Document:

Exhibit 10.69

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO CERTAIN
PORTIONS OF THIS AGREEMENT. CONFIDENTIAL PORTIONS HAVE BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

EQUITY PURCHASE AGREEMENT

 

by and among

 

priceline.com Mauritius Co. Ltd,

 

priceline.com Incorporated

 

and

 

the Shareholders of Agoda Company, Ltd. and Members of AGIP LLC

 

 

 

November 6, 2007

 

 

 

 

[***] = Confidential Treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

 

 

TABLE OF CONTENTS

 

Page

 

	
  ARTICLE 1

  	
   

  	
  DEFINITIONS
  AND CONSTRUCTION

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
  Section 1.1

  	
   

  	
  Definitions.

  	
   

  	
  1

  
	 
	
  Section 1.2

  	
   

  	
  Additional Defined Terms.

  	
   

  	
  6

  
	 
	
  Section 1.3

  	
   

  	
  Construction.

  	
   

  	
  8

  
	 
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
   

  	
  THE
  TRANSACTION

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
  Section 2.1

  	
   

  	
  Purchase and Sale.

  	
   

  	
  8

  
	 
	
  Section 2.2

  	
   

  	
  Initial Purchase Price.

  	
   

  	
  8

  
	 
	
  Section 2.3

  	
   

  	
  Estimated Closing Balance
  Sheet.

  	
   

  	
  8

  
	 
	
  Section 2.4

  	
   

  	
  Post-Closing Adjustment.

  	
   

  	
  8

  
	 
	
  Section 2.5

  	
   

  	
  Closing.

  	
   

  	
  10

  
	 
	
  Section 2.6

  	
   

  	
  Closing Deliveries.

  	
   

  	
  10

  
	 
	
  Section 2.7

  	
   

  	
  Escrow Agent and Escrow
  Agreement.

  	
   

  	
  13

  
	 
	
  Section 2.8

  	
   

  	
  Purchase Price Allocation.

  	
   

  	
  13

  
	 
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
   

  	
  REPRESENTATIONS
  AND WARRANTIES OF THE SELLERS

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
  Section 3.1

  	
   

  	
  Organization and Good
  Standing.

  	
   

  	
  14

  
	 
	
  Section 3.2

  	
   

  	
  Authority and
  Enforceability.

  	
   

  	
  14

  
	 
	
  Section 3.3

  	
   

  	
  No Conflict.

  	
   

  	
  14

  
	 
	
  Section 3.4

  	
   

  	
  Capitalization and
  Ownership.

  	
   

  	
  15

  
	 
	
  Section 3.5

  	
   

  	
  Financial Statements.

  	
   

  	
  16

  
	 
	
  Section 3.6

  	
   

  	
  Books and Records.

  	
   

  	
  16

  
	 
	
  Section 3.7

  	
   

  	
  Accounts Receivable; Bank
  Accounts.

  	
   

  	
  16

  
	 
	
  Section 3.8

  	
   

  	
  No Undisclosed
  Liabilities.

  	
   

  	
  17

  
	 
	
  Section 3.9

  	
   

  	
  Absence of Certain Changes
  and Events.

  	
   

  	
  17

  
	 
	
  Section 3.10

  	
   

  	
  Assets.

  	
   

  	
  19

  
	 
	
  Section 3.11

  	
   

  	
  Leased Real Property.

  	
   

  	
  19

  
	 
	
  Section 3.12

  	
   

  	
  Intellectual Property.

  	
   

  	
  19

  
	 
	
  Section 3.13

  	
   

  	
  Contracts.

  	
   

  	
  22

  
	 
	
  Section 3.14

  	
   

  	
  Tax Matters.

  	
   

  	
  24

  
	 
	
  Section 3.15

  	
   

  	
  Employee Benefit Matters.

  	
   

  	
  26

  
	 
	
  Section 3.16

  	
   

  	
  Employment and Labor
  Matters.

  	
   

  	
  28

  
	 
	
  Section 3.17

  	
   

  	
  Environmental Matters.

  	
   

  	
  28

  
	 
	
  Section 3.18

  	
   

  	
  Compliance with Laws,
  Judgments and Governmental Authorizations.

  	
   

  	
  29

  
	 
	
  Section 3.19

  	
   

  	
  Corruption and Trade
  Regulation.

  	
   

  	
  29

  
	 
	
  Section 3.20

  	
   

  	
  Legal Proceedings.

  	
   

  	
  30

  
	 
	
  Section 3.21

  	
   

  	
  Customers and Suppliers.

  	
   

  	
  30

  
	 
	
  Section 3.22

  	
   

  	
  Insurance.

  	
   

  	
  31

  
	 
	
  Section 3.23

  	
   

  	
  Relationships with
  Affiliates.

  	
   

  	
  31

  
	 
	
  Section 3.24

  	
   

  	
  Insolvency.

  	
   

  	
  31

  
	 
	
  Section 3.25

  	
   

  	
  Brokers or Finders.

  	
   

  	
  31

  
	 
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
   

  	
  REPRESENTATIONS
  AND WARRANTIES OF THE PURCHASERS

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
  Section 4.1

  	
   

  	
  Organization and Good
  Standing.

  	
   

  	
  32

  
	 
	
  Section 4.2

  	
   

  	
  Authority and
  Enforceability.

  	
   

  	
  32

  
	 
	
  Section 4.3

  	
   

  	
  No Conflict.

  	
   

  	
  32

  
	 
	
   

  	
   

  	
   

  	
   

  	
   

  
								

[***] = Confidential Treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

i

 

 

	
  TABLE OF CONTENTS

  
	
  (continued)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
  Section 4.4

  	
   

  	
  Legal Proceedings.

  	
   

  	
  32

  
	 
	
  Section 4.5

  	
   

  	
  Investment Intent.

  	
   

  	
  32

  
	 
	
  Section 4.6

  	
   

  	
  Brokers or Finders.

  	
   

  	
  32

  
	 
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
   

  	
  COVENANTS

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
  Section 5.1

  	
   

  	
  Expenses.

  	
   

  	
  33

  
	 
	
  Section 5.2

  	
   

  	
  Confidentiality.

  	
   

  	
  33

  
	 
	
  Section 5.3

  	
   

  	
  Noncompetition and
  Nonsolicitation.

  	
   

  	
  33

  
	 
	
  Section 5.4

  	
   

  	
  Public Announcements.

  	
   

  	
  35

  
	 
	
  Section 5.5

  	
   

  	
  [***]

  	
   

  	
  35

  
	 
	
  Section 5.6

  	
   

  	
  Further Actions.

  	
   

  	
  35

  
	 
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
   

  	
  CERTAIN TAX
  MATTERS

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
  Section 6.1

  	
   

  	
  Tax Returns.

  	
   

  	
  35

  
	 
	
  Section 6.2

  	
   

  	
  Payment of Taxes.

  	
   

  	
  36

  
	 
	
  Section 6.3

  	
   

  	
  Tax Apportionment.

  	
   

  	
  36

  
	 
	
  Section 6.4

  	
   

  	
  Tax Elections.

  	
   

  	
  36

  
	 
	
  Section 6.5

  	
   

  	
  Transactional Taxes.

  	
   

  	
  36

  
	 
	
  Section 6.6

  	
   

  	
  Other Tax Matters.

  	
   

  	
  37

  
	 
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
   

  	
  INDEMNIFICATION

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
  Section 7.1

  	
   

  	
  Indemnification by the
  Sellers.

  	
   

  	
  37

  
	 
	
  Section 7.2

  	
   

  	
  Indemnification by the
  Purchasers.

  	
   

  	
  38

  
	 
	
  Section 7.3

  	
   

  	
  Claim Procedure.

  	
   

  	
  39

  
	 
	
  Section 7.4

  	
   

  	
  Third-Party Claims.

  	
   

  	
  40

  
	 
	
  Section 7.5

  	
   

  	
  Survival.

  	
   

  	
  41

  
	 
	
  Section 7.6

  	
   

  	
  Limitations on Liability.

  	
   

  	
  42

  
	 
	
  Section 7.7

  	
   

  	
  Satisfaction of
  Indemnification Claims Against Sellers.

  	
   

  	
  43

  
	 
	
  Section 7.8

  	
   

  	
  No Right of
  Indemnification or Contribution by Seller.

  	
   

  	
  43

  
	 
	
  Section 7.9

  	
   

  	
  Exercise of Remedies by
  Purchaser Indemnified Parties other than the Purchaser.

  	
   

  	
  44

  
	 
	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GENERAL
  PROVISIONS

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
  Section 8.1

  	
   

  	
  Seller Representative.

  	
   

  	
  44

  
	 
	
  Section 8.2

  	
   

  	
  Notices.

  	
   

  	
  45

  
	 
	
  Section 8.3

  	
   

  	
  Amendment.

  	
   

  	
  46

  
	 
	
  Section 8.4

  	
   

  	
  Waiver and Remedies.

  	
   

  	
  46

  
	 
	
  Section 8.5

  	
   

  	
  Entire Agreement.

  	
   

  	
  46

  
	 
	
  Section 8.6

  	
   

  	
  Assignment and Successors.

  	
   

  	
  46

  
	 
	
  Section 8.7

  	
   

  	
  Severability.

  	
   

  	
  47

  
	 
	
  Section 8.8

  	
   

  	
  Exhibits and Schedules.

  	
   

  	
  47

  
	 
	
  Section 8.9

  	
   

  	
  Interpretation.

  	
   

  	
  47

  
	 
	
  Section 8.10

  	
   

  	
  Governing Law.

  	
   

  	
  47

  
	 
	
  Section 8.11

  	
   

  	
  Specific Performance.

  	
   

  	
  47

  
	 
	
  Section 8.12

  	
   

  	
  Jurisdiction and Service
  of Process.

  	
   

  	
  47

  
	 
	
  Section 8.13

  	
   

  	
  Waiver of Jury Trial.

  	
   

  	
  48

  
									

 

[***] = Confidential Treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

ii

	
  TABLE OF CONTENTS

  
	
  (continued)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	 
	
  Section 8.14

  	
   

  	
  Counterparts.

  	
   

  	
  48

  
							

 

	
  Schedule
  A

  	
   

  	
  —

  	
   

  	
  List
  of Sellers and Equity Interests

  
	
  Schedule
  B

  	
   

  	
  —

  	
   

  	
  Option
  Holders, Options and Option Shares

  
	
  Schedule
  C

  	
   

  	
  —

  	
   

  	
  Earnout
  Amount Calculation and Earnout Participants

  
	
  Schedule
  D

  	
   

  	
  —

  	
   

  	
  List
  of Employees Entering Employment Agreements

  
	
  Schedule
  E

  	
   

  	
  —

  	
   

  	
  List
  of Continuing Directors and Officers

  
	
  Schedule
  F

  	
   

  	
  —

  	
   

  	
  List
  of Employees to execute IP Assignment and Release Agreements

  
	
  Schedule
  G

  	
   

  	
  —

  	
   

  	
  Certain
  Third-Party Claim Procedures

  
	
  Schedule
  H

  	
   

  	
  —

  	
   

  	
  Estimated
  Closing Balance Sheet

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  —

  	
   

  	
  Share
  Transfer Forms

  
	
  Exhibit B

  	
   

  	
  —

  	
   

  	
  Seller
  Releases

  
	
  Exhibit C

  	
   

  	
  —

  	
   

  	
  Secretary’s
  Certificate

  
	
  Exhibit D

  	
   

  	
  —

  	
   

  	
  Escrow
  Agreement

  
	
  Exhibit E

  	
   

  	
  —

  	
   

  	
  Option
  Cancellation Agreements

  
	
  Exhibit F

  	
   

  	
  —

  	
   

  	
  Restricted
  Stock Unit Agreements

  
	
  Exhibit G

  	
   

  	
  —

  	
   

  	
  Performance
  Share Unit Agreements

  
	
  Exhibit H

  	
   

  	
  —

  	
   

  	
  Employee
  IP Assignment and Release Agreements

  
	
  Exhibit I

  	
   

  	
  —

  	
   

  	
  Convertible
  Debt Assignment and Transfer Documents

  
	
  Exhibit J

  	
   

  	
  —

  	
   

  	
  Parity
  Option Assignment and Transfer Documents

  
	
  Exhibit K

  	
   

  	
  —

  	
   

  	
  Standard
  Terms of Use Policy

  
	
  Exhibit L

  	
   

  	
  —

  	
   

  	
  Form Affiliate
  Marketing Agreement

  

 

[***] = Confidential Treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

iii

 

EQUITY PURCHASE AGREEMENT

This Equity Purchase Agreement (the “Agreement”) is made as of November 6,
2007, by and among priceline.com Mauritius Co. Ltd, a Mauritius corporation (“Share
Purchaser”) and priceline.com Incorporated, a Delaware corporation (“Priceline
US”) (Share Purchaser and Priceline US together, the “Purchasers”)
and the shareholders of Agoda Company, Ltd., a Mauritius corporation (the “Company”)
and membership interest holders of AGIP LLC, a Delaware limited liability
company (“AGIP”) in each case as identified on Schedule A
(together, the “Sellers”).

PREAMBLE

WHEREAS, as of the Closing Date (as defined below),
certain of the Sellers are the only members in AGIP (together, the “AGIP
Sellers”) and the Sellers are all of the shareholders in the Company
(together, the “Share Sellers”).

WHEREAS, the Share Sellers desire to sell, and Share
Purchaser desires to purchase, all of the issued and outstanding shares of the
Company, including the Option Shares (as defined below) to be sold by the
Option Holders (as defined below) (together, the “Shares”), and the AGIP
Sellers desire to sell, and Priceline US desires to purchase, all of the
membership interests in AGIP (the “Membership Interests”), in accordance
with the provisions of this Agreement.

WHEREAS, RR (as defined below) desires to sell, and
Share Purchaser desires to purchase, all rights, title and interest in the
Parity Option (as defined below) and the Convertible Debt (as defined below)
(the Parity Option, the Convertible Debt, the Shares and the Membership
Interests being referred to herein collectively as the “Equity Interests”),
in accordance with the provisions of this Agreement.

NOW, THEREFORE, intending to be legally bound and in consideration of
the mutual provisions set forth in this Agreement and for other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties agree as follows:

ARTICLE 1

DEFINITIONS AND CONSTRUCTION

Section 1.1             Definitions.  For the purposes of this Agreement and the Ancillary
Agreements:

“AAP” means Anacott Asia Pacific Co., Ltd., a Thai company.

“Acquired Companies” means, collectively, (a) the Agoda
Companies; and (b) AGIP.

“Affiliate” means,
with respect to a specified Person, a Person that directly, or indirectly through
one or more intermediaries, controls, is controlled by or is under common
control with, the specified Person.  In
addition to the foregoing, if the specified Person is an individual, the term “Affiliate”
also includes (a) the individual’s spouse, (b) the members of the
immediate family (including parents, siblings and children) of the individual
or of the individual’s spouse and (c) any corporation, limited liability
company, general or limited partnership, trust, association or other business
or investment entity that directly or indirectly, through one or more
intermediaries controls, is controlled by or is under common control with any
of the foregoing individuals.  For
purposes of this definition, the term “control” (including the terms “controlling,”
“controlled by” and “under common control with”) means the possession, direct
or indirect, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of voting securities,
by contract or otherwise.

 

[***] = Confidential Treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

“Agoda Companies” means the Company, Agoda Singapore and Agoda
Thailand.

“Agoda Singapore” means Agoda Company Pte. Ltd., a Singapore
company.

“Agoda Thailand” means Agoda Services Co., Ltd., a Thai company.

“Ancillary Agreements” means, collectively, the Equity Transfer
Documents, Option Share Transfer Documents, Seller Releases, Employment
Agreements, Escrow Agreement, Option Cancellation Agreements, Convertible Debt
Assignment and Transfer Documents, Parity Option Assignment and Transfer
Documents; Restricted Stock Unit Agreements, Performance Share Unit Agreements
and Employee IP Assignment and Release Agreements.

“A.T.” means A.T., Inc., a Delaware corporation.

“Benefit Obligation” means the Acquired Companies’ aggregate
financial liability to provide all current, projected and contingent benefits
to an employee or former employee of an Acquired Company, or his beneficiaries
or dependents, as the case may be, under the terms of a Company Plan,
regardless of whether an amount less than such aggregate financial liability is
reflected on the employer’s financial statements under applicable tax or
accounting rules.

“Business” means the business of the Acquired Companies.

[***] means [***].

“Code” means the  U.S.
Internal Revenue Code of 1986, as amended.

“Company Plan” means each agreement, plan, program, fund,
policy, contract or arrangement (whether written or unwritten) providing
compensation, benefits, pension, retirement, superannuation, profit sharing,
stock bonus, stock option, stock purchase, phantom or stock equivalent, bonus,
thirteenth month, incentive, deferred compensation, hospitalization, medical,
dental, vision, vacation, life insurance, death benefit, sick pay, disability,
severance, termination indemnity, redundancy pay, educational assistance,
holiday pay, housing assistance, moving expense reimbursement, fringe benefit
or similar employee benefits (regardless of whether it is mandated under local
law, voluntary, private, funded, unfunded, financed by the purchase of
insurance, contributory or non-contributory) maintained or contributed to by
any Acquired Company or Affiliate thereof (or that has been maintained or
contributed to in the last six years by any Acquired Company or Affiliate
thereof) for the benefit of any current or former director, officer, employee
or consultant of any Acquired Company or Affiliate thereof, or with respect to
which any Acquired Company or Affiliate thereof has or may have any Liability;
provided that any governmental plan or program requiring the mandatory payment
of social insurance taxes or similar contributions to a governmental fund with
respect to the wages of an employee will not be considered a “Company Plan” for
these purposes.

“Contract” means any contract, agreement, lease, license,
warranty, guaranty, mortgage, note, bond, option, warrant or other binding
commitment.

“Convertible Debt” means the debt owed by the Company to RR
which, as of the Closing Date, is in the principal amount of [***], and which may be converted into shares
of the Company pursuant to the Convertible Loan Agreement.

“Convertible Loan
Agreement” means that certain Convertible Loan Agreement, dated July 1,
2002, between the Company (f/k/a Anacott Corp) and [***] (as amended).

 

[***] = Confidential Treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

2

“Encumbrance” means any charge, claim, mortgage, servitude,
easement, right of way, community or other marital property interest, covenant,
equitable interest, license, lease or other possessory interest, lien, option,
pledge, security interest, preference, priority, right of first refusal,
restriction (other than any restriction on transferability imposed by any
applicable foreign, federal or state securities Laws) or other encumbrance of
any kind or nature whatsoever (whether absolute or contingent).

“Environmental Law” means any Law relating to the environment,
natural resources, Hazardous Material or occupational health and safety related
to exposure to Hazardous Materials, including any Law pertaining to (a) the
manufacture, treatment, storage, disposal, generation and transportation of
Hazardous Material and (b) the release or threatened release into the
environment of Hazardous Material, including emissions, discharges, injections,
spills, escapes or dumping of Hazardous Material.

“ERISA” means the U.S. Employee Retirement Income Security Act
of 1974, as amended.

“ERISA Affiliate” means any other Person that, together with an
Acquired Company, would be treated as a single employer under Section 414
of the Code, whether or not actually subject to the Code.

[***] means an amount equal to [***].

“GAAP” means generally accepted accounting principles for
financial reporting pursuant to Mauritian International Financial Reporting
Standards, as in effect as of the date of this Agreement.

“Governmental Authority” means any (a) federal, state,
local, municipal, foreign or other government, (b) department, agency or
instrumentality of a foreign or other government, including any state-owned or
state controlled instrumentality of a foreign or other government, (c) governmental
or quasi-governmental authority of any nature (including any governmental
agency, branch, department or other entity and any court or other tribunal), or
(d) body exercising, or entitled to exercise, any administrative,
executive, judicial, legislative, police, regulatory or taxing authority or
power of any nature.

“Governmental Authorization” means any approval, consent,
ratification, waiver, license, permit, registration or other authorization
issued, granted, given or otherwise made available by or under the authority of
any Governmental Authority or pursuant to any Law.

“Hazardous Material” means any waste or other substance that is
listed, defined, designated or classified as, or otherwise determined to be,
hazardous, radioactive or toxic or a pollutant or a contaminant under any
Environmental Law, including petroleum and all derivatives thereof and asbestos
or asbestos-containing materials.

“Indebtedness” means, with respect to any Person, without
duplication, the following: (a) all obligations of an Acquired Company for
borrowed money; (b) all obligations of an Acquired Company evidenced by
bonds, debentures, notes or similar instruments; (c) all obligations of
others for borrowed money secured by (or for which the holder of such obligation
has an existing right, contingent or otherwise, to be secured by) any
Encumbrance on property owned or acquired by an Acquired Company, whether or
not the obligation secured thereby has been assumed; (d) all guarantees by
an Acquired Company of obligations of others for borrowed money; and (e) all
obligations, contingent or otherwise, of an Acquired Company as an account
party in respect of letters of credit and letters of guaranty.

“Intellectual Property”
means all of the following anywhere in the world and all legal rights, title or
interest in the following arising under Law, whether or not filed, perfected,
registered or recorded and whether now or later existing, filed, issued or
acquired: (a) all patents and applications for patents,

 

[***] = Confidential Treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

3

including any reissues,
reexaminations, divisions, renewals, extensions, provisionals, continuations
and continuations in part; (b) all copyrights, copyright registrations and
copyright applications, including any renewals or extensions, copyrightable
works and all other corresponding rights; (c) all mask works, mask work
registrations and mask work applications, including any renewals or extensions,
and all other corresponding rights; (d) all trade dress and trade names,
logos, Internet addresses and domain names, trademarks and service marks and
any registrations and applications therefor, including any intent to use
applications, registrations on any supplemental registry (or the equivalent)
and any renewals or extensions, all other indicia of commercial source or
origin and all goodwill associated with any of the foregoing; (e) all inventions
(whether patentable or unpatentable and whether or not reduced to practice),
know how, technology, technical data, trade secrets, confidential business
information, manufacturing and production processes and techniques, research
and development information, financial, marketing and business data, pricing
and cost information, business and marketing plans, advertising and promotional
materials, customer, distributor, reseller and supplier lists and information,
correspondence, records, and other documentation, and other proprietary
information of every kind; (f) all computer software (including source and
object code), firmware, development tools, algorithms, files, records,
technical drawings and related documentation, data and manuals; (g) all
databases and data collections; and (h) all copies and tangible
embodiments of any of the foregoing (in whatever form or medium).

“Interest” means an interest rate of [***] (calculated based on the actual number of days elapsed in a
year consisting of 365 days).

“IP Assets” means the Intellectual Property (including the IP
License) transferred to AGIP by A.T. prior to the Closing Date under the IP
Assignment Agreement by and between A.T. and AGIP dated November 5, 2007  and the Assignment and Assumption Agreement by and between A.T. and AGIP dated November 5,
2007.

“IP License” means the Trademark and Domain Name License and
Option Agreement, dated February 10, 2004 between AGIP and the Company, as
amended.

“IRS” means the U.S. Internal Revenue Service and, to the extent
relevant, the Department of Treasury.

“Judgment” means any order, injunction, judgment, decree,
ruling, assessment or arbitration award of any Governmental Authority or
arbitrator.

“Knowledge” means [***].

“Law” means any federal, state, local, municipal, foreign,
international, multinational, or other constitution, law, statute, treaty,
rule, regulation, ordinance or code.

“Liability” includes liabilities, debts or other obligations of
any nature, whether known or unknown, absolute, accrued, contingent,
liquidated, unliquidated or otherwise, due or to become due or otherwise, and
whether or not required to be reflected on a balance sheet prepared in
accordance with GAAP.

“LIBOR” means the
average interest rate major international banks charge each other for
three-month deposits as published by the Wall Street Journal
and any change in the three-month LIBOR will be applicable to the interest rate
charge.

 

[***] = Confidential Treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

4

“Loss” means any loss, Judgment, damage, fine, penalty, expense
(including reasonable attorneys’ or other professional fees and expenses and
court costs), Liability or other cost or expense, whether or not involving the
claim of another Person.

“Material Adverse Effect” means any violation, circumstance,
change or effect, either individually or in the aggregate with all other
violations, circumstances, changes or effects, that has a material adverse
effect on the business, assets, Liabilities, condition (financial or
otherwise), operating results or operations of the Acquired Companies, taken as
a whole, or the ability of the Sellers to perform their obligations under this
Agreement [***].

“Management Shareholders” means the shareholders in the Company
identified as management shareholders in Schedule A.

“MK” means Michael Kenny of [***].

“Occupational Safety and Health Law” means any Law designed to
provide safe and healthful working conditions and to reduce occupational safety
and health hazards, and any program, whether governmental or private (such as
those promulgated or sponsored by industry associations and insurance
companies), designed to provide safe and healthful working conditions.

“Options” means the vested options to purchase Class B
Shares in the Company as set forth on Schedule B.

“Option Shares” means the Class B Shares in the Company
that would be issued to the Option Holders upon exercise of their Options as set
forth on Schedule B.

“Option Holders” means the holders of Options as set forth on Schedule
B.

“Parity Option” means [***].

“Parity Option Agreement” means that certain Shareholders
Agreement, dated July 1, 2002, between RR and MK (as amended).

“Permitted Encumbrances” means (a) statutory liens of
carriers, warehousemen, mechanics, materialmen and other similar Persons
incurred in the ordinary course of business for sums not yet due and payable
and that do not impair the conduct of any Acquired Company’s business, and (b) statutory
liens for Taxes not yet due and payable and for which adequate reserves have
been recorded on the Balance Sheet, and (c) Encumbrances that are
immaterial in character, amount and extent and which do not detract from the
value or marketability of, or interfere with the present use of, the affected
property.

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

“Proceeding” means any action, arbitration, audit, examination,
investigation, hearing, litigation or suit (whether civil, criminal,
administrative, judicial or investigative, whether formal or informal, and
whether public or private) commenced, brought, conducted or heard by or before,
or otherwise involving, any Governmental Authority or arbitrator.

“RR” means Robert Rosenstein  [***].

[***] =
Confidential Treatment requested for redacted portion; redacted portion has
been filed separately with the Commission.

 

5

“Subsidiary” means each of Agoda Singapore and Agoda Thailand.

“Tax” means (a) any federal, state, local, foreign and
other tax, charge, fee, duty (including customs duty), levy or assessment,
including any income, gross receipts, net proceeds, alternative or add-on
minimum, corporation, ad valorem, turnover, real and personal property
(tangible and intangible), sales, use, franchise, excise, value added, stamp,
leasing, lease, user, transfer, fuel, excess profits, profits, occupational,
premium, interest equalization, windfall profits, severance, license,
registration, payroll, environmental (including taxes under Section 59A of
the Code), capital stock, capital duty, disability, estimated, gains, wealth,
welfare, employee’s income withholding, other withholding, unemployment and
social security or other tax of whatever kind (including any fee, assessment
and other charges in the nature of or in lieu of any tax) that is imposed by
any Governmental Authority, (b) any interest, fines, penalties or
additions resulting from, attributable to, or incurred in connection with any
items described in this paragraph or any related contest or dispute and (c) any
items described in this paragraph that are attributable to another Person but
that any Acquired Company is liable to pay by Law, by Contract or otherwise,
whether or not disputed.

“Tax Return” means any report, return, estimated tax payment,
form, declaration, claim for refund, or information return or statement related
to Taxes, including any schedule or attachment thereto, and including any
amendment thereof.

Section 1.2             Additional
Defined Terms.  For purposes of this
Agreement and the Ancillary Agreements, the following terms have the meanings
specified in the indicated Section of this Agreement:

	
  Defined
  Term

  	
   

  	
  Section

  
	
  AAP
  Assets

  	
   

  	
  2.6(a)

  
	
  Adjustment
  Calculation

  	
   

  	
  2.4(a)

  
	
  Adjustment
  Notice

  	
   

  	
  2.4(a)

  
	
  AGIP

  	
   

  	
  First
  Paragraph

  
	
  AGIP
  Sellers

  	
   

  	
  Preamble

  
	
  Agreement

  	
   

  	
  First
  Paragraph

  
	
  Balance
  Sheet

  	
   

  	
  3.5(a)

  
	
  Cap

  	
   

  	
  7.6(a)

  
	
  Certain
  Nations

  	
   

  	
  3.19(f)

  
	
  Claim
  Amount

  	
   

  	
  7.6(a)

  
	
  Claim
  Notice

  	
   

  	
  7.3(a)

  
	
  Class A
  Shares

  	
   

  	
  3.4(a)

  
	
  Class B
  Shares

  	
   

  	
  3.4(a)

  
	
  Closing

  	
   

  	
  2.5

  
	
  Closing
  Balance Sheet

  	
   

  	
  2.4(a)

  
	
  Closing
  Date

  	
   

  	
  2.5

  
	
  Company

  	
   

  	
  First
  Paragraph

  
	
  Company
  Intellectual Property

  	
   

  	
  3.12(a)

  
	
  Competing
  Activity

  	
   

  	
  5.3(a)

  
	
  Confidential
  Information

  	
   

  	
  5.2(a)

  
	
  Confidentiality
  Agreement

  	
   

  	
  5.2(a)

  
	
  Controlling
  Party

  	
   

  	
  7.4(f)

  
	
  Convertible
  Debt Assignment and Transfer Documents

  	
   

  	
  2.6(a)

  
	
  Covered
  Claims

  	
   

  	
  Schedule
  G

  
	
  Disputed
  Amount

  	
   

  	
  7.7(c)

  
	
  Dispute
  Notice

  	
   

  	
  2.4(b)

  

 

[***] = Confidential Treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

6

 

	
  Earnout
  Amount

  	
   

  	
  Schedule
  C

  
	
  Earnout
  Participants

  	
   

  	
  Schedule
  C

  
	
  Employee
  IP Assignment and Release Agreements

  	
   

  	
  2.6(a)

  
	
  Employment
  Agreements

  	
   

  	
  2.6(a)

  
	
  Equity
  Interests

  	
   

  	
  Preamble

  
	
  Equity
  Transfer Documents

  	
   

  	
  2.6(a)

  
	
  Escrow
  Agent

  	
   

  	
  2.6(a)

  
	
  Escrow
  Agreement

  	
   

  	
  2.6(a)

  
	
  Escrow
  Amount

  	
   

  	
  2.6(c)

  
	
  Escrow
  Fund

  	
   

  	
  2.7

  
	
  Estimated
  Closing Balance Sheet

  	
   

  	
  2.3

  
	
  [***]

  	
   

  	
  2.4(a)

  
	
  Financial
  Statements

  	
   

  	
  3.5(a)

  
	
  Indemnified
  Party

  	
   

  	
  7.3(a)

  
	
  Indemnifying
  Party

  	
   

  	
  7.3(a)

  
	
  Indemnity
  Determination Date

  	
   

  	
  7.3(h)

  
	
  Indemnity
  Final Determination

  	
   

  	
  7.3(h)

  
	
  Indemnity
  Interest Amount

  	
   

  	
  7.7(b)

  
	
  Independent
  Accounting Firm

  	
   

  	
  2.4(d)

  
	
  Initial
  Purchase Price

  	
   

  	
  2.2

  
	
  Interim
  Balance Sheet

  	
   

  	
  3.5(a)

  
	
  Key
  Employees

  	
   

  	
  3.9(j)

  
	
  Leased
  Real Property

  	
   

  	
  3.11(b)

  
	
  Membership
  Interests

  	
   

  	
  Preamble

  
	
  Non-Controlling
  Party

  	
   

  	
  7.4(f)

  
	
  Objection
  Notice

  	
   

  	
  7.3(b)

  
	
  Option
  Cancellation Agreements

  	
   

  	
  2.6(a)

  
	
  Option
  Share Transfer Documents

  	
   

  	
  2.6(a)

  
	
  Owned
  Intellectual Property

  	
   

  	
  3.12(a)

  
	
  Parity
  Option Assignment and Transfer Documents

  	
   

  	
  2.6(a)

  
	
  Performance
  Share Unit Agreements

  	
   

  	
  2.6(a)

  
	
  Purchase
  Price

  	
   

  	
  2.2

  
	
  Priceline
  US

  	
   

  	
  First
  Paragraph

  
	
  Pro
  Rata Portion

  	
   

  	
  Schedule
  C

  
	
  Purchasers

  	
   

  	
  First
  Paragraph

  
	
  Purchaser
  Disclosure Schedule

  	
   

  	
  Article 4

  
	
  Purchaser
  Indemnified Parties

  	
   

  	
  7.1

  
	
  Released
  Earnout Amount

  	
   

  	
  7.7(c)

  
	
  Restricted
  Stock Unit Agreements

  	
   

  	
  2.6(a)

  
	
  Scheduled
  Earnout Payment Date

  	
   

  	
  7.7(c)

  
	
  Securities
  Act

  	
   

  	
  3.4(c)

  
	
  Sellers

  	
   

  	
  First
  Paragraph

  
	
  Seller
  Disclosure Schedule

  	
   

  	
  Article 3

  
	
  Seller
  Releases

  	
   

  	
  2.6(a)

  
	
  Seller
  Representative

  	
   

  	
  8.1(a)

  
	
  Shares

  	
   

  	
  Preamble

  
	
  Share
  Purchaser

  	
   

  	
  First
  Paragraph

  
	
  Share
  Sellers

  	
   

  	
  Preamble

  
	
  Share
  Transfer Forms

  	
   

  	
  2.6(a)

  
	
  Third-Party
  Claim

  	
   

  	
  7.4(a)

  
	
  Third-Party
  Claim Notice

  	
   

  	
  7.4(a)

  

 

[***] = Confidential Treatment
requested for redacted portion; redacted portion has been filed separately with
the Commission.

 

7

 

	
  Third
  Party Intellectual Property

  	
   

  	
  3.12(c)

  
	
  Threshold

  	
   

  	
  7.6(a)

  

 

Section 1.3             Construction.  Any reference in this Agreement to an “Article,”
“Section,” “Exhibit” or “Schedule” refers to the corresponding Article,
Section, Exhibit or Schedule of or to this Agreement, unless the context
indicates otherwise.  The table of
contents and the headings of Articles and Sections are provided for convenience
only and are not intended to affect the construction or interpretation of this
Agreement.  All words used in this
Agreement should be construed to be of such gender or number as the
circumstances require.  The term “including”
means “including without limitation” and is intended by way of example and not
limitation.  Any reference to a statute
is deemed also to refer to any amendments or successor legislation, and all rules and
regulations promulgated thereunder, as in effect at the relevant time.  Any reference to a Contract or other document
as of a given date means the Contract or other document as amended,
supplemented and modified from time to time through such date.

ARTICLE 2

THE TRANSACTION

Section 2.1             Purchase
and Sale.  In accordance with the
provisions of this Agreement, at the Closing, (i) the Share Sellers will
sell, convey, assign, transfer and deliver to the Share Purchaser, and the
Share Purchaser will purchase and acquire from the Share Sellers, all of the
Shares, (ii) the AGIP Sellers will sell, convey, assign, transfer and
deliver to Priceline US, and Priceline US will purchase and acquire from the
AGIP Sellers, all of the Membership Interests and (iii) RR will sell,
convey, assign, transfer and deliver to the Share Purchaser, and the Share
Purchaser will purchase and acquire from RR, all rights, title and interest in
the Parity Option and the Convertible Debt.

Section 2.2             Initial
Purchase Price.  The purchase price
for the Equity Interests (the “Purchase Price”) will consist of (a) an
amount in cash equal to $15,074,692.50 (the “Initial Purchase Price”)
and (b) the Earnout Amount, if any, to be calculated and paid by the
Purchasers to the Earnout Participants in accordance with Schedule C.  The Initial Purchase Price is subject to
adjustment in accordance with Section 2.4. 
A portion of the Initial Purchase Price shall be used to fund the Escrow
Fund and be payable in accordance with this Agreement and the Escrow Agreement,
and the remainder shall be paid at Closing to each Seller and each Option
Holder in accordance with Schedule A and Schedule B,
respectively).

Section 2.3             Estimated
Closing Balance Sheet.  Attached as Schedule
H is an unaudited consolidated balance sheet of the Acquired Companies
prepared on an estimated basis as of the close of business on the Closing Date
(the “Estimated Closing Balance Sheet”). 
The Estimated Closing Balance Sheet was prepared in accordance with GAAP
in a manner consistent with the methods and practices used to prepare the
Interim Balance Sheet.  The Estimated
Closing Balance Sheet also includes a statement setting forth the Sellers’ good
faith calculation of the [***] based on
the Estimated Closing Balance Sheet.

Section 2.4             Post-Closing
Adjustment.

(a)           Within [***] after
the Closing Date, the Purchasers will prepare and deliver to the Seller
Representative (with contemporaneous delivery to the Escrow Agent if either of
the Purchasers claim that it is entitled to payment pursuant to

Section 2.4(f)) written notice (the “Adjustment Notice”) containing
(i) an unaudited consolidated balance sheet of the Acquired Companies as
of the close of business on the Closing Date (the “Closing Balance Sheet”),
(ii) the Purchasers’ calculation of the
 [***] based on the Closing Balance Sheet
(the [***]) and (iii) the Purchasers’
calculation of the amount of any payments

[***] = Confidential Treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

8

required pursuant to Section 2.4(f) (the
“Adjustment Calculation”).  The
Closing Balance Sheet will be prepared in good faith in accordance with GAAP in
a manner consistent with the methods and practices used to prepare the Interim
Balance Sheet.  For the purpose of the
Sellers’ review of the Adjustment Notice, the Company shall provide and the
Purchasers shall allow the Company to provide the Sellers (y) access to
all books and records of the Acquired Companies relevant to the Sellers for the
purpose of this Section 2.4, during normal business hours and at the place
where the same are normally kept, with full right to make copies thereof or
take extracts therefrom and, further, (z) with such information as the
Sellers and their accountant shall reasonably require.  The information so made available to the
Sellers shall be subject to a duty of confidentiality except for disclosures
necessary for resolving any disputed item or otherwise required by applicable
Law or securities Laws, rules and regulations.

(b)           Within [***] after delivery of the Adjustment Notice,
the Seller Representative will deliver to the Purchasers

(with contemporaneous delivery to the Escrow Agent if either of the Purchasers
claim that it is entitled to payment pursuant to
  Section 2.4(f)) a written response
in which the Seller Representative will either:

(i)            agree in writing with the Adjustment Calculation, in
which case such calculation will be final and binding on the parties for
purposes of Section 2.4(f); or

(ii)           dispute the Adjustment Calculation by delivering to the
Purchasers a written notice (a “Dispute Notice”) setting forth in
reasonable detail the basis for each such disputed item.

(c)           If
the Seller Representative fails to take either of the foregoing actions within [***] after delivery of the Adjustment Notice,
then the Sellers will be deemed to have irrevocably accepted the Adjustment
Calculation, in which case, the Adjustment Calculation will be final and
binding on the parties for purposes of Section 2.4(f).

(d)           If the Seller
Representative timely delivers a Dispute Notice to the Purchasers (with
contemporaneous delivery to the Escrow Agent if either of the Purchasers claim
that it is entitled to payment pursuant to Section 2.4(f)), then the
Purchasers and the Seller Representative will attempt in good faith, for a
period of [***], to agree on the
Adjustment Calculation for purposes of Section 2.4(f).  Any resolution by the Purchasers and the
Seller Representative during such [***]
period as to any disputed items will be final and binding on the parties for
purposes of Section 2.4(f).  If the
Purchasers and the Seller Representative do not resolve all disputed items by
the end of [***] after the date of
delivery of the Dispute Notice, then the Purchasers and the Seller
Representative will submit the remaining items in dispute to
PricewaterhouseCoopers LLP for resolution, or if that firm is unwilling or
unable to serve, the Purchasers and the Seller Representative will engage
another mutually agreeable independent accounting firm of recognized
international standing, which firm is not the regular auditing firm of the
Purchasers or the Acquired Companies (such selected independent accounting firm,
the “Independent Accounting Firm”). 
The Purchasers and the Seller Representative will instruct the
Independent Accounting Firm to render its determination with respect to the
items in dispute in a written report that specifies the conclusions of the
Independent Accounting Firm as to each item in dispute and the resulting
Adjustment Calculation.  The Purchasers
and the Seller Representative will each use their commercially reasonable
efforts to cause the Independent Accounting Firm to render its determination
within [***] after referral of the items
to such firm or as soon thereafter as reasonably practicable.  The Independent Accounting Firm’s
determination of the Adjustment Calculation as set forth in its report will be
final and binding on the parties for purposes of Section 2.4(f).  [***]

(e)           For purposes of complying with this Section 2.4, the
Purchasers and the Seller Representative will furnish to each other and to the
Independent Accounting Firm such work papers and

 

[***] = Confidential Treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

9

 

other documents and
information relating to the disputed issues as the Independent Accounting Firm
may request and are available to that party (or its independent public
accountants) and will be afforded the opportunity to present to the Independent
Accounting Firm any material related to the disputed items and to discuss the
items with the Independent Accounting Firm. 
The Purchasers may require that the Independent Accounting Firm enter
into a customary form of confidentiality agreement with respect to the work
papers and other documents and information regarding the Acquired Companies
provided to the Independent Accounting Firm pursuant to this Section 2.4.

(f)            If the [***] as finally determined pursuant to this Section 2.4
is [***], then the Sellers will pay to
the Purchasers the amount of such difference in cash plus Interest thereon from
the Closing Date through and including the date of such payment.  [***].  If the [***]
as finally determined pursuant to this Section 2.4 is [***], then the Purchasers will have no
obligation to pay any such difference to the Sellers.

(g)           Any payment to the
Purchasers pursuant Section 2.4(f) will first be satisfied by payment
from the Escrow Fund.  The Sellers will
be jointly and severally liable for any amount by which any payment required
under Section 2.4(f) exceeds the then balance of the Escrow Fund,
together with Interest from the Closing Date through and including the date of
such payment, which payment will be effected by wire transfer of immediately
available funds from the Sellers to an account or accounts designated by the
Purchasers.  Such payments will be made
within five business days following the final determination of the [***] in accordance with this Section 2.4.

(h)           Any payment made
pursuant to this Section 2.4 will be treated by the parties for all
purposes as an adjustment to the Initial Purchase Price and will not be subject
to offset for any reason.  The payment
pursuant to Section 2.4(f) will be applied in proportion to the
Initial Purchase Price to be received by each Seller as set forth on Schedule
A and Schedule B.

Section 2.5             Closing.  The consummation of the transactions
contemplated by this Agreement (the “Closing”) will take place at the
offices of Bryan Cave LLP, 1290 Avenue of the Americas, New York, NY 10104, at
10:00 a.m., local time, on the date of this Agreement, or at such other
time and place as the Purchasers and the Sellers may agree in writing.  The time and date upon which the Closing
actually occurs is referred to in this Agreement as the “Closing Date.”

Section 2.6             Closing
Deliveries.

(a)           At the Closing, the
Sellers will deliver or cause to be delivered to the Purchasers:

(i)            such executed instruments of
transfer or other evidence sufficient to transfer all of the Equity Interests
to Purchasers (together, the “Equity Transfer Documents)”, including
certificates representing the Shares and statutory share transfer forms (the “Share
Transfer Forms”) in the form of Exhibit A executed by each
Share Seller and all other documents necessary to register the Share Transfer
Forms with the Mauritian Registrar General);

(ii)           with
respect to the Option Shares: (A) notices of exercise of options, in a
form reasonably acceptable to Share Purchaser, in which each Option Holder (i) exercises
all of the vested options in Class B Shares of the Company held by him or
her upon Closing, (ii) authorizes the Share Purchaser to pay the aggregate
exercise price payable in respect of the exercise of Options to the Company
from the portion of the Initial Purchase Price payable to the Option Holder
therefor, (iii) authorizes the sale of the Option Shares to the Share
Purchaser and instructs the Seller Representative to carry out all necessary
actions to effect such sale and purchase, and (iv) authorizes the Share
Purchaser to pay the net consideration from the sale of Option Shares to

 

[***] = Confidential Treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

10

 

the Option Holders (having
first deducted from the sale proceeds (1) the aggregate exercise price
payable in respect of the exercise of the Options, plus (2) sufficient
funds to satisfy any income tax liability and or any other tax or social
security withholding required where appropriate and (3) the pro rata share
of contributions to the Escrow Amount and the pro rata share of transaction
fees and expenses associated with the exercise of the option and the sale of
the Option Shares as set forth on Schedule B); and (B) a Share
Transfer Form, executed by each Option Holder (all such documents,
collectively, the “Option Share Transfer Documents”);

 

(iii)          a release in the form of Exhibit B
executed by each Seller (collectively, the “Seller Releases”);

 

(iv)          an employment agreement, substantially
in the respective forms agreed between the parties, as applicable, executed by
Agoda Thailand and [***] (collectively, the “Employment Agreements”);

 

(v)           resignations effective as of the
Closing Date of each director and officer of each Acquired Company as the
Purchasers may have requested in writing prior to the Closing Date, with
exception of the persons set forth on Schedule E;

 

(vi)          a certificate in the form of Exhibit C
of the secretary or assistant secretary (or equivalent officer, as applicable)
of each Acquired Company dated as of the Closing Date and attaching with
respect to each Acquired Company (A) the Acquired Company’s charter and
all amendments thereto, certified by the Secretary of State (or equivalent) of
the jurisdiction of the Acquired Company’s organization not more than five
business days prior to the Closing Date, (B) the Acquired Company’s bylaws
(or equivalent) and all amendments thereto and (C) a certificate of good
standing (or equivalent) of the Acquired Company certified by the Secretary of
State (or equivalent) of the jurisdiction of the Acquired Company’s
organization, where applicable, and issued not more than five business days
prior to the Closing Date; (D) all resolutions of the board of directors
or other authorizing body (or a duly authorized committee thereof) of the
Acquired Companies relating to this Agreement and the transactions contemplated
by this Agreement; and (E) incumbency and signatures of the officers of
the Company executing any agreement contemplated by this Agreement;

 

(vii)         a receipt for the Initial Purchase
Price, less the Escrow Amount, in a form reasonably satisfactory to the
Purchasers;

 

(viii)        an escrow agreement in the form of Exhibit D
(the “Escrow Agreement”) executed by Sellers’ Representative and
JPMorgan Chase Bank, N.A. (the “Escrow Agent”);

 

(xix)         an option cancellation agreement,
substantially in the form of Exhibit E, executed by each holder of
unvested options over shares in the Company, as set forth in Schedule B,
and the Company (collectively, the “Option Cancellation Agreements”);

 

(x)            a restricted stock unit agreement
substantially in the form of Exhibit F executed by [***] (collectively,
the “Restricted Stock Unit Agreements”);

 

(xi)           a performance share unit agreement
substantially in the form of Exhibit G executed by each of the
holders of unvested options over shares in the Company listed on Schedule B
(collectively, the “Performance Share Unit Agreements”);

 

[***] = Confidential Treatment requested for
redacted portion; redacted portion has been filed separately with the
Commission.

 

11

 

 

(xii)          an intellectual property assignment
and release agreement in the form of Exhibit H (collectively, the “Employee
IP Assignment and Release Agreements”) executed by each employee of an
Acquired Company listed on Schedule F and the respective Acquired
Company;

 

(xiii)         documents assigning and transferring
all rights, title and interest in the Convertible Debt in the form of Exhibit I
(the “Convertible Debt Assignment and Transfer Documents”) executed by
[***] and all additional documentation related thereto reasonably requested by
the Share Purchaser to effect the assignment and transfer of such Convertible
Debt to, and to allow for the immediate conversion of such Convertible Debt
into shares of the Company by, Share Purchaser. 
The Sellers hereby waive any preemption or other rights with respect to
shares in the Company issued on any such conversion;

 

(xiv)        documents assigning and transferring all
rights, title and interest in the Parity Option in the form of Exhibit J
(the “Parity Option Assignment and Transfer Documents”) executed by
[***] and all additional documentation related thereto reasonably requested by
the Share Purchaser to effect the assignment and transfer of such Parity Option
to, and to allow for the immediate exercise of such Parity Option by, Share
Purchaser.  The Sellers hereby waive any
preemption or other rights with respect to the shares in the Company to be
transferred pursuant to the Parity Option;

 

(xv)         a termination agreement, in a form
reasonably acceptable to the Share Purchaser, executed by all Sellers
terminating all prior shareholders agreements relating to the Company
(including such shareholders agreements dated August 15, 2005, April 3,
2005, and March 11, 2005 and, subject to assignment of all rights, title
and interest in, and exercise of, the Parity Option pursuant to the terms of
this Agreement and the Parity Option Agreement);

 

(xvi)        (A) evidence, in a form reasonably
satisfactory to the Share Purchaser, that Agoda Singapore has received (1) [***]
from [***] in consideration for the sale by Agoda Singapore to [***] of the
outstanding debt owed by AAP to Agoda Singapore and (2) realizable assets
with a value of approximately [***] (the “AAP Assets”) from AAP; and

 

(xvii)       evidence, in a form reasonably
satisfactory to the Purchasers, that none of the Acquired Companies currently
accepts bookings or permits bookings to be entered in its website with respect
to the provision of products or services to, from or within [***].

 

(b)           At
the Closing, the Purchasers will deliver or cause to be delivered to the
Sellers:

 

(i)            the Initial Purchase Price (as
adjusted pursuant to Section 2.4), less the Escrow Amount, to each Seller
and Option Holder as set forth on Schedule A and Schedule B,
respectively, by wire transfer of immediately available funds to the accounts
notified in writing to the Purchasers prior to the Closing Date;

 

(ii)           each of the Equity Transfer Documents
executed by the Purchasers, as applicable;

 

(iii)          a counterpart to each of the Option
Share Transfer Documents executed by the Share Purchaser;

 

(iv)          a counterpart to the Escrow Agreement
executed by the Purchasers;

 

[***] = Confidential Treatment requested for
redacted portion; redacted portion has been filed separately with the
Commission.

 

12

 

 

(v)           a counterpart to each of the
Restricted Stock Unit Agreements executed by Priceline US;

 

(vi)          a counterpart to each of the
Performance Share Unit Agreement executed by Priceline US;

 

(vii)         a counterpart to each of the
Convertible Debt Assignment and Transfer Documents executed by the Share
Purchaser; and

 

(viii)        a counterpart to each of the Parity
Option Assignment and Transfer Documents executed by the Share Purchaser.

 

(c)           At the Closing, the Purchasers will deliver or cause to be
delivered the sum of [***] (the “Escrow Amount”) to the Escrow Agent by
wire transfer of immediately available funds to an account specified by the
Escrow Agent.

 

(d)           The Closing will not be deemed to have occurred until each
party has delivered to the other applicable party or parties (or such receiving
party or parties have waived such delivery of) all of the Closing documents,
agreements, payments, and other deliveries required to be delivered or made by
each party on or prior to the Closing Date, as set forth in this Section 2.6.

 

Section 2.7             Escrow Agent and Escrow
Agreement.  Concurrently with the
execution and delivery of the Escrow Agreement, and pursuant to applicable
provisions thereof, the Escrow Agent will establish an escrow account to hold
the Escrow Amount (the “Escrow Fund”) in trust pursuant to the Escrow
Agreement free of any lien or other claim of any creditor of any of the parties
which amount, plus any Interest accrued thereon, will be payable to the Sellers
less (i) any amounts owed to the Purchasers with respect to any
adjustments pursuant to Section 2.4 and (ii) any pending or paid
indemnification claims asserted pursuant to Article 7, in accordance with
the terms of this Agreement and the Escrow Agreement.  The Escrow Fund will be deemed to have been
withheld from each Seller and vested Option Holder in proportion to the amount
of the Initial Purchase Price received by such Seller or vested Option Holder
as set forth on Schedule A and Schedule B.  The execution of this Agreement by the
Sellers will constitute approval of the Escrow Fund, the Escrow Agreement, and
the appointment of the Seller Representative.

 

Section 2.8             Purchase Price Allocation.  The Purchase Price will be allocated in
accordance with Schedules A, B and C. 
After the Closing, the parties will make consistent use of the
allocation specified in Schedules A, B and C for all Tax purposes and in all
filings, declarations and reports with the IRS (and other Tax authorities) in
respect thereof. Any adjustment to the Purchase Price will be allocated pro
rata to the items listed in Schedules A, B and C based on the relative fair market
values of the assets on the Closing Date.

 

ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF THE SELLERS

 

The Sellers jointly and
severally represent and warrant to the Purchasers that as of the Closing Date
the statements set forth in this Article 3 are true and correct, except,
subject to Section 8.8, as set forth on the disclosure schedule delivered
by the Sellers to the Purchasers concurrently with the execution and delivery
of this Agreement and dated as of the Closing Date (the “Seller Disclosure
Schedule”):

 

Section 3.1             Organization and Good Standing.  Each Acquired Company is a corporation or
limited liability company duly organized, validly existing and in good standing
(where applicable) under 

 

[***] = Confidential Treatment requested for
redacted portion; redacted portion has been filed separately with the
Commission.

 

13

 

 

the Laws of the jurisdiction of
its incorporation and has all requisite corporate power and authority to own,
lease and operate its properties and assets and to conduct its business as
presently conducted.  Each Acquired
Company is duly qualified or licensed to do business and, where applicable as a
legal concept, is in good standing as a foreign corporation in each
jurisdiction in which the character of the properties it owns, operates or
leases or the nature of its activities makes such qualification or license
necessary except where such failure to be so qualified or licensed or in good
standing has not had or would not reasonably be expected to have a Material
Adverse Effect.  Section 3.1(a) of
the Seller Disclosure Schedule sets forth an accurate and complete list of each
Acquired Company’s jurisdiction of formation and the other jurisdictions in
which it is authorized to do business, and an accurate and complete list of the
current directors and officers of each Acquired Company.  The Sellers have delivered to the Purchasers
accurate and complete copies of the certificate of incorporation and bylaws or
other comparable charter or organizational documents of each Acquired Company,
as currently in effect, and no Acquired Company is in default under or in
violation of any provision thereof.  [***] are the sole members of AGIP, and AGIP
was formed on October 5, 2007 for the sole purpose of acquiring the IP
Assets.  AGIP has not conducted any
business, incurred any liability or entered into any contract since its
formation other than to the extent provided for or contemplated in this
Agreement.

 

Section 3.2             Authority and Enforceability.  Each Seller has all requisite power,
authority and capacity to execute and deliver this Agreement and each of the
Ancillary Agreements to which such Seller is a party and to perform such Seller’s
obligations under this Agreement and each such Ancillary Agreement.  The execution, delivery and performance of
this Agreement and the Ancillary Agreements have been duly authorized by all
necessary action on the part of the Sellers. 
This Agreement has been duly executed and delivered by each Seller and
constitutes the legal, valid and binding obligation of each Seller, enforceable
against each Seller in accordance with its terms subject to the effects of
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
other similar laws relating to or affecting creditors’ rights generally and
general equitable principles (whether considered in a proceeding in equity or
at law).  Upon the execution and delivery
by the Sellers of the Ancillary Agreements, the Ancillary Agreements will constitute
the legal, valid and binding obligations of the Sellers party thereto,
enforceable against such Sellers in accordance with their terms subject to the
effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar laws relating to or affecting creditors’ rights
generally and general equitable principles (whether considered in a proceeding
in equity or at law).

 

Section 3.3             No Conflict.  Except as set forth on Section 3.3 of
the Seller Disclosure Schedule, neither the execution and delivery of this
Agreement, nor the consummation or performance of the transactions contemplated
by this Agreement, will (a) directly or indirectly (with or without
notice, lapse of time or both) conflict with, result in a breach or violation
of, constitute a default (or give rise to any right of termination,
cancellation, acceleration, suspension or modification of any obligation or
loss of any benefit) under, result in any payment becoming due under, or result
in the imposition of any Encumbrances on any of the Equity Interests or any of
the properties or assets of any Acquired Company under (i) the certificate
of incorporation, bylaws or other comparable charter or organizational
documents of any Acquired Company, or any resolution adopted by the Sellers or
the board of directors of any Acquired Company, (ii) any Governmental
Authorization or Contract to which any Acquired Company or any Seller is a
party or by which any Acquired Company or any Seller is bound or to which any
of their respective properties or assets is subject or (iii) any Law or
Judgment applicable to any Acquired Company or any Seller or any of their
respective properties or assets;
or (b) require any Acquired Company or any Seller to obtain any consent,
waiver, approval, ratification, permit, license, Governmental Authorization or
other authorization of, give any notice to, or make any filing or registration
with, any Governmental Authority or other Person, except, in the case of the
foregoing clauses (ii) and (iii), as would not have or be reasonably
likely to have a Material Adverse Effect.

 

[***] = Confidential Treatment requested for
redacted portion; redacted portion has been filed separately with the
Commission.

 

14

 

 

Section 3.4             Capitalization and Ownership.

 

(a)           The authorized share capital of the Company consists
solely of (i) 846 Class A shares, par value $1.00 (“Class A
Shares”), of which 846 shares are issued and outstanding and no shares are
held in treasury; and (ii) 1,154 Class B shares, par value $1.00 (“Class B
Shares”), of which 355 shares are issued and outstanding and 799 shares are
held in treasury.  The Shares represent
all of the issued and outstanding Class A Shares and Class B
Shares.  The Membership Interests represent
all of the issued and outstanding membership interests in AGIP.  As of the Closing Date, the Sellers are the
sole record holders and beneficial owners of all of the Equity Interests, free
and clear of all Encumbrances, in the respective amounts set forth in Schedule
A and Schedule B.

 

(b)           Section 3.4(b) of the Seller Disclosure Schedule
sets forth for each Subsidiary (i) its name and jurisdiction of
incorporation or organization, (ii) its authorized capital stock (or
equivalent) and (iii) the number of issued and outstanding (or equivalent)
shares of capital stock, the record and beneficial owners thereof and the
number of shares held in treasury (or equivalent).  No Acquired Company owns, controls or has any
rights to acquire, directly or indirectly, any capital stock or other equity
interests or debt instruments of
any Person, except for the Subsidiaries. 
Except as set forth in Section 3.4(b) of the Seller Disclosure
Schedule, all of the outstanding equity securities and other securities of each
Subsidiary are owned of record and beneficially by one or more of the Acquired
Companies, free and clear of all Encumbrances, in the respective amounts set
forth in Section 3.4(b) of the Seller Disclosure Schedule.

 

(c)           Except as set forth in this Section 3.4 or in Section 3.4(c) of
the Seller Disclosure Schedule, (i) there are no equity securities of any
class of any Acquired Company, or any security exchangeable into or exercisable
for such equity securities, issued, reserved for issuance or outstanding and (ii) there
are no options, warrants, equity securities, calls, rights or other Contracts
to which any Acquired Company is a party or by which any Acquired Company is
bound obligating any Acquired Company to issue, exchange, transfer, deliver or
sell, or cause to be issued, exchanged, transferred, delivered or sold,
additional shares of capital stock or other equity interests of any Acquired
Company or any security or rights convertible into or exchangeable or
exercisable for any such shares or other equity interests, or obligating any
Acquired Company to grant, extend, accelerate the vesting of, otherwise modify
or amend or enter into any such option, warrant, equity security, call, right,
or Contract.  Except as set forth in Section 3.4(c) of
the Seller Disclosure Schedule, there are no Contracts to which any Acquired
Company or any Seller or any Affiliate of any Acquired Company or any Seller is
a party, or by which any Acquired Company or any Seller is bound, with respect
to the voting (including voting trusts or proxies), registration under the
Securities Act of 1933 (the “Securities Act”) or any foreign securities
Law, or the sale or transfer (including Contracts imposing transfer
restrictions), of any shares of capital stock or other equity interests of any
Acquired Company.  Except as set forth in
Section 3.4(c) of the Seller Disclosure Schedule, no holder of
Indebtedness of any Acquired Company has any right to convert or exchange such
Indebtedness for any equity securities or other securities of any Acquired
Company, and no holder of Indebtedness of any Acquired Company has any rights
to vote for the election of directors of any Acquired Company or to vote on any
other matter.

 

(d)           All of the Equity Interests and the issued and outstanding
(or equivalent) equity securities of each Subsidiary are duly authorized,
validly issued, fully paid (in the case of issued and outstanding Shares),
nonassessable, not subject to or issued in violation of any purchase option,
right of first refusal, preemptive right, subscription right or any similar
right and have been issued in compliance with all applicable Laws.  No legend or other reference to any purported
Encumbrance appears on any certificate representing the Equity Interests or any
equity securities of any Subsidiary.

 

(e)           There are no obligations, contingent or otherwise, of any
Acquired Company to repurchase, redeem or otherwise acquire any shares of
capital stock, or other equity interests, of any 

 

[***] = Confidential Treatment requested for
redacted portion; redacted portion has been filed separately with the
Commission.

 

15

 

 

Acquired Company.  No Acquired Company is subject to any obligation
or requirement to provide funds to or make any investment (in the form of a
loan, capital contribution or otherwise) in any subsidiary or any other Person.

 

Section 3.5             Financial Statements.

 

(a)           Attached as Section 3.5 of the Seller Disclosure
Schedule are the following financial statements (collectively, the “Financial
Statements”):

 

(i)            an audited consolidated balance
sheet of the Agoda Companies as of December 31, 2006 (the “Balance
Sheet”) and the related audited consolidated and consolidating statements
of income, changes in shareholders’ equity and cash flow for the fiscal year
then ended, including in each case any notes thereto, together with the report
thereon of Morison (Mauritius), independent certified public accountants; and

 

(ii)           an unaudited consolidated balance
sheet of the Agoda Companies as of September 30, 2007 (the “Interim
Balance Sheet”) and the related unaudited consolidated statement of income
and changes in shareholders’ equity for the nine months then ended.

 

(b)           Except as set forth in Section 3.5(b) of the
Seller Disclosure Schedule, the Financial Statements (including the notes
thereto) are correct and complete in all material respects, are consistent with
the books and records of the Agoda Companies and have been prepared in
accordance with GAAP, consistently applied throughout the periods involved
(except that the interim financial statements are subject to normal recurring
year-end adjustments, the effect of which will not, individually or in the
aggregate, be material, and the absence of notes that, if presented, would not
differ materially from the notes to the Balance Sheet).  The Financial Statements fairly present the
financial condition and the results of operations, changes in shareholders’
equity and cash flow of the Agoda Companies as of the respective dates and for
the periods indicated therein, all in accordance with GAAP.  No financial statements of any Person other
than the Agoda Companies are required by GAAP to be included in the financial
statements of the Company.

 

Section 3.6             Books and Records.  The books of account, minute books, stock
record books and other records of the Acquired Companies, all of which have
been made available to the Purchaser, are accurate and complete in all material respects.  At the time of the Closing, all of such books
and records will be in the possession of the respective Acquired Company.

 

Section 3.7             Accounts Receivable; Bank
Accounts.

 

(a)           Subject to any reserves set forth in the Financial
Statements, the accounts receivable shown on the Financial Statements represent
valid, bona fide claims against debtors for sales and other charges. The amount
carried for doubtful accounts and allowances disclosed in the Financial
Statements was calculated in accordance with GAAP and in a manner consistent
with prior periods.  To the Sellers’
Knowledge, there is no contest, claim, defense or right of setoff, other than
returns in the ordinary course of business, relating to the amount or validity
of such accounts receivable.

 

(b)           Section 3.7(b) of the Seller Disclosure Schedule
sets forth an accurate and complete list of the names and addresses of all
banks and financial institutions in which any Acquired Company has an account,
deposit, safe-deposit box, line of credit or other loan facility or
relationship, or lock box or other arrangement for the collection of accounts
receivable, with the names of all Persons authorized to draw or borrow thereon
or to obtain access thereto.

 

[***] = Confidential Treatment requested for
redacted portion; redacted portion has been filed separately with the
Commission.

 

16

 

 

Section 3.8             No Undisclosed Liabilities.  No Acquired Company has any Liability that is
required to be disclosed on a balance sheet prepared in accordance with GAAP
that is not reflected on the Interim Balance Sheet except for Liabilities
incurred in the ordinary course of business after the date of the Interim
Balance Sheet and which are similar in nature and amount to the Liabilities
which arose during the comparable period of time in the immediately preceding
fiscal period.  The Estimated Closing
Balance Sheet, when delivered under Section 2.3, has been prepared in
accordance with GAAP, in a manner consistent with the methods and practices
used to prepare the Interim Balance Sheet, and presents the [***] and the other information set forth
therein, in compliance with the applicable provisions of Section 2.3.

 

Section 3.9             Absence of Certain Changes and
Events.  Except as set forth in Section 3.9
of the Seller Disclosure Schedule, since the date of the Balance Sheet, each
Acquired Company has conducted its business only in the ordinary course of
business and there has not been any Material Adverse Effect.  Without limiting the generality of the
foregoing, except as set forth in Section 3.9 of the Seller Disclosure
Schedule, since the date of the Balance Sheet, there has not been with respect
to any Acquired Company any:

 

(a)           amendment to its articles of
incorporation or bylaws or other comparable charter or organizational
documents;

 

(b)           change in its authorized (or
equivalent) or issued capital stock, or issuance, sale, grant, repurchase,
redemption, pledge or other disposition of or Encumbrance on any shares of its
capital stock or other voting securities or any securities convertible,
exchangeable or redeemable for, or any options, warrants or other rights to
acquire, any such securities;

 

(c)           split, combination or
reclassification of any of its capital stock;

 

(d)           declaration, setting aside or payment
of any dividend or other distribution (whether in cash, securities or other
property) in respect of its capital stock (other than dividends and
distributions by a Subsidiary to the Company);

 

(e)           (i) incurrence of any
Indebtedness, (ii) issuance, sale or amendment of any of its debt
securities or warrants or other rights to acquire any of its debt securities,
guarantee of any debt securities of another Person, entry into any “keep well”
or other Contract to maintain any financial statement condition of another
Person or entry into any arrangement having the economic effect of any of the
foregoing, (iii) loans, advances (other
than routine advances to its employees in the ordinary course of business)
or capital contributions to, or investment in, any other Person, other than the
Company or any Subsidiary and other than in accordance with the Company’s cash
investment policy as described in Section 3.9(e) of the Seller
Disclosure Schedule or (iv)  entry into any hedging Contract or other
financial agreement or arrangement designed to protect any Acquired Company
against fluctuations in commodities prices or exchange rates;

 

(f)            sale, lease, license, pledge or
other disposition of or Encumbrance on any of its properties or assets, except
in the ordinary course of business consistent with past practice;

 

(g)           acquisition (i) by merger or
consolidation with, or by purchase of all or a substantial portion of the
assets or any stock of, or by any other manner, any business or Person or (ii) any
assets that are material to any
Acquired Company individually or in the aggregate, except purchases of
inventory and raw materials in the ordinary course of business;

 

[***] = Confidential Treatment requested for
redacted portion; redacted portion has been filed separately with the
Commission.

 

17

 

 

(h)           damage to, or destruction or loss of,
any of its assets or properties with an aggregate value to any Acquired Company
in excess of [***], whether or not
covered by insurance;

 

(i)            entry into, modification,
acceleration, cancellation or termination of, or receipt of notice of
termination of, any Contract (or series of related Contracts) which involves a
total remaining commitment by or to any Acquired Company of at least [***] or otherwise outside the ordinary course
of business;

 

(j)            (i) except as required by Law,
adoption, entry into, termination or amendment of any (A) collective
bargaining agreement, (B) Company Plan applicable to (1) any of its
directors, officers or [***] highest paid
employees (collectively, the “Key Employees”) or (2) all or
substantially all of its other employees generally, (C) employment,
severance or similar Contract applicable to (1) any Key Employee or (2) any
other employee or consultant that represents an annual expenditure by the
Acquired Companies equal to or greater than [***]
per applicable individual, (ii) increase (A) in the
compensation or fringe benefits of, or payment of any bonus to any Key Employee
or (B) greater than [***] (based on
total compensation for each applicable individual) in the compensation or
fringe benefits of, or payment of any bonus to, any other employee or
consultant or other independent contractor, (iii) amendment or
acceleration of the payment, right to payment or vesting of any compensation or
benefits, (iv) payment of any benefit not provided for as of the date of
this Agreement under any Company Plan, (v) grant of any awards under any
bonus, incentive, performance or other compensation plan or arrangement or
benefit plan, including the grant of stock options, stock appreciation rights,
stock based or stock related awards, performance units or restricted stock, or
the removal of existing restrictions in any Company Plans or Contracts or
awards made thereunder or (vi) any action other than in the ordinary
course of business to fund or in any other way secure the payment of
compensation or benefits under any Company Plan;

 

(k)           cancellation, compromise, release or
waiver of any claims or rights (or series of related claims or rights) with a
value exceeding [***] or otherwise
outside the ordinary course of business;

 

(l)            settlement or compromise in
connection with any Proceeding;

 

(m)          capital expenditure or other
expenditure with respect to property, plant or equipment in excess of [***] in the aggregate for the Acquired
Companies taken as a whole;

 

(n)           change in accounting principles,
methods or practices or investment practices, including any changes as were
necessary to conform with GAAP;

 

(o)           change in payment or processing
practices or policies regarding intercompany transactions;

 

(p)           other than in the ordinary course of
business consistent with past practice, acceleration or delay in the payment of
accounts payable or other Liabilities or in the collection of notes or accounts
receivable;

 

(q)           making or rescission of any Tax
election, settlement or compromise of any Tax Liability or amendment of any Tax
Return; or

 

[***] = Confidential Treatment requested for
redacted portion; redacted portion has been filed separately with the
Commission.

 

18

 

 

(r)            authorization of or Contract by any
Acquired Company to take any of the actions described in this Section 3.9.

 

Section 3.10           Assets.  Each Acquired Company has good and marketable
title to, or in the case of leased assets, valid leasehold interests in, all of
its assets, tangible or intangible, free and clear of any Encumbrances other
than Permitted Encumbrances.  Each
Acquired Company owns or leases all tangible personal property used in or
necessary to conduct its business as conducted by the Acquired Companies.  Each such material item of tangible personal
property is in all material respects
in good operating condition and repair, ordinary wear and tear excepted.  Agoda Singapore has received good and
marketable title to the AAP Assets free and clear of any Encumbrances other
than Permitted Encumbrances.

 

Section 3.11           Leased Real Property.

 

(a)           No Acquired Company owns any real property, nor has any
Acquired Company ever owned any real property.

 

(b)           Section 3.11(b) of the Seller Disclosure Schedule
sets forth an accurate and complete description of all real property (including
the date end term of the lease, and the aggregate annual rent payable
thereunder) in which any Acquired Company has a leasehold or subleasehold
estate or other right to use or occupy (collectively, the “Leased Real
Property”).  The Sellers have
delivered to the Purchasers accurate and complete copies of all leases and
other Contracts granting a right in or relating to the Leased Real Property and all Contracts and other documents
evidencing, creating or constituting Encumbrances upon or rights in the Leased
Real Property.

 

(c)           Each Acquired Company holds valid leasehold interests in
its Leased Real Property, free and clear of any Encumbrances other than
Permitted Encumbrances.

 

(d)           To the Knowledge of the Sellers, use of the Leased Real
Property for the various purposes for which it is presently being used is
permitted as of right under applicable zoning Laws and is not subject to “permitted
non-conforming” use or structure classifications (or the equivalent under local
law).

 

(e)           No Person other than an Acquired Company is in possession
of any portion of the Leased Real Property. 
No Acquired Company has granted to any Person the right to use or occupy
any portion of any parcel of Leased Real Property, and no Acquired Company has
received notice, and the Sellers have no Knowledge, of any claim of any Person
to the contrary.

 

Section 3.12           Intellectual Property.

 

(a)           Each Acquired Company owns or otherwise possesses valid
and legally enforceable rights to use all Intellectual Property owned, created,
acquired, licensed or used by the respective Acquired Companies as of the
Closing Date, except for the specific service mark applications listed on
Schedule 3.12(a)(i) (but not including any common law or equivalent rights
in the relevant jurisdictions) which applications are owned by AGIP (the “Company
Intellectual Property”).  The Company
Intellectual Property constitutes all of the Intellectual Property used in or
necessary to conduct the businesses of the Acquired Companies as conducted by
the Acquired Companies.  One or more of
the Acquired Companies are the sole owners of, and have valid title to, all of
the Company Intellectual Property, other than the Third Party Intellectual
Property listed in the Seller Disclosure Schedule pursuant to Section 3.12(c)
(the “Owned Intellectual Property”). 
Section 3.12(a)(ii) of the Seller Disclosure Schedule sets
forth a complete and accurate list of all material Owned Intellectual Property.
 Immediately after the Closing, one 

 

[***] = Confidential Treatment requested for
redacted portion; redacted portion has been filed separately with the
Commission.

 

19

 

 

or more of the Acquired
Companies will be the sole owners of, and will have valid title to, the Owned
Intellectual Property, and will have the full right to use, license and
transfer the Company Intellectual Property in the same manner and on the same
terms and conditions that the Acquired Companies had immediately prior to the
Closing, except to the extent the Purchasers sell, assign or transfer such
Owned Intellectual Property.

 

(b)           With respect to the Owned Intellectual Property, Section 3.12(b) of
the Seller Disclosure Schedule sets forth a complete and accurate list of the
following for each of the Acquired Companies (together): (i) all patents
and patent applications, registered trademarks and service marks, including
applications for the same, Internet domain names, and copyright registrations
and applications, indicating for each, the applicable jurisdiction,
registration number (or application number) and date issued (or date filed),
and (ii) each computer software item created by or for any Seller or
Acquired Company and used in the Business. 
Section 3.12(b) also identifies all Contracts under which any
Acquired Company or A.T. has licensed or otherwise granted rights in any of the
Owned Intellectual Property to any Person (except for licenses implied by the
sale of a product or service to customers in the ordinary course of business or
as permitted by Sellers under the standard terms of use policy as may be posted
to the websites of the Agoda Companies and attached as Exhibit K in the
ordinary course of business).

 

(c)           Section 3.12(c) of the Seller Disclosure
Schedule sets forth a complete and accurate list of the Intellectual Property
that any third party (excluding A.T.) has licensed or sublicensed to any
Acquired Company or otherwise authorized any Acquired Company to use, to the extent
such Intellectual Property is currently used in the Business (the “Third
Party Intellectual Property”), including a list of the related Contracts
(but excluding software licensed to an Acquired Company under generally
available retail shrinkwrap or clickwrap licenses and used in the Acquired
Company’s business, but not incorporated into software, products or services
licensed, sold, distributed or otherwise made available or anticipated to be
licensed, sold, distributed or otherwise made available by any Acquired Company
to customers or otherwise resold or distributed by any Acquired Company).  No Acquired Company has granted any
sublicense or similar right to any third party with respect to any such Third
Party Intellectual Property.

 

(d)           The Owned Intellectual Property is free of all
Encumbrances other than Permitted Encumbrances and is not subject to any
Proceeding, Judgment or Contract that limits or restricts its use anywhere in
the world.  To the Sellers’ Knowledge, no
Person has any rights in the Owned Intellectual Property that could cause
termination of any Acquired Company’s rights in the Owned Intellectual
Property.

 

(e)           All patents and registered and unregistered trademarks,
service marks and copyrights included in the Company Intellectual Property are
valid and subsisting under applicable Law for those respective categories of
Intellectual Property, except as set forth in Schedule 3.12(e) of the
Seller Disclosure Schedule.  The Seller
Representative has delivered to the Purchasers accurate and complete copies of
all patents, registrations and applications, each as amended to date, included
in the Owned Intellectual Property and all other written documentation
evidencing ownership and prosecution of each such item.

 

(f)            No Acquired Company has agreed to indemnify, defend or
otherwise hold harmless any other Person with respect to Losses resulting or
arising from the Company Intellectual Property, except under those Contracts
summarized or described in Section 3.12(c) of the Seller Disclosure
Schedule.

 

(g)           To the Sellers’ Knowledge, no Person has infringed or
misappropriated any of the Company Intellectual Property, other than as set
forth in Section 3.12(g) of the Seller Disclosure Schedule.  Immediately after the Closing, one or more of
the Acquired Companies will have sole rights to

 

[***] = Confidential Treatment requested for
redacted portion; redacted portion has been filed separately with the
Commission.

 

20

 

 

 

bring
actions for infringement or misappropriation of the Owned Intellectual
Property.  No Acquired Company (or A.T.)
has commenced or threatened any Proceeding, or asserted any allegation or
claim, against any Person for infringement or misappropriation of the Company
Intellectual Property or breach of any Contract involving the Company
Intellectual Property, except set forth in Section 3.12(d) of the
Seller Disclosure Schedule.

 

(h)           Except as set forth in Section 3.12(h) of the
Seller Disclosure Schedule, to the Sellers’ Knowledge, neither the conduct of
the Business nor the Acquired Companies’ (or A.T.’s) creation, use, license or
other transfer of the Company Intellectual Property infringe or misappropriate
any other Person’s Intellectual Property rights.  No Acquired Company (or A.T.) has received
notice of any pending or threatened Proceeding or any allegation or claim in
which any Person alleges that an Acquired Company (or A.T.), its business or
the Company Intellectual Property has violated any Person’s Intellectual
Property rights.  There are no pending
disputes between any Acquired Company (or A.T.) and any other Person relating
to the Company Intellectual Property.

 

(i)            Each Acquired Company and A.T. (while it owned the IP
Assets) has taken all commercially reasonable steps necessary to protect and
preserve each material item of Company Intellectual Property, including any
trade secrets included in the Company Intellectual Property.  Each Acquired Company has taken all
commercially reasonable steps necessary to comply with any duties of the
Acquired Company to protect the confidentiality of information provided to the
Acquired Company by any other Person. 
Except as set forth in Section 3.12(i) of the Seller
Disclosure Schedule, each Acquired Company and A.T. (with respect to the IP
Assets) has obtained from each current and former employee, consultant and
other independent contractor with
access to Company Intellectual Property an assignment of any and all
rights in and to all Owned Intellectual Property, except to the extent that all
such rights inure to the ownership of the Acquired Company (or A.T.) upon
creation.

 

(j)            Each Acquired Company takes commercially reasonable steps
at all times to assure that all software and data residing on its computer
networks or licensed or otherwise distributed to customers is free of viruses
and other disruptive technological means. 
The Owned Intellectual Property does not and, to the Sellers’ Knowledge,
the Third Party Intellectual Property does not, contain any computer code or
other mechanism of any kind designed to disrupt, disable or harm in any manner
the operation of any software or hardware or other business processes or to
misuse, gain unauthorized access to or misappropriate any business or personal
information, including worms, bombs, backdoors, clocks, timers, or other
disabling device code, or designs or routines that cause software or
information to be erased, inoperable, or otherwise incapable of being used,
either automatically or with passage of time or upon command.

 

(k)           Except as set forth in Schedule 3.12(k), the computer
software source and object code underlying or utilized in connection with the
Owned Intellectual Property does not incorporate, depend upon or require for
its functionality any source or object code or other Intellectual Property that
is not wholly-owned by the Acquired Company purporting to own such Intellectual
Property.  None of the Owned Intellectual
Property and, to the Sellers’ Knowledge, none of the Third Party Intellectual
Property, was developed using any Governmental Authority or university funding
or facilities, nor was it obtained from a Governmental Authority or
university.  No Acquired Company is a
member of, and no Acquired Company is obligated to license or disclose any
Intellectual Property to, any official or de facto standards setting or similar
organization or to any organization’s members. 
None of the Owned Intellectual Property, and, to the Sellers’ Knowledge,
none of the Third Party Intellectual Property, includes any software of the
type commonly referred to as “freeware” or “shareware,” or that is subject to
any form of “GNU,” “Mozilla,” or other public license.

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

21

 

 

Section 3.13           Contracts.

 

(a)           Section 3.13(a) of the Seller Disclosure
Schedule sets forth an accurate and complete list of each Contract (or group of
related Contracts) to which any Acquired Company is a party, by which any
Acquired Company is bound or pursuant to which any Acquired Company is an
obligor or a beneficiary, which:

 

                (i)            involves performance of services, the performance of
which extends over a period of more than six months or that otherwise involves
an amount or value in excess of [***];

 

                (ii)           is for capital expenditures in excess of [***];

 

                (iii)          is a mortgage, indenture, guarantee, loan or credit
agreement, security agreement or other Contract relating to Indebtedness, other
than accounts receivables and payables in the ordinary course of business;

 

                (iv)          is a lease or sublease of any real or personal property, or
that otherwise affects the ownership of, leasing of, title to, or use of, any
real or personal property (except personal property leases and conditional
sales agreements having a value per item or aggregate payments of less than [***] and a term of less than one year);

 

                (v)           is a license or other Contract under which any Acquired
Company has licensed or otherwise granted rights in any Company Intellectual
Property to any Person (except for the IP License) or any Person has licensed
or sublicensed to any Acquired Company, or otherwise authorized any Acquired
Company to use, any Third Party Intellectual Property (except for software
licensed to an Acquired Company under generally available retail shrinkwrap or
clickwrap licenses and used in the Acquired Company’s business, but not
incorporated into software, products or services licensed or sold, or
reasonably anticipated to be licensed or sold, by any Acquired Company to
customers or otherwise resold or distributed by any Acquired Company);

 

                (vi)          is for the employment of, or receipt of any services from,
any director or officer of an Acquired Company or any other Person on a
full-time, part-time, consulting or other basis providing annual compensation
by the Acquired Companies in excess of [***];

 

                (vii)         provides for severance, termination or similar pay to any of
the Acquired Companies’ current or former directors, officers, employees or
consultants or other independent contractors;

 

                (viii)        provides for a loan or advance of any amount to any director
or officer of any Acquired Company,
other than advances for travel and other appropriate business expenses in the
ordinary course of business;

 

                (ix)           licenses any Person to manufacture or reproduce any of the
Acquired Companies’ products, services or technology, or any Contract in excess
of [***] to sell or distribute any of the
Acquired Companies’ products, services or technology;

 

                (x)            is an affiliate marketing agreement or other Contract to
drive traffic to Acquired Companies’ products, services or technology
generating more than [***] in commissions
or not made during the ordinary course of business on terms substantially
similar to the Acquired Companies’ affiliate marketing agreement as set forth
in Exhibit M;

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

22

 

 

                (xi)           is a joint venture, partnership or other Contract
involving any joint conduct or sharing of any business, venture or enterprise,
or a sharing of profits or losses or pursuant to which any Acquired Company has
any ownership interest in any other Person or business enterprise other than
the Subsidiaries;

 

                (xii)          is an agency or distribution agreement or arrangement;

 

                (xiii)         contains any covenant limiting the right of any Acquired
Company to engage in any line of business or to compete (geographically or
otherwise) with any Person, granting any exclusive rights to make, sell or
distribute any Acquired Company’s products or services, granting any “most
favored nations” or similar rights or otherwise prohibiting or limiting the
right of any Acquired Company to make, sell or distribute any products or
services;

 

                (xiv)        involves payments in excess of [***] (including rebates and commissions) based, in whole or in
part, on profits, revenues, sales, fee income or other financial performance
measures of any Acquired Company, including rebate or commission agreements
with hotels and hotel inventory resellers that are reimbursed based on Acquired
Company sales;

 

                (xv)         is a power of attorney granted by or on behalf of any
Acquired Company;

 

                (xvi)        is a written warranty, guaranty or other similar undertaking
with respect to contractual performance extended by an Acquired Company other
than in the ordinary course of business;

 

                (xvii)       provides insurance with respect to the business, properties,
assets or operations of any Acquired Company;

 

                (xviii)      is a settlement agreement with respect to any pending or
threatened Proceeding entered into within three years prior to the date of this
Agreement, other than (A) releases immaterial in nature or amount entered
into with former employees or independent contractors of any Acquired Company
in the ordinary course of business in connection with routine cessation of such
employee’s or independent contractor’s employment with any Acquired Company or (B) settlement
agreements for cash only (which has been paid) and does not exceed [***] as to such settlement;

 

                (xix)         was entered into other than in the ordinary course of
business and that involves an amount or value in excess of [***] or contains or provides for an express
undertaking by an Acquired Company to be responsible for consequential damages;
or

 

                (xx)          is otherwise material to the business, properties or assets
of the Acquired Companies taken as a whole or under which the consequences of a
default or termination could result in a Material Adverse Effect.

 

(b)           The Sellers have delivered to the Purchasers an accurate
and complete copy of each of the Contracts required to be listed in Section 3.13(a) of
the Seller Disclosure Schedule.  With
respect to each such Contract required to be listed:

 

                (i)            the Contract is legal, valid, binding, enforceable and in
full force and effect except to the extent it has previously expired in
accordance with its terms;

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

23

 

 

                (ii)           no Acquired Company nor, to the Sellers’ Knowledge, any
other party to the Contract is in material breach or material default under the
Contract and no event has occurred or circumstance exists (including
transactions contemplated by this Agreement) that (with or without notice,
lapse of time or both) would constitute a material breach or material default
by any Acquired Company or, to the Sellers’ Knowledge, by any such other party
or permit termination, cancellation, acceleration, suspension or modification
of any material obligation or loss of any material benefit under, result in any payment becoming due under,
result in the imposition of any Encumbrances on any of the Equity Interests or
any of the properties or assets of any Acquired Company under, or otherwise
give rise to any right on the part of any Person to exercise any remedy or
obtain any relief under, the Contract, nor has any Acquired Company given or
received notice or other communication alleging the same; and

 

                (iii)          no party has repudiated any portion of the Contract.

 

(c)           Section 3.13(c) of the
Seller Disclosure Schedule sets forth details of all discounts, overriders,
rebates, reward programs and similar arrangements which are material to the
Business and offered or granted to each Acquired Company by its suppliers or by
each Acquired Company to third parties, including affiliate marketers and
customers.

 

(d)           To the Sellers’ Knowledge, no director, agent, employee or
consultant or other independent contractor of any Acquired Company is a party
to, or is otherwise bound by, any Contract, including any confidentiality,
noncompetition or proprietary rights agreement, with any other Person that
materially adversely affects (i) the performance of his or her duties for
the Acquired Companies, (ii) his or her ability to assign to any Acquired
Company rights to any invention, improvement, discovery or information relating
to the business of the Acquired Companies or (iii) the ability of any
Acquired Company to conduct its business as currently conducted.

 

(e)           None of the Acquired Companies are, and none of the
Acquired Companies at any time within the past five years have been, parties to
any Contract relating to the provision of goods or services to (i) any
Governmental Authority, (ii) any prime contractor to any Governmental
Authority or (iii) any subcontractor with respect to any Contract described
in clause (i) or (ii).

 

Section 3.14           Tax Matters.

 

(a)           All Tax Returns of the Acquired Companies required to be
filed on or before the Closing Date have been timely filed in accordance with
applicable Laws, and each such Tax Return is accurate and complete in all
material respects.  Each Acquired Company
has timely paid all Taxes due with respect to the taxable periods covered by
such Tax Returns.  No claim has ever been
made by a Governmental Authority in a jurisdiction where an Acquired Company
does not file a Tax Return that it is or may be subject to taxation by that
jurisdiction. The Acquired Companies have not requested an extension of time
within which to file any Tax Return which has not since been filed.

 

(b)           The Acquired Companies do not and will not have additional
Liability for Taxes with respect to any Tax Return which was required by
applicable Laws to be filed on or before the Closing Date, other than those
reflected as Liabilities in line items on the Balance Sheet.  The amounts reflected as Liabilities in line
items on the Balance Sheet for all Taxes are adequate to cover all unpaid
Liabilities for all Taxes, whether or not disputed, that have accrued with
respect to, or are applicable to, the period ended on and including the Closing
Date, regardless of whether the liability is shown on a Tax Return and
regardless whether the Tax return for that period has been filed.

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

24

 

 

(c)           All Taxes that each Acquired Company is required by Law to
withhold or collect, including sales and use Taxes and amounts required to be
withheld or collected in connection with any amount paid or owing to any
employee, independent contractor, creditor, shareholder, or other Person, have
been duly withheld or collected.  To the
extent required by applicable Law, all such amounts have been paid over to the
proper Governmental Authority or, to the extent not yet due and payable, are
held in separate bank accounts for such purpose.

 

(d)           No federal, state, local or foreign audits or other
Proceedings are pending or being conducted, nor has any Acquired Company
received any (i) notice from any Governmental Authority requesting
information related to Tax matters or that any such audit or other Proceeding
is pending, threatened or contemplated or (ii) notice of deficiency or
proposed adjustment for any amount of Tax proposed, asserted or assessed by any
Governmental Authority against any Acquired Company, with respect to any Taxes
due from or with respect to any Acquired Company or any Tax Return filed by or
with respect to any Acquired Company. 
The Acquired Companies have not granted or been requested to grant any
waiver of any statutes of limitations applicable to any claim for Taxes or with
respect to any Tax assessment or deficiency.

 

(e)           All Tax deficiencies that have been claimed, proposed or
asserted in writing against any Acquired Company have been fully paid or
finally settled, and no issue has been raised in writing in any examination
which, by application of similar principles, could be expected to result in the
proposal or assertion of a Tax deficiency for any other year not so examined.

 

(f)            None of the Acquired Companies has engaged in a “reportable
transaction” within the meaning of Section 6707A(c)(1) of the Code.

 

(g)           None of the Acquired Companies is a party to or bound by
any Tax sharing agreement, Tax indemnity obligation or similar Contract or
practice with respect to Taxes (including any advance pricing agreement,
closing agreement or other Contract relating to Taxes with any Governmental
Authority).

 

(h)           None of the Acquired Companies is or has been a member of
an affiliated group within the meaning of Section 1504(a) of the Code
(or any similar group defined under a similar provision of foreign, state or
local Law), other than a group of which the Company is the common parent, and
none of the Acquired Companies has any Liability for Taxes of any other Person
under Section 1.1502-6 of the Treasury Regulations (or any similar
provision of foreign, state or local Law), as a transferee or successor, by
Contract or otherwise.

 

(i)            None of the Acquired Companies is or has been a United
States real property holding corporation (as defined in Section 897(c)(2) of
the Code) during the applicable period specified in Section 897(c)(1)(A)(ii) of
the Code.

 

(j)            None of the Acquired Companies has participated in a
transaction described in section 355 of the Code for the two-year period ended
on the Closing Date.

 

(k)           There are no Encumbrances upon any properties or assets of
any Acquired Company arising from any failure or alleged failure to pay any Tax
(other than Encumbrances relating to Taxes not yet due and payable and for
which adequate reserves have been recorded in line items on the Balance Sheet).

 

(l)            The holder of the Convertible Debt has a tax basis in the
Convertible Debt for U.S. federal income tax purposes in an amount which is not
less than the face amount of the debt.

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

25

 

 

(m)          Immediately prior to the Closing, AGIP will be considered a
partnership for U.S. federal tax purposes, and AGIP has not made or filed any
entity classification election on Form 8832 since the date it was formed.

 

(n)           The Company is considered to own substantially all of the
economic benefits and burdens associated with the IP Assets for U.S. federal
income tax purposes.

 

Section 3.15           Employee Benefit Matters.

 

(a)           Section 3.15(a) of the Seller Disclosure
Schedule sets forth an accurate and complete list of all Company Plans.

 

(b)           The Seller Representative has delivered to the Purchasers
an accurate and complete copy of (i) each writing that sets forth the
terms of each Company Plan, including plan documents, plan amendments, any
related trusts, all summary plan descriptions and other summaries and
descriptions furnished to participants and beneficiaries, (ii) all
personnel, payroll and employment manuals and policies of each Acquired
Company, (iii) a written description of any Company Plan that is not
otherwise in writing, (iv) all registration statements filed with respect
to any Company Plan, (v) all insurance policies purchased by or to provide
benefits under any Company Plan, (vi) all reports submitted since December 31,
2004 by third-party administrators, actuaries, investment managers, trustees,
consultants or other independent contractors with respect to any Company Plan
and financial statements disclosing Liability for all obligations owed under
any Company Plan, and (vii) all notices required to be provided under
applicable law.

 

(c)           No Company Plan is intended to be qualified under Section 401(a) of
the Code and no Company Plan is subject to Section 409A of the Code.  None of the Company Plans are subject to
ERISA.  None of the Acquired Companies is
subject to the continuation coverage requirements of Sections 601 et seq. of
ERISA and Section 4980B of the Code, the Health Insurance Portability and
Accountability Act of 1996 and the Family Medical Leave Act 1993.  No stock options granted by an Acquired
Company are subject to Section 409A of the Code.  Each Company Plan that is intended to qualify
for tax-preferential treatment under applicable Law so qualifies and has
received, where required, approval from the applicable Governmental Authority
that it is so qualified and no event has occurred or circumstance exists that
may give rise to disqualification or loss of tax-preferential treatment.

 

(d)           None of the Acquired Companies has, or within the past six
(6) years has had, any ERISA Affiliates.

 

(e)           Each Company Plan is and at all times has been maintained,
funded, operated and administered, and the Acquired Companies have performed
all of their obligations under each Company Plan, in each case in accordance
with the terms of such Company Plan and in compliance in all material respects
with all applicable Laws.  All
contributions required to be made to any Company Plan by applicable Law and the
terms of such Company Plan, and all premiums due or payable with respect to
insurance policies funding any Company Plan, for any period through the Closing
Date, have been timely made or paid in full or, to the extent not required to
be made or paid on or before the Closing Date, have been fully reflected in
line items on the Interim Balance Sheet. 
All returns, reports and filings required by any Governmental Authority
or which must be furnished to any Person with respect to each Company Plan have
been filed or furnished.

 

(f)            No event has occurred or circumstance exists that could
reasonably be expected to result (i) in an increase in premium costs of
any Company Plan that is insured or (ii) an increase in the cost of any
Company Plan that is self-insured.  Other
than routine claims for benefits submitted by participants or

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

26

 

 

beneficiaries,
no claim against, or Proceeding involving, any Company Plan or any fiduciary
thereof is pending or, to the Sellers’ Knowledge, is threatened, which could
reasonably be expected to result in any Liability, direct or indirect (by
indemnification or otherwise) of any Acquired Company to any Governmental
Authority or any Person, and no event has occurred or circumstance exists that
could reasonably be expected to give rise to any such Liability.  No Proceeding has been concluded that
resulted in any Liability of any Acquired Company that has not been fully
discharged.

 

(g)           To the Sellers’ Knowledge, and to the extent not otherwise
required by Law, each Acquired Company has the right to modify and terminate
benefits (other than pensions) with respect to both retired and active
employees.  To the Sellers’ Knowledge,
each Company Plan sponsored by each Acquired Company permits assumption thereof
by the Purchasers or their subsidiaries upon the Closing without the consent of
the participants or any other Person.

 

(h)           All Benefit Obligations under any Company Plan as of the
Closing Date have been appropriately reflected on the financial statements of
the Company Plan sponsor in accordance with local law, past practice and
generally accepted accounting principles in each jurisdiction.  Except as disclosed in Section 3.15(h) of
the Seller Disclosure Schedule, each of the Company Plans providing retirement
benefits owns assets (including cash or insurance contracts) with a fair market
value, as of the Closing Date, equal to or greater than the greater of (i) the
Benefit Obligations under such plan or (ii) the projected benefit
obligation, as defined in the Statement of Financial Accounting Standards No. 87
using assumptions disclosed by the Sellers to the Purchasers, with respect to
all the participants covered by such plan.

 

(i)            The consummation of the transactions contemplated by this
Agreement (either alone or in conjunction with any other event) will not cause
accelerated vesting, payment or delivery of, or increase the amount or value of
any payment or benefit under or in connection with any Company Plan or
constitute a “deemed severance” or “deemed termination” under any Company Plan
otherwise with respect to, any director, officer, employee, or former director,
former officer or former employee of any Acquired Company.  No Acquired Company has made or has become
obligated to make, and no Acquired Company will as a result of the consummation
of the transactions contemplated by this Agreement become obligated to make,
any payments that could be nondeductible by reason of Section 280G of the
Code (without regard to subsection (b)(4) thereof) or Section 162(m) of
the Code (or any corresponding provision of foreign, state or local Law), nor
will any Acquired Company be required to “gross up” or otherwise compensate any
individual because of the imposition of any excise Tax on such a payment to the
individual.

 

(j)            Neither of the Purchasers, their respective Affiliates or
any of the Acquired Companies will assume or have any obligations or Liability
whatsoever with regard to any “employee pension benefit plan” as defined in Section 3(2) of
ERISA, each “employee welfare benefit plan”, as defined in Section 3(1) of
ERISA, and each agreement, plan, program, fund, policy, contract or arrangement
(whether written or unwritten) providing compensation, benefits, pension,
retirement, superannuation, profit sharing, stock bonus, stock option, stock
purchase, phantom or stock equivalent, bonus, thirteenth month, incentive,
deferred compensation, hospitalization, medical, dental, vision, vacation, life
insurance, death benefit, sick pay, disability, severance, termination
indemnity, redundancy pay, educational assistance, holiday pay, housing
assistance, moving expense reimbursement, fringe benefit or similar employee
benefits covering any employee, former employee, director or consultant of any
Person other than an Acquired Company, or the beneficiaries and dependents of
any employee or former employee, director or consultant of such Person.

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

27

 

 

Section 3.16           Employment and Labor Matters.

 

(a)           Section 3.16(a) of the Seller Disclosure
Schedule sets forth an accurate and complete list of all employees and
independent contractors currently performing services for any Acquired Company,
including each employee on leave of absence or layoff status, along with the
position, date of hire, engagement or seniority, compensation and
benefits.  To the Sellers’ Knowledge, no
Key Employee or group of employees of any Acquired Company has notified any
Acquired Company of an intention to terminate his, her or their employment with
the Acquired Companies within the 12-month period following the Closing Date.

 

(b)           No Acquired Company is, or has been, a party to or bound
by any collective bargaining, works council, employee representative or other
Contract with any labor union, works council, employee committee or
representative of any similar employee group, nor is any such Contract being
negotiated by any Acquired Company.  The
Sellers have no Knowledge of any union organizing, election or other activities
made or threatened at any time within the past three years by or on behalf of
any union, works council, employee committee or other labor organization or
group of employees with respect to any employees of any Acquired Company.  There is no union, works council, employee
committee, employee representative or other labor organization, which, pursuant
to applicable Law, must be notified, consulted or with which negotiations need
to be conducted connection with the transactions contemplated by this
Agreement.

 

(c)           Since July 1, 2002, no Acquired Company has
experienced any labor strike, picketing, lockout or other work stoppage or
labor dispute, nor to the Sellers’ Knowledge is any such action
threatened.  To the Sellers’ Knowledge,
no event has occurred or circumstance exists that may give rise to any such
action, nor does any Acquired Company contemplate a lockout of any employees.

 

(d)           Each Acquired Company has complied in all material respects with all applicable
Laws (including Occupational Safety and Health Laws) and its own policies
relating to labor and employment matters, including fair employment practices,
terms and conditions of employment, contractual obligations, equal employment
opportunity, nondiscrimination, immigration, wages, hours, benefits, workers’
compensation, the payment of social security and similar Taxes, occupational
safety and layoff or severance.

 

(e)           Except as set forth in Section 3.16(e) of the
Seller Disclosure Schedule, there is no Proceeding pending or, to the Sellers’
Knowledge, threatened against or affecting any Acquired Company relating to the
alleged violation by any Acquired Company (or its directors or officers) of any
Law pertaining to labor relations or employment matters.  To the Sellers’ Knowledge, no Acquired
Company has committed any unfair labor practice, nor, to the Sellers’
Knowledge, has there been any charge or complaint of unfair labor practice
filed or, to the Sellers’ Knowledge, threatened against any Acquired Company
before the National Labor Relations Board or any other Governmental
Authority.  There has been no complaint,
claim or charge of discrimination filed or, to the Sellers’ Knowledge,
threatened, against any Acquired Company with the Equal Employment Opportunity
Commission or any other Governmental Authority.

 

Section 3.17           Environmental Matters.

 

(a)           Each Acquired Company is, and for the last five years has
been, in material compliance with all, and not subject to any material
Liability under any, applicable Environmental Laws.  No Acquired Company has received any written
report regarding any actual or alleged violation of Environmental Laws,
including any investigatory, remedial or corrective obligations relating to any

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

28

 

 

Acquired
Company or any Leased Real Property.  To
the Knowledge of the Sellers and except as would not result in any material
Liability, no Hazardous Materials are present at any Leased Real Property.

 

Section 3.18           Compliance with Laws, Judgments
and Governmental Authorizations.

 

(a)           Except as set forth in Section 3.18(a) of the
Seller Disclosure Schedule, each Acquired Company has complied in all material respects with all, and
no Acquired Company has violated in any
material respect any, Laws, Judgments and Governmental Authorizations
applicable to it or to the conduct of its business or the ownership or use of
any of its properties or assets.  Except
as set forth in Section 3.18(a) of the Seller Disclosure Schedule, no
Acquired Company has received, at any time in the past three years, any written
notice or other communication from any Governmental Authority or any other
Person regarding any actual, alleged or potential violation of, or failure to
comply with, any Law, Judgment or Governmental Authorization, or any actual or
alleged obligation on the part of any Acquired Company to undertake, or to bear
all or any portion of the cost of, any remedial action of any nature.

 

(b)           Section 3.18(b) of the Seller Disclosure
Schedule sets forth an accurate and complete list of each material Governmental Authorization
that is held by each Acquired Company or that otherwise relates to the business
of, or any of the assets owned or used by, any Acquired Company, all of which
are valid and in full force and effect. 
To the Sellers’ Knowledge, the Governmental Authorizations listed in Section 3.18(b) of
the Seller Disclosure Schedule collectively constitute all of the material Governmental Authorizations
necessary to permit the Acquired Companies to conduct their businesses lawfully
in the manner in which they currently conduct such businesses and to permit the
Acquired Companies to own and use their assets in the manner in which they own
and use such assets.

 

(c)           Section 3.18(c) of the Seller Disclosure
Schedule sets forth an accurate and complete list of each Judgment to which any
Acquired Company, or any of the assets owned or used by any Acquired Company,
is or has been subject.  To the Sellers’
Knowledge, no director, officer, employee or agent of any Acquired Company is
subject to any Judgment that prohibits such director, officer, employee or
agent from engaging in or continuing any conduct, activity or practice relating
to the business of any Acquired Company.

 

Section 3.19           Corruption and Trade Regulation.

 

(a)           Except to the extent permitted by applicable Laws, neither
any Acquired Company, nor any of their respective officers, directors,
employees, consultants, representatives, agents or Affiliates (nor any Person
acting on behalf of any of the foregoing) has directly, or indirectly through a
third-party intermediary, paid, offered, given, promised to pay, or authorized
the payment of any money or anything of value (including any gift, sample,
travel, meal and lodging expense, entertainment, service, equipment, debt
forgiveness, donation, grant or other thing of value, however characterized) to
(i) any officer or employee of a Governmental Authority, (ii) any
Person acting for or on behalf of any Governmental Authority, (iii) any
political party or official thereof, (iv) any candidate for political
office or (v) any other Person at the suggestion, request, direction or
for the benefit of any of the above-described Persons.

 

(b)           Neither any Acquired Company, nor any of their respective
officers, directors, employees, consultants, representatives, agents or
Affiliates has violated or is in violation of any applicable anti-bribery Law,
including Laws implementing the OECD Convention on Combating Bribery of Foreign
Public Officials in International Business Transactions (to the extent
applicable).

 

(c)           All transactions of the Acquired Companies have been
properly and accurately recorded in all material respects on the books and
records of the Acquired Companies and each document on which

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed separately
with the Commission.

 

29

 

 

entries
in the Acquired Companies’ books and records are based (including purchase
orders, customer or company invoices and service agreements) is complete and
accurate in all material respects.

 

(d)           Each Acquired Company has made all payments to third
parties pursuant to valid Contracts or invoices and by check mailed to such
third parties’ principal place of business or by wire transfer to an account
held in the name of the third party in a bank located in the same jurisdiction
as such party’s principal place of business or to a place of business in a
jurisdiction where such third party performs service pursuant to a valid
Contract.

 

(e)           Neither any Acquired Company, nor any Person acting on
behalf of any Acquired Company, has, directly, or indirectly through a
third-party intermediary, entered into any Contract that remains in effect with
any Person resident in the following countries: Bahrain, Bangladesh, Indonesia,
Iraq, Kuwait, Lebanon, Libya, Oman, Qatar, Saudi Arabia, Syria, Taiwan, United
Arab Emirates, or Yemen and that contains provisions that would be prohibited
by or subject to penalty under the anti-boycott Laws of the United States.

 

(f)            Except to the extent permitted by applicable Laws or as
set forth in Section 3.19(f) of the Seller Disclosure Schedule, no
Acquired Company has at any time in the past five years engaged in the sale,
supply, purchase, import, export, re-export or transfer of products or
services, either directly or indirectly, to, from or within Cuba, Iran, Iraq,
Libya, Myanmar (Burma), North Korea, Sudan, or Syria (the “Certain Nations”),
or is a party to or beneficiary of, or has any interest in, any franchise,
license, management or other Contract with any Person, either public or
private, in the Certain Nations or in relation to the supply of services to,
from or within the Certain Nations, or is a party to any investment, deposit,
loan, borrowing or credit arrangement or involved in any other financial
dealings, with any Person, either public or private, in the Certain Nations.

 

(g)           Since July 1, 2002, except as set forth on Schedule
3.19(g) of the Seller Disclosure Schedule, all exports, re-exports, sales,
supplies or transfers of products or services of the Acquired Companies have
been effected in accordance with all applicable Laws, including
anti-corruption, customs, export control, trade sanctions, anti-terrorism and
anti-boycott Laws of the United States or any other relevant jurisdiction.

 

Section 3.20           Legal Proceedings.  Section 3.20 of the Seller Disclosure
Schedule sets forth an accurate and complete list of all pending Proceedings (a) by
or against any Acquired Company or any of the properties or assets owned,
leased or operated by any Acquired Company, (b) to the Sellers’ Knowledge,
by or against any of the directors or officers of the Acquired Companies in
their capacities as such or (c) that challenge, or that may have the
effect of preventing, delaying, making illegal or otherwise interfering with,
any of the transactions contemplated by this Agreement.  Except as set forth in Section 3.20 of
the Seller Disclosure Schedule, to the Sellers’ Knowledge, no other such
Proceeding has been threatened.  The
Sellers have delivered to the Purchasers accurate and complete copies of all
pleadings, correspondence, audit response letters and other documents relating
to such Proceedings.

 

Section 3.21           Customers and Suppliers.  Section 3.21 of the Seller Disclosure
Schedule sets forth an accurate and complete list of details regarding the
Acquired Companies’ [***] largest direct
hotel suppliers as of September 18, 2007 and the Acquired Companies’ [***] largest wholesale, tour operator and
other indirect hotel suppliers as of August 31, 2007.  There exists no actual, and the Sellers have
no Knowledge of any threatened, termination, cancellation or material
limitation of, or any material change in, the business relationship of any
Acquired Company with any customer, supplier, group of customers or group of
suppliers listed in Section 3.21 of the Seller Disclosure Schedule.  To the Sellers’ Knowledge, no customer or
supplier so listed has indicated within the past [***] that it will stop or materially decrease

 

[***] = Confidential Treatment requested for redacted portion; redacted
portion has been filed separately with the Commission.

 

30

the rate of its
transactions, or otherwise materially change its business relationship, with
any Acquired Company.

Section 3.22           Insurance.  Section 3.22 of the Seller Disclosure
Schedule sets forth an accurate and complete list of all certificates of insurance,
binders for insurance policies and insurance maintained by any Acquired
Company, or under which any Acquired Company has been the beneficiary of
coverage at any time within the past five years.  All premiums due and payable under such
insurance policies have been paid.  The
Sellers have no Knowledge of any threatened termination of, or material premium
increase with respect to, any of those policies.  Section 3.22 of the Seller Disclosure
Schedule further sets forth an accurate and complete list of all pending claims
asserted by the Acquired Companies pursuant to any such certificate of
insurance, binder or policy, and describes the nature and status of the
claims.  To the Sellers’ Knowledge, no
Acquired Company has failed to give in a timely manner any notice of any claim
that may be insured under any certificate of insurance, binder or policy
required to be listed in Section 3.22 of the Seller Disclosure Schedule
and there are no outstanding claims which have been denied or disputed by the
insurer.  No Acquired Company has ever
maintained, established, sponsored, participated in or contributed to any
self-insurance program, retrospective premium program or captive insurance
program.

Section 3.23           Relationships
with Affiliates.  No Seller or
Affiliate of any Seller, nor any director, officer or other Affiliate of any
Acquired Company has any interest in any property (whether real, personal or
mixed and whether tangible or intangible) used in or pertaining to any Acquired
Company’s business.  No Seller, or
Affiliate of any Seller, nor any director, officer or other Affiliate of any
Acquired Company owns (of record or as a beneficial owner) an equity interest
or any other financial or profit interest in a Person that has (a) had
business dealings or a financial interest in any transaction with any Acquired
Company or (b) engaged in competition with any Acquired Company with
respect to any line of the products or services of such Acquired Company in any
market presently served by such Acquired Company, except for less than [***] of the outstanding capital stock of any
competing business that is publicly traded on any recognized exchange or in the
over-the-counter market.  Except as set
forth in Section 3.23 of the Seller Disclosure Schedule, to the Sellers’
Knowledge, no Seller, or Affiliate of any Seller, nor any director, officer or
other Affiliate of any Acquired Company, is a party to any Contract with, or
has any claim or right against, any Acquired Company other than agreements
pertaining to employment, intercompany obligations owed by one Acquired Company
to another Acquired Company, or Benefit Obligations.

Section 3.24           Insolvency.  No Acquired Company is insolvent or will be
rendered insolvent by any of the transactions contemplated by this
Agreement.  As used in this Section 3.24,
“insolvent” means that the sum of the present fair saleable value of such
Person’s assets does not and will not exceed its debts and other probable
Liabilities.

Section 3.25           Brokers
or Finders.  Except as set forth in Section 3.25
of the Seller Disclosure Schedule, no Seller, Acquired Company or any Person
acting on behalf of any Seller or Acquired Company has incurred any Liability
for brokerage or finders’ fees or agents’ commissions or other similar payment
in connection with any of the transactions contemplated by this Agreement.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

The Purchasers jointly and
severally represent and warrant to the Sellers that as of the Closing Date the
statements set forth in this Article 4 are true and correct, except,
subject to Section 8.8, as set forth on the disclosure schedule delivered
by the Purchasers to the Sellers concurrently with the execution and delivery
of this Agreement and dated as of the Closing Date (the “Purchaser Disclosure
Schedule”):

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

31

Section 4.1             Organization
and Good Standing.  Each Purchaser is
a corporation or limited liability company duly organized, validly existing and
in good standing (where applicable) under the Laws of its jurisdiction of
incorporation.  Share Purchaser is a
direct or indirect wholly-owned subsidiary of Priceline US.

Section 4.2             Authority
and Enforceability.  Each Purchaser
has all requisite corporate power and authority to execute and deliver this
Agreement and each of the Ancillary Agreements to which it is a party and to
perform its obligations under this Agreement and each such Ancillary
Agreement.  The execution, delivery and
performance of this Agreement and the Ancillary Agreements have been duly
authorized by all necessary action on the part of the Purchasers.  This Agreement has been duly executed and delivered
by each Purchaser and constitutes the legal, valid and binding obligation of
each Purchaser, enforceable against each Purchaser in accordance with its terms
subject to the effects of bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar laws relating to or affecting
creditors’ rights generally and general equitable principles (whether
considered in a proceeding in equity or at law).  Upon the execution and delivery by the
Purchasers of the Ancillary Agreements, such Ancillary Agreements will
constitute the legal, valid and binding obligations of the Purchasers party
thereto, enforceable against such Purchasers in accordance with their terms
subject to the effects of bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar laws relating to or affecting
creditors’ rights generally and general equitable principles (whether
considered in a proceeding in equity or at law).

Section 4.3             No
Conflict.  Neither the execution,
delivery and performance of this Agreement by the Purchasers, nor the
consummation by the Purchasers of the transactions contemplated by this
Agreement, will (a) directly or indirectly (with or without notice, lapse
of time or both), conflict with, result in a breach or violation of, constitute
a default (or give rise to any right of termination, cancellation,
acceleration, suspension or modification of any obligation or loss of any  benefit) under, result in payment becoming
due under, or result in the imposition of any Encumbrance on any of the
properties or assets of either Purchaser under (i) the certificate of
incorporation, bylaws or other comparable charter or organizational documents
of either Purchaser or any resolution adopted by the stockholders or board of
directors of either Purchaser, (ii) any Governmental Authorization or
Contract to which either Purchaser is a party or by which either Purchaser is
bound or to which any of its properties or assets is subject or (iii) any
Law or Judgment applicable to either Purchaser or any of its properties or
assets; or (b) require either Purchaser to obtain any consent, waiver,
approval, ratification, permit, license, Governmental Authorization or other
authorization of, give any notice to, or make any filing or registration with,
any Governmental Authority or other Person, except, in the case of the
foregoing clauses (ii) and (iii), as would not have or be reasonably
likely to have a material adverse effect on the Purchasers or their ability to
perform their obligations under this Agreement.

Section 4.4             Legal
Proceedings.  There is no pending
Proceeding that has been commenced against either Purchaser and that
challenges, or may have the effect of preventing, delaying, making illegal or
otherwise interfering with, any of the transactions contemplated by this
Agreement.  To the Purchasers’ Knowledge,
no such Proceeding has been threatened.

Section 4.5             Investment
Intent.  Each Purchaser is acquiring
the Equity Interests (as applicable) for its own account and not with a view to
their distribution within the meaning of Section 2(11) of the Securities
Act.

Section 4.6             Brokers or Finders.  Neither Purchaser nor any Person acting on
behalf of either Purchaser has incurred any Liability for brokerage or finders’
fees or agents’ commissions or other similar payment in connection with any of
the transactions contemplated by this Agreement.

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

32

ARTICLE 5

COVENANTS

Section 5.1             Expenses.  Except as otherwise expressly provided in
this Agreement, each party will bear its respective direct and indirect
expenses incurred in connection with the preparation and negotiation of this
Agreement and the consummation of the transactions contemplated by this
Agreement, including all fees and expenses of its advisors and
representatives.  All amounts relating to
any financial, legal, accounting or other advisor, and all other transaction
fees and expenses, in each case incurred by the Acquired Companies in
connection with this Agreement and the transactions contemplated by this
Agreement, will be paid by the Sellers
in full out of the Initial Purchase Price on the Closing Date (including any
fee payable to Sparring Partners Capital LLC with respect to its engagement by
the Company in relation to the transactions contemplated by this Agreement) to
the respective payees thereof and/or into a separate escrow fund to be
established with the Escrow Agent pursuant to an agreement between the Escrow
Agent and the Seller Representative.

Section 5.2             Confidentiality.

(a)           From and after the
Closing, the confidentiality obligations of Priceline US (and any of its
Affiliates) under the Mutual Nondisclosure Agreement between the Agoda Companies and Priceline US dated
May 17, 2007 (the “Confidentiality Agreement”) will terminate with
respect to all Confidential Information. 
From and after the Closing,
each Seller will, and will cause each of its Affiliates to, maintain the
confidentiality of, and not use for their own benefit or the benefit of any
other Person (but may disclose to its advisors and representatives as
reasonably required, provided such advisors or representatives are made aware of
the confidentiality obligations under this Section 5.2 and the disclosing
Seller remains responsible for any breach thereof by such advisors or
representatives), the Confidential Information. 
As used in this Section 5.2, “Confidential Information” means any
confidential information, in whatever form or medium, concerning the business
of any of the Acquired Companies, but will not, however, include information
which (i) is or becomes publicly available other than as a result of a
disclosure by any Seller, (ii) is or becomes available to any Seller on a
non-confidential basis from a source (other than an Acquired Company or any
director, officer, employee, agent, consultant or other advisor or
representative of an Acquired Company) which, to the knowledge of the Seller
after due inquiry, is not prohibited from disclosing such information to the
Seller by a legal, contractual or fiduciary obligation to any Acquired Company
or (iii) is required to be disclosed by any Seller by law, any
Governmental Authority or pursuant to any proceeding; provided, however,
such Seller will notify the Purchasers promptly of the request or requirement
for disclosure and the Purchasers shall have the right to seek an appropriate
protective order.

(c)           Effective upon the
Closing, the Sellers hereby assign to the Company all of their rights under
each confidentiality agreement (other than the Confidentiality Agreement) to
which any of the Sellers is a party and which pertain to the business or
operations of any Acquired Company.  Each
Seller, upon the request of either Purchaser from time to time, will use its
commercially reasonable efforts to assist the Company in enforcing the
provisions of any such confidentiality agreement.

Section 5.3             Noncompetition
and Nonsolicitation.

(a)           The Management Shareholders acknowledge that the Acquired
Companies have over many years devoted substantial time, effort and resources
to developing the Acquired Companies’ trade secrets and other confidential and
proprietary information, as well as the Acquired Companies’ relationships with
customers, suppliers, employees and others doing business with the Acquired
Companies; that such relationships, trade secrets and other information are
vital to the successful conduct of the Acquired Companies’ businesses in the
future; that because of the Management Shareholders’ 

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

33

 

access to the Acquired
Companies’ confidential information and trade secrets, the Management
Shareholders would be in a unique position to divert business from the Acquired
Companies and to commit irreparable damage to the Acquired Companies were the
Management Shareholders to be allowed to compete with the Acquired Companies or
to commit any of the other acts prohibited below; that the enforcement of the
restrictive covenants against the Management Shareholders would not impose any
undue burden upon any Management Shareholder; and that the ability to enforce
the restrictive covenants against the Management Shareholders is a material
inducement to the decision of the Purchasers to consummate the transactions
contemplated by this Agreement. 
Accordingly, during the period commencing on the Closing Date and ending
on the [***] of the Closing Date:

(i)            no Management Shareholder will, anywhere in the world,
directly or indirectly, whether as a principal, agent, employee or otherwise,
or alone or in association with any Person, own, share in the earnings of,
invest in the stock, bonds or other securities of, manage, operate, control,
participate in the ownership, management, operation, or control of, finance
(whether as a lender, investor or otherwise), guaranty the obligations of, be
employed by, associated with, or otherwise aid or assist in any manner any
Person that is engaged in or competitive with the business of any Acquired
Company (a “Competing Activity”); provided, however, if
any Management Shareholder’s employment with the Acquired Companies ceases for
any reason before the [***] of the
Closing Date, the scope of Competing Activity applicable to such Management
Shareholder shall be limited to business conducted by the Acquired Companies as
of the Closing Date and any additional business conducted by the Acquired
Companies in the period between the Closing Date and the date such employment
ends.  The Management Shareholders will,
however, not be in violation of this Section 5.3(a) solely by reason
of investing in stock, bonds or other securities of any Person engaged in a
Competing Activity (but without otherwise participating in such business), if (A) such
stock, bonds or other securities are listed on any national securities exchange
or have been registered under Section 12(g) of the Securities
Exchange Act of 1934 and (B) such investment does not exceed, in the case
of any class of the capital stock of any one issuer, [***] of the issued and outstanding shares of such capital stock,
or, in the case of bonds or other securities, [***]of
the aggregate principal amount thereof issued and outstanding;

(ii)           no Management Shareholder will directly or indirectly (A) solicit,
on behalf of a competitive business, the business of any Person who is a
customer of any Acquired Company, (B) cause, induce or attempt to cause or
induce any customer, supplier, independent contractor, licensee, licensor, or
franchisee or other business relation of any Acquired Company to cease or
reduce the extent of its business relationship with such Acquired Company or to
deal with any competitor of such Acquired Company or (C) in any way
interfere with the relationship, between any Acquired Company and any of its
customers, suppliers, licensees, licensors, franchisees or other business
relations;

(iii)          no Management Shareholder will directly or indirectly,
recruit, solicit, cause, induce or attempt to cause or induce any employee of
any Acquired Company to leave his or her employment either for the Management
Shareholder or for any other Person, or in any way interfere with the
relationship between any Acquired Company and any of its employees; and

(iv)          no Seller will disparage the Purchasers or any of their
Affiliates, the Acquired Companies, or any of their respective directors,
officers, employees or agents who are known as such to such Seller, except that
this Section 5.3(a)(iv) shall not apply to any truthful testimony or
responses to inquiries from any Governmental Authority or with respect to any
legal proceeding to which the Seller is a party.

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

34

 

(b)           In the event a
judicial determination is made that any provision of this Section 5.3
constitutes an unreasonable or otherwise unenforceable restriction against any
Seller, the provisions of this Section 5.3 shall be rendered void only to
the extent that such judicial determination finds such provisions to be
unreasonable or otherwise unenforceable with respect to any Seller.  In this regard, any judicial authority
construing this Agreement shall be empowered to sever any portion of the
territory, any prohibited business activity or any time period from the
coverage of this Section 5.3 and to apply the provisions of this Section 5.3
to the remaining portion of the territory, the remaining business activities
and the remaining time period not so severed by such judicial authority.  Moreover, notwithstanding the fact that any
provision of this Section 5.3 is determined not to be specifically
enforceable, the Purchasers shall nevertheless be entitled to recover monetary
damages as a result of the breach of such provision by the Sellers.  The time period during which the prohibitions
set forth in this Section 5.3 shall apply, shall be tolled and suspended
for a period equal to the aggregate time during which any Seller violates such
prohibitions in any respect.

Section 5.4             Public
Announcements.  For purposes of
securities law compliance, each party agrees not to issue any press release or
make any other public announcement relating to this Agreement without the prior
written approval of the other party, except that the Purchasers reserve the
right, without the Company’s or any Seller’s prior consent, to make any public
disclosure it believes in good faith is required by applicable securities laws
or securities listing standards (in which case the Purchasers shall advise the
Sellers prior to making such disclosure and shall give the Sellers an
opportunity to review such disclosure).

Section 5.5             [***].

Section 5.6             Further
Actions.  Subject to the other
express provisions of this Agreement, upon the reasonable request of any party
to this Agreement, the other parties will (a) furnish to the requesting
party any additional information, (b) execute and deliver, at their own
expense, any other documents and (c) take any other actions as the
requesting party may reasonably require to more effectively carry out the
intent of this Agreement and the transactions contemplated by this Agreement
(including those actions necessary to (i) register the Share Transfer
Forms with the Mauritian Registrar General and to ensure that the name of the
Share Purchaser is entered into the shareholder register of the Company, and (ii) to
procure that A.T. takes all further actions necessary for all rights, interest
and title to the IP Assets to vest in AGIP and to be registered with applicable
Governmental Authorities.

ARTICLE 6

CERTAIN TAX MATTERS

Section 6.1             Tax
Returns.

(a)           Tax Returns with
respect to the Acquired Companies for the period ending on or before the
Closing Date will be prepared in a manner consistent with and utilizing the
accounting methods utilized in the preparation of the prior Tax Returns of the
Acquired Companies.  The Company (i) will
submit all such Tax Returns to the Seller Representative for its review at
least 30 days prior to filing, (ii) will not file such Tax Returns without
the Seller Representative’s prior consent, which consent will not be
unreasonably withheld or delayed and (iii) will, promptly after filing,
forward to the Seller Representative an accurate and complete copy of such
filed Tax Returns and proof of payment of the subject Taxes.

(b)           The Purchaser will file all Tax Returns with respect to
the Acquired Companies for all taxable periods ending after the Closing Date.

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

35

Section 6.2             Payment
of Taxes.

(a)           Subject to 6.2(b),
Sellers shall pay all Taxes imposed on the Acquired Companies for all periods
ending on or prior to the Closing Date to the extent they exceed the amount of
Taxes reflected as Liabilities in the calculation of [***] as finally determined pursuant to Section 2.4 of this
Agreement.

(b)           Taxes that are
payable with respect to a taxable period that begins before the Closing Date
and ends after the Closing Date will be allocated to the portion of the period
that ends on the Closing Date in accordance with Section 6.3.

(c)           In the case of Tax
Returns filed by the Acquired Companies for periods ending on or before the
Closing Date, and periods described in Section 6.3 of this Agreement, the
Purchaser shall inform the Seller Representative of any amounts due from the
Sellers under this Section 6.2 at least ten (10) days prior to the
due date of the pertinent Tax Return and the Sellers will pay such amounts to
the Purchaser in immediately available funds at least two business days prior
to the due date of the Tax Return.

(d)           Purchaser shall not:
(i) make an election under Section 338 of the Code, as amended (or
any similar provision under foreign, federal, state or local law) with respect
to the sale of the Acquired Companies hereunder, and (ii) sell, transfer
or dispose of any assets of the Acquired Companies after the Closing Date and
before January 1, 2008, other than sales or dispositions that occur in the
ordinary course of business.  Nothing shall
prevent the Acquired Companies from selling or otherwise disposing of their
assets outside of the ordinary course of business after December 31, 2007.

Section 6.3             Tax
Apportionment.  In the case of Taxes
that are payable with respect to a taxable period that begins before the
Closing Date and ends after the Closing Date, the portion of any such Tax that
is allocable to the portion of the period ending on the Closing Date will be:

(a)           in the case of Taxes
that are either (i) based upon or related to income or receipts or (ii) imposed
in connection with any sale or other transfer or assignment of property (real
or personal, tangible or intangible) (other than any transaction Taxes
contemplated by Section 6.5), deemed equal to the amount which would be
payable if the taxable period ended as of the close of business on the Closing
Date; and

(b)           in the case of Taxes
imposed on a periodic basis with respect to the assets of the Acquired
Companies, or otherwise measured by the level of any item during a period, deemed
to be the amount of such Taxes for the entire period (or, in the case of such
Taxes determined on an arrears basis, the amount of such Taxes for the
immediately preceding period), multiplied by a fraction, the numerator of which
is the number of calendar days in the period ending on the Closing Date and the
denominator of which is the number of calendar days in the entire period.

Section 6.4             Tax
Elections.  The Sellers will not, and
will not cause or permit any Acquired Company to, without the prior written
consent of the Purchasers (which consent will not be unreasonably withheld or
delayed), make or revoke, or cause or permit to be made or revoked, any Tax
election pertaining to any Acquired Company or the ownership of the Shares or
Membership Interests.

Section 6.5             Transactional Taxes.  Notwithstanding any other provision of this
Agreement, all transfer, documentary, recording, notarial, sales, use,
registration, stamp and other similar Taxes or fees imposed by any taxing
authority in connection with the transactions contemplated by this Agreement
will be borne by the Sellers.  The
Sellers will, at their own expense, file all necessary Tax Returns and other
documentation with respect to all such Taxes and, if required by applicable
Law, the Purchasers will, and will cause their respective Affiliates to, join
in the execution of any such Tax Returns or other documentation.

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

36

Section 6.6             Other
Tax Matters.

(a)           Cooperation with
Respect to Tax Returns.  Purchasers
and Sellers agree to furnish or cause to be furnished to each other, and each
at their own expense, as promptly as practicable, such information (including
access to books and records) and assistance, including making employees
available on a mutually convenient basis to provide additional information and
explanations of any material provided, relating to the Acquired Companies as is
reasonably necessary for the filing of any Tax Return, for the preparation for
any audit, and for the prosecution or defense of any claim, suit or proceeding
relating to any adjustment or proposed adjustment with respect to Taxes.  Purchasers or the Acquired Companies shall
retain in their possession, and shall provide Seller Representative reasonable
access to (including the right to make copies of), such supporting books and
records and any other materials that Seller Representative  may specify with respect to Tax matters
relating to any taxable period ending on or prior to the Closing Date until the
relevant statute of limitations has expired. 
After such time, Purchasers may dispose of such material, provided that
prior to such disposition Purchasers shall give Seller Representative a
reasonable opportunity to take possession of such materials.

(b)           Refunds.  To
the extent there is a Final Judgment relating to the Acquired Companies for
periods (or portions thereof) ending on or before the Closing Date which
results in a refund of Taxes that were either (i) reflected as a Liability
in the [***] and actually resulted in a
reduction of the Purchase Price (i.e., because the Liability was reflected in
both the [***] and [***] calculations or, alternatively, because
the Liability was reflected in [***] and
Sellers were required to make a payment to Purchasers under Section 2.4(f) of
this Agreement); or (ii) not reflected as a Liability in either the [***] or the [***]
because the Sellers in good faith were not aware of the Liability, the
Purchasers shall pay the refund to the Seller Representative less any taxes due
on the receipt of the refund (if any). 
However, the Purchasers shall not pay to Sellers a refund received
relating to the Acquired Companies for periods (or portions thereof) ending on
or before the Closing Date if the refund received was reflected as an asset in
the calculation of the [***].

 

(c)           Indemnity
Payments.  The Sellers and the
Purchasers agree to treat any indemnity payment made pursuant to Article 7
as an adjustment to the Purchase Price for federal, state, local and foreign
income tax purposes.

(d)           Amended Returns.  No Tax Return with respect to the Acquired
Companies (i) for periods ending on or before the Closing Date or (ii) which
begins before and ends after the Closing Date, shall be amended if it would
result in an increase in the amount of Taxes for which Sellers are liable under
this Agreement, without the prior written consent of Seller Representative.

ARTICLE 7

INDEMNIFICATION

Section 7.1             Indemnification
by the Sellers.    Subject to the limitations set
forth in this Article 7, the Sellers, jointly and severally, will
indemnify and hold harmless the Purchasers, each of the Purchasers’ Affiliates,
each of the Acquired Companies and each of their respective directors,
officers, employees, agents, consultants, advisors, representatives and equity
holders (collectively, the “Purchaser Indemnified Parties”) from and
against any and all Losses incurred or suffered by the Purchaser Indemnified
Parties arising out of, relating to or resulting from any of the following:

(a)           any
inaccuracy in or breach of any representation or warranty of the Sellers
contained in this Agreement or in any certificate delivered by the Sellers in
connection with this Agreement;

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

37

 

(b)           any breach or default of any covenant
or agreement of the Sellers contained in this Agreement;

(c)           any matter disclosed in (i) Section 3.9(k) of
the Seller Disclosure Schedule (including any claim arising from an alleged
breach of the Letter Agreement, dated March 8, 2006 referred to therein)
or (ii) Section 3.20  of the
Seller Disclosure Schedule or any Covered Claims (as defined in Schedule G);

(d)           Subject to Article 6 of this
Agreement, (i) any Taxes of any Acquired Company with respect to taxable
periods ending on or before the Closing Date (in excess of the amount of Taxes
reflected as Liabilities in the calculation of [***] (as finally determined in accordance
with Section 2.4)), (ii) with respect to taxable periods beginning
before the Closing Date and ending after the Closing Date, any Taxes of any
Acquired Company which are allocable, pursuant to Section 6.3, to the
portion of such period ending on the Closing Date (to the extent in excess of
the amount of Taxes reflected as Liabilities in the calculation of [***] (as
finally determined in accordance with Section 2.4)), (iii) any Taxes
with respect to prior taxable periods listed in clauses (i) and (ii) hereof
relating to any member of an affiliated group with which any Acquired Company
has filed a Tax Return on a consolidated, combined or unitary basis; and (iv) any
Loss suffered by Purchaser Indemnified Parties with respect to their
recognition of any subpart F income (as defined in section 952 of the Code)
accrued by the Acquired Companies during the period (or portions thereof)
ending on or prior to the Closing Date;

(e)           any Liability (whether or not
disclosed on any Schedule to this Agreement or otherwise disclosed to or known
by the Purchasers or any of their respective representatives or agents) of or
relating to any Acquired Company or any of their respective Affiliates:

(i)            arising
out of or related to the simultaneous employment prior to the Closing Date by
more than one Acquired Company (or any of their Affiliates) of any current or
former employee of any Acquired Company; or

(ii)           arising
out of claims of infringement or misappropriation of Intellectual Property
rights of any current or former employee or contractor (or any of its current
or former agents or employees) of any of the Acquired Companies with respect to
computer software and related functional specifications, databases, procedures
manuals and design documentation, in each case that were created prior to the
Closing Date by (A) any such current or former employee in the scope of
his or her employment or (B) any current or former contractor (or any of
its current or former agents or employees) in the scope of its (or their)
engagement with any of the Acquired Companies;

(f)            any claim (i) by any Affiliate
of any Seller (or any shareholder of any such Affiliate), that is not an
Acquired Company, arising out of acts or occurrences prior to the Closing or as
a result of the consummation of the transactions contemplated by this Agreement
at Closing; or (ii) relating to the operation by any Affiliate of any
Seller (or any shareholder of any such Affiliate), that is not an Acquired
Company, of any business other than the Business, at any time (whether before
or after Closing); and

(g)           any Proceedings, demands or
assessments incidental to any of the matters set forth in clauses (a) through
(f) above.

Section 7.2             Indemnification
by the Purchasers.    Subject to the limitations set
forth in this Article 7, the Purchasers, jointly and severally, will
indemnify and hold harmless the Sellers from and against any and all Losses
incurred or suffered by the Sellers arising out of, relating to or resulting
from any of the following:

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

38

(a)           any inaccuracy in or breach of any
representation or warranty of the Purchasers contained in this Agreement or in
any certificate delivered by the Purchasers in connection with this Agreement;

(b)           any breach or default of any covenant
or agreement of the Purchasers set forth in this Agreement; and

(c)           any Proceedings, demands or
assessments incidental to any of the matters set forth in clauses (a) and (b) above.

Section 7.3             Claim
Procedure.

(a)           A party that seeks
indemnity under this Article 7 (an “Indemnified Party”) will give
prompt written notice (a “Claim Notice”) to the party from whom
indemnification is sought (an “Indemnifying Party”) containing (i) a
description and, if known, the estimated amount of any Losses incurred or
reasonably expected to be incurred by the Indemnified Party, (ii) a
reasonable explanation of the basis for the Claim Notice to the extent of the
facts then known by the Indemnified Party and (iii) a demand for payment
of those Losses.

(b)           Within [***] after delivery of a Claim Notice, the
Indemnifying Party will deliver to the Indemnified Party a written response in
which the Indemnifying Party will either:

(i)            agree that the Indemnified Party is entitled to receive
all of the Losses at issue in the Claim Notice; or

(ii)           dispute the Indemnified Party’s entitlement to
indemnification by delivering to the Indemnified Party a written notice (an “Objection
Notice”) setting forth in reasonable detail each disputed item, the basis for
each such disputed item and certifying that all such disputed items are being
disputed in good faith.

(c)           If the Indemnifying Party fails to
take either of the foregoing actions within [***] after delivery of the Claim Notice, then
the Indemnifying Party will be deemed to have irrevocably accepted the Claim
Notice and the Indemnifying Party will be deemed to have irrevocably agreed to
pay the Losses at issue in the Claim Notice.

(d)           If the Indemnifying Party delivers an
Objection Notice to the Indemnified Party within [***] after delivery of the Claim Notice, then
the dispute may be resolved by any legally available means consistent with the
provisions of Section 8.12.

(e)           If any Purchaser Indemnified Party is
the Indemnified Party with respect to any claim for indemnification pursuant to
this Article 7, the parties will contemporaneously deliver to the Escrow
Agent copies of each Claim Notice and Objection Notice in connection with such
claim.

(f)            Any indemnification of the Purchaser
Indemnified Parties pursuant to this Article 7 will be satisfied pursuant
to the provisions of Section 7.7 hereof.

(g)           Any
indemnification of the Sellers pursuant to this Article 7 will be effected
by wire transfer of immediately available funds to an account or accounts
designated by the Seller Representative. 
All indemnification payments to be received by the Sellers in accordance
with this Article 7 will be allocated among the Sellers in proportion to
their respective shares of the Purchase Price as set forth on Schedule A and
Schedule B.

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

39

(h)           Subject to the provisions of Section 7.7
hereof, the foregoing indemnification payments will be made within [***] after the
date (the “Indemnity Determination Date”) on which (i) the amount
of such payments are determined by mutual agreement of the parties, (ii) the
amount of such payments are determined pursuant to Section 7.3(c) if
an Objection Notice has not been timely delivered in accordance with Section 7.3(b) or
(iii) both such amount and the Indemnifying Party’s obligation to pay such
amount have been finally determined by a final Judgment of a court having
jurisdiction over such proceeding as permitted by Section 8.12 if an
Objection Notice has been timely delivered in accordance with Section 7.3(b) (the
final determination of such indemnification obligation and payment in
accordance with the foregoing clauses (i), (ii) or (iii) being referred
to herein as the “Indemnity Final Determination”).

(i)            For purposes of  Section 7.3 and Section 7.4, (i) if
the Sellers comprise the Indemnifying Party, any references to the Indemnifying
Party (except provisions relating to an obligation to make or a right to
receive any payments) will be deemed to refer to the Seller Representative and (ii) if
the Sellers comprise the Indemnified Party, any references to the Indemnified
Party (except provisions relating to an obligation to make or a right to
receive any payments) will be deemed to refer to the Seller Representative.

Section 7.4             Third-Party
Claims.   Except as set forth in Schedule
G, the following procedures shall apply with respect to Third-Party Claims
(as defined herein):

(a)           In order for any Indemnified Party to
make a claim for any indemnification as provided for under Sections 7.1 and 7.2
in respect of, arising out of or involving a claim or demand made by any Person
not a party to this Agreement against the Indemnified Party (a “Third-Party
Claim”), the Indemnified Party will give written notice (a “Third-Party
Claim Notice”) to the Indemnifying Party within [***] after receipt by such Indemnified Party
of notice of the Third-Party Claim and will include in such Third-Party Claim
Notice (i) notice of the commencement of any Proceeding relating to such
claim and (ii) the facts constituting the basis for such Proceeding and
the amount of the damages claimed by the other Person, in each case to the
extent known to the Indemnified Party. 
Notwithstanding the foregoing, no delay or deficiency on the part of the
Indemnified Party in so notifying the Indemnifying Party will relieve the
Indemnifying Party of any Liability or obligation under this Agreement except
to the extent the Indemnifying Party is materially prejudiced by the delay or
other deficiency.

(b)           If a
Third-Party Claim is made against an Indemnified Party, the Indemnifying Party
shall be entitled to undertake, conduct and control the defense thereof and, if
it so chooses, to assume the defense thereof with counsel of its choosing (with
such counsel reasonably satisfactory to the Indemnified Party), at its own
expense, provided, however, that the Indemnifying Party shall not have the
right to undertake, conduct and control the defense of any Third-Party Claim if
(i) such claim includes both the Indemnified Party and the Indemnifying
Party, and the former shall have been advised in writing by counsel (with a
copy to the Indemnifying Party) that there are one or more legal or equitable
defenses available to them that are different from or additional to those
available to the Indemnifying Party; or (ii) the Indemnifying Party fails
to provide reasonable assurance to the Indemnified Party of its financial
capacity to defend such Third-Party Claim and provide indemnification with
respect to such Third-Party Claim.  If
the Indemnifying Party shall undertake, conduct and control the defense of any
Third-Party Claim, the Indemnified Party shall be entitled to participate, at
its own cost and expense, in the defense of such claim and to employ separate
counsel of its choosing for such purpose.  Should the
Indemnifying Party so elect to assume the defense of a Third-Party Claim, the
Indemnifying Party shall not, as long as it diligently conducts such defense,
be liable to the Indemnified Party for legal expenses subsequently incurred by
the Indemnified Party in connection with the defense thereof, other than
reasonable costs of investigation.

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

40

 

 

(c)           If
the Indemnifying Party assumes the defense of such a Third-Party Claim, (i) it
will be conclusively established for purposes of this Agreement that that the
claims that are the subject of the Third-Party Claim are within the scope of
and subject to indemnification under this Article 7; (ii) no
compromise or settlement of such claims may be effected by the Indemnifying
Party without the Indemnified Party’s consent in writing (which consent shall
not be unreasonably withheld, conditioned or delayed) unless (A) there is
no admission of any violation of Law or any violation of the rights of any
Person and no effect on any other claims that may be made against the
Indemnified Party, and (B) the sole relief provided is monetary damages
that are paid in full by the Indemnifying Party and which release the
Indemnified Party completely and unconditionally in connection with such
Third-Party Claim.  The Indemnified Party
will have no Liability with respect to any compromise or settlement of such
claims effected without its consent.

 

(d)           Notwithstanding
the foregoing, the Indemnifying Party shall not be entitled to assume the
defense of any Third-Party Claim (and shall be liable for the fees and expenses
of counsel incurred by the Indemnified Party in defending such Third-Party
Claim) if the Third-Party Claim seeks an order, injunction or other equitable
relief or relief for other than money damages against the Indemnified Party.

 

(e)           If notice is given to an Indemnifying Party of a
Third-Party Claim and the Indemnifying Party does not, within [***] after the Indemnified Party’s notice is
given, give notice to the Indemnified Party of its election to undertake,
conduct and control the defense of such Third-Party Claim, the Indemnified
Party has the right to undertake, conduct and control the defense of any such
claim, provided, however, that (i) the Indemnified Party shall obtain the
prior written consent of the Indemnifying Party (which consent shall not be
unreasonably withheld, conditioned
or delayed) before entering into any compromise or settlement of such claims, and
(ii) the Indemnifying Party shall have the right to participate in the
defense of such claim and to employ separate counsel of its choosing for such
purpose, at its own expense.

 

(f)            The
party not controlling the defense under this Section 7.4 (the “Non-Controlling
Party”) will, upon reasonable request, furnish the party controlling the
defense (the “Controlling Party”) with such information as it may have
with respect to such Third-Party Claim (including copies of any summons,
complaint or other pleading which may have been served on such party and any
written claim, demand, invoice, billing or other documents evidencing or
asserting the same) and will otherwise reasonably cooperate with and assist the
Controlling Party in the defense of such Third-Party Claim.  All reasonable out-of-pocket costs and
expenses incurred in connection with the Non-Controlling Party’s cooperation
shall be borne by the Controlling Party.

 

Section 7.5             Survival.

 

(a)           All
representations and warranties contained in this Agreement and any certificate
delivered pursuant to this Agreement will survive the Closing for a period of [***] from the
Closing Date; provided, however, that (i) the
representations and warranties set forth in Sections 3.14 (Tax Matters),
and the corresponding right to make claims thereunder, will survive until [***] following
the [***], and (ii) the representations and warranties set
forth in [***]. 
Notwithstanding anything to the contrary in this Agreement, the rights
of the Purchaser Indemnified Parties and the Sellers to make claims for
indemnification or reimbursement based upon any covenant to be performed or
complied with after the Closing Date will survive in accordance with its terms.

 

(b)           If
an Indemnified Party delivers to an Indemnifying Party, before expiration of a
representation or warranty, either a Claim Notice based upon a breach of any
such representation or warranty, or a notice that, as a result of a Third-Party
Claim, the Indemnified Party reasonably expects to incur Losses, then the
applicable representation or warranty will survive until, but only for purposes
of,

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

41

 

 

the resolution of the
matter covered by such notice.  If the
Proceeding or written claim with respect to which such notice has been given is
definitively withdrawn or resolved in favor of the Indemnified Party, the
Indemnified Party will promptly so notify the Indemnifying Party.

 

Section 7.6             Limitations on Liability.

 

(a)           Neither
the Sellers nor the Purchasers are liable under (i) Section 7.1
(other than Section 7.1(b)) or Section 7.2 (other than Section 7.2.(b)),
respectively, unless and until, with respect to an individual claim, the total
monetary value of all aggregated Losses exceeds [***] (the “Claim Amount”) [***]; and (ii) Section 7.1(a) or
Section 7.2(a), respectively, unless and until the Claim Amount(s), when
aggregated with other Claim Amount(s), so recoverable in respect of other such
claims applicable to either Sellers, on one hand, or the Purchasers, on the
other hand, exceeds [***] (the “Threshold”) [***].

 

(b)           Notwithstanding
the foregoing provisions of Section 7.6(a):

 

(i)            the Claim Amount,
Threshold and Cap limitations do not apply to claims under [***];

 

(ii)           the Cap limitations
do not apply to claims under [***];

 

(iii)          the Claim Amount,
Threshold and Cap limitations do not apply to claims under [***]; and

 

(iv)          the Claim Amount,
Threshold and Cap limitations shall not apply to claims for [***].

 

(c)           [***].  However, this subparagraph does not limit the
right of the Indemnified Parties to obtain indemnity from the Indemnifying
Parties to the extent that Third-Party Claims, for which the Indemnified
Parties are otherwise entitled to indemnity under this Article 7, have
been resolved by Judgment, settlement or other obligation to pay any of the
types of damages listed in the preceding sentence.

 

(d)           Subject
to the other terms and limitations set forth herein (including Section 7.6(h)),
[***].

 

(e)           (i)            [***].

 

                (ii)           [***].

 

(f)            The
Sellers shall not be liable in respect of any Losses under Section 7.1(a) for
any matters resulting from a change of accounting policy or practice or the
length of any accounting period adopted by the Purchasers with respect to the
Acquired Companies after the Closing, that is applicable to periods prior to
the Closing, unless such changes are adopted to comply with any requirement of
applicable law which was not being properly complied with by the Acquired
Companies on or prior to the Closing.

 

(g)           The
Sellers shall not be liable in respect of any claim for Losses if and to the
extent that (i) the Losses relating thereto have been recovered under any
other claim, or (ii) such Losses are reflected as Liabilities in the
calculation of the [***] pursuant to Section 2.4 (regardless of whether
such calculation actually resulted in a reduction of the Purchase Price
pursuant to Section 2.4(g)).  For
purposes of clarification, Section 7.6(g)(i) shall limit the
Purchaser Indemnified Parties to a single

 

[***] = Confidential Treatment requested for redacted
portion; redacted portion has been filed separately with the Commission.

 

42

 

 

recovery for each of
their respective Losses, but shall not limit the number or nature of the claims
the Purchaser Indemnified Parties may make to recover such Losses.

 

(h)           Notwithstanding
any other provision of this Agreement, nothing in this Agreement limits the
Liability of a party to another party for fraud or willful misconduct committed
by such party.

 

Section 7.7             Satisfaction
of Indemnification Claims Against Sellers.

 

(a)           [***].  For the avoidance of doubt (including for purposes of Section 7.5),
this Section 7.7 controls only the means by which indemnification claims
will be satisfied by the Sellers, and does not affect any Purchaser Indemnified
Party’s right to bring an indemnification claim, and provide a Claim Notice, at
any time otherwise in accordance with this Article 7.

 

(b)           To
the extent any such indemnification obligations of the Sellers for any Losses
exceed any remaining funds in the Escrow Fund, [***].

 

(c)           Notwithstanding
any other provision of this Section 7.7 or Schedule C, if the
Purchaser Indemnified Parties have provided one or more Claim Notices prior to
the due date for payment of the Earnout Amount (if any) in accordance with the
terms of Schedule C (the “Scheduled Earnout Payment Date”) and
there has not been an Indemnity Final Determination with respect to one or more
such Claim Notices prior to the Scheduled Earnout Payment Date, then only the
Released Earnout Amount (if any) will be paid to the Earnout Participants in
accordance with Schedule C.  For
purposes of this Section 7.7, the “Released Earnout Amount” means
that portion of the Earnout Amount (if any) determined in accordance with Schedule
C, which is in excess of the sum of (i) the aggregate amounts claimed
in all unresolved or unsatisfied Claim Notice(s) (such aggregated amounts
so claimed, together, the “Disputed Amount”), and (ii) all Losses
that may be set off by the Purchaser Indemnified Parties against the Earnout
Amount under Section 7.7(a) and (b) above (with respect to all
Claim Notice(s) for which there has been an Indemnity Final Determination
prior to the Scheduled Earnout Date). 
The Disputed Amount (if any) will be retained by the Share Purchaser
from the Scheduled Earnout Payment Date until the applicable unresolved or
unsatisfied Claim Notice(s) are settled or resolved in accordance with the
terms of this Agreement, in which case the Disputed Amount (or any part thereof
the subject of the Claim Notice in question) shall be paid to the Earnout
Participants or used to satisfy the indemnification obligations of the Sellers,
as so settled or resolved, in accordance with the provisions of Section 7.7(a) and
(b) above.

 

(d)           Other
than as set forth in this Article 7, no party shall be entitled to set off
any amount or right it may be entitled to pursuant to this Agreement against
any amount, right or obligations owned to any other party pursuant to this
Agreement or any Ancillary Agreement, including any Earnout Amount owing to the
Earnout Participants under this Agreement.

 

(e)           Any
indemnification amounts required to be made by the Sellers under this Article 7
shall (subject to the Purchaser Indemnified Parties’ right of set off against
the Earnout Amount (if any) described in this Section 7.7) be made by wire
transfer of immediately available funds from the Sellers to an account or
accounts designated by the Purchasers.

 

Section 7.8             No
Right of Indemnification or Contribution by Seller.    No Seller has any right of indemnification or
contribution against any Acquired Company with respect to any breach by the
Sellers of any of their representations, warranties, covenants or agreements in
this Agreement or any Ancillary Agreement, whether by virtue of any contractual
or statutory right of indemnity or otherwise, and all claims to the contrary
are hereby waived and released.

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

43

 

Section 7.9             Exercise
of Remedies by Purchaser Indemnified Parties other than the Purchaser.    No Purchaser Indemnified Party (other than
the Purchasers or any successor or assignee of the Purchasers) is entitled to
assert any indemnification claim or exercise any other remedy under this
Agreement in its capacity as a Purchaser Indemnified Party unless the
Purchasers (or any successor or assignee of the Purchasers) consents to the
assertion of the indemnification claim or the exercise of any other remedy.

 

ARTICLE 8

GENERAL PROVISIONS

 

Section 8.1             Seller Representative.

 

(a)           By virtue of their execution of this
Agreement, each Seller and each Option Holder designates and appoints [***] (the “Seller Representative”) as
such Seller’s or such Option Holder’s agent and attorney-in-fact with full
power and authority to act for and on behalf of each Seller and each Option
Holder to give and receive notices and communications, to accept service of
process on behalf of the Sellers and the Option Holders pursuant to Section 7.4
and Section 8.12, to authorize and agree to adjustments to the Initial
Purchase Price under Section 2.4 and other applicable provisions of this
Agreement, to authorize payments from the Escrow Fund and the separate escrow
fund referred to in Section 5.1, to agree to, negotiate, enter into
settlements and compromises of, and comply with Judgments of courts or other
Governmental Authorities and awards of arbitrators, with respect to, any claims
by any Purchaser Indemnified Party against any Seller or Option Holder or by
any Seller or Option Holder against any Purchaser Indemnified Party, or any
other dispute between any Purchaser Indemnified Party and any Seller or Option
Holder, in each case relating to this Agreement or the transactions contemplated
by this Agreement and to take all actions that are either (i) necessary or
appropriate in the judgment of the Seller Representative for the accomplishment
of the foregoing or (ii) specifically mandated by the terms of this
Agreement.  Notices or communications to
or from the Seller Representative constitute notice to or from each of the
Sellers and Option Holders for all purposes under this Agreement.

 

(b)           The Seller Representative may delegate its authority as
Seller Representative to any one of the Sellers for a fixed or indeterminate
period of time upon not less than five business days’ prior written notice to
the Purchaser in accordance with Section 8.2.  In the event of the death or
incapacity of the Seller Representative, a successor Seller Representative will
be elected promptly by the Sellers whose interests aggregate not less than a
majority of the Initial Purchase Price and the Sellers will so notify
the Purchaser.  Each successor Seller Representative has all
of the power, authority, rights and privileges conferred by this Agreement upon
the original Seller Representative, and the term “Seller Representative” as
used in this Agreement includes any successor Seller Representative.

 

(c)           A decision, act, consent or
instruction of the Seller Representative constitutes a decision of all the
Sellers and is final, binding and conclusive upon the Sellers, and the
Purchasers and any Indemnified Party
may rely upon any such decision, act, consent or instruction of the Seller
Representative as being the decision, act, consent or instruction of the
Sellers.  The Purchasers are hereby
relieved from any Liability to any Person for any acts done or omissions by the
Purchasers in accordance with such decision, act, consent or instruction of the
Seller Representative.  Without limiting
the generality of the foregoing, the Purchasers are entitled to rely, without
inquiry, upon any document delivered by the Seller Representative as being
genuine and correct and having been duly signed or sent by the Seller
Representative.  The Purchasers will have
no liability to any Seller with respect to any portion of the Purchaser Price
the Purchasers pay to the Seller Representative in accordance with this
Agreement.

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

44

 

 

(d)           The Seller Representative
will have no Liability to any Person for any act done or omitted under this
Agreement as the Seller Representative while acting in good faith and not in a
manner constituting gross negligence or willful misconduct, and any act done or
omitted pursuant to the advice of counsel will be conclusive evidence of such
good faith.  The Sellers will severally
indemnify and hold harmless the Seller Representative from and against any
Losses the Seller Representative may suffer as a result of any such action or
omission.

 

(e)           The Seller Representative will receive no compensation for
services as the Seller Representative. 
The Sellers will reimburse, on a pro rata basis in proportion to their
respective portions of the Initial Purchase Price payable as set forth on Schedules A
and B, the Seller Representative for professional fees and expenses of
any attorney, accountant or other advisors retained by the Seller
Representative and other reasonable out-of-pocket expenses incurred by the
Seller Representative in connection with the performance of the Seller
Representative’s duties under this Agreement.

 

(f)            This appointment and grant of power and authority by the
Sellers to the Seller Representative pursuant to this Section 8.1 is
coupled with an interest, is in consideration of the mutual covenants made in
this Agreement, is irrevocable and may not be terminated by the act of any
Seller or by operation of Law, whether upon the death or incapacity of any
Seller, or by the occurrence of any other event.

 

Section 8.2             Notices.  All notices and other communications under
this Agreement must be in writing and are deemed duly delivered when (a) delivered
if delivered personally or the next business day after being sent, if sent by
nationally recognized overnight courier service (costs prepaid), (b) sent
by facsimile with confirmation of transmission by the transmitting equipment
(or, the first business day following such transmission if the date of
transmission is not a business day) or (c) received or rejected by the
addressee, if sent by certified mail, return receipt requested; in each case to
the following addresses or facsimile numbers and marked to the attention of the
individual (by name or title) designated below (or to such other address,
facsimile number or individual as a party may designate by notice to the other
parties):

 

If
to the Sellers or the Seller Representative:

 

Agoda
Services Co., Ltd.

999/9
Rama 1 Rd.

Offices
at Central World, 27th Floor

Patumwan,
Bangkok

10330
Thailand

Attention:  Michael Kenny

Fax:
+662.646.1224

 

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

 

Bryan
Cave LLP

1290
Avenue of the Americas

New
York, New York 10104

Attention:  Robert J. Rawn

Fax:
+1.212.541.1431

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

45

 

 

If
to the Purchasers:

 

priceline.com
Incorporated

800
Connecticut Avenue

Norwalk,
Connecticut  08654

Attention:  General Counsel

Fax:  +1.203.299.8195

 

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

 

Baker &
McKenzie, LLP

130
East Randolph Drive

Chicago,
Illinois  60601

Attention:  David J. Malliband and Christopher M. Bartoli

Fax:  +1.312.861.2899

 

Section 8.3             Amendment.  This Agreement may not be amended,
supplemented or otherwise modified except in a written document signed by each
party to be bound by the amendment and that identifies itself as an amendment
to this Agreement.  Any amendment of this
Agreement signed by the Sellers representing a majority of the outstanding
Shares immediately prior to Closing (such calculation of outstanding Shares to
assume the effect of conversion of the Convertible Debt and exercise of the
Parity Option) is binding upon and effective against each Seller regardless of
whether or not such Seller has in fact signed such amendment.

 

Section 8.4             Waiver and Remedies.    The rights and remedies of the parties to
this Agreement are cumulative and not alternative.  Neither any failure nor any delay by any
party in exercising any right, power or privilege under this Agreement or any
of the documents referred to in this Agreement will operate as a waiver of such
right, power or privilege, and no single or partial exercise of any such right,
power or privilege will preclude any other or further exercise of such right,
power or privilege or the exercise of any other right, power or privilege.  To the maximum extent permitted by applicable
law, (a) no claim or right arising out of this Agreement or any of the
documents referred to in this Agreement can be discharged by one party, in
whole or in part, by a waiver or renunciation of the claim or right unless in a
written document signed by the other party, (b) no waiver that may be
given by a party will be applicable except in the specific instance for which
it is given, and (c) no notice to or demand on one party will be deemed to
be a waiver of any obligation of that party or of the right of the party giving
such notice or demand to take further action without notice or demand as
provided in this Agreement or the documents referred to in this Agreement.

 

Section 8.5             Entire Agreement.  This Agreement (including the Schedules and
Exhibits hereto and the documents and instruments referred to in this Agreement
that are to be delivered at the Closing) constitutes the entire agreement among
the parties and supersedes any prior understandings, agreements or
representations by or among the parties, or any of them, written or oral, with
respect to the subject matter of this Agreement.

 

Section 8.6             Assignment and Successors.  This Agreement binds and benefits the parties
and their respective heirs, executors, administrators, successors and permitted
assigns, except that no Seller may assign any rights under this Agreement
without the prior written consent of the Purchasers.  No party may delegate any performance of its
obligations under this Agreement. 
Notwithstanding the foregoing, the Purchasers may assign this Agreement
and their rights and benefits hereunder and may delegate its duties hereunder
to one or more of their respective Affiliates; provided, that all of the
following conditions are met:  (1) such
Affiliate or Affiliates will assume all obligations and liabilities so
assigned;

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

46

 

 

and
(2) each of Priceline US and the Share Purchaser (or the Share Purchaser’s
successors) remains fully responsible for the performance of the obligations
hereunder.  Nothing expressed or referred
to in this Agreement will be construed to give any Person, other than the
parties to this Agreement, any legal or equitable right, remedy or claim under
or with respect to this Agreement or any provision of this Agreement except
such rights as may inure to a successor or permitted assignee under this Section 8.6.

 

Section 8.7             Severability.  Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.  To the extent permitted by Law, each party to
this Agreement hereby waives any provision of law that renders any such
provision prohibited or unenforceable in any respect.

 

Section 8.8             Exhibits and Schedules.  The Exhibits and Schedules to this Agreement
are incorporated herein by reference and made a part of this Agreement.  The Seller Disclosure Schedule and the
Purchaser Disclosure Schedule are arranged in sections and paragraphs
corresponding to the numbered and lettered sections and paragraphs of Article 3
and Article 4, as applicable.  The
disclosure in any section or paragraph of the Seller Disclosure Schedule or the
Purchaser Disclosure Schedule qualifies other sections and paragraphs in this
Agreement only to the extent it is reasonably apparent that such disclosure is
applicable to such other sections and paragraphs.  The listing or inclusion of a copy of a
document or other item is not adequate to disclose an exception to any
representation or warranty in this Agreement unless the representation or
warranty relates to the existence of the document or item itself.

 

Section 8.9             Interpretation.  The language used in this Agreement is the
language chosen by the parties to express their mutual intent, and no provision
of this Agreement will be interpreted for or against any party because that
party or its attorney drafted the provision. 
The parties have had adequate opportunity to receive independent legal
advice with respect to the advisability of executing this Agreement, to make
such investigation of the facts pertaining to this Agreement and of all matters
to which this Agreement refers as he, she or it deems necessary, and to read
this Agreement and understand its contents and the parties’ respective rights
and obligations hereunder.

 

Section 8.10           Governing Law.  Unless any Exhibit or Schedule specifies
a different choice of law, the internal laws of the State of New York (without
giving effect to any choice or conflict of law provision or rule (whether
of the State of New York or any other jurisdiction) that would cause the
application of laws of any other jurisdiction)
govern all matters arising out of or relating to this Agreement and
its Exhibits and Schedules and all of the transactions it contemplates,
including its validity, interpretation, construction, performance and
enforcement and any disputes or controversies arising therefrom.

 

Section 8.11           Specific Performance.  The parties agree that irreparable damage
would occur in the event that any of the provisions of this Agreement were not
performed in accordance with their specific terms or were otherwise breached.  The parties accordingly agree that, in
addition to any other remedy to which they are entitled at law or in equity,
the parties are entitled to injunctive relief to prevent breaches of this
Agreement and otherwise to enforce specifically the provisions of this
Agreement.  Each party expressly waives
any requirement that any other party obtain any bond or provide any indemnity
in connection with any action seeking injunctive relief or specific enforcement
of the provisions of this Agreement.

 

Section 8.12           Jurisdiction and Service of
Process.  Any action or proceeding
arising out of or relating to this Agreement or the transactions contemplated
by this Agreement must be brought in the courts of the State of New York,
County of New York, or, if it has or can acquire jurisdiction, in the

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

47

 

United
States District Court for the Southern District of New York.  Each of the parties knowingly, voluntarily
and irrevocably submits to the exclusive jurisdiction of each such court in any
such action or proceeding and waives any objection it may now or hereafter have
to venue or to convenience of forum.  Any
party to this Agreement may make service on another party by sending or
delivering a copy of the process to the party to be served at the address and
in the manner provided for the giving of notices in Section 8.2.  Nothing in this Section 8.12, however,
affects the right of any party to serve legal process in any other manner
permitted by law.

 

Section 8.13           Waiver of Jury Trial.  EACH OF THE PARTIES
KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY LAW, ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
(WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR THE
ACTIONS OF ANY PARTY TO THIS AGREEMENT IN NEGOTIATION, ADMINISTRATION,
PERFORMANCE OR ENFORCEMENT OF THIS AGREEMENT.

 

Section 8.14           Counterparts.  The parties may execute this Agreement in
multiple counterparts, each of which constitutes an original as against the
party that signed it, and all of which together constitute one agreement.  This Agreement is effective upon delivery of
one executed counterpart from each party to the other parties.  The signatures of all parties need not appear
on the same counterpart.  The delivery of
signed counterparts by facsimile or email transmission that includes a copy of the sending
party’s signature is as effective as signing and delivering the counterpart in
person.

 

 

[Signature page follows.]

 

 

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

48

 

 

The parties have executed
and delivered this Agreement as of the date indicated in the first sentence of
this Agreement.

 

	
   

  	
  PRICELINE.COM
  MAURITIUS CO. LTD

  	
   

  	
   

  	
  PRICELINE.COM,
  INCORPORATED

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Glenn D. Fogel

  	
   

  	
  By:

  	
  /s/
  Robert J. Mylod, Jr.

  	
   

  
	
   

  	
  Name: Glenn D. Fogel

  	
   

  	
   

  	
  Name: Robert J. Mylod, Jr.

  	
   

  
	
   

  	
  Title: Director

  	
   

  	
   

  	
  Title: Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/
  Michael Kenny

  	
   

  	
   

  	
  /s/
  Robert Rosenstein

  	
   

  
	
   

  	
  Michael
  Kenny, in his individual  capacity

  	
   

  	
   

  	
  Robert
  Rosenstein, in his individual  capacity

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/
  James Thomson-Glover

  	
   

  	
   

  	
  /s/
  Joost Doevelaar

  	
   

  
	
   

  	
  James
  Thomson-Glover, in his individual capacity

  	
   

  	
   

  	
  Joost
  Doevelaar, in his individual capacity

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/
  Wilfred Fan

  	
   

  	
   

  	
  /s/
  Alan Platt

  	
   

  
	
   

  	
  Wilfred
  Fan, in his individual capacity

  	
   

  	
   

  	
  Alan
  Platt, in his individual capacity

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/
  Ravina Sachdev

  	
   

  	
   

  	
  /s/
  Nawee Sribhadung

  	
   

  
	
   

  	
  Ravina
  Sachdev, in her individual  capacity

  	
   

  	
   

  	
  Nawee
  Sribhadung, in his individual capacity

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/
  Arjan Van der Meer

  	
   

  	
   

  	
  /s/
  Andreas Weigend

  	
   

  
	
   

  	
  Arjan
  Van der Meer, in his individual capacity

  	
   

  	
   

  	
  Andreas
  Weigend, in his individual  capacity

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/
  James Minutello

  	
   

  	
   

  	
  /s/
  Mark Gross

  	
   

  
	
   

  	
  James
  Minutello, in his individual capacity

  	
   

  	
   

  	
  Mark
  Gross, in his individual capacity

  	
   

  

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

49

 

 

	
   

  	
  /s/
  Nathan Maltz

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Nathan
  Maltz, in his individual capacity

  	
   

  	
   

  	
   

  	
   

  

 

 

 

 

 

ACCEPTANCE AND AGREEMENT OF
SELLER REPRESENTATIVE

 

The undersigned, being the
Seller Representative appointed in Section 8.1 of the foregoing Agreement,
agrees to serve as the Seller Representative and to be bound by the terms of
the Agreement pertaining to that role.

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  [***]

  

 

[***] = Confidential
Treatment requested for redacted portion; redacted portion has been filed
separately with the Commission.

 

50Exhibit 4.1

 

COMMON STOCK PURCHASE WARRANT

 

To Purchase
[            ]
Shares of Class A Common Stock of

 

Date:           ,
2008

 

WAVE SYSTEMS CORP.

 

THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”)
certifies that, for value received,
                                        
(the “Holder”), is entitled, upon the terms and subject to the
limitations on exercise and the conditions hereinafter set forth, at any time
on or after the date hereof (the “Initial Exercise Date”) and on or
prior to the fifth (5th) anniversary of the date hereof (the “Termination
Date”) but not thereafter, to subscribe for and purchase from Wave Systems
Corp., a Delaware corporation (the “Company”), up to
[            ]  shares (the “Warrant Shares”) of Class A
Common Stock, par value $0.01 per share, of the Company (the “Common Stock”).
The purchase price of one share of Common Stock under this Warrant shall be
equal to the Exercise Price, as defined in Section 2(b). This Warrant is
being issued pursuant to the terms of that certain Subscription Agreement, of
even date herewith (the “Subscription Agreement”), among the Company and
the Holder.

 

Section 1.                                            Definitions. As used herein, the following terms
shall have the following meanings:

 

“Trading Day” means a day on which the Common
Stock is traded on a Trading Market.

 

“Trading Market” means the following markets or
exchanges on which the Common Stock is listed or quoted for trading on the date
in question: the Nasdaq Global Market, the American Stock Exchange, the New
York Stock Exchange, the Nasdaq National Market or the OTC Bulletin Board.

 

Section 2.                                            Exercise.

 

a)                                      Exercise of Warrant. Exercise of the purchase rights
represented by this Warrant may be made, in whole or in part, at any time or
times on or after the Initial Exercise Date and on or before the Termination
Date by delivery to the Company of a duly executed facsimile copy of the Notice
of Exercise Form annexed hereto (or such other office or agency of the
Company as it may designate by notice in writing to the registered Holder at
the address of such Holder appearing on the books of the Company). The Holder
shall be required to physically surrender this Warrant to the Company when the
Holder has purchased all of the Warrant Shares available hereunder and the
Warrant has been exercised in full. Partial exercises of this Warrant resulting
in purchases of a portion of the total number of Warrant Shares available
hereunder shall have the effect of lowering the outstanding number of Warrant
Shares purchasable hereunder in an amount equal to the applicable number of
Warrant Shares purchased. The Holder and the Company shall maintain records
showing the number of Warrant Shares purchased and the date of such purchases. The
Company shall honor any valid Notice of Exercise Form pursuant to the terms
hereof. The Company shall deliver an objection to any invalid

 

1

 

Notice of Exercise Form within
3 Trading Days of its receipt thereof. The Holder and any assignee, by
acceptance of this Warrant, acknowledge and agree that, by reason of the
provisions of this paragraph, following the purchase of a portion of the
Warrant Shares hereunder, the number of Warrant Shares available for purchase
hereunder at any given time may be less than the amount stated on the face
hereof.

 

b)                                     Exercise Price. The exercise price of the Common Stock
under this Warrant shall be $1.15, subject
to adjustment hereunder (the “Exercise Price”).

 

c)                                      Cashless Exercise. If at any time after one year from the
date of issuance of this Warrant there is no effective Registration Statement
registering, or no current prospectus available for, the resale of the Warrant
Shares by the Holder, then this Warrant may also be exercised at such time by
means of a “cashless exercise” in which the Holder shall be entitled to receive
a certificate for the number of Warrant Shares equal to the quotient obtained
by dividing [(A-B) (X)] by (A), where:

 

(A) = the VWAP on the Trading Day immediately
preceding the date of such election;

 

(B) = the Exercise Price of this Warrant, as
adjusted; and

 

(X) = the number of Warrant Shares issuable upon
exercise of this Warrant in accordance with the terms of this Warrant by means
of a cash exercise rather than a cashless exercise.

 

For purposes hereof “VWAP”
means, for any date, the price determined by the first of the following clauses
that applies: (a) if the Common Stock is then listed or quoted on a
Trading Market, the daily volume weighted average price of the Common Stock for
such date (or the nearest preceding date) on the Trading Market on which the
Common Stock is then listed or quoted for trading as reported by Bloomberg
Financial L.P. (based on a Trading Day from 9:30 a.m. (New York City time)
to 4:02 p.m. (New York City time); (b) if the OTC Bulletin Board is
not a Trading Market, the volume weighted average price of the Common Stock for
such date (or the nearest preceding date) on the OTC Bulletin Board; (c) if
the Common Stock is not then quoted for trading on the OTC Bulletin Board and
if prices for the Common Stock are then reported in the “Pink Sheets” published
by Pink Sheets, LLC (or a similar organization or agency succeeding to its
functions of reporting prices), the most recent bid price per share of the
Common Stock so reported; or (d) in all other cases, the fair market value
of a share of Common Stock as determined in a reasonable manner and in good
faith by the Company.

 

d)                                     Mechanics of Exercise.

 

i.                                          Authorization of Warrant Shares. The Company covenants that all Warrant
Shares which may be issued upon the exercise of the purchase rights represented
by this Warrant will, upon exercise of the purchase rights represented by this
Warrant, be duly authorized, validly issued, fully paid and nonassessable

 

2

 

and free from all taxes,
liens and charges in respect of the issue thereof (other than taxes in respect
of any transfer occurring contemporaneously with such issue).

 

ii.                                       Delivery of Certificates Upon Exercise. Certificates for shares purchased hereunder
shall be transmitted by the transfer agent of the Company to the Holder by
crediting the account of the Holder’s prime broker with the Depository Trust
Company through its Deposit Withdrawal Agent Commission (“DWAC”) system
if the Company is a participant in such system, and otherwise by physical
delivery to the address specified by the Holder in the Notice of Exercise
within 3 Trading Days from the delivery to the Company of the Notice of
Exercise Form, surrender of this Warrant (if required) and payment of the
aggregate Exercise Price as set forth above (“Warrant Share Delivery Date”).
This Warrant shall be deemed to have been exercised on the date the Exercise
Price is received by the Company. The Warrant Shares shall be deemed to have
been issued, and Holder or any other person so designated to be named therein
shall be deemed to have become a holder of record of such shares for all
purposes, as of the date the Warrant has been exercised by payment to the
Company of the Exercise Price and all taxes required to be paid by the Holder,
if any, have been paid. The Company and the Holder may also agree to make
arrangements for the delivery of the Warrant Shares, and the payment of the
aggregate Exercise Price, by means of “DVP”, as described in the Subscription
Agreement.

 

iii.                                    Delivery of New Warrants Upon Exercise. If this Warrant shall have been
exercised in part, the Company shall, at the request of a Holder and upon
surrender of this Warrant certificate, at the time of delivery of the
certificate or certificates representing Warrant Shares, deliver to Holder a
new Warrant evidencing the rights of Holder to purchase the unpurchased Warrant
Shares called for by this Warrant, which new Warrant shall in all other
respects be identical with this Warrant.

 

iv.                                   Rescission Rights. If the Company fails to cause its
transfer agent to transmit to the Holder a certificate or certificates
representing the Warrant Shares pursuant to this Section 2(d) by the
Warrant Share Delivery Date, then the Holder will have the right to rescind
such exercise.

 

v.                                      No Fractional Shares or Scrip. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of this
Warrant. As to any fraction of a share which Holder would otherwise be entitled
to purchase upon such exercise, the Company shall pay a cash adjustment in
respect of such final fraction in an amount equal to such fraction multiplied
by the Exercise Price.

 

vi.                                   Charges, Taxes and Expenses. Issuance of certificates for Warrant
Shares shall be made without charge to the Holder for any issue or transfer tax
or other incidental expense in respect of the issuance of such certificate, all
of which taxes and expenses shall be paid by the Company, and such certificates
shall be issued in the name of the Holder or in such name or names as may be
directed by

 

3

 

the Holder; provided,
however, that in the event certificates for Warrant Shares are to be
issued in a name other than the name of the Holder, this Warrant when
surrendered for exercise shall be accompanied by the Assignment Form attached
hereto duly executed by the Holder; and the Company may require, as a condition
thereto, the payment of a sum sufficient to reimburse it for any transfer tax
incidental thereto.

 

vii.                                Closing of Books. The Company will not close its
stockholder books or records in any manner which prevents the timely exercise
of this Warrant, pursuant to the terms hereof.

 

viii.                             Compensation for Buy-In on Failure to
Timely Deliver Certificates Upon Exercise. In addition to any other rights available to the
Holder, if the Company fails to cause its transfer agent to transmit to the
Holder a certificate or certificates representing the Warrant Shares pursuant
to an exercise on or before the Warrant Share Delivery Date, and if after such
date the Holder is required by its broker to purchase (in an open market
transaction or otherwise) shares of Common Stock to deliver in satisfaction of
a sale by the Holder of the Warrant Shares which the Holder anticipated
receiving upon such exercise (a “Buy-In”), then the Company shall (1) pay
in cash to the Holder the amount by which (x) the Holder’s total purchase
price (including brokerage commissions, if any) for the shares of Common Stock
so purchased exceeds (y) the amount obtained by multiplying (A) the
number of Warrant Shares that the Company was required to deliver to the Holder
in connection with the exercise at issue times (B) the price at which the
sell order giving rise to such purchase obligation was executed, and (2) at
the option of the Holder, either reinstate the portion of the Warrant and
equivalent number of Warrant Shares for which such exercise was not honored or
deliver to the Holder the number of shares of Common Stock that would have been
issued had the Company timely complied with its exercise and delivery
obligations hereunder. For example, if the Holder purchases Common Stock having
a total purchase price of $11,000 to cover a Buy-In with respect to an
attempted exercise of shares of Common Stock with an aggregate sale price
giving rise to such purchase obligation of $10,000, under clause (1) of
the immediately preceding sentence the Company shall be required to pay the
Holder $1,000. The Holder shall provide the Company written notice indicating
the amounts payable to the Holder in respect of the Buy-In, together with
applicable confirmations and other evidence reasonably requested by the
Company. Nothing herein shall limit a Holder’s right to pursue any other
remedies available to it hereunder, at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief with
respect to the Company’s failure to timely deliver certificates representing
shares of Common Stock upon exercise of the Warrant as required pursuant to the
terms hereof.

 

e)                                      Exercise Limitations.

 

i.                                          Holder’s Restrictions. The Company shall not effect any
exercise of this Warrant, and a Holder shall not have the right to exercise any
portion of

 

4

 

this Warrant, pursuant to
Section 2 or otherwise, to the extent that after giving effect to such
issuance after exercise, such Holder (together with such Holder’s affiliates,
and any other person or entity acting as a group together with such Holder or
any of such Holder’s affiliates), as set forth on the applicable Notice of
Exercise, would beneficially own in excess of the Beneficial Ownership
Limitation (as defined below).  For purposes of the foregoing sentence,
the number of shares of Common Stock beneficially owned by such Holder and its
affiliates shall include the number of shares of Common Stock issuable upon
exercise of this Warrant with respect to which the determination of such
sentence is being made, but shall exclude the number of shares of Common Stock
which would be issuable upon (A) exercise of the remaining, nonexercised
portion of this Warrant beneficially owned by such Holder or any of its
affiliates and (B) exercise or conversion of the unexercised or
nonconverted portion of any other securities of the Company (including, without
limitation, any other Warrants) subject to a limitation on conversion or
exercise analogous to the limitation contained herein beneficially owned by
such Holder or any of its affiliates.  Except as set forth in the
preceding sentence, for purposes of this Section 2(e), beneficial
ownership shall be calculated in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder, it
being acknowledged by a Holder that the Company is not representing to such
Holder that such calculation is in compliance with Section 13(d) of
the Exchange Act and such Holder is solely responsible for any schedules
required to be filed in accordance therewith. To the extent that the limitation
contained in this Section 2(e) applies, the determination of whether
this Warrant is exercisable (in relation to other securities owned by such
Holder) and of which a portion of this Warrant is exercisable shall be in the
sole discretion of a Holder, and the submission of a Notice of Exercise shall
be deemed to be each Holder’s determination of whether this Warrant is
exercisable (in relation to other securities owned by such Holder) and of which
portion of this Warrant is exercisable, in each case subject to such aggregate
percentage limitation, and the Company shall have no obligation to verify or
confirm the accuracy of such determination. In addition, a determination as to
any group status as contemplated above shall be determined in accordance with Section 13(d) of
the Exchange Act and the rules and regulations promulgated thereunder. For
purposes of this Section 2(e), in determining the number of outstanding
shares of Common Stock, a Holder may rely on the number of outstanding shares of
Common Stock as reflected in (x) the Company’s most recent Form 10-Q
or Form 10-K, as the case may be, (y) a more recent public
announcement by the Company or (z) any other notice by the Company or the
Company’s Transfer Agent setting forth the number of shares of Common Stock
outstanding.  Upon the written or oral request of a Holder, the Company
shall within two Trading Days confirm orally and in writing to such Holder the
number of shares of Common Stock then outstanding.  In any case, the
number of outstanding shares of Common Stock shall be determined after giving
effect to the conversion or exercise of securities of the Company, including
this Warrant, by such Holder or its affiliates since the date as of which such
number of outstanding shares of Common Stock was reported. The “Beneficial
Ownership Limitation”

 

5

 

shall be 4.99% of the
number of shares of the Common Stock outstanding immediately after giving
effect to the issuance of shares of Common Stock issuable upon exercise of this
Warrant. The Beneficial Ownership Limitation provisions of this Section 2(e) may
be waived by such Holder, at the election of such Holder, upon not less than 61
days’ prior notice to the Company to change the Beneficial Ownership Limitation
to 9.99% of the number of shares of the Common Stock outstanding immediately
after giving effect to the issuance of shares of Common Stock upon exercise of
this Warrant, and the provisions of this Section 2(e) shall continue
to apply. Upon such a change by a Holder of the Beneficial Ownership Limitation
from such 4.99% limitation to such 9.99% limitation, the Beneficial Ownership
Limitation may not be waived by such Holder. The provisions of this paragraph
shall be implemented in a manner otherwise than in strict conformity with the
terms of this Section 2(e) to correct this paragraph (or any portion
hereof) which may be defective or inconsistent with the intended Beneficial
Ownership Limitation herein contained or to make changes or supplements
necessary or desirable to properly give effect to such limitation. The
limitations contained in this paragraph shall apply to a successor holder of
this Warrant.

 

ii.                                       Exercise Without Registration Statement. If, at the time of any exercise of this
Warrant, the Warrant Shares shall not be registered under the Securities Act of
1933, as amended (the “Securities Act”), the Company may require, as a
condition of such exercise, that the Holder furnish to the Company an opinion
of counsel reasonably satisfactory to the Company to the effect that such
exercise may be made without registration under the Securities Act or
registration or qualification under any state or other applicable securities
laws.

 

Section 3.                                            Certain  Adjustments.

 

a)                                      Stock Dividends and Splits. If the Company, at any time while this
Warrant is outstanding: (A) pays a stock dividend or otherwise make a
distribution or distributions on shares of its Common Stock or any other equity
or equity equivalent securities payable in shares of Common Stock (which, for
avoidance of doubt, shall not include any shares of Common Stock issued by the
Company pursuant to this Warrant), (B) subdivides outstanding shares of
Common Stock into a larger number of shares, (C) combines (including by
way of reverse stock split) outstanding shares of Common Stock into a smaller
number of shares, or (D) issues by reclassification of shares of the
Common Stock any shares of capital stock of the Company, then in each case the
Exercise Price shall be multiplied by a fraction of which the numerator shall
be the number of shares of Common Stock (excluding treasury shares, if any)
outstanding immediately before such event and of which the denominator shall be
the number of shares of Common Stock outstanding immediately after such event
and the number of shares issuable upon exercise of this Warrant shall be
proportionately adjusted. Any adjustment made pursuant to this Section 3(a) shall
become effective immediately after the record date for the determination of
stockholders entitled to receive such dividend or

 

6

 

distribution and shall
become effective immediately after the effective date in the case of a
subdivision, combination or re-classification.

 

b)                                     Fundamental Transactions. If, at any time after the Initial
Exercise Date, there shall occur any capital reorganization or reclassification
of the Common Stock (other than a change in par value or a subdivision or
combination as provided for in Section 3(a) above), or any consolidation
or merger of the Company with or into another corporation, or a transfer of all
or substantially all of the assets of the Company, or the payment of a
liquidating distribution, then, as part of any such reorganization,
reclassification, consolidation, merger, sale, or liquidating distribution,
lawful provision shall be made so that Holder shall have the right thereafter
to receive upon the exercise hereof (to the extent still exercisable) the kind
and amount of shares of stock or other securities or property to which Holder
would have been entitled to receive if, immediately prior to any such
reorganization, reclassification, consolidation, merger, sale, or liquidating
distribution, as the case may be, Holder had held the number of shares of Common
Stock which were then purchasable upon the exercise of this Warrant. In any
such case, appropriate adjustment (as reasonably determined by the Board of
Directors of the Company) shall be made in the application of the provisions
set forth herein with respect to the rights and interests thereafter of Holder
such that the provisions set forth in this paragraph (b) shall thereafter
be applicable, as nearly as is reasonably practicable, in relation to any
shares of stock or other securities or property thereafter deliverable upon the
exercise of this Warrant.

 

c)                                      Calculations. All calculations under this Section 3
shall be made to the nearest cent or the nearest 1/100th of a share, as the
case may be. For purposes of this Section 3, the number of shares of Common
Stock deemed to be issued and outstanding as of a given date shall be the sum
of the number of shares of Common Stock (excluding treasury shares, if any)
issued and outstanding.

 

d)                                     Notice to Holders. Whenever the Exercise Price is adjusted
pursuant to this Section 3, the Company shall promptly mail to each Holder
a notice setting forth the Exercise Price after such adjustment and setting
forth a brief statement of the facts requiring such adjustment.

 

Section 4.                                            Transfer of
Warrant.

 

a)                                      Transferability. Subject to Section 5(a) below,
this Warrant and all rights hereunder are transferable, in whole or in part,
upon surrender of this Warrant at the principal office of the Company, together
with a written assignment of this Warrant substantially in the form attached
hereto duly executed by the Holder or its agent or attorney and funds
sufficient to pay any transfer taxes payable upon the making of such transfer. Upon
such surrender and, if required, such payment, the Company shall execute and
deliver a new Warrant or Warrants in the name of the assignee or assignees and
in the denomination or denominations specified in such instrument of
assignment, and shall issue to the assignor a new Warrant evidencing the
portion of this Warrant not so assigned, and this Warrant shall promptly be
cancelled. A Warrant, if properly assigned,

 

7

 

may be exercised by a new
holder for the purchase of Warrant Shares without having a new Warrant issued.

 

b)                                  New Warrants. This Warrant may be divided or combined
with other Warrants upon presentation hereof at the aforesaid office of the
Company, together with a written notice specifying the names and denominations
in which new Warrants are to be issued, signed by the Holder or its agent or
attorney. Subject to compliance with Section 4(a), as to any transfer
which may be involved in such division or combination, the Company shall
execute and deliver a new Warrant or Warrants in exchange for the Warrant or
Warrants to be divided or combined in accordance with such notice.

 

Section 5.                                         Miscellaneous.

 

a)                                   Title to Warrant. Prior to the Termination Date and
subject to compliance with applicable laws and Section 4 of this Warrant,
this Warrant and all rights hereunder are transferable, in whole or in part, at
the office or agency of the Company by the Holder in person or by duly
authorized attorney, upon surrender of this Warrant together with the
Assignment Form annexed hereto properly endorsed.

 

b)                                  No Rights as Shareholder Until Exercise. This Warrant does not entitle the
Holder to any voting rights or other rights as a shareholder of the Company
prior to the exercise hereof. Upon the surrender of this Warrant and the
payment of the aggregate Exercise Price (or by means of a cashless exercise),
the Warrant Shares so purchased shall be and be deemed to be issued to such
Holder as the record owner of such shares as of the close of business on the
later of the date of such surrender or payment.

 

c)                                   Loss, Theft, Destruction or Mutilation of
Warrant. The
Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this
Warrant or any stock certificate relating to the Warrant Shares, and in case of
loss, theft or destruction, of indemnity or security reasonably satisfactory to
it (which, in the case of the Warrant, shall not include the posting of any
bond), and upon surrender and cancellation of such Warrant or stock
certificate, if mutilated, the Company will make and deliver a new Warrant or
stock certificate of like tenor and dated as of such cancellation, in lieu of
such Warrant or stock certificate.

 

d)                                  Saturdays, Sundays, Holidays, etc. If the last or appointed day for the
taking of any action or the expiration of any right required or granted herein
shall be a Saturday, Sunday or a legal holiday, then such action may be taken
or such right may be exercised on the next succeeding day not a Saturday,
Sunday or legal holiday.

 

e)                                   Authorized Shares. The Company covenants that during the
period the Warrant is outstanding, it will reserve from its authorized and
unissued Common Stock a sufficient number of shares to provide for the issuance
of the Warrant Shares upon the exercise of any purchase rights under this
Warrant. The Company further covenants that its issuance of this Warrant shall
constitute full authority to its officers who are charged with the duty of
executing stock certificates to execute and issue the necessary 

 

8

certificates for the
Warrant Shares upon the exercise of the purchase rights under this Warrant.

 

f)             Governing Law; Jurisdiction. This Warrant will be
governed by, and construed in accordance with, the internal laws of the State
of New York, without giving effect to the principles of conflicts of law that
would require the application of the laws of any other jurisdiction. Any legal
action, suit or proceeding arising out of or relating to this Warrant or the
transactions contemplated hereby shall only be instituted, heard and
adjudicated (excluding appeals) only in a state or federal court located in New
York, and each party hereto knowingly, voluntarily and intentionally waives any
objection which such party may now or hereafter have to the laying of the venue
of any such action, suit or proceeding, and irrevocably submits to the
exclusive personal jurisdiction of any such court in any such action, suit or
proceeding. Service of process in connection with any such action, suit or
proceeding may be served on each party hereto anywhere in the world by the same
methods as are specified for the giving of notices under this Agreement.

 

g)            Restrictions. The Holder acknowledges that the
Warrant Shares acquired upon the exercise of this Warrant, if not registered,
will have restrictions upon resale imposed by state and federal securities
laws.

 

h)            Notices. Any notice, request or other document required or
permitted to be given or delivered to the Holder by the Company shall be
delivered in accordance with the notice provisions of the Subscription
Agreement.

 

i)              Limitation of Liability. No provision hereof, in the absence of
any affirmative action by Holder to exercise this Warrant or purchase Warrant
Shares, and no enumeration herein of the rights or privileges of Holder, shall
give rise to any liability of Holder for the purchase price of any Common Stock
or as a stockholder of the Company, whether such liability is asserted by the
Company or by creditors of the Company.

 

j)              Remedies. Holder, in addition to being entitled to exercise
all rights granted by law, including recovery of damages, will be entitled to
specific performance of its rights under this Warrant. The Company agrees that
monetary damages would not be adequate compensation for any loss incurred by
reason of a breach by it of the provisions of this Warrant and hereby agrees to
waive the defense in any action for specific performance that a remedy at law
would be adequate.

 

k)             Successors and Assigns. Subject to applicable securities laws,
this Warrant and the rights and obligations evidenced hereby shall inure to the
benefit of and be binding upon the successors of the Company and the successors
and permitted assigns of Holder. The provisions of this Warrant are intended to
be for the benefit of all Holders from time to time of this Warrant and shall
be enforceable by any such Holder or holder of Warrant Shares.

 

l)              Amendment. This Warrant may be modified or amended or the
provisions hereof waived with the written consent of the Company and the
Holder.

 

9

 

m)            Severability. Wherever possible, each provision of
this Warrant shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Warrant shall be prohibited
by or invalid under applicable law, such provision shall be ineffective to the
extent of such prohibition or invalidity, without invalidating the remainder of
such provisions or the remaining provisions of this Warrant.

 

n)            Headings. The headings used in this Warrant are for the
convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant.

 

********************

 

10

 

IN WITNESS WHEREOF, the
Company has caused this Warrant to be executed by its officer thereunto duly
authorized.

 

 

	
  Dated:          

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WAVE SYSTEMS CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

11

 

NOTICE OF EXERCISE

 

TO:         WAVE
SYSTEMS CORP.

 

(1) The
undersigned hereby elects to purchase
                
Warrant Shares of the Company pursuant to the terms of the attached Warrant
(only if exercised in full), and tenders herewith payment of the exercise price
in full, together with all applicable transfer taxes, if any.

 

(2) Payment
shall take the form of (check applicable box):

 

[ ] in lawful money of
the United States; or

 

[ ] the cancellation of
such number of Warrant Shares as is necessary, in accordance with the formula
set forth in subsection 2(c), to exercise this Warrant with respect to the
maximum number of Warrant Shares purchasable pursuant to the cashless exercise
procedure set forth in subsection 2(c).

 

(3) Please
issue a certificate or certificates representing said Warrant Shares in the
name of the undersigned or in such other name as is specified below:

 

	
   

  	
   

  	
   

  

 

The Warrant Shares shall be delivered to the following:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

ASSIGNMENT FORM

 

(To assign the foregoing warrant, execute

this form and supply required information. 

Do not use this form to exercise the warrant.)

 

 

FOR VALUE RECEIVED, the
foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

                                                                                              
whose address is

 

                                                                                                                              .

 

 

                                                                                                                              .

 

	
   

  	
  Dated:
                              ,
             

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Holder’s
  Signature:

  	
   

  	
   

  
	
   

  	
  Holder’s
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
  Signature
  Guaranteed:

  	
   

  	
   

  
							

 

 

NOTE: The signature to this Assignment Form must correspond with
the name as it appears on the face of the Warrant, without alteration or
enlargement or any change whatsoever, and must be guaranteed by a bank or trust
company. Officers of corporations and those acting in a fiduciary or other
representative capacity should file proper evidence of authority to assign the
foregoing Warrant.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]