EFTA01116253.pdf

DRAFT: 02.02.2012 CMHAJJXC JOINT VENTURE LETTER (••) JanuaryFebruary 2012 From: I.W.Osborne (HK) Limited of 4603-4609, 46th Floor, Jardine House, One Connaught Place, Central, Hong Kong with registration number 1581594 Tocidaseb-iiturda-Investment-Vehisiefef-H Tn. Argosophia GmbH of Schackstrasse 1, 80539 Munich Germany with registration number 11)8c o94HRB 196266 each being a "Party" and together being the "Parties" This letter sets out the arrangements between the Parties in the event of death or incapacity of either Ian Osborne or Jacob Burda (each being a "Director" and together being the "Directors") or a deadlock situation (as defined below) in respect of Hedosophia Alpha Limited (the "Company"). 1. Death: In the event of the death of one of the Directors, each Party agrees that: (A) the voting interest, in respect of the ordinary shares in the Company ('ordinary shares") held by the party connected with the deceased Director (the "Deceased Director Party"), will be exercisable by or on behalf of the other Party and will not be exercisable by or on behalf of any other person, including, but not limited to, the estate of the Deceased Director Party; and (B) the ownership (including the economic interest) of the ordinary shares held by the Deceased Director Party, will otherwise remain with the deceased Director Party. 2. Incapacity: In the event of the incapacity of one of the Directors to carry out his responsibilities as shareholder or, as the case may be, director of the Company, each Party agrees that: (A) the voting interest, in respect of the ordinary shares in the Company held by party connected to the incapacitated Director (the "Incapacitated Director Party"), will be exercisable by or on behalf of the other Party and will not be exercisable by or on behalf of any other person; and (B) the ownership (including the economic interest), of the ordinary shares held by the Incapacitated Director Party will otherwise remain with such Incapacitated Director Party. Incapacity of a Director shall mean that Director being certified by a registered medical practitioner who is treating such Director who gives a written opinion stating that such Incapacitated Director Party has become physically or mentally incapable of acting as a shareholder or director of the Company and may remain so for more than three months. 3. Deadlock: (A) In the event that a proposal is made by one Party or Director at either a shareholders' meeting or board meeting of the Company to which the other Party or Director does not agree within {71 days of such proposal being made (in each case being a -deadlock situation"), the Parties agree to use all reasonable endeavours to resolve the relevant deadlock situation within 14 days from the date which the deadlock situation arose (and pending such resolution, no Party shall cast any vote attaching to its ordinary shares in favour of the proposal). EFTA01116253  2 (B) If the Parties are unable to resolve the deadlock situation in accordance with paragraph 3(A) above, then paseb-Bufria-irivestmevitaahisielArgosophia GmbH agrees to grant I.W.Osbome (HK) Limited (a-sompany-inaarpocated-in-14/ang-Kong-with-Pegistsatistrwmuriber-1-5451-5514and any subsequent transferee of all ordinary shares in the Company held by it) a right to purchase (the "call option') all ordinary shares not owned by it at a price per ever ry share calculated in accordance with paragraph 53(C) below. (C) The price per ordinary share for the call option will be calculated by determining: the cash held by the Company, excluding:_(a) any rash represented by loan capital provided by investors and either not yet invested or owing to investors; and (b) any investments held by the Company, less the liabilities of the Company including, but not limited to, the projected amount of expenses of the Company (the "Net Cash Value"); and (ii) the value of;-4)-thamost-IlaGENri-issurs4:4-ROW-shaces-byr er-salis4:4-existing-shares in; the securities of the companies in which the Company has invested and continues to hold sharessjscuass (the "investments") using: (a) the most recent Issue of new sharessecurities by, or sale of existing shares-in-wurities in those companies which, subsequent to each such investment made, was in respect of no less than 0.5 per cent. of the issued chore capitalsecurities of the company concerned (being, for each investment, its "valuation"); or (b) in the event that an investment did not have a valuation, the most recent issue of new sharessecurities by, or sale of existing sharessecurities in, such investment(s), (such aggregate amounts being the "Investments Amount"), and the price per ordinary share for the call option will be 100 per cent. of the Net Cash Value plus 30 per cent. of the Investments Amount, with the Investments Amount being reduced by the amount of capital provided to the Company by investors less any amounts of capital returned to investors (the "Capital Amount"), as expressed in the formula below: Net Cash Value + 0.3 x (Investments Amount — Capital Amount) 4. Law: This letter is governed by and construed in accordance with English law. The Parties submit to the exclusive jurisdiction of the English courts in connection with all proceedings and disputes arising in connection with this letter (including non-contractual proceedings and disputes). Please sign below to acknowledge your acceptance of these terms. Yours sincerely, For I.W.Osbome (HK) Limited by Ian Osborne, Director Accepted: 2 Workshare Professional comparison of CC_510769229_7.DOC and CC_510769229 15.DOC. Performed on 02/02/2012. EFTA01116254 For [olaeob-Berda-Argosophia investment-Vehielerinthl by Jacob Burda, Director 3 Workshare Professional comparison of CC_510769229_7.DOC and CC_510769229_15.DOC. Performed on 02/02/2012. EFTA01116255 Document comparison by Workshare Professional on 02 February 2012 12:08:44 Input: Document 1 ID CATemp1NletRight1CompareCC_510769229_7.DOC Description CATemplNetRight1Compare1CC_510769229_7.DOC Document 2 ID CATemplNetRight1CompareCC_510769229_15.DOC Description CATemplNetRi ht1CompareCC_510769229_15.DOC Rendering set SandMMoves2 Insertion Deletion Moved-from Moved to Style change Format change Moved-deletion Inserted cell Deleted cell Moved cell Split/Merged cell Padding cell Count Insertions 27 Deletions 20 Moved from 3 Moved to 3 Style change 0 Format changed 51 Total changes 104 4 Workshare Professional comparison of CC_510769229_7.DOC and CC_510769229 15.DOC. Performed on 02/02/2012. EFTA01116256