Document:

Right of First Refusal and Co-Sale Agreement

 Exhibit 10.41 
 SOGOU INC. 
 SERIES A PREFERRED 

RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT 
 OCTOBER 22, 2010 

 TABLE OF CONTENTS 

 

									
	 1.
	  	 Definitions
	  	 	1	  
			
	 2.
	  	 Agreements Among the Company, the Ordinary Holders and the Preferred Holders
	  	 	3	  
				
		  	 2.1
	  	 Rights of Refusal
	  	 	3	  
		  	 2.2
	  	 Right of Co-Sale
	  	 	5	  
		  	 2.3
	  	 Non-Exercise of Rights
	  	 	6	  
		  	 2.4
	  	 Limitations to Rights of Refusal and Co-Sale
	  	 	7	  
		  	 2.5
	  	 Prohibited Transfers
	  	 	7	  
			
	 3.
	  	 Assignments and Transfers; No Third Party Beneficiaries
	  	 	7	  
			
	 4.
	  	 Effect of Change in Company’s Capital Structure
	  	 	7	  
			
	 5.
	  	 Additional Ordinary Holders
	  	 	8	  
			
	 6.
	  	 Notices
	  	 	8	  
			
	 7.
	  	 Further Instruments and Actions
	  	 	8	  
			
	 8.
	  	 Term
	  	 	8	  
			
	 9.
	  	 Entire Agreement
	  	 	8	  
			
	 10.
	  	 Governing Law and Dispute Resolutions
	  	 	8	  
			
	 11.
	  	 Amendments and Waivers
	  	 	9	  
			
	 12.
	  	 Severability
	  	 	9	  
			
	 13.
	  	 Attorney’s Fees
	  	 	9	  
			
	 14.
	  	 Specific Performance
	  	 	9	  
			
	 15.
	  	 No Waiver
	  	 	9	  
			
	 16.
	  	 Counterparts
	  	 	10	  
		
	EXHIBITS	  			
	
	 EXHIBIT A        Schedule of Ordinary Holders
	  
	 EXHIBIT B        Schedule of Investors
	  

 RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT 

This RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT (the “Agreement”) is entered into as of
October 22, 2010 by and among Sogou Inc., a company incorporated under the laws of the Cayman Islands (the “Company”), the holders of Ordinary Shares, par value US$0.001 per share, of the Company (the “Ordinary
Shares”) listed on the Schedule of Ordinary Holders attached as Exhibit A hereto (the “Ordinary Holders”) and the investors listed on the Schedule of Investors attached as Exhibit B hereto, each of which is
herein referred to as an “Investor” and, collectively, the “Investors”. 
 RECITALS

 A. The Ordinary Holders are the owners of the number of shares of Ordinary Shares of the Company set
forth opposite the Ordinary Holders’ names on Exhibit A attached hereto. 
 B. The Company and the
Investors are parties to a Series A Preferred Share Purchase Agreement (the “Purchase Agreement”) dated as of October 1, 2010, by and among the Company, the Investors and the other parties thereto, whereby the Company will
sell, and the Investors will buy Series A Preferred Shares, par value US$0.001 per share, of the Company (the “Series A Preferred”). Upon the completion of the transactions contemplated by the Purchase Agreement, each Investor will
be the owner of the number of shares of Series A Preferred set forth opposite the Investor’s name on Exhibit B attached hereto. 
 C. The obligations of the Company and the Investors under the Purchase Agreement are conditioned upon, among other things, the execution and delivery of this Agreement by the parties hereto. 

D. The Company and the Ordinary Holders desire to induce the Investors to purchase shares of the Company’s Series A
Preferred pursuant to the Purchase Agreement by agreeing to the terms and conditions set forth below. 
 AGREEMENT

 NOW, THEREFORE, in consideration of the mutual promises and covenants herein and other consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 
 1.
Definitions. For purposes of this Agreement: 
 (a) The term “Affiliate” means, with respect to
a Person, any other Person that, directly or indirectly, Controls, is Controlled by or is under common Control with such Person. 
 (b) The term “Agreement” has the meaning set forth in the Preamble of this Agreement. 
 (c) The term “Alibaba” has the meaning set forth in Section 2.5. 
 (d) The term “Amended Memorandum” has the meaning set forth in Section 8. 

  
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 (e) The term “Business Day” means any weekday that the banks in
the Cayman Islands, the Hong Kong Special Administrative Region, the People’s Republic of China, and the United States of America are generally open for business. 

(f) The term “Co-Sale Participant” has the meaning set forth in Section 2.2. 

(g) The term “Control” of a given Person means the power or authority, whether exercised or not, to direct the
business, management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, which power or authority shall conclusively be presumed to exist upon possession of beneficial
ownership or power to direct the vote of more than fifty percent (50%) of the votes entitled to be cast at a meeting of the members or shareholders of such Person or power to control the composition of a majority of the board of directors of
such Person; the term “Controlled” has the meaning correlative to the foregoing. 
 (h) The term
“Delivery” shall have the meaning set forth in Section 6 below. 
 (i) The term “Equity
Securities” shall mean any securities having voting rights in the election of the Board of Directors of the Company (the “Board”), or any securities evidencing an ownership interest in the Company, or any securities convertible into
or exercisable for any shares of the foregoing, or any equity appreciation, phantom equity, equity plans or similar rights with respect to the Company, or any contract of any kind for the purchase or acquisition from the Company of any of the
foregoing, either directly or indirectly. 
 (j) The term “Fully Participating Preferred Holder” has
the meaning set forth in Section 2.1(b). 
 (k) The term “Holders” shall mean the Ordinary
Holders, Investors or persons who have acquired shares from any of such persons or their transferees or assignees in accordance with the provisions of this Agreement. 

(l) The term “Ordinary Shares” shall mean the Company’s Ordinary Shares, par value US$0.001 per share.

 (m) The term “Offered Shares” has the meaning set forth in Section 2.1(a). 

(n) The term “Parties” shall mean the Company, the Ordinary Holders and the Preferred Holders that are parties
to this Agreement. 
 (o) The term “Participating Holders Overallotment Notice” has the meaning set
forth in Section 2.1(b). 
 (p) The term “Participating Preferred Holder” has the meaning set
forth in Section 2.1(b). 
 (q) The term “Participating Preferred Holder Notice” has the meaning
set forth in Section 2.1(b). 

  
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 (r) The term “Person” means any individual, corporation,
partnership, limited partnership, proprietorship, association, limited liability company, firm, trust, estate or other enterprise or entity. 
 (s) The term “Preferred Holder” shall mean the Investors and persons who have acquired shares of Series A Preferred from any of such persons or their transferees or assignees in accordance with
the provisions of this Agreement. The term “Principal Tribunal” has the meaning set forth on Section 10(c). 
 (t) The term “Purchase Agreement” has the meaning set forth in the Recitals of this Agreement. 
 (u) The term “Qualified IPO” shall mean the closing of the sale of Ordinary Shares (including American Depositary Receipts representing such shares) in a firm-commitment underwritten public
offering pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “Securities Act”), provided that (i) such offering results in gross cash proceeds to the Company (before underwriting
discounts, commissions and fees) of at least US$100,000,000 and (ii) the market capitalization of the Company immediately prior to such public offering (determined based on the per share value equal to the minimum amount of the price range set
forth in the preliminary prospectus with respect to such offering) is at least US$600,000,000. 
 (v) The term
“Selling Shareholder” has the meaning set forth in Section 2.1(a). 
 (w) The term “Series A
Preferred” has the meaning set forth in the Recitals of this Agreement. 
 (x) The term “Sohu”
has the meaning set forth in Section 2.5. 
 (y) The term “Transfer” shall include any sale,
assignment, encumbrance, hypothecation, pledge, conveyance in trust, gift, transfer by bequest, devise or descent, or other transfer or disposition of any kind, including, but not limited to, transfers pursuant to divorce or legal separation,
transfers to receivers, levying creditors, trustees or receivers in bankruptcy proceedings or general assignees for the benefit of creditors, whether voluntary, involuntarily or by operation of law, directly or indirectly, of any of the Equity
Securities. 
 (z) The term “Transfer Notice” has the meaning set forth in Section 2.1(a).

 2. Agreements Among the Company, the Ordinary Holders and the Preferred Holders. 

2.1 Rights of Refusal. 
 (a) Transfer Notice. If at any time prior to the consummation of a Qualified IPO any Holder proposes to Transfer Equity Securities (a “Selling Shareholder”), then the Selling
Shareholder shall promptly give the Company and each Preferred Holder written notice of the Selling Shareholder’s intention to make the Transfer (the “Transfer Notice”). The Transfer Notice shall include (i) a description
of the Equity Securities to be transferred (“Offered Shares”), (ii) the name(s) and address(es) of the prospective transferee(s), (iii) the consideration and (iv) the material terms and conditions upon which the
proposed Transfer is to be made. The Transfer Notice shall certify that the Selling Shareholder in good faith believes a binding agreement for the Transfer is obtainable on the terms set forth in the Transfer Notice. The Transfer Notice shall also
include a copy of any written proposal, term sheet or letter of intent or other agreement relating to the proposed Transfer. In the event that the transfer is being made pursuant to the provisions of Section 2.4, the Transfer Notice shall state
under which specific subsection the Transfer is being made. 

  
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 (b) Holders’ Right of Refusal. (i) Each Preferred Holder
(not including the Selling Shareholder) shall have an option for a period of ten (10) Business Days from the Delivery of the Transfer Notice from the Selling Shareholder set forth in Section 2.1(a) to elect to purchase its respective pro
rata share of the Offered Shares at the same price and subject to the same material terms and conditions as described in the Transfer Notice. Each Preferred Holder may exercise such purchase option and purchase all or any portion of his, her or its
pro rata share of the Offered Shares (a “Participating Preferred Holder”), by notifying the Selling Shareholder and the Company in writing, before expiration of the ten (10) Business Day period as to the number of such shares
that it wishes to purchase (the “Participating Preferred Holder Notice”). Each Preferred Holder’s pro rata share of the Offered Shares shall be a fraction of the Offered Shares, the numerator of which shall be the number of
Ordinary Shares (including Ordinary Shares issuable upon conversion of Series A Preferred) owned by such Preferred Holder on the date of the Transfer Notice and denominator of which shall be the total number of Ordinary Shares (including Ordinary
Shares issuable upon conversion of Series A Preferred) held by all the Preferred Holders (not including the Selling Shareholder) on the date of the Transfer Notice. 

(ii) In the event any Preferred Holder elects not to purchase any or all of its pro rata share of the Offered Shares
available pursuant to its option under subsection 2.1(b)(i) within the time period set forth therein, then the Selling Shareholder shall promptly, but in any event within two (2) Business Days, give written notice (the “Overallotment
Notice”) to each Participating Preferred Holder that has elected to purchase all of its pro rata share of the Offered Shares (each a “Fully Participating Preferred Holder”), which notice shall set forth the number of Offered
Shares not purchased by the other Preferred Holders, and shall offer the Fully Participating Preferred Holders the right to acquire the unsubscribed shares. Each Fully Participating Preferred Holder shall have three (3) Business Days after
Delivery of the Overallotment Notice to deliver a written notice to the Selling Shareholder (the “Participating Holders Overallotment Notice”) of its election to purchase its pro rata share of the unsubscribed shares on the same
terms and conditions as set forth in the Transfer Notice and indicating the maximum number of the unsubscribed shares that it will purchase in the event that any other Fully Participating Preferred Holder elects not to purchase its pro rata share of
the unsubscribed shares. For purposes of this Section 2.1(b)(ii) each Fully Participating Preferred Holder’s pro rata share of the unsubscribed shares shall be a fraction, the numerator of which shall be the number of Ordinary Shares
(including Ordinary Shares issuable upon conversion of Series A Preferred) owned by such Fully Participating Preferred Holder on the date of the Transfer Notice and the denominator of which shall be the total number of Ordinary Shares (including
Ordinary Shares issuable upon conversion of Series A Preferred) owned by all Fully Participating Preferred Holders on the date of the Transfer Notice. For purposes of subsections 2(b)(i) and (ii), each Participating Preferred Holder shall be
entitled to apportion Offered Shares to be purchased among its partners and affiliates (including in the case of a venture capital fund other venture capital funds affiliated with such fund), provided that such Participating Preferred Holder
notifies the Selling Shareholder of such allocation. 

  
 4 

 (c) Payment. (i) The Participating Preferred Holders shall
effect the purchase of the Offered Shares with payment by check or wire transfer, against delivery of the Offered Shares to be purchased at a place agreed upon between the Parties and at the time of the scheduled closing therefor, which shall be no
later than the latest to occur of (A) thirty (30) Business Days after Delivery to the Preferred Holder of the Transfer Notice (or the Overallotment Notice, if applicable), (B) the closing date contemplated in the Transfer Notice and
(C) the date on which the value of the purchase price has been established pursuant to subsection 2.1(c)(ii). 
 (ii) Should the purchase price specified in the Transfer Notice be payable in property other than cash or evidences of indebtedness, the Company (and the Participating Preferred Holders) shall have the
right to pay the purchase price in the form of cash equal in amount to the fair market value of such property. If the Selling Shareholder and the Participating Preferred Holders cannot agree on such cash value within five (5) Business Days
after Delivery to the Preferred Holders of the Transfer Notice, the valuation shall be made by an appraiser of recognized standing selected by the Selling Shareholder and the Participating Preferred Holders or, if they cannot agree on an appraiser
within ten (10) Business Days after Delivery to the Preferred Holders of the Transfer Notice, each shall select an appraiser of recognized standing and those appraisers shall designate a third appraiser of recognized standing, whose appraisal
shall be determinative of such value. The cost of such appraisal shall be shared equally by the Selling Shareholder and the Participating Preferred Holders, with half of the cost borne by the Participating Preferred Holders pro rata by each, based
on the number of shares such Parties have expressed an interest in purchasing pursuant to this Section 2.1. If the time for the closing of the Participating Preferred Holders’ purchase has expired but the determination of the value of the
purchase price offered by the prospective transferee(s) has not been finalized, then such closing shall be held on or prior to the fifth (5th) Business Day after such valuation shall have been made pursuant to this subsection. 

2.2 Right of Co-Sale. 
 (a) To the extent the Preferred Holders do not exercise their respective rights of refusal as to all of the Offered Shares pursuant to Section 2.1, each Preferred Holder that has not exercised its
Right of First Refusal (a “Co-Sale Participant”) that notifies the Selling Shareholder in writing within fifteen (15) calendar days after Delivery of the Transfer Notice referred to in Section 2.1(a), shall have the right
to participate in such sale of Offered Shares on the same terms and conditions as specified in the Transfer Notice referred to in Section 2.1(a). Such Co-Sale Participant’s notice to the Selling Shareholder shall indicate the number of
shares of Equity Securities that the Co-Sale Participant wishes to sell under his, her or its right to participate. To the extent one or more of the Co-Sale Participants exercise such right of participation in accordance with the terms and
conditions set forth below, the number of Offered Shares that the Selling Shareholder may sell in the Transfer shall be correspondingly reduced. 
 (b) Each Co-Sale Participant may sell all or any part of that number of shares of Equity Securities equal to the product obtained by multiplying (i) the aggregate number of Offered Shares covered by
the Transfer Notice that have not been subscribed for pursuant to Section 2.1 by (ii) a fraction, the numerator of which is the number of Ordinary Shares (including Ordinary Shares issuable upon conversion of Series A Preferred) owned by
the Co-Sale Participant on the date of the Transfer Notice and the denominator of which is the total number of Ordinary Shares (including Ordinary Shares issuable upon conversion of Series A Preferred) owned by the Selling Shareholder and all of the
Co-Sale Participants on the date of the Transfer Notice. 

  
 5 

 (c) Each Co-Sale Participant shall effect its participation in the sale by
promptly delivering to the Selling Shareholder for transfer to the prospective purchaser a signed written instrument of transfer and one or more certificates, properly endorsed for transfer, which represent: 

(i) the type and number of shares of Equity Securities that such Co-Sale Participant elects to sell; or 

(ii) that number of shares of Equity Securities that are at such time convertible into the number of Ordinary Shares
that such Co-Sale Participant elects to sell; provided, however, that if the prospective third-party purchaser objects to the delivery of shares of such Equity Securities in lieu of Ordinary Shares, such Co-Sale Participant shall
convert such shares of such Equity Securities of the Company into Ordinary Shares and deliver a signed written instrument of transfer and certificates contemplating such Ordinary Shares. The Company agrees to make any such conversion concurrent with
the actual transfer of such shares to the purchaser and contingent on such transfer. 
 (d) The signed written
instrument of transfer and the share certificate or certificates that the Co-Sale Participant delivers to the Selling Shareholder pursuant to Section 2.2(c) shall be transferred to the prospective purchaser in consummation of the sale of the
Offered Shares pursuant to the terms and conditions specified in the Transfer Notice referred to in Section 2.1(a), and the Selling Shareholder shall concurrently therewith remit to such Co-Sale Participant that portion of the sale proceeds to
which such Co-Sale Participant is entitled by reason of its participation in such sale. To the extent that any prospective purchaser or purchasers prohibits such assignment or otherwise refuses to purchase shares or other securities from a Co-Sale
Participant exercising its rights of co-sale hereunder, the Selling Shareholder shall not sell to such prospective purchaser or purchasers any Offered Shares unless and until, simultaneously with such sale, the Selling Shareholder shall purchase
such shares or other securities from such Co-Sale Participant for the same consideration and on the same terms and conditions as the proposed transfer described in the Transfer Notice referred to in Section 2.1(a). 

2.3 Non-Exercise of Rights. To the extent that the Preferred Holders do not exercised their rights of first
refusal and co-sale within the applicable time periods, the Selling Shareholder shall have a period of thirty (30) days from the expiration of such rights in which to sell the Offered Shares upon terms and conditions no more favorable than
those specified in the Transfer Notice to the third-party transferee(s) identified in the Transfer Notice. The third party transferee(s) shall acquire such Offered Shares subject to the first refusal and co sale restrictions under this Agreement. In
the event such Selling Shareholder does not consummate the sale or disposition of the Offered Shares within the applicable time period from the expiration of these rights, the first refusal rights and co-sale rights shall continue to be applicable
to any subsequent disposition of the Offered Shares until such right lapses in accordance with the terms of this Agreement. Furthermore, the exercise or non exercise of the rights under this Section 2 shall not adversely affect the
Parties’ rights to make subsequent purchases or sales hereunder. 

  
 6 

 2.4 Limitations to Rights of Refusal and Co-Sale. Notwithstanding the
provisions of Sections 2.1 and 2.2 of this Agreement, the first refusal and co-sale rights shall not apply to (a) the Transfer of Equity Securities to any spouse or member of a Holder’s immediate family, or to a custodian, trustee
(including a trustee of a voting trust), executor, or other fiduciary for the account of the Holder’s spouse or members of the Holder’s immediate family, or to a trust for the Holder’s own self, or a charitable remainder trust,
(b) any offer or sale of Equity Securities to the public pursuant to a registration statement filed with, and declared effective by, the Securities and Exchange Commission under the Securities Act or other applicable laws and regulations in the
relevant jurisdictions for such public offering, or (c) any Transfer of Equity Securities by a Holder that is an entity to any Affiliate of such Holder or to the current or former shareholders, partners or members which own a majority of the
voting securities of such Holder; provided, however, that in the event of any transfer made pursuant to one of the exemptions provided by clause(s) (a), (b), or (c), (i) the Holder shall inform the Investors of such Transfer prior
to effecting it and (ii) in the event of any Transfer made pursuant to clauses (a), or (c) only, each such transferee or assignee, prior to the completion of the Transfer, shall have executed documents assuming the obligations of the
Holders under this Agreement with respect to the transferred Equity Securities. Such transferred Equity Securities shall remain “Equity Securities” hereunder, and such transferee or donee shall be treated as a “Holder” for
purposes of this Agreement. 
 2.5 Prohibited Transfers. Without limiting the generality of the
foregoing, no Holder may sell, pledge, or otherwise transfer any of its Equity Securities to (i) any of up to ten (10) competitors of Alibaba Investment Limited (“Alibaba”), or any Affiliate of Alibaba, as set forth in the
written notice delivered by Alibaba to the Company on or prior to the date hereof (the “Alibaba Competitor Letter”); provided, that the list of competitors set forth in the Alibaba Competitor Letter may be altered and amended
from time to time (but no more than once in any six month period) by delivery of written notice from Alibaba to the Company, or to (ii) any of up to ten (10) competitors of Sohu.com Inc. (“Sohu”), or any Affiliate of Sohu,
as set forth in the written notice delivered by Sohu to the Company on or prior to the date hereof (the “Sohu Competitor Letter”); provided, that the list of competitors set forth in the Sohu Competitor Letter may be altered
and amended from time to time (but no more than once in any six month period) by delivery of written notice from Sohu to the Company. Except as otherwise provided in this Agreement, no Holder may sell, assign, transfer, pledge, hypothecate or
otherwise encumber or dispose of in any way, all or any part of any interest in the Equity Securities. 
 Any
sale, assignment, transfer, pledge, hypothecation or other encumbrance or disposition of Equity Securities not made in conformance with this Agreement shall be null and void, shall not be recorded on the books of the Company and shall not be
recognized by the Company. 
 3. Assignments and Transfers; No Third Party Beneficiaries. This Agreement
and the rights and obligations of the Parties hereunder shall inure to the benefit of, and be binding upon, their respective successors, assigns and legal representatives, but shall not otherwise be for the benefit of any third party. The rights of
the Holders hereunder are only assignable (i) to any other Holder, (ii) to a partner or affiliate of such Holder or (iii) to an assignee or transferee who acquires Equity Securities held by a particular Holder. 

4. Effect of Change in Company’s Capital Structure. If, from time to time, the Company pays a share dividend
or effects a share split or other change in the character, amount or par value of any of the outstanding securities of the Company, then in such event any and all new, substituted or additional securities to which a Holder is entitled by reason of
such Holder’s ownership of Equity Securities shall be immediately subject to the rights and obligations set forth in this Agreement with the same force and effect as the share subject to such rights immediately before such event. 

  
 7 

 5. Additional Ordinary Holders. In the event that after the date of
this Agreement, the Company issues Ordinary Shares, or options to purchase Ordinary Shares, to any employee, consultant, executive or any third party that will hold at least one percent (1%) of the issued and outstanding Ordinary Shares of the
Company following such issuance, the Company shall, as a condition to such issuance, cause such employee, consultant, executive or applicable third party to execute a counterpart signature page hereto as an Ordinary Holder, and such person shall
thereby be bound by, and subject to, all the terms and provisions of this Agreement applicable to an Ordinary Holder. 
 6. Notices. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed effectively given: (i) upon personal delivery to the party to be
notified, (ii) when sent by confirmed electronic mail if sent during normal business hours of the recipient, and if not, then on the next Business Day, (iii) when sent by facsimile at the number shown below the signature of each Party on
the signature page of this Agreement, upon receipt of confirmation of error-free transmission, or (iv) three (3) Business Days after deposit with an international reputable overnight delivery service, postage prepaid, sent to the address
shown below the signature of each Party on the signature page of this Agreement (or at such other addresses as shall be specified by notice given in accordance with this Section 6), with next- or second-business-day delivery guaranteed,
provided that the sending Party receives a confirmation of delivery from the delivery service provider. The occurrence of the events set forth in clauses (i) to (iv) above shall constitute “Delivery” of notice. 

7. Further Instruments and Actions. Upon the terms and subject to the conditions herein, each of the Parties
hereto agrees to use its reasonable best efforts to take or cause to be taken all action, to do or cause to be done, to execute such further instruments, and to assist and cooperate with the other Parties hereto in doing, all things necessary,
proper or advisable under applicable laws or otherwise to consummate and make effective, in the most expeditious manner practicable, the transactions contemplated by this Agreement and, to the extent reasonably requested by another Party, to enforce
rights and obligations pursuant hereto 
 8. Term. This Agreement shall terminate and be of no further
force or effect upon the consummation of a Qualified IPO or, following any Liquidation Event (as such term is defined in Section 10(A)(2) of the Company’s Amended and Restated Memorandum of Association (the “Amended
Memorandum”), the date on which all monies or other assets distributable to all holders of Series A Preferred have been distributed in full in compliance with all provisions set forth in Section 10(A)(2) of the Amended Memorandum.

 9. Entire Agreement. This Agreement contains the entire understanding of the Parties hereto with
respect to the subject matter hereof and supersedes all other agreements between or among any of the Parties with respect to the subject matter hereof. 
 10. Governing Law and Dispute Resolutions. 
 (a) This
Agreement shall be governed by and construed under the laws of the State of New York as applied to agreements among New York residents entered into and to be performed entirely within New York, without regard to principles of conflict of laws
thereunder. 
 (b) Each of the Parties hereto irrevocably (i) agrees that any dispute or controversy
arising out of, relating to, or concerning any interpretation, construction, performance or breach of this Agreement, shall be settled by arbitration to be held in Hong Kong under the UNCITRAL Arbitration Rules in accordance with the HKIAC
Procedures for the Administration of International Arbitration in force at the date of this Agreement (the “Arbitration Rules”), (ii) waives, to the fullest extent it may effectively do so, any objection which it may now or
hereafter have to the laying of venue of any such arbitration, and (iii) submits to the exclusive jurisdiction of Hong Kong in any such arbitration. There shall be one (1) arbitrator, selected in accordance with the Arbitration Rules. The
decision of the arbitrator shall be final, conclusive and binding on the parties to the arbitration. Judgment may be entered on the arbitrator’s decision in any court having jurisdiction. The parties to the arbitration shall each pay an equal
share of the costs and expenses of such arbitration, and each party shall separately pay for its respective counsel fees and expenses. 

  
 8 

 (c) In the event of two or more arbitrations having been commenced under
this Agreement, the tribunal in the arbitration first filed (the “Principal Tribunal”) may in its sole discretion, upon the application of any party to the arbitrations, order that the proceedings be consolidated before the
Principal Tribunal, which will have the jurisdiction to resolve all disputes forming part of the consolidation order, if (i) there are issues of fact and/or law common to the arbitrations, (ii) the interests of justice and efficiency would
be served by such a consolidation, and (iii) no prejudice would be caused to any party in any material respect as a result of such consolidation, whether through undue delay or otherwise. Such application shall be made as soon as practicable
and the party making such application shall give notice to the other parties to the arbitrations. 
 11.
Amendments and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) only with the written
consent of the Company, holders of a majority of the Ordinary Shares voting as a separate class, and each holder of Series A Preferred. Any amendment or waiver effected in accordance with this paragraph shall be binding upon the Company and all
Holders and their respective successors and assigns. 
 12. Severability. If one or more provisions of
this Agreement is held to be unenforceable under applicable law, such provision shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance
with its terms. 
 13. Attorney’s Fees. In the event that any dispute among the Parties to this
Agreement should result in litigation, the prevailing party in such dispute shall be entitled to recover from the losing party all fees, costs and expenses of enforcing any right of such prevailing party under or with respect to this Agreement,
including without limitation, such reasonable fees and expenses of attorneys and accountants, which shall include, without limitation, all fees, costs and expenses of appeals. 

14. Specific Performance. The Parties hereto acknowledge that, in view of the transactions contemplated by this
Agreement, each Party would not have an adequate remedy at law for money damages in the event that this Agreement has not been performed in accordance with its terms, and therefore agrees that the non-breaching Parties shall be entitled to specific
enforcement of the terms hereof in addition to any other remedy to which such non-breaching Parties may be entitled at law or in equity. 
 15. No Waiver. Failure to insist upon strict compliance with any of the terms, covenants, or conditions hereof will not be deemed a waiver of such term, covenant, or condition, nor will any waiver
or relinquishment of, or failure to insist upon strict compliance with, any right, power or remedy hereunder at any one or more times be deemed a waiver or relinquishment of such right, power or remedy at any other time or times 

  
 9 

 16. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

[SIGNATURE PAGES FOLLOW] 

  
 10 

 IN WITNESS WHEREOF, the parties hereto have executed this Right of
First Refusal and Co Sale Agreement as of the date first written above. 
  

			
	COMPANY:
	
	SOGOU INC.
		
	 By:
	 	  

	 Name: Carol Yu

	 Title: Co-President and Chief Financial Officer

	
	 Address:

	 c/o Sohu.com Inc.

	 Level 12, Sohu.com Internet Plaza

	 No. 1 Unit Zhongguancun East Road, Haidian District

	 Beijing 100084

	 People’s Republic of China

  
 SIGNATURE
PAGE TO RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT 

 
			
	INVESTORS:
	
	ALIBABA INVESTMENT LIMITED

			
		
	 By:
	 	  

			
		
	 Name:
	 	
	 Title:
	 	

			
		
	 Address:
	 	  

	
	CHINA WEB SEARCH (HK) LIMITED

			
		
	 By:
	 	  

			
		
	 Name:
	 	
	 Title:
	 	

			
		
	 Address:
	 	  

	
	PHOTON GROUP LIMITED

			
		
	 By:
	 	  

			
		
	 Name:
	 	
	 Title:
	 	

			
		
	 Address:
	 	  

  
 SIGNATURE
PAGE TO RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT 

 
			
	ORDINARY HOLDERS:
	
	SOHU.COM (SEARCH) LIMITED
		
	 By:
	 	  

	 Name: Carol Yu

	 Title: Co-President and Chief Financial Officer

	
	 Address:

	 Level 12, Sohu.com Internet Plaza

	 No. 1 Unit Zhongguancun East Road, Haidian District

	 Beijing 100084

	 People’s Republic of China

  
 SIGNATURE
PAGE TO RIGHT OF FIRST REFUSAL AND CO-SALE AGREEMENT 

 EXHIBIT A 
 Schedule of Ordinary Holders 
  

					
	 Ordinary Holder
	  	Ordinary Shares	 
		
	 Sohu.com (Search) Limited
	  	 	136,000,000	  
		
	 TOTAL
	  	 	136,000,000	  

 EXHIBIT B 
 Schedule of Investors 
  

					
	 Investor
	  	Series A Preferred	 
		
	 Alibaba Investment Limited
	  	 	24,000,000	  
		
	 China Web Search (HK) Limited
	  	 	14,400,000	  
		
	 Photon Group Limited
	  	 	38,400,000	  
		
	 TOTAL
	  	 	76,800,000Share Incentive Plan

 Exhibit 10.42 
 SOGOU INC. 
 2010 SHARE INCENTIVE PLAN 

 

	1.	 Purposes of this Plan 

 This 2010 Share Incentive Plan (this “Plan”) is intended to provide incentives: (a) to the directors, officers, employees, consultants and advisors of Sogou Inc., a company incorporated
under the laws of the Cayman Islands (the “Company”), and any present or future parents or subsidiaries or variable interest entities (“VIEs”) of the Company by providing them with opportunities to (i) acquire Ordinary
Shares of the Company pursuant to options (“Options”) granted hereunder, (ii) to receive Restricted Share Unit awards (“RSU”), and (iii) to make direct purchases of Ordinary Shares of the Company, subject to vesting
(“Restricted Shares”). In addition to Options, RSUs, and Restricted Shares, other Awards involving Ordinary Shares and other Awards that are valued in whole or in part by reference to, or are otherwise based upon or settled in, Ordinary
Shares, including (without limitation) unrestricted Shares, performance units, share appreciation rights, dividend equivalents, and convertible debentures, may be granted or sold under this Plan. 

 

	2.	 Definitions 

 “Applicable Laws” means laws of the Company’s jurisdictions of incorporation and operation and requirements relating to the granting or sale of equity incentives and the administration of
equity share incentive plans under the laws of any country or other jurisdiction where Awards are issued or sold under this Plan, and under the rules of any securities exchange on which the Company’s Ordinary Shares are listed, including,
without limitation, the reporting and registration requirements under Circular 75 issued by SAFE on October 21, 2005, as supplemented from time to time, and any other applicable SAFE rules and regulations. 

“Award” means an Option, RSU, Restricted Share, or other share-based award or right granted or sold pursuant to
the terms of this Plan. 
 “Award Agreement” means a written or electronic document or agreement
setting forth the terms and conditions of a specific Award. 
 “Board” means the Board of Directors of
the Company. 
 “Compensation Committee” means the full Board or a Compensation Committee
appointed by the Board, which Compensation Committee will be constituted to comply with Applicable Laws and which will administer this Plan in accordance with Section 4 below. 

“Company” means Sogou Inc., a company incorporated under the laws of the Cayman Islands. 

“Consultant” means any person who is engaged by the Company or any Parent or Subsidiary or VIE to render
consulting or advisory services to such entity, but is not an employee of the Company or any Parent or Subsidiary or VIE. 
 “Director” means a member of the Board. 

“Disability” means any total and permanent disability which prevents a Service Provider from continuing in such
capacity. 

 “Employee” means any person employed by the Company or any Parent
or Subsidiary or VIE of the Company. A person will not cease to be an Employee solely by virtue of also being a Director of the Company. A Service Provider will not cease to be an Employee in the case of: 

(i) any leave of absence approved by the Company; or 

(ii) transfers between locations of the Company or between the Company, any Parent, any Subsidiary, any VIE, or any
successor to the Company or any Parent, Subsidiary, or VIE. 
 “Exchange” means NASDAQ, the New
York Stock Exchange or any other internationally recognized stock exchange of similar prestige and liquidity. 

“Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended and in effect on any given date.

 “Fair Market Value” as of any given date means, unless otherwise defined in an Award Agreement, if
the Ordinary Shares are listed on an Exchange, the closing price for the Ordinary Shares on such exchange, or if Shares were not traded on such exchange on such given date, then on the next preceding date on which Shares were traded, all as reported
in The Wall Street Journal or such other resource as the Compensation Committee deems reliable. If the Ordinary Shares are listed on an Exchange, in the event that an Award is granted on any given date prior to the time that trading has ended on the
applicable exchange on such date, Fair Market Value may be determined as of the date preceding such grant. If the Ordinary Shares are not listed on an Exchange, Fair Market Value shall be determined by the Compensation Committee in its good faith
discretion, using such methods of appraisal and valuation as it deems appropriate, including without limitation the Fair Market Value of any class of Ordinary Shares of the Company, with economic rights comparable to those of the applicable class,
that is listed on an Exchange. 
 “Holder” means the holder of an outstanding Award granted or
issued under this Plan. 
 “Memorandum and Articles of Association” means the Amended and
Restated Memorandum and Articles of Association of the Company, as amended and effective from time to time. 

“Option” means an option granted pursuant to this Plan to purchase Ordinary Shares. 

“Ordinary Shares” means the Ordinary Shares in the capital of the Company, having the rights, restrictions,
privileges and preferences set forth in the Memorandum and Articles of Association of the Company. 

“Outside Director” means a member of the Board who is not an Employee or Consultant. 

“Parent” means any entity which holds directly or indirectly more than fifty percent of the voting equity of
the Company. 
 “Plan” means this 2010 Share Incentive Plan, as amended from time to time.

 “Restricted Share” means an Ordinary Share issued subject to forfeiture or repurchase by the
Company until vested. 
 “Restricted Share Unit” or “RSU” means a grant of a hypothetical
number of Ordinary Shares, to be settled upon vesting in either Ordinary Shares or cash, as determined by the Compensation Committee. 
 “Service Provider” means an Employee, Director, or Consultant. 
 “Share” means an Ordinary Share. 

  
 2 

 “Subsidiary” means any entity in which the Company holds directly
or indirectly more than fifty percent of the voting equity. 
 “Tax Law” means the relevant tax
legislation of an applicable jurisdiction, as amended from time to time and in effect on any given date. 

“Underlying Shares” means the Ordinary Shares subject to Options or issuable upon vesting and settlement
of RSUs. 
 “U.S. Incentive Stock Options” means Options intended to qualify as incentive stock
options within the meaning of Section 422 of the U.S. Internal Revenue Code. 
 “U.S. Internal Revenue
Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time and in effect on any given date. 
 “U.S. Non-Qualified Stock Option” means an Option not intended to qualify as a U.S. Incentive Stock Option. 

“VIE” means a variable interest entity of the Company. 

Except where otherwise indicated by the context, the masculine gender will include the feminine gender, and the
definition of any term herein in the singular also will include the plural. 
  

	3.	 Shares Subject to this Plan 

 (a) Number of Shares Available 

Subject to the provisions of Section 3(b) and Section 10 of this Plan, the maximum number of Ordinary Shares
that may be subject to Awards granted and sold under this Plan is 24,000,000. At all times during the term of this Plan and while any Awards are outstanding, the Company will retain as authorized and/or unissued Ordinary Shares at least the number
of Shares from time to time required under the provisions of this Plan, or otherwise assure itself of its ability to perform its obligations hereunder. 
 (b) Treatment of Expired, Unvested Shares 
 If an Award which expires or terminates for any reason or becomes unexercisable without having been exercised or settled in full in Ordinary Shares, the unpurchased Shares that were subject thereto or
RSUs which have not been settled will become available for future grant or sale under this Plan. Shares that have actually been issued under this Plan will not be returned to this Plan and will not become available for future distribution under this
Plan, except that if Restricted Shares are repurchased by the Company at their original purchase price and cancelled, such Shares will become available for future grant under this Plan. 

 

	4.	 Administration of this Plan 

 (a) Compensation Committee 
 This Plan
will be administered by the Compensation Committee. If the Company has any class of equity security registered under Section 12 of the Exchange Act, and the Company is not a “foreign private issuer” as that term is defined in
Rule 3b-4 under the Exchange Act, with the result that the Company’s executive officers and directors become subject to Section 16 of the Exchange Act, this Plan generally will be administered so as to cause transactions in securities
issued or to be issued under this Plan to be afforded the exemptions from Section 16(b) of the Exchange Act provided by Rule 16b-3 under the Exchange Act or any similar successor statute or rules. 

  
 3 

 (b) Powers of the Compensation Committee 

Subject to the provisions of this Plan and, in the case of the Compensation Committee, the specific duties delegated by
the Board to the Compensation Committee, and subject to the approval of any relevant authorities, the Compensation Committee will have the authority in its discretion: 

(i) to determine the Fair Market Value; 

(ii) to determine the types of Awards to be granted. 

(iii) to select the Service Providers to whom Awards may from time to time be made; 

(iv) to determine the number of Shares or RSUs to be covered by each Award granted; 

(v) to approve forms of Award Agreement; 

(vi) to determine the terms and conditions of any Award, including whether the vesting of Awards will be time-based,
performance-based, milestone-based, or otherwise. Such terms and conditions include, but are not limited to, the exercise price, the time or times when Options may be exercised (which may be based on performance criteria), any vesting acceleration
or waiver of restrictions, and any restriction or limitation regarding any Award or Shares relating thereto, based in each case on such factors as the Compensation Committee may determine; provided, that in no event may any Option or comparable
Award granted under this Plan be amended, other than pursuant to Section 10, to decrease the exercise price thereof or otherwise be subject to any action that would be treated, for accounting purposes, as a “repricing” of such Option,
unless such amendment, cancellation, or action is approved by the Company’s shareholders; 
 (vii) to
determine whether and under what circumstances an RSU may be settled in cash instead of Ordinary Shares; 

(viii) to prescribe and amend provisions relating to this Plan, including provisions relating to sub-plans established
for the purpose of qualifying for preferred tax treatment under applicable Tax Law; 
 (ix) to allow
holders of Options or other Awards to satisfy withholding tax obligations by electing to have the Company withhold from the Shares to be issued upon exercise of an Option or other Award that number of Shares having a Fair Market Value equal to the
amount required to be withheld. The Fair Market Value of the Shares to be withheld will be determined on the date that the amount of tax to be withheld is to be determined. All elections by Holders to have Shares withheld for this purpose will be
made in such form and under such conditions as the Compensation Committee may deem necessary or advisable; and 

(x) to construe and interpret the terms of this Plan and Awards granted pursuant to this Plan. 

(c) Effect of Compensation Committee’s Decisions 

All decisions, determinations and interpretations of the Compensation Committee under this Plan will be final and binding
on all recipients and, if applicable, transferees of Awards under this Plan. 
  

	5.	 Eligibility 

 (a) Service Providers 
 Awards may be
granted to Service Providers; provided, however, that U.S. Incentive Stock Options may be granted only to Employees of the Company, a Parent, a Subsidiary or a VIE and generally will be granted only to persons who are, or are expected to be, subject
to tax on income under the U.S. Internal Revenue Code. 

  
 4 

 (b) No Right to Continued Employment 

Neither this Plan nor any Award will confer upon any recipient or other holder of an Award any right with respect to
continuing such recipient’s or holder’s relationship as a Service Provider with the Company, nor will it interfere in any way with his or her right or the Company’s right to terminate such relationship at any time, with or without
cause. 
  

	6.	 Term of Options and RSUs 

 The term of each Option, RSU or other Award will be stated in the Award Agreement. Notwithstanding the foregoing, with respect to U.S. Incentive Stock Options the term will be no more than ten
(10) years from the date of grant thereof and with respect to U.S. Incentive Stock Options granted to a Holder who, at the time the Option is granted, owns shares representing more than ten percent of the voting power of all classes of shares
of the Company or any Parent or Subsidiary or VIE, the term of such U.S. Incentive Stock Option will be five (5) years from the date of grant thereof or such shorter term as may be provided in the Award Agreement. 

 

	7.	 Option Exercise Price, Restricted Share Purchase Price, and Form of Consideration 

(a) Exercise Price of Options and Purchase Price of Restricted Shares 

The exercise price for Shares to be issued upon exercise of an Option and the purchase price of Restricted Shares will be
such price as is determined by the Compensation Committee, provided that with respect to a U.S. Incentive Stock Option, the exercise price for Shares to be issued upon exercise of such option will not be less than the Fair Market Value on the date
of grant or issue. With respect to a U.S. Incentive Stock Option granted to an person who, at the time the U.S. Incentive Stock Option is granted, owns shares representing more than ten percent of the voting power of all classes of shares of
the Company or any Parent or Subsidiary, the per Share exercise price will not be less than one hundred ten percent (110%) of the Fair Market Value per Share on the date of grant. 

(b) Form of Consideration 

The consideration to be paid for Shares to be issued upon exercise of an Option and for Restricted Shares, including the
method of payment, will be determined by the Compensation Committee. Such consideration may consist of: 

(i) cash, 
 (ii) check payable to the order of the Company, 
 (iii)
promissory note; provided, however, that consideration in the form of a promissory note will not be acceptable if it would constitute a personal loan to an executive officer or director of the Company prohibited by Section 402 of the U.S.
Sarbanes-Oxley Act of 2002, 
 (iv) other Shares which (x) have been owned by the grantee for
more than six (6) months on the date of surrender, and (y) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which such Option is exercised or the aggregate purchase price of
Restricted Shares being purchased, 
 (v) consideration received by the Company for the exercise of Options
under a cashless exercise program implemented or approved by the Company in connection with this Plan, or 

(vi) any combination of the foregoing methods of payment. 

In making its determination as to the type of consideration to accept, the Compensation Committee will consider if
acceptance of such consideration may be reasonably expected to benefit the Company. 

  
 5 

	8.	 Vesting of Awards 

 (a) Vesting Generally 
 Any Options
granted hereunder will become vested and exercisable, any RSUs granted hereunder will vest and be settled, and any Restricted Shares issued hereunder will vest and no longer be subject to forfeiture, according to the terms hereof at such times and
under such conditions as determined by the Compensation Committee and set forth in the Award Agreement. Except in the case of an Award granted to Outside Directors and Consultants, unless the Compensation Committee determines otherwise, subject to
approval of the full Board, as set forth in the Award Agreement, Options will vest and become exercisable, RSUs will vest and be settled, Restricted Shares will vest and no longer be subject to forfeiture, and other Awards will vest, in four equal
annual installments beginning on the first anniversary of the date of grant or issuance of the Award or of such other vesting commencement date prior to the date of grant or issuance of the Award as specified by the Compensation Committee in its
sole discretion. 
 (b) Settlement of RSUs 

RSUs that will be settled upon vesting, subject to the terms of the Award Agreement, either by delivery to the holder of
the number of Shares that equals the number of RSUs that then become vested or by the payment to the holder of cash equal to the then Fair Market Value of that number of Shares. It is contemplated that in most cases the Award Agreement will specify
that settlement will be made in Shares rather than in cash. 
 (c) Exercise of Options

 An Option will be deemed exercised when the Company receives: 

(i) written or electronic notice of exercise (in accordance with the Award Agreement) from the person entitled to
exercise the Option, and 
 (ii) full payment for the Shares with respect to which the Option is exercised.

 Full payment may consist of any consideration and method of payment authorized by the Compensation Committee
and permitted by the Award Agreement and this Plan. Shares issued upon exercise of an Option will be issued in the name of the Holder or, if requested by the Holder, in the name of the Holder and his or her spouse. Until the Shares are issued (as
evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a shareholder will exist with respect to the Shares, notwithstanding
the exercise of the Option. The Company will issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are
issued, except as provided in Section 10 below. 
 Exercise of an Option in any manner will result in a
decrease in the number of Shares thereafter available, both for purposes of this Plan and for sale under the Option, by the number of Shares as to which the Option is exercised. 

To the extent the aggregate Fair Market Value of Shares subject to U.S. Incentive Stock Options which become exercisable
for the first time by a Holder during any calendar year (under all plans of the Company or any Parent or Subsidiary or VIE) exceeds $100,000, such excess Options, to the extent of the Shares covered thereby in excess of the foregoing limitation,
will be treated as Non-Qualified Stock Options. For this purpose, U.S. Incentive Stock Options will be taken into account in the order in which they were granted, and the Fair Market Value of the Shares will be determined as of the grant date of the
relevant Option. 

  
 6 

 (d) Termination of Relationship as Service Provider of Holder of Options

 If a Holder of Options ceases to be a Service Provider, such Holder may exercise his or her Options
within such period of time as is specified in the Award Agreement to the extent that the Options are vested on the date of termination (but in no event later than the expiration of the term of the Options as set forth in the Award Agreement). In the
absence of a specified time in the Award Agreement, the Options will remain exercisable for three (3) months following the Holder’s termination. If, on the date of termination, the Holder is not vested as to his or her entire Option, the
Shares covered by the unvested portion of the Options will revert to this Plan. If, after termination, the Holder does not exercise his or her Options within the time specified by the Compensation Committee, the Options will terminate, and the
Shares covered by such Options will revert to this Plan. 
 Notwithstanding the foregoing, if employment or
services of a Holder of Options are terminated by the Company or any Parent, Subsidiary or VIE of the Company for Cause (as defined below), the Option (whether vested or not) shall terminate on the date of termination of employment or services.

 For purposes of the Option, “Cause” means that the Holder: 

(1) has been negligent in the discharge of his or her duties to the Company or any Parent, Subsidiary or VIE of the
Company, has refused to perform stated or assigned duties or is incompetent in or (other than by reason of a disability or analogous condition) incapable of performing those duties; 

(2) has been dishonest or committed or engaged in an act of theft, embezzlement or fraud, a breach of
confidentiality, an unauthorized disclosure or use of inside information, customer lists, trade secrets or other confidential information; has breached a fiduciary duty, or willfully and materially violated any other duty, law, rule, regulation or
policy of the Company or any Parent, Subsidiary or VIE of the Company; or has been convicted of a felony or misdemeanor (other than minor traffic violations or similar offenses); 

(3) has materially breached any of the provisions of any agreement with the Company or any Parent, Subsidiary or VIE
of the Company; or 
 (4) has engaged in unfair competition with, or otherwise acted intentionally in a
manner injurious to the reputation, business or assets of, the Company or any Parent, Subsidiary or VIE of the Company; has improperly induced a vendor or customer to break or terminate any contract with the Company or any Parent, Subsidiary or VIE
of the Company; or has induced a principal for whom the Company or any Parent, Subsidiary or VIE of the Company acts as agent to terminate such agency relationship. 
 (e) Disability of Holder of Options 

If a Holder of Options ceases to be a Service Provider as a result of the Holder’s Disability, the Holder may
exercise his or her Options within such period of time as is specified in the Award Agreement to the extent the Options are vested on the date of termination (but in no event later than the expiration of the term of such Options as set forth in the
Award Agreement). In the absence of a specified time in the Award Agreement, the Options will remain exercisable for twelve (12) months following the Holder’s termination. 

If the Disability is not a “disability” as such term is defined in Section 22(e)(3) of the U.S. Internal
Revenue Code, in the case of U.S. Incentive Stock Options, such U.S. Incentive Stock Options will automatically convert to U.S. Non-Qualified Stock Options on the day three (3) months and one day following the date such Holder ceased to be a
Service Provider as a result of the Holder’s Disability. If, on the date of termination, the Holder is not vested as to all of his Options, the Shares covered by the unvested Options will revert to this Plan. If, after termination, the Holder
does not exercise his or her Options within the time specified herein, the Options will terminate, and the Shares covered by such Options will revert to this Plan. 

  
 7 

 (f) Death of Holder of Options or RSUs 

If a Holder of Options dies while a Service Provider, the Options may be exercised within such period of time as is
specified in the Award Agreement to the extent that the Options are vested on the date of death (but in no event later than the expiration of the term of such Options as set forth in the Award Agreement) by the Holder’s estate or by a person
who acquires the right to exercise the Options by bequest or inheritance. In the absence of a specified time in the Award Agreement, the Options will remain exercisable for twelve (12) months following the Holder’s termination. If, at the
time of death, the Holder is not vested as to all of his or her Options, the Shares covered by the unvested Options will immediately revert to this Plan. If the Options are not so exercised within the time specified herein, the Options will
terminate, and the Shares covered by such Options will revert to this Plan. 
 (g) Buyout Provisions

 The Compensation Committee may at any time offer to buy out any Awards previously granted for a
payment in cash or Shares, based on such terms and conditions as the Compensation Committee may establish. 
  

	9.	 Awards 

 (a) Rights to Receive or Purchase 

Awards may be issued either alone, in addition to, or in tandem with other Awards granted under this Plan and/or cash
awards made outside of this Plan. After the Compensation Committee determines that it will offer Awards under this Plan, it will advise the offeree in writing or electronically of the terms, conditions and restrictions related to the offer,
including the number of Shares that such person will be entitled to receive or purchase, the price to be paid, if any, and the time within which such person must accept such offer. 

(b) Repurchase Option; Forfeiture of Non-vested Shares 

Unless the Compensation Committee determines otherwise, the Award Agreement will grant the Company a repurchase option
exercisable upon the voluntary or involuntary termination of the Holder’s service with the Company for any reason (including death or Disability) in the event that the Holder purchased or otherwise received Shares under the Award Agreement and
such Shares are non-vested. The purchase price for Shares repurchased pursuant to the Award Agreement will be the original price paid by the Holder and may be paid, at the Compensation Committee’s option, by cancellation of any indebtedness of
the Holder to the Company. The repurchase option will lapse at such rate as the Compensation Committee may determine. Except with respect to Shares purchased by Outside Directors and Consultants, unless set forth expressly in the Award Agreement,
the repurchase option will in no case lapse at a rate of less than twenty-five percent per year over four years from the date of receipt or purchase. Unless the Compensation Committee determines otherwise, the Award Agreement will provide for the
forfeiture of the non-vested Shares underlying an Award upon the voluntary or involuntary termination of the Holder’s service with the Company for any reason (including death or Disability). 

(c) Other Provisions 
 The Award Agreement will contain such other terms, provisions and conditions not inconsistent with this Plan as may be determined by the Compensation Committee in its sole discretion. 

  
 8 

 (d) Rights as a Shareholder 

Once an Award is exercised, the Holder will have rights equivalent to those of a shareholder and will be a shareholder
when his or her purchase is entered upon the records of the duly authorized transfer agent of the Company. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Award is exercised, except as
provided in Section 10 below. 
  

	10.	 Adjustments Upon Changes in Capitalization or Asset Sale 

(a) Changes in Capitalization 

Subject to any required action by the shareholders of the Company, the number of Shares covered by each outstanding Award,
and the number of Shares which have been authorized for issuance under this Plan but as to which Awards have yet been granted or which have been returned to this Plan upon cancellation or expiration of an Award, as well as the price per Share
covered by each such outstanding Award, will be proportionately adjusted for any increase or decrease in the number of issued Shares resulting from a reclassification of the Shares, or any other increase or decrease in the number of issued Shares
effected without receipt of consideration by the Company. The conversion of any convertible securities of the Company will not be deemed to have been “effected without receipt of consideration.” Such adjustment will be made by the
Compensation Committee, whose determination in that respect will be final and binding. Except as expressly provided herein, no issuance by the Company of equity shares of any class, or securities convertible into equity shares of any class, will
affect, and no adjustment by reason thereof will be made with respect to, the number or price of Shares subject to an Award. 
 (b) Adjustments for Share Splits and Share Dividends 
 If the Company at any time increases or decreases the number of its outstanding Shares, or changes in any way the rights and privileges of such Shares by means of the payment of a share dividend or any
other distribution upon such Shares, or through a share split, subdivision, consolidation, combination, reclassification or recapitalization involving the Shares, then in relation to the Shares that are affected by one or more of the above events,
the numbers, rights and privileges of the following will be increased, decreased or changed in like manner as if such Shares had been issued and outstanding, fully paid and nonassessable at the time of such occurrence: (i) the number of
Shares as to which Awards may be made under this Plan: and (ii) the Shares included in each outstanding Award made hereunder. 
 (c) Dissolution or Liquidation 
 In the
event of the proposed dissolution or liquidation of the Company, the Compensation Committee will notify each Holder as soon as practicable prior to the effective date of such proposed transaction. The Compensation Committee in its discretion may
provide for a Holder to have the right to exercise his or her Options until fifteen (15) days prior to such transaction as to all of the Underlying Shares covered thereby, including Shares as to which the Options would not otherwise be
exercisable. In addition, the Compensation Committee may provide that any Company repurchase option applicable to any Shares purchased pursuant to an Award will lapse as to all such Shares, provided the proposed dissolution or liquidation takes
place at the time and in the manner contemplated. To the extent it has not been previously exercised, an Award will terminate immediately prior to the consummation of such proposed action. 

  
 9 

 (d) Consolidation or Asset Sale 

If the Company is to be consolidated with or acquired by another person or entity in a sale of all or substantially all of
the Company’s assets or stock or otherwise (an “Acquisition”), the committee or the board of directors of any entity assuming the obligations of the Company hereunder (the “Successor Board”) may in its sole discretion, take
one or more of the following actions with respect to outstanding Options, Shares acquired upon exercise of any Option, outstanding RSUs, or unvested Restricted Shares: (i) make appropriate provision for the continuation of such Awards by
substituting on an equitable basis for the Underlying Shares the consideration payable with respect to the outstanding Shares in connection with the Acquisition; (ii) accelerate the date of exercise of such Options, vesting and settlement of
RSUs, or vesting of Restricted Shares, or of any installment of any such Options, RSUs or Restricted Shares; (iii) upon written notice to the participants, provide that all Options must be exercised, to the extent then exercisable, within a
specified number of days of the date of such notice, at the end of which period the Options, including those which are not then exercisable, shall terminate; (iv) terminate all Options or RSUs in exchange for a cash payment equal to the excess
of the fair market value of the shares subject to such Options or RSUs (to the extent then exercisable) over the exercise price thereof (if any); or (v) in the event of a Share sale, require that the participant sell to the purchaser to
whom such Shares sale is to be made, all Shares previously issued to such participant upon exercise of any Option, pursuant to any RSU, or as Restricted Shares at a price equal to the portion of the net consideration from such sale which is
attributable to such Shares. Nothing contained herein will be deemed to require the Company to take, or refrain from taking, any one or more of the foregoing actions. 
 (e) No Fractional Shares 
 If any
adjustment or substitution provided for in this Section 10 results in the creation of a fractional Share under any Option, the Company will, in lieu of issuing such fractional Share, pay to the Holder a cash sum in the amount equal to the
product of such fraction multiplied by the Fair Market Value of a Share on the date the fractional Share otherwise would have been issued. 
 (f) Determination by the Compensation Committee 
 Adjustments under this Section 10 will be made by the Compensation Committee whose determinations with regard thereto will be final and binding upon all parties. 

 

	11.	 Time of Granting of Award 

 The date of grant of an Award will be the date on which the Compensation Committee approves the grant of such Award, or such other date as is determined by the Compensation Committee; provided that such
other date will not be prior to the date of the Compensation Committee’s approval of the grant of such Award; provided, further, that the foregoing will not prohibit the Compensation Committee from determining, in its discretion, to specify a
vesting commencement date prior to the date of the grant; and provided, further, that no grant of an Award will be binding upon the Company until it has been communicated to the Service Provider. Notice of the determination will be given to each
Service Provider to whom an Award is so granted within a reasonable time after the date of such grant. 
  

	12.	 Non-Transferability of Awards 

Awards may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than as provided
in the Award Agreement, this Plan, by will or by the laws of succession and may be exercised, during the lifetime of the Holder, only by the Holder. 
  

	13.	 Conditions Regarding Issuance of Shares 

 (a) Legal Compliance 
 Shares will not
be issued pursuant to the exercise of Options, the settlement of RSUs, or the purchase of Restricted Shares unless the issuance and delivery of such Shares will comply with Applicable Laws, and the issuance of Shares will be subject to confirmation
from legal counsel for the Company as to such compliance. 

  
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 (b) Investment Representations 

The Compensation Committee may require the person receiving Shares upon exercise of Options, settlement of RSUs, or
purchase of Restricted Shares to represent and warrant, as a condition to such receipt, that the Shares are being purchased only for investment and not with a view to the distribution of such Shares. 

(c) Inability to Obtain Authority 

The inability of the Company to obtain authority from any regulatory body having jurisdiction will relieve the Company of
any liability in respect of the failure to issue or sell such Shares as to which such requisite authority has not been obtained. 
 (d) Withholding 
 The Company’s
obligations to deliver Shares upon the exercise of an Award will be subject to the Holder’s satisfaction of all applicable Tax Law, including withholding requirements, of all applicable jurisdictions. 

 

	14.	 Amendment and Termination of this Plan 

 (a) Amendment and Termination 
 The
Board may at any time amend, suspend or terminate this Plan. 
 (b) Shareholder Approval

 The Board will obtain shareholder approval of any Plan amendment to the extent necessary or desirable
to comply with Applicable Laws. 
 (c) Effect of Amendment or Termination 

Except as may be required by Applicable Law, no amendment, suspension or termination of this Plan will impair the rights
of any Holder, unless agreed otherwise in writing between the Holder and the Compensation Committee. Termination of this Plan will not affect the Compensation Committee’s ability to exercise the powers granted to it hereunder with respect to
Awards granted under this Plan prior to the date of such termination. 
  

	15.	 Effectiveness and Term of Plan 

This Plan will become effective upon its adoption by the Board and approval by the Company’s shareholders. It will
continue in effect, with regard to the making of Awards, for a term of ten (10) years unless sooner terminated under Section 14 above and with regard to the terms of an Award Agreement, for such longer term as may be required to give
effect to that Award Agreement for a term of ten (10) years unless sooner terminated under Section 14 above. 
  

	 	•	 	 Approved and adopted by the Board of Directors on October 20, 2010. 

 

	 	•	 	 Approved and adopted by the Company’s shareholders on October 20, 2010. 

  
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