Sellers’ Consideration Spreadsheet as owed to  such Seller for the Purchased Shares held by such Seller; and (iii) such Seller is not a foreign company as  defined under Section 2(23A) of the IT Act.               (e)   No  Legal  Proceeding  is  pending  against,  and  no  Taxing  Authority  or  other  Governmental Entity has asserted that any Tax is owed by, such Seller under, or in connection with any  failure  to  comply  with,  any  of  the  provisions  of  the  IT  Act.  No  event  has  occurred  (including  any  assertion by any Taxing Authority that any Tax is owed by such Seller), and no condition or circumstance  exists, that will or would reasonably be expected to result in the sale to Purchaser of the Purchased Shares  sold by such Seller to be declared void or otherwise impeded pursuant to Section 281 of the IT Act.                                          7  

 

         2.5   Compliance  with  Certain  Legal  Requirements.  Neither  such  Seller,  nor  any  other  Person  acting  on  its  behalf,  has  taken  any  action  that  would  cause  any  Acquired  Company  to  be  in  violation  of:  (a)  any  Anti-Corruption  Law,  including  any  action  in  furtherance  of  a  payment,  offer,  promise to pay, or authorization or ratification of a payment of any gift, money or anything of value to (i)  a Government Official or (ii) any Person while knowing or having reasonable grounds to believe that all  or a  portion of that payment will be  passed on to a Government Official or other Person, to obtain or  retain  business  or  to  secure  an  improper  advantage  in  violation  of  any  Anti-Corruption  Law; (b)  any  applicable  anti-money  laundering  Legal  Requirement  or  anti-money  laundering-related  government  guidance  (such  Legal  Requirements  and  government  guidance  being  collectively  referred  to  as  “AML  Laws”), including any AML Law of the Republic of India or any other jurisdiction where the nature of  such Acquired Company’s business or operations or the ownership of its assets requires such compliance;  (c) any applicable Legal Requirement regulating exports, imports or re-exports to or from any country,  including the export or re-export of goods, services or technical data from such country, or imposing trade  embargoes  or  economic  sanctions  against  other  countries  or  Persons  (such  Legal  Requirements  being  collectively referred to as “Export Controls”). Such Seller is not aware of any investigation (or threatened  investigation) of, or request for information from, any Acquired Company by any Governmental Entity  regarding a violation or potential violation of any Anti-Corruption Law, AML Law or Export Control.  Such Seller has not received notice of and is not otherwise aware of any allegation related to a violation  or  potential  violation of  any  Anti-Corruption  Law,  AML  Law  or  Export  Control  committed  by  any  Acquired Company, and such Seller does not have any information regarding any payment made by any  Person in violation of any Anti-Corruption Law, AML Law or Export Control on behalf of or for the  benefit of any Acquired Company. No Government Official or Governmental Entity owns or will receive  an  interest,  whether  direct  or  indirect,  legal  or  beneficial,  in  any  Acquired  Company  or  any  of  its  Affiliates  or  has  or  will  receive  any  legal or  beneficial  interest  not  mandated  by  applicable  Legal  Requirements in any payment made to such Seller pursuant to this Agreement (other than distributions of  the  consideration  paid  by  Purchaser  for  Purchased  Shares  pursuant  to Section 1.1(b) to  Government  Officials or Governmental Entities who are limited partners of, or investors in, any Seller that is a venture  capital investor, private equity investor or similar professional investor).          2.6   Insolvency.   No  insolvency  proceeding,  whether  in  or  out  of  court,  including  any  proceeding  or  action  leading  to  any  form  of  bankruptcy,  liquidation,  administration,  receivership,  arrangement  or  scheme  with  creditors,  moratorium,  stay  or  limitation  of  creditors’ rights,  interim  or  provisional  supervision  by  a  court  or  court  appointee,  winding-up  or  striking-off,  or  any  distress,  execution or other process levied, has been commenced or, to the Knowledge of such Seller, threatened in  writing with respect to such Seller.         2.7   No  Brokers’  Fees;  Etc..  No  broker,  finder  or  investment  banker  is  entitled  to  any  brokerage, finder’s or other fee or commission in connection with any of the Contemplated Transactions  for which any Acquired Company is or will be liable based upon arrangements made by or on behalf of  such Seller. None of the Acquired Companies has borne or will be required to pay for any Expense of  such  Seller  for  the  services  of  outside  legal  counsel  or  any  financial  advisor,  investment  banker,  consultant, accountant or other Person who performed services for or on behalf of, or provided advice to,  such  Seller  or any  Representative  of such  Seller,  or  who is  otherwise  entitled  to  any  compensation  or  payment from such Seller, in connection with or relating to this Agreement or any of the Contemplated  Transactions or the process resulting in such transactions.         2.8   Assets.  Such Seller does not hold or own, and none of such Seller’s Affiliates holds or  owns,  any  right  or  other  asset  that  is  being  used  in,  or  is  necessary  to,  the  business of  any  Acquired  Company.  For clarity, the foregoing representation is not intended to address the ownership by any Seller  or  its  Affiliates  of  equity  or  debt  securities  of  any  Entity  that  provides  products  or  services  to  the  Acquired Companies.                                          8  

 

         2.9   Confidential Information.  Such Seller has never disclosed to a Person that is not either  an Affiliate of such Seller or an Affiliate of an Acquired Company, or used for personal purposes or any  other purpose unrelated to the  business  of an  Acquired  Company, any  Confidential Information (other  than  (i)  the  disclosure  of  Transaction-Related  Confidential  Information  to  its  legal,  tax,  accounting  or  other professional advisors in connection with its consideration of the Contemplated Transactions (to the  extent  reasonably  necessary  for  such  advisors  to  perform  their  paid  legal,  accounting,  tax  or  financial  services for such Seller) who have agreed in writing, for the benefit of the Company and Purchaser, to  maintain  the  confidentiality  of  such  information  and  not  to  use such  information  for  any  improper  purpose, or who are and have always been subject to a professional or ethical duty of confidentiality with  respect  to  such  Transaction-Related  Confidential  Information,  (ii)  the  use  of  Permitted  Residual  Information in compliance with Section 4.5 or (iii) after the Agreement Date, any disclosure or use of  Confidential Information that is permitted under Section 4.5).         2.10  Sellers’ Representative.  The Sellers’ Representative has the absolute and unrestricted  right, power and authority to enter into and to perform its obligations under this Agreement and to act for  and bind such Seller with respect to all matters relating to this Agreement, all matters relating to each  other Transaction Document and all matters relating to the Contemplated Transactions.   3.    REPRESENTATIONS AND WARRANTIES OF PURCHASER           Purchaser represents and warrants to the Sellers as follows:         3.1   Valid Existence.  Purchaser is a corporation validly existing under the laws of Delaware.          3.2   Authority and Due Execution.                 (a)   Authority.   Purchaser  has  all  requisite  power  and  authority  to  enter  into  this  Agreement  and  any  other  Transaction  Document  to  which  it  is  a  party  and  to  consummate  the  Contemplated Transactions to which it is a party. The execution, delivery and performance by Purchaser  of  this  Agreement  and  the  other  Transaction  Documents  to  which  Purchaser  is  a  party  and  the  consummation  by  Purchaser  of  the  Contemplated  Transactions  to  which  it  is  a  party  have  been  duly  authorized  by  all  necessary  action  on  the  part  of  Purchaser  and  no  other  proceedings  on  the  part  of  Purchaser are necessary to authorize the execution, delivery or performance of this Agreement and such  other  Transaction  Documents  by  Purchaser  or  for  Purchaser  to  consummate  any  of  the  Contemplated  Transactions to which it is a party.               (b)   Due Execution.  This Agreement has been, and, upon execution and delivery by  all other parties thereto, each other Transaction Document to which  Purchaser is  a  party will be,  duly  executed and delivered by Purchaser and constitutes, or upon execution and delivery will constitute, the  legal,  valid  and  binding  obligation  of  Purchaser  enforceable  against  Purchaser  in  accordance  with  its  terms, subject only to the Enforceability Exception.         3.3   Non-Contravention.  The execution and delivery by Purchaser of this  Agreement and  each  other  Transaction  Document  to  which  Purchaser  is  a  party  does  not,  and  the  consummation  by  Purchaser of the Secondary Share Purchase or the other Contemplated Transactions to which it is a party  will not: (a) conflict with or violate Purchaser’s Charter Documents; (b) conflict with or violate any Legal  Requirement to which Purchaser is subject; or (c) conflict with or violate any Contract to which Purchaser  is a party or by which it is bound.          3.4   Litigation.  As of the Agreement Date, there is no Legal Proceeding pending or, to the  Knowledge  of  Purchaser,  threatened  against  Purchaser  that  challenges,  or  that  will  have  the  effect  of                                          9  

 

   preventing,  delaying,  making  illegal  or  otherwise  interfering  with,  Purchaser’s  acquisition  of  the  Purchased Shares.        3.5   Financing.  At the Closing, Purchaser will have, or will have access to, sufficient funds  to permit Purchaser to consummate the acquisition of the Purchased Shares, including the payment in full  of the amounts payable by Purchaser pursuant to Section 1.1(b) at the Closing.        3.6   **********************.  In  entering  into  this  Agreement,  Purchaser  ************************************************************************************* ************************************************************************************* ************************************************************************************.   4.    CERTAIN COVENANTS OF THE SELLERS        4.1   Notification.                 (a)  Notification  by  the  Sellers.   During  the  Pre-Closing  Period,  each  Seller  shall  promptly notify Purchaser in writing of: (i) the discovery by such Seller of any event, condition, fact or  circumstance that occurred or existed on or before the Agreement Date and that caused or constitutes a  breach of or an inaccuracy in any representation or warranty made by such Seller in this Agreement such  that the condition in Section 6.1 would not be satisfied; (ii) any event, condition, fact or circumstance that  occurs, arises or exists after the Agreement Date and that would cause or constitute a material breach of  or an inaccuracy in any representation or warranty made by such Seller in this Agreement if (A) such  representation or warranty had been made as of the time of the occurrence, existence or discovery of such  event, condition, fact or circumstance  or (B) such event, condition, fact or circumstance had occurred,  arisen or existed on or before the Agreement Date, such that the condition in Section 6.1 would not be  satisfied; (iii) the commencement of or, to the Knowledge of such Seller, any threat to commence, any  Legal Proceeding that challenges or that, if adversely determined, would reasonably be expected to have  the effect of preventing, materially delaying, making illegal or otherwise interfering with the Secondary  Share Purchase or any of the other Contemplated Transactions involving such Seller; (iv) any material  breach of any covenant or obligation of such Seller such that the condition in Section 6.2 would not be  satisfied; and (v) any event, condition, fact or circumstance that would make the timely satisfaction of any  of the conditions set forth in Section 6 impossible or unlikely. No such notification shall be deemed to  limit  or  otherwise  affect  any  of  the  representations,  warranties,  covenants  or  obligations  of  any  Seller  contained in this  Agreement, including  for the  purpose  of:  (1) determining  the  accuracy  of  any  of the  representations and warranties made by the Sellers in this Agreement; or (2) determining whether any of  the conditions set forth in Section 6 has been satisfied. Any innocent and unintentional failure by a Seller  to give notice under clause “(i)” or “(ii)” of this Section 4.1(a) shall not be deemed to be a breach of the  covenant contained in clause “(i)” or “(ii)” of this Section 4.1(a), but instead shall constitute only a breach  of the underlying representation or warranty made by such Seller in this Agreement.              (b)   Notification  by  Purchaser.   During  the  Pre-Closing  Period,  Purchaser  shall  promptly  notify  the  Sellers’  Representative  in  writing  of: (i) the  discovery  by  Purchaser  of any  event,  condition, fact or circumstance that occurred or existed on or before the Agreement Date and that caused  or constitutes a breach of or an inaccuracy in any representation or warranty made by Purchaser in this  Agreement such that the condition in Section 7.1 would not be satisfied; (ii) any event, condition, fact or  circumstance that occurs, arises or exists after the Agreement Date and that would cause or constitute a  material  breach  of  or  an  inaccuracy  in  any  representation  or  warranty  made  by  Purchaser  in  this  Agreement  if  (A) such  representation  or  warranty  had  been  made  as  of  the  time  of  the  occurrence,    Confidential Information has been omitted from this page and replaced by the asterisks appearing on this page.  Such  Confidential  Information  has  been  filed  separately  with  the  Securities  and  Exchange  Commission.   Confidential  treatment has been requested with respect to this omitted information under Rule 406 under the Securities Act of 1933, as  amended, and Rule 24b-2 under the Securities Exchange Act of 1934, as amended.                                          10  

 

existence or discovery of such event, condition, fact or circumstance or (B) such event, condition, fact or  circumstance had occurred, arisen or existed on or before the Agreement Date, such that the condition in  Section 7.1 would not be satisfied; (iii) the commencement of or, to the Knowledge of Purchaser, any  threat  to  commence,  any  Legal  Proceeding  that  challenges  or  that,  if  adversely  determined,  would  reasonably be expected to have the effect of preventing, materially delaying, making illegal or otherwise  interfering with the Secondary Share Purchase or any of the other Contemplated Transactions involving  Purchaser; (iv) any material breach of any covenant or obligation of Purchaser such that the condition in  Section 7.2 would not be satisfied; and (v) any event, condition, fact or circumstance that would make the  timely  satisfaction  of  any  of  the  conditions  set  forth  in Section 7 impossible  or  unlikely. No  such  notification shall be deemed to limit or otherwise affect any of the representations, warranties, covenants  or obligations of Purchaser contained in this Agreement, including for the purpose of: (1) determining the  accuracy  of  any  of  the  representations  and  warranties  made  by  Purchaser  in  this  Agreement;  or  (2)  determining whether any of the  conditions  set forth in Section 7 has  been  satisfied. Any innocent and  unintentional failure by Purchaser to give notice under clause “(i)” or “(ii)” of this Section 4.1(b) shall not  be deemed to be a breach of the covenant contained in clause “(i)” or “(ii)” of this Section 4.1(b), but  instead shall constitute only a breach of the underlying representation or warranty made by Purchaser in  this Agreement.        4.2   No Negotiation.  During the  Pre-Closing Period, no Seller shall, and each  Seller shall  ensure  that  no  Representative  of  such  Seller  shall:   (a)  solicit,  knowingly  encourage  or  facilitate  the  initiation or submission of any expression of interest, inquiry, proposal or offer from any Person (other  than  Purchaser)  relating  to a  possible  Acquisition  Transaction;  (b)  participate  in  any  discussions  or  negotiations or enter into any agreement, understanding or arrangement with, or provide any non-public  information to, any Person (other than Purchaser or its Representatives) relating to or in connection with a  possible Acquisition Transaction; or (c) entertain or accept any proposal or offer from any Person (other  than  Purchaser)  relating  to  a  possible  Acquisition Transaction.  Each  Seller shall  promptly  (and  in  any  event within 24 hours after receipt thereof) give Purchaser notice orally and in writing of any inquiry,  indication  of  interest,  proposal,  offer  or  request  for  non-public  information  relating  to  a  possible  Acquisition Transaction that is received by such Seller or any Representative of such Seller during the  Pre-Closing Period. Such notice shall include (i) the identity of the  Person  making or submitting such  inquiry, indication of interest, proposal, offer or request, and the terms and conditions thereof, and (ii) an  accurate  and  complete  copy  of  (A)  all  written  materials  provided  in  connection  with  such  inquiry,  indication of interest, proposal, offer or request and (B) a summary of all oral communications provided  in connection with such inquiry, indication of interest, proposal, offer or request (except, in the case of  clause (ii), to the extent any of such information is prohibited from being disclosed to Purchaser under the  terms of a confidentiality or non-disclosure agreement with such Person that is then in effect and binding  on such Seller and was already in place as of the Agreement Date, in which case such notice will disclose  the existence of such expression of interest, inquiry, proposal or offer and any of such information with  respect thereto that is not expressly prohibited from being disclosed by the terms of such agreement).         4.3   Repayment of Insider Receivables.  Before the Closing, each Seller shall cause to be  paid in full to the applicable Acquired Company any Insider Receivable constituting any amount owed by  such Seller or any of its Affiliates.         4.4   Sellers’ Consideration Spreadsheet.  At least three Business Days before the Closing  Date, the Sellers shall cause the Sellers’ Representative to deliver or cause to be delivered to Purchaser an  estimated  Sellers’  Consideration  Spreadsheet  setting  forth  the  information  required  by Section 6.5(c).  Nothing in this Section 4.4 shall limit any rights of any Indemnitee set forth in Section 9.         4.5   Confidential Information.                                           11  

 

               (a)   Confidentiality.  Each Seller will keep confidential, and will ensure that each of  such Seller’s Affiliates and Representatives will keep confidential at all times after the Agreement Date  (including after the Closing) all Confidential Information, except that:                     (i)   such  Seller  may  disclose  Confidential  Information  to  the  extent  such        information  is  required  to  be  disclosed  by  Legal  Requirements  or  judicial  process,  after  prior        consultation  with  Purchaser  so  that  Purchaser  or any  of  its  Affiliates  may  seek  an  appropriate        protective  order and/or waive  compliance  with this Agreement (and, if Purchaser or any of its        Affiliates  seeks  a  protective  order,  such  Seller  shall  cooperate  with  Purchaser  and  Purchaser’s        Affiliates as Purchaser or any of its Affiliates shall reasonably request); provided, however, that        the  Specified  Seller  will  not  be  required  to  consult  with  Purchaser  before  making  the  filing        described in Schedule 4.5(a)(i);                      (ii)  such  Seller  may  disclose  Confidential  Information  to  the  extent  such        information is or has been made generally available to the public, other than through improper        disclosure by any Person;                     (iii) such  Seller  may  disclose  Confidential  Information  on  a  need  to  know        basis to (A) the arbitrator or court in any arbitration or litigation proceeding in which such Seller        is  seeking  to  enforce  its  rights,  or  defending  any  claim,  under  this  Agreement  to  the  extent        disclosure of such Confidential Information is reasonably required for the enforcement of such        rights or such defense and (B) any legal or other advisor to, or expert witness retained by, such        Seller in any such arbitration or litigation proceeding who agrees in writing, for the benefit of the        Company and Purchaser, to maintain the confidentiality of such information and not to use such        information for any improper purpose or who is and has always been subject to a professional or        ethical duty of confidentiality with respect to such Confidential Information; provided, however,        that, in the case of clause “(A)” above, such Seller shall use commercially reasonable efforts to        seek  from  such  arbitrator  or  court  a  protective  order  or  other  confidential  treatment  of  such        Confidential Information;                     (iv)  such  Seller  may  disclose  Transaction-Related  Confidential  Information        on  a  need  to  know  basis  to  such  Seller’s  (or  any  of  its  Affiliates’)  legal,  accounting,  tax  or        financial  advisors  to  the  extent  reasonably  necessary  for  any  such  advisor  to  perform  its  paid        legal, accounting, tax or financial services for such Seller (or such Affiliate) who agree in writing,        for the benefit of the Company and Purchaser, to maintain the confidentiality of such information        and  not  to  use  such  information  for  any  improper  purpose  or  who  are  and  have  always  been        subject  to  a  professional  or  ethical  duty  of  confidentiality  with  respect  to  such  Transaction-       Related Confidential Information;                     (v)   such  Seller  may  disclose  Transaction-Related  Confidential  Information        as  required  by  IFRS  or  other  generally  accepted  accounting  standards  or  applicable  Legal        Requirements as part of such Seller’s or any of its Affiliates’ financial statements or Tax Returns;                      (vi)  if  such  Seller  is  a  venture  capital  or  private  equity  investor  or  the        Specified  Seller,  such  Seller  may  disclose  Transaction-Related  Confidential  Information  on  a        controlled basis to its current and prospective shareholders, members or partners in accordance        with  its  partnership  (or  similar  governance  or  investment)  agreements  or  customary  fund        management or investment management practices that are commercially reasonable and designed        to ensure the confidentiality of such information; and                                          12  

 

                     (vii) the  Specified  Seller  may  disclose  Transaction-Related  Confidential        Information on “earnings calls” that are accessible to the public.    Notwithstanding the foregoing, none of the following shall be deemed to be “Confidential Information”  with  respect  to  any  Seller:  (A)  any  information  that  becomes  available  to  such  Seller  on  a  non- confidential  basis  from  a  source  other  than  an  Acquired  Company,  Purchaser  or  any  of  its  Affiliates,  provided that such source was not then  known to such  Seller to be bound by any contractual or other  obligation  of  confidentiality  to  any  Acquired  Company  with  respect  to  such  information;  and  (B)  any  information that was already in the possession of such Seller prior to the time it was first made available  to such Seller by any Acquired Company, Purchaser or any of its Affiliates, provided that the source of  such information was not known to such Seller (at the  time  of disclosure  of such  information to such  Seller) to be bound by any contractual or other obligation of confidentiality to any Acquired Company  with respect to such information.               (b)   Non-use.  Each  Seller  undertakes  to  Purchaser  that  at  all  times  after  the  Agreement Date (including after the Closing) such Seller will not use, and will ensure that each of such  Seller’s Affiliates and their respective Representatives does not use, any Confidential Information for any  improper  purpose  (for  clarity,  this Section 4.5(b) will  not  prohibit  such  Seller  from  using  Permitted  Residual Information for any purpose related to its business).          4.6   Waivers.  Each  Seller  hereby  waives:  (a)  any  rights  to  claim  that  any  of  the  Contemplated Transactions does not conform to the requirements or other provisions of any shareholders’  agreement (including the Existing Shareholders’ Agreement) or the Charter Documents of the Company;  (b)  any  rights  of  pre-emption,  rights  of  first  refusal,  rights  of  approval  or other  similar  rights  or  restrictions that relate to the Secondary Share Purchase or the Share Issuance, whether arising under any  Contract, Legal Requirement, the  Charter Documents of any Acquired Company or otherwise; (c) any  conflicts of interest that any director or officer of any Acquired Company or any other Seller may have as  a result of his, her or its relationship with an Acquired Company or his, her or its interest in any of the  Contemplated  Transactions;  and  (d)  effective  as  of  the  Closing,  any  and  all  rights  over  any  of  the  Purchased Shares conferred upon such Seller by the Charter Documents of the Company, the Existing  Shareholders’ Agreement or otherwise.          4.7   Shareholder Consents.  Each Seller hereby agrees that all Consents of such Seller (if  any) that are required to approve a new Shareholders’ Agreement in substantially the form of Exhibit C  (the  “New  Shareholders’  Agreement”) and  authorize  each  of  the  other  Contemplated  Transactions  are  hereby deemed provided.         4.8   Restrictions on Transfer.  During the Pre-Closing Period, no Seller shall sell, transfer,  encumber or otherwise permit to become subject to any Encumbrance any Company Share, other than as  contemplated in Section 1.1.         4.9   Withholding Tax Documentation.  No later than 30 Business Days prior to the Closing  Date, each Seller shall deliver to Purchaser all documentation and certifications required under any Legal  Requirement with respect to the withholding or deduction of Taxes from any amount paid or payable to  such Seller  in  connection  with  the  Secondary  Share  Purchase  or  any  of  the  other  Contemplated  Transactions  in  form  and  substance  reasonably  satisfactory  to  Purchaser,  including  the  documents  and  certifications identified in Schedule 4.9.         4.10  Post-Closing  Indian  Withholding  Tax-Related  Filings.  If  Purchaser  reasonably  believes that any Acquired Company is required to report, file or maintain any information or document  in  India  after  the  Closing  in  connection  with  the  Secondary  Share  Purchase  (including  under  Section                                          13  

 

285A  of  the  IT  Act  and  the  Rule  114DB  of  the  (Indian)  Income  Tax  Rules,  1962),  each  Seller  shall  provide  Purchaser,  the  Company  and  their  respective  Affiliates  with  such  cooperation  and  assistance,  including providing information and documents, as may be  reasonably requested by Purchaser. To the  extent that the tax residence certificate furnished by such Seller pursuant to Section 4.9 does not cover the  period between the Closing Date and the end of the Indian Tax Year in which the Closing occurs (the  “TRC  Residual  Period”),  such  Seller  shall  obtain  a  tax  residence  certificate  from  the  relevant  Governmental Entity of the jurisdiction under whose DTAA with India such Seller claims Tax benefits  for the TRC Residual Period and shall furnish such tax residence certificate to Purchaser no later than 45  days after the end of the Indian Tax Year in which the Closing occurs.         4.11  Seller  Indian  Tax  Matters.  Each  Seller  shall  ensure  that  the  representations  and  warranties of such Seller in Section 2.4 continue to be accurate for the entire Indian Tax Year in which  the Closing occurs.         4.12  Series I Warrants.  Each Seller shall be deemed to have exercised, immediately before  the Closing, all Series I Warrants (if any) held by such Seller.   5.    CERTAIN COVENANTS OF THE PARTIES        5.1   Filings and Consents.               (a)   Filings.   Each  party  shall  use  its  reasonable  best  efforts  to  file,  as  soon  as practicable after the Agreement Date, all notices, reports and other documents required to be filed by such  party  with  any  Governmental  Entity  with  respect  to  the  Secondary  Share  Purchase  and  the  other  Contemplated  Transactions,  and  to  submit  promptly  any  additional information  requested  by  any such  Governmental Entity.                (b)   Notification.   Each  Seller  shall  promptly  notify  Purchaser  upon  the  receipt  by such  Seller  or  any  Representative  of  such  Seller  of:  (i)  any  communication  from  any  official  of  any  Governmental  Entity  relating  to  any  filing  made  in  connection  with  any  of  the  Contemplated  Transactions; (ii) knowledge of the commencement or threat of commencement of any Legal Proceeding  by or before any Governmental Entity with respect to any of the Contemplated Transactions (and shall  keep Purchaser informed as to the status of any such Legal Proceeding or threat); and (iii) any request by  any Governmental Entity for any amendment or supplement to any filing made in connection with any of  the  Contemplated  Transactions  or  any  information  required  to  comply  with  any  Legal  Requirement  applicable to any of the Contemplated Transactions.  Whenever any event occurs that is required to be set  forth in an amendment or supplement to any filing made pursuant to Section 5.1(a), the applicable Seller  shall (promptly upon such Seller or any Representative of such Seller becoming aware of the occurrence  of such event) inform Purchaser of the occurrence of such event and cooperate with Purchaser in filing  with the applicable Governmental Entity such amendment or supplement. Purchaser shall promptly notify  the Sellers’ Representative upon becoming aware of the commencement of any Legal Proceeding against  Purchaser  relating  to the  approval  by  any  Governmental  Entity  of the  Secondary  Share  Purchase  (and  shall keep the Sellers’ Representative reasonably informed as to the status of any such Legal Proceeding).               (c)   Efforts.   Subject  to Section 5.1(d),  Purchaser  and  each  Seller  shall  use  their respective reasonable best efforts to take, or cause to be taken, all actions necessary to consummate the  Secondary  Share  Purchase  and  make  effective  the  other  Contemplated  Transactions  on  a  timely  basis.  Without  limiting  the  generality  of  the  foregoing,  but  subject  to Section 5.1(d),  each  party  to  this  Agreement shall: (i) make all filings (if any) and give all notices (if any) required to be made and given  by such party in connection with the Secondary Share Purchase and the other Contemplated Transactions;  (ii) use its reasonable best efforts to obtain each Consent (if any) required to be obtained (pursuant to any                                         14  

 

   applicable Legal Requirement or Contract, or otherwise) by such party in connection with the Secondary  Share Purchase or any of the other Contemplated Transactions; and (iii) use its reasonable best efforts to  lift  any  restraint,  injunction  or  other  legal  bar  to  the  Secondary  Share  Purchase  or  any  of  the  other  Contemplated Transactions.               (d)   Limitations.  Notwithstanding  anything  to  the  contrary  contained  in Section  5.1(c) or elsewhere in this Agreement, neither Purchaser nor any Affiliate of Purchaser shall have any  obligation  under  this  Agreement:  (i)  to  hold separate,  divest,  sell,  license,  discontinue  or  otherwise  dispose of or agree to hold separate, divest, sell, license, discontinue or otherwise dispose of (or cause any  of  its  Subsidiaries  or  any  Acquired  Company  to  hold  separate,  divest,  sell,  license,  discontinue  or  otherwise dispose of or agree to hold separate, divest, sell, license, discontinue or otherwise dispose of)  any of its businesses, product lines or assets, or to take or agree to take (or cause any of its Subsidiaries or  any  Acquired  Company to  take  or  agree  to  take)  any  other  action  or  to  agree  (or  cause  any  of  its  Subsidiaries  or  any  Acquired  Company  to  agree)  to  any  behavioral  remedy  with  respect  to,  or  any  limitation or restriction on, any of its businesses, product lines or assets, other than actions referred to in  this clause “(i)” that: (A) are necessary to satisfy the conditions set forth in Sections 6.3(a) and 7.4; and  (B) individually or in the aggregate, would reasonably be expected to have only an immaterial impact on  the anticipated benefits of the Contemplated Transactions to Purchaser; (ii) to amend or modify any of  Purchaser’s  or any of its Affiliates’ rights under any Transaction Document or to prohibit or limit the  exercise by Purchaser of any right with respect to any of the Purchased Shares or any other Company  Shares;  or  (iii)  to  commence  or  contest  any  Legal  Proceeding  relating  to  the  approval  by  any  Governmental  Entity  of  the  Share  Issuance,  the  Secondary  Share  Purchase  or  any  of  the  other  Contemplated Transactions.         5.2   Public Announcements.  From and after the Agreement Date, no Seller shall (and each  Seller shall ensure that none of such Seller’s Affiliates or Representatives shall) issue or make any press  release or public statement regarding this Agreement, the Secondary Share Purchase, the Share Issuance  or any of the other Contemplated Transactions, without Purchaser’s prior written consent (except that the  Specified  Seller  may  make  public  statements  regarding  this  Agreement  in  compliance  with Section  4.5(a)(v) and Section 4.5(a)(vii)).  Except as required by applicable Legal Requirements, from and after  the Agreement Date, each of the Sellers and Purchaser agree to refrain from issuing or making any press  release or public statement (other than any statement in any public action, public suit or other public legal  proceeding arising out of this Agreement) with respect to any dispute under or relating to this Agreement,  the Secondary Share Purchase, the Share Issuance or any of the other Contemplated Transactions.         5.3   Reasonable  Best  Efforts.  Before  the  Closing:  (a)  each  Seller  shall  use  such  Seller’s  reasonable best efforts to cause the conditions set forth in Section 6 to be satisfied on a timely basis; and  (b) subject to Section 5.1(d), Purchaser shall use its reasonable best efforts to cause the conditions set  forth in Section 7 to be satisfied on a timely basis.   6.    CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER         The  obligations  of  Purchaser  to  acquire  the  Purchased  Shares  and  otherwise  cause  the  Contemplated Transactions to be consummated are subject to the satisfaction (or waiver by Purchaser), at  or before the Closing, of each of the following conditions:         6.1   Accuracy of Representations.                 (a)   The Designated Personal Representations of each Seller shall be accurate in all  respects as of the Closing Date as if made on and as of the Closing Date.                                            15  

 

               (b)   The  Personal  Representations  (other  than  the  Designated  Personal  Representations) of each Seller shall be accurate in all material respects as of the Closing Date as if made  on and as of the Closing Date (other than representations and warranties which by their terms are made as  of a specific earlier date, which shall have been accurate in all material respects as of such earlier date);  provided, however, that, for purposes of determining the accuracy of such representations and warranties  as of the Closing Date or as of a specific earlier date, all materiality and similar qualifications limiting the  scope of such Personal Representations shall be disregarded.           6.2   Performance of Covenants.  The covenants and obligations that each Seller is required  to comply with or to perform at or before the Closing under this Agreement and the other Transaction  Documents shall have been complied with and performed in all material respects.           6.3   Governmental and Other Consents; Expiration of Notice Periods.               (a)   Governmental  Consents.   All  filings  with  the  CCI  required  to  be  made  in  connection  with  the  Secondary  Share  Purchase,  the  Share  Issuance  and  the  other  Contemplated  Transactions shall have been made and CCI Approval shall have been obtained and shall be in full force  and  effect  without  the  imposition  of  any  Burdensome  Condition;  and  any  other  Legal  Requirement  preventing, prohibiting or otherwise restraining, in whole or in part, the Secondary Share Purchase, the  Share  Issuance  or  any  of  the  other  Contemplated  Transactions  shall  have  expired  or  been  terminated  without  the  imposition  of  any  Burdensome  Condition  and  any  waiting  period  under  any  applicable  antitrust or competition law, regulation or other Legal Requirement in India shall have expired or been  terminated without the imposition of any Burdensome Condition. For purposes of this Section 6.3(a) and  Section 7.4,  “CCI  Approval”  means  the  receipt  of  an  approval  letter  under  sub-regulation  (5)  of  Regulation  28  of  the  CCI  Regulations  with  respect  to  the  Secondary  Share  Purchase  and  the  Share  Issuance.               (b)   Other  Consents.   All  Consents  identified  in Schedule 6.3(b) shall  have  been  obtained and shall be in full force and effect.               (c)   No Restraint on Business.  No action shall have been taken by any Governmental  Entity of competent jurisdiction, and no Legal Requirement or Order (whether temporary, preliminary or  permanent)  shall  have  been  enacted,  adopted  or  issued  by  any  Governmental  Entity  of  competent  jurisdiction, in connection with any of the Contemplated Transactions that has the effect of limiting or  restricting the conduct or operation of the business of the Company, any other Acquired Company or any  their respective Affiliates following the Closing or that has the effect of limiting or restricting the conduct  or operation of the business of Purchaser as owner of the Purchased Shares or any other Company Shares  following the Closing, other than limitations or restrictions that (i) individually or in the aggregate, would  reasonably be expected to have only an immaterial impact on the anticipated benefits of the Contemplated  Transactions  to Purchaser or (ii) resulted from the failure of Purchaser to comply with or perform the  covenants and obligations of Purchaser set forth in Section 5.1(c) (as qualified by Section 5.1(d)).         6.4   No Material Adverse Effect.                 (a)   There shall not have occurred any Material Adverse Effect since the Agreement  Date that is continuing.               (b)   There  shall  not  have  occurred  any  Seller  Material  Adverse  Effect  since the  Agreement Date that is continuing.                                          16  

 

         6.5   Agreements and Documents.  Purchaser shall have received the following agreements  and documents, each of which shall be in full force and effect:                (a)   original  share  certificates  representing  all  Purchased  Shares  (or  evidence  of  cancellation thereof or an affidavit regarding missing stock certificates) and instruments of transfer for all  Purchased Shares properly executed in favor of Purchaser (or any other Person that Purchaser nominates);                (b)   the shareholder register (i) reflecting the conversion of all Company Preference  Shares into Company Ordinary Shares upon the Closing pursuant to the Conversion Event and reflecting  the Secondary Share Purchase by Purchaser and (ii) showing that Purchaser owns all of the Purchased  Shares and there are no Encumbrances on such shares;               (c)   a  spreadsheet  containing  the  following  information  (such  spreadsheet,  the  “Sellers’ Consideration Spreadsheet”):                      (i)   (A)  the  aggregate  amount  of  all  Company  Transaction  Expenses,        together  with  a  detailed  breakdown  thereof  specifying  for  each  such  Company  Transaction        Expense the dollar amount thereof (determined using the Specified Exchange Rate, as applicable)        and  whether  it  has  already  been  paid  or  remains  to  be  paid,  (B) the  Deductible  Company        Transaction Expense Amount, (C) the Closing Debt Amount, (D) the Transaction Bonus Amount,        (E) the Deductible Transaction Bonus Amount, (F) the Specified Warrant Cancelation Payment        Amount,  (G)  the  Fully  Diluted  Share  Number,  (H)  the  Price  Per  Secondary  Share,  (I)  the        Purchaser Secondary Ownership Percentage, (J) the Apportioned Litigation Reserve Amount, (K)        the Aggregate  Repurchase  Price,  (L) the  Secondary  Specified  Fraction and  (M)  the  Secondary        Allocation Gross-Up Factor;                     (ii)  with respect to each Seller:                            (A)   the name and address of record of such Seller, including email              address, if available;                           (B)   the  number  of  Purchased  Shares  held  by  such  Seller  (on  a              certificate by certificate basis);                           (C)   the  aggregate  consideration  payable  to  such  Seller  pursuant  to              Section 1.1(b) with respect to such Purchased Shares before the deduction of any amount              pursuant to Section 1.3;                           (D)   (1) the amount to be delivered to the Escrow Agent for deposit              into the  Escrow Fund by Purchaser with respect to the  Purchased Shares held by such              Seller  pursuant  to Section 1.3;  and  (2)  the  amount  to  be  delivered  to  the  Sellers’              Representative  for  deposit  into  the  Expense  Fund  by  or  on  behalf  of  Purchaser  with              respect to such Seller’s Purchased Shares pursuant to Section 10.1(e);                           (E)   whether  (and  the  amount  of)  any  Taxes  are  to  be  withheld  in              accordance with Section 1.4 from the consideration that such Seller is entitled to receive              pursuant to Section 1.1(b) (including from the amount to be contributed to the Escrow              Fund or to be deposited into the Expense Fund with respect to the Purchased Shares held              by such Seller) (this clause “(E)” of the Sellers’ Consideration Spreadsheet being referred              to as the “Sellers’ Tax Withholding Spreadsheet”);                                           17  

 

                           (F)   the amount of such Seller’s portion of the Singapore Stamp Duty              that is required to be reimbursed pursuant to Section 10.4(a);                           (G)   the net cash amount to be paid to such Seller (after deduction of              the amounts referred to in clauses “(D),” “(E)” and “(F)” above);                            (H)   such Seller’s Pro Rata Portion; and                     (iii) a funds flow spreadsheet, in form and substance reasonably satisfactory        to Purchaser, showing: (A) the aggregate amount to be delivered by Purchaser to the Disbursing        Agent; (B) the amounts to be distributed by the Disbursing Agent to the Sellers in accordance        with Section 1.1(b);  (C)  the  amount  to  be  distributed  by  the  Disbursing  Agent  to  the  Escrow        Agent in accordance with Section 1.3; (D) the amount to be distributed by the Disbursing Agent        to  the  Sellers’  Representative  in  accordance  with Section 10.1(e);  and  (E)  wire  transfer        instructions for each payment to be made by the Disbursing Agent reflected therein;                (d)   reasonable documentation in support of the calculation of the amounts set forth in  the Sellers’ Consideration Spreadsheet;               (e)   a certified copy of resolutions of the board of directors (or equivalent) of each  Seller that is an Entity authorizing each of the Contemplated Transactions to which such Seller is a party  or for which such Seller’s Consent is required;               (f)   release agreements, in the form of Exhibit B, duly executed by each Seller;               (g)   certified copies  of:  (i)  the  resolutions  adopted  by  the  Company’s  board  of  directors (A) approving for registration the transfers of the Purchased Shares (subject only to the transfers  being duly stamped  by Purchaser) and (B) approving the  issue  of a  new share certificate  to Purchaser  recording Purchaser as the holder of the Company Ordinary Shares held by Purchaser immediately after  the  Closing  and  the  entry  of  the  name  of  Purchaser  into  the  electronic  register  of  members  of  the  Company  maintained  by Accounting  and Corporate  Regulatory  Authority  of  Singapore; and  (ii)  the  resolutions adopted by the shareholders of the Company approving the Conversion Event, the Liquidation  Event Waiver, the Share Issuance and the other Contemplated Transactions;               (h)   evidence  reasonably  satisfactory  to  Purchaser  that  all  outstanding  Insider  Receivables owed by the Sellers and their Affiliates have been paid in full;                (i)   the  New  Shareholders’  Agreement,  duly  executed  by  each  holder  of  Company  Shares that will be a shareholder of the Company immediately after the Closing;               (j)   the information and documents identified in Schedule 4.9, in form and substance  reasonably satisfactory to Purchaser, from each Seller; and               (k)   all  documentation  required  by  the  Disbursing  Agent  with  respect  to  any  payments to be made by the Disbursing Agent.         6.6   No Restraints.  No temporary restraining order, preliminary or permanent injunction or  other Order preventing or otherwise impeding, in whole or in part, the consummation of the Secondary  Share Purchase or the Share Issuance shall have been issued by any court of competent jurisdiction or  other  Governmental  Entity  of  competent  jurisdiction  and  remain  in  effect,  and  there  shall  not  be  any  Legal Requirement enacted or deemed applicable to the Secondary Share Purchase or the Share Issuance                                          18  

 

   by any Governmental Entity of competent jurisdiction that makes consummation of the Secondary Share  Purchase or the Share Issuance illegal, in whole or in part.         6.7   No  Legal  Proceedings.  No  Governmental  Entity  shall  have  commenced  any  Legal  Proceeding that remains pending, or shall have threatened to commence any Legal Proceeding, and no  current, former or alleged shareholder of any Acquired Company or Affiliate (other than any portfolio  company of such shareholder where such shareholder does not own a majority of equity voting power and  does not have the right to appoint a majority of the board of directors or other governing body in or of  such portfolio company) of any current, former or alleged shareholder of any Acquired Company shall  have commenced any Legal Proceeding that remains pending:  (a) challenging, in whole or in part, the  Secondary Share Purchase, the Share Issuance or any of the other Contemplated Transactions; (b) seeking  recovery of a material amount of damages in connection with the Secondary Share Purchase, the Share  Issuance or any of the other Contemplated Transactions; (c) seeking to prohibit or limit the exercise by  Purchaser of any right with respect to any Purchased Shares or any other Company Shares; (d) that may  have the effect of preventing, delaying, making illegal or otherwise interfering with, in whole or in part,  the  Secondary  Share  Purchase,  the  Share  Issuance or  any  of  the  other  Contemplated  Transactions;  (e)  seeking to compel any Acquired Company, Purchaser or any Affiliate of Purchaser to dispose of or hold  separate any material assets as a result of the Secondary Share Purchase, the Share Issuance or any of the  other  Contemplated  Transactions;  or  (f)  that  may  result  in  the  imposition  of criminal  liability  on  Purchaser, any Affiliate of Purchaser or any Acquired Company or any officer or director of Purchaser,  any Affiliate of Purchaser or any Acquired Company in connection with the Secondary Share Purchase,  the Share Issuance or any of the other Contemplated Transactions.         6.8   Conversion Event.  The Conversion Event shall (subject only to the consummation of  the  Closing)  become  effective,  and  all  issued  and  outstanding  Company  Preference  Shares  shall  be  converted  into  Company  Ordinary  Shares  in  compliance  with  the Constitution  of  the  Company,  immediately after the Closing.          6.9   Waivers.  The Liquidation Event Waiver and the ROFR Waivers shall be in full force  and effect and no shareholder of the Company shall have commenced a Legal Proceeding challenging or  attempting to revoke the Liquidation Event Waiver or any ROFR Waiver.          6.10  Share Issuance.  Each of the conditions set forth in Section 6 and Section 7 of the Share  Issuance  Agreement  shall  have  been  satisfied  or  waived  in  writing  and  the  Share  Issuance  shall  be  consummated contemporaneously with the Secondary Share Purchase at the Closing.   Notwithstanding  the  foregoing,  if  any  of  the  conditions  set  forth  in Section 6.1, Section 6.2,  Section 6.4(b), Section 6.5(a), Section 6.5(e), Section 6.5(f), Section 6.5(h), Section 6.5(j) or Section  6.5(k) is not satisfied with respect to any Seller as of the time scheduled for the Closing (and Purchaser is  unwilling  to  waive  such  condition), then  Purchaser  shall  be  required  to  exercise  the  Exclusion  Option  with  respect  to  such  Seller  and  exclude  from  the  Purchased  Shares  the  Company  Shares  referred  to  opposite the name of such Seller in Column D of Schedule I; provided, however, that in no event shall  Purchaser be required to exercise the Exclusion Option with respect to any Seller if, after giving effect to  all  exercises  of  the  Exclusion  Option  by  Purchaser,  the  aggregate  number  of Purchased  Shares  (determined  on  an  as-converted-to-Company  Ordinary  Shares  basis),  together  with  the  Issued  Shares,  would represent less than 51% of the total number of Company Shares outstanding immediately after the  Closing (after giving effect to the Conversion Event and the Share Issuance).                                          19  

 

7.    CONDITIONS PRECEDENT TO OBLIGATION OF THE SELLERS        The  obligation  of  the  Sellers  to  sell  the  Purchased  Shares  and  otherwise  consummate  the  Contemplated  Transactions  is  subject  to  the  satisfaction  (or  waiver),  at  or  before  the  Closing,  of  the  following conditions:         7.1   Accuracy of Representations.  The representations and warranties made by Purchaser in  this Agreement shall be accurate as of the Closing Date as if made on and as of the Closing Date, except  where the failure of the representations and warranties of Purchaser to be accurate would not reasonably  be expected to have a material adverse effect on the ability of Purchaser to consummate the acquisition of  the Purchased Shares.         7.2   Performance of Covenants.  The covenants and obligations that Purchaser is required to  comply with or to perform at or before the Closing under this Agreement shall have been complied with  and  performed  in  all  material  respects,  except  where  the  failure  to  comply  with  or  to  perform  such  covenants or obligations would not reasonably be expected to have a material adverse effect on the ability  of Purchaser to consummate the acquisition of the Purchased Shares.         7.3   Agreements  and  Documents.  The  Company  shall  have  received  a  certificate  duly  executed on behalf of Purchaser by an officer of Purchaser and containing the representation and warranty  of Purchaser that the conditions set forth in Sections 7.1 and 7.2 have been satisfied.         7.4   Governmental Approvals.  All filings with the CCI required to be made by Purchaser in  connection with the Secondary Share Purchase shall have been made and CCI Approval shall have been  obtained and shall be in full force and effect, and any waiting period (and extensions thereof) applicable  to the Secondary Share Purchase under any applicable antitrust or competition law, regulation or other  Legal Requirement in India shall have expired or been terminated.         7.5   No Restraints.  No temporary restraining order, preliminary or permanent injunction or  other Order preventing the consummation of the Secondary Share Purchase by a Seller shall have been  issued by any court of competent jurisdiction or other Governmental Entity of competent jurisdiction and  remain  in  effect,  and  there  shall  not  be  any  Legal  Requirement  enacted  or  deemed  applicable  to  the  Secondary  Share  Purchase  by  any  Governmental  Entity  of  competent  jurisdiction,  that  makes  consummation of the Secondary Share Purchase by such Seller illegal and remains in effect, except for  any Order or Legal Requirement (a) that would not reasonably be expected to give rise to the imposition  of  criminal  sanctions  or  criminal  liability  on  such  Seller  if  the  Secondary  Share  Purchase  were  consummated or (b) that resulted from (i) any action or failure to act on the part of such Seller, or any  other  circumstance,  that  constitutes  or  gave  rise  to  an  inaccuracy  in  or  breach  of  any  Personal  Representation of such Seller or (ii) any failure on the part of such Seller to comply with or perform any  covenant or obligation of such Seller set forth in this Agreement or any other Transaction Document.  For  clarity:  (A)  only  the  Seller  subject  to  an  Order  or  Legal  Requirement  described  in  the  immediately  preceding sentence may invoke the condition set forth in this Section 7.5; and (B) if such Seller validly  invokes  the  condition  set  forth  in  this Section 7.5, then  Purchaser  shall  be  required  to  exercise  the  Exclusion Option with respect to such Seller and exclude from the Purchased Shares the Company Shares  referred to opposite the name of such Seller in Column D of Schedule I; provided, however, that in no  event shall Purchaser be required to exercise the Exclusion Option with respect to such Seller if, after  giving effect to all exercises of the Exclusion Option by Purchaser, the aggregate number of Purchased  Shares (determined  on  an  as-converted-to-Company  Ordinary  Shares  basis),  together  with  the  Issued  Shares, would represent less than 51% of the total number of Company Shares outstanding immediately  after the Closing (after giving effect to the Conversion Event and the Share Issuance).                                          20  

 

8.    TERMINATION        8.1   Termination Events.  This Agreement may be terminated before the Closing:               (a)   by the mutual written consent of Purchaser and the Sellers’ Representative;              (b)   by Purchaser if the Closing has not taken place on or before 5:00 p.m. (Central time) on the date that is 10 months after the Agreement Date (the “End Date”) and any condition set forth  in Section 6 has not been satisfied or waived as of the time of termination (other than as a result of any  failure on the part of Purchaser to comply with or perform any covenant or obligation of Purchaser set  forth in this Agreement or in the Share Issuance Agreement);               (c)   by the Sellers’ Representative if the Closing has not taken place on or before 5:00 p.m. (Central time) on the End Date and any condition set forth in Section 7 has not been satisfied or waived  as of the time  of termination (other than as a  result of any failure on the  part of any Seller to comply with or perform any covenant or obligation set forth in this Agreement or any other Transaction Document);              (d)   by Purchaser if: (i) (A) a court of competent jurisdiction or other Governmental Entity in India, Singapore or the United States shall have issued a final and nonappealable Order or shall  have  taken  any  other  action  having  the  effect  of  permanently  restraining,  enjoining  or  otherwise  prohibiting the Secondary Share Purchase or the Share Issuance, in whole or in part, or (B) there shall be  any applicable Legal Requirement enacted, promulgated, issued or deemed applicable to the Secondary  Share  Purchase  or  the  Share  Issuance  by  any  Governmental  Entity  in  India,  Singapore  or  the  United  States that would make consummation of the Secondary Share Purchase or the Share Issuance illegal, in  whole or in part; and (ii) the failure to comply with such Order or Legal Requirement, or the effect of  such other action, would reasonably be expected to give rise to the imposition of criminal sanctions or  criminal liability on Purchaser or any of Purchaser’s officers, directors or Affiliates;                (e)   by the Sellers’ Representative if: (i) (A) a court of competent jurisdiction or other Governmental Entity in India, Singapore or the United States shall have issued a final and nonappealable  Order binding on all Sellers or shall have taken any other action binding on all Sellers having the effect of  permanently restraining, enjoining or otherwise prohibiting the Secondary Share Purchase, or (B) there  shall  be  any  applicable  Legal  Requirement  enacted,  promulgated,  issued  or  deemed  applicable  to  the  Secondary  Share  Purchase  by  any  Governmental  Entity  in  India,  Singapore  or  the  United  States  that  would make consummation of the Secondary Share Purchase illegal; and (ii) the failure to comply with  such Order or Legal Requirement, or the effect of such other action, would reasonably be expected to give  rise  to  the  imposition  of  criminal  sanctions  or  criminal  liability  on  the  Sellers  or  any  of  the  Sellers’  officers or directors;               (f)   by  Purchaser if: (i)  any  Personal  Representations  of  any  Sellers  that  constitute Required Sellers shall be inaccurate as of the Agreement Date, or shall have become inaccurate as of a  date subsequent to the Agreement Date, such that any of the conditions set forth in Section 6.1 would not  be satisfied with respect to such Sellers (and there are not remaining Sellers who satisfy such conditions  and can themselves constitute the Required Sellers); or (ii) any covenants of any Sellers that constitute  Required Sellers contained in this Agreement shall have been breached such that the condition set forth in  Section 6.2 would not be satisfied with respect to such Sellers (and there are not remaining Sellers who  satisfy such condition and can themselves constitute the Required Sellers); provided, however, that if an  inaccuracy in any of the representations and warranties of any such Seller as of the Agreement Date or a  date subsequent to the Agreement Date or a breach of a covenant by any such Seller is curable by such  Seller through the use of reasonable efforts within 30 days after Purchaser notifies such Seller in writing                                          21  

 

   of  the  existence  of  such  inaccuracy  or  breach  (the  “Seller  Cure  Period”),  then  Purchaser  may  not  terminate  this  Agreement under this Section 8.1(f) as  a  result of such  inaccuracy or breach  before  the  expiration of the Seller Cure Period, provided such Seller continues to exercise reasonable efforts to cure  such  inaccuracy  or  breach  during  the  Seller  Cure  Period  (it  being  understood  that  Purchaser  may  not  terminate this Agreement pursuant to this Section 8.1(f) with respect to any such inaccuracy or breach if  such inaccuracy or breach is cured before the expiration of the Seller Cure Period);                (g)   by  the  Sellers’  Representative  if:  (i)  any  of  Purchaser’s  representations  and  warranties  contained  in  this  Agreement  shall  be  inaccurate  as  of  the  Agreement  Date,  or  shall  have  become  inaccurate  as  of a date  subsequent to the  Agreement Date, such that any of the  conditions set  forth  in Section 7.1 would  not  be  satisfied;  or  (ii)  if  any  of  Purchaser’s  covenants  contained  in  this  Agreement  shall  have  been  breached  such that  the  condition  set  forth  in Section 7.2 would  not  be  satisfied; provided, however, that if an inaccuracy in any of Purchaser’s representations and warranties as  of  the  Agreement  Date  or  a  date  subsequent  to the  Agreement  Date  or a  breach  of  a  covenant  by  Purchaser is curable by Purchaser through the use of reasonable efforts within 30 days after the Sellers’  Representative notifies Purchaser in writing of the existence of such inaccuracy or breach (the “Purchaser  Cure  Period”),  then  the  Sellers’  Representative  may  not  terminate  this  Agreement  under  this Section  8.1(g) as  a  result  of  such  inaccuracy  or  breach  before  the  expiration  of  the  Purchaser  Cure  Period,  provided Purchaser continues to exercise reasonable efforts to cure such inaccuracy or breach during the  Purchaser  Cure  Period  (it  being  understood  that  the  Sellers’  Representative  may  not  terminate  this  Agreement pursuant to this Section 8.1(g) with respect to such inaccuracy or breach if such inaccuracy or  breach is cured before the expiration of the Purchaser Cure Period); and               (h)   by Purchaser if the Share Issuance Agreement has been terminated.   Notwithstanding  the  foregoing,  prior  to  invoking  the  condition  in Section 6.6 or  terminating  this  Agreement pursuant to Section 8.1(d) on the grounds that the Secondary Share Purchase has been made  illegal, permanently restrained,  enjoined  or otherwise prohibited  “in part”  as described therein, if such  adverse  effect  would  be  avoided  by  the  exercise  of  the  Exclusion  Option  with  respect  to  a  particular  Seller, then Purchaser shall be required to exercise the Exclusion Option with respect to such Seller and  exclude from the Purchased Shares the Company Shares referred to opposite the name of such Seller in  Column D of Schedule I; provided, however, that in no event shall Purchaser be required to exercise the  Exclusion Option with respect to such Seller if, after giving effect to all exercises of the Exclusion Option  by  Purchaser,  the  aggregate  number  of  Purchased  Shares (determined  on  an  as-converted-to-Company  Ordinary  Shares  basis),  together  with  the  Issued  Shares,  would  represent  less  than  51%  of  the  total  number  of  Company  Shares  outstanding  immediately  after  the  Closing  (after  giving  effect  to  the  Conversion Event and the Share Issuance).         8.2   Termination Procedures.  If Purchaser wishes to terminate this Agreement pursuant to  Section 8.1, Purchaser shall deliver to the Sellers’ Representative a written notice stating that Purchaser is  terminating this Agreement and setting forth a brief description of the basis or bases on which Purchaser  is terminating this Agreement. If the Sellers’ Representative wishes to terminate this Agreement pursuant  to Section 8.1,  the  Sellers’  Representative  shall  deliver  to  Purchaser  a  written  notice  stating  that  the  Sellers’ Representative is terminating this Agreement and setting forth a brief description of the basis or  bases on which the Sellers’ Representative is terminating this Agreement.         8.3   Effect  of  Termination.  If  this  Agreement  is  terminated  pursuant  to Section 8.1,  all  further  obligations  of  the  parties  under  this  Agreement  shall  terminate; provided,  however,  that:  (a)  neither the  Sellers  nor Purchaser shall be  relieved  of any obligation or liability arising from any prior  knowing (with scienter under Delaware law) or willful inaccuracy in or breach of any representation and  warranty of such party, or any prior willful breach by such party of any covenant or obligation, contained                                          22  

 

in this Agreement; (b) the Sellers shall, in all events, remain bound by and continue to be subject to the  provisions set forth in Section 4.5 and Section 5.2; and (c) the parties shall, in all events, remain bound by  and continue to be subject to the terms set forth in Section 10.  9.    INDEMNIFICATION       9.1   Survival of Representations, Warranties and Covenants.               (a)   General  Company  Representations.   Subject  to Section 9.1(k),  the  General Company  Representations  shall  survive  the  Closing  until  11:59  p.m.  Central  time  on  the  date  that  is  1&#0; &#0;&#0;&#0;&#0;&#0;&#0; after  the  Closing  Date  (the  “General  Representation  Expiration  Time”); provided,  however, that if, at any time on or before the General Representation Expiration Time, any Indemnitee delivers to  the Sellers’ Representative a Notice of Claim asserting a breach of or an inaccuracy in any of the General  Company Representations, then the claim asserted in such notice shall survive the General Representation  Expiration Time until such time as such claim is fully and finally resolved.              (b)   Company Compliance Representations.  Subject to Section 9.1(k), the Company Compliance Representations shall survive the Closing until 11:59 p.m. Central time on the third  anniversary of the Closing Date; provided, however, that if, at any time on or before such third  anniversary, any Indemnitee delivers to the Sellers’ Representative a Notice of Claim asserting a breach  of or an inaccuracy in any of the Company Compliance Representations, then the claim asserted in such  notice shall survive such third anniversary until such time as such claim is fully and finally resolved.              (c)   Company Tax Representations.  Subject to Section 9.1(k), the Company Tax Representations shall survive the Closing until 11:59 p.m. Central time on the date that is 60 days after  the expiration of the applicable Tax-related statute of limitations (as it may be  extended, it being  understood that any extension that is voluntarily granted by Purchaser and was not requested by a  Governmental Entity shall be  disregarded) applicable to the subject matter of the Company Tax  Representation in question; provided, however, that if, at any time on or before the applicable expiration  date referred to in this sentence, any Indemnitee delivers to the Sellers’ Representative a Notice of Claim  asserting a  breach of or an inaccuracy in any of the Company Tax Representations, then the claim  asserted in such notice shall survive such expiration date until such time as such claim is fully and finally  resolved.              (d)   Personal Representations.                   (i)   Subject  to Section 9.1(k),  the  Personal  Representations  (other  than  the       Personal Tax Representations) shall survive the Closing until 11:59 p.m. Central time on the sixth        anniversary of the Closing Date; provided, however, that if, at any time on or before such sixth        anniversary, any Indemnitee delivers to the applicable Seller a Notice of Claim asserting a breach        of  or  an  inaccuracy  in  any  of  the  Personal  Representations  (other  than  the  Personal  Tax        Representations), then the claim asserted in such notice shall survive such sixth anniversary until        such time as such claim is fully and finally resolved.                    (ii)  Subject to Section 9.1(k), the Personal Tax Representations shall survive       the Closing until 11:59 p.m. Central time on the date that is 60 days after the expiration of the        applicable Tax-related statute of limitations (as it may be extended, it being understood that any        extension  that  is  voluntarily  granted  by  Purchaser  and  was  not  requested  by  a  Governmental        Entity shall be disregarded) applicable to the subject matter of the Personal Tax Representation in        question; provided, however,  that  if,  at  any  time  on  or  before  the  applicable  expiration  date        referred to in this sentence, any Indemnitee delivers to the applicable Seller a Notice of Claim                                          23  

 

         asserting a breach of or an inaccuracy in any of the Personal Tax Representations, then the claim        asserted in such notice shall survive such expiration date until such time as such claim is fully and        finally resolved.              (e)   Fundamental  Company  Representations.   Subject  to Section 9.1(k),  the  Fundamental  Company  Representations shall  survive  the  Closing  until  11:59  p.m. Central time  on  the  sixth  anniversary  of  the  Closing  Date; provided, however, that  if,  at any  time  on  or  before  such sixth  anniversary, any Indemnitee delivers to the Sellers’ Representative a Notice of Claim asserting a breach  of or an inaccuracy in any of the Fundamental Company Representations, then the claim asserted in such  notice shall survive such sixth anniversary until such time as such claim is fully and finally resolved.               (f)   Covenants and Agreements.                       (i)   Subject  to Section 9.1(f)(ii),  the  rights  of  the  Indemnitees  to  be        indemnified,  compensated  and  reimbursed  with  respect  to  any  breach  of  any  covenant  or        agreement of any Seller contained in this Agreement that by its terms is to be performed at or        prior to the Closing shall survive the Closing until 11:59 p.m. Central time on the date that is 18        months after the Closing Date; provided, however, that if, at any time on or before the date that is        18  months  after  the  Closing  Date,  any  Indemnitee  delivers  to  such  Seller  a  Notice  of  Claim        asserting a breach of any such covenant or agreement by such Seller, then the claim asserted in        such notice shall survive until such time as such claim is fully and finally resolved.                       (ii)  The  rights  of  the  Indemnitees  to  be  indemnified,  compensated  and        reimbursed with respect to any breach of any covenant or agreement of any Seller contained in        Section 4.5, Section 4.9, Section 4.10 or Section 4.11,  and  (except  as  otherwise  provided  in        Sections 9.1(g), 9.1(i) and 9.1(j)) all other covenants and agreements of any Seller contained in        this Agreement that by their terms are to be performed in whole or in part after the Closing, shall        survive the Closing until 11:59 p.m. Central time on the date that is the later of (A) 60 days after        the expiration of the applicable statute of limitations (as it may be extended, it being understood        that  any  extension  that  is voluntarily  granted  by  Purchaser  and  was  not  requested  by  a        Governmental  Entity  shall  be  disregarded)  applicable  to  the  subject  matter  of  the  particular        covenant or agreement in question and (B) the date on which such covenant or agreement is fully        performed (such latest date, the “Seller Covenant Expiration Date”); provided, however, that if, at        any time on or before the Seller Covenant Expiration Date, any Indemnitee delivers to such Seller        a Notice of Claim asserting a breach of any such covenant or agreement by such Seller, then the        claim asserted in such notice shall survive the Seller Covenant Expiration Date until such time as        such claim is fully and finally resolved.                     (iii) The  rights  of  the  Indemnitees  to  be  indemnified,  compensated  and        reimbursed with respect to any breach of any covenant or agreement of the Company contained in        the Share Issuance Agreement that by its terms is to be performed at or prior to the Closing shall        survive the Closing until 11:59 p.m. Central time on the date that is 18 months after the Closing        Date; provided,  however, that if, at any time  on or before  the  date  that is  18 months  after the        Closing Date, any Indemnitee delivers to the Sellers’ Representative a Notice of Claim asserting a        breach of any such covenant or agreement by the Company, then the claim asserted in such notice        shall survive until such time as such claim is fully and finally resolved.               (g)   Disclosed  Pending  Legal  Proceedings.   The  rights  of  the  Indemnitees  to  be  indemnified,  compensated  and  reimbursed  with  respect  to  any  of  the  matters  described  in Section  9.2(a)(vii) shall survive the Closing until 11:59 p.m. Central time on the third anniversary of the Closing  Date; provided, however, that if, at any time on or before such third anniversary, any Indemnitee delivers  to the Sellers’ Representative a Notice of Claim seeking indemnification, compensation or reimbursement                                          24  

 

with respect  to any  of  such matters, then the claim  asserted in such notice  shall  survive such third  anniversary until such time as such claim is fully and finally resolved.                (h)   Purchaser  Representations.  All  representations  and  warranties  made  by  Purchaser  in  this  Agreement  (other  than  the  representation  and  warranty  in  Section &#0;.&#0;,  which  shall expire on  the  later  of  the  sixth  anniversary  of  the  Closing  Date  and  the expiration of the applicable  statute of limitations) and all covenants of Purchaser in this Agreement shall terminate and expire as of  the Closing, and any liability of Purchaser with respect to such representations, warranties and covenants  shall  thereupon  cease;  provided, however,  that  all  covenants  of  Purchaser  to  be  performed  after  the  Closing shall remain in full force and effect until performed in accordance with their terms.               (i)   Securityholder  Claims.  The  rights  of  the  Indemnitees  to  be  indemnified, compensated  and  reimbursed  with  respect  to  any  of  the  matters  described  in  Section  9.2(a)(v) shall  survive the Closing until 11:59 p.m. Central time on the sixth anniversary of the Closing Date; provided,  however, that if, at any time on or before such sixth anniversary, any Indemnitee delivers to the Sellers’  Representative a Notice of Claim seeking indemnification, compensation or reimbursement with respect  to any of such matters, then the claim asserted in such notice shall survive such sixth anniversary until  such time as such claim is fully and finally resolved.               (j)   Non-Meritorious  Claims.  The  rights  of  the  Indemnitees  to  be  indemnified, compensated  and  reimbursed  with  respect  to  any  non-meritorious  claim  pursuant  to  Section  9.2(a)(vi)  shall survive the Closing until the expiration date of the claim period under this Section 9.1 that would  apply if such claim were meritorious; provided, however, that if, at any time on or before such expiration  date, any Indemnitee delivers to the Sellers’ Representative a Notice of Claim seeking indemnification,  compensation or reimbursement with respect to any such matter, then the claim asserted in such notice  shall survive such expiration date until such time as such claim is fully and finally resolved.               (k)   Fraud.  Notwithstanding anything to the contrary contained in this  Section 9.1, the limitations set forth in Sections 9.1(a), 9.1(b), 9.1(c), 9.1(d) and 9.1(e) shall not apply in the event of  fraud committed by or on behalf of the Company relating to any of the Company Representations or in  the event of fraud committed by or on behalf of any Seller relating to any of the Personal Representations  (it being understood that any claim for fraud may be asserted until the expiration of the applicable statute  of limitations).                (l)   Representations Not Limited. The Sellers hereby agree that: (i) the Indemnitees’ rights  to  indemnification,  compensation  and  reimbursement  contained  in  this  Section 9 relating  to  the  representations,  warranties  and  covenants  of  the  Sellers  in  this  Agreement  and  of  the  Company  in  the  Share Issuance Agreement are part of the basis of the bargain contemplated by this Agreement; and (ii)  such representations, warranties and covenants, and the rights and remedies that may be exercised by the  Indemnitees with respect thereto, shall not be waived, limited or otherwise affected by or as a result of  (and the Indemnitees shall be deemed to have relied upon such representations, warranties and covenants  notwithstanding)  any  knowledge  on  the  part  of  any  of  the  Indemnitees  or  any  of  their  respective  Representatives,  regardless  of  whether  such  knowledge  was  obtained  through  any  investigation  by  any  Indemnitee  or  any  Representative  of  any  Indemnitee  or  through  disclosure  by  a  Seller,  any  Acquired  Company or any other Person, and regardless of whether such knowledge was obtained before or after the  execution and delivery of this Agreement or the Share Issuance Agreement.         9.2   Indemnification.                                           25  

 

            (a)   Indemnification for Company Matters.  From and after the Closing, subject to the limitations  set  forth  in  this Section 9 (but  without  limiting  the  rights  of  the  Indemnitees  under  the  indemnification  provisions  of  the  Share  Issuance  Agreement),  each Seller  shall hold  harmless  and  indemnify  each of the  Indemnitees  from  and  against,  and  shall  compensate  and  reimburse  each  of the  Indemnitees for, such Seller’s Pro Rata Portion of any Damages that are suffered or incurred at any time  by any of the Indemnitees or to which any of the Indemnitees may otherwise directly or indirectly become  subject at any time (regardless of whether such Damages relate to any third party claim) and which arise  directly or indirectly from or are a direct or indirect result of, or directly or indirectly relate to:                      (i)   any  breach  of  or  inaccuracy  in  any  Company  Representation  as  of  the       Agreement Date (without giving effect to (A) any materiality or similar qualification limiting the        scope of such representation or warranty (for clarity, “Knowledge” qualifiers, dollar thresholds,        the  word  “Material”  in  the  terms  “Material  Contract”  and  “Material  Adverse  Effect”  and  any        materiality  qualification  used  to  define  what  constitutes  a  Material  Contract  will  not  be        disregarded) or (B) any update of or modification to the Company Disclosure Schedule made or        purported to have been made on or after the Agreement Date);                     (ii)  any  breach  of  or  inaccuracy  in  (A)  any  Company  Representation  as  if       such representation or warranty were made at and as of the Closing (other than representations        and warranties which by their terms are made only as of the Agreement Date or another specific        earlier date) or (B) the Company Closing Certificate (in each case, without giving effect to (1)        any materiality or similar qualification limiting the scope of such representation or warranty (for        clarity,  “Knowledge”  qualifiers,  dollar  thresholds,  the  word  “Material”  in  the  terms  “Material        Contract”  and “Material Adverse Effect” and  any materiality qualification used to define  what        constitutes a Material Contract will not be disregarded) or (2) any update of or modification to the        Company Disclosure Schedule made or purported to have been made on or after the Agreement        Date);                       (iii) regardless  of  the  disclosure  of  any  matter  set  forth  in  the  Company       Disclosure Schedule, any inaccuracy in any information set forth in the Company Consideration        Spreadsheet, in the Sellers’ Consideration Spreadsheet or in Schedule I, including any inaccuracy        or failure to calculate properly any amount set forth in the Company Consideration Spreadsheet,        in the Sellers’ Consideration Spreadsheet or in Schedule I;                     (iv)  any breach of any covenant or agreement of the Company in the Share       Issuance Agreement that by its terms is to be performed at or prior to the Closing;                     (v)   regardless  of  the  disclosure  of  any  matter  set  forth  in  the  Company       Disclosure Schedule, any claim asserted or held by any current, former or alleged securityholder        of any Acquired Company (A) relating to this Agreement, any other Transaction Document or        any  of  the  Contemplated  Transactions  or  any  failure  or  alleged  failure  to  comply  with  any        provision  of  the  Charter  Documents  of  any  Acquired  Company  or  the  Existing  Shareholders’        Agreement,  (B)  alleging  any  ownership  of,  interest  in  or  right  to  acquire  any  shares  or  other        securities of any Acquired Company or (C) that is in any way inconsistent with, or that involves        an  allegation  of  facts  inconsistent  with,  any  of  the  information  set  forth  in Section  2.3 of  the        Share Issuance Agreement, in Part 2.3 of the Company Disclosure Schedule, in Schedule I or in        the Sellers’ Consideration Spreadsheet;                      (vi)  subject to Section 9.3(c)(ii), 50% of all fees (including attorneys’ fees),       charges, costs (including costs of investigation) and expenses relating to the defense of any non-       meritorious claim asserted or held by any Person that, if meritorious, would otherwise entitle an                                          26  

 

      Indemnitee to indemnification, compensation or reimbursement under this Section 9.2(a) (except        that 100% of all fees (including attorneys’ fees), charges, costs (including costs of investigation)        and expenses relating to the defense of any claim (whether meritorious or non-meritorious) of the        type referred to in Section 9.2(a)(v) will be indemnified, compensated and reimbursed);                     (vii) any Legal Proceeding referred to in Part 2.14(c) or Part 2.19(a)-1 of the       Company Disclosure Schedule; or                     (viii) regardless  of  the  disclosure  of  any  matter  set  forth  in  the  Company       Disclosure  Schedule,  any  fraud  committed  by  or  on  behalf  of  the  Company  relating  to  any        Company Representation.               (b)   Indemnification for Individual Seller Matters.  From and after the Closing (and without limiting the rights of the Indemnitees under the indemnification provisions of the Share Issuance  Agreement, but subject to the limitations set forth in this Section 9), each Seller shall hold harmless and  indemnify  each  of the  Indemnitees  from  and  against,  and  shall  compensate  and  reimburse  each  of the  Indemnitees for, any Damages that are directly or indirectly suffered or incurred at any time by any of the  Indemnitees or to which any of the Indemnitees may otherwise directly or indirectly become subject at  any time (regardless of whether such Damages relate to any third party claim) and which arise directly or  indirectly from or as a direct or indirect result of, or directly or indirectly relate to:                     (i)   any  breach  of  or  inaccuracy  in  any  Personal  Representation  as  of  the       Agreement  Date  (without  giving  effect  to  any  materiality  or  similar  qualification  limiting  the        scope of such representation or warranty, solely for purposes of calculating Damages but not for        purposes  of  determining  any  breach  of  or  inaccuracy  in  such  representation  or  warranty)  (for        clarity, “Knowledge” qualifiers will not be disregarded);                      (ii)  any  breach  of  or  inaccuracy  in  any  Personal  Representation  as  if  such       representation  or  warranty  were  made  at  and as  of the  Closing,  other than  representations  and        warranties which by their terms are made only as of the Agreement Date (without giving effect to        any  materiality  or  similar  qualification  limiting  the  scope  of  such  representation  or  warranty,        solely for purposes of calculating Damages but not for purposes of determining any breach of or        inaccuracy in such representation or warranty) (for clarity, “Knowledge” qualifiers  will not be        disregarded);                      (iii) any breach of any covenant or agreement of such Seller set forth in this       Agreement;                     (iv)  regardless  of  the  disclosure  of  any  matter  set  forth  in  the  Company       Disclosure Schedule, any Transaction Tax levied by any Taxing Authority with respect to the sale        of such Seller’s Purchased Shares; or                     (v)   regardless  of  the  disclosure  of  any  matter  set  forth  in  the  Company       Disclosure Schedule, any action taken by any Taxing Authority pursuant to Section 281 of the IT        Act to declare void or otherwise impede the sale to Purchaser of the Purchased Shares sold by        such Seller pursuant to this Agreement.   For  the  avoidance  of  doubt,  no  Seller  will  be  liable  for  (A)  any  breach  of  or  inaccuracy in  any  other  Seller’s Personal Representations, (B) any breach of any covenant or agreement of any other Seller set  forth in this Agreement, or (C) any fraud committed solely by any other Seller.                                          27  

 

            (c)   Damage to Purchaser.                    (i)   The parties acknowledge and agree that if an Acquired Company suffers,       incurs or otherwise becomes subject to any Damages as a result of, or in connection with, any        breach of or inaccuracy in any representation, warranty, covenant or obligation set forth in this        Agreement or in connection with any matter referred to in this Section 9.2, then, without limiting        the amount of any other Damages that Purchaser or any other Indemnitee may suffer, incur or        otherwise  become  subject to (other than  Purchaser Derivative  Damages), Purchaser and Parent        shall  be  deemed,  by  virtue  of  Purchaser’s  purchase  of  the  Purchased  Shares,  to  have  incurred        Damages in an amount equal to the aggregate dollar amount of the Damages suffered or incurred        by such Acquired Company or to which such Acquired Company has otherwise become subject        multiplied by the Purchaser Secondary Ownership Percentage.                      (ii)  The parties acknowledge and agree that if an Indemnitee suffers, incurs       or otherwise becomes subject to any Damages (other than Purchaser Derivative Damages) as a        result of any matter referred to in Section 9.2(a), then (A) each Seller shall hold harmless and        indemnify  such  Indemnitee  from  and  against,  and  shall  compensate  and  reimburse  such        Indemnitee for, such Seller’s Pro Rata Portion of the dollar amount of such Damages multiplied        by the Secondary Specified Fraction (it being understood and agreed that the Company shall hold        harmless and indemnify such Indemnitee from and against, and shall compensate and reimburse        such Indemnitee  for,  the  remaining  portion  of  such  Damages);  and  (B)  for  purposes  of        determining  whether  the  Threshold  Amount  specified  in Section 9.3(a) is  satisfied  only,  such        Indemnitee will be deemed to have incurred Damages in an amount equal to the dollar amount of        such Damages multiplied by the Secondary Allocation Gross-Up Factor.          9.3   Limitations.                (a)   Threshold.  Subject to Section 9.3(b), the Sellers shall not be required to make any indemnification payment (including, for the avoidance of doubt, any payment by the Escrow Agent to  an  Indemnitee  from  the  Escrow  Fund  in  accordance  with Section 9.6 and  the  Escrow  Agreement)  pursuant to Section 9.2(a)(i) or Section 9.2(a)(ii) for any breach of or inaccuracy in any General Company  Representation  or  any  Company  Compliance  Representation  or  pursuant  to Section 9.2(a)(vi) (with  respect to breaches of or inaccuracies in representations and warranties to which the Threshold Amount is  applicable)  or Section 9.2(a)(vii) (with  respect  to  Legal  Proceedings  identified  on  Part  2.14(c)  or  Part  2.19(a)-1 of the Company Disclosure Schedule that are not Specified Tax Proceedings) until such time as  the total amount of all Damages that have been directly or indirectly suffered or incurred by any one or  more of the Indemnitees, or to which any one or more of the Indemnitees has or have otherwise directly  or  indirectly  become  subject,  in  connection  with  any  breach  of  or  inaccuracy  in  any  of  the  General  Company Representations or the Company Compliance Representations or in connection with the matters  referred  to  in Section 9.2(a)(vi) (with  respect  to  breaches  of  or  inaccuracies  in  representations  and  warranties  to  which  the  Threshold  Amount  is  applicable)  or Section 9.2(a)(vii) (with  respect  to  Legal  Proceedings identified on Part 2.14(c) or Part 2.19(a)-1 of the Company Disclosure Schedule that are not  Specified Tax Proceedings) exceeds $60,000,000 in the aggregate for all such Damages (the “Threshold  Amount”). If the total amount of such Damages exceeds the Threshold Amount, then: (i) with respect to  the  first  $60,000,000  of  such  aggregate  Damages,  the  Indemnitees  shall  be  entitled  to  be  indemnified  against and compensated and reimbursed for $30,000,000 of such Damages; and (ii) with respect to the  portion of such aggregate Damages exceeding the Threshold Amount, the Indemnitees shall be entitled to  be indemnified against and compensated and reimbursed for the entire amount of such Damages.               (b)   Applicability of Threshold.  For the avoidance of doubt, the limitation set forth in Section 9.3(a) shall not apply to (and shall not limit the indemnification or other obligations of any Seller                                          28  

 

for or with respect to): (i) breaches of or inaccuracies in any of the Company Tax Representations or any  of  the  Fundamental  Company  Representations;  (ii)  the  matters  referred  to  in Sections 9.2(a)(iii),  9.2(a)(iv), 9.2(a)(v), 9.2(a)(vi) (with  respect  to  breaches  of  or  inaccuracies  in  representations  and  warranties  to  which  the  Threshold  Amount  is  not  applicable), Section 9.2(a)(vii) (with  respect  to  Specified Tax Proceedings) and 9.2(a)(viii); or (iii) the matters referred to in Section 9.2(b).               (c)   Certain Other Limitations.                   (i)   The Sellers shall not be required to make any indemnification payment       (including, for the avoidance of doubt, any payment by the Escrow Agent to an Indemnitee from        the Escrow Fund in accordance with Section 9.6 and the Escrow Agreement) pursuant to Section        9.2(a)(vii) with respect to any Specified Tax Proceeding until such time as the total amount of all        Damages (calculated after giving effect to Section 9.2(c)(i)) that have been directly or indirectly        suffered or incurred by any one or more of the Indemnitees, or to which any one or more of the        Indemnitees  has  or  have  otherwise  directly  or  indirectly  become subject,  in  connection  with        Specified Tax Proceedings exceeds an amount equal to $53,000,000 multiplied by the Purchaser        Secondary  Ownership  Percentage  (the  “Apportioned  Litigation  Reserve  Amount”).  If  the  total        amount  of  such  Damages  with  respect  to  Specified  Tax  Proceedings  exceeds  the  Apportioned        Litigation  Reserve  Amount,  then  (subject  to  the  limitations  set  forth  in Section 9.3(a)),  the        Indemnitees shall be entitled to be indemnified against and compensated and reimbursed for the        portion of such aggregate Damages that exceeds the Apportioned Litigation Reserve Amount.                     (ii)  Notwithstanding  anything  to  the  contrary  contained  in  this  Agreement:       (A) any indemnification, compensation or reimbursement sought under Section 9.2(a)(vi) for a       non-meritorious claim will be subject to the same limits under this Section 9.3 that would apply if       such claim were meritorious; (B) in the event of the assertion or commencement by any Person of       any claim or Legal Proceeding against an Acquired Company with respect to which the Sellers       are obligated to hold harmless, indemnify, compensate or reimburse any Indemnitee pursuant to       Section 9.2(a)(vi), the aggregate amount of Damages that Purchaser and Parent will be deemed to       have suffered, incurred or otherwise become subject to for purposes of Section 9.2(a)(vi) will be       calculated  after  giving  effect  to Section 9.2(c)(i);  and  (C)  in  the  event  of  the  assertion  or       commencement by any Person of any claim or Legal Proceeding against Purchaser with respect to       which  the  Sellers  are  obligated  to  hold  harmless,  indemnify,  compensate  or  reimburse  any       Indemnitee pursuant to Section 9.2(a)(vi), the aggregate amount of Damages that Purchaser will       be  deemed  to  have  suffered,  incurred  or  otherwise  become  subject  to  for  purposes  of Section       9.2(a)(vi) will be calculated after giving effect to clause “(A)” of Section 9.2(c)(ii).             (d)   Liability Caps.                   (i)   The total dollar amount of indemnification payments (including, for the       avoidance of doubt, any payment by the Escrow Agent to an Indemnitee from the Escrow Fund in        accordance with Section 9.6 and the Escrow Agreement) that the Sellers can be required to make        to the Indemnitees pursuant to Sections 9.2(a)(i) and  9.2(a)(ii) for breaches of Company        Representations (other than Fundamental Company Representations) and  pursuant to Section        9.2(a)(vii) shall be limited to an  amount equal to ****% of the Price Per Secondary Share        multiplied by the aggregate number of Purchased Shares (determined on  an  as-converted-to-       Company Ordinary Shares basis) sold by the Sellers to Purchaser pursuant to this Agreement        (such total dollar amount, the “General Cap Amount”). For the avoidance of doubt, the limitation        set forth in the immediately preceding sentence shall not apply to (and shall not limit the        indemnification or other obligations of any Seller for or with respect to): (A) breaches of or        inaccuracies in any of the Fundamental Company Representations; (B) the matters referred to in        Sections 9.2(a)(iii)         Confidential Information has been omitted from this page and replaced by the asterisks appearing on this page.         Such  Confidential  Information  has  been  filed  separately  with  the  Securities  and  Exchange  Commission.         Confidential treatment has been requested with respect to this omitted information under Rule 406 under the        Securities Act of 1933, as amended, and Rule 24b-2 under the Securities Exchange Act of 1934, as amended.                                         29  

 

      through 9.2(a)(vi) or Section 9.2(a)(viii) (the  matters  referred  to  in  clauses  “(A)”  and  “(B),”        collectively, the “Uncapped Matters”); or (C) the matters referred to in Section 9.2(b).                      (ii)  The total dollar amount of indemnification payments (including, for the       avoidance of doubt, any payment by the Escrow Agent to an Indemnitee from the Escrow Fund in        accordance with Section 9.6 and the Escrow Agreement) that any Seller shall be required to make        to the Indemnitees pursuant to Section 9.2(a) and Section 9.2(b) shall not exceed an amount equal        to  the  Price  Per  Secondary  Share multiplied  by the  aggregate  number  of  Purchased  Shares        (determined  on  an  as-converted-to-Company  Ordinary  Shares  basis)  sold  by  such  Seller  to        Purchaser pursuant to this Agreement (it being understood that, notwithstanding the foregoing,        there shall be no limitation on the liability of any Seller who committed or otherwise participated        in any fraud for such fraud, and such Seller’s liability for such fraud and all Damages related to        such  fraud  shall  be  disregarded  in  determining  whether  the  dollar  limitation  described  in  this        Section 9.3(d)(ii) has been exceeded).          9.4   No  Contribution.  Each  Seller  waives,  and  acknowledges  and  agrees  that  such  Seller  shall not have and shall not exercise or assert (or attempt to exercise or assert) any right of contribution,  right of indemnity or advancement of expenses or other right or remedy against any Acquired Company  or  any  Affiliate  or  Representative  of  any  Acquired  Company  in  connection  with  any  indemnification  obligation or any other liability to which such Seller may become subject under or in connection with this  Agreement or any other Transaction Document. Effective as of the Closing, each of the Sellers and the  Sellers’  Representative  expressly  waive  and  release  any  and  all  rights  of  subrogation,  contribution,  advancement and indemnification, and all similar claims, against Purchaser, each Acquired Company or  any of Purchaser’s or the Acquired Companies’ respective Affiliates or Representatives.         9.5   Defense of Third Party Claims.                (a)   In the event of the assertion or commencement by any Person of any claim or Legal Proceeding (whether against an Acquired Company, Purchaser or any other Person) with respect to  which  any  Seller  may  become  obligated  to  hold  harmless,  indemnify,  compensate  or  reimburse  any  Indemnitee  pursuant  to  this Section 9 (other  than  a  claim  or  Legal  Proceeding  relating  to  any  matter  described in Section 9.2(b)(iv)), Purchaser shall be obligated to proceed with the defense of such claim or  Legal Proceeding on its own; provided, however, that if such claim or Legal Proceeding is asserted or  commenced  against  any  Acquired  Company,  then  (x)  the  Company  shall  defend  such  claim  or  Legal  Proceeding with counsel selected by Purchaser, in which case, to the extent appropriate, all references to  Purchaser in clauses “(i)” and “(ii)” of this Section 9.5(a) shall be deemed to refer to the Company, (y)  Purchaser shall have the sole and absolute right and authority to determine and conduct the defense of  such claim or Legal Proceeding, including with respect to any decision to settle, adjust or compromise  such claim or Legal Proceeding and (z) all fees (including attorneys’ fees), charges, costs (including costs  of investigation) and expenses relating to the defense of such claim or Legal Proceeding shall be borne  and  paid  exclusively  by  the  Company.  In  connection  with  the  defense  of  any  such  claim  or  Legal  Proceeding:                     (i)   each  Seller  shall  make  available  to  Purchaser  any  documents  and       materials  in  such  Seller’s  possession  or  control  or  in  the  control  of  any  of  such  Seller’s        Representatives that may be necessary to the defense of such claim or Legal Proceeding;                                           30  

 

                     (ii)  the Sellers’ Representative shall be entitled on behalf of the Sellers (or,        in the case of a §9.2(b) Claim, the applicable Seller shall be entitled), at the Sellers’ expense (A)        to consult with Purchaser with respect to, but not to determine or conduct, the defense of such        claim  and  (B)  to  receive  copies  of  complaints,  pleadings,  notices  and  material  written        communications  with  respect  to  such  claim; provided, however,  that  Purchaser  shall  not  be        required to disclose any information to the Sellers’ Representative (or, in the case of a §9.2(b)        Claim, the applicable Seller) if such disclosure would reasonably be expected to jeopardize the        protection of the attorney-client privilege, work product or similar protection or other applicable        legal privilege; and                     (iii) Purchaser shall have the right to settle, adjust or compromise such claim        or  Legal  Proceeding; provided, however, that  if  Purchaser  settles,  adjusts  or  compromises  any        such claim or Legal Proceeding without the consent of the Sellers’ Representative (or, in the case        of a §9.2(b) Claim, the applicable Seller), such settlement, adjustment or compromise shall not be        determinative  of  the  amount  of  Damages  incurred  by  the  Indemnitee  in  connection  with  such        claim or Legal Proceeding.    Purchaser shall give the Sellers’ Representative (or, in the case of a §9.2(b) Claim, the applicable Seller)  prompt notice of the commencement of any Legal Proceeding against Purchaser with respect to which  Purchaser intends to demand indemnification from the Sellers; provided, however, that any failure on the  part of Purchaser to promptly notify the Sellers’ Representative (or, in the case of a §9.2(b) Claim, the  applicable Seller) of such Legal Proceeding shall not limit any of the obligations of any Seller under this  Section 9.5 (except to the extent such failure materially prejudices the defense of such Legal Proceeding).                (b)   Notwithstanding  anything  to  the contrary  contained  in  this Section 9.5 or  elsewhere in this Agreement, in the event of the assertion or commencement by any Taxing Authority of  any claim or Legal Proceeding with respect to which any Seller may become obligated to hold harmless,  indemnify, compensate or reimburse any Indemnitee pursuant to Section 9.2(b)(iv), the defense of such  claim shall be conducted in accordance with Schedule 10.         9.6   Indemnification  Claim  Procedure.  Any  claim  for  indemnification,  compensation  or  reimbursement  pursuant  to Section 9 (other  than  a  claim  for  indemnification,  compensation  or  reimbursement pursuant to Section 9.2(b)(iv)) shall be brought and resolved exclusively as follows (and,  at the option of any Indemnitee, any claim based upon fraud may be brought and resolved as follows):               (a)   Notice of Claim.  If any Indemnitee has or claims to have incurred, paid, accrued,  reserved or suffered, or believes in good faith that it may incur, pay, accrue, reserve or suffer, Damages  for which it is  or may be  entitled to be  held harmless,  indemnified,  compensated or reimbursed under  Section 9.2 (or  for  which  it  is  or  may  be  entitled  to  a  monetary  remedy  in  the  case  of  fraud),  such  Indemnitee may deliver a notice of claim (a “Notice of Claim”) to the Sellers’ Representative (or, if the  notice sets forth a §9.2(b) Claim, to the applicable Seller). Each Notice of Claim shall: (i) contain a brief  description of the facts and circumstances supporting such Indemnitee’s claim; (ii) if practicable, contain  a good faith, non-binding, preliminary estimate of the amount to which the Indemnitee might be entitled  (the aggregate amount of such estimate, as it may be modified by such Indemnitee in good faith from time  to time, being referred to as the “Claimed Amount”); and (iii) state whether the claim described in such  notice  is  being  made  pursuant  to Section 9.2(a) (a  “§9.2(a) Claim”)  or  pursuant  to Section 9.2(b) (a  “§9.2(b) Claim”). Each §9.2(a) Claim shall be asserted against all of the Sellers (in accordance with their  respective Pro Rata Portions). The Sellers’ Representative and the Sellers hereby waive, and agree not to  assert, any right or defense they might otherwise have in connection with any delay by Purchaser or any  other Indemnitee in delivering a Notice of Claim, including the defense of laches and any similar defense,                                          31  

 

notwithstanding any prejudice such delay may cause to the interests of the Sellers’ Representative or any  of the Sellers.                (b)   Dispute Procedure.  During the 30-day period commencing upon delivery by an Indemnitee to the Sellers’ Representative (or, in the case of a §9.2(b) Claim, to the applicable Seller) of a  Notice of Claim (the “Dispute Period”), the Sellers’ Representative (or, in the case of a §9.2(b) Claim, the  applicable Seller) may deliver to the Indemnitee who delivered the Notice of Claim a written response  (the  “Response  Notice”)  in  which  the  Sellers’  Representative  (or,  in  the  case  of  a  §9.2(b) Claim,  the  applicable Seller): (i) agrees that the full Claimed Amount is owed to the Indemnitee; (ii) agrees that part,  but not all, of the Claimed Amount is owed to the Indemnitee; or (iii) indicates that no part of the Claimed  Amount is owed to the Indemnitee. If the Response Notice is delivered in accordance with clause “(ii)” or  clause “(iii)” of the preceding sentence, the Response Notice shall also contain a brief description of the  facts and circumstances supporting the Sellers’ Representative’s (or, in the case of a §9.2(b) Claim, the  applicable Seller’s) claim that only a portion or no part of the Claimed Amount is owed to the Indemnitee,  as the case may be. Any part of the Claimed Amount that is not agreed to be owed to the Indemnitee  pursuant to the Response Notice (or the entire Claimed Amount, if the Sellers’ Representative (or, in the  case of a §9.2(b) Claim, the applicable Seller) asserts in the Response Notice that no part of the Claimed  Amount is owed to the Indemnitee) is referred to as the “Contested Amount” (it being understood that the  Contested  Amount  shall  be  modified  from  time  to  time  to  reflect  any  good  faith  modifications  by the  Indemnitee to the Claimed Amount). If a Response Notice is not received by the Indemnitee before the  expiration of the Dispute Period, then the Sellers’ Representative (on behalf of the Sellers) (or, in the case  of  a  §9.2(b) Claim,  the  applicable Seller)  shall  be  conclusively  deemed  to  have  agreed  that  the  full  Claimed Amount is owed to the Indemnitee.               (c)   Payment of Claimed Amount.  If: (i) the Sellers’ Representative (or, in the case of a §9.2(b) Claim, the applicable Seller) delivers a Response Notice to the Indemnitee agreeing that the  full  Claimed  Amount  is  owed  to the  Indemnitee;  or  (ii) the  Sellers’  Representative  (or, in the  case  of  §9.2(b) Claim, the applicable Seller) does not deliver a Response Notice during the Dispute Period, then:                    (i)   in  the  case  of  a  §9.2(a) Claim: (A)  Purchaser  and  the Sellers’       Representative  shall  instruct  the  Escrow  Agent  to  pay  the  Claimed  Amount  to  the  Indemnitee        from the Escrow Fund in accordance with this Section 9.6 and the Escrow Agreement and (B) if        the Remaining Available Escrow Amount is insufficient to cover the full Claimed Amount, then,        subject to the limitations set forth in Section 9.3(d), each Seller shall, within 10 Business Days        following the earlier of the delivery of such Response Notice and the expiration of the Dispute        Period, pay such Seller’s Pro Rata Portion of the amount of such shortfall to the Indemnitee; and                      (ii)  in  the  case  of  a  §9.2(b) Claim,  the  applicable Seller shall,  within  10       Business Days following the earlier of the delivery of such Response Notice and the expiration of        the Dispute Period, pay the Claimed Amount to the Indemnitee.               (d)   Payment of Agreed Amount.  If the Sellers’ Representative (or, in the case of a §9.2(b) Claim, the  applicable Seller) delivers  a  Response Notice to the  Indemnitee  during the  Dispute Period  agreeing  that  less  than  the  full  Claimed  Amount  is  owed  to  the  Indemnitee  (the  “Agreed Amount”), then:                    (i)   in  the  case  of  a  §9.2(a) Claim:  (A) Purchaser  and  the Sellers’       Representative shall instruct the Escrow Agent to pay the Agreed Amount to the Indemnitee from        the Escrow Fund in accordance with this Section 9.6 and the Escrow Agreement; and (B) if the        Remaining  Available  Escrow  Amount  is  insufficient  to  cover  the  full  Agreed  Amount,  then,        subject  to  the  limitations  provided  for  in Section 9.3(d), each  Seller  shall,  within  10  Business                                          32  

 

         Days following the delivery of such Response Notice, pay such Seller’s Pro Rata Portion of the        amount of such shortfall to the Indemnitee; and                     (ii)  in  the  case  of  a  §9.2(b) Claim,  the  applicable Seller shall,  within  10        Business Days following the delivery of such Response Notice, pay the Agreed Amount to the        Indemnitee.               (e)   Resolution Between the Parties.  If the Sellers’ Representative (or, in the case of  a §9.2(b) Claim, the applicable Seller) delivers a Response Notice to the Indemnitee during the Dispute  Period indicating that there is a Contested Amount, the Sellers’ Representative (or, in the case of a §9.2(b)  Claim, the applicable Seller) and the Indemnitee shall attempt in good faith to resolve the dispute related  to the Contested Amount. Each offer by an Indemnitee to settle a dispute related to a Contested Amount  with  respect  to  a  §9.2(a) Claim  shall  be  made  to  the  Sellers’  Representative  in  its  capacity  as  representative of all Sellers (in accordance with their respective Pro Rata Portions). If the Indemnitee and  the Sellers’ Representative (or, in the case of a §9.2(b) Claim, the applicable Seller) resolve such dispute,  then their resolution of such dispute shall be binding on the Sellers (or, in the case of a §9.2(b) Claim, the  applicable Seller) and such Indemnitee, and a settlement agreement stipulating the amount owed to the  Indemnitee (the “Stipulated Amount”) shall be signed by the Indemnitee and the Sellers’ Representative  (on behalf of the Sellers) (or, in the case of a §9.2(b) Claim, the applicable Seller). In the case of a §9.2(a)  Claim,  Purchaser  and  the  Sellers’  Representative  shall,  following  the  execution  of  such  settlement  agreement, instruct the Escrow Agent to pay the Stipulated Amount to the Indemnitee from the Escrow  Fund in accordance with this Section 9.6 and the Escrow Agreement. If the Remaining Available Escrow  Amount is insufficient to cover the full Stipulated Amount, then, subject to the limitations provided for in  Section 9.3(d),  each  Seller  shall,  within  10  Business  Days  following  the  execution  of  such  settlement  agreement  (or  such  shorter  period  of  time  as  may  be  set  forth  in  the  settlement  agreement),  pay  such  Seller’s  Pro  Rata  Portion  of the  amount  of  such  shortfall to  the  Indemnitee.   In  the  case  of  a  §9.2(b)  Claim, the applicable Seller shall, within 10 Business Days following the execution of such settlement  agreement,  or  such  shorter  period  of  time  as  may  be  set  forth  in  the  settlement  agreement,  pay  the  Stipulated Amount to the Indemnitee.               (f)   Arbitration.  If the Sellers’ Representative (or, in the case of a §9.2(b) Claim, the  applicable Seller) and the Indemnitee are unable to resolve the dispute relating to any Contested Amount  during the 30-day period commencing upon the delivery of the Response Notice to the Indemnitee, then  the  Sellers’  Representative  or  the  Indemnitee  may  refer  such  dispute  (an  “Arbitrable  Indemnification  Dispute”) to final and binding arbitration for resolution; provided, however, that (i) in no event shall there  be more than one arbitration proceeding relating to any fact, event, circumstance or occurrence (or series  of related facts, events, circumstances or occurrences) that is the subject of both a §9.2(a) Claim and a  claim  for  indemnification,  compensation  or  reimbursement  under  Section  9.2(a)  of  the  Share  Issuance  Agreement and (ii) the existence of any settlement of, or payment with respect to, any indemnification  claim under Section 9.2(a) of the Share Issuance Agreement shall not be used as evidence of the validity  of  any  indemnification  claim  against  the  Sellers  under  this  Agreement  or  of  the  amount  of  Damages  associated with such claim against the Sellers under this Agreement.  Notwithstanding the immediately  preceding sentence, nothing in this Section 9.6(f) shall prevent the Indemnitee from seeking preliminary  injunctive relief or other equitable relief from a court of competent jurisdiction pending settlement of any  Arbitrable Indemnification Dispute.                     (i)   Except  as  otherwise  provided  in  this  Agreement,  any  Arbitrable        Indemnification  Dispute  shall  be  resolved  by  arbitration  in San  Francisco  County,  California,        USA in accordance with JAMS Rules. However, in all events, the provisions contained in this        Agreement shall govern over any conflicting rules which may now or hereafter be contained in        the JAMS Rules. Any judgment upon the award rendered by the arbitrator may be entered in any                                          33  

 

court having jurisdiction over the subject matter thereof. The arbitrator shall have the authority to  grant any equitable and legal remedies that would be available if any judicial proceeding were  instituted to resolve an Arbitrable Indemnification Dispute. The existence of such arbitration and  all submissions, correspondence and evidence relating to the arbitration proceedings shall be kept  confidential by the Sellers’ Representative and the Sellers; provided, however, that such parties  may discuss the arbitration with those of their respective advisors who agree in writing to keep  the  existence  of  such  arbitration  and  the  terms  of  such  Arbitrable  Indemnification  Dispute  confidential.               (ii)  Any  such  arbitration  will  be  conducted  before  a  single  arbitrator  who satisfies the criteria set forth in Section 9.6(f)(iv). The arbitrator will be compensated for his or  her services at a rate to be determined by the Indemnitee and the Sellers’ Representative (or, in  the case of a §9.2(b) Claim, the applicable Seller) or by JAMS, but based upon reasonable hourly  or daily consulting rates for the arbitrator in the event the parties are not able to agree upon his or  her rate of compensation.               (iii) The arbitrator shall be mutually agreed upon by the Indemnitee and the Sellers’ Representative (or, in the case of a §9.2(b) Claim, the applicable Seller). In the event the  Indemnitee  and  the  Sellers’  Representative  (or,  in  the  case  of  a  §9.2(b) Claim,  the  applicable  Seller) are unable to agree on the selection of an arbitrator within 20 days following submission  of the dispute to JAMS by one of the parties, JAMS will have the authority to select an arbitrator  from a list of arbitrators who satisfy the criteria set forth in Section 9.6(f)(iv).               (iv)  The arbitrator shall not have any past or current family, business or other relationship with the Indemnitee, any Acquired Company, the Sellers’ Representative, any of the  Sellers or any Affiliate, director or officer thereof, unless, following full disclosure of all such  relationships, the Indemnitee and the Sellers’ Representative (or, in the case of a §9.2(b) Claim,  the applicable Seller) agree in writing to waive such requirement. In addition, unless otherwise  agreed to between the  Indemnitee and  the  Sellers’ Representative  (or, in the  case of a  §9.2(b)  Claim, the applicable Seller) in writing, the arbitrator shall have at least 15 years’ experience in  the  negotiation  of  definitive  merger  and  acquisition  agreements  governed  by  Delaware  law  involving  privately  held  acquisition  targets; provided, however, that  if  JAMS  is  not  able  to  provide  an  arbitrator  for  such  arbitration  with  the  requisite  experience  set  forth  in  this  clause  “(iv),” such arbitrator shall be a retired Article III U.S. Federal District Court judge.                (v)   The arbitrator shall be instructed to hold up to three days of eight-hour hearings regarding the disputed matter within 60 days of his or her appointment and to render an  award no later than 30 days after the conclusion of such hearings, in each case unless otherwise  mutually agreed in writing by the Indemnitee and the Sellers’ Representative (or, in the case of a  §9.2(b) Claim, the applicable Seller). The final decision of the arbitrator: (A) shall include the amount of the award to the Indemnitee (the “Award Amount”), if any; (B) shall be furnished to the  Sellers’  Representative  (or,  in  the  case  of  a  §9.2(b) Claim,  the  applicable Seller)  and  the Indemnitee  in  writing;  and  (C)  shall  constitute  a  final,  non-appealable  and  conclusive determination of the issue(s) in question, shall be binding upon the Sellers’ Representative (or, in the case of a §9.2(b) Claim, the applicable Seller), the Sellers (if applicable) and the Indemnitee and shall not be contested by any of them.              (vi)  No discovery other than an exchange of relevant documents may occur in any arbitration commenced under the provisions of this Section 9.6(f). The Indemnitee and the  Sellers’ Representative (or, in the case of a §9.2(b) Claim, the applicable Seller) agree to act in  good faith to promptly exchange relevant documents.                                    34  

 

                     (vii) The Indemnitee and the Sellers’ Representative (on behalf of the Sellers)        (or, in the case of a §9.2(b) Claim, the applicable Seller) will each pay 50% of the arbitration fees        and initial compensation to be paid to the arbitrator in any such arbitration and 50% of the costs        of  transcripts  and  other  normal  and  regular  expenses  of  the  arbitration  proceedings; provided,        however, that: (A) the prevailing party in any arbitration will be entitled to an award of attorneys’        fees and costs; and (B) all costs of arbitration, other than those provided for above, will be paid        by the losing party, and the arbitrator will be authorized to determine the identity of the prevailing        party and the losing party. If an Indemnitee is found to be the prevailing party in any arbitration,        the amount of the fees and expenses of such Indemnitee payable by the Sellers (or the applicable        Seller) pursuant to this clause “(vii)” shall be added to the Award Amount.                     (viii) The arbitrator will be authorized to determine whether, and at what rate,        interest should accrue on the Award Amount. The amount of such accrued interest, if any, shall        be added to the Award Amount.                     (ix)  The arbitrator chosen in accordance with these provisions will not have        the power to alter, amend or otherwise affect the terms of these arbitration provisions or any other        provisions contained in this Section 9.6 or elsewhere in this Agreement.               (g)   Payment of Award Amount.  Upon resolution of an Arbitrable Indemnification  Dispute:                     (i)   in  the  case  of  a  §9.2(a) Claim:  (A)  Purchaser  and  the  Sellers’        Representative shall instruct the Escrow Agent to pay the Indemnitee the Award Amount from        the Escrow Fund in accordance with this Section 9.6 and the Escrow Agreement and (B) if the        Remaining  Available  Escrow  Amount is  insufficient  to  cover  the  full  Award  Amount,  then,        subject  to  the  limitations  provided  for in Section 9.3(d),  each  Seller  shall,  within  10  Business        Days following the delivery of the final decision of the arbitrator (or such shorter period as may        be  set  forth in  such  final  decision),  pay  such  Seller’s  Pro  Rata  Portion  of the  amount  of  such        shortfall to the Indemnitee; and                     (ii)  in  the  case  of  a  §9.2(b) Claim,  the  applicable Seller shall,  within  10        Business Days following the delivery of the final decision of the arbitrator, or such shorter period        of time as may be set forth in the final decision, pay the Award Amount to the Indemnitee.   Any ruling or decision of the arbitrator may be enforced in any court of competent jurisdiction.               (h)   Release of Escrow Fund.                       (i)   Promptly (and in any event within 10 Business Days) after the General        Representation Expiration Time, Purchaser will notify the Sellers’ Representative in writing of        the amount that Purchaser determines in good faith to be necessary to satisfy: (A) all Unresolved        §9.2(a) Claims as of the General Representation Expiration Time (such amount being referred to        as the “Unresolved §9.2(a) Claim Retained Amount”); and (B) all Unresolved §9.2(b) Claims as        of  the  General  Representation  Expiration  Time  (each  such  amount  applicable  to  a  particular        Seller being referred to as such Seller’s “Unresolved §9.2(b) Claim Retained Amount”); and                     (ii)  Promptly  after  Purchaser  provides  the  notification  referred  to  in        Section 9.6(h)(i), Purchaser  and  the  Sellers’  Representative  shall,  subject  to Section 9.6(j),        instruct  the  Escrow  Agent  to  release  from  the  Escrow  Fund  in  accordance  with  the  Escrow        Agreement for distribution to each Seller, the  amount, if any, by which: (A) such  Seller’s  Pro                                          35  

 

         Rata  Portion  of  an  amount  equal  to  (1)  the  Remaining  Available  Escrow  Amount  as  of  the        General  Representation  Expiration  Time minus (2)  the  Unresolved  §9.2(a) Claim  Retained        Amount; exceeds (B) such Seller’s Unresolved §9.2(b) Claim Retained Amount.               (i)   Resolution  of  Unresolved  §9.2(a) Claims  and  Unresolved  §9.2(b) Claims.  Following the General Representation Expiration Time:                     (i)   if  an  Unresolved  §9.2(a) Claim  is  finally  resolved,  then  within  10        Business  Days  after  the  final  resolution  of  such  Unresolved  §9.2(a) Claim,  Purchaser  and  the        Sellers’ Representative shall, subject to Section 9.6(j), instruct the Escrow Agent to release from        the  Escrow Fund in accordance  with the  Escrow Agreement for distribution to each  Seller the        amount,  if  any,  by  which:  (A)  such  Seller’s  Pro  Rata  Portion of  an  amount  equal  to  (1)  the        amount, if any, by which the Unresolved §9.2(a) Claim Retained Amount exceeds the aggregate        of all amounts delivered to Purchaser following the General Representation Expiration Time upon        the  resolution  of  Unresolved  §9.2(a) Claims  (such excess  being  referred  to  as  the  “Remaining        §9.2(a) Claim  Retained  Amount”); minus (2)  the  aggregate  amount  of  the  Claimed  Amounts        associated with all remaining Unresolved §9.2(a) Claims; exceeds (B) the aggregate amount of        the  Claimed  Amounts  associated  with  all  remaining  Unresolved  §9.2(b) Claims  applicable  to        such Seller, if any; provided, however, that if the Remaining §9.2(a) Claim Retained Amount is        less than the amount to be delivered to Purchaser with respect to such Unresolved §9.2(a) Claim,        then  each Seller shall  pay,  subject  to  the  limitations  provided  for  in Section 9.3(d),  within  10        Business Days following the resolution of such Unresolved §9.2(a) Claim, such Seller’s Pro Rata        Portion of the amount of such shortfall to the Indemnitee; and                     (ii)  if  an  Unresolved  §9.2(b) Claim  is  finally  resolved, then  within  10        Business  Days  after  the  final  resolution  of  such  Unresolved  §9.2(b) Claim,  Purchaser  and  the        Sellers’ Representative shall, subject to Section 9.6(j), instruct the Escrow Agent to release from        the Escrow Fund in accordance with the Escrow Agreement for distribution to such Seller, the        amount,  if  any,  by  which:  (A)  the  amount,  if  any,  by  which  such  Seller’s  Unresolved  §9.2(b)        Claim Retained Amount exceeds the aggregate of all amounts delivered to Purchaser following        the General Representation Expiration Time upon the resolution of Unresolved §9.2(b) Claims        applicable  to  such  Seller  (such  excess  being  referred  to  as  such  Seller’s  “Remaining  §9.2(b)        Claim Retained Amount”); exceeds (B) the aggregate amount of the Claimed Amounts associated        with  all  Unresolved  §9.2(b) Claims  applicable  to  such  Seller; provided, however, that if  such        Seller’s  Remaining §9.2(b) Claim Retained Amount is  less than the  amount to be  delivered  to        Purchaser with respect to such Unresolved §9.2(b) Claim, then such Seller shall pay, subject to        the  limitations  provided  for  in Section 9.3(d), within  10  Business  Days  following  the  final        resolution of such Unresolved §9.2(b) Claim, the amount of such shortfall to the Indemnitee.               (j)   Other  Terms  of Release  of  Escrow  Fund.   Notwithstanding  anything  in  this  Agreement to the contrary:                     (i)   if  an  Unresolved  §9.2(b) Claim  against  any Seller  has  been  finally        resolved but the amount determined to be owed to the applicable Indemnitee has not been paid by        such Seller in accordance with this Section 9.6 at the time that any amount is to be released from        the Escrow Fund for distribution to such Seller in accordance with Sections 9.6(h) or 9.6(i), then        Purchaser may, in its sole discretion, instruct the Escrow Agent to deduct from the amount that        would otherwise be distributed to such Seller, and pay to the applicable Indemnitee, the aggregate        amount owed by such Seller to such Indemnitee; and                                          36  

 

                     (ii)  each distribution to be made from the Escrow Fund to the Sellers shall be        effected  in  accordance  with  the  payment  delivery  instructions  set  forth  in  the  Sellers’        Consideration Spreadsheet (unless the Sellers’ Representative provides updated payment delivery        instructions).               (k)   Conversion of Damages Amounts.  For purposes of determining (i) whether the  limitations  set  forth  in Section 9.3 have  been  satisfied  and  (ii)  the  amount  of  Damages  suffered  or  incurred in connection with any claim for indemnification, compensation or reimbursement pursuant to  this Section 9,  any  amount  of  Damages  that  is  denominated  in  a  currency  other  than  dollars  shall  be  converted into dollars  using the  average  of the applicable  daily exchange rates over the  period of five  consecutive Business Days ending on the date that is two Business Days before the date that such amount  is  determined  to  be  owed  to  the  applicable  Indemnitee  in  accordance  with  this Section 9.6,  as  such  exchange rates are reported on the Financial Times website at FT.com.               (l)   Transaction  Taxes.  Notwithstanding  anything  to  the  contrary  contained  in  this  Agreement, any claim for indemnification, compensation or reimbursement pursuant to Section 9.2(b)(iv)  shall be brought and resolved exclusively in accordance with Schedule 10.         9.7   Exclusive  Remedy.  Subject to Section 10.3, except  for  equitable  remedies,  from  and  after the Closing, the rights to indemnification, compensation and reimbursement set forth in this Section  9 and in Section 9 of the Share Issuance Agreement shall be the sole and exclusive post-Closing monetary  remedy of the Indemnitees for any Damages resulting from or arising out of any breach of this Agreement  or the Share Issuance Agreement by the Company or the Sellers.  For clarity, this means that the survival  periods and liability limits set forth in this Section 9 and in Section 9 of the Share Issuance Agreement  shall  control  notwithstanding  any  statutory  or  common  law  provisions  or  principles  to  the  contrary;  provided, however, that nothing in this Section 9.7 shall limit the liability that any Person may have at law  or in equity based on such Person’s commission of or participation in fraud.         9.8   Exercise of Remedies Other Than by Purchaser.  No Indemnitee (other than Purchaser  or  any  successor  thereto  or  assign  thereof)  shall  be  permitted  to  assert  any  indemnification  claim  or  exercise  any  other  remedy  under  this  Agreement  unless  Purchaser  (or  any  successor  thereto  or  assign  thereof)  shall  have  consented  to  the  assertion  of  such  claim  for  indemnification,  compensation  or  reimbursement or the exercise of such other remedy.         9.9   Recoveries.                 (a)   Subject to the next sentence, the parties acknowledge the existence of a duty to  mitigate  damages  under  the  common  law  of  the  State  of  Delaware.  Notwithstanding  anything  to  the  contrary  contained  in  this Section 9.9 or  elsewhere  in  this  Agreement,  no  Indemnitee  shall  have  any  obligation to seek recovery under any insurance policy or against any third party or to obtain insurance  coverage or other third party protection with respect to any matter.               (b)   In order to avoid a “windfall” double recovery on the part of the Indemnitees, the  parties  agree  that:  (i)  the  Indemnitees  shall  not  be  entitled  to  recover  more  than  once  for  the  same  Damages  under Section 9.2 (it  being  understood  that  multiple  Indemnitees  may  each  suffer  or  incur  separate Damages in connection with the same event, facts or circumstances); and (ii) subject to Section  9.9(a), in determining the amount of any Damages for which an Indemnitee is entitled to assert a claim for  indemnification,  compensation  or  reimbursement  pursuant  to  this Section 9,  the  amount  of  any  such  Damages  shall  be  reduced  by  the  net  amount  of  any  insurance  proceeds  or  other  third  party  indemnification or contribution payments actually received by such Indemnitee as a result of and with  respect  to  such  Damages  under  any  insurance  policy  of  the  Company  or  under  any  third  party                                          37  

 

indemnification or contribution arrangement in favor of the Company in existence as of the Closing (with  the net amount of such Damages calculated after giving effect to any applicable deductible or retention  and  any  costs  of  recovery,  including  premium  increases  (retroactive  or  otherwise),  any  reimbursement  obligation and any other cost related to the applicable insurance claim or third party indemnification or  contribution claim); provided, however, that if any Indemnitee is indemnified, compensated or reimbursed  pursuant  to  this Section 9 from  the  Escrow  Fund  or  by  a  Seller  with  respect  to  any  Damages  and  thereafter receives a  payment from any insurance  policy or third party indemnification or contribution  arrangement referred  to in this  clause  “(ii)” as a result of and with respect to such Damages,  then the  amount recovered from such insurance policy or third party (up to the amount recovered from the Escrow  Fund or from such Seller with respect to such Damages) shall be re-deposited in the Escrow Fund or paid  to such Seller, as applicable, by Purchaser.               (c)   §9.2(a) Claims by an Indemnitee shall be recovered first from the Escrow Fund and,  only  after  the  Escrow  Fund  has been exhausted,  then  directly  from  the  Sellers.   However, to the  extent that an Indemnitee receives an indemnification payment for any Uncapped Matter from the Escrow  Fund, the amount of such payment from the Escrow Fund will not reduce the amount any Indemnitee may  recover  with  respect  to  any  §9.2(a) Claim  for  which  recovery  is  limited  to  the  General  Cap  Amount  pursuant to Section 9.3. By way of illustration, assuming there are no other §9.2(a) Claims, in the event  that  an  indemnification  payment  for  an  Uncapped  Matter  is  received  from  the  Escrow  Fund  and  such  payment fully depletes the Escrow Fund, the maximum limit of a subsequent §9.2(a) Claim based on a  breach  of or  inaccuracy  in  a  General  Company  Representation  shall  continue  to  be  the  General  Cap  Amount,  regardless  of  the  fact  that  amounts  held  in  the  Escrow  Fund  were  used  to  satisfy  an  indemnification  payment  for  an  Uncapped  Matter,  and  the  Indemnitees  may  proceed  to  recover  the  General Cap Amount from the Sellers individually.   10.   MISCELLANEOUS PROVISIONS        10.1  Sellers’ Representative.                (a)   Appointment.   Each  Seller  hereby  irrevocably  nominates,  constitutes  and  appoints Fortis Advisors LLC as the attorney in fact and true and lawful exclusive agent of such Seller,  with  full  power  of  substitution,  to  act  in  the  name,  place  and  stead  of  such  Seller  for  purposes  of  executing any document and taking any action that the Sellers’ Representative may, in its sole discretion,  determine to be appropriate in connection with this Agreement, any other Transaction Document, any of  the Contemplated Transactions or any action contemplated by any of the foregoing. Fortis Advisors LLC  hereby accepts the Sellers’ Representative’s appointment as such exclusive agent.               (b)   Authority.  Each Seller hereby grants to the Sellers’ Representative the absolute and unrestricted right, power and authority to execute, deliver, acknowledge, certify and file on behalf of  such  Seller  (in  the  name  of  such  Seller  or otherwise)  any  and  all  documents  that  the  Sellers’  Representative may, in the Sellers’ Representative’s sole discretion, determine to be necessary, desirable  or appropriate, in such forms and containing such provisions as the Sellers’ Representative may, in the  Sellers’  Representative’s  sole  discretion,  determine  to  be  appropriate,  in  performing  the  Sellers’  Representative’s  duties  and  exercising  the  Sellers’  Representative’s  authority  as  contemplated  by  this  Section 10.1. Without limiting the generality of the foregoing, each Seller hereby grants to the Sellers’  Representative full authority to:                     (i)   take all actions required by, and exercise all rights granted to, the Sellers’       Representative in this Agreement;                                          38  

 

                     (ii)  receive all notices or other documents given or to be given to such Seller        by Purchaser pursuant to this Agreement;                     (iii) negotiate, undertake, compromise, defend, resolve and settle on behalf of        such  Seller  any  claim,  dispute  or  Legal  Proceeding  under  this  Agreement or  any  other        Transaction  Document,  including  any  arbitration  proceeding  conducted  in  accordance  with the        terms of this Agreement;                     (iv)  amend this Agreement pursuant to Section 10.14;                     (v)   execute  and  deliver  all  agreements,  amendments,  certificates  and        documents required or deemed appropriate by the Sellers’ Representative in connection with any        of the Contemplated Transactions; and                     (vi)  take such other action as the Sellers’ Representative may deem necessary        or appropriate to carry out the intent and purposes of this Agreement, the Escrow Agreement and        the Sellers’ Representative Engagement Agreement.   Notwithstanding the foregoing, the Sellers’ Representative shall have no obligation to act on behalf of the  Sellers, except as expressly provided herein, in the Escrow Agreement and in the Sellers’ Representative  Engagement Agreement, and for purposes of clarity, each of the  Sellers acknowledges and agrees that  there are no obligations of the Sellers’ Representative in any ancillary agreement, schedule, exhibit or the  Company  Disclosure  Schedule.   Purchaser  shall  be  entitled  to  deal  exclusively  with  the  Sellers’  Representative  on  all  matters  relating  to  this  Agreement,  any  other  Transaction  Document,  any  of  the  Contemplated Transactions and any action contemplated by any of the foregoing (including all matters  relating to any notice to, or any Consent to be given or action to be taken by, any Seller) and Purchaser  shall be entitled to rely conclusively (without further evidence of any kind whatsoever) on any document  executed or purported to be executed on behalf of any Seller by the Sellers’ Representative, and on any  other action taken or purported to be taken on behalf of any Seller by the Sellers’ Representative, as fully  binding upon such Seller.               (c)   Agency.   Each  Seller  recognizes  and  intends  that  the  powers,  immunities  and  rights to indemnification granted to the Sellers’ Representative Group in this Section 10: (i) coupled with  an interest and shall be irrevocable; (ii) may be delegated by the Sellers’ Representative; and (iii) shall  survive the death, incapacity, dissolution, liquidation, bankruptcy, insolvency or reorganization of such  Seller and shall be binding on any successor thereto.                (d)   Replacement.  If the Sellers’ Representative shall die, resign, become disabled or  otherwise be unable to fulfill the Sellers’ Representative’s responsibilities hereunder, the Sellers shall, by  consent of Sellers whose Pro Rata Portions exceed one-half in the aggregate, within 10 days after such  death,  resignation  or  disability,  appoint  a  successor  to  the  Sellers’  Representative  (who  shall  be  reasonably satisfactory to Purchaser) and immediately thereafter notify Purchaser of the identity of such  successor.  Any  such  successor  shall  succeed  the  Sellers’  Representative  as  Sellers’  Representative  hereunder. Each of the Sellers agrees that the immunities and rights to indemnification shall survive the  resignation  or  removal  of  the  Sellers’  Representative  or any  member  of  the  Advisory  Group  and  the  Closing and/or any termination of this Agreement and the Escrow Agreement.  If for any reason there is  no  Sellers’  Representative  at  any  time,  all  references  in  this  Agreement  to  the  Sellers’  Representative  shall be deemed to refer to the Sellers.               (e)   Indemnification.  Each Seller acknowledges and agrees that neither the Sellers’  Representative nor its members, managers, directors, officers, contractors, agents and employees nor any                                          39  

 

   member of the Advisory Group (collectively, the “Sellers’ Representative Group”) will incur any liability  of  any  kind  to  such  Seller  with  respect  to  any  action  or  omission  by  the  Sellers’  Representative  in  connection with the Sellers’ Representative’s services pursuant to this Agreement, the Escrow Agreement  or the Sellers’ Representative Engagement Agreement, and any agreements ancillary hereto, except in the  event  of  liability  directly  resulting  from  the  Sellers’  Representative’s  gross  negligence  or  willful  misconduct.  Each  Seller acknowledges and agrees that the  Sellers’ Representative  Group shall not be  liable  to  such  Seller  for  any  action  or  omission  pursuant  to  the  advice  of  counsel.   The  Sellers  will  severally  (based  on  each  such  Seller’s  Pro  Rata  Portion)  and  not  jointly  indemnify,  defend  and  hold  harmless  the  Sellers’  Representative  Group  from  and  against  any  and  all  losses,  liabilities,  damages,  claims, penalties, fines, forfeitures, actions, fees, costs and expenses (including the fees and expenses of  counsel and experts and their staffs and all expense of document location, duplication and shipment and  costs  in  connection  with  seeking  recovery  from  insurers)  (collectively,  “Sellers’  Representative  Expenses”) arising out of or in connection with the Sellers’ Representative’s execution and performance  of this Agreement, the Escrow Agreement or the Sellers’ Representative Engagement Agreement and any  agreements ancillary hereto, in each case as such Sellers’ Representative Expense is suffered or incurred;  provided, however, that in the event that any such Sellers’ Representative Expense is finally adjudicated  to have been directly caused by the gross negligence or willful misconduct of the Sellers’ Representative,  the  Sellers’  Representative  will  reimburse  the  Sellers  for  the  amount  of  such  indemnified  Sellers’  Representative  Expense  to  the  extent  attributable  to  such  gross  negligence  or  willful  misconduct.   In  furtherance of the foregoing, each Seller hereby authorizes the Disbursing Agent to withhold an aggregate  amount  of  $2,000,000  (the  “Expense  Fund  Amount”)  from  the  amounts  otherwise  payable  by  the  Disbursing Agent to the Sellers pursuant to Section 1.1(b), with the Disbursing Agent to withhold from  the consideration otherwise payable to each Seller and distribute to the Sellers’ Representative an amount  equal to each  Seller’s  Pro Rata  Portion of the  Expense Fund Amount, and  the Disbursing Agent shall  promptly pay the Expense Fund Amount to the Sellers’ Representative in immediately available funds. In  addition, each Seller hereby authorizes the Sellers’ Representative to instruct the Escrow Agent to deduct  from any amounts to be released from the Escrow Fund and distributed to such Seller in accordance with  Section 9.6 an  amount  equal  to  such  Seller’s  Pro  Rata  Portion  of  any  amounts  to  which  the  Sellers’  Representative is entitled pursuant to this Section 10.1(e).  Any Sellers’ Representative Expenses may be  recovered by the Sellers’ Representative from (i) first, the Expense Fund, (ii) second, from any amount  otherwise  distributable  to  each  Seller  from  the  Escrow  Fund  and  (iii)  third,  directly  from  the  Sellers;  provided,  however,  that  while  this  section allows  the  Sellers’  Representative  to  be  paid  from  the  aforementioned sources of funds, this does not relieve the Sellers from their obligation to promptly pay  such Sellers’ Representative Expenses as they are suffered or incurred, nor does it prevent the Sellers’  Representative from seeking any remedies available to it at law or otherwise.  Each Seller acknowledges  and  agrees  that  in  no  event  will  the  Sellers’  Representative  be  required  to  advance  its  own  funds  or  otherwise incur any financial liability on behalf of the Sellers in the exercise or performance of any of its  powers,  rights,  duties  or  privileges  or  pursuant  to  this  Agreement,  the  Escrow  Agreement  or  the  transactions  contemplated hereby or thereby.  Furthermore,  each  of the  Sellers agrees  that the  Sellers’  Representative  shall  not  be  required  to  take  any  action  unless  the  Sellers’  Representative  has  been  provided  with  funds,  security  or  indemnities  which,  in  its  determination,  are  sufficient  to  protect  the  Sellers’ Representative against the costs, expenses and liabilities which may be incurred by the Sellers’  Representative in performing such actions.  Notwithstanding anything in this Agreement to the contrary,  any restrictions or limitations on liability or indemnification obligations of the Sellers set forth elsewhere  in  this  Agreement  are  not  intended  to  be  applicable  to  the  indemnities  provided  to  the  Sellers’  Representative under this Section 10.1(e).  The indemnities provided to the Sellers’ Representative Group  under  this Section 10.1(e) will  survive  the  Closing,  the  resignation  or  removal  of  the  Sellers’  Representative or the termination of this Agreement.  The Sellers’ Representative will hold the Expense  Fund Amount in a segregated client funds account and the Expense Fund will be used (i) for the purposes  of paying directly, or reimbursing the Sellers’ Representative for, any Sellers’ Representative Expenses  pursuant to this Agreement, the Escrow Agreement or the Sellers’ Representative Engagement Agreement                                          40  

 

and the agreements ancillary hereto or (ii) as otherwise directed by the Advisory Group.  The Sellers will  not  receive  any  interest  or  earnings  on  the  Expense  Fund  and  irrevocably  transfer  and  assign  to  the  Sellers’  Representative  any  ownership  right  that  they  may  otherwise  have  had  in  any  such  interest  or  earnings.   Each  Seller  acknowledges  and  agrees  that  the  Sellers’  Representative  is  not  providing  any  investment supervision, recommendations or advice and will not be liable to such Seller for any loss of  principal of the Expense Fund other than as a result of its gross negligence or willful misconduct.  Each of  the Sellers agrees that the Sellers’ Representative is not acting as a withholding agent or in any similar  capacity  in  connection  with  the  Expense  Fund,  and  has  no  tax  reporting  or  income  distribution  obligations.  The Sellers’ Representative will hold these funds separate from its corporate funds, will not  use these funds for its operating expenses or any other corporate purposes and will not voluntarily make  these funds available to its creditors in the event of bankruptcy.  As soon as practicable following the  completion of the Sellers’ Representative’s responsibilities, the Sellers’ Representative will deliver any  remaining balance of the Expense Fund to the Disbursing Agent for further distribution to the Sellers (at  the Sellers’ sole cost and expense).  For tax purposes, the Expense Fund Amount will be treated as having  been received and voluntarily set aside by the Sellers at the time of Closing.                (f)   Advisory  Group.  Certain  Sellers  (the  “Advisory  Group”)  have  concurrently herewith  entered  into  a  letter  agreement  (the  “Sellers’  Representative  Engagement  Agreement”)  with  Sellers’  Representative  regarding  direction  to  be  provided  by  the  Advisory  Group  to  Sellers’  Representative  in  connection  with  its  services  under  this  Agreement,  the  Escrow  Agreement  and  the  Sellers’ Representative Engagement Agreement.  Each Seller acknowledges and agrees that the Advisory  Group shall incur no liability to the  Sellers for any liability incurred  by the  members  of the  Advisory  Group while acting in good faith and arising out of or in connection with the acceptance or administration  of their duties (it being understood that any act done or omitted pursuant to the advice of counsel shall be  conclusive evidence of such good faith), even if such act or omission constitutes negligence on the part of  the  Advisory  Group  or  one  of  its  members.   This  indemnification  and exculpation  shall  survive  the  termination of this Agreement.               (g)   Each  of  the  Sellers  agrees  that  all  actions  taken  by  the  Sellers’  Representative under this Agreement, the Escrow Agreement or the Sellers’ Representative Engagement Agreement shall  be binding upon each Seller and such Seller’s successors as if expressly confirmed and ratified in writing  by such Seller, and all defenses which may be available to any Seller to contest, negate or disaffirm the  action of the Sellers’ Representative taken in good faith under this Agreement, the Escrow Agreement or  the Sellers’ Representative Engagement Agreement are waived.               (h)   Each of the Sellers agrees that the Sellers’ Representative shall be entitled to: (i) rely upon the Sellers’ Consideration Spreadsheet, (ii) rely upon any signature believed by it to be genuine,  and (iii) reasonably assume that a signatory has proper authorization to sign on behalf of the applicable  Seller or other party.               (i)   The  Sellers’  Representative  may  retain  one  copy  of  the DVD  or  other  digital media  delivered  to  Purchaser  by  the  Company  pursuant  to  Section  6.6(o)  of  the  Share  Issuance  Agreement if the Sellers’ Representative enters into a separate customary confidentiality agreement with  Purchaser before the Closing.               (j)   Notwithstanding  anything  to  the contrary  contained  in  this Section 10.1 or elsewhere  in  this  Agreement,  all  of  the  rights  of  the  Sellers’  Representative  and  the  Sellers’  Representative Group under this Section 10.1 relating to any portion of the Escrow Fund are subject, and  subordinate, to the rights of the Indemnitees under this Agreement.                                           41  

 

         10.2  Further Assurances.  Each party hereto shall execute and cause to be delivered to each  other party hereto such instruments and other documents, and shall take such other actions, as such other  party may reasonably request (at or after the Closing) for the purpose of carrying out or evidencing any of  the Contemplated Transactions.         10.3  No Waiver Relating to Claims for Fraud.  The liability of any Person under Section 9  will be in addition to, and not exclusive of, any other liability that such Person may have at law or in  equity based on such Person’s commission of or participation in fraud. Notwithstanding anything to the  contrary contained in this Agreement, none of the provisions set forth in this Agreement, including the  provisions set forth in Section 9, shall be deemed a waiver by any Indemnitee of any tort right or remedy  which such Indemnitee may have at law or in equity based on the commission of or participation by such  Person  or  any  of  such  Person’s  directors,  officers,  employees  or  agents  in  fraud,  nor  will  any  such  provision limit, or be deemed to limit: (a) the amounts of recovery sought or awarded in any such claim  for fraud; (b) the time period during which a claim for fraud may be brought; or (c) the recourse which  any Indemnitee may seek against such Person with respect to such a claim for fraud.         10.4  Fees and Expenses.               (a)   Singapore Stamp Duty on Secondary Share Purchase.  Notwithstanding anything  to the contrary contained in Section 10.4(b) or elsewhere in this Agreement, any Singapore Stamp Duty  arising  from  this  Agreement  or  any  other  instrument  effecting  the  Secondary  Share  Purchase  shall  be  borne equally by, and divided equally between, Purchaser and the Sellers. Purchaser shall be responsible  for the payment of the Singapore Stamp Duty in connection with the Secondary Share Purchase to the  relevant  Taxing  Authority  and  each  Seller  shall  provide  Purchaser  with  all  relevant  information  and  documentation relating to such payment, including a duly completed Form E4A and Working Sheet E.  Purchaser shall be entitled to be reimbursed by each Seller for 50% of the Singapore Stamp Duty payable  in connection with the sale of such Seller’s Purchased Shares to Purchaser pursuant to this Agreement  through the deduction of the relevant amount from the consideration to be paid to such Seller for such  Seller’s Purchased Shares pursuant to this Agreement.               (b)   Other Fees and Expenses.  Subject to Sections 9 and 10.4(a), each party to this  Agreement shall bear and pay all fees, costs and expenses that have been incurred or that are incurred in  the future by such party in connection with the Contemplated Transactions, including all fees, costs and  expenses  incurred  by  such  party  in  connection  with  or  by  virtue  of:  (a)  the  investigation  and  review  conducted by Purchaser and its Representatives with respect to the Acquired Companies’ businesses (and  the furnishing of information to Purchaser and its Representatives in connection with such investigation  and review); (b) the negotiation, preparation and review of this Agreement and all agreements, certificates  and other instruments and documents delivered or to be delivered in connection with the Contemplated  Transactions; (c) the preparation and submission of any filing or notice required to be made or given in  connection with any of the Contemplated Transactions, and the obtaining of any Consent required to be  obtained  in  connection  with  any  of  such  transactions;  and  (d)  the  consummation  of  the  Contemplated  Transactions. No fees, costs or expenses incurred by any Seller or any Representative of any Seller shall  be borne, paid or reimbursed by any Acquired Company.          10.5  Attorneys’ Fees.  If any legal proceeding relating to this Agreement or the enforcement  of any provision of this Agreement (other than with respect to a claim for indemnification, compensation  or reimbursement pursuant to Section 9 that is brought and resolved in accordance with Section 9.6) is  brought  by  any  Indemnitee  against  any  party  hereto,  the  prevailing  party  shall  be  entitled  to  recover  reasonable attorneys’ fees, costs and disbursements (in addition to any other relief to which the prevailing  party may be entitled).                                          42  

 

         10.6  Notices.  Any notice or other communication required or permitted to be delivered to any  party  under  this  Agreement  shall  be  in  writing  and  shall  be  deemed  properly  delivered,  given  and  received: (a) if delivered by hand, when delivered; (b) if sent on a Business Day by facsimile transmission  before 5:00 p.m. (recipient’s time) on the day sent by facsimile transmission and receipt is confirmed, on  the  date  on  which  receipt  is  confirmed;  (c)  if  sent  by facsimile  transmission  on  a  day  other  than  a  Business Day and receipt is confirmed, or if sent by facsimile transmission after 5:00 p.m. (recipient’s  time) on the day sent by facsimile transmission and receipt is confirmed, on the Business Day following  the date on which receipt is confirmed; and (d) if sent via an international courier service, three Business  Days after being delivered to such courier, in each case to the address set forth beneath the name of such  party below (or to such other address as such party shall have specified in a written notice given to the  other parties hereto); provided, however, that with respect to any such notices deliverable to the Sellers’  Representative, such notices shall be delivered solely via facsimile transmission or email (in either case  with confirmation of receipt):               If to Purchaser or Parent:                                        Wal-Mart International Holdings, Inc.                     c/o Walmart Inc.                    702 SW 8th Street, MS 0215                    Bentonville, Arkansas 72716-0215                    Attention:  Senior Vice President – General Counsel, Walmart International                    Facsimile:  (479) 277-5991                            with copies (which shall not constitute notice) to:                                        Walmart Inc.                    Unit 620, 6/F, 100 QRC, 100 Queen’s Road                    Central, Hong Kong                    Attention:  Senior Vice President – General Counsel, Walmart Asia                    Facsimile:  +852 25768900                                  Walmart Inc.                    702 SW 8th Street, MS 0215                    Bentonville, Arkansas 72716-0215                    Attention:  Vice President – General Counsel, Corporate                    Facsimile:  (479) 277-5991                                   Hogan Lovells US LLP                    4085 Campbell Avenue, Suite 100                    Menlo Park, CA 94025                    United States                     Attention:  Richard E. Climan                                      Christopher R. Moore                    Facsimile:  650-463-4199               If to the Sellers or the Sellers’ Representative:                                        Fortis Advisors LLC                    Attention:  Notices Department                    Facsimile:  (858) 408-1843                                          43  

 

                     Email: notices@fortisrep.com               with copies (which shall not constitute notice) to:                                        Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP                    220 West 42nd Street, 17th Floor                    New York, NY 10036                    United States                    Attention:  Steven L. Baglio, Andrew Y. Luh, Ferish P. Patel, Jonathan C. Pentzien                    and John H. Olson                    Facsimile:  877-881-0530         10.7  Headings.  The  bold-faced  headings  and  the  underlined  headings  contained  in  this  Agreement are for convenience of reference only, shall not be deemed to be a part of this Agreement and  shall not be referred to in connection with the construction or interpretation of this Agreement.         10.8  Counterparts  and  Exchanges  by  Electronic  Transmission  or  Facsimile.  This  Agreement may be executed in several counterparts, each of which shall constitute an original and all of  which, when taken together, shall constitute one agreement. The exchange of a fully executed Agreement  (in counterparts or otherwise) by electronic transmission in .PDF format or by facsimile shall be sufficient  to bind the parties to the terms of this Agreement.          10.9  Governing Law; Dispute Resolution.                 (a)   Governing  Law.   This  Agreement  shall  be  governed  by  and  construed  and  interpreted  in  accordance  with  the  laws  of  the  state  of  Delaware  irrespective  of  the  choice  of  laws  principles of the state of Delaware, as to all matters, including matters of validity, construction, effect,  enforceability,  performance  and  remedies  and  in  respect  of  the  statute  of  limitations  or  any  other  limitations period applicable to any claim, controversy or dispute.               (b)   Indemnification  Claims.  Any  claim  for  indemnification,  compensation  or  reimbursement pursuant to Section 9 shall be brought and resolved (and, at the option of any Indemnitee,  any claim made after the Closing based upon fraud relating to this Agreement or any of the Contemplated  Transactions may be brought and resolved) in accordance with Section 9.6 (it being understood that, for  the  avoidance  of  doubt  and  without  limiting  the  effect  of Section 10.9(c):  (i)  at  the  option  of  any  Indemnitee, any claim based upon fraud against a Person who committed or participated in such fraud  may be brought and resolved in accordance with Section 10.9(c) rather than in accordance with Section  9.6; and (ii) nothing in this Section 10.9(b) or elsewhere in this Agreement shall prevent any Indemnitee  from  seeking  preliminary  injunctive  relief  or  any  other  equitable  remedy  from  a court  of  competent  jurisdiction).               (c)   Other Disputes.  Except as otherwise provided in Section 10.9(b), any action, suit  or  other  legal  proceeding  relating  to  this  Agreement  or  the  enforcement  of  any  provision  of  this  Agreement  (including  an  action,  suit  or  other  legal  proceeding  based  upon  fraud)  may  be  brought  or  otherwise commenced in any state or federal court located in the state of Delaware. Each party to this  Agreement: (i) expressly and irrevocably consents and submits to the jurisdiction of each state and federal  court  located  in  the  state  of  Delaware  (and  each  appellate  court  located  in  the  state  of  Delaware)  in  connection  with  any  such action, suit  or  legal  proceeding;  (ii)  agrees  that  each  state  and  federal  court  located in the state of Delaware shall be deemed to be a convenient forum; and (iii) agrees not to assert  (by way of motion, as a defense or otherwise), in any such action, suit or legal proceeding commenced in  any  state  or  federal  court  located  in  the  state  of  Delaware,  any  claim  that  such  party  is  not  subject                                          44  

 

personally to the jurisdiction of such court, that such action, suit or legal proceeding has been brought in  an  inconvenient forum, that the  venue of such action, suit or legal proceeding is  improper or that this  Agreement or the subject matter of this Agreement may not be enforced in or by such court.          10.10 Successors  and  Assigns.  This  Agreement  shall  be  binding  upon  each  of  the  parties  hereto and each of their respective heirs, executors, personal representatives, successors and assigns, if  any. This Agreement shall inure to the benefit of the Sellers, Purchaser, the other Indemnitees and the  respective successors and assigns of the foregoing (if any). Purchaser may freely assign any or all of its  rights under this Agreement (including its rights under Section 9), in whole or in part, to any other Person  without obtaining the consent or approval of any other party hereto or of any other Person. In connection  with  any such  assignment  by  Purchaser,  Purchaser  may  specify  the  extent  to  which  references  to  Purchaser in this Agreement will be deemed to refer to the assignee. No Seller shall be permitted (and the  Sellers’  Representative  shall  not  be  permitted)  to  assign  any  of  such  Seller’s  (or  the  Sellers’  Representative’s)  rights  or  delegate  any  of  such  Seller’s  (or  the  Sellers’  Representative’s)  obligations  under this Agreement without Purchaser’s prior written consent. Any attempted assignment or delegation  by any Seller or by the Sellers’ Representative in violation of this Section 10.10 shall be null and void.         10.11 Remedies Cumulative; Specific Performance.  The rights and remedies of the parties  hereto are not exclusive of or limited by any other rights or remedies which they may have, whether at  law, in equity, by contract or otherwise, all of which shall be cumulative (and not alternative). Without  limiting the generality of the foregoing, the rights and remedies of Purchaser and the other Indemnitees  under this  Agreement  are  in  addition to  their  respective  rights  and  remedies  under  the  Share  Issuance  Agreement.  Nothing in this Agreement shall limit any of the rights or remedies of Purchaser or any of the  other Indemnitees under the Share Issuance Agreement or any other Transaction Document (excluding  the  Company  Closing  Certificate,  the  documents  delivered  pursuant  to Section 6.5 and  the  certificate  contemplated  by  Section  6.6(d)  of  the  Share  Issuance  Agreement);  and  nothing  in  the  Share  Issuance  Agreement or any other agreement, certificate or document referred to in the Share Issuance Agreement  or  to  be  executed  in  connection  with  any  of  the  transactions  contemplated  by  the  Share  Issuance  Agreement shall limit any Seller’s obligations, or any of the rights or remedies of Purchaser or any of the  other Indemnitees, under this Agreement.  No breach on the part of Purchaser or any other party of any  covenant or obligation contained in the Share Issuance Agreement or any other agreement shall limit or  otherwise affect any right or remedy of Purchaser or any of the other Indemnitees under this Agreement.  The parties to this Agreement agree that, in the event of any breach or threatened breach by the Sellers’  Representative  or  any  of  the  Sellers  of  any  covenant,  obligation  or  other  provision  set  forth  in  this  Agreement: (a) Purchaser shall be entitled, without proof of actual damages (and in addition to any other  remedy  that  may  be  available  to it)  to  (i)  a  decree  or  order  of  specific  performance  or  mandamus  to  enforce  the  observance  and  performance  of  such  covenant,  obligation  or  other  provision  and  (ii)  an  injunction restraining such breach or threatened breach; and (b) Purchaser shall not be required to provide  any bond or other security in connection with any such decree, order or injunction or in connection with  any related action or legal proceeding.  Notwithstanding the foregoing, but subject to Section 10.3, for  clarity, following the Closing, Section 9.7 shall control exclusively on the topic of monetary remedies for  any breach of the Share Issuance Agreement by the Company or for any breach of this Agreement by any  of the Sellers.         10.12 Waiver.  No failure on the part of any Person to exercise any power, right, privilege or  remedy under this  Agreement, and no delay on the  part of any Person in exercising any power, right,  privilege or remedy under this Agreement, shall operate as a waiver of such power, right, privilege or  remedy; and no single or partial exercise of any such power, right, privilege or remedy shall preclude any  other or further exercise thereof or of any other power, right, privilege or remedy. No Person shall be  deemed to have waived any claim arising out of this Agreement, or any power, right, privilege or remedy  under this Agreement, unless the waiver of such claim, power, right, privilege or remedy is expressly set                                          45  

 

   forth in a written instrument duly executed and delivered on behalf of such Person; and any such waiver  shall not be applicable or have any effect except in the specific instance in which it is given.         10.13 Waiver of Jury Trial.  Each of the parties hereto hereby irrevocably waives any and all  right to trial by jury in any legal proceeding arising out of or related to this  Agreement or any of the  Contemplated Transactions.         10.14 Amendments.  This Agreement may not be amended, modified, altered or supplemented  other than by means of a written instrument duly executed and delivered on behalf of Purchaser and the  Sellers’ Representative (acting exclusively for and on behalf of all of the Sellers); provided, however, that  this Agreement made be amended, on or before the Closing Date, to add any Eligible Shareholder as a  Seller, and to amend Schedule I, pursuant to a joinder agreement duly executed on behalf of Purchaser  and such Eligible Shareholder, without the need for any Consent on the part of any Seller, the Sellers’  Representative or any other Person.         10.15 Severability.  Any term or provision of this Agreement that is deemed or determined to  be  invalid  or  unenforceable  in  any  situation  in  any  jurisdiction  shall  not  affect  the  validity  or  enforceability  of  the  remaining  terms  and  provisions  hereof  or  the  validity  or  enforceability  of  the  offending term or provision in any other situation or in any other jurisdiction. If the final judgment of a  court  of  competent  jurisdiction  declares  that  any  term  or  provision  of  this  Agreement  is  invalid  or  unenforceable,  the  Sellers,  the  Sellers’  Representative  and  Purchaser agree that  the  court  making  such  determination shall have the power to limit the term or provision, to delete specific words or phrases, or to  replace  any  invalid  or  unenforceable  term  or provision  with  a  term  or  provision  that  is  valid  and  enforceable  and  that  comes  closest to expressing  the  intention  of  the  invalid  or  unenforceable  term  or  provision,  and  that  such  modified  term  or  provision  of  this  Agreement  shall  be  enforceable  as  so  modified. In the event such court does not exercise the power granted to it in the immediately preceding  sentence,  the  Sellers,  the  Sellers’  Representative  and  Purchaser  agree  to  replace  such  invalid  or  unenforceable term or provision with a valid and enforceable term or provision that will achieve, to the  extent possible, the economic, business and other purposes of such invalid or unenforceable term.         10.16 Parties in Interest.  Except for the provisions of Section 9, which may be enforced by  the Indemnitees as set forth in Section 9, none of the provisions of this Agreement are intended to provide  any right or remedy to any employee, creditor or other Person other than Purchaser, the Sellers and their  respective successors and assigns (if any).         10.17 Entire Agreement.  This Agreement and the other agreements referred to herein set forth  the  entire  understanding  of  the  parties  hereto  relating  to  the  subject  matter  hereof  and  thereof and  supersede all prior agreements and understandings among or between any of the parties relating to the  subject matter hereof and thereof.         10.18 Performance of Purchaser Obligations.                 (a)   To induce the Sellers to enter into this Agreement, Parent, intending to be legally  bound, hereby absolutely, irrevocably and unconditionally guarantees to the Sellers the due and punctual  payment  and  performance  of  (i)  Purchaser’s  obligations  under  this  Agreement  and  (ii)  Purchaser’s  payment obligations (including for breach) under this Agreement (collectively, the “Purchaser Guaranteed  Obligations”), in each case, as and when due pursuant to the terms of this Agreement.  This guarantee  may not be revoked or terminated and shall remain in full force and effect without interruption and shall  be binding on Parent and its successors and assigns until the Purchaser Guaranteed Obligations have been  satisfied in full.  All payments pursuant to this Section 10.18 shall be made in lawful money of the United                                          46  

 

   States, in immediately available funds. Parent promises and undertakes to make all payments hereunder  free and clear of any deduction, offset, defense, claim or counterclaim of Parent of any kind.               (b)   The  guarantee  set  forth  in Section 10.18(a) (the  “Purchaser  Guarantee”)  is  an  absolute, unconditional and continuing guarantee of the full and punctual payment and performance by  Purchaser of the Purchaser Guaranteed Obligations and not of collection.  Should Purchaser default in the  payment or performance of any of the Purchaser Guaranteed Obligations, Parent’s obligations hereunder  shall become immediately due and payable to the Sellers. Claims hereunder may be made on one or more  occasions.   If  any  payment  in  respect of  any  Purchaser  Guaranteed  Obligation  is  rescinded  or  must  otherwise  be  returned  for any  reason  whatsoever,  Parent shall  remain  liable  hereunder  with  respect  to  such Purchaser Guaranteed Obligation as if such payment had not been made.               (c)   Parent agrees that the Purchaser Guaranteed Obligations shall not be released or  discharged, in whole or in part, or otherwise affected by: (i) the failure or delay on the part of any Seller  to assert any claim or demand or to enforce any right or remedy against Purchaser; (ii) any change in the  time, place or manner of payment of the Purchaser Guaranteed Obligations or amendment or modification  of any of the terms or provisions of this Agreement made in accordance with the terms of this Agreement;  (iii) the addition, substitution or release of any Person that becomes a party to any of the Contemplated  Transactions;  (iv)  any  change  in  the  corporate  existence,  structure  or  ownership  of  Purchaser; (v)  any  insolvency, bankruptcy, reorganization or other similar proceeding affecting Purchaser or its assets; (vi)  the  adequacy  of  any  means  the  Sellers  may  have  of  obtaining  payment  related  to  the  Purchaser  Guaranteed Obligations; or (vii) the existence of any claim, set-off or other right which Purchaser may  have at any time against the Sellers (other than rights of Purchaser pursuant to this Agreement), whether  in  connection  with  the  Purchaser  Guaranteed  Obligations  or  otherwise.  Parent  waives  promptness,  diligence,  notice  of  the  acceptance  of  the  Purchaser  Guarantee  and  of  the  Purchaser  Guaranteed  Obligations, presentment, demand for payment, notice of non-performance, default, dishonor and protest,  notice of the Purchaser Guaranteed Obligations incurred and all other notices of any kind, all defenses  which  may  be  available  by  virtue of any valuation, stay, moratorium law or other similar law now or  hereafter in effect, any right to require the marshalling of assets of Purchaser or any other Person that  becomes  a  party  to  any  of  the  Contemplated  Transactions,  all  suretyship  defenses  generally,  and  all  defenses available to Parent under the Purchaser Guarantee (other than defenses to the payment of the  Purchaser  Guaranteed  Obligations  that  are  available  to  Purchaser  under  this  Agreement).   Parent  acknowledges  that  it  has  received  and  will  receive  substantial  direct  and  indirect  benefits  from  the  Contemplated Transactions and that the waivers set forth in this Section 10.18 are knowingly made in  contemplation of such benefits.               (d)   No  Seller  shall  have  any  obligation  to  proceed  at  any  time  or  in  any  manner  against,  exhaust  any  or  all  of  any  Seller’s  rights  against  Purchaser  or  any  other  person  liable  for  any  Purchaser Guaranteed Obligations prior to proceeding against Parent hereunder or resort to any security  or  other  means  of  collecting  payment.   The  Purchaser  Guarantee  may  only  be  amended  by  a  writing  signed and delivered by Parent and the Sellers’ Representative. Parent hereby covenants and agrees that it  shall not institute, and shall cause its respective Affiliates not to institute, any action asserting that the  Purchaser  Guarantee  is  illegal,  invalid  or  unenforceable  in  accordance  with  its  terms,  subject  to  the  Enforceability Exception.               (e)   Parent  hereby  represents  and  warrants  to  the  Sellers  that:  (i)  the  execution,  delivery and performance of this Agreement have been duly authorized by all necessary corporate action  and do not contravene any provision of Parent’s organizational documents or any Legal Requirement or  contractual restriction binding on Parent or its assets; and (ii) this Agreement constitutes a legal, valid and  binding  obligation  of  Parent  enforceable  against  Parent  in  accordance  with  its  terms,  subject  to  the  Enforceability Exception.                                          47  

 

         10.19 Construction.               (a)   Gender;  Etc.   For  purposes  of  this  Agreement,  whenever  the  context  requires:   the  singular  number  shall  include  the  plural,  and  vice  versa;  the  masculine  gender  shall  include  the  feminine and neuter genders; the feminine gender shall include the masculine and neuter genders; and the  neuter gender shall include the masculine and feminine genders.               (b)   Currencies; Exchange Rate.  All references in this Agreement to “dollars” or “$”  shall mean United States Dollars. All references in this Agreement to “rupees” or “Rs” shall mean Indian  National Rupees. All references in this Agreement to “Singapore dollars” or “S$” shall mean Singapore  Dollars.  Except  as  otherwise  provided  in  this  Agreement,  for  the  purpose  of  translating  an  amount  denominated in  a  currency  other  than  dollars  into  dollars  as  of  a  specified  date,  such  amount  shall  be  determined using the exchange rate between such currency and dollars on the Business Day immediately  preceding such date, as such exchange rate is reported on the Financial Times website at FT.com               (c)   Ambiguities.  The parties hereto agree that any rule of construction to the effect  that ambiguities are to be resolved against the drafting party shall not be applied in the construction or  interpretation of this Agreement.               (d)   Including.  As used in this Agreement, the words “include” and “including,” and  variations thereof, shall not be deemed to be terms of limitation, but rather shall be deemed to be followed  by the words “without limitation.”               (e)   References.  Except as otherwise indicated, all references in this Agreement to  “Sections,” “Schedules” and “Exhibits” are intended to refer to Sections of this Agreement and Schedules  and Exhibits to this Agreement. All “Schedules” and “Exhibits” annexed hereto or referred to herein are  hereby incorporated in and made a part of this Agreement as if set forth in full herein. Any capitalized  terms used in any “Schedule” or “Exhibit” but not otherwise defined therein shall be defined as set forth  in  this  Agreement.  Any  Contract,  instrument  or  statute  defined  or  referred  to  in  this  Agreement  or  in  Exhibit  A means  such  Contract,  instrument  or  statute,  in  each  case  as  from  time  to time  amended,  modified or supplemented, including (in the case of Contracts or instruments) by waiver or consent and  (in  the  case  of  statutes)  by  succession  or  comparable  successor  statutes.  Any  Contract  or  instrument  defined or referred to in this Agreement or in Exhibit A shall include all exhibits, schedules and other  documents  or  Contracts  attached  thereto.  Any  statute  defined  or  referred  to  in  this  Agreement  or  in  Exhibit A shall include all rules and regulations promulgated thereunder.               (f)   Hereof.  The terms “hereof,” “herein,” “hereunder,” “hereby” and “herewith” and  words of similar import will, unless otherwise stated, be construed to refer to this Agreement as a whole  and not to any particular provision of this Agreement.               (g)   Fraud.  For purposes of this Agreement, the Company will be deemed to have  committed fraud relating to an inaccurate or misleading Company Representation if the Company or any  director, officer, employee, advisor or agent of the Company, or any other Person acting on behalf of the  Company, has or had the requisite scienter under Delaware law. For purposes of this Agreement, a Seller  will be deemed to have committed fraud relating to an inaccurate or misleading Personal Representation  if  such  Seller  or  any  director,  officer,  employee,  advisor  or  agent  of  such  Seller,  or  any  other  Person  acting on behalf of such Seller, has or had the requisite scienter under Delaware law.         10.20 Waiver of Conflict; Attorney-Client Privilege.                                          48  

 

            (a)   Purchaser, the Sellers’ Representative and each of the Sellers acknowledge that the  Acquired  Companies  have  been  clients  of Gunderson  Dettmer  Stough  Villeneuve  Franklin  &  Hachigian  LLP (“Gunderson”), that  Gunderson  has  received  confidential information  pertaining  to  the  Acquired  Companies  in  connection  with  such  representation  and  that  Gunderson  has  not  represented  Purchaser  in  connection  with  the  preparation,  negotiation  or  execution  of  this  Agreement.  Purchaser  agrees that, from and after the Closing, Purchaser will not rely on Gunderson’s past receipt of confidential  information  or  past  representation  of  the  Company  in  the  Contemplated  Transactions  to  cause  the  Company  to  disqualify  Gunderson  from  representing  one  or  more  of  the  Sellers,  or  the  Sellers’  Representative acting on their behalf, after the Closing in connection with any negotiation, transaction or  dispute (including any litigation, arbitration or other adversary proceeding) between the  Sellers, or the  Sellers’ Representative acting on their behalf, and Purchaser arising under this Agreement, including with  respect to any dispute regarding any indemnification claim by Purchaser or any other Indemnitee under  this Agreement.  Except as specifically set forth in this Section 10.20(a), Purchaser is not waiving any  right it may have to cause the Company to assert any conflict of interest in connection with Gunderson’s  actual  or  requested  representation  of  any  Person  in  any  matter  involving  Purchaser  or  any  Acquired  Company.               (b)   Purchaser,  the  Sellers’  Representative  and  each  of  the  Sellers  agree  that,  from and  after  the  Closing,  if,  absent  this  sentence,  any  attorney-client  privilege,  attorney  work  product  protection or other similar privilege or protection would have applied to (i) any written communication  between  Gunderson,  on the  one  hand,  and  the  Acquired  Companies  or  the  Sellers,  on  the  other  hand,  during the representation by Gunderson of the Company with respect to the Contemplated Transactions  that  is  in  the  possession  of  any  of  the  Acquired  Companies  or  (ii)  any  advice  given  to  the  Sellers  by  Gunderson  during  the  representation  by  Gunderson  of  the  Company  with  respect  to the  Contemplated  Transactions, then Purchaser shall not use any such communication or advice against the Sellers in any  legal  proceeding  commenced  at  any time  after  the  Closing  between  the  Sellers,  or  the  Sellers’  Representative  acting  on  their  behalf,  and  Purchaser  with  respect  to  the  Contemplated  Transactions;  provided, however, that if (a) any Indemnitee asserts a claim against the Company or any Seller that is  based in whole or in part on an allegation of fraud on the part of an Acquired Company, any Seller or any  officer, director, employee, advisor or agent of any Acquired Company or such Seller on behalf of such  Acquired  Company  or  such  Seller,  as  applicable,  and  (b)  such  Indemnitee,  based  on  independent  evidence, has a good faith belief that such fraud has been committed, then the restriction contained in this  Section 10.20(b) shall not apply to any such communication or advice in the possession of any Acquired  Company that reflects or demonstrates any scienter of the Company, any Seller or any officer, director,  employee, advisor or agent of any Acquired Company or such Seller in connection with such claim.             [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]                                          49  

 

                                                               CONFIDENTIAL         The parties hereto have caused this Agreement to be duly executed and delivered as of the date  first written above.    Purchaser:                             WAL-MART INTERNATIONAL HOLDINGS,                                         INC. a Delaware corporation                                          By:  &#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0;&#0;&#0;    _                                        Name:  &#0;&#0;&#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0;&#0;&#0;                                        Title:    &#0;&#0;&#0;&#0;&#0;&#0; &#0;&#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;                                               &#0;     &#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0; &#0; &#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;   Parent:                                WALMART INC.,                                         a Delaware corporation, for purposes of Section                                         10.18 only                                          By&#0; &#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0;&#0;                                        Name: &#0;&#0;&#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0;&#0;                                        Title:    &#0;&#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0; &#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;  Sellers’ Representative                FORTIS ADVISORS LLC,                                         a Delaware limited liability company                                           By____________________________________                                         Name:                                          Title:     The Sellers:                               ____________________________________                                             Sachin Bansal                MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                                 __________________              Number of Company Shares to Sell    Company Shares*              (on an as-converted to Ordinary Shares    or              basis)                              All  of  my  Company                                                  Shares                     [SIGNATURE PAGE TO SHARE PURCHASE AGREEMENT]  

 

                                  ____________________________________                                 Binny Bansal     MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                      _____________________________________                                 Authorised Representative of Erasmic Venture                                 Fund Limited     MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                      _____________________________________                                 Authorised Representative of Accel India                                 Venture II (Mauritius) Ltd     MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares         [SIGNATURE PAGE TO SHARE PURCHASE AGREEMENT]  

 

                                  _____________________________________                                 Authorised Representative of Accel Growth FII                                 (Mauritius) Ltd     MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                      _____________________________________                                 Authorised Representative of Accel Growth III                                 Holdings (Mauritius) Ltd     MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                      _____________________________________                                 Scottish Mortgage Investment Trust PLC,                                 acting through its agent, Baillie Gifford & Co.     MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares         [SIGNATURE PAGE TO SHARE PURCHASE AGREEMENT]  

 

                                                  _____________________________________                                 Vanguard World Fund, on behalf of its Series                                 Vanguard International Growth Fund, acting                                 through its agent, Baillie Gifford Overseas                                 Limited                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Vanguard Variable Insurance Funds, on behalf                                 of its series of shares known as the                                 International Portfolio, acting through its agent                                 Baillie Gifford Overseas Limited                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of DGF Bravo, Ltd.                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD         [SIGNATURE PAGE TO SHARE PURCHASE AGREEMENT]                 

 

                                                  __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of DST Asia III                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of DST Asia III-B                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of DST Asia IV                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD         [SIGNATURE PAGE TO SHARE PURCHASE AGREEMENT]                 

 

                                                  __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of DST Asia X                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of FKT Mauritius                                 Investment Limited                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of eBay Singapore                                 Services Private Limited                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD         [SIGNATURE PAGE TO SHARE PURCHASE AGREEMENT]                 

 

                                                  __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of Lathe Investment                                 Pte Ltd                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of Greenoaks FKT                                 LLC                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of ICQ Investments                                 I, LP                         [SIGNATURE PAGE TO SHARE PURCHASE AGREEMENT]                 

 

                 MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of Iconiq Strategic                                 Partners, L.P.                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of Iconiq Strategic                                 Partners-B, L.P.                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of Iconiq Strategic                                 Partners Co-Invest, L.P., Series F         [SIGNATURE PAGE TO SHARE PURCHASE AGREEMENT]                 

 

 MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                      _____________________________________                                 Authorised Representative of Iconiq Strategic                                 Partners Co-Invest, L.P., Series FK - G     MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                      _____________________________________                                 Authorised Representative of Iconiq Strategic                                 Partners II, L.P.     MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                      _____________________________________                                 Authorised Representative of Iconiq Strategic         [SIGNATURE PAGE TO SHARE PURCHASE AGREEMENT]  

 

                                               Partners II-B, L.P.                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of Iconiq Strategic                                 Partners II Co-Invest, L.P., Series FK - H                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of IDG Ventures                                 India I LLC                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________         [SIGNATURE PAGE TO SHARE PURCHASE AGREEMENT]                 

 

                                               Authorised Representative of Morgan Stanley                                 Institutional Fund, Inc. - Global Discovery                                 Portfolio, by Morgan Stanley Investment                                 Management Inc. acting as investment adviser                                 to the listed portfolio                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of Brighthouse                                 Funds Trust I - Morgan Stanley Mid Cap                                 Growth Portfolio, by Morgan Stanley                                 Investment Management Inc. acting as                                 investment adviser to the listed portfolio                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   ____________________________________                                 Authorised Representative of Morgan Stanley                                 Institutional Fund, Inc. - Growth Portfolio, by                                 Morgan Stanley Investment Management Inc.                                 acting as investment adviser to the listed                                 portfolio                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD         [SIGNATURE PAGE TO SHARE PURCHASE AGREEMENT]                 

 

                                                  __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of MVP                                 Opportunity Fund II LLC                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of MIH B2C                                 Holdings B.V.                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of New Enterprise                                 Associates - IndoUS Ventures, LLC                         [SIGNATURE PAGE TO SHARE PURCHASE AGREEMENT]                 

 

 MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                      _____________________________________                                 Authorised Representative of PI Opportunities                                 Fund I     MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                      _____________________________________                                 Authorised Representative of INQ Holding                                 LLC     MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                      _____________________________________                                 Authorised Representative of Sofina S.A.         [SIGNATURE PAGE TO SHARE PURCHASE AGREEMENT]  

 

                 MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of Steadview                                 Capital I                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of SVF Holdings                                 (Jersey) L.P., acting through its general partner                                 SVF Holdings GP (Jersey) Limited                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of Vulcan Capital                                 Growth Equity LLC, as the Vice President of                                 Cougar Investment Holdings LLC, the         [SIGNATURE PAGE TO SHARE PURCHASE AGREEMENT]                 

 

                                               Managing Member of Vulcan Capital Growth                                 Equity Management LLC, its Manager                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of Internet Fund II                                 Pte. Ltd.                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                                                   _____________________________________                                 Authorised Representative of Internet Fund III                                 Pte. Ltd.                   MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                       [SIGNATURE PAGE TO SHARE PURCHASE AGREEMENT]                 

 

                                  _____________________________________                                 Authorised Representative of Internet Fund IIIa                                 Pte. Ltd     MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                      _____________________________________                                 Authorised Representative of Tiger Global                                 International II Holdings     MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares                                      _____________________________________                                 Authorised Representative of Tiger Global                                 International IV Holdings     MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                     __________________  Number of Company Shares to Sell    Company Shares*  (on an as-converted to Ordinary Shares    or  basis)                              All  of  my  Company                                      Shares         [SIGNATURE PAGE TO SHARE PURCHASE AGREEMENT]  

 

                                                 _____________________________________                                             Authorised Representative of Tiger Global                                             International III Holdings                  MAXIMUM NUMBER OF COMPANY SHARES TO BE SOLD                                                 __________________              Number of Company Shares to Sell    Company Shares*              (on an as-converted to Ordinary Shares    or              basis)                              All  of my  Company                                                  Shares    * If you wish to sell only a portion of your Company Shares, please enter a whole number of Shares that  you wish to sell, on an as-converted to Ordinary Shares basis, specifically giving effect to the adjusted  conversion rates of the Company’s Series G Shares and Series H Shares. Each Series G Share will be  deemed to represent 1.359156088 Company Shares and each Series H Share will be deemed to  represent 1.61428158 Company Shares for purposes of this Offer. You should fill in the above number  of Company Shares assuming that each Series G Share is actually 1.359156088 Company Shares and  each Series H Share is actually 1.61428158 Company Shares.  Purchaser shall have the authority to  round down the number of shares accepted for purchase if it would result in any fractional shares.                       [SIGNATURE PAGE TO SHARE PURCHASE AGREEMENT]    

 

                                     EXHIBIT A                                                                       CERTAIN DEFINITIONS         For purposes of the Agreement (including this Exhibit A):         “§9.2(a) Claim” has the meaning assigned to such term in Section 9.6(a).         “§9.2(b) Claim” has the meaning assigned to such term in Section 9.6(a).         “Acquired Company” means: (a) the Company; (b) each Subsidiary of the Company; and (c) for  purposes of the Company Representations, each corporation or other Entity that has been merged into, or  that has been combined, amalgamated or consolidated with (including pursuant to a plan or scheme of  arrangement) any of the Entities identified in clauses “(a)” and “(b)” above.         “Acquired  Company  Option”  has  the  meaning  assigned  to  such  term  in  the  Share  Issuance  Agreement.         “Acquired  Company  Warrant”  has  the  meaning  assigned  to  such  term  in  the  Share  Issuance  Agreement.         “Acquisition Transaction” means any transaction or series of transactions involving:               (a)   the  sale,  license,  sublicense  or  disposition  of  all  or  a  material  portion  of  any  Acquired Company’s business or assets, including Intellectual Property;               (b)   the grant, issuance, disposition or acquisition of (i) any share in the capital of any  Acquired  Company  or  other  equity  security  of  any  Acquired  Company,  other  than  Company  Shares  issued upon the exercise or conversion of any Acquired Company Option, Acquired Company Warrant or  Company Preference Share that is outstanding on the Agreement Date and identified in Part 2.3(a), Part  2.3(b), Part 2.3(c)-1, Part 2.3(c)-2, Part 2.3(d)-1 or Part 2.3(d)-2 of the Company Disclosure Schedule, (ii)  any option, call, warrant or right (whether or not immediately exercisable) to acquire any share in the  capital of any Acquired Company or other equity security of any Acquired Company or (iii) any security,  instrument  or  obligation  that  is  or  may  become  convertible  into  or  exchangeable  for  any  share  in  the  capital of any Acquired Company or other equity security of any Acquired Company; or               (c)   any  merger,  demerger,  amalgamation,  plan  or  scheme  of  arrangement,  consolidation,  business  combination,  reorganization,  restructuring  or  similar  transaction  involving  any  Acquired Company.         “Adjusted  Pre-Money  Company  Equity  Value”  means  an  amount  equal  to  $20,000,000,000,  minus the  sum  of:  (a)  the Aggregate  Repurchase  Price; plus (b)  the  Deductible  Company  Transaction  Expense Amount; plus (c) the Closing Debt Amount; plus (d) the Deductible Transaction Bonus Amount;  plus (e) the Specified Warrant Cancelation Payment Amount.          “Advisory Group” has the meaning assigned to such term in Section 10.1(f).         “Affiliate”  means,  with  respect  to  any  Person,  any  other  Person  controlling,  controlled  by  or  under  common  control  with  such  Person.  For  purposes  of this  definition  and  the  Agreement,  the  term  “control” (and correlative terms) means the power, whether by contract, equity ownership or otherwise, to  direct the policies or management of a Person.  In addition, a natural person’s spouse and other members                                         A-1  

 

   of such natural person’s immediate family shall be deemed “Affiliates” of such natural person. The term  “Affiliate” shall be deemed to include current and future “Affiliates.”         “Aggregate Repurchase Price” means the aggregate dollar amount paid or payable by or on behalf  of  the  Company  to  Persons  that  are  or  were  shareholders  of  the  Company  in  connection  with  the  Repurchase Transactions.         “Agreed Amount” has the meaning assigned to such term in Section 9.6(d).         “Agreement” has the meaning assigned to such term in the Preamble to the Agreement.         “Agreement Date” has the meaning assigned to such term in the Preamble to the Agreement.         “AML Laws” has the meaning assigned to such term in Section 2.5.         “Anti-Corruption  Law”  means  the  United  States  Foreign  Corrupt  Practices  Act  of  1977,  as  amended, the United Kingdom Bribery Act 2010, as amended, the Indian Prevention of Corruption Act,  1988, as amended, or any other law or regulation that prohibits the conferring of any gift, payment, thing  of  value  or  other  benefit on  any  person  or  any  officer,  employee,  agent  or advisor  of  such  person,  or  which has as its objective the prevention of corruption and/or bribery.         “API” means application program interface.         “Apportioned  Litigation  Reserve  Amount”  has  the  meaning  assigned  to  such  term  in Section  9.3(c)(i).         “Arbitrable Indemnification Dispute” has the meaning assigned to such term in Section 9.6(f).         “Attachment Notice” has the meaning assigned to such term in paragraph 4.2 of Schedule 10.         “Attachment Order” has the meaning assigned to such term in paragraph 4.2 of Schedule 10.         “Award Amount” has the meaning assigned to such term in Section 9.6(f)(v).         “Big Four Accounting Firm” means any of: (a) Deloitte Touche Tohmatsu or any of its Indian  Affiliates  or  associates;  (b)  KPMG  or  any  of  its  Indian  Affiliates  or  associates;  (c)  PricewaterhouseCoopers  or  any  of  its  Indian  Affiliates  or  associates;  and  (d)  EY  or  any  of  its  Indian  Affiliates or associates.         “Burdensome Condition” means any condition, remedy or action that Purchaser is not obligated  to accept or take pursuant to Section 5.1(d).         “Business  Day” means any  day  other  than  a  Saturday,  Sunday  or  public  holiday  in  India,  Singapore or the state of Arkansas, USA.         “CCI” means the Competition Commission of India.         “CCI Approval” has the meaning assigned to such term in Section 6.3(a).         “CCI Regulations” means the Competition Act 2002 read with The Competition Commission of  India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011.                                         A-2  

 

      “Charter Document” means, with respect to any Entity, the constitution, articles of association,  bylaws and/or any other applicable organizational document of such Entity.         “Claimed Amount” has the meaning assigned to such term in Section 9.6(a).         “Closing” has the meaning assigned to such term in Section 1.2.         “Closing Date” has the meaning assigned to such term in Section 1.2.         “Closing  Debt  Amount”  means  the amount  (denominated  in  dollars  and  determined  using  the  Specified  Exchange  Rate,  as  applicable),  if  any,  by  which  (a)  the  aggregate  amount  of  Company  Indebtedness (on a consolidated basis) as of the Closing, other than Company Indebtedness for borrowed  money  incurred  for  working  capital  purposes  and  secured  by  cash  or  inventory  of  the  Acquired  Companies, exceeds (b) $5,000,000. For clarity, if the aggregate amount of the Company Indebtedness  referred to in clause “(a)” is less than or equal to $5,000,000, then the Closing Debt Amount shall be zero.         “Code” means the U.S. Internal Revenue Code of 1986, as amended. All references to the Code,  the Treasury Regulations or other governmental pronouncements shall be deemed to include references to  any applicable successor regulations or amending pronouncement.         “Company” has the meaning assigned to such term in the Preamble to the Agreement.         “Company  Closing  Certificate”  has  the  meaning  assigned  to  such  term  in  the  Share  Issuance  Agreement.         “Company Compliance Representations” means: (a) the representations and warranties made by  the  Company  in Section  2.4(c) (Internal  Controls)  and Section  2.12 (other  than Sections  2.12(a) and  2.12(j)) (Compliance with Legal Requirements) of the Share Issuance Agreement; (b) all statements and  other  items  of  information  set  forth  in  the  Company  Disclosure  Schedule  relating  to  any  of  the  representations and warranties specified in clause “(a)” above; and (c) the representations and warranties  set forth in the Company Closing Certificate, to the extent such representations and warranties relate to  any of the matters addressed in any of the representations and warranties specified in clause “(a)” above.          “Company  Consideration  Spreadsheet” has  the  meaning  assigned  to  such  term  in  the  Share  Issuance Agreement.         “Company Disclosure Schedule” means the schedule (dated as of the Agreement Date) delivered  to  Purchaser  on  behalf  of  the  Company  and  prepared  in  accordance  with Section  10.17 of  the  Share  Issuance Agreement.         “Company Employee” means any current or former director, officer, employee, secondee, agent,  independent contractor or consultant of any Acquired Company.         “Company  Indebtedness”  means  any  Indebtedness  of  any  Acquired  Company  (including  any  Indebtedness with respect to which any Acquired Company is or may become subject to any obligation or  other Liability).         “Company Option” means an option to purchase Company Ordinary Shares from the Company,  including, for the avoidance of doubt, any stock option unit issued under the Flipkart 2015 Stock Option  Unit Sub-Plan, but excluding any Company Warrant.                                         A-3 

 

         “Company  Ordinary  Shares”  means,  collectively,  the  ordinary  shares  in  the  capital  of  the  Company.          “Company Preference Shares” means preference shares in the capital of the Company, including  the Series A Shares, the Series B Shares, the Series C Shares, the Series D Shares, the Series E Shares, the  Series F Shares, the Series G Shares, the Series H Shares and the Series I Shares.         “Company Representations” means, collectively, the Company Compliance Representations, the  Company  Tax  Representations,  the  General  Company  Representations  and  the  Fundamental  Company  Representations.         “Company  Shares”  means,  collectively, the  Company  Ordinary  Shares  and  the  Company  Preference Shares.         “Company  Tax  Representations”  means:  (a)  the  representations  and  warranties  made  by  the  Company in Section 2.14 (Tax Matters) of the Share Issuance Agreement; (b) all statements and other  items of information set forth in the Company Disclosure Schedule relating to any of the representations  and warranties specified in clause “(a)” above; and (c) the representations and warranties set forth in the  Company  Closing  Certificate,  to  the  extent  such  representations  and  warranties  relate  to  any  of  the  matters addressed in any of the representations and warranties specified in clause “(a)” above.         “Company Transaction Expense” means each of the following Expenses (whether or not incurred  on or before the Agreement Date, during the Pre-Closing Period or at or after the Closing, whether or not  invoiced before the Closing and whether or not paid before the Closing) incurred by or on behalf of any  Acquired Company, or to or for which any Acquired Company was, is or becomes subject or liable, in  connection with or relating to the Agreement, the Share Issuance Agreement or any of the Contemplated  Transactions or the process resulting in such transactions: (a) Expenses described in Section 10.4(b); (b)  any  Expense  paid  or  payable  to  outside  legal  counsel  or  to  any  financial  advisor,  investment  banker,  consultant, broker, accountant or other Person who performed services for or on behalf of, or provided  advice to, any Acquired Company or any Representative of any Acquired Company, or who is otherwise  entitled to any compensation or payment from any Acquired Company, in connection with or relating to  the Agreement, the Share Issuance Agreement or any of the Contemplated Transactions or the process  resulting  in  such  transactions;  and  (c)  any  Expense  incurred  by  or  on behalf  of  any  securityholder  or  Representative  of  any  Acquired  Company  in  connection  with  or  relating  to  the  Agreement,  the  Share  Issuance Agreement or any of the Contemplated Transactions or the process resulting in such transactions  that any Acquired Company paid or pays, or reimbursed or reimburses, or was, is or will be obligated to  pay or reimburse. For clarity, the term “Company Transaction Expense” shall not be deemed to include  any payment required to be made to the counterparty to a Material Contract (as such term is defined in the  Share  Issuance  Agreement)  for  the  purpose  of  inducing  such  counterparty  to  grant  to  the  Company  a  Consent  required  to  be  obtained  in  connection  with  the  Contemplated  Transactions  or  any  payment  required to be made to a Governmental Entity for the purpose of inducing such Governmental Entity to  grant  a  Governmental  Authorization  required  to  be  obtained  in  connection  with  the  Contemplated  Transactions.         “Company Warrant” means a warrant to purchase Company Shares from the Company.         “Computer Software” means computer software, data files, source and object codes, APIs, tools,  user interfaces, manuals and other specifications and documentation and all know-how relating thereto.         “Confidential Information” includes: (a) any information that is owned, used or possessed by any  Acquired Company as of the Closing in connection with its business, held in any form, and any related                                         A-4  

 

   goodwill, including  (i)  all  Intellectual  Property  and  Intellectual  Property  Rights,  (ii)  all  information  contained  in  or  derived  from  Computer  Software,  databases,  drawings,  data,  formulae,  specifications,  component  lists,  instructions,  manuals,  brochures,  catalogues  and  process  descriptions and  (iii)  all  financial and other commercial information, including any information concerning (A) the marketing of  goods or services, including customer names and lists and other details of customers, cost of materials and  labor,  pricing  and  commission  structures,  sales  targets,  sales  statistics,  market  research  reports  and  surveys, and advertising or other promotional materials or (B) future projects, business development or  planning, budgets and targets, commercial relationships and related negotiations; (b) any information that  is owned, used or possessed by Purchaser or any of Purchaser’s Affiliates as of the Closing in connection  the  business  of  Purchaser  and  its  Affiliates,  held  in  any  form,  and  any  related  goodwill;  and  (c)  Transaction-Related Confidential Information.          “Consent” means any approval, consent, ratification, permission, waiver, order or authorization  (including any Governmental Authorization).         “Contemplated Transactions” means all transactions and actions contemplated by the Agreement  (including  the  Secondary  Share  Purchase  and  the  Share  Issuance)  and  all  transactions  and  actions  contemplated by the agreements, plans and other documents entered into or delivered in connection with,  or referred to in, the Agreement.          “Contested Amount” has the meaning assigned to such term in Section 9.6(b).         “Contract”  means  any  legally  binding  written,  oral  or  other  agreement,  contract,  license,  sublicense, subcontract, settlement agreement, deed, lease, power of attorney, instrument, note, purchase  order,  warranty,  insurance  policy,  benefit  plan  or  other  legally  binding  commitment,  understanding,  arrangement or undertaking of any nature.         “Conversion Event” has the meaning assigned to such term in the Recitals to the Agreement.         “Conversion Factor” means: (a) with respect to each Company Share (other than a Series G Share  or a Series H Share), 1; (b) with respect to each Series G Share, 1.359156088; and (c) with respect to each  Series H Share, 1.61428158.          “Damages” means any loss, damage, injury, liability, settlement, judgment, award, fine, penalty,  Tax, fee (including reasonable attorneys’ fees), charge, cost (including costs of investigation) or expense  of any nature; provided, however, that “Damages” shall not include any punitive damages or exemplary  damages unless such damages are awarded to a third party by a Governmental Entity in connection with  any Legal Proceeding.         “Deductible Company Transaction Expense Amount” means an amount denominated in dollars  (determined  using  the  Specified  Exchange  Rate,  as applicable)  equal to the product  of:  (a)  an  amount  equal to (i) the aggregate amount of Company Transaction Expenses; multiplied by (b) a fraction having  (i) a numerator equal to the Fully Diluted Share Number and (ii) a denominator equal to the sum of (A)  the aggregate number of Purchased Shares (determined on an as-converted-to-Company Ordinary Shares  basis), plus (B) the aggregate number of Issued Shares.         “Deductible  Transaction  Bonus  Amount’  means  an  amount  equal  to  the  product  of  (a)  the  Transaction  Bonus  Amount,  multiplied  by (b) the  fraction  having  (i)  a  numerator  equal  to the  Fully  Diluted  Share  Number; and  (ii)  a  denominator  equal  to  the aggregate  number  of  Purchased  Shares  (determined on an as-converted-to-Company Ordinary Shares basis).                                         A-5  

 

         “Designated  Personal  Representations”  means  the  representations  and  warranties  set  forth  in  Section 2.1 (other than Section 2.1(c)) (Capacity and Authority) and Section 2.3 (Title and Ownership).         “Disbursing Agent”  means a bank or trust company selected by Purchaser to act as disbursing  agent in connection with the Contemplated Transactions.         “Dispute Period” has the meaning assigned to such term in Section 9.6(b).         “DTAA” means any Double Taxation Avoidance Agreement entered into between India and any  country where a Seller is resident.         “Eligible  Shareholders”  means  any  shareholder  of  the  Company  who  is  not  a  party  to  this  Agreement on the Agreement Date.         “Encumbrance”  means  any  lien,  pledge,  hypothecation,  charge,  mortgage,  security  interest,  encumbrance, license, possessory interest, conditional sale or other title retention arrangement, intangible  property right, claim, infringement, option, right of first refusal, preemptive right, community property  interest or restriction of any similar nature (including any restriction on the voting of any security or the  receipt  of  any  income  derived  from  any  asset,  or  any  restriction  on  the  transfer,  use,  possession  or  ownership of any security or other asset).  For clarity, the provisions of the Constitution of the Company  shall not be deemed to be an Encumbrance with respect to any Company Shares.         “End Date” has the meaning assigned to such term in Section 8.1(b).         “Enforceability  Exception”  means  the  effect,  if any,  of:  (a)  applicable  bankruptcy,  insolvency,  moratorium or other similar laws affecting the rights of creditors generally; and (b) rules of law governing  specific performance, injunctive relief and other equitable remedies.         “Entity”  means  any  corporation  (including  any  non-profit  corporation),  general  partnership,  limited  partnership,  limited  liability  partnership,  joint  venture,  estate,  trust,  company  (including  any  limited  liability  company,  joint  stock  company,  company  limited  by  shares  or  company  limited  by  guarantee, whether public or private), firm, body corporate or incorporate (whether or not having separate  legal personality) or other enterprise, association, organization or entity.          “Escrow Agent” has the meaning assigned to such term in Section 1.1(b).          “Escrow Agreement” means an escrow agreement in a form mutually agreed among Purchaser,  the Escrow Agent and the Sellers’ Representative before the Closing.          “Escrow Amount” means an amount equal to ****% of the Price Per Secondary Share multiplied  by the  aggregate  number  of  Purchased  Shares  (determined  on  an  as-converted-to-Company  Ordinary  Shares basis) sold by the Sellers to Purchaser pursuant to the Agreement.          “Escrow Fund” means, at any time, the aggregate funds and other assets then held in the escrow  account  established  by  depositing  the  Escrow  Amount  with  the  Escrow  Agent  in  accordance  with  the  Escrow Agreement to partially secure the indemnification obligations of the Sellers to the Indemnitees.         “Exclusion  Option”  has  the  meaning  assigned  to  such  term  in Section 1.1(a).           Confidential Information has been omitted from this page and replaced by the asterisks appearing on this page.   Such  Confidential  Information  has  been  filed  separately  with  the  Securities  and  Exchange  Commission.   Confidential  treatment has been requested with respect to this omitted information under Rule 406 under the Securities Act of 1933, as  amended, and Rule 24b-2 under the Securities Exchange Act of 1934, as amended.                                         A-6  

 

            “Existing Registration Rights Agreement” means the Amended and Restated Registration Rights  Agreement  dated  as  of  September  20,  2017,  by  and  among  the  Company  and  the  shareholders  of  the  Company that are parties thereto.         “Existing Shareholders’ Agreement” means the Amended and Restated Shareholders Agreement  dated as of September 20, 2017, by and among the Company and the shareholders of the Company that  are parties thereto, disregarding any amendments made during the Pre-Closing Period.         “Expense” means any fee, cost, expense, payment, expenditure or similar liability.         “Expense Fund” means, at any time, the aggregate funds and other assets then held by the Sellers’  Representative in a segregated client funds account in accordance with Section 10.1(e).         “Expense Fund Amount” has the meaning assigned to such term in Section 10.1(e).         “Export Controls” has the meaning assigned to such term in Section 2.5.         “Form  E4A”  means  the  Form  E4A  (Requisition  Form  for  Share  Transfer)  prescribed  by  the  Inland Revenue Authority of Singapore.         “fraud” means fraud within the meaning of Delaware law, with scienter, as defined in accordance  with Delaware law.          “Fully Diluted Share Number” means an amount equal to the sum of, without duplication: (a) the  aggregate number of Company Ordinary Shares issued and outstanding immediately prior to the Closing;  plus (b) the aggregate number of Company Ordinary Shares that would be issuable upon the conversion  of the Company Preference Shares that are issued and outstanding immediately prior to the Closing; plus  (c)  the  aggregate  number  of  Company  Ordinary  Shares  purchasable  under  or  otherwise  subject  to  Company  Options  or  Company  Warrants  outstanding  immediately  prior  to  the  Closing; plus (d)  the  aggregate  number  of  Company  Ordinary  Shares  issuable  upon the  conversion  of  Company  Preference  Shares purchasable under or otherwise subject to Company Warrants outstanding immediately prior to the  Closing; plus (e)  the  aggregate  number  of  Company  Ordinary  Shares  purchasable  under  or  otherwise  subject to any right (other than a Company Option or a Company Warrant) to acquire Company Shares  (whether  or  not  immediately  exercisable)  outstanding  immediately  prior  to  the  Closing  (in  each  case,  determined  on  an  as-converted-to- Company  Ordinary  Shares  basis); plus (f)  the  aggregate  number  of  Company Ordinary Shares that would be issuable upon the conversion of any convertible securities of the  Company (other than Company Preference Shares) outstanding immediately prior to the Closing.         “Fundamental Company Representations” means: (a) the representations and warranties made by  the  Company  in Sections  2.1(a) (Due  Organization;  Etc.), 2.3 (Capitalization), 2.10(t) (Intellectual  Property), 2.20 (Authority;  Binding  Nature  of  Agreements)  and 2.22 (Brokers)  of  the  Share  Issuance  Agreement;  (b)  all  statements  and  other  items  of  information  set  forth  in  the  Company  Disclosure  Schedule  relating  to  any  of  the  representations  and  warranties  specified  in  clause  “(a)”  above;  (c)  the  representations  and  warranties  set  forth  in  the  Company Closing  Certificate,  to  the  extent  such  representations  and warranties  relate to any of the  matters addressed in any of the  representations  and  warranties specified in clause “(a)” above; and (d) the representations, warranties, certifications and other  statements  and  information  set  forth  in  the  Company  Consideration  Spreadsheet  and  the  Sellers’  Consideration Spreadsheet.          “General Cap Amount” has the meaning assigned to such term in Section 9.3(d)(i).                                         A-7  

 

         “General Company Representations” means: (a) the representations and warranties made by the  Company  in  the  Share  Issuance  Agreement,  other  than  the  Company  Compliance  Representations,  the  Company Tax  Representations and  the  Fundamental Company  Representations, and all statements and  other  items  of  information  set  forth  in  the  Company  Disclosure  Schedule  relating  to  any  of  such  representations  and  warranties;  and  (b)  the  representations  and  warranties  set  forth  in  the  Company  Closing  Certificate,  to  the  extent  such representations  and  warranties  relate  to  any  of  the  matters  addressed in any of the representations and warranties specified in clause “(a)” above.         “General  Representation  Expiration  Time”  has  the  meaning  assigned  to  such  term  in Section  9.1(a).         “Government  Official” means  any  person  qualifying  as  a  public  official  under  any  Legal  Requirement of any relevant jurisdiction, and also includes:                      (c)   a  person  who  holds  a  legislative,  judicial,  or  managerial  position  in  or with  a  Governmental Entity;               (d)   a person holding an official position, such as an employee, officer or director, in  or with any Governmental Entity or state-owned  or controlled  commercial or other enterprise that has  supervisory  or  regulatory  oversight  over  any  of  the  Acquired  Companies,  or  which  is,  or  is  likely  to  become, a customer of any Acquired Company;               (e)   other  than  in  or  with  those  Governmental  Entities  described  in  clause  “(b)”  above, a person holding an official position, such as an officer or director, in or with any Governmental  Entity or state-owned or controlled commercial or other enterprise;               (f)   an individual “acting in an official capacity,” such as pursuant to a delegation of  authority, from a Governmental Entity to carry out official responsibilities;                (g)   an official of a public international organization such as the United Nations, the  World Bank, the International Monetary Fund or a regional development bank;               (h)   an official of a political party or a candidate for political office;               (i)   an  immediate  family  member,  such  as  a  parent,  spouse,  sibling  or  child  of  a  person referred to in any of clauses “(a)” through “(f)” above; and               (j)   an agent or intermediary of any person referred to in any of clauses “(a)” through  “(g)” above.          “Governmental  Authorization”  means  any:  (a)  permit,  license,  approval,  certificate,  franchise,  permission,  clearance,  Consent,  registration,  variance,  sanction,  exemption,  order,  qualification  or  authorization  issued,  granted,  given  or  otherwise  made  available  by  or  under  the  authority  of  any  Governmental Entity or pursuant to any applicable Legal Requirement; or (b) right under any Contract  with any Governmental Entity.         “Governmental Entity” means any: (a) nation, multinational, supranational, state, commonwealth,  province,  territory,  county, municipality,  district  or  other  jurisdiction  of  any  nature;  (b)  federal,  state,  provincial, local, municipal, foreign or other government; (c) instrumentality, public sector undertaking,  state-owned  enterprise,  subdivision,  department,  ministry,  board,  court,  administrative  agency  or  commission, or other governmental entity, authority or instrumentality or political subdivision thereof; or                                         A-8  

 

   (d) quasi-governmental body exercising any executive, legislative, judicial, regulatory, taxing, importing  or  other  governmental  functions  or  any  stock  exchange  or  self-regulatory  organization,  including  the  Securities Industry Council of Singapore.         “Gunderson” has the meaning assigned to such term in Section 10.20(a).         “Identified Seller” means each of Sachin Binsal, Binny Binsal and PI Opportunities Fund I.          “IFRS” means the International Financial Reporting Standards.         “Indebtedness” of a Person means, without duplication: (a) any obligation (including the principal  amount  thereof and,  if  applicable,  the  accreted  amount  thereof  and  the  amount  of  accrued  and  unpaid  interest thereon) of such Person, whether long-term or short-term, whether or not represented by a bond,  debenture, note or other security or instrument and whether or not convertible into any other security or  instrument,  for  the  repayment  of  money  borrowed,  whether  owing  to  a  bank,  to  another  financial  institution, to a Governmental Entity, on an equipment lease or otherwise; (b) any deferred obligation of  such Person for the payment of the purchase price of any property or other asset purchased (other than  current accounts payable that were incurred in the ordinary course of business); (c) any obligation of such  Person to pay rent or other amounts under a lease which is required to be classified as a capital lease or a  capitalized  liability  on  a  balance  sheet  prepared  in  accordance  with  IFRS  or generally  accepted  accounting principles and best practices in India; (d) any outstanding reimbursement obligation of such  Person with respect to any letter of credit, bankers’ acceptance or similar facility issued for the account of  such  Person  that  has  been  drawn  upon;  (e)  any  obligation  of  such  Person  under  any  agreement  with  respect  to  any  swap,  forward,  future  or  derivative  transaction  or  any  option  or  similar  agreement  involving, or settled by reference to, any rate, currency, commodity, price of any equity or debt security or  instrument or any economic, financial or pricing index or measure of economic, financial or pricing risk  or  value,  or  any  similar  transaction  or  combination  of  the  foregoing  transactions;  (f)  any  obligation  secured by any Encumbrance existing on any property or other asset owned by such Person, whether or  not indebtedness secured thereby has been assumed; (g) any guaranty, endorsement, assumption or other  similar contingent obligation of such  Person in respect of, or to purchase  or to otherwise  acquire,  any  indebtedness of another Person; and (h) any premium, penalty, fee, expense, breakage cost or change of  control payment required to be paid or offered in respect of any of the foregoing on prepayment, as a  result of the consummation of any of the Contemplated Transactions or any transaction in connection with  any lender Consent. For clarity, in no event shall Indebtedness include any intercompany indebtedness  among the Acquired Companies.         “Indemnitees”  means  the  following  Persons:  (a)  Purchaser;  (b)  Purchaser’s  Affiliates;  (c)  the  respective  Representatives  of  the  Persons  referred  to  in  clauses  “(a)”  and “(b)”  above;  and  (d)  the  respective  successors  and  assigns  of  the  Persons  referred  to  in  clauses  “(a),”  “(b)”  and  “(c)”  above;  provided,  however,  that  neither  the Sellers nor  the  Acquired  Companies  shall  be  deemed  to  be  “Indemnitees.”         “Indian Tax Year” means the 12-month period commencing on April 1st of a particular calendar  year and ending on March 31st of the following calendar year.         “Injunctive Order” has the meaning assigned to such term in paragraph 6 of Schedule 10.         “Insider Receivable” means any amount (including any loan, advance or other amount) owed to  any Acquired Company by a director, executive officer or shareholder of any Acquired Company, other  than any such amount owed to the Company by an employee of any Acquired Company in the ordinary  course of the Acquired Companies’ business.                                         A-9  

 

         “Intellectual Property” means algorithms, APIs, apparatus, data, data collections and databases,  diagrams, designs, formulae, inventions (whether or not patentable), know-how, logos, marks (including  brand names, product names, logos, domain names, and slogans), methods, network configurations and  architectures, processes, proprietary information, protocols, schematics, specifications, software, software  code (in any form, including source code and executable or object code), subroutines, techniques, user  interfaces, URLs, web sites, works of authorship (including presentations and all other written materials)  and other forms of technology (whether or not embodied in any tangible form and including all tangible  embodiments of the foregoing, such as instruction manuals, laboratory notebooks, prototypes, samples,  studies and summaries).         “Intellectual  Property  Rights” means  all  rights  of  the  following  types,  which  may  exist  or  be  created under the laws of any jurisdiction in the world, in each case whether registered or unregistered: (a)  rights  associated  with  works  of  authorship,  including  exclusive  exploitation  rights,  design  rights,  and  copyrights; (b) Trademark rights, rights in domain names, and similar rights; (c) Trade Secret rights and  similar rights; (d) Patent and industrial property rights and similar rights; (e) other proprietary rights in  Intellectual Property; (f) database rights and similar rights; and (g) rights in or relating to registrations,  renewals, extensions, reversions, combinations, divisions, and reissues of, and applications for, any of the  rights referred to in clauses “(a)” through “(f)” above.         “Issued Shares” has the meaning assigned to such term in the Share Issuance Agreement.         “IT Act” means the (Indian) Income Tax Act, 1961, together with any statutory modifications or  re-enactment thereof and with all applicable bye-laws, rules, regulations, orders, circulars, notifications,  ordinances and the like issued thereunder.         “JAMS Rules” means JAMS’ Comprehensive Arbitration Rules and Procedures.         An individual shall be deemed to have “Knowledge” of a particular fact or other matter if: (a)  such individual is actually aware of such fact or other matter; or (b) a prudent individual could reasonably  be  expected  to  have  discovered  or  otherwise  become  aware  of  such  fact  or  other  matter  after  having  conducted a reasonable inquiry under the circumstances with respect thereto.  Further, a Seller that is an  Entity shall be  deemed  to have  “Knowledge” of a  particular fact or other matter if such Seller or any  officer,  director,  general  partner  or  manager  (director  equivalent  only)  of  such  Seller  has  or  had  Knowledge of such fact or other matter. Purchaser shall be deemed to have “Knowledge” of a particular  fact or other matter if any officer or director of Purchaser has or had Knowledge of such fact or other  matter.         “Legal Proceeding” means any action, suit, litigation, arbitration, application, claim, proceeding  (including  any  civil, criminal,  administrative,  investigative  or  appellate  proceeding),  hearing,  inquiry,  audit, examination, review or investigation commenced,  brought, conducted  or heard by or before  any  court  or  other  Governmental  Entity  (including  any  Taxing  Authority)  or  any  arbitrator  or  arbitration  panel.         “Legal  Requirement”  means  any  national,  federal,  state,  provincial,  local,  municipal,  foreign,  supranational or other law, statute, constitution, treaty, controlling principle of common law, directive,  resolution,  ordinance,  code,  edict,  Order,  rule,  regulation  or  requirement  issued,  enacted,  adopted,  promulgated,  entered,  implemented  or  otherwise  put  into  effect  by  or  under  the  authority  of  any  Governmental Entity.         “Liability” means any debt, obligation, duty or liability of any nature (including any unknown,  undisclosed,  unmatured,  unaccrued,  unasserted,  contingent,  indirect,  conditional,  implied,  vicarious,                                        A-10  

 

   derivative,  joint,  several  or  secondary  liability),  regardless  of  whether  such  debt,  obligation,  duty  or  liability would  be  required  to  be  disclosed  on  a  balance  sheet  prepared  in  accordance  with IFRS and  regardless of whether such debt, obligation, duty or liability is immediately due and payable.         “Liquidation  Event  Waiver”  has  the  meaning  assigned  to  such  term  in  the  Recitals  to  the  Agreement.         “Material Adverse Effect” means any change, event, effect, claim, circumstance or matter (each,  an “Effect”) that (considered together with all other Effects) is, or could reasonably be expected to be or  to become, materially adverse to: (a) the business, condition, assets, liabilities, operations or results of  operations  of  the  Acquired  Companies,  taken  as  a  whole;  or  (b)  Purchaser’s  right  to  own,  transfer  or  exercise voting rights with respect to, or to receive dividends or other distributions with respect to, any  Company Shares following the Closing; provided, however, that, for purposes of clause “(a)” only, none  of the  following shall, either alone  or in combination, be  taken  into account in determining whether a  Material Adverse Effect has occurred (unless, in the case of each of clauses “(i),” “(ii),” “(iii),” “(iv)” and  “(v)”  below,  it  has  a  disproportionate  effect  on  any  Acquired  Company  as  compared  to  the  other  companies in the industry in which such Acquired Company operates, in which case, only the extent of  such disproportionate effect shall be taken into account when determining whether a Material Adverse  Effect has occurred): (i) adverse changes in general economic conditions, adverse changes affecting the  industry in which the Acquired Companies operate or adverse changes in global capital or global financial  markets  generally,  in  each  case,  occurring  after  the  Agreement  Date;  (ii)  acts  of  war,  sabotage  or  terrorism or military actions (or any escalation or worsening thereof), in each case, occurring after the  Agreement Date; (iii) earthquakes, hurricanes, tornadoes, floods or other natural disasters, in each case,  occurring after the Agreement Date; (iv) changes after the Agreement Date in Legal Requirements (or the  interpretation  thereof),  excluding  (A)  any  change  in the  (Indian)  Foreign  Exchange  Management  Act,  1999 or any rule, regulation or circular promulgated, made or issued thereunder or the interpretation of  any  of  the  foregoing  and  (B)  any  change  in  any  Legal Requirement  directly  relating  to  the (Indian)  Foreign Exchange Management Act, 1999 or any rule, regulation or circular promulgated, made or issued  thereunder or the interpretation of any of the foregoing; (v) changes after the Agreement Date in IFRS (or  the interpretation thereof); (vi) any loss of, or adverse change in the Acquired Companies’ relationships  with,  employees,  customers,  suppliers  or  business  partners  of  the  Acquired  Companies  after  the  Agreement Date that has arisen from the announcement or pendency of the Agreement; (vii) any failure to  take a specifically identified action requested by the Company that is prohibited by the terms of Section  4.2  (other  than  Sections  4.2(a),  4.2(b)  and  4.2(c))  of  the  Share  Issuance  Agreement  for  which  such  specifically identified action Purchaser has not provided its consent following receipt of a written request  therefor  from  the  Company;  or  (viii)  any  failure,  in  and  of  itself,  of  the  Company  to  meet  financial  projections,  estimates  or  forecasts  after  the  Agreement  Date  (it  being  understood  that  any  fact  or  circumstance giving rise to such failure may constitute a Material Adverse Effect and may be taken into  account in determining whether a Material Adverse Effect has occurred).          “New Shareholders’ Agreement” has the meaning assigned to such term in Section 4.7.         “Notice of Claim” has the meaning assigned to such term in Section 9.6(a).         “Order”  means  any  order,  writ,  injunction,  judgment,  edict,  decree,  ruling  or  award  of  any  arbitrator or any court or other Governmental Entity.         “PAN Substitute” means, with respect to any Seller: (a) the name, e-mail id and contact number  of such Seller; (b) the address of such Seller in such Seller’s country of residence; (c) a certified copy of a  valid tax residence certificate issued by the relevant Governmental Entity to such Seller in such Seller’s  country of residence covering the entire Indian Tax Year in which the Closing occurs; (d) a certified copy                                        A-11  

 

   of a tax identification number of such Seller in such Seller’s country of residence or, if no such number is  available, the unique number assigned to such Seller by the relevant Governmental Entity in such Seller’s  country of residence for purposes of identifying such Seller; or (e) a certified copy of the unique number  on the basis of which such Seller is identified by the relevant Government Entity of the country where  such Seller is a resident.         “Parent” has the meaning assigned to such term in the Preamble to the Agreement.         “Parties” has the meaning assigned to such term in paragraph 1 of Schedule 10.         “Patents” means patents (including utility, utility model, plant and design patents, and certificates  of  invention),  patent  applications (including  additions,  provisional,  national,  regional  and  international  applications, as well as original, continuation, continuation-in-part, divisional, and continued prosecution  applications, and all patents issuing thereon), reissues, reexaminations, substitutes, and extensions of any  of the foregoing, patent or invention disclosures, registrations, applications for registrations and any term  extension or other governmental action which provides rights beyond the original expiration date of any  of the foregoing.         “Permitted Residual Information” means information that: (a) is retained in the unaided memories  of  natural  persons  who  are  a  Seller’s  employees  or  general  partners  who  properly  have  had  access  to  Confidential Information (for clarity, a natural person’s memory is unaided if such natural person has not  intentionally memorized Confidential Information for the purpose of retaining and subsequently using or  disclosing it and has not reviewed, referenced or consulted any written or otherwise recorded Confidential  Information  after  it  was  first  disclosed  to  such  natural  person);  and  (b)  consists  of  general,  high-level  business  or  operational  know  how  regarding  the  industries  in  which  the  Acquired  Companies  operate;  provided, however,  that  under  no  circumstances  will  any  confidential  or  proprietary  information  (including  any  product,  service  or  technology)  that  specifically  relates  to  the  business  of  any  of  the  Acquired Companies be considered “Permitted Residual Information.”         “Person” means any individual, Entity or Governmental Entity.         “Personal Representations” means the representations and warranties set forth in Section 2.         “Personal Tax Representations” means the representations and warranties set forth in Section 2.4.         “POEM” has the meaning assigned to such term in Section 2.4(a).         “Pre-Closing Period” means the period commencing on the Agreement Date and continuing until  the earlier of the termination of the Agreement pursuant to Section 8 and the Closing.         “Price Per Secondary Share” means an amount denominated in dollars equal to the Adjusted Pre- Money Company Equity Value divided by the Fully Diluted Share Number.         “Pro  Rata  Portion”  means,  for  any  Seller,  the  fraction  having:  (a)  a  numerator  equal  to  the  aggregate  number  of  Purchased  Shares  (determined  on  an  as-converted-to-Company  Ordinary  Shares  basis) sold by such Seller to Purchaser pursuant to this Agreement; and (b) a denominator equal to the  aggregate  number  of  Purchased  Shares  (determined  on  an  as-converted-to-Company  Ordinary  Shares  basis).                                         A-12  

 

         “Purchased Shares” means the Company Shares to be sold by the Sellers to Purchaser pursuant to  the  Agreement,  excluding  any  Company  Shares  with  respect  to  which  Purchaser  has  exercised  the  Exclusion Option.         “Purchaser” has the meaning assigned to such term in the Preamble to the Agreement.         “Purchaser Cure Period” has the meaning assigned to such term in Section 8.1(g).         “Purchaser  Derivative  Damages”  means  Damages  deemed  to  be  incurred  by  Purchaser  by  operation of Section 9.2(c)(i) as a result of Damages that an Acquired Company has suffered, incurred or  otherwise become subject to.         “Purchaser Guarantee” has the meaning assigned to such term in Section 10.18(b).         “Purchaser Guaranteed Obligations” has the meaning assigned to such term in Section 10.18(a).         “Purchaser Secondary Ownership Percentage” means the fraction having: (a) a numerator equal  to the  aggregate  number  of  Purchased  Shares (determined  on  an  as-converted-to-Company  Ordinary  Shares basis); and (b) a denominator equal to the Fully Diluted Share Number.         “Remaining Available Escrow Amount” means, at any time, the aggregate amount available in  the  Escrow Fund (after deducting the  aggregate  dollar amount of all Claimed Amounts  under pending  Notices of Claim) as of such time.         “Remaining §9.2(a) Claim Retained Amount” has the meaning assigned to such term in Section  9.6(i)(i).         “Remaining §9.2(b) Claim Retained Amount” has the meaning assigned to such term in Section  9.6(i)(ii).         “Representatives”  means  officers,  directors,  employees,  secondees,  agents,  attorneys,  accountants, advisors and representatives. The term “Representatives” shall be deemed to include current  and future “Representatives.”           “Repurchase  Transactions”  has  the  meaning  assigned  to  such  term  in  the  Recitals  to  the  Agreement.         “Required Sellers” means Sellers whose collective ownership of the Company Shares referred to  in Column D of Schedule I, when taken together with the Issued Shares, represent 51% or more of the  total  number  of  Company  Shares  outstanding  immediately  after the  Closing  (after giving  effect to the  Conversion Event and the Share Issuance).         “Response Notice” has the meaning assigned to such term in Section 9.6(b).         “ROFR Waiver” has the meaning assigned to such term in the Recitals to the Agreement.         “Secondary Allocation Gross-Up Factor” means the fraction having: (a) a numerator equal to the  sum  of  (i)  the  aggregate  number  of  Purchased  Shares (determined  on  an  as-converted-to-Company  Ordinary Shares  basis) plus (ii) the aggregate  number of Issued  Shares; and (b) having a  denominator  equal to the aggregate number of Purchased Shares (determined on an as-converted-to-Company Ordinary  Shares basis).                                        A-13  

 

      “Secondary  Share  Purchase”  has  the  meaning  assigned  to  such  term  in  the  Recitals  to  the  Agreement.         “Secondary Specified Fraction” means a fraction having: (a) a numerator equal to the aggregate  number of Purchased Shares (determined on an as-converted-to-Company Ordinary Shares basis); and (b)  a denominator equal to the sum of (i) the aggregate number of Purchased Shares (determined on an as- converted-to-Company Ordinary Shares basis), plus (ii) the aggregate number of Issued Shares.         “Seller Conduct Notice” has the meaning assigned to such term in paragraph 3.1 of Schedule 10.         “Seller Covenant Expiration Date” has the meaning assigned to such term in Section 9.1(f)(ii).         “Seller Cure Period” has the meaning assigned to such term in Section 8.1(f).         “Seller  Material  Adverse  Effect”  means  any  Effect  that  (considered  together  with  all  other  Effects) is, or could reasonably be expected to be or to become, materially adverse to the ability of any  Seller to perform any of its material covenants or obligations under the Agreement or under any other  Transaction Document.         “Sellers” has the meaning assigned to such term in the Preamble to the Agreement.         “Sellers’ Consideration Spreadsheet” has the meaning assigned to such term in Section 6.5(c).         “Sellers’  Representative”  has  the  meaning  assigned  to  such  term  in  the  Preamble  to  the  Agreement.         “Sellers’  Representative  Engagement  Agreement”  has  the  meaning  assigned  to  such  term  in  Section 10.1(f).         “Sellers’ Representative Expenses” has the meaning assigned to such term in Section 10.1(e).         “Sellers’ Representative Group” has the meaning assigned to such term in Section 10.1(e).         “Sellers’  Tax  Withholding  Spreadsheet”  has  the  meaning  assigned  to  such  term  in Section  6.5(c)(ii)(E).         “Series  A  Shares”  means,  collectively,  the  compulsorily  convertible  preference  shares  in  the  capital  of  the  Company  issued  pursuant  to  the  terms  of  Regulation  6A  of  the  Constitution  of  the  Company.          “Series B Shares” means, collectively, the preference shares in the capital of the Company issued  pursuant to the terms of Regulation 6B of the Constitution of the Company.          “Series C Shares” means, collectively, the preference shares in the capital of the Company issued  pursuant to the terms of Regulation 6C of the Constitution of the Company.          “Series D Shares” means, collectively, the preference shares in the capital of the Company issued  pursuant to the terms of Regulation 6D of the Constitution of the Company.          “Series Deeds” means, collectively, (a) the October 2011 Subscription Agreement (as such term  is defined in the Existing Shareholders’ Agreement), (b) the November 2011 Subscription Agreement (as  such term is defined in the Existing Shareholders’ Agreement), (c) the January 2012 Subscription Deed                                        A-14 

 

   (as such term is defined in the Existing Shareholders’ Agreement), (d) the March 2012 Subscription Deed  (as such term is defined in the Existing Shareholders’ Agreement), (e) the August 2012 Subscription Deed  (as such term is defined in the Existing Shareholders’ Agreement), (f) the June 2013 Subscription Deed  (as such term is defined in the Existing Shareholders’ Agreement), (g) the September 2013 Supplemental  Agreement  (as  such  term  is  defined  in  the  Existing  Shareholders’  Agreement),  (h)  the  October  2013  Supplemental Agreement (as such term is defined in the Existing Shareholders’ Agreement), (i) the April  2014 Subscription Deed (as such term is defined in the Existing Shareholders’ Agreement), (j) the June  2014 Investment Deed (as such term is defined in the Existing Shareholders’ Agreement), (k) the July  2014  Investment  Deed  (as  such  term is  defined  in  the  Existing  Shareholders’  Agreement),  (l)  the  December 3, 2014 Subscription Deed (as such term is defined in the Existing Shareholders’ Agreement),  (m) the Series G Supplemental Deed (as such term is defined in the Existing Shareholders’ Agreement),  (n) the Series H Subscription Deed (as such term is defined in the Existing Shareholders’ Agreement), (o)  the Series H Supplemental Deed (as such term is defined in the Existing Shareholders’ Agreement), (p)  the Series I Subscription Deed (as such term is defined in the Existing Shareholders’ Agreement), (q) the  Supplemental  Agreement,  dated  July  8,  2013,  by  and  between  Tiger  Global  International  II  Holdings,  Intervision  (Services)  Holdings  BV,  Accel  Growth  FII  (Mauritius)  LTD  and  the  Company  and  (r)  the  Investment  Deed,  dated  October  15,  2014,  by  and  among  the  Company,  Next  Generation  Payments  Private Limited and Mr. Sourabh Jain.          “Series E Shares” means, collectively, the preference shares in the capital of the Company issued  pursuant to the terms of Regulation 6E of the Constitution of the Company.          “Series F Shares” means, collectively, the preference shares in the capital of the Company issued  pursuant to the terms of Regulation 6F of the Constitution of the Company.          “Series G Shares” means, collectively, the preference shares in the capital of the Company issued  pursuant to the terms of Regulation 6G of the Constitution of the Company.          “Series H Shares” means, collectively, the preference shares in the capital of the Company issued  pursuant to the terms of Regulation 6H of the Constitution of the Company.          “Series I Shares” means, collectively, the preference shares in the capital of the Company issued  pursuant to the terms of Regulation 6I of the Constitution of the Company.          “Series I Warrants” has the meaning assigned to such term in the Constitution of the Company.         “Share Issuance” has the meaning assigned to such term in the Recitals to the Agreement.         “Share  Issuance  Agreement”  has  the  meaning  assigned  to  such  term  in  the  Recitals  to  the  Agreement.         “Side Letter” means that certain letter agreement dated as of September 20, 2017, among Aceville  Pte. Ltd.,  Microsoft Global Finance, eBay Singapore Services  Private  Limited, SVF Holdings  (Jersey)  L.P. and the Company.         “Singapore Stamp Duty” means stamp duty charged in accordance with the Stamp Duties Act,  Chapter 312, of Singapore.         “Small Shareholder” means any Seller that holds: (a) less than 5% of the voting power of each of  the Acquired Companies; (b) less than 5% of the share capital in each of the Acquired Companies; and (c)  less than 5% of the interests in each of the Acquired Companies.                                        A-15  

 

         “Specified  Exchange  Rate”  means,  for  the  purpose of  translating  an  amount  denominated  in a  currency  other  than  dollars  into  dollars,  the  average  daily  exchange  rate  between  such  currency  and  dollars for the five consecutive Business Days immediately preceding the Closing Date, as such exchange  rates are reported on the Financial Times website at FT.com.         “Specified Seller” means MIH B2C Holdings B.V.         “Specified  Tax  Proceeding”  means  any  Legal  Proceeding  identified  on  Part  2.14(c)  or  Part  2.19(a)-1  of  the  Company  Disclosure  Schedule  (including  any  appeal  with  respect  to  such  Legal  Proceeding): (a) that was commenced against an Acquired Company by a Taxing Authority and involves  the assertion by such Taxing Authority of a failure by such Acquired Company to comply with any Tax  Legal Requirement; and (b) for which a reserve has been established on the Most Recent Balance Sheet  (as such term is defined in the Share Issuance Agreement) in accordance with IFRS.         “Specified Warrant Cancelation Payment Amount” has the meaning assigned to such term in the  Share Issuance Agreement.         “Stipulated Amount” has the meaning assigned to such term in Section 9.6(e).         An  Entity  shall  be  deemed  to  be  a  “Subsidiary”  of  another  Person  if  such  Person  directly  or  indirectly owns or purports to own, beneficially or of record: (a) an amount of voting securities of or other  interests in such Entity that is sufficient to enable such Person to elect at least a majority of the members  of such Entity’s board of directors or other governing body; or (b) at least 50% of the outstanding equity,  voting, beneficial or ownership interests in such Entity.         “Tax” includes  all  forms  of  taxation  and  statutory,  governmental,  supra-governmental,  supranational, state, principal, local government or municipal impositions, duties, contributions, charges  and levies, whenever imposed, and all penalties, charges, surcharges, costs, expenses and interest relating  thereto,  including:  (a)  income,  gross  receipts,  net  proceeds,  profits,  corporation,  turnover,  excise,  real  property, personal property (tangible and intangible), stamp duty, sales, use, leasing, license, registration,  transfer,  franchise,  payroll,  social  security,  occupational,  premium,  employment,  unemployment,  severance,  disability,  transfer  pricing,  value  added,  escheat,  ad  valorem,  environmental,  capital  stock,  capital duty, estimated, gains, wealth, welfare, and any deductions or withholdings or other similar taxes  (including any duty, fee, assessment, impost or other charge in the nature of or in lieu of any tax); (b) all  penalties, charges, surcharges, costs, expenses and interest relating thereto; and (c) any liability for the  payment  of  amounts  described  in  clauses  “(a)”  and  “(b)”  above  as  a  result  of  any  Tax  sharing,  Tax  indemnity or Tax allocation agreement or any other express or implied agreement to pay or indemnify any  other Person whether by contract or otherwise, regardless of whether any such taxes, impositions, duties,  contributions, charges and levies are  chargeable  directly or primarily against or attributable  directly or  primarily  to  any  Acquired  Company  (including  taxes  imposed  on  the  Company  as  a  transferee  or  successor, or by reason of Contract, assumption, operation of Legal Requirement or otherwise) or any  other Person and regardless of whether any amount in respect of any of them is recoverable from any  other Person.         “Tax Deposit” has the meaning assigned to such term in paragraph 5.2 of Schedule 10.         “Tax Deposit Period” has the meaning assigned to such term in paragraph 5.2 of Schedule 10.         “Tax Return” means any return (including any information return), report, statement, declaration,  self-assessment, estimate, schedule, notice, notification, form, election, certificate or other document or  information filed with or submitted to, or required to be filed with or submitted to, any Governmental                                        A-16  

 

Entity  in  connection  with  the  determination,  assessment,  collection  or  payment  of  any  Tax  or  in  connection with the administration, implementation or enforcement of or compliance with any applicable  Legal Requirement relating to any Tax.         “Taxing  Authority”  means,  with  respect  to  any  Tax,  any  Governmental  Entity  or  political  subdivision thereof that is competent to impose, administer, levy or assess such Tax, and the agency (if  any) charged with the collection of such Tax for such Governmental Entity or subdivision, including any  governmental or quasi-Governmental Entity or agency that is competent to impose, administer, levy or  assess, or is charged with collecting, social security or similar charges or premiums.         “Threshold Amount” has the meaning assigned to such term in Section 9.3(a).         “Trade Secrets” means trade secrets (as defined by applicable law) and confidential information,  including  all  source  code,  documentation,  know  how,  processes,  technology,  formulae,  customer  lists,  business and marketing plans, inventions (whether or not patentable) and marketing information.         “Trademarks” means  trademarks,  service  marks,  trade  names,  trade  dress,  logos,  corporate  names, rights in business and get-up and other source or business identifiers (in each case whether or not  registered) and any registrations, applications, renewals and extensions of each of the foregoing and all  goodwill associated with each of the foregoing.         “Transaction Bonus” means any cash severance compensation, bonus, incentive or benefit paid or  payable by or on behalf of any Acquired Company to any Company Employee or any other Person in  connection  with  any  of  the  Contemplated  Transactions  (for  clarity,  excluding  any  “double-trigger”  obligations).          “Transaction  Bonus  Amount”  means  an  amount  denominated in  dollars  (determined  using  the  Specified Exchange Rate, as applicable) equal to the aggregate amount of all Transaction Bonuses paid or  payable.         “Transaction Documents” means, collectively, the Agreement, the Share Issuance Agreement, the  Sellers’ Consideration Spreadsheet and each other agreement, certificate or document referred to in the  Agreement or to be executed in connection with any of the Contemplated Transactions.         “Transaction-Related Confidential Information” means the terms of the Agreement and the other  Transaction Documents, and all information relating to the discussions and negotiations among any of the  Sellers, the Acquired Companies, Purchaser and their respective Representatives in connection with the  Contemplated Transactions.         “Transaction Tax” means: (a) any Tax (including minimum alternate tax, surcharge, cess) levied,  imposed, claimed or assessed under the IT Act, in respect of the Secondary Share Purchase (including any  Tax resulting from any change in any applicable Legal Requirement or any retrospective amendment to  any applicable Legal Requirement), which is levied upon or recoverable from any the Indemnitees and/or  any of the Acquired Companies as a payer and/or in its capacity as an agent or a representative assessee  (as defined in the IT Act) of any Seller or otherwise under the Agreement; and (b) any penalty or interest  imposed with respect to any amount described in clause “(a)” above.         “Transaction Tax Claim” means any enquiry, notice, demand, assessment, claim, discussion or  other written communication from any Taxing Authority related to any Transaction Tax that is or may be  levied  against  any  of  the  Indemnitees  or  any  of  the  Acquired  Companies  by  any  Taxing  Authority,  including all claims or demands for any deposit, interest, penalty, interim payment, advance payment or                                        A-17 

 

issuance of security or bank guarantee for payment of any such claim, regardless of whether such claim or  demand arises out of any Order, whether interim or final, and regardless of any further right of appeal  against such an Order, including any claim arising pursuant to any Transaction Tax Proceeding.         “Transaction Tax Indemnifying Notice” has the meaning assigned to such term in paragraph 2 of  Schedule 10.         “Transaction Tax Proceeding” means any notice, show cause notice, inquiry, writ, suit, recovery  proceeding, demand, claim, notice, representative assessee related proceeding, assessment proceeding, tax  deduction  at  source  related  proceeding,  re-assessment  proceeding,  interest  related  proceeding,  penalty  related proceeding, rectification, stay of demand  related  proceeding, appeal (at any level) or any other  similar  or  incidental  action  related  to  any  Transaction  Tax  arising  out  of  or  relating  to  the  Secondary  Share Purchase and/or payment for any Purchased Share.         “TRC Residual Period” has the meaning assigned to such term in Section 4.10.         “Uncapped Matters” has the meaning assigned to such term in Section 9.3(d)(i).         “Unresolved §9.2(a) Claim” means, at any time, any §9.2(a) Claim that has been asserted by any  Indemnitee  against  the  Sellers, but  which  has  not  been  fully  and  finally  resolved  as  of  such  time  in  accordance  with Section 9.6.   Any  such  claim  shall  be  deemed  for  all  purposes  of  the  Agreement  to  remain unresolved until all amounts owing to such Indemnitee with respect to such claim, as determined  pursuant to Section 9.6, are paid in full.          “Unresolved §9.2(a) Claim  Retained  Amount”  has  the  meaning  assigned  to  such  term  in  Section 9.6(h)(i).         “Unresolved §9.2(b) Claim” means, at any time, any §9.2(b) Claim that has been asserted by any  Indemnitee  against  any  Seller,  but  which  has  not  been  fully  and  finally  resolved  as  of  such  time  in  accordance  with Section 9.6.   Any  such  claim  shall  be  deemed  for  all  purposes  of  the  Agreement  to  remain unresolved until all amounts owing to such Indemnitee with respect to such claim, as determined  pursuant to Section 9.6, are paid in full.         “Unresolved §9.2(b) Claim  Retained  Amount”  has  the  meaning  assigned  to  such  term  in  Section 9.6(h)(i).         “Withholding Tax Indemnity” has the meaning assigned to such term in Schedule 10.         “Working Sheet E” means the Working Sheet E (For Transfer Shares) prescribed by the Inland  Revenue Authority of Singapore.                                        A-18

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