Document:

Exhibit 10.2

 

April 28, 2015

Harvey J. Berger, M.D.

ARIAD Pharmaceuticals, Inc.

26 Landsdowne Street

Cambridge, MA 02139-4234

Re:            Retirement Agreement

Dear Harvey:

This retirement letter agreement (this “Agreement”) is intended to amend the Amended and Restated Employment Agreement by and between you and ARIAD Pharmaceuticals, Inc. (the “Company”), dated as of April 30, 2010 (the “Employment Agreement”), in order to set forth our mutual understanding and agreement regarding your retirement as a member and as Chairman of the board of directors of the Company (the “Board”), your retirement as Chief Executive Officer and President of the Company and the transition of your responsibilities in connection with such retirement.

Any matters referred to in the Employment Agreement that are not expressly addressed in this Agreement shall continue to be governed by the terms of the Employment Agreement, which remains in full force and effect except as expressly modified hereby.  Any capitalized terms that are not otherwise defined herein shall have the meanings assigned thereto in the Employment Agreement.

Now, therefore, you and the Company agree as follows:

1.            Definitions.  For purposes of this Agreement, (a) “New CEO” shall mean the permanent (not interim) successor Chief Executive Officer of the Company who is appointed by the Board to succeed you, (b) “Retirement Date” shall mean the earlier of the date on which the New CEO commences employment as the Chief Executive Officer of the Company and December 31, 2015, (c) “Remaining Term” shall mean the period beginning on the date hereof and expiring on the Retirement Date, (d) “End Date” shall mean the date of the Company’s 2016 Annual Meeting of Stockholders and (e) “Advisory Period” shall mean the period beginning on the date following the Retirement Date and expiring on the End Date; provided that the Remaining Term and the Advisory Period shall expire on any earlier date on which your employment is terminated by the Company for any reason (including due to disability in accordance with Section 4.1(b) of the Employment Agreement (“Disability”)) or no reason, or by you for any reason or no reason or in the event of your death.

2.            Retirement; Transition of Duties.  (a) You shall remain employed by the Company as its Chief Executive Officer and President, reporting to and as reasonably directed by the Board, during the Remaining Term and shall devote such time as is necessary for the diligent and faithful performance of your duties (which duties shall be consistent with those as in effect immediately prior to the execution of this Agreement), and which may include, in the Board’s discretion, providing reasonable support and assistance to the Board in the search for, and the transfer of executive leadership to, the New CEO, and you shall continue to consult with the Board and any committees thereof regarding the performance of your duties in a manner consistent with past practice and as reasonably directed by the Board from time to time.  The Company shall provide you with 14 days’ advance notice of the Retirement Date.

(b)            Effective as of the expiration of the Remaining Term for any reason, you shall retire as a member and as Chairman of the Board (and, in addition, as a director or officer of any subsidiary of the Company) and shall retire from your positions as Chief Executive Officer and as President of the Company.  Such retirement shall be automatic and without any further action on your part, and you hereby agree to execute any additional documentation with respect thereto reasonably requested by the Company.  In the event the Remaining Term does not expire prior to the Retirement Date, effective as of the Retirement Date, you shall continue employment with the Company in the position of a special advisor to the Board and to the New CEO (“Special Advisor”) and, during the Advisory Period, you shall report to the Board and provide such services as are reasonably requested by the Board or by the New CEO from time to time; provided that, as Special Advisor, you shall not have the authority to bind the Company in any respect and no employee of the Company shall report to you.  As a Special Advisor you shall be an “at will” employee, subject to the terms of this Agreement.

(c)            Your retirement as the Company’s Chief Executive Officer and President on the Retirement Date is intended to constitute a “separation from service” for purposes of Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder (“Section 409A”).  In furtherance of the preceding sentence, you and the Company agree and anticipate that the level of services that you shall perform as Special Advisor shall not exceed the maximum level that is presumed to result in a “separation from service” in accordance with Treasury Regulation Section 1.409A-1(h)(1)(ii).

(d)            Effective as of the expiration of the Advisory Period for any reason, you shall retire from your position as Special Advisor and thereafter shall have no further employment relationship with the Company.

3.            Compensation During the Remaining Term.  (a) In consideration of the services provided hereunder by you during the Remaining Term, you shall be entitled to receive the following payments and benefits during the Remaining Term, in lieu of any other payments and benefits owed under the Employment Agreement with respect to such period:

(i)             your annual base salary shall be $773,500 (your “Annual Base Salary”), payable in accordance with the Company’s customary payroll procedures for senior executives, with retroactive effect to January 1, 2015, and any difference between the salary paid to you from January 1, 2015 to the date of this Agreement and the salary to which you would have been entitled for such period at the rate of the Annual Base Salary hereunder, will be paid to you within 14 days of the date of this Agreement;

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(ii)            you shall continue to participate in the Company’s health and welfare and other employee benefit plans in which you participate as of the date hereof (including those listed on Schedule A), and shall continue to receive the other benefits described in Sections 7(a), 7(b) and 7(c) of the Employment Agreement; provided that your car allowance shall be equal to $1,000 per month; and

(iii)           you shall remain eligible to participate in the Company’s 2015 annual bonus program, with a target bonus for 2015 equal to 85% of your Annual Base Salary (“Target Bonus”).  Your actual bonus shall be determined based on the level of your performance, in conjunction with the level of achievement of the Company’s 2015 corporate objectives (approved by the Board on March 10, 2015, as modified by the Board from time to time), as reflected in your executive performance score.  A score of 3.0 (“meets requirements”) will entitle you to 50% of the Target Bonus; a score of 3.5 will entitle you to 75% of the Target Bonus; a score of 4.0 (“exceeds requirements”) will entitle you to 100% of the Target Bonus; a score of 4.5 will entitle you to 150% of the Target Bonus; and a score of 5.0 (“outstanding”) will entitle you to 200% of the Target Bonus.  Your executive performance score for purposes of determining your actual bonus for 2015 shall be determined by the Board in good faith and in accordance with the Performance Evaluation Methodology (as defined below).  The Company shall provide you with notice of, and a reasonable opportunity to cure, any actions or omissions that would otherwise result in your failure to receive an executive performance score of at least 3.0.  Your actual bonus for 2015 shall be payable when bonuses for such year are paid to other executives of the Company.  Except as otherwise provided in Section 5(b), in the event the Retirement Date occurs prior to December 31, 2015, the amount of such payment shall be prorated based on the number of calendar days in 2015 elapsed prior to the Retirement Date.

(b)            On the date hereof, you shall be granted restricted stock units (“RSUs”) under the Company’s 2014 Long-Term Incentive Plan with respect to 345,000 shares of the Company’s common stock.  The RSUs shall be subject to the terms and conditions set forth in the Company’s customary award agreement (which shall be the same in all material respects as the award agreement used for the corresponding annual grants to other executive officers of the Company), except that such RSUs shall vest in full upon the Retirement Date, subject to (i) you remaining employed by the Company through such date and (ii) the Board certifying that you have satisfied your obligations under this Agreement (with such certification to be made not later than the Retirement Date); provided that (A) for such purposes, you shall be deemed to have satisfied your obligations under this Agreement if your performance in furtherance of such obligations is commensurate with an executive performance score of 3.0 out of 5.0 (“meets requirements”) with respect to the Company’s customary corporate performance objectives, as determined by the Board in good faith and in accordance with the Company’s past practice of evaluations of the performance of its Chief Executive Officer (the “Performance Evaluation Methodology”), and (B) the Company shall provide you with notice of, and a reasonable opportunity to cure, any actions or omissions that would otherwise result in your failure to receive such executive performance score.  For the avoidance of doubt, you expressly acknowledge and agree that you shall not be entitled to receive any long-term incentive compensation during the 2015 fiscal year or thereafter, other than as set forth in this Section 3(b) or as may be determined by the Compensation Committee of the Board (the “Compensation Committee”) in its sole discretion.

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(c)            In the event of a Change in Control (as defined in the Employment Agreement), your Company equity-based incentive compensation awards that are outstanding and unvested immediately prior to the Change in Control shall immediately vest and, as applicable, become exercisable and remain exercisable through their original terms with all rights, and the last two sentences of Section 3.4 of the Employment Agreement shall apply.

4.            Accrued Obligations Following the Expiration of the Remaining Term.  Following the expiration of the Remaining Term for any reason, the Company shall pay to you (a) a lump-sum cash payment equal to your earned but unpaid base salary and earned but unused paid time off through the date of such expiration, payable within 10 days following the date of such expiration, (b) any unreimbursed business expenses, payable in accordance with the Company’s expense reimbursement policy, (c) a lump-sum cash payment equal to $580,125, payable on January 4, 2016; provided that your employment has not been terminated prior to the date of such expiration by the Company for Cause or by you other than for Good Reason (in all cases where such term is used in this Agreement, as defined in the Employment Agreement and after providing written notice to the Company and an opportunity to cure as contemplated in the Employment Agreement); provided, further, that your acceptance of the payment contemplated by this Section 4(c) shall constitute your acknowledgement that the Company has satisfied its obligations to you under the Company’s previously existing Sabbatical Policy and (d) any other earned and vested amounts, entitlement or benefits, to the extent not otherwise described herein, in accordance with the terms of the applicable plans and arrangements of the Company.

5.            Severance Following the Retirement Date.  (a) Upon your retirement as a member and as Chairman of the Board and your retirement from your positions as Chief Executive Officer and President of the Company, effective as of the Retirement Date, in accordance with Section 2(b) above, subject to your satisfaction of the release requirement described in Section 6 below and in lieu of any other severance or separation payments or benefits under the Employment Agreement:

(i)             On January 4, 2016, the Company shall pay to you a lump-sum cash payment equal to $4,235,550, representing the product of three times the sum of (A) your Annual Base Salary plus (B) your 2014 annual bonus.

(ii)            Your Company equity-based incentive compensation awards that are outstanding and unvested as of the Retirement Date (excluding any RSUs described in Section 3(b) above, the vesting of which shall continue to be governed by Section 3(b)) shall immediately vest and, as applicable, become exercisable and remain exercisable through their original terms; provided that any outstanding performance shares that remain subject to any vesting condition other than your continued service with the Company (which for the avoidance of doubt shall not include administrative requirements such as the receipt of audited financial statements) (any such condition, a “Performance Condition”) shall vest based on the greater of target-level performance and the Achieved Performance Level (as defined below).  As soon as practicable following the Retirement Date, the Board or the Compensation Committee, as applicable, shall determine in accordance with the Company’s past practice whether and the extent to which each Performance Condition (as any such condition is defined in each applicable award) has been achieved as of the Retirement Date based on the Company’s and your performance as of the Retirement Date (any such performance level, the “Achieved Performance Level”); provided that, notwithstanding the foregoing, in the event the applicable Performance Condition is measured by reference to the Company’s complete fiscal year 2015 audited financials, vesting shall be based solely on the Achieved Performance Level as of December 31, 2015 (and not the greater of target-level performance and the Achieved Performance Level).

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(iii)           The Company shall continue to provide you with coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), at its expense for the maximum required COBRA period.  For purposes of this Section 5(a)(iv), the COBRA period shall begin upon the expiration of the Advisory Period, to the extent permitted by applicable law.

(b)            You shall not be entitled to any of the amounts or benefits described in this Section 5, or any other severance or separation payments or benefits under the Employment Agreement, if the Remaining Term expires on or prior to the Retirement Date as a result of the Company’s termination of your employment for Cause or your termination of your employment for any reason other than Good Reason.  For the avoidance of doubt, the events contemplated by this Agreement shall not constitute Good Reason for purposes of the Employment Agreement or have any similar effect under any other Company compensation or employee benefit arrangement.  In the event the Remaining Term expires as a result of the Company’s termination of your employment without Cause or your termination of your employment for Good Reason on or prior to the Retirement Date, then you shall be entitled to receive (i) the severance and separation payments and benefits described in Section 5(a) above, (ii) a full Target Bonus (without proration), payable when 2015 bonuses are paid to other executives of the Company, and (iii) the cash compensation you would otherwise have been paid during the Advisory Period (solely for purposes of this clause (iii), the Advisory Period shall be deemed to commence on the date of such termination of employment and expire on June 30, 2016), payable in a single lump sum on January 4, 2016, in each case, subject to your satisfaction of the release requirement described in Section 6 below and in lieu of any other severance or separation payments or benefits under the Employment Agreement; provided that (i) all references in Section 5(a) to the “Retirement Date” shall be deemed to refer to the date of such expiration of the Remaining Term and (ii) the RSUs described in Section 3(b) above that are outstanding and unvested as of the date of such expiration shall vest in full, without regard to Sections 3(b)(i) and 3(b)(ii).

6.            Release of Claims.  You and the Company shall execute and deliver to each other a mutual release of claims in the form attached hereto as Exhibit A (the “Release”), which Release shall be executed no earlier than the expiration of the Remaining Term for any reason and no later than the 20th day after such expiration.  In the event you do not execute and deliver to the Company the Release within such time period or you revoke the Release as described therein, then you shall not be entitled to any of the amounts provided in Section 5(a) and the last sentence of Section 5(b); provided, that if the Company does not timely execute and deliver the Release to you as contemplated by this Section 6, you shall be permitted to revoke your executed and delivered Release, and, notwithstanding anything to the contrary in this Agreement, you shall receive the amounts provided in Section 5(a) and the last sentence of Section 5(b), in each case, to the extent entitled thereto.

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7.            Compensation During the Advisory Period.  (a) In consideration of the services provided hereunder by you during the Advisory Period, you shall be entitled to receive the payments and benefits described in Sections 3(a)(i) and 3(a)(ii) above during the Advisory Period, as well as any incentive compensation as the Compensation Committee may determine in its sole discretion, in lieu of any other payments and benefits owed under the Employment Agreement with respect to such period.  You shall not be entitled to any of the amounts described in this Section 7 if the Advisory Period expires on or prior to the End Date as a result of the Company’s termination of your employment for Cause or your termination of your employment for any reason other than Good Reason.  If the Advisory Period expires as a result of the Company’s termination of your employment without Cause or your termination of your employment for Good Reason on or prior to the End Date, then you shall be entitled to receive the cash compensation that you would otherwise have been paid during the remainder of such period, in a single lump sum on the payroll date immediately following such expiration.

(b)            Following the expiration of the Advisory Period for any reason, the Company shall pay to you (a) a lump-sum cash payment equal to your earned but unpaid base salary and earned but unused paid time off through the date of such expiration, payable within 10 days following the date of such expiration, (b) any unreimbursed business expenses, payable in accordance with the Company’s expense reimbursement policy, and (c) any other earned and vested amounts, entitlement or benefits, to the extent not otherwise described herein, in accordance with the terms of the applicable plans and arrangements of the Company.

8.            Continuing Obligations.  (a) Generally. Notwithstanding anything to the contrary in this Agreement (other than Section 8(f)) or the Employment Agreement, Sections 8 (Confidentiality), 9 (Inventions), 10 (Non-Competition), 11 (Indemnification), 12 (Excise Tax) and 13 (No Mitigation) of the Employment Agreement shall continue to apply during the Remaining Term and the Advisory Period (and thereafter, to the extent provided therein or below).  Without limiting the foregoing:

(i)             You shall promptly return to the Company all materials, data, records and other property described in Section 8.6 of the Employment Agreement upon the expiration of the Remaining Term for any reason and upon the expiration of the Advisory Period for any reason, and you shall continue to be bound by the terms of Section 8 (Confidentiality) of the Employment Agreement during the three-year period immediately following the expiration of the Advisory Period (or, to the extent the Advisory Period does not commence, the expiration of the Remaining Term) for any reason; and

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(ii)            You shall continue to be bound by the provisions of Section 10 (Non-Competition) of the Employment Agreement during the Remaining Term, the Advisory Period and the one-year period immediately following the expiration of the Advisory Period (or, to the extent the Advisory Period does not commence, the expiration of the Remaining Term) for any reason, except as otherwise provided in Section 8(f).

(b)            Non-Disparagement.  During the period commencing on the date hereof and expiring on the six month anniversary of the expiration of the Advisory Period (or, to the extent the Advisory Period does not commence, the six month anniversary of the expiration of the Remaining Term) for any reason, (i) you shall not make any derogatory or attacking statement against the Company or its subsidiaries, or any of its or their respective directors, officers or employees; provided that you shall be permitted to make such statements against any such person if such person or such person’s affiliates (which includes persons and entities controlled by, controlling or under common control with such person) makes any statement that a reasonable person would interpret at the time such statement is made to be derogatory or attacking against you and (ii) the Company shall not, and shall cause its directors and officers not to, make any derogatory or attacking statement against you; provided that the Company shall be permitted, and shall be permitted to allow its directors and officers, to make such statements against you if you or any of your affiliates (which includes persons and entities controlled by, controlling or under common control with you) makes any statement that a reasonable person would interpret at the time such statement is made to be derogatory or attacking against the Company or its subsidiaries, or any of its or their respective directors, officers or employees; provided, however, that in the case of clauses (i) and (ii), nothing herein shall prevent you, the Company or its directors, officers or employees from making truthful statements in good faith in response to any governmental or regulatory inquiry or in any judicial, administrative or other governmental proceeding or investigation.

(c)            Non-Solicitation.  During the period commencing on the date hereof and expiring on the first anniversary of the expiration of the Advisory Period (or, to the extent the Advisory Period does not commence, the first anniversary of the expiration of the Remaining Term) for any reason (the “Restricted Period”), you shall not, directly or indirectly, (i) solicit, hire or employ, whether as an employee, consultant, advisor or otherwise, any person who as of any time during the twelve-month period preceding the expiration of such period is or was employed by, or providing services as an individual independent contractor working on (or substantially on) a full-time or exclusive basis to, the Company or its subsidiaries or affiliates, or (ii) urge, induce or seek to induce any such person to terminate his or her employment with the Company or its subsidiaries or affiliates; provided that you shall not be restricted from (A) responding to an unsolicited request for a general employment reference not specifically addressed to or for the benefit of an employer with which you are affiliated, regarding any former employee of the Company or its subsidiaries or affiliates, (B) making any general solicitation for employment by use of advertisements in the media that is not specifically directed at such persons or by use of a bona fide search firm in a manner that is not specifically directed at such persons or (C) hiring or engaging in employment discussions with any such person who has been terminated by the Company prior to such hiring or commencement of employment discussions, so long as you have not violated the restrictions in this Section 8(c) with respect to such person prior to such hiring or commencement of employment discussions; provided, further, that you will not be deemed to be in violation of this Section 8(c) if an entity or business with which you are associated solicits or hires any person if you (1) did not, directly or indirectly, encourage (and did not authorize) such entity or business to solicit or hire such person and (2) were not, directly or indirectly, involved in the identification of such person as a potential recruit or the solicitation or hiring of such person.

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(d)            Severability.  If any provision of this Agreement, or the application of any provision of this Agreement to any person or circumstance, is, for any reason and to any extent, held invalid or unenforceable, such invalidity and unenforceability shall not affect the remaining provisions of this Agreement of its application to other persons or circumstances, all of which shall be enforced to the greatest extent permitted by applicable law; and you and the Company agree that any invalid or unenforceable provision may and shall be reformed and applied to the extent needed to avoid that invalidity or unenforceability and in a manner that is as similar as possible to the intent of yourself and the Company (as described in this Agreement) and preserves the essential economic substance and effect of this Agreement.

(e)            Injunctive Relief.  You and the Company each acknowledge that any violation of the restrictions referenced or contained in this Agreement may give rise to losses or damages for which the Company or you, respectively, cannot be reasonably or adequately compensated in an action at law and that such violation may result in irreparable and continuing harm to the Company or you, respectively.  Accordingly, you and the Company each agree that, in addition to any other remedy that the Company or you, respectively, may have at law or in equity, the Company or you, respectively, shall be entitled to injunctive relief to restrain any violation by you or the Company, respectively, of the restrictions contained in this Agreement.

(f)             Expiration of Restrictions.  If the Company terminates your employment prior to the Retirement Date, other than for Cause or Disability, the provisions of Section 10 (Non-Competition) of the Employment Agreement, Section 8(a)(ii) and Section 8(c) (Non-Solicitation) shall immediately cease to apply.

9.            Arbitration; Legal Costs.  (a) Notwithstanding anything to the contrary in this Agreement or the Employment Agreement, Sections 16 (Arbitration) and 17 (Legal Costs) of the Employment Agreement shall continue to apply to you and the Company during the Remaining Term and the Advisory Period and thereafter; provided that any dispute arising under or in any way related to this Agreement and any legal action to enforce rights under, or to recover damages for breach of, this Agreement shall be treated as a dispute or legal action with respect to the Employment Agreement for purposes of such sections.

(b)            The Company shall pay your reasonable documented legal fees and expenses incurred in connection with (i) the matters contemplated hereby, including the negotiation and preparation of this Agreement, and (ii) the proxy dispute with the “Sarissa Group” and its “Affiliates” (as such terms are defined in that certain agreement, by and between the Company and the Sarissa Group, dated as of the date hereof (the “Settlement Agreement”)).  In the event any such payment becomes subject to any tax, the Company shall make a special payment to you sufficient, on an after-tax basis (taking into account federal, state and local taxes and related interest and penalties), to put you in the same position as would have been the case had such taxes not been applicable to such payments.

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10.         Publicity.  Except as otherwise required by applicable law, all press releases, employee communications and public announcements or filings (under the securities laws or otherwise) relating to (a) this Agreement or the Release, (b) your retirement as a member and as Chairman of the Board and your retirement as Chief Executive Officer and President of the Company and (c) any resolution of the proxy dispute with the “Sarissa Group” and its “Affiliates” (as such terms are defined in the Settlement Agreement), in each case, shall be subject to your prior approval, not to be unreasonably withheld or delayed; provided that you hereby approve the Company’s use and release of the press releases attached hereto as Exhibit B and Exhibit C.  In no event shall the Company issue any press release or make any employee communications or public announcements or filings relating to the foregoing until 7:30 a.m. Eastern Standard Time on April 29, 2015.

11.         General Provisions.  (a) Your Representation.  You hereby represent and warrant that you are an experienced senior executive knowledgeable about the matters (and their effect) within the purview of this Agreement and are not under any contractual or legal restraint that prevents or prohibits you from entering into this Agreement or performing the duties and obligations described in this Agreement.

(b)            Modification or Waiver; Entire Agreement.  No provision of this Agreement may be modified or waived except in a document signed by you and a person authorized by the Board.  Failure to insist upon strict compliance with any term of this Agreement shall not be considered a waiver of any such term or any other term of this Agreement.  This Agreement and the Employment Agreement and the Indemnity Agreement between you and the Company contain the entire agreement of you and the Company with respect to the subject matter hereof, and except as otherwise set forth herein, this Agreement supersedes all prior agreements, promises, covenants, arrangements, communications, representations and warranties between you and the Company, whether written or oral, with respect to the subject matter hereof.

(c)            Governing Law.  The validity, construction and interpretation of this Agreement and the rights and duties of you and the Company hereunder shall be governed by the laws of the Commonwealth of Massachusetts without reference to the Commonwealth of Massachusetts choice of law rules.

(d)            Survival.  You and the Company agree that the covenants and promises set forth in this Agreement shall survive the termination of this Agreement and continue in full force and effect after this Agreement terminates to the extent that their performance is required to occur after this Agreement terminates.

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(e)            Notices.  All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

If to you:

To the most recent address on file with the Company

with a copy to:

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, New York 10019

Facsimile No.: (212) 492-0237

Attention:  Lawrence I. Witdorchic, Esq.

If to the Company:

ARIAD Pharmaceuticals, Inc.

26 Landsdowne Street

Cambridge, MA 02139-4234

Attention:  General Counsel

with a copy to:

Cravath, Swaine & Moore LLP

825 Eighth Avenue

New York, New York 10019

Facsimile No.: (212) 474-3700

Attention:  Eric W. Hilfers, Esq.

or to such other address as either party shall have furnished to the other in writing in accordance herewith.  Notice and communications shall be effective when actually received by the addressee.

(f)            Miscellaneous.  (i) You may not assign any right or interest to, or in, any payments payable under this Agreement until they have become due from the Company; provided, however, that this prohibition does not preclude you from designating in writing one or more beneficiaries to receive any amount that may be payable after your death and does not preclude the legal representative of your estate from assigning any right under this Agreement to the person or persons entitled to it.

(ii)            This Agreement shall be binding upon and shall inure to your benefit, the benefit of your personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees, legatees and assigns and the Company and its successors.

(iii)           The headings in this Agreement are inserted for convenience of reference only and shall not be a part of or control or affect the meaning of any provision of this Agreement.

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(iv)           It is intended that the provisions of this Agreement be exempt from or comply with Section 409A, and all provisions of this Agreement shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A.  Neither you nor any of your creditors or beneficiaries shall have the right to subject any deferred compensation (within the meaning of Section 409A) payable under this Agreement to any anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment.  Except as permitted under Section 409A, any deferred compensation (within the meaning of Section 409A) payable to you or for your benefit under this Agreement may not be reduced by, or offset against, any amount owing by you to the Company.  If, at the time of your separation from service (within the meaning of Section 409A), you are a “specified employee” (within the meaning of Section 409A and using the identification methodology selected by the Company from time to time), then you and the Company shall cooperate to make a good faith determination as to whether any amount payable under this Agreement constitutes deferred compensation (within the meaning of Section 409A) the payment of which is required to be delayed pursuant to the six-month delay rule set forth in Section 409A in order to avoid taxes or penalties under Section 409A, and in such event the Company shall not pay any such amount on the otherwise scheduled payment date, but shall instead accumulate such amount and pay it, without interest, on the first business day after such six-month period.  For purposes of Section 409A, each payment hereunder shall be deemed to be a separate payment as permitted under Treasury Regulation Section 1.409A-2(b)(2)(iii).  Except as specifically permitted by Section 409A, the benefits and reimbursements provided to you under this Agreement during any calendar year shall not affect the benefits and reimbursements to be provided to you under the relevant section of this Agreement in any other calendar year, and the right to such benefits and reimbursements cannot be liquidated or exchanged for any other benefit.  Further, reimbursement payments shall be made to you as soon as practicable following the date that the applicable expense is incurred, but in no event later than the last day of the calendar year following the calendar year in which the underlying expense is incurred.  Any payment required under Section 9(b) shall be paid no later than the end of your taxable year next following your taxable year in which you pay the tax to which the payment relates to the United States Internal Revenue Service or other applicable taxing authority.

(v)            All payments made to you or on your behalf under this Agreement shall be reduced by any amount that the Company is required by applicable law to withhold in advance payment of your federal, state and local income, wage and employment tax liability.

(vi)           This Agreement is not intended to, and shall be interpreted in a manner that does not, limit or restrict you from exercising any legally protected whistleblower rights (including pursuant to Rule 21F under the Securities Exchange Act of 1934).

(g)            Successors to Company.  This Agreement may not be assigned or transferred by the Company, except that this Agreement may and shall be assigned or transferred to, and shall be binding upon and shall inure to the benefit of, any successor of the Company, and any successor shall be substituted for the Company under the terms of this Agreement.  As used in this Agreement, the term “successor” means any person, firm, corporation or business entity which at any time, whether by merger, purchase or otherwise, acquires all or substantially all of the assets of the business of the Company.  Notwithstanding any assignment, the Company shall remain, with any successor, jointly and severally liable for all its obligations under this Agreement.

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(h)            Execution in Counterparts.  This Agreement may be executed in counterparts (including by facsimile or by PDF), and by the parties hereto in separate counterparts, each of which shall be deemed to be an original, and all of which taken together shall constitute one and the same agreement (and all signatures need not appear on any one counterpart), and this Agreement shall become effective when one or more counterparts has been signed and delivered by each of the parties hereto.

[Remainder of page intentionally left blank.]

If the foregoing accurately reflects our agreement, please sign and return to us the enclosed duplicate copy of this letter.

	 	
ARIAD Pharmaceuticals, Inc.

/s/ Thomas DesRosier

	 
	 	Name:	Thomas DesRosier	
	 	Title: 	Executive Vice President, Chief Legal and Administrative Officer	
	 			
	 			
	 	
Date:

	April 28, 2015	
	 	 	 

	
Accepted and Agreed to:

 

 

	 
	 /s/ Harvey J. Berger	 
	
Harvey J. Berger, M.D.

	 

	
Date:

	 April 28, 2015	 

Schedule A

 

Current Benefits Covered

Health, medical and dental plans

Group Term Life Insurance/ Accidental Death and Dismemberment

401(k) Plan

Employee Stock Purchase Plan

Short-Term and Long-Term Disability coverages

Executive Disability Plan coverages (Unum (2) and MetLife policies)

Long-Term Care coverages (MetLife policies (2))

Exhibit A

Mutual Release of Claims

WHEREAS, Harvey J. Berger, M.D. (the “Executive”), retired from his positions as Chief Executive Officer and President of ARIAD Pharmaceuticals, Inc. (the “Company”) as of [                ] (the “Retirement Date”); and

WHEREAS, the Executive and the Company have entered into that certain letter agreement, dated as of April 28, 2015 (the “Retirement Agreement”).

NOW, THEREFORE, for good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, and intending to be legally bound, the Executive and the Company agree as follows:

1.            This mutual release of claims (this “Release”) is effective as of the date hereof and shall continue in effect as provided herein.

2.            (a) In consideration of the mutual covenants and agreements contained in the Retirement Agreement, the Executive, for himself and his dependents, successors, assigns, heirs, executors and administrators (and his and their legal representatives of every kind) (the “Executive Parties”), hereby releases, dismisses, remises and forever discharges the Company and its respective predecessors, parents, subsidiaries, divisions, related or affiliated companies, officers, directors, stockholders, members, employees, heirs, successors, assigns, representatives, agents and counsel (collectively, the “Company Parties”) from any and all arbitrations, claims, including claims for attorney’s fees, demands, damages, suits, proceedings, actions and/or causes of action of any kind and every description, whether known or unknown (“claims”), which the Executive now has or may have had for, upon, or by reason of any cause whatsoever through the date this Release is signed by the Executive, against the Company Parties, including but not limited to:

(i)            any and all claims arising out of or relating to the Executive’s employment by or service with the Company and its subsidiaries and affiliates and the termination thereof;

(ii)           any and all claims of discrimination, including but not limited to claims of discrimination on the basis of sex, race, age, national origin, marital status, religion or handicap, including, specifically, but without limiting the generality of the foregoing, any claims under the Age Discrimination in Employment Act, as amended, Title VII of the Civil Rights Act of 1964, as amended, the Americans with Disabilities Act or any other applicable federal, state or local law provisions, whether domestic or foreign; and

(iii)         any and all claims of wrongful or unjust discharge or breach of any contract or promise, express or implied.

(b)           The Executive understands and acknowledges that the Company and its subsidiaries and affiliates do not admit any violation of law, liability or invasion of any of his rights and that any such violation, liability or invasion is expressly denied.  The consideration provided for this Release is made for the purpose of settling and extinguishing all claims and rights (and every other similar or dissimilar matter) that the Executive ever had or now may have against the Company and the Company Parties to the extent provided in this Release.  The Executive further agrees and acknowledges that no representations, promises or inducements have been made by the Company or the Company Parties other than as appear in the Retirement Agreement.

(c)           The Executive further agrees and acknowledges that:

(i)            The release provided for herein releases claims to and including the date of this Release;

(ii)           The Executive has been advised by the Company to consult with legal counsel prior to executing this Release, has had an opportunity to consult with and to be advised by legal counsel of his choice, fully understands the terms of this Release, and enters into this Release freely, voluntarily and intending to be bound;

(iii)          The Executive has been given a period of 21 days to review and consider the terms of this Release prior to its execution and that he may use as much of the 21-day period as he desires; and

(iv)          The Executive may, within seven days after execution, revoke this Release.  Revocation shall be made by delivering a written notice of revocation to the Company.  For such revocation to be effective, such written notice must be actually received by the Company no later than the close of business on the seventh day after the Executive executes this Release.  If the Executive exercises his right to revoke this Release, all of the terms and conditions of this Release shall be of no force and effect (including, for the avoidance of doubt, the release of claims by the Company described in Section 3 of this Release).

(d)           The Executive agrees that he shall never file a lawsuit or other complaint asserting any claim that he releases in this Release or the validity or enforceability of this Release.

(e)           The Executive does not by this Release relinquish (i) any right to any vested benefits under any benefit plans or arrangements maintained by the Company or its subsidiaries or affiliates, (ii) any right to indemnification under the Employment Agreement (as defined in the Retirement Agreement), any applicable directors and officers liability insurance policy, applicable state and federal law, and the Company’s certificate of incorporation and bylaws, or otherwise pursuant to the Indemnity Agreement between the Executive and the Company, (iii) any right that is not waivable under applicable law, (iv) any right with respect to any event, act or omission taking place after the date this Release is signed by the Executive, (v) any rights under (including to enforce) the Retirement Agreement (including provisions of the Employment Agreement as contemplated to have continued effect under the Retirement Agreement), (vi) any rights in the Executive’s capacity as a securityholder of the Company or (vi) any right the Executive may have to obtain contribution as permitted by applicable law in the event of any judgment against the Executive as a result of any act or failure to act for which the Company or its affiliates and the Executive are jointly liable.

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(f)            The Executive waives and releases any claim that he has or may have to reemployment after the End Date (as defined in the Retirement Agreement).

3.            (a) In consideration of the mutual covenants and agreements contained in the Retirement Agreement, the Company on its own behalf and on behalf of the Company Parties and anyone else claiming through them, hereby releases, dismisses, remises and forever discharges the Executive and the Executive Parties from any and all claims against the Executive and the Executive Parties through the date this Release is signed by the Company, including but not limited to any and all claims arising out of or relating to the Executive’s employment by or service with the Company and its subsidiaries and affiliates and the termination thereof.

(b)           The Company understands and acknowledges that the Executive does not admit any violation of law, liability or invasion of any of its rights and that any such violation, liability or invasion is expressly denied.  The consideration provided for this Release is made for the purpose of settling and extinguishing all claims and rights (and every other similar or dissimilar matter) that the Company ever had or now may have against the Executive and the Executive Parties to the extent provided in this Release.  The Company further agrees and acknowledges that no representations, promises or inducements have been made by the Executive or the Executive Parties other than as appear in the Retirement Agreement.

(c)           The Company further agrees and acknowledges that:

(i)            The release provided for herein releases claims to and including the date of this Release.

(ii)           The Company agrees that it shall never file a lawsuit or other complaint asserting any claim that it releases in this Release or the validity or enforceability of this Release.

(d)           The Company does not by this Release relinquish (i) any claims the Company may have against the Executive for illegal conduct, (ii) any right that is not waivable under applicable law (iii) any right with respect to any event, act or omission taking place after the date this Release is signed by the Company, (iv) any rights under (including to enforce) the Retirement Agreement (including provisions of the Employment Agreement as contemplated to have continued effect under the Retirement Agreement) or (v) any right the Company may have to obtain contribution as permitted by applicable law in the event of any judgment against the Company or its affiliates as a result of any act or failure to act for which the Executive and the Company or its affiliates are jointly liable.

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4.            This Release is not intended to, and shall be interpreted in a manner that does not, limit or restrict the Executive from exercising any legally protected whistleblower rights (including pursuant to Rule 21F under the Securities Exchange Act of 1934).  The Company and the Executive each agree that they shall remain obligated to the other party under the Retirement Agreement from and after the date of this Release.  The Executive agrees to hold harmless the Company from and against any and all costs or losses whatsoever, including reasonable attorney’s fees, caused by the Executive’s breach of any obligation contained herein or if any representation herein was false when made.  The Company agrees to hold harmless the Executive from and against any and all costs or losses whatsoever, including reasonable attorney’s fees, caused by the Company’s breach of any obligation contained herein or if any representation herein was false when made.  The provisions of this Release are severable and if any part of it is found to be unenforceable, the other paragraphs shall remain full, valid and enforceable.

[Remainder of page intentionally left blank.]

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IN WITNESS WHEREOF, the Executive and the Company have executed and delivered this Release on the dates set forth below.

 

	 	ARIAD Pharmaceuticals, Inc.	 
	 	 	 	 
	
 

	
By: 

		 
	 	 	Name:	 
	 	 	Title:	 
	 	 	Date:	 
	 			
	 			
	 			

 

	
 

	
 

	
 

	
 

	
Harvey J. Berger, M.D.

	
 

	
 

	
 

	
 

	 	
Date:

	

 

 

 

Exhibit B

 

FORM OF RETIREMENT PRESS RELEASE

 

ARIAD FOUNDER, HARVEY J. BERGER, M.D., TO RETIRE AS

CHAIRMAN AND CHIEF EXECUTIVE OFFICER

CAMBRIDGE, MA — April 29, 2015 – ARIAD Pharmaceuticals, Inc. (NASDAQ: ARIA) today announced that its founder, Harvey J. Berger, M.D., has informed the Board of his decision to retire as chairman and chief executive officer (CEO) upon the appointment of his successor or December 31, 2015, whichever is earlier.  The Board has begun a comprehensive search to identify Dr. Berger’s successor.  Dr. Berger has also agreed to serve as a special advisor to the Board and the new CEO upon his retirement to facilitate a smooth transition.

Dr. Berger commented on his tenure as ARIAD’s CEO:

		●	“I am proud to have worked with so many incredibly talented employees and together to have achieved so much for cancer patients in need of new treatment options where none exist,” said Harvey J. Berger, M.D., chairman and chief executive officer of ARIAD.  “With an established path to profitability and a well-defined set of critical corporate initiatives, ARIAD has a remarkable future.  I had always anticipated retiring around age 65, which I will reach at the time of our upcoming annual meeting.  My colleagues and I are all driven by our passion for helping cancer patients, and I hope ARIAD will always be recognized for this dedication.”  Dr. Berger added, “ARIAD has been at the forefront of precision medicine initiatives in cancer, and I expect that the Company will continue to lead the way as new targeted therapies emerge from our drug-discovery platform – built on our computational and structural technologies.”

Dr. Berger founded ARIAD 23 years ago and has served as its chairman and chief executive officer since 1991. He has led the Company’s growth into an integrated global-oncology company serving patients worldwide.  Under his leadership, ARIAD scientists have discovered five new drug candidates.  ARIAD brought Iclusig® (ponatinib) – a novel BCR-ABL tyrosine kinase inhibitor (TKI) – to the market for use in the treatment of patients with refractory chronic myeloid leukemia and Philadelphia chromosome-positive acute lymphoblastic leukemia, now approved in the US, EU, Switzerland, Australia, Canada, and Israel.  Since its approval, Iclusig has been launched through ARIAD’s commercial organization in the US and the 16 major markets of the EU and through its distributors in other regions.  Dr. Berger has also overseen the broadened clinical development of Iclusig and the implementation of a 3-year strategic plan to achieve sustained profitability for ARIAD.

Brigatinib – a new ALK TKI with Breakthrough Designation from the FDA – is ARIAD’s next cancer medicine in development.  It is being studied in the ALTA pivotal trial of patients with refractory ALK+ non-small cell lung cancer (NSCLC), which is on track to complete patient enrollment in the third quarter of this year, leading to anticipated NDA filing next year.  Recently, ARIAD announced the discovery of AP32788 – its third internally discovered novel TKI – for use in the treatment of patients with NSCLC and a validated class of novel mutated targets; the Company plans to file an IND for AP32788 later this year.

 

 

 

Some of Dr. Berger’s colleagues, directors and leadership-team members offered the following comments:

		●	“For nearly 25 years, Harvey has put his heart and soul into building a world-class biotechnology company,” said Wayne Wilson, lead independent director of the ARIAD Board.  “We all appreciate his dedication to cancer patients and his focus on building sustainable value for our Company.  He has attracted and led outstanding employees – from bench scientists to physicians to account managers in the field.  He has never wavered in his commitment to being the best in every task that the Company undertook.”  Mr. Wilson added, “The Board will conduct a thorough search to identify a successor who we expect will guide ARIAD into its next chapters of innovation and growth, building on the solid foundation put in place by Harvey and his leadership team.”

		●	“My lasting memory of my first meeting with Harvey 25 years ago, when ARIAD was just a twinkle in his eye, is one that helps explain the direction of ARIAD over this period.  Harvey was passionate about building a company where patients come first.  He saw the promise of modern science to translate to life-saving medicines.  And Harvey has delivered on this vision through his dedication and leadership,” said Stuart L. Schreiber, Ph.D., Founding Member of the Broad Institute of Harvard and MIT, HHMI Investigator, and Morris Loeb Professor of Chemistry and Chemical Biology, Harvard University.

		●	“As CEO of ARIAD, Harvey has been a committed supporter of The Max Foundation.  Through the years, he has been open to listening to the patient’s perspective as well as to discussing solutions to help people facing cancer around the world,” said Pat Garcia-Gonzalez, President and Chief Executive Officer of The Max Foundation, a global health non-profit organization that believes that all people living with cancer have the right to access the best treatment and support.  “He has especially demonstrated an awareness of the needs of people living with chronic myeloid leukemia and an understanding of the importance of developing global access strategies for innovative oncology drugs.  I thank him for his service and look forward to continuing our collaborations with ARIAD.”

		●	“Harvey founded and built ARIAD with the clear vision of applying scientific excellence and clinical scholarship to helping patients in need – a vision that has been unequivocally fulfilled,” stated Timothy P. Clackson, president of R&D and chief scientific officer of ARIAD.  “Our employees and thousands of patients worldwide owe a great debt of gratitude to his exceptional dedication and perseverance.  The ARIAD leadership team is committed to continuing this work and driving to further success.”

		●	“As ARIAD’s founder, Harvey has guided the Company to a mission intensely focused on helping cancer patients, by discovering and developing new treatments to allow them to overcome their diseases.  His passion as a physician has infused its existence.  The many patients and families who have been helped by ARIAD’s medicines can be thankful for his dedication and insights,” said Frank G. Haluska, M.D., Ph.D., senior vice president, clinical R&D and chief medical officer.

		●	“Harvey enthusiastically embraced the evolution of ARIAD into a global commercial company,” said Marty J. Duvall, executive vice president and chief commercial officer of ARIAD.  “His pride, satisfaction and commitment to deliver on the vision of transforming patient-lives motivates the commercial team each and every day.”

 

 

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About ARIAD

 

ARIAD Pharmaceuticals, Inc., headquartered in Cambridge, Massachusetts and Lausanne, Switzerland, is an integrated global oncology company focused on transforming the lives of cancer patients with breakthrough medicines. ARIAD is working on new medicines to advance the treatment of various forms of chronic and acute leukemia, lung cancer and other difficult-to-treat cancers. ARIAD utilizes computational and structural approaches to design small-molecule drugs that overcome resistance to existing cancer medicines. For additional information, visit http://www.ariad.com or follow ARIAD on Twitter (@ARIADPharm).

About Iclusig® (ponatinib) tablets

Iclusig is a kinase inhibitor. The primary target for Iclusig is BCR-ABL, an abnormal tyrosine kinase that is expressed in chronic myeloid leukemia (CML) and Philadelphia-chromosome positive acute lymphoblastic leukemia (Ph+ ALL). Iclusig was designed using ARIAD’s computational and structure-based drug-design platform specifically to inhibit the activity of BCR-ABL. Iclusig targets not only native BCR-ABL but also its isoforms that carry mutations that confer resistance to treatment, including the T315I mutation, which has been associated with resistance to other approved TKIs.

Iclusig is approved in the U.S., EU, Australia, Switzerland, Canada, and Israel.

In the U.S., Iclusig is a kinase inhibitor indicated for the:

	●	Treatment of adult patients with T315I-positive chronic myeloid leukemia (chronic phase, accelerated phase, or blast phase) or T315I-positive Philadelphia chromosome positive acute lymphoblastic leukemia (Ph+ ALL).

	●	Treatment of adult patients with chronic phase, accelerated phase, or blast phase chronic myeloid leukemia or Ph+ ALL for whom no other tyrosine kinase inhibitor (TKI) therapy is indicated.

IMPORTANT SAFETY INFORMATION, INCLUDING THE BOXED WARNING

 

WARNING: VASCULAR OCCLUSION, HEART FAILURE, and HEPATOTOXICITY

 

See full prescribing information for complete boxed warning

 

●    Vascular Occlusion: Arterial and venous thrombosis and occlusions have occurred in at least 27% of Iclusig treated patients, including fatal myocardial infarction, stroke, stenosis of large arterial vessels of the brain, severe peripheral vascular disease, and the need for urgent revascularization procedures. Patients with and without cardiovascular risk factors, including patients less than 50 years old, experienced these events. Monitor for evidence of thromboembolism and vascular occlusion. Interrupt or stop Iclusig immediately for vascular occlusion. A benefit risk consideration should guide a decision to restart Iclusig therapy.

 

●    Heart Failure, including fatalities, occurred in 8% of Iclusig-treated patients. Monitor cardiac function. Interrupt or stop Iclusig for new or worsening heart failure.

 

●    Hepatotoxicity, liver failure and death have occurred in Iclusig-treated patients. Monitor hepatic function. Interrupt Iclusig if hepatotoxicity is suspected.

 

Vascular Occlusion: Arterial and venous thrombosis and occlusions, including fatal myocardial infarction, stroke, stenosis of large arterial vessels of the brain, severe peripheral vascular disease, and the need for urgent revascularization procedures have occurred in at least 27% of Iclusig-treated patients from the phase 1 and phase 2 trials. Iclusig can also cause recurrent or multi-site vascular occlusion. Overall, 20% of Iclusig-treated patients experienced an arterial occlusion and thrombosis event of any grade. Fatal and life-threatening vascular occlusion has occurred within 2 weeks of starting Iclusig treatment and in patients treated with average daily dose intensities as low as 15 mg per day. The median time to onset of the first vascular occlusion event was 5 months. Patients with and without cardiovascular risk factors have experienced vascular occlusion although these events were more frequent with increasing age and in patients with prior history of ischemia, hypertension, diabetes, or hyperlipidemia. Interrupt or stop Iclusig immediately in patients who develop vascular occlusion events.

 

 

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Heart Failure: Fatal and serious heart failure or left ventricular dysfunction occurred in 5% of Iclusig-treated patients (22/449). Eight percent of patients (35/449) experienced any grade of heart failure or left ventricular dysfunction. Monitor patients for signs or symptoms consistent with heart failure and treat as clinically indicated, including interruption of Iclusig. Consider discontinuation of Iclusig in patients who develop serious heart failure.

 

Hepatotoxicity: Iclusig can cause hepatotoxicity, including liver failure and death. Fulminant hepatic failure leading to death occurred in an Iclusig-treated patient within one week of starting Iclusig. Two additional fatal cases of acute liver failure also occurred. The fatal cases occurred in patients with blast phase CML (BP-CML) or Philadelphia chromosome positive acute lymphoblastic leukemia (Ph+ ALL). Severe hepatotoxicity occurred in all disease cohorts. Iclusig treatment may result in elevation in ALT, AST, or both. Monitor liver function tests at baseline, then at least monthly or as clinically indicated. Interrupt, reduce or discontinue Iclusig as clinically indicated.

 

Hypertension: Treatment-emergent hypertension (defined as systolic BP≥140 mm Hg or diastolic BP≥90 mm Hg on at least one occasion) occurred in 67% of patients (300/449). Eight patients treated with Iclusig (2%) experienced treatment-emergent symptomatic hypertension as a serious adverse reaction, including one patient (<1%) with hypertensive crisis. Patients may require urgent clinical intervention for hypertension associated with confusion, headache, chest pain, or shortness of breath. In 131 patients with Stage 1 hypertension at baseline, 61% (80/131) developed Stage 2 hypertension. Monitor and manage blood pressure elevations during Iclusig use and treat hypertension to normalize blood pressure.   Interrupt, dose reduce, or stop Iclusig if hypertension is not medically controlled.

 

Pancreatitis: Clinical pancreatitis occurred in 6% (28/449) of patients (5% Grade 3) treated with Iclusig. Pancreatitis resulted in discontinuation or treatment interruption in 6% of patients (25/449). The incidence of treatment-emergent lipase elevation was 41%. Check serum lipase every 2 weeks for the first 2 months and then monthly thereafter or as clinically indicated. Consider additional serum lipase monitoring in patients with a history of pancreatitis or alcohol abuse. Dose interruption or reduction may be required. In cases where lipase elevations are accompanied by abdominal symptoms, interrupt treatment with Iclusig and evaluate patients for pancreatitis. Do not consider restarting Iclusig until patients have complete resolution of symptoms and lipase levels are less than 1.5 x ULN.

 

Neuropathy: Peripheral and cranial neuropathy have occurred in Iclusig-treated patients. Overall, 13% (59/449) of Iclusig-treated patients experienced a peripheral neuropathy event of any grade (2%, grade 3/4). In clinical trials, the most common peripheral neuropathies reported were peripheral neuropathy (4%, 18/449), paresthesia (4%, 17/449), hypoesthesia (2%, 11/449), and hyperesthesia (1%, 5/449). Cranial neuropathy developed in 1% (6/449) of Iclusig-treated patients (<1% grade 3/4). Of the patients who developed neuropathy, 31% (20/65) developed neuropathy during the first month of treatment. Monitor patients for symptoms of neuropathy, such as hypoesthesia, hyperesthesia, paresthesia, discomfort, a burning sensation, neuropathic pain or weakness. Consider interrupting Iclusig and evaluate if neuropathy is suspected.

 

 

 

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Ocular Toxicity: Serious ocular toxicities leading to blindness or blurred vision have occurred in Iclusig-treated patients. Retinal toxicities including macular edema, retinal vein occlusion, and retinal hemorrhage occurred in 3% of Iclusig-treated patients. Conjunctival or corneal irritation, dry eye, or eye pain occurred in 13% of patients. Visual blurring occurred in 6% of the patients. Other ocular toxicities include cataracts, glaucoma, iritis, iridocyclitis, and ulcerative keratitis. Conduct comprehensive eye exams at baseline and periodically during treatment.

 

Hemorrhage: Serious bleeding events, including fatalities, occurred in 5% (22/449) of patients treated with Iclusig. Hemorrhagic events occurred in 24% of patients. The incidence of serious bleeding events was higher in patients with accelerated phase CML (AP-CML), BP-CML, and Ph+ ALL. Most hemorrhagic events, but not all occurred in patients with grade 4 thrombocytopenia. Interrupt Iclusig for serious or severe hemorrhage and evaluate.

 

Fluid Retention: Serious fluid retention events occurred in 3% (13/449) of patients treated with Iclusig. One instance of brain edema was fatal. In total, fluid retention occurred in 23% of the patients. The most common fluid retention events were peripheral edema (16%), pleural effusion (7%), and pericardial effusion (3%). Monitor patients for fluid retention and manage patients as clinically indicated. Interrupt, reduce, or discontinue Iclusig as clinically indicated.

 

Cardiac Arrhythmias: Symptomatic bradyarrhythmias that led to a requirement for pacemaker implantation occurred in 1% (3/449) of Iclusig-treated patients. Advise patients to report signs and symptoms suggestive of slow heart rate (fainting, dizziness, or chest pain). Supraventricular tachyarrhythmias occurred in 5% (25/449) of Iclusig-treated patients. Atrial fibrillation was the most common supraventricular tachyarrhythmia and occurred in 20 patients. For 13 patients, the event led to hospitalization. Advise patients to report signs and symptoms of rapid heart rate (palpitations, dizziness). Interrupt Iclusig and evaluate.

 

Myelosuppression: Severe (grade 3 or 4) myelosuppression occurred in 48% (215/449) of patients treated with Iclusig. The incidence of these events was greater in patients with AP-CML, BP-CML and Ph+ ALL than in patients with CP-CML. Obtain complete blood counts every 2 weeks for the first 3 months and then monthly or as clinically indicated, and adjust the dose as recommended.

 

Tumor Lysis Syndrome: Two patients (<1%) with advanced disease (AP-CML, BP-CML, or Ph+ ALL) treated with Iclusig developed serious tumor lysis syndrome. Hyperuricemia occurred in 7% (30/449) of patients overall; the majority had CP-CML (19 patients). Due to the potential for tumor lysis syndrome in patients with advanced disease, ensure adequate hydration and treat high uric acid levels prior to initiating therapy with Iclusig.

 

Compromised Wound Healing and Gastrointestinal Perforation: Since Iclusig may compromise wound healing, interrupt Iclusig for at least 1 week prior to major surgery. Serious gastrointestinal perforation (fistula) occurred in one patient 38 days post-cholecystectomy.

 

Embryo-Fetal Toxicity: Iclusig can cause fetal harm. If Iclusig is used during pregnancy, or if the patient becomes pregnant while taking Iclusig, the patient should be apprised of the potential hazard to the fetus. Advise women to avoid pregnancy while taking Iclusig.

 

 

 

5

 

 

Most common non-hematologic adverse reactions: (≥20%) were hypertension, rash, abdominal pain, fatigue, headache, dry skin, constipation, arthralgia, nausea, and pyrexia. Hematologic adverse reactions included thrombocytopenia, anemia, neutropenia, lymphopenia, and leukopenia.

 

Please see the full U.S. Prescribing Information for Iclusig, including the Boxed Warning, for additional important safety information.

 

Forward-Looking Statements

This communication contains “forward-looking statements” including, but not limited to, statements regarding future events and ARIAD’s business, strategy and results. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are identified by use of words such as “may,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe” and other words and terms of similar meaning. Such statements are based on management’s expectations and are subject to certain factors, risks and uncertainties that may cause actual results, outcome of events, timing and performance to differ materially from those expressed or implied by such forward looking statements. These risks and uncertainties include, but are not limited to, our ability to meet anticipated clinical trial commencement, enrollment and completion dates for our products and product candidates and to move new development candidates into the clinic; our ability to secure a partnership for brigatinib (AP26113); difficulties or delays in obtaining regulatory and pricing and reimbursement approvals to market our products; our ability to successfully commercialize and generate profits from sales of Iclusig; competition from alternative therapies; our reliance on the performance of third-party manufacturers and specialty pharmacies for the distribution of Iclusig; the occurrence of adverse safety events with our products and product candidates; preclinical data and early-stage clinical data that may not be replicated in later-stage clinical studies; the costs associated with our research, development, manufacturing and other activities; the conduct and results of preclinical and clinical studies of our product candidates; the adequacy of our capital resources and the availability of additional funding; patent protection and third-party intellectual property claims; litigation, including our pending securities class action and derivative lawsuits; our operations in foreign countries; risks related to key employees, markets, economic conditions, health care reform, prices and reimbursement rates; and other risk factors detailed in ARIAD’s public filings with the U.S. Securities and Exchange Commission. The information contained in this communication is believed to be current as of the date of original issue. After the date of this communication, ARIAD does not intend to update any of the forward-looking statements to conform these statements to actual results or to changes in ARIAD’s expectations, except as required by law.

Important Additional Information

 

ARIAD, its directors and certain of its executive officers may be deemed to be participants in the solicitation of proxies from ARIAD stockholders in connection with the matters to be considered at ARIAD’s 2015 annual meeting of stockholders.  ARIAD intends to file a proxy statement and accompanying proxy card with the U.S. Securities and Exchange Commission (the “SEC”) in connection with any such solicitation of proxies from ARIAD stockholders. ARIAD STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ ANY SUCH PROXY STATEMENT AND ACCOMPANYING PROXY CARD AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.  Information regarding ARIAD’s directors and executive officers is available in ARIAD’s proxy statement, dated May 9, 2014, for its 2014 annual meeting of stockholders. To the extent holdings of ARIAD’s securities by directors or executive officers have changed since the amounts set forth in the 2014 proxy statement, such changes have been or will be reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Change in Ownership on Form 4 filed with the SEC. More detailed information regarding the identity of participants, and their direct or indirect interests, by security holdings or otherwise, will be set forth in the proxy statement and other materials to be filed with the SEC in connection with ARIAD’s 2015 annual meeting of stockholders.  Additional information can also be found in ARIAD’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on March 2, 2015, and in ARIAD’s Quarterly Reports on Form 10-Q. ARIAD’s stockholders will be able to obtain, free of charge, any proxy statement, any amendments or supplements to the proxy statement and any other documents filed by ARIAD with the SEC at the SEC’s website at http://www.sec.gov.  In addition, copies will be available free of charge at ARIAD’s website at http://www.ariad.com or by contacting ARIAD’s Investor Relations by mail at ARIAD Pharmaceuticals, Inc., 26 Landsdowne Street, Cambridge, MA 02139 or by phone at 617-503-7028.

ARIAD Pharmaceuticals, Inc.

For Investors

Kendra Adams, 617-503-7028

Kendra.adams@ariad.com

Or

For Media

Sard Verbinnen & Co.

George Sard/Andrew Cole/Chris Kittredge

212-687-8080

6

 

 

Exhibit C

 

FORM OF AGREEMENT PRESS RELEASE

 

ARIAD ENTERS INTO SETTLEMENT AGREEMENT WITH SARISSA CAPITAL MANAGEMENT

CAMBRIDGE, MA. — April 29, 2015 – ARIAD Pharmaceuticals, Inc. (NASDAQ: ARIA) today announced that it has reached an agreement to settle its current proxy contest with Sarissa Capital Management. In addition, ARIAD’s founder, Harvey J. Berger, M.D., has informed the Board of Directors of his decision to retire as chairman and chief executive officer upon appointment of his successor or December 31, 2015, whichever is earlier.  The Board has formed a CEO search committee chaired by Alex Denner of Sarissa Capital, which will work expeditiously to find a successor CEO.

In addition, under the terms of the settlement, ARIAD’s Board has appointed Anna Protopapas by filling an existing open director seat on the Board.  Sarissa will withdraw its proposed slate of director nominees, which included Ms. Protopapas, for election at the 2015 Annual Meeting and has agreed to vote all of its shares in favor of the Board’s nominees.

“The Board believes this settlement is in the best interests of shareholders, as it allows us to focus on conducting the search for ARIAD’s next CEO while continuing to execute on our critical commercial and pipeline initiatives,” said Wayne Wilson, lead independent director of the Board. “We welcome Anna to the Board and look forward to working together constructively with Sarissa for the benefit of all shareholders.”

“I am excited to work with the board members to optimally position ARIAD as it embarks on its next stage of development.  I believe ARIAD’s loyal and dedicated employees will be able to significantly increase the value of our assets, especially Iclusig and brigatinib, which both hold great promise for cancer patients,” said Alex Denner of Sarissa Capital.

Ms. Protopapas is Chief Executive Officer of Mersana Therapeutics.  She previously served as a member of the Executive Committee of Takeda Pharmaceutical Company Limited and held various senior management positions, including President of Millennium Pharmaceuticals, a wholly owned subsidiary of Takeda, where she was responsible for leading Takeda’s oncology business, and Executive Vice President of Global Business Development, where she was responsible for global acquisitions, partnering, licensing and venture investing.  Prior to serving on Takeda’s Executive Committee, Ms. Protopapas served on Millennium’s Executive Committee as Senior Vice President of Strategy and Business Development, where she led the company’s business development initiatives and led the process that resulted in the $8.8 billion sale of Millennium to Takeda. Ms. Protopapas received a B.S. in engineering from Princeton University, an M.S. in chemical engineering practice from Massachusetts Institute of Technology and a MBA from Stanford Graduate School of Business.

About ARIAD

ARIAD Pharmaceuticals, Inc., headquartered in Cambridge, Massachusetts and Lausanne, Switzerland, is an integrated global oncology company focused on transforming the lives of cancer patients with breakthrough medicines. ARIAD is working on new medicines to advance the treatment of various forms of chronic and acute leukemia, lung cancer and other difficult-to-treat cancers. ARIAD utilizes computational and structural approaches to design small-molecule drugs that overcome resistance to existing cancer medicines. For additional information, visit http://www.ariad.com or follow ARIAD on Twitter (@ARIADPharm).

 

 

 

Forward-Looking Statements

This communication contains “forward-looking statements” including, but not limited to, statements regarding future events and ARIAD’s business, strategy and results. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are identified by use of words such as “may,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe” and other words and terms of similar meaning. Such statements are based on management’s expectations and are subject to certain factors, risks and uncertainties that may cause actual results, outcome of events, timing and performance to differ materially from those expressed or implied by such forward looking statements. These risks and uncertainties include, but are not limited to, our ability to meet anticipated clinical trial commencement, enrollment and completion dates for our products and product candidates and to move new development candidates into the clinic; our ability to secure a partnership for brigatinib (AP26113); difficulties or delays in obtaining regulatory and pricing and reimbursement approvals to market our products; our ability to successfully commercialize and generate profits from sales of Iclusig; competition from alternative therapies; our reliance on the performance of third-party manufacturers and specialty pharmacies for the distribution of Iclusig; the occurrence of adverse safety events with our products and product candidates; preclinical data and early-stage clinical data that may not be replicated in later-stage clinical studies; the costs associated with our research, development, manufacturing and other activities; the conduct and results of preclinical and clinical studies of our product candidates; the adequacy of our capital resources and the availability of additional funding; patent protection and third-party intellectual property claims; litigation, including our pending securities class action and derivative lawsuits; our operations in foreign countries; risks related to key employees, markets, economic conditions, health care reform, prices and reimbursement rates; and other risk factors detailed in ARIAD’s public filings with the U.S. Securities and Exchange Commission. The information contained in this communication is believed to be current as of the date of original issue. After the date of this communication, ARIAD does not intend to update any of the forward-looking statements to conform these statements to actual results or to changes in ARIAD’s expectations, except as required by law.

Important Additional Information

ARIAD, its directors and certain of its executive officers may be deemed to be participants in the solicitation of proxies from ARIAD stockholders in connection with the matters to be considered at ARIAD’s 2015 annual meeting of stockholders.  ARIAD intends to file a proxy statement and accompanying proxy card with the U.S. Securities and Exchange Commission (the “SEC”) in connection with any such solicitation of proxies from ARIAD stockholders. ARIAD STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ ANY SUCH PROXY STATEMENT AND ACCOMPANYING PROXY CARD AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.  Information regarding ARIAD’s directors and executive officers is available in ARIAD’s proxy statement, dated May 9, 2014, for its 2014 annual meeting of stockholders. To the extent holdings of ARIAD’s securities by directors or executive officers have changed since the amounts set forth in the 2014 proxy statement, such changes have been or will be reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Change in Ownership on Form 4 filed with the SEC. More detailed information regarding the identity of participants, and their direct or indirect interests, by security holdings or otherwise, will be set forth in the proxy statement and other materials to be filed with the SEC in connection with ARIAD’s 2015 annual meeting of stockholders.  Additional information can also be found in ARIAD’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on March 2, 2015, and in ARIAD’s Quarterly Reports on Form 10-Q. ARIAD’s stockholders will be able to obtain, free of charge, any proxy statement, any amendments or supplements to the proxy statement and any other documents filed by ARIAD with the SEC at the SEC’s website at http://www.sec.gov.  In addition, copies will be available free of charge at ARIAD’s website at http://www.ariad.com or by contacting ARIAD’s Investor Relations by mail at ARIAD Pharmaceuticals, Inc., 26 Landsdowne Street, Cambridge, MA 02139 or by phone at 617-503-7028.

ARIAD Pharmaceuticals, Inc.

For Investors

Kendra Adams, 617-503-7028

Kendra.adams@ariad.com

Or

For Media

Sard Verbinnen & Co.

George Sard/Andrew Cole/Chris Kittredge

212-687-8080

 

 

2Exhibit 4.13

 

Execution Version

 

INVESTMENT AGREEMENT

dated as of

June 27, 2014

among

58.COM INC.,

 

and

 

OHIO RIVER INVESTMENT LIMITED

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	Article 1
	Definitions
	 	 	 
	Section 1.01.	Definitions	1
	Section 1.02.	Other Definitional and Interpretative Provisions	6
	 	 	 
	Article 2
	Purchase and Sale
	 	 	 
	Section 2.01.	Purchase and Sale	7
	Section 2.02.	Closing	7
	 	 	 
	Article 3
	Representations and Warranties of The Company
	 	 	 
	Section 3.01.	Organization and Qualification	8
	Section 3.02.	Subsidiaries	8
	Section 3.03.	Capitalization.	9
	Section 3.04.	Authorization; Enforcement; Validity	10
	Section 3.05.	No Conflicts	10
	Section 3.06.	Consents	10
	Section 3.07.	Valid Issuance	11
	Section 3.08.	No Registration	11
	Section 3.09.	No Integrated Offering	11
	Section 3.10.	SEC Documents	11
	Section 3.11.	Financial Statements	12
	Section 3.12.	No Undisclosed Liabilities	12
	Section 3.13.	Internal Controls and Procedures	13
	Section 3.14.	Absence of Changes	13
	Section 3.15.	Contracts	13
	Section 3.16.	Litigation	13
	Section 3.17.	Permits; Compliance with Applicable Laws	14
	Section 3.18.	Tax Status	14
	Section 3.19.	Ownership of Assets	15
	Section 3.20.	Intellectual Property	15
	Section 3.21.	Variable Interest Entities	15
	Section 3.22.	Transactions with Affiliates and Employees	16
	Section 3.23.	Solvency	16
	Section 3.24.	Brokers and Finders	16

 

    	i

    	 

    

  

	Article 4
	Representations and Warranties of The Purchaser
	 	 	 
	Section 4.01.	Organization	16
	Section 4.02.	Authorization; Enforcement; Validity	17
	Section 4.03.	No Conflicts	17
	Section 4.04.	Consents	17
	Section 4.05.	Status and Investment Intent of the Purchaser.	17
	 	 	 
	Article 5
	Covenants
	 	 	 
	Section 5.01.	Interim Conduct; Further Assurances.	18
	Section 5.02.	Public Disclosure	19
	Section 5.03.	Listing of Securities	19
	Section 5.04.	Reservation of Shares	20
	Section 5.05.	Director Appointment	20
	Section 5.06.	Use of Proceeds	20
	Section 5.07.	No Integrated Offering	20
	 	 	 
	Article 6
	Conditions to Closing
	 	 	 
	Section 6.01.	Conditions to Obligations of All Parties	21
	Section 6.02.	Conditions to Obligation of the Purchaser	21
	Section 6.03.	Conditions to Obligation of the Company	22
	 	 	 
	Article 7
	Survival; Indemnification
	 	 	 
	Section 7.01.	Survival.	22
	Section 7.02.	Indemnification	23
	Section 7.03.	Third Party Claim Procedures.	23
	Section 7.04.	Direct Claim Procedures	25
	 	 	 
	Article 8
	Termination
	 	 	 
	Section 8.01.	Grounds for Termination	25
	Section 8.02.	Effect of Termination	26
	 	 	 
	Article 9
	Miscellaneous
	 	 	 
	Section 9.01.	Notices	26

 

    	ii

    	 

    

  

	Section 9.02.	Amendments and Waivers	28
	Section 9.03.	Expenses	28
	Section 9.04.	Successors and Assigns	28
	Section 9.05.	Governing Law	28
	Section 9.06.	Arbitration	28
	Section 9.07.	Counterparts; Effectiveness; Third Party Beneficiaries	29
	Section 9.08.	Entire Agreement	29
	Section 9.09.	Severability	29
	Section 9.10.	Specific Performance	29

 

    	iii

    	 

    

 

INVESTMENT AGREEMENT

 

INVESTMENT AGREEMENT, dated as of June 27,
2014 (this “Agreement”), by and among (i) 58.com Inc., a company incorporated under the laws of the Cayman Islands
(the “Company”), (ii) and Ohio River Investment Limited, a company organized under the laws of the British Virgin
Islands (the “Purchaser”).

 

WITNESSETH:

 

WHEREAS, the Company desires to issue, sell
and deliver to the Purchaser, and the Purchaser desires to purchase and acquire from the Company (the “Investment”),
upon the terms and conditions set forth in this Agreement, certain Ordinary Shares (as defined below) of the Company.

 

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

 

Article
1

Definitions

 

Section 1.01.  Definitions. (a) The
following terms, as used herein, have the following meanings:

 

“ADSs” means the American
Depositary Shares of the Company, each representing two (2) Class A Ordinary Shares.

 

“Affiliate” means, with
respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with such Person;
provided that none of the Company, any of its Subsidiaries shall be considered an Affiliate of the Purchaser. For purposes
of this definition, “control” when used with respect to any Person means the power to direct the management
and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise,
and the terms “controlling” and “controlled” have correlative meanings.

 

“Applicable Law” means,
with respect to any Person, any international, domestic or foreign federal, state or local law (statutory, common or otherwise),
constitution, treaty, convention, ordinance, code, rule, regulation, order, injunction, judgment, decree, ruling or other similar
requirement enacted, adopted, promulgated or applied by a Governmental Authority that is binding upon or applicable to such Person,
as amended unless expressly specified otherwise.

 

    	 

    	 

    

  

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

 

“Business Cooperation Agreement”
means a business cooperation agreement, to be dated as of the Closing Date, between the Company and the Purchaser, in the form
attached hereto as Exhibit B.

 

“Business Day” means
a day, other than Saturday, Sunday or other day on which commercial banks in New York, New York, the Cayman Islands, Hong Kong
or the PRC are authorized or required by Applicable Law to close.

 

“Circular 75” means Circular
75, issued by the State Administration of Foreign Exchange of the PRC on October 21, 2005, titled “Notice Regarding Certain
Administrative Measures on Financing and Inbound Investments by PRC Residents Through Offshore Special Purpose Vehicles,”
(国家外汇管理局关于境内居民通过境外特殊目的公司融资及返程投资外汇管理有关问题的通知)
effective as of November 1, 2005, or any successor rule or regulation under PRC law.

 

“Class A Shares” means
Class A ordinary shares, par value US$0.00001 per share, in the share capital of the Company.

 

“Class B Shares” means
the Class B ordinary shares, par value US$0.00001 per share, in the share capital of the Company.

 

“Closing Date” means
the date of the Closing.

 

“Contract” means any
agreement, contract, lease, indenture, instrument, note, debenture, bond, mortgage or deed of trust or other agreement, commitment,
arrangement or understanding, whether written or oral.

 

“Encumbrance” means any
security interest, pledge, mortgage, lien, charge, claim, hypothecation, title defect, right of first option or refusal, right
of preemption, or other encumbrance of any kind.

 

“Exchange Act” means
the U.S. Securities Exchange Act of 1934, as amended, and any rules and regulations promulgated thereunder.

 

“Existing Shareholders Agreement”
means the amended and restated shareholders’ agreement, dated August 4, 2011, by and among the Company and certain of its
shareholders.

 

    	2

    	 

    

  

“Fundamental Company Representations”
means the representations and warranties by the Company contained in Sections 3.01, 3.03, 3.04, 3.05, 3.06, 3.07 and 3.24.

 

“GAAP” means generally
accepted accounting principles in the United States.

 

“Governmental Authority”
means any transnational, domestic or foreign federal, state or local governmental, regulatory or administrative authority, department,
court, agency or official, including any political subdivision thereof.

 

“HKSE” means Hong Kong
Stock Exchange.

 

“Hong Kong” means the
Hong Kong Special Administrative Region of the PRC.

 

“Intellectual Property”
means any and all rights in any of the following: (a) trademarks and service marks, trade dress, trade names and other indications
of origin, applications or registrations in any jurisdiction pertaining to the foregoing and all goodwill associated therewith;
(b) inventions, discoveries, improvements, ideas, know-how, formula methodology, processes, technology, software (including rights
in password unprotected interpretive code or source code, object code, development documentation, programming tools, drawings,
specifications and data) and patent applications and patents in any jurisdiction pertaining to the foregoing, including re-issues,
continuations, divisions, continuations-in-part, renewals or extensions; (c) trade secrets, including confidential information
and the right in any jurisdiction to limit the use or disclosure thereof; (d) copyrights in writings, designs software, mask works
or other works, applications or registrations in any jurisdiction for the foregoing and all moral rights related thereto; (e) database
rights; (f) rights in Internet Web sites, domain names and applications and registrations pertaining thereto; (g) books and records
pertaining to the foregoing; and (h) claims or causes of action arising out of past, present or future infringement or misappropriation
of any of the foregoing.

 

“Investor Rights Agreement”
means an investor rights agreement, to be dated as of the Closing Date, among the Company, the Purchaser and the other parties
named therein, in the form attached hereto as Exhibit A.

 

“Issued Shares” means
22,083,000 Class A Shares and 14,722,000 Class B Shares to be newly issued by the Company to the Purchaser on the Closing Date.

 

“knowledge” of any Person
that is not an individual means the knowledge of such Person’s officers after reasonable inquiry.

 

    	3

    	 

    

  

“Material Adverse Effect”
means any event, circumstance, development, change or effect that, individually or in the aggregate, has or would reasonably be
expected to have a material adverse effect on (i) the condition (financial or otherwise), business, assets, results of operations
or prospects of the Company and its Subsidiaries, taken as a whole, excluding any such effect resulting from (A) the announcement
of the transactions contemplated by this Agreement, (B) changes affecting any of the industries in which the Company or its Subsidiaries
operate generally or the economy generally or (C) changes affecting general worldwide economic or capital market conditions (provided
that in the case of (B) or (C), only to the extent such changes do not disproportionately adversely affect the Company and its
Subsidiaries relative to other similarly situated participants in the industry in which they operate), or (ii) the authority or
ability of the Company to perform its obligations under this Agreement and the other Transaction Documents and to consummate the
transactions contemplated hereby and thereby.

 

“Memorandum and Articles”
means the Memorandum and Articles of Association of the Company in effect from time to time.

 

“NYSE” means the New
York Stock Exchange.

 

“Ordinary Shares” means
collectively the Class A Shares and the Class B Shares.

 

“Person” means an individual,
corporation, partnership, limited liability company, association, trust or other entity or organization, including a Governmental
Authority.

 

“PRC” means the People’s
Republic of China, but, for the purposes of this Agreement, shall not include Hong Kong, the Macau Special Administrative Region
or Taiwan.

 

“PRC Resident” has the
meaning as set forth in Circular 75.

 

“Purchaser Director”
means the one (1) individual whom the Purchaser is entitled to designate for appointment or election as a director of the Board.

 

“Sarbanes-Oxley Act”
means the Sarbanes-Oxley Act of 2002.

 

“SEC” means the U.S.
Securities and Exchange Commission.

 

“Securities” means any
Ordinary Shares or any equity interest of, or shares of any class in the share capital (ordinary, preferred or otherwise) of, the
Company and any convertible securities, options, warrants and any other type of equity or equity-linked securities convertible,
exercisable or exchangeable for any such equity interest or shares of any class in the share capital of the Company.

 

    	4

    	 

    

 

“Securities Act” means
the U.S. Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Subsidiary” of any Person
means any corporation, partnership, limited liability company, joint stock company, joint venture or other organization or entity,
whether incorporated or unincorporated, which is controlled by such Person and, for the avoidance of doubt, the Subsidiaries of
any Person shall include any variable interest entity over which such Person or any of its Subsidiaries effects control pursuant
to contractual arrangements and which is consolidated with such Person in accordance with generally accepted accounting principles
applicable to such Person and any Subsidiaries of such variable interest entity.

 

“Tax Representations”
means the representations and warranties by the Company contained in Section 3.18.

 

“Transaction Documents”
mean this Agreement, the Investor Rights Agreement, the Business Cooperation Agreement, the Repurchase Agreement and each of the
other agreements and documents entered into or delivered by the parties hereto or their respective Affiliates in connection with
the transactions contemplated by this Agreement.

 

“U.S.” or “United
States” means the United States of America.

 

		(b)	Each of the following terms is defined in the Section set
forth opposite such term:

 

	Term	 	Section
	2010 Plan	 	3.03(a)
	2013 Plan	 	3.03(a)
	Agreement	 	Preamble
	Bankruptcy Exception	 	3.04
	Closing	 	2.02
	Company Share Plans	 	3.03(a)
	Control Contracts	 	3.21
	Damages	 	7.02
	e-mail	 	9.01
	Financial Statements	 	3.11
	HKIAC	 	9.06
	Indemnified Parties	 	7.02
	Indemnifying Party	 	7.03
	Investment	 	Recital

 

    	5

    	 

    

 

	Term	 	Section
	Judgment	 	3.16
	Material Contract	 	3.15
	Permits	 	3.17
	Proceedings	 	3.16
	Purchaser	 	Preamble
	Repurchase	 	5.06
	Repurchase Agreement	 	5.06
	Repurchase Shares	 	5.06
	Returns	 	3.18
	Rules	 	9.06
	SEC Documents	 	3.10
	Sellers	 	5.06
	Subscription Price	 	2.01
	Tax	 	3.18
	Third Party Claim	 	7.03
	Warranty Breach	 	7.02

 

Section 1.02.  Other Definitional and
Interpretative Provisions. The words “hereof”, “herein” and “hereunder” and words of like
import used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The
captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation hereof.
References to Articles, Sections, Exhibits and Schedules are to Articles, Sections, Exhibits and Schedules of this Agreement unless
otherwise specified. All Exhibits and Schedules 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 Exhibit or Schedule but not otherwise defined
therein, shall have the meaning as defined in this Agreement. Any singular term in this Agreement shall be deemed to include the
plural, and any plural term the singular. Whenever the words “include”, “includes” or “including”
are used in this Agreement, they shall be deemed to be followed by the words “without limitation”, whether or not they
are in fact followed by those words or words of like import. “Writing”, “written” and comparable terms
refer to printing, typing and other means of reproducing words (including electronic media) in a visible form. References to any
statute shall be deemed to refer to such statute as amended from time to time and to any rules or regulations promulgated thereunder.
References to any agreement or contract are to that agreement or contract as amended, modified or supplemented from time to time
in accordance with the terms hereof and thereof; provided that with respect to any agreement or contract listed on any schedules
hereto, all such amendments, modifications or supplements must also be listed in the appropriate schedule. References to any Person
include the successors and permitted assigns of that Person. References from or through any date mean, unless otherwise specified,
from and including or through and including, respectively. References to “law”, “laws” or to a particular
statute or law shall be deemed also to include any and all Applicable Law.

 

    	6

    	 

    

 

Article
2

Purchase and Sale

 

Section 2.01.  Purchase and Sale. Upon
the terms and subject to the conditions of this Agreement, at the Closing, the Company agrees to issue and sell to the Purchaser,
and the Purchaser agrees to subscribe for and purchase from the Company, the Issued Shares. The aggregate subscription price for
the Issued Shares is US$736,100,000 (“Subscription Price”). The Subscription Price shall be paid as provided
in Section 2.02.

 

Section 2.02. Closing.  The closing
(the “Closing”) of the issuance and sale of the Issued Shares (“Subscription Closing”) hereunder
shall take place remotely via the electronic exchange of documents and signatures, as soon as possible, but in no event later than
five Business Days, after satisfaction or, to the extent permissible, waiver by the party or parties entitled to the benefit of
the conditions set forth in Article 6 (other than conditions that by their
nature are to be satisfied at the Closing, but subject to the satisfaction or, to the extent permissible, waiver of those conditions
at the Closing), or at such other time or place as the parties hereto may agree. At the Closing:

 

(a)     the Purchaser shall deliver to the
Company the Subscription Price by wire transfer in U.S. dollars of immediately available funds to a bank account designated by
the Company at least one Business Day prior to the Closing Date;

 

(b)     the Company shall deliver to the
Purchaser: (i) a certified copy of the relevant page of the register of members of the Company reflecting the Purchaser as the
owner of Issued Shares, (ii) a share certificate representing the Issued Shares duly executed on behalf of the Company and registered
in the name of the Purchaser (or, if not available at the Closing, a certified copy of such share certificate with the original
to be delivered promptly as soon as possible after the Closing), (iii) copies of the resolutions of the Board and any other required
corporate approvals of the Company duly authorizing and approving this Agreement and the other Transaction Documents and the transactions
contemplated hereunder and thereunder, (iv) a certificate of good standing in respect of the Company issued by the Registrar of
Companies in the Cayman Islands, dated no later than a date 30 days prior to the Closing, (v) each of the documents listed in Section
6.02(b), Section 6.02(c) and Section 6.02(d), and (vi) the Investor Rights Agreement and an indemnification agreement (“Director
Indemnity”) in respect of the Purchaser Director in the same form as any indemnification agreements to which the other
directors of the Company are parties as of the Closing, each dated the Closing Date and duly executed by the Company.

 

    	7

    	 

    

 

Article
3

Representations and Warranties of The Company

 

The Company hereby represents and warrants
to the Purchaser as of the date hereof and as of the Closing Date that:

 

Section 3.01.  Organization and Qualification.
The Company is an exempted company duly incorporated, validly existing and in good standing under the laws of the Cayman Islands,
and has the requisite corporate power and authorization to own, lease and operate its properties and to carry on its business as
now being conducted and as described in the SEC Documents. The Company is duly qualified or licensed to do business in each jurisdiction
in which the property owned, leased or operated by it or the nature of the business conducted by it makes such qualification or
licensing necessary, except to the extent that the failure to be so qualified or licensed would not have a Material Adverse Effect.
The memorandum and articles of association of the Company, as filed with the SEC on September 27, 2013, is the current Memorandum
and Articles and is in full force and effect. The Company is not in violation of any of the provisions of its Memorandum and Articles
except as would not have a Material Adverse Effect.

 

Section 3.02.  Subsidiaries. Each
Subsidiary of the Company has been duly organized, is validly existing and in good standing (with respect to jurisdictions that
recognize the concept of good standing) under the laws of its jurisdiction of organization, and has the requisite corporate power
and authorization to own, lease and operate its properties and to carry on its business as now being conducted and as described
in the SEC Documents. Each Subsidiary of the Company is duly qualified or licensed to do business in each jurisdiction in which
the property owned, leased or operated by it or the nature of the business conducted by it makes such qualification or licensing
necessary, except to the extent that the failure to be so qualified or licensed would not have a Material Adverse Effect. The constitutional
documents of each of the Company’s Subsidiaries are in full force and effect except as would not have a Material Adverse
Effect. None of the Company’s Subsidiaries is in violation of any of the provisions of its constitutional documents except
as would not have a Material Adverse Effect.

 

    	8

    	 

    

 

Section 3.03.  Capitalization.

 

(a)     As of the date of this Agreement,
the authorized share capital of the Company consists of 4,800,000,000 Class A Shares and 200,000,000 Class B Shares. As of the
date of this Agreement, (x)(i) 49,824,942 Class A Shares are issued and outstanding (including no Class A Shares that have been
issued to the Company’s depositary and reserved for future grants under the Company Share Plans), (ii) 7,714,904 Class A
Shares are reserved and available for issuance pursuant to share-based compensation awards granted under the Company’s 2010
Employee Stock Option Plan (the “2010 Plan”) and the Company’s 2013 Share Incentive Plan (the “2013
Plan”, and together with the 2010 Plan, the “Company Share Plans”) and (y) 116,051,751 Class B Shares
are issued and outstanding. Except as set forth in this Section 3.03(a), as of the date of this Agreement, no Securities were issued,
reserved for issuance or outstanding and no securities of any of its Subsidiaries convertible into or exchangeable or exercisable
for any Securities were issued or are outstanding. All outstanding Ordinary Shares are, and all such shares that may be issued
prior to the date hereof will be, when issued, duly authorized, validly issued, fully paid and non-assessable and not subject to
preemptive rights. Except for any obligations pursuant to this Agreement or as otherwise set forth above in this Section 3.03(a),
as of the date of this Agreement, there are no options or other rights to acquire from the Company, or other obligation of the
Company to issue, any additional Securities. There are no outstanding obligations of the Company or any of its Subsidiaries to
repurchase, redeem or otherwise acquire any Securities, stock-based performance units or share appreciation rights, other than
pursuant to the Company Share Plans.

 

(b)     All of the outstanding capital or
other voting securities of each Subsidiary is owned by the Company, directly or indirectly, free and clear of any Encumbrance,
except with respect to any variable interest entity over which the Company effects control pursuant to the Control Contracts, and
with respect to such variable interest entity, all of the outstanding capital or other voting securities of each Subsidiary thereof
is owned by such variable interest entity, directly or indirectly, free and clear of any Encumbrance. All of the issued equity
securities of each non-PRC Subsidiary of the Company are validly issued, fully paid and non-assessable, and were issued in compliance
with the applicable registration and qualification requirements of Applicable Laws.

 

(c)     Except for the registration rights
under the Existing Shareholders Agreement and rights granted under the Control Contracts, there are no preemptive rights, registration
rights, rights of first offer, rights of first refusal, tag-along rights, director appointment rights, governance rights, veto
rights or other similar rights with respect to the Securities or the securities of any Subsidiary of the Company that have been
granted to any Person (other than the Company or any Subsidiary).

 

    	9

    	 

    

 

(d)     After giving effect to the Investment
and the Repurchase, the Issued Shares shall represent (x) 19.9% of the total outstanding share capital of, and (y) 15.2% of the
total voting power represented by the total outstanding share capital of, the Company, in each case on a fully diluted basis (including,
for the avoidance of doubt, all shares issuable under Company Share Plans).

 

Section 3.04. Authorization; Enforcement;
Validity. The Company has the requisite corporate power and authority to execute and deliver this Agreement and the other Transaction
Documents and perform its obligations under this Agreement and the other Transaction Documents and to issue the Issued Shares in
accordance with the terms hereof. This Agreement and the other Transaction Documents to be executed on the date hereof have been,
and any Transaction Documents signed after the date hereof will be by the time of execution, duly executed and delivered by the
Company, and, assuming the due authorization, execution and delivery by the Purchaser (and each other party thereto), constitutes
a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or
affecting creditors’ rights and to general equity principles (the “Bankruptcy Exception”).

 

Section 3.05.  No Conflicts. The execution,
delivery and performance by the Company of this Agreement and the other Transaction Documents and the consummation by the Company
of the transactions contemplated hereby and thereby (including the issuance of the Issued Shares) will not (a) result in a violation
of the Memorandum and Articles, (b) conflict with, or constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any Contract
to which the Company or any of its Subsidiaries is a party, or (c) result in a violation of any Applicable Law to the Company or
by which any property or asset of the Company or any of its Subsidiaries is bound or affected, except in the case of clauses (b)
and (c) above, for such conflicts, defaults, rights or violations which would not have a Material Adverse Effect.

 

Section 3.06.  Consents. The execution,
delivery and performance of this Agreement and the other Transaction Documents by the Company require no (a) consent, approval,
authorization, action or order of, any exemption by, any notice to, or any filing or registration with, any Governmental Authority
or (b) any consent, approval or authorization from or any waiver by any third party pursuant to any Contract to which the Company
or any of its Subsidiaries except as would have a Material Adverse Effect. The Company, including all controlled entities within
the meaning of the rules under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, does not hold any assets
located in the U.S. and did not make aggregate sales in or into the U.S. of over US$75.9 million in its most recent fiscal year.

 

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Section 3.07.  Valid Issuance. The
Issued Shares are duly authorized, and, when issued and paid for in accordance with the terms hereof and entered in the register
of members of the Company, shall be validly issued and non-assessable and free from all preemptive or similar rights and Encumbrances,
and the Purchaser shall be entitled to all rights accorded to a holder of the Class A Shares or the B Shares with respect to the
Issued Shares (as applicable).

 

Section 3.08.  No Registration. Assuming
the accuracy of the representations and warranties set forth in Section 4.05 of this Agreement, it is not necessary in connection
with the issuance and sale of the Issued Shares to register the Issued Shares under the Securities Act or to qualify or register
the Issued Shares under applicable U.S. state securities laws. None of the Company, its Subsidiaries or their respective Affiliates
or any Person acting on its or their behalf have engaged in any “directed selling efforts” within the meaning of Rule
903 of Regulation S under the Securities Act or any form of general solicitation or general advertising within the meaning of Rule 502(c)
under the Securities Act with respect to the Issued Shares.

 

Section 3.09.  No Integrated Offering.
None of the Company, any of its Affiliates, or any Person acting on their behalf has, directly or indirectly, made any offers or
sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the issuance
of any of the Issued Shares under the Securities Act, whether through integration with prior offerings or otherwise.

 

Section 3.10.  SEC Documents. The
Company has timely filed or furnished, as applicable, all reports, schedules, forms, statements and other documents required to
be filed or furnished by it with the SEC pursuant to the Securities Act or the Exchange Act (all of the foregoing documents filed
with or furnished to the SEC and all exhibits included therein and financial statements, notes and schedules thereto and documents
incorporated by reference therein being hereinafter referred to as the “SEC Documents”). As of their respective
filing or furnishing dates, the SEC Documents complied in all material respects with the requirements of the Sarbanes-Oxley Act,
the Securities Act or the Exchange Act, as the case may be, and the rules and regulations promulgated thereunder, as applicable,
to the respective SEC Documents, and, other than as corrected or clarified in a subsequent SEC Document prior to the date of this
Agreement, none of the SEC Documents, at the time they were filed or furnished, contained any untrue statement of a material fact
or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading. The information contained in the SEC Documents, considered
as a whole and as amended as of the date hereof, do not as of the date hereof, and will not as of the Closing Date, contain any
untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading. There are no contracts, agreements, arrangements, transactions or
documents which are required to be described or disclosed in the SEC Documents or to be filed as exhibits to the SEC Documents
which have not been so described, disclosed or filed.

 

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Section 3.11.  Financial Statements.
As of their respective dates, the financial statements of the Company included in the SEC Documents (the “Financial Statements”)
complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of
the SEC with respect thereto. The Financial Statements (including any related notes thereto) included or incorporated by reference
in the SEC Documents fairly presented in all material respects the consolidated financial position of the Company as of the dates
indicated therein and the consolidated results of its operations, cash flows and changes in shareholders’ equity for the
periods specified therein. Such Financial Statements were prepared in accordance with GAAP applied on a consistent basis (except
(a) as may be otherwise indicated in such Financial Statements or the notes thereto, or (b) in the case of unaudited interim statements,
to the extent they may exclude footnotes or may be condensed to summary statements).

 

Section 3.12.  No Undisclosed Liabilities.
There are no liabilities of the Company or any Subsidiary of any kind, whether accrued, contingent, absolute, determined, determinable
or otherwise, and there is no existing condition, situation or set of circumstances which could reasonably be expected to result
in such a liability, other than: (a) liabilities reflected on, reserved against, or disclosed in the Company’s unaudited
consolidated balance sheet as of March 31, 2014, (b) liabilities incurred since March 31, 2014 in the ordinary course of business
and (c) any other undisclosed liabilities that are not material to the Company and its Subsidiaries, taken as a whole. There are
no unconsolidated Subsidiaries of the Company or any off-balance sheet arrangements of any type (including any off-balance sheet
arrangement required to be disclosed pursuant to Item 303(a)(4) of Regulation S-K promulgated under the Securities Act) that have
not been so described in the SEC Documents nor any obligations to enter into any such arrangements.

 

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Section 3.13.  Internal Controls and Procedures.
The Company has established and maintains disclosure controls and procedures as such terms are defined in, and required by, Rule
13a-15 or Rule 15d-15 under the Exchange Act. Except as may be disclosed in the SEC Documents, such disclosure controls and procedures
are effective to ensure that all material information required to be disclosed by the Company in the reports that it files or furnishes
under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms
of the SEC. The Company maintains a system of internal controls over financial reporting sufficient to, except to the extent disclosed
in the SEC Documents, provide reasonable assurance that (a) transactions are executed in accordance with management’s general
or specific authorizations and (b) transactions are recorded as necessary to permit preparation of financial statements in conformity
with GAAP. Other than the material weakness in such internal controls over financial reporting disclosed in the SEC Documents,
there are no such other material weaknesses in such system of internal controls. To the knowledge of the Company, there is no reason
that its chief executive officer and chief financial officer will not be able to give the certifications and attestations required
pursuant to the rules and regulations adopted pursuant to Section 404 of the Sarbanes-Oxley Act, without qualification, when next
due.

 

Section 3.14.  Absence of Changes.
Except for the execution and performance of this Agreement and the discussions, negotiations and transactions related thereto,
since March 31, 2014, the Company and its Subsidiaries have conducted their respective businesses in all material respects in the
ordinary course of business consistent with past practice, and without limiting the generality of the foregoing, there has not
been any Material Adverse Effect.

 

Section 3.15.  Contracts. The Company
has filed as exhibits to the SEC Documents all Contracts (including all amendments thereto) that are required to be filed in the
SEC Documents (any such Contract that is so required to be filed, a “Material Contract”). Each Material Contract
is in full force and effect and, to the knowledge of the Company, enforceable against the counterparties of the Company or the
Subsidiaries party thereto, except where such failures to be in effect or enforceable would not reasonably be expected to have
a Material Adverse Effect. The Company and its Subsidiaries and, to the knowledge of the Company, each other party thereto, are
not in default under, or in breach or violation of, any Material Contract, except where such default, breach or violation would
not reasonably be expected to have a Material Adverse Effect.

 

Section 3.16.  Litigation. Except
as disclosed in the SEC Documents, there are no pending or, to the Company’s knowledge, threatened, legal, administrative,
arbitral or other claims, suits, actions or proceedings or governmental or regulatory investigations (“Proceedings”)
of any nature against the Company or any of its Subsidiaries or any director or officer of the Company or any of its Subsidiaries
(in their capacity as directors and officers of the Company or any of its Subsidiaries), which would have a Material Adverse Effect,
or any Proceedings that seek to restrain or enjoin the consummation of the transactions contemplated by the Transaction Documents.
There is no judgment, order, injunction or decree (“Judgment”) outstanding against Company, any of its Subsidiaries,
any of their equity interests, material properties or assets, or any of their directors and officers (in their capacity as directors
and officers), except for any Judgment which would not have a Material Adverse Effect.

 

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Section 3.17.  Permits; Compliance with
Applicable Laws. The Company and each of its Subsidiaries have conducted their businesses in compliance with all Applicable
Laws (including, without limitation, the U.S. Foreign Corrupt Practices Act, as amended, and PRC anti-bribery laws) except as may
be disclosed in the SEC Documents and as would not have a Material Adverse Effect. Except as may be disclosed in the SEC Documents,
the Company and each of its Subsidiaries have all permits, licenses, authorizations, consents, orders and approvals (collectively,
“Permits”) that are required in order to carry on their business as presently conducted, except where the failure
to have such Permits or the failure to make such filings, applications and registrations, would not have a Material Adverse Effect.
Except as may be disclosed in the SEC Documents, all such Permits are in full force and effect and, to the knowledge of the Company,
no suspension or cancellation of any of them is threatened, except where such absence, suspension or cancellation, would not have
a Material Adverse Effect. The Company is in compliance with the applicable listing and corporate governance rules and regulations
of the NYSE. The Company and its Subsidiaries have taken no action designed to, or reasonably likely to have the effect of, delisting
the ADSs from the NYSE. The Company has not received any notification that the SEC or the NYSE is contemplating suspending or terminating
such listing (or the applicable registration under the Exchange Act related thereto), and has no knowledge of any facts that would
reasonably be expected to lead to delisting or suspension of its ADSs from the NYSE in the foreseeable future. The Company is in
compliance with the Sarbanes-Oxley Act in all material respects.

 

Section 3.18.  Tax Status. Except
as may be disclosed in the SEC Documents, the Company and each of its Subsidiaries (a) has made or filed in the appropriate jurisdictions
all material foreign, federal and state income and all other tax returns required to be filed or maintained in connection with
the calculation, determination, assessment or collection of any and all federal, state, local, foreign and other taxes, levies,
fees, imposts, duties, governmental fees and charges of whatever kind (including any interest, penalties or additions to the tax
imposed in connection therewith or with respect thereto) (each a “Tax”), including all amended returns required
as a result of examination adjustments made by any Governmental Authority responsible for the imposition of any Tax (collectively,
the “Returns”), and such Returns are true, correct and complete in all material respects and (b) has paid all
material Taxes and other governmental assessments and charges shown or determined to be due on such Returns, except those being
contested in good faith or will be contested in good faith. Except as may be disclosed in the SEC Documents, neither the Company
nor any of its Subsidiaries has received notice regarding unpaid material Taxes in any material amount claimed to be due by the
taxing authority of any jurisdiction, and the Company is not aware of any reasonable basis for such claim. No Returns filed by
or on behalf of the Company or any of its Subsidiaries with respect to material Taxes are currently being audited, and neither
the Company nor any of its Subsidiaries has received notice of any such audit.

 

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Section 3.19.  Ownership of Assets. Except
as may be disclosed in the SEC Documents, the Company and its Subsidiaries have good and marketable title to, or in the case of
leased property and assets, have valid leasehold interests in, all property and assets (whether real, personal, tangible or intangible)
reflected on the Company’s unaudited consolidated balance sheet as of March 31, 2014 or acquired thereafter, except for properties
and assets sold since such date in the ordinary course of business consistent with past practices and where the failure to have
such good and marketable title or valid leasehold interests would not have a Material Adverse Effect. None of such property or
assets is subject to any Encumbrance, except for Encumbrances: (a) disclosed in the SEC Documents and (b) which would not reasonably
be expected to have a Material Adverse Effect.

 

Section 3.20.  Intellectual Property.
The Company and its Subsidiaries own or possess adequate rights or licenses to use all material Intellectual Property used to conduct
their businesses as now conducted and as described in the SEC Documents. To the knowledge of the Company, there are no infringements
or other violations of any Intellectual Property owned by the Company or any of its Subsidiaries by any third party, except for
such infringements and violations which would not have a Material Adverse Effect. The conduct of the business of the Company and
its Subsidiaries as currently conducted and as described in the SEC Documents does not infringe or otherwise violate any proprietary
right or Intellectual Property of any third party, except for such infringements and other violations which would not have a Material
Adverse Effect. There is no Proceeding pending or, to the knowledge of the Company, threatened against the Company or any Subsidiary:
(i) alleging any such infringement or other violation of any third party’s proprietary rights; or (ii) challenging the Company’s
or any Subsidiary’s ownership or use of, or the validity or enforceability of any material Intellectual Property owned by
the Company or its Subsidiaries, except for any Proceeding that, if resolved in an adverse manner to the Company or its Subsidiaries
would not have a Material Adverse Effect.

 

Section 3.21.  Variable Interest Entities.
The Company controls its variable interest entity, Beijing 58 Information Technology Co., Ltd., through a series of contractual
arrangements (“Control Contracts”), and there is no enforceable agreement or understanding to rescind, amend
or change the nature of such captive structure or the terms of the Control Contracts, except as may be disclosed in the SEC Documents.

 

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Section 3.22.  Transactions with Affiliates
and Employees. All related party transactions required to be disclosed under applicable rules of the NYSE or the Securities
Act have been accurately described in the SEC Documents in all material respects. Any such related party transaction was entered
into on terms and conditions no less favorable to the Company or its applicable Subsidiary than those applicable in comparable
transactions between independent parties acting at arm’s length.

 

Section 3.23.  Solvency. Both before
and after giving effect to the transactions contemplated by the Transaction Documents, each of the Company and its Subsidiaries
(a) will be solvent (in that both the fair value of its assets will not be less than the sum of its debts and that the present
fair saleable value of its assets will not be less than the amount required to pay its probable liability on its recourse debts
as they mature or become due) and (b) will have adequate capital and liquidity with which to engage in the their businesses as
currently conducted and as described in the SEC Documents.

 

Section 3.24.  Brokers and Finders.
Neither the Company nor any of its Subsidiaries is a party to any agreement, arrangement or understanding with any investment banker,
broker, finder or other intermediary that would give rise to any valid right, interest or claim against or upon the Purchaser or
the Company for any brokerage commission, finder’s fee or other similar compensation, as a result of the transactions contemplated
by the Transaction Documents.

 

Article
4

Representations and Warranties of The Purchaser

 

The Purchaser represents and warrants to
the Company as of the date hereof and as of the Closing Date that:

 

Section 4.01. Organization. The Purchaser
is duly incorporated, validly existing and in good standing under the laws of its jurisdiction of incorporation and has the requisite
corporate power and authorization to own, lease and operate its properties and to carry on its business as now being conducted.

 

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Section 4.02.  Authorization; Enforcement;
Validity. The Purchaser has the requisite corporate power and authority to execute and deliver this Agreement and the other
Transaction Documents and perform its obligations under this Agreement and the other Transaction Documents in accordance with the
terms hereof. The execution, delivery and performance of this Agreement and the other Transaction Documents and the consummation
of the transactions contemplated hereby and thereby have been duly and validly authorized by all requisite corporate action by
the Purchaser and no other filing, consent or authorization on the part of the Purchaser is necessary to authorize or approve this
Agreement or the other Transaction Documents or to consummate the transactions contemplated hereby or thereby. This Agreement and
the other Transaction Documents have been or will be duly executed and delivered by the Purchaser, and, assuming the due authorization,
execution and delivery by the Company, constitutes a legal, valid and binding obligation of the Purchaser, enforceable against
the Purchaser in accordance with its terms, subject to the Bankruptcy Exception.

 

Section 4.03.  No Conflicts. The execution,
delivery and performance by the Purchaser of this Agreement and the other Transaction Documents and the consummation by the Purchaser
of the transactions contemplated hereby and thereby will not (a) result in a violation of the organizational or constitutional
documents of the Purchaser, (b) conflict with, or constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any Contract
to which the Purchaser is a party, or (c) result in a violation of any Applicable Law to the Purchaser or by which any property
or asset of the Purchaser is bound or affected, except in the case of clauses (b) and (c) above, for such violations which would
not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of the Purchaser
to perform its obligations hereunder.

 

Section 4.04.  Consents. The execution,
delivery and performance of this Agreement and the other Transaction Documents by the Purchaser require no (a) consent, approval,
authorization, action or order of, any exemption by, any notice to, or any filing or registration with, any Governmental Authority
or (b) any consent, approval or authorization from or any waiver by any third party pursuant to any Contract to which it is a party,
in each case, as would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability
of the Purchaser to perform its obligations hereunder.

 

Section 4.05.  Status and Investment Intent
of the Purchaser.

 

(a)     The Purchaser is not a “U.S.
person” within the meaning of of Regulation S under the Securities Act and is acquiring the Issued Shares in an offshore
transaction under Rule 903 of Regulation S under the Securities Act.

 

(b)     The Purchaser (i) has sufficient
knowledge and experience in financial and business matters to be capable of evaluating the merits and risks involved in purchasing
the Issued Shares and (ii) is capable of bearing the economic risk of the Investment.

 

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(c)     The Purchaser is acquiring the Issued
Shares for its own account and not with a view towards, or for resale in connection with, the public sale or distribution thereof,
except pursuant to sales registered or exempted under the Securities Act.

 

(d)     The Purchaser acknowledges and affirms
that, with the assistance of its advisors, it has conducted and completed its own investigation, analysis and evaluation related
to the investment in the Issued Shares.

 

Article
5

Covenants

 

Section 5.01.  Interim Conduct; Further
Assurances.

 

(a)     From the date hereof until the Closing
Date, the Company shall, and shall cause each of its Subsidiaries to, (i) conduct its business and affairs in the ordinary course
of business consistent with past practice, (ii) not take any action, or omit to take any action, that would reasonably be expected
to make (x) any of its representations and warranties in this Agreement untrue, or (y) any of the conditions for the benefit of
the Purchaser set forth in Article 6 not to be satisfied, in each case, at, or as of any time before, the Closing Date.

 

(b)     Without limiting the generality
of the foregoing, the Company shall promptly after the date hereof and reasonably prior to the Closing take all necessary or desirable
actions required to duly and validly rely on the exemption for foreign private issuers (“FPI Exemption”) from
applicable rules and regulations of the NYSE with respect to corporate governance to rely on “home country practice”
in connection with the transactions contemplated hereunder (including an exemption from any NYSE rules that would otherwise require
seeking shareholder approval in respect of such transactions), including without limitation making disclosures, notices and filings
to or with the SEC and the NYSE and obtaining an adequate opinion of counsel in respect of the home country practice exemption.
The Company shall provide to the Purchaser copies of any material written communication relevant to the FPI Exemption, including
adequate evidence reflecting that the Company has validly relied on the FPI Exemption.

 

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(c)     Each party hereto shall use its
respective best efforts to promptly fulfill or obtain the fulfillment of the conditions precedent to the consummation of the transactions
contemplated by this Agreement, including the execution and delivery of any documents, certificates, instruments or other papers
that are required for the consummation of such transactions, and will cooperate and consult with the other and use its best efforts
to prepare and file all necessary documentation, to effect all necessary applications, notices, petitions, filings and other documents,
and to obtain all necessary Permits of, or any exemption by, all Governmental Authorities, necessary or advisable to consummate
the transactions contemplated by this Agreement. After the Closing Date, each party shall execute and deliver such further certificates,
agreements and other documents and take such other actions as the other party may reasonably request to consummate or implement
any applicable transactions contemplated hereby or to evidence any relevant events or matters.

 

(d)     Without limiting the generality
of the foregoing, the Company agrees that from the date hereof until the Closing Date, it shall not make (or otherwise enter into
any Contract with respect to) (x) any material change in any method of accounting or accounting practice by the Company or any
of its Subsidiaries; (y) any declaration, setting aside or payment of any dividend or other distribution with respect to any Securities
of the Company or any of its Subsidiaries (except for dividends or other distributions by any Subsidiary to the Company or to any
of the Company’s wholly owned Subsidiaries) or (z) any redemption, repurchase or other acquisition of any share capital of
the Company or any of its Subsidiaries, except in each case for the avoidance of doubt as contemplated by the Transaction Documents.

 

Section 5.02.  Public Disclosure.
Each party hereto agrees to consult with the other parties hereto before issuing or making, and to provide each other reasonable
prior opportunity to review, comment upon and concur with, and use all reasonable efforts to agree on, any press release, public
statement or disclosure with respect to this Agreement or the other Transaction Documents or the transactions contemplated hereby
or thereby, and further agrees not to issue any such press release, public statement or disclosure without the prior written consent
of the other parties; provided that a party may without the prior written consent of the other parties issue any such press
release, public statement or disclosure if such party has used reasonable efforts to consult with the other parties and to obtain
the consent of such other parties but has been unable to do so prior to the time such press release or public statement or disclosure
is required to be released pursuant to Applicable Law or any listing agreement with any national securities exchange including
the NYSE or HKSE, provided that such party has also notified the other parties in writing of the details and content of
the press release or public statement or disclosure to be released reasonably in advance of such release.

 

Section 5.03.  Listing of Securities.
The Company shall (a) take all actions necessary to continue the listing and trading of its ADSs on the NYSE and shall materially
comply with the Company’s reporting, filing and other obligations under the rules of the NYSE, in each case, through the
Closing, and (b) at its own cost file with the NYSE a supplemental listing application in respect of the Issued Shares.

 

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Section 5.04.  Reservation of Shares.
The Company shall ensure that it has sufficient number of duly authorized Ordinary Shares at the Closing to comply with its obligations
to issue the Issued Shares.

 

Section 5.05.  Director Appointment.
The Company shall take all necessary or desirable actions as may be required under Applicable Law and in accordance with its Memorandum
and Articles to cause the individual designated by the Purchaser as the initial Purchaser Director to be appointed to the Board
at the Closing.

 

Section 5.06.  Use of Proceeds. The
Company shall use the proceeds of the Subscription Price as follows:

 

(a)     Upon receipt by the Company of the
Subscription Price, it shall promptly repurchase (the “Repurchase”) from certain existing shareholders of the
Company (“Sellers”) certain of their Ordinary Shares (“Repurchase Shares”) pursuant to a
repurchase agreement (“Repurchase Agreement”) to be entered into on the date hereof between the Sellers and
the Company, which Repurchase Agreement shall provide that, among other things, (i) the Sellers shall only be required to provide
customary representations regarding its authorization of the Repurchase, valid organization, title to the Repurchase Shares and
compliance with other instruments and agreements, (ii) concurrently with the Repurchase, the Company and the Sellers shall take
any and all actions required to promptly cancel all of the Repurchase Shares and (iii) the closing of the Repurchase shall occur
substantially concurrently with the Closing.

 

(b)     The Company shall use the remainder
of the proceeds of the Subscription Price for general corporate purposes, including without limitation potential mergers, acquisitions
and investments.

 

Section 5.07. No Integrated Offering.
The Company shall not, and shall cause its Affiliates and any Person acting on its or their behalf not to, directly or indirectly,
make any offers or sales of any security or solicit any offers to buy any security, under circumstances that would require registration
of the issuance of any of the Issued Shares under the Securities Act whether through integration with prior offerings or otherwise.

 

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Article
6

Conditions to Closing

 

Section 6.01.  Conditions to Obligations
of All Parties. The obligations of each party hereto to consummate the Closing are subject to the satisfaction of the following
conditions:

 

(a)     No provision of any Applicable Law
or no Judgment entered by or with any Governmental Authority with competent jurisdiction, shall be in effect that enjoins, prohibits
or materially alters the terms of the transactions contemplated by the Transaction Documents.

 

(b)     No Proceeding challenging any Transaction
Document or the transactions contemplated hereby and thereby, or seeking to prohibit, alter, prevent or materially delay the Closing,
shall have been instituted or be pending before any Governmental Authority.

 

Section 6.02.  Conditions to Obligation
of the Purchaser. The obligation of the Purchaser to consummate the Closing is subject to the satisfaction of the following
further conditions:

 

(a)     (i) The Fundamental Company Representations
and Warranties shall be true and correct in all respects on and as of the Closing Date as though made on and as of the Closing
Date; (ii) the representations and warranties of the Company (other than the Fundamental Company Representations) that are qualified
by materiality or Material Adverse Effect shall be true and correct in all respects on and as of the Closing Date as though made
on and as of the Closing Date; (iii) the representations and warranties of the Company (other than the Fundamental Company Representations)
that are not qualified by materiality or Material Adverse Effect shall be true and correct in all material respects on and as of
the Closing Date as though made on and as of the Closing Date; (iv) the Company shall have performed or complied with all obligations
and conditions in this Agreement required to be performed or complied with by the Company on or prior to the Closing Date; (v)
there shall have been no Material Adverse Effect; and (vi) the Purchaser shall have received a certificate signed by an authorized
officer of the Company to the foregoing effect.

 

(b)     The Company shall have procured
that the Purchaser Director be appointed or elected as a director of the Board at the Closing, and the Purchaser shall have received
a duly certified true and complete copy of the register of directors of the Company, evidencing such appointment.

 

(c)     The Purchaser shall have received
an opinion, dated the Closing Date, of Conyers Dill & Pearman, Cayman Islands counsel for the Company, in form and substance
reasonably satisfactory to the Purchaser.

 

(d)     The Purchaser shall have received
an opinion, dated the Closing Date, of Han Kun Law Offices, PRC counsel for the Company, in form and substance reasonably satisfactory
to the Purchaser.

 

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(e)     The Purchaser shall have received
all documents referred to in Section 5.01(b), and the FPI Exemption shall be in effect.

 

(f)     The Company and any other parties
thereto shall have duly executed and delivered the Investor Rights Agreement and the Director Indemnity and the Purchaser shall
have received such executed counterparts thereof.

 

(g)     The Company shall have duly executed
and delivered the Business Cooperation Agreement and the Purchaser shall have received such executed counterparts thereof.

 

(h)     The Repurchase shall consummate,
or shall have been consummated, substantially concurrently with the Closing.

 

Section 6.03.  Conditions to Obligation
of the Company. The obligations of the Company to consummate the Closing are subject to the satisfaction of the following further
conditions:

 

(a)     The representations and warranties
of the Purchaser in this Agreement shall be true and correct on and as of the Closing Date as though made on and as of the Closing
Date.

 

(b)     The Purchaser shall have performed
all obligations and conditions herein required to be performed or observed by the Purchaser on or prior to the Closing Date.

 

(c)      The Purchaser shall have duly executed
and delivered the Business Cooperation Agreement, and the Company shall have received such executed counterparts thereof.

 

Article
7

Survival; Indemnification

 

Section 7.01.  Survival.

 

(a)     The Fundamental Company Representations
shall survive indefinitely or until the latest date permitted by law. The Tax Representations shall survive until the expiration
of any applicable statute of limitations with respect thereto. All representations and warranties of the Company contained in this
Agreement, other than the Fundamental Company Representations and the Tax Representations, shall survive the Closing until the
second anniversary of the Closing Date.

 

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(b)     The covenants and agreements of
the parties contained in this Agreement or in any certificate or other writing delivered pursuant hereto or in connection herewith
shall survive the Closing indefinitely or for the shorter period explicitly specified therein, except that for such covenants and
agreements that survive for such shorter period, breaches thereof shall survive indefinitely or until the latest date permitted
by law.

 

(c)     Notwithstanding anything to the
contrary in the foregoing clauses, (i) any breach of representation or warranty in respect of which indemnity may be sought under
this Agreement shall survive the time at which it would otherwise terminate pursuant to the preceding sentences, if notice of the
inaccuracy or breach thereof giving rise to such right of indemnity shall have been given to the party against whom such indemnity
may be sought prior to such time and (ii) any breach of representation or warranty in respect of which indemnity may be sought
that was caused as a result of fraud or intentional misrepresentation shall survive indefinitely or until the latest date permitted
by law.

 

Section 7.02.  Indemnification. Effective
at and after the Closing, the Company hereby indemnifies and holds harmless the Purchaser, its Affiliates and its and their respective
directors, officers, employees, agents, successors and assigns (the “Indemnified Parties”) against and from
any and all damage, loss, liability and expense (including reasonable expenses of investigation and reasonable attorneys’
fees and expenses) (“Damages”), incurred or suffered by the Indemnified Parties arising out of any misrepresentation
or breach of representation or warranty (with the amount of Damages being determined without regard to any qualification or exception
contained therein relating to materiality or Material Adverse Effect or any similar qualification or standard) or breach of covenants
by the Company under this Agreement; provided that (except for any breaches in respect of Fundamental Company Representations
and except for the obligation of the Company to issue the Issued Shares to the Purchaser under Section 2.01), (i) the Company shall
not be liable under this Section 7.02 unless the aggregate amount of Damages exceeds US$1,000,000 in which case the Company shall
be liable for all such Damages, and (ii) the Company’s maximum liability under this Section 7.02 shall not exceed the Subscription
Price.

 

Section 7.03.  Third Party Claim Procedures.

 

(a)     The Indemnified Party seeking indemnification
under Section 7.02 agrees to give reasonably prompt notice in writing to the party against whom indemnity is sought (the “Indemnifying
Party”) of the assertion of any claim or the commencement of any suit, action or proceeding by any third party (“Third
Party Claim”) in respect of which indemnity may be sought under Section 7.02. Such notice shall set forth in reasonable
detail such Third Party Claim and the basis for indemnification (taking into account the information then available to the Indemnified
Party). The failure to so notify the Indemnifying Party shall not relieve the Indemnifying Party of its obligations hereunder,
except to the extent such failure shall have actually materially and adversely prejudiced the Indemnifying Party.

 

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(b)     The Indemnifying Party shall be
entitled to participate in the defense of any Third Party Claim and, subject to the limitations set forth in this Section 7.03,
shall be entitled to control and appoint lead counsel (that is reasonably satisfactory to the Indemnified Party) for such defense,
in each case at its own expense; provided that prior to assuming control of such defense, the Indemnifying Party must (i)
acknowledge in writing that it would have an indemnity obligation to the Indemnified Party for the Damages resulting from such
Third Party Claim and (ii) furnish the Indemnified Party with reasonable evidence that the Indemnifying Party has adequate resources
to defend the Third Party Claim and fulfill its indemnity obligations hereunder.

 

(c)     The Indemnifying Party shall not
be entitled to assume or maintain control of the defense of any Third Party Claim and shall pay the reasonable fees, costs and
expenses of counsel retained by the Indemnified Party if (i) the Indemnifying Party does not deliver the acknowledgment referred
to in Section 7.03(b) within thirty (30) days of receipt of notice of the Third Party Claim pursuant to Section 7.03(a), (ii) the
Third Party Claim relates to or arises in connection with any criminal proceeding, action, indictment, allegation or investigation,
(iii) the Indemnified Party reasonably believes an adverse determination with respect to the Third Party Claim would be materially
detrimental to the reputation or future business prospects of the Indemnified Party or any of its Affiliates, (iv) the Third Party
Claim seeks an injunction or equitable relief against the Indemnified Party or any of its Affiliates or (v) the Indemnifying Party
has failed or is failing to prosecute or defend the Third Party Claim vigorously and prudently.

 

(d)     If the Indemnifying Party shall
assume the control of the defense of any Third Party Claim in accordance with the provisions of Section 7.03(c), the Indemnifying
Party shall obtain the prior written consent of the Indemnified Party (which shall not be unreasonably withheld) before entering
into any settlement of such Third Party Claim if the settlement does not expressly unconditionally release the Indemnified Party
and its Affiliates from all liabilities and obligations with respect to such Third Party Claim or the settlement imposes injunctive
or other equitable relief against the Indemnified Party or any of its Affiliates.

 

    	24

    	 

    

  

(e)     In circumstances where the Indemnifying
Party is controlling the defense of a Third Party Claim in accordance with Section 7.03(c), the Indemnified Party shall be entitled
to participate in the defense of any Third Party Claim and to employ separate counsel of its choice for such purpose, in which
case the fees, costs and expenses of such separate counsel shall be borne by the Indemnified Party; provided that Indemnifying
Party shall pay the fees, costs and expenses of such separate counsel of the Indemnified Party if (i) incurred by the Indemnified
Party prior to the date the Indemnifying Party assumes control of the defense of the Third Party Claim, (ii) if representation
of both the Indemnifying Party and the Indemnified Party by the same counsel would create a conflict of interest or (iii) the Indemnified
Party shall have reasonably concluded that there may be legal defenses available to it which are different from or additional to
those available to the Indemnifying Party.

 

(f)     Each party shall reasonably cooperate,
and cause their respective Affiliates to reasonably cooperate, in the defense or prosecution of any Third Party Claim.

 

Section 7.04. Direct Claim Procedures.
In the event an Indemnified Party has a claim for indemnity under Section 7.02 against the Indemnifying Party that does not involve
a Third Party Claim, the Indemnified Party agrees to give notice in writing of such claim to the Indemnifying Party. Such notice
shall set forth in reasonable detail such claim and the basis for indemnification (taking into account the information then available
to the Indemnified Party). The failure to so notify the Indemnifying Party shall not relieve the Indemnifying Party of its obligations
hereunder, except to the extent such failure shall have actually materially and adversely prejudiced the Indemnifying Party. If
the Indemnifying Party does not notify the Indemnified Party within thirty (30) days following the receipt of a notice with respect
to any such claim that the Indemnifying Party disputes its indemnity obligation to the Indemnified Party for any Damages with respect
to such claim, such Damages shall be conclusively deemed a liability of the Indemnifying Party and the Indemnifying Party shall
promptly pay to the Indemnified Party any and all Damages arising out of such claim. If the Indemnifying Party has timely disputed
its indemnity obligation for any Damages with respect to such claim, the parties shall proceed in good faith to negotiate a resolution
of such dispute and, if not resolved through such negotiations, such dispute shall be resolved by arbitration determined pursuant
to Section 9.06.

 

Article
8

Termination

 

Section 8.01.  Grounds for Termination.
This Agreement may be terminated at any time prior to the Closing:

 

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(a)     by the mutual written consent of
each party hereto;

 

(b)     by the Purchaser or the Company
if the Closing shall not have occurred on or before July 15, 2014; provided that such right to terminate this Agreement
shall not be available to any party whose failure to fulfill any obligation under this Agreement shall have been the cause of,
or shall have resulted in, the failure of the Closing to occur on or prior to such date; or

 

(c)     by any party in the event that any
Governmental Entity shall have issued a Judgment or taken any other action restraining, enjoining or otherwise prohibiting the
transactions contemplated by this Agreement and such Judgment or other action shall have become final and non-appealable.

 

The party desiring to terminate this Agreement
pursuant to Section 8.01(b) or Section 8.01(c) shall give notice of such termination to the other parties hereto specifying the
provision hereof pursuant to which such termination is made.

 

Section 8.02.  Effect of Termination.
In the event of termination of this Agreement, this Agreement shall forthwith become void and of no further force or effect (except
for Section 5.02 and Article 9, which shall survive such termination) and there shall be no liability on the part of any party
hereto except that nothing herein shall relieve any party from any liability for Damages for any breach of this Agreement.

 

Article
9

Miscellaneous

 

Section 9.01.  Notices. All notices,
requests and other communications to any party hereunder shall be in writing (including facsimile transmission and electronic mail
(“e-mail”) transmission, so long as a receipt of such e-mail is requested and received) and shall be given,

 

if to the Company, to:

 

58.com Inc.

Block E, The North American International Business Center

Yi 108 Beiyuan Road, Chaoyang District,

Beijing 100101 People’s Republic of China

Attention: Mr. Hao Zhou, Chief Financial Officer

Facsimile: +86 10 6445 9926

Email: zhouhao@58.com" zhouhao@58.com

 

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

 

Skadden, Arps, Slate, Meagher & Flom LLP

42/F, Edinburgh Tower, The Landmark

15 Queen's Road Central

Hong Kong

Attention: Z. Julie Gao; Will H. Cai

Fascimile: +852.3910.4863 ; +852 3910.4891

Email: julie.gao@skadden.com; will.cai@skadden.com

 

if to the Purchaser, to:

 

c/o Level 29, Three Pacific Place

1 Queen’s Road East

Wanchai, Hong Kong

Attention: Assistant General Counsel

Facsimile: +852 2420 1148

Email: richard.pu@tencent.com.hk

 

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

 

Tencent Building

Kejizhongyi Avenue, Hi-tech Park

Nanshan District, Shenzhen

518057, People’s Republic of China

Attention: General Counsel

Facsimile: +86 755 8601 3090 (Ext. 82238)

Email: brentirvin@tencent.com

Attention: General Manager, M&A

Facsimile: +86 755 8601 3090

Email: richardpeng@tencent.com" richardpeng@tencent.com

and

 

Davis Polk & Wardwell

Hong Kong Club Building

3A Chater Road

Central

Hong Kong

Attention: Miranda So

Facsimile: +852 2533 1773

Email: miranda.so@davispolk.com

 

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or such other address or facsimile number
as such party may hereafter specify for the purpose by notice to the other parties hereto. All such notices, requests and other
communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5:00 p.m. in the place
of receipt and such day is a Business Day in the place of receipt. Otherwise, any such notice, request or communication shall be
deemed not to have been received until the next succeeding Business Day in the place of receipt.

 

Section 9.02.  Amendments and Waivers.
(a) Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed,
in the case of an amendment, by each party to this Agreement, or in the case of a waiver, by the party against whom the waiver
is to be effective.

 

(b)     No failure or delay by any party
in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise
thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies
herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

 

Section 9.03.  Expenses. Except as
otherwise provided herein, all costs and expenses incurred in connection with this Agreement shall be paid by the party incurring
such cost or expense.

 

Section 9.04.  Successors and Assigns.
The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and assigns; provided that no party may assign, delegate or otherwise transfer any of its rights or obligations under this
Agreement without the consent of each other party hereto; except that the Purchaser may assign any rights or obligations hereunder
to any of its Affiliates without obtaining the prior written consent of the other parties hereto.

 

Section 9.05.  Governing Law. This
Agreement, the rights and obligations of the parties hereto, and all claims or disputes relating hereto, shall be governed by and
construed in accordance with the law of Hong Kong, without regard to the conflicts of law rules thereunder.

 

Section 9.06.  Arbitration. Any dispute,
controversy or claim arising out of or relating to this Agreement, including, but not limited to, any question regarding the breach,
termination or invalidity thereof shall be finally resolved by arbitration in Hong Kong in accordance with the administered rules
(the “Rules”) of the Hong Kong International Arbitration Centre (the “HKIAC”) in force at
the time of commencement of the arbitration, which Rules are deemed to be incorporated by reference into this Section. The number
of arbitrators shall be three and shall be selected in accordance with the Rules. All selections shall be made within thirty (30)
days after the selecting party gives or receives, as the case may be, the demand for arbitration. The seat of the arbitration shall
be in Hong Kong and the language to be used shall be English. Any arbitration award shall be (i) in writing and shall contain the
reasons for the decision, (ii) final and binding on the parties hereto and (iii) enforceable in any court of competent jurisdiction,
and the parties hereto agree to be bound thereby and to act accordingly.

 

    	28

    	 

    

  

Section 9.07.  Counterparts; Effectiveness;
Third Party Beneficiaries. This Agreement may be signed in any number of counterparts, each of which shall be an original,
with the same effect as if the signatures thereto and hereto were upon the same instrument. Signatures in the form of facsimile
or electronically imaged “PDF” shall be deemed to be original signatures for all purposes hereunder. This Agreement
shall become effective when each party hereto shall have received a counterpart hereof signed by all of the other parties hereto.
Until and unless each party has received a counterpart hereof signed by the other party hereto, this Agreement shall have no effect
and no party shall have any right or obligation hereunder (whether by virtue of any other oral or written agreement or other communication).
No provision of this Agreement is intended to confer any rights, benefits, remedies, obligations, or liabilities hereunder upon
any Person other than the parties hereto and their respective successors and assigns.

 

Section 9.08.  Entire Agreement. This
Agreement and the other Transaction Documents constitutes the entire agreement between the parties with respect to the subject
matter of this Agreement and supersedes all prior agreements and understandings, both oral and written, between the parties with
respect to the subject matter of this Agreement.

 

Section 9.09.  Severability. If any
term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other Governmental Authority
to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall
remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance
of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such a determination,
the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely
as possible in an acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated
to the fullest extent possible.

 

Section 9.10.  Specific Performance. The
parties hereto agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with
the terms hereof and that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement or
to enforce specifically the performance of the terms and provisions hereof, in addition to any other remedy to which they are entitled
at law or in equity.

 

    	29

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.

 

	 	58.com Inc
	 	 
	 	By:	/s/ Jinbo Yao
	 	 	Name:	Jinbo Yao
	 	 	Title:	CEO

 

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IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the date first set forth above.

 

	 	OHIO RIVER INVESTMENT LIMITED
	 	 
	 	By:	/s/ Ma Huateng
	 	 	Name:	Ma Huateng
	 	 	Title:	Director

 

    	31

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