Document:

Exhibit 4.1

SUPPLEMENTAL INDENTURE

dated as of May 20, 2011

among

AETNA INC.,

and

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

 

4.125% Senior Notes due June 1, 2021

 

  

  

  

TABLE OF CONTENTS

Page

 

ARTICLE 1

DEFINITIONS

	
Section 1.01. Definitions

	
2

	
Section 1.02. Section References

	
6

	  	  
	
ARTICLE 2

	
THE NOTES

	  	  
	
Section 2.01. Issue of Notes

	
6

	
Section 2.02. Stated Maturity

	
7

	
Section 2.03. Notes Issuable as Global Securities.

	
7

	
Section 2.04. Interest and Payment

	
7

	
Section 2.05. Payment of Interest

	
7

	
Section 2.06. Optional Redemption

	
7

	
Section 2.07. Change of Control Offer to Purchase.

	
8

	
Section 2.08. Applicability of Certain Provisions of the Base Indenture in Respect of the Notes

	9
	
Section 2.09. Registrar and Paying Agent

	
10

	
Section 2.10. No Sinking Fund

	
10

	
Section 2.11. Minimum Denominations

	
10

	  	  
	
ARTICLE 3

	
MISCELLANEOUS

	  	  
	
Section 3.01. Relation to Indenture

	
10

	
Section 3.02. Continued Effect

	
10

	
Section 3.03. Provisions Binding on Company’s Successors

	
10

	
Section 3.04. Certain Trustee Matters.

	
10

	
Section 3.05. Governing Law

	
10

	
Section 3.06. Counterparts

	
11

Exhibit A – Form of Security

 

  

i

  

 

SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of May 20, 2011, between AETNA INC., a corporation duly organized and validly existing under the laws of the Commonwealth of Pennsylvania (the “Company”), having its principal office at 151 Farmington Avenue, Hartford, Connecticut 06156 and U.S. BANK NATIONAL ASSOCIATION, as successor-in-interest to State Street Bank and Trust Company, as trustee (the “Trustee”).

 

RECITALS

 

WHEREAS, the Company and the Trustee entered into a Senior Indenture dated as of March 2, 2001 (the “Base Indenture”, and as supplemented by this Supplemental Indenture, the “Indenture”) providing for the issuance from time to time of the Company’s debentures, notes or other evidences of indebtedness (the “Securities”), to be issued in one more series as in the Base Indenture provided;

 

WHEREAS, Sections 201 and 301 of the Base Indenture provide that the Company and the Trustee may establish the terms of a new series of Securities in an indenture supplemental to the Base Indenture;

 

WHEREAS, Section 901 of the Base Indenture provides that the Company and the Trustee may enter into an indenture supplemental to the Base Indenture, without the consent of any Holders, to eliminate any of the provisions of the Base Indenture in respect of a new series of Securities so established pursuant to Section 301 of the Base Indenture;

 

WHEREAS, pursuant to resolutions adopted by the Board of Directors of the Company on September 28, 2007 and the Delegation of Authority of Mark T. Bertolini, Chairman, Chief Executive Officer and President of the Company, dated May 11, 2011 (collectively, the “Company Resolutions”), the Company has approved to be established a new series of Securities, designated as its 4.125% Senior Notes due June 1, 2021 (the “Notes”) as in this Supplemental Indenture provided; and

 

WHEREAS, all requirements necessary to make this Supplemental Indenture a valid, binding and enforceable instrument in accordance with its terms and to make the Notes, when executed, authenticated and delivered by the Company, the valid, binding and enforceable obligations of the Company have been done and performed.

 

NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained and intending to be legally bound, the parties to this Supplemental Indenture hereby agree as follows:

 

  

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ARTICLE 1

Definitions

 

Section 1.01.  Definitions.

 

(a)      Capitalized terms used herein and not otherwise defined herein have the meanings assigned to them in the Base Indenture.

 

(b)      The following terms shall have the meanings assigned to them in this ‎Section 1.01(b):

 

“Base Indenture” has the meaning stated in the first recital of this Supplemental Indenture.

 

“Below Investment Grade Rating Event” means the Notes are rated below an Investment Grade Rating by each of the Rating Agencies on any date from the earlier of (1) the occurrence of a Change of Control and (2) public notice of the Company’s intention to effect a Change of Control, in each case until the end of the 60-day period following the earlier of (1) the occurrence of a Change of Control and (2) public notice of the Company’s intention to effect a Change of Control; provided, however, that if (i) during such 60-day period one or more Rating Agencies has publicly announced that it is considering the possible downgrade of the Notes, and (ii) a downgrade by each of the Rating Agencies that has made such an announcement would result in a Below Investment Grade Rating Event, then such 60-day period shall be extended for such time as the rating of the Notes by any such Rating Agency remains under publicly announced consideration for possible downgrade to a rating below an Investment Grade Rating and a downgrade by such Rating Agency to a rating below an Investment Grade Rating could cause a Below Investment Grade Rating Event. Notwithstanding the foregoing, a rating event otherwise arising by virtue of a particular reduction in rating will not be deemed to have occurred in respect of a particular Change of Control (and thus will not be deemed a Below Investment Grade Rating Event for purposes of the definition of Change of Control Triggering Event) if the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform the Trustee in writing at the Company’s or the Trustee’s request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control has occurred at the time of the rating event).

 

“Change of Control” means the occurrence of any of the following: (1) direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Company and its subsidiaries taken as a whole to any “person” (as that term is used in Section 13(d)(3) of the 

 

  

2

  

 

Exchange Act) other than to the Company or one of its subsidiaries; (2) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person” (as that term is used in Section 13(d)(3) of the Exchange Act) other than the Company or one of its subsidiaries becomes the beneficial owner, directly or indirectly, of more than 50% of the then outstanding number of shares of the Company’s voting stock; or (3) the first day on which a majority of the members of the Company’s Board of Directors are not Continuing Directors; provided, however, that a transaction will not be deemed to involve a Change of Control if (A) the Company becomes a wholly owned subsidiary of a holding company and (B)(x) the holders of the voting stock of such holding company immediately following that transaction are substantially the same as the holders of the Company’s voting stock immediately prior to that transaction or (y) immediately following that transaction no “person” (as that term is used in Section 13(d)(3) of the Exchange Act) is the beneficial owner, directly or indirectly, of more than 50% of the voting stock of such holding company. For purposes of this definition, “voting stock” means capital stock of any class or kind the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of the Company, even if the right to vote has been suspended by the happening of such a contingency.

 

“Change of Control Offer” has the meaning stated in ‎Section 2.07(a) of this Supplemental Indenture.

 

“Change of Control Payment” has the meaning stated in ‎Section 2.07(a) of this Supplemental Indenture.

 

“Change of Control Payment Date” has the meaning stated in ‎Section 2.07(a) of this Supplemental Indenture.

 

“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Below Investment Grade Rating Event.

 

“Company” means the Person named as the “Company” in the first paragraph of this Supplemental Indenture until a successor Person shall have become such pursuant to the applicable provisions of the Indenture, and thereafter “Company” shall mean such successor Person.

 

“Company Resolutions” has the meaning stated in the fourth recital of this Supplemental Indenture.

 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing

 

  

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new issues of corporate debt securities of comparable maturity to the remaining term of the Notes to be redeemed.

 

“Comparable Treasury Price” means, with respect to any Redemption Date for any Notes, the average of all Reference Treasury Dealer Quotations obtained.

 

“Continuing Directors” means, as of any date of determination, any member of the Board of Directors of the Company who (1) was a member of the Board of Directors of the Company on the date of the issuance of the Notes; or (2) was nominated for election or elected to the Board of Directors of the Company with the approval of a majority of the Continuing Directors who were members of such Board of Directors of the Company at the time of such nomination or election (either by specific vote or by approval of the Company’s proxy statement in which such member was named as a nominee for election as a director).

 

“DTC” means The Depository Trust Company.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and any successor statute thereto.

 

“Fitch” means Fitch Ratings Inc.

 

“Indenture” has the meaning stated in the first recital of this Supplemental Indenture.

 

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Trustee after consultation with the Company.

 

“Investment Grade Rating” means a rating by Moody’s equal to or higher than Baa3 (or the equivalent under any successor rating category of Moody’s), a rating by S&P equal to or higher than BBB- (or the equivalent under any successor rating category of S&P), a rating by Fitch equal to or higher than BBB- (or the equivalent under any successor rating category of Fitch), and the equivalent investment grade credit rating from any replacement rating agency or rating agencies selected by the Company under the circumstances permitting the Company to select a replacement agency and in the manner for selecting a replacement agency, in each case as set forth in the definition of “Rating Agencies”.

 

“Moody’s” means Moody’s Investors Service, Inc.

 

“Notes” has the meaning stated in the fourth recital of this Supplemental Indenture.

 

“Primary Treasury Dealer” has the meaning stated in the definition of “Reference Treasury Dealer” in this ‎Section 1.01(b).

 

  

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“Rating Agencies” means (1) Moody’s, S&P and Fitch; and (2) if any or all of Moody’s, S&P or Fitch ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of the Company’s control, a “nationally recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, that the Company selects (pursuant to a resolution of the Company’s Board of Directors) as a replacement agency for any of Moody’s, S&P or Fitch, or all of them, as the case may be.

 

“Reference Treasury Dealer” means each of Goldman, Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. Incorporated.  If any Reference Treasury Dealer ceases to be a primary U.S. government securities dealer in the United States (a “Primary Treasury Dealer”), the Company shall substitute another Primary Treasury Dealer for that dealer.

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by that Reference Treasury Dealer at 5:00 p.m. on the third Business Day preceding the Redemption Date.

 

“Securities” has the meaning stated in the first recital of this Supplemental Indenture and more particularly means any Securities authenticated and delivered under the Indenture, including, without limitation, the Notes.

 

“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.

 

“Supplemental Indenture” has the meaning stated in the first paragraph of this instrument.

 

“Treasury Rate” means, with respect to any Redemption Date for any portion of the Notes,

 

	
  

	
·

	
the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the date of Maturity for the Notes, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined and the Treasury 

 

  

5

  

 

	
  

	
 

	
Rate shall be interpolated or extrapolated from those yields on a straight line basis, rounding to the nearest month) or

 

	
  

	
·

	
if the release referred to in the previous bullet (or any successor release) is not published during the week preceding the calculation date or does not contain the yields referred to above, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for that Redemption Date.

 

The Treasury Rate will be calculated on the third Business Day preceding the Redemption Date.

 

“Trustee” means the Person named as the “Trustee” in respect of the Notes in the first paragraph of this Supplemental Indenture until a successor Trustee in respect of the Notes shall have become such pursuant to the applicable provisions of the Indenture, and thereafter “Trustee” shall mean or include such Person who is then a Trustee in respect of the Notes.

 

Section 1.02.  Section References.  Each reference to a particular section set forth in this Supplemental Indenture shall, unless the context otherwise requires, refer to this Supplemental Indenture.  Each reference to a particular section of the Base Indenture shall refer to that particular section of the Base Indenture.

 

 

ARTICLE 2

The Notes

 

Section 2.01.  Issue of Notes.  The Notes shall be issued as a series of Securities under the Base Indenture as supplemented by this Supplemental Indenture, which such series shall be known and designated as the “4.125% Senior Notes due June 1, 2021” of the Company.  The Notes shall be unsecured.  The Notes shall be executed, authenticated and delivered in accordance with the provisions of the Indenture.  The aggregate principal amount of the Notes which may be authenticated and delivered under the Indenture is initially limited to $500,000,000 (except for such Notes authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Notes pursuant to Sections 304, 305, 306, 906 or 1107 of the Base Indenture and except for any Notes which, pursuant to Section 303 of the Base Indenture, are deemed never to have been authenticated and delivered thereunder).  Additional Notes may be authenticated and delivered from time to time as contemplated in Section 301 of the Base Indenture; provided that if the additional Notes are not fungible with the Notes for United States Federal income tax purposes, the additional Notes will 

 

  

6

  

 

have a separate CUSIP number.  The entire amount of Notes may immediately be executed by the Company and delivered to the Trustee and shall be authenticated by the Trustee and delivered to or upon the order of the Company pursuant to Section 303 of the Base Indenture.

 

Section 2.02.  Stated Maturity.  The Stated Maturity of the principal of the Notes shall be June 1, 2021.

 

Section 2.03.  Notes Issuable as Global Securities.

 

(a)      The Notes shall be issued in the form of one or more Global Securities registered in the name of DTC or its nominee, to be deposited with, or on behalf of, DTC, New York, New York.

 

(b)      The Notes shall be in such form or forms as may be approved by the officers of the Company as provided in the Company Resolutions, such approval to be evidenced by any such officer’s manual or facsimile signature on the Notes, provided that such form or forms of the Notes are not inconsistent with the requirements of the Indenture or the Company Resolutions and are substantially in the form or forms attached hereto as Exhibit A.

 

Section 2.04.  Interest and Payment.  The Notes shall bear interest at the rate of 4.125% per annum, which will accrue from May 20, 2011, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, as the case may be, payable semi-annually on December 1 and June 1 in each year, commencing December 1, 2011, to the Person in whose name such Notes (or one or more predecessor Notes) are registered at the close of business on the Regular Record Date next preceding the Interest Payment Date.  Each December 1 and June 1 shall be an “Interest Payment Date” for such Notes, and the November 15 or May 15 (whether or not a Business Day), as the case may be, next preceding an Interest Payment Date shall be the “Regular Record Date” for the interest payable on such Interest Payment Date.  In any case where any Interest Payment Date is not a Business Day, then payment of interest may be made on the next succeeding Business Day without any additional amount being payable in respect of any delay.

 

Section 2.05.  Payment of Interest.  Payment of the principal of and premium, if any, and interest on the Notes will be made at the office or agency of the Company maintained for that purpose in the Borough of Manhattan, City of New York; provided, however, that at any time that the Notes are not represented by Global Securities, at the option of the Company, payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register.

 

Section 2.06.  Optional Redemption

 

  

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(a)      At any time prior to March 1, 2021, the Notes will be redeemable upon not less than 30 calendar days’ nor more than 60 calendar days’ notice by mail, in whole or in part, at the election of the Company, at a Redemption Price equal to the greater of:

 

(i)      100% of the principal amount of the Notes to be redeemed, 

 

or

 

(ii)      the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed from the Redemption Date to the date of Maturity for the Notes discounted to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 20 basis points,

 

plus, in each case, any interest accrued but not paid to the Redemption Date.

 

(b)      At any time on or after March 1, 2021, the Notes will be redeemable upon not less than 30 calendar days’ nor more than 60 calendar days’ notice by mail, in whole or in part, at the election of the Company, at a Redemption Price equal to 100% of the principal amount of the Notes being redeemed plus any interest accrued but not paid to the Redemption Date.

 

(c)      Notice of any redemption will be mailed at least 30 calendar days but no more than 60 calendar days before the Redemption Date to each holder of the Notes to be redeemed.

 

(d)      Unless the Company defaults in payment of the Redemption Price, interest will cease to accrue on the Notes or portions of the Notes called for redemption on and after the Redemption Date.

 

Section 2.07.  Change of Control Offer to Purchase.

 

(a)      If a Change of Control Triggering Event occurs, unless the Company has exercised its right to redeem the Notes in full pursuant to ‎Section 2.06, the Company will make an offer to each Holder (the “Change of Control Offer”) to repurchase any and all (equal to $2,000 or an integral multiple of $1,000) of such Holder’s Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased plus accrued and unpaid interest, if any, thereon, to the date of repurchase (the “Change of Control Payment”).Within 30 days following any Change of Control Triggering Event, the Company will mail a notice to Holders of Notes describing the transaction or transactions that constitute the Change of Control Triggering Event and offering to repurchase the Notes on the date specified in the notice (the “Change of Control Payment Date”), which date will be no less than 30 days and no more

 

  

8

  

 

than 60 days from the date such notice is mailed, pursuant to the procedures required by the Notes and described in such notice.

 

(b)      The Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control Triggering Event. To the extent that the provisions of any securities laws or regulations conflict with the Change of Control repurchase provisions of the Notes, the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under the Change of Control repurchase provisions of the Notes by virtue of such conflicts.

 

(c)      The Company will not be required to offer to repurchase the Notes upon the occurrence of a Change of Control Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and the third party repurchases on the applicable date all Notes properly tendered and not withdrawn under its offer; provided that for all purposes of the Notes and the Indenture, a failure by such third party to comply with the requirements of such offer and to complete such offer shall be treated as a failure by the Company to comply with its obligations to offer to purchase the Notes unless the Company promptly makes an offer to repurchase the Notes at 101% of the outstanding principal amount thereof plus accrued and unpaid interest, if any, thereon, to the date of repurchase, which shall be no later than 30 days after the third party’s scheduled Change of Control Payment Date.

 

(d)      On the Change of Control Payment Date, the Company will, to the extent lawful:

 

(i)      accept or cause a third party to accept for payment all Notes or portions of Notes properly tendered pursuant to the Change of Control Offer;

 

(ii)      deposit or cause a third party to deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Notes or portions of Notes properly tendered; and

 

(iii)     deliver or cause to be delivered to the Trustee the Notes properly accepted, together with an officer’s certificate stating the principal amount of Notes or portions of Notes being purchased.

 

Section 2.08.  Applicability of Certain Provisions of the Base Indenture in Respect of the Notes.

 

(a)      The Event of Default specified in Section 501(5) of the Base Indenture shall not apply to the Notes.

 

  

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(b)      Section 1005 of the Base Indenture shall not apply to the Notes.

 

Section 2.09.  Registrar and Paying Agent.  U.S. Bank National Association shall act as Paying Agent and registrar with respect to the Notes.

 

Section 2.10.  No Sinking Fund.  The Company shall not be obligated to redeem or purchase the Notes pursuant to any sinking fund or analogous provision, or at the option of any Holder thereof, except as provided in ‎Section 2.07 of this Supplemental Indenture.

 

Section 2.11.  Minimum Denominations.  The Notes shall be issuable only in registered form without coupons in denominations of $2,000 and any multiple of $1,000 in excess thereof.

 

 

ARTICLE 3

Miscellaneous

 

Section 3.01.  Relation to Indenture.  This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Securities heretofore or hereafter authenticated and delivered under the Indenture shall be bound hereby.

 

Section 3.02.  Continued Effect. Except as expressly supplemented and amended by this Supplemental Indenture, the Base Indenture shall continue in full force and effect in accordance with the provisions thereof, and the Base Indenture is in all respects hereby ratified and confirmed. This Supplemental Indenture and all its provisions shall be deemed a part of the Indenture in the manner and to the extent herein and therein provided.

 

Section 3.03.  Provisions Binding on Company’s Successors.  All of the covenants, stipulations, promises and agreements in this Supplemental Indenture by the Company shall bind its successors and assigns whether so expressed or not.

 

Section 3.04.  Certain Trustee Matters.

 

(a)      The recitals contained herein shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness.

 

(b)      The Trustee makes no representations as to the validity or sufficiency of this Supplemental Indenture or the Notes or the proper authorization or the due execution hereof or thereof by the Company.

 

Section 3.05.  Governing Law.  This Supplemental Indenture and the Notes shall be governed by and construed in accordance with the internal laws of the State of New York.

 

  

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Section 3.06.  Counterparts.  This Supplemental Indenture may be signed in various counterparts which together will constitute one and the same instrument.

 

[signatures follow]

 

  

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IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the date first above written.

	 	
AETNA INC., as the Company

	 
	 	 	 
	 	 	 
	 	 	 
	 	
By:   

	
 /s/ Alfred P. Quirk

	 
	 	  	
Name:    

	
Alfred P. Quirk

	 
	 	  	
Title:

	
Vice President, Finance and Treasurer

	 

 

	 	
U.S. BANK NATIONAL 

ASSOCIATION, as Trustee

	 
	 	 	 
	 	 	 
	 	 	 
	 	
By:   

	 	 
	 	  	
Name:    

	 	 
	 	  	
Title:

	 	 

 

[Signature Page to Supplemental Indenture]

  

  

  

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the date first above written.

	
AETNA INC., as the Company

 

	 
	
By:

	  	 
	  	
Name:

	
Alfred P. Quirk

	 
	  	
Title:

	
Vice President, Finance and Treasurer

	 

 

	
U.S. BANK NATIONAL 

ASSOCIATION, as Trustee

 

	 
	
By:

	
/s/ Earl W. Dennison, Jr.

	 
	  	
Name:

	
Earl W. Dennison, Jr.

	 
	  	
Title:

	
Vice President

	 

[Signature Page to Supplemental Indenture]

  

  

  

 

 

Exhibit A

 

Form of Security

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF.  THIS SECURITY MAY NOT BE TRANSFERRED TO, OR REGISTERED OR EXCHANGED FOR SECURITIES REGISTERED IN THE NAME OF, ANY PERSON OTHER THAN THE DEPOSITARY OR A NOMINEE THEREOF, AND NO SUCH TRANSFER MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.  EVERY SECURITY AUTHENTICATED AND DELIVERED UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR OR IN LIEU OF, THIS SECURITY SHALL BE A GLOBAL SECURITY SUBJECT TO THE FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to Aetna Inc. or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

AETNA INC.

4.125% SENIOR NOTE DUE 2021

CUSIP: [●]

ISIN: [●]

 

	No. 2021-1 	$500,000,000

 

AETNA INC., a Pennsylvania corporation (herein called the “Company”), which term includes any successor Person under the Indenture hereinafter referred to, for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of FIVE HUNDRED MILLION Dollars ($500,000,000) upon presentation and surrender of this Security on June 1, 2021, and to pay interest thereon from May 20, 2011 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually 

 

  

A-1

  

 

on December 1 and June 1 in each year, commencing December 1, 2011, at the rate of 4.125% per annum until the principal hereof is paid or made available for payment.  The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the November 15 or May 15 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date.  Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 calendar days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture.  In any case where any Interest Payment Date is not a Business Day, then payment of interest may be made on the next succeeding Business Day without any additional amount being payable in respect of any delay.

Payment of the principal of and premium, if any, and interest on this Security will be made at the office or agency of the Company maintained for that purpose in the Borough of Manhattan, City of New York, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.  Such provisions include, without limitation, provisions relating to redemption of this Security by the Company.

Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

  

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IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal.

Dated: May 20, 2011

 

	 	
AETNA INC.

	 
	 	 	 
	 	 	 
	 	 	 
	 	
By:   

	
 

	 
	 	  	
Name:    

	
Alfred P. Quirk, Jr.

	 
	 	  	
Title:

	
Vice President, Finance and Treasurer

	 

 

 

[SEAL]

Attest:

__________________

Judith H. Jones

  

A-3

  

 

TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Securities of the series designated under, and referred to in, the within-mentioned Indenture.

 

	 	
U.S. BANK NATIONAL ASSOCIATION, 

as Trustee

	 
	 	 	 
	 	 	 
	 	 	 
	 	
By:   

	
 

	 
	 	  	
Authorized Officer

	 
	 	  	
 

	
 

	 

 

  

A-4

  

(Back of Security)

 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued in one or more series under a Senior Indenture, dated as of March 2, 2001 (herein called the “Base Indenture”), between the Company, as issuer, and U.S. Bank National Association (as successor in interest to State Street Bank and Trust Company), as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), as supplemented by the Supplemental Indenture dated as of May 20, 2011, between the Company and the Trustee (together with the Base Indenture, the “Indenture”), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered.  This Security is one of the series designated on the face hereof, initially limited in aggregate principal amount to $500,000,000, subject to future issuances of additional Securities pursuant to Section 301 of the Base Indenture.

 

	
1. 

	
Optional Redemption.

 

At any time prior to March 1, 2021, the Securities of this series are subject to redemption upon not less than 30 calendar days’ nor more than 60 calendar days’ notice by mail, in whole or in part, at the election of the Company, at a Redemption Price equal to the greater of:

 

	
  

	
·

	
100% of the principal amount of the Securities to be redeemed, or

 

	
  

	
·

	
the sum of the present values of the remaining scheduled payments of principal and interest on the Securities to be redeemed from the Redemption Date to the date of Maturity for such Securities discounted to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 20 basis points,

 

plus, in each case, any interest accrued but not paid to the Redemption Date.

 

At any time on or after March 1, 2021, the Securities of this series are subject to redemption upon not less than 30 calendar days’ nor more than 60 calendar days’ notice by mail, in whole or in part, at the election of the Company, at a Redemption Price equal to 100% of the principal amount of the Securities to be redeemed, plus any interest accrued but not paid to the Redemption Date.

 

“Treasury Rate” means, with respect to any Redemption Date for any portion of the Securities,

 

  

A-5

  

 

	
  

	
·

	
the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the date of Maturity for the Securities to be redeemed, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue will be determined and the Treasury Rate shall be interpolated or extrapolated from those yields on a straight line basis, rounding to the nearest month) or

 

	
  

	
·

	
if the release referred to in the previous bullet (or any successor release) is not published during the week preceding the calculation date or does not contain the yields referred to above, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for that Redemption Date.

 

The Treasury Rate will be calculated on the third Business Day preceding the Redemption Date.

 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Securities to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Securities to be redeemed.

 

“Comparable Treasury Price” means, with respect to any Redemption Date for any Securities, the average of all Reference Treasury Dealer Quotations obtained.

 

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Trustee after consultation with the Company.

 

“Reference Treasury Dealer” means each of Goldman, Sachs & Co., J.P. Morgan Securities, LLC and Morgan Stanley & Co. Incorporated.  If any Reference Treasury Dealer ceases to be a primary U.S. government securities dealer in the United States (a “Primary Treasury Dealer”), the Company shall substitute another Primary Treasury Dealer for that dealer.

 

  

A-6

  

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by that Reference Treasury Dealer at 5:00 p.m. on the third Business Day preceding the Redemption Date.

 

Notice of any redemption will be mailed at least 30 calendar days but no more than 60 calendar days before the Redemption Date to each Holder of the Securities to be redeemed.

 

Unless the Company defaults in payment of the Redemption Price, interest will cease to accrue on the Securities or portions of the Securities called for redemption on and after the Redemption Date.

 

If this Security is redeemed in part only, a new Security or Securities of this series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof.

 

	
2. 

	
Change of Control.

 

If a Change of Control Triggering Event occurs, unless the Company has exercised its right to redeem the Securities in full, as described under “Optional Redemption” above, the Company will make an offer to each Holder (the “Change of Control Offer”) to repurchase any and all (equal to $2,000 or an integral multiple of $1,000) of such Holder’s Securities at a repurchase price in cash equal to 101% of the aggregate principal amount of the Securities repurchased plus accrued and unpaid interest, if any, thereon, to the date of repurchase (the “Change of Control Payment”). Within 30 days following any Change of Control Triggering Event, the Company will mail a notice to Holders of Securities describing the transaction or transactions that constitute the Change of Control Triggering Event and offering to repurchase the Securities on the date specified in the notice (the “Change of Control Payment Date”), which date will be no less than 30 days and no more than 60 days from the date such notice is mailed, pursuant to the procedures required hereby and described in such notice.

 

The Company will comply with the requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended from time to time, and any successor statute thereto (the “Exchange Act”), and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Securities as a result of a Change of Control Triggering Event. To the extent that the provisions of any securities laws or regulations conflict with the Change of Control repurchase provisions of the Securities, the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under the 

 

  

A-7

  

 

Change of Control repurchase provisions of the Securities by virtue of such conflicts.

 

The Company will not be required to offer to repurchase the Securities upon the occurrence of a Change of Control Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and the third party repurchases on the applicable date all Securities properly tendered and not withdrawn under its offer; provided that for all purposes of the Securities and the Indenture, a failure by such third party to comply with the requirements of such offer and to complete such offer shall be treated as a failure by the Company to comply with its obligations to offer to purchase the Securities unless the Company promptly makes an offer to repurchase the Securities at 101% of the outstanding principal amount thereof plus accrued and unpaid interest, if any, thereon, to the date of repurchase, which shall be no later than 30 days after the third party’s scheduled Change of Control Payment Date.

 

On the Change of Control Payment Date, the Company will, to the extent lawful:

 

	
  

	
·

	
accept or cause a third party to accept for payment all Securities or portions of Securities properly tendered pursuant to the Change of Control Offer;

 

	
  

	
·

	
deposit or cause a third party to deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Securities or portions of Securities properly tendered; and

 

	
  

	
·

	
deliver or cause to be delivered to the Trustee the Securities properly accepted, together with an officer’s certificate stating the principal amount of Securities or portions of Securities being purchased.

 

“Below Investment Grade Rating Event” means the Securities are rated below an Investment Grade Rating by each of the Rating Agencies on any date from the earlier of (1) the occurrence of a Change of Control and (2) public notice of the Company’s intention to effect a Change of Control, in each case until the end of the 60-day period following the earlier of (1) the occurrence of a Change of Control and (2) public notice of the Company’s intention to effect a Change of Control; provided, however, that if (i) during such 60-day period one or more Rating Agencies has publicly announced that it is considering the possible downgrade of the Securities, and (ii) a downgrade by each of the Rating Agencies that has made such an announcement would result in a Below Investment Grade Rating Event, then such 60-day period shall be extended for such time as the rating of the Securities by any such Rating Agency remains under publicly announced consideration for possible downgrade to a rating below an Investment Grade Rating and a downgrade by such Rating Agency to a rating below an Investment 

 

  

A-8

  

 

Grade Rating could cause a Below Investment Grade Rating Event. Notwithstanding the foregoing, a rating event otherwise arising by virtue of a particular reduction in rating will not be deemed to have occurred in respect of a particular Change of Control (and thus will not be deemed a Below Investment Grade Rating Event for purposes of the definition of Change of Control Triggering Event) if the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform the Trustee in writing at the Company’s or the Trustee’s request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control has occurred at the time of the rating event).

 

“Change of Control” means the occurrence of any of the following: (1) direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Company and its subsidiaries taken as a whole to any “person” (as that term is used in Section 13(d)(3) of the Exchange Act) other than to the Company or one of its subsidiaries; (2) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person” (as that term is used in Section 13(d)(3) of the Exchange Act) other than the Company or one of its subsidiaries becomes the beneficial owner, directly or indirectly, of more than 50% of the then outstanding number of shares of the Company’s voting stock; or (3) the first day on which a majority of the members of the Company’s Board of Directors are not Continuing Directors; provided, however, that a transaction will not be deemed to involve a Change of Control if (A) the Company becomes a wholly owned subsidiary of a holding company and (B)(x) the holders of the voting stock of such holding company immediately following that transaction are substantially the same as the holders of the Company’s voting stock immediately prior to that transaction or (y) immediately following that transaction no “person” (as that term is used in Section 13(d)(3) of the Exchange Act) is the beneficial owner, directly or indirectly, of more than 50% of the voting stock of such holding company. For purposes of this definition, “voting stock” means capital stock of any class or kind the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of the Company, even if the right to vote has been suspended by the happening of such a contingency.

 

“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Below Investment Grade Rating Event.

 

“Continuing Directors” means, as of any date of determination, any member of the Board of Directors of the Company who (1) was a member of the Board of Directors of the Company on the date of the issuance of the Securities; 

 

  

A-9

  

 

or (2) was nominated for election or elected to the Board of Directors of the Company with the approval of a majority of the Continuing Directors who were members of such Board of Directors of the Company at the time of such nomination or election (either by specific vote or by approval of the Company’s proxy statement in which such member was named as a nominee for election as a director).

 

“Fitch” means Fitch Ratings Inc.

 

“Investment Grade Rating” means a rating by Moody’s equal to or higher than Baa3 (or the equivalent under any successor rating category of Moody’s), a rating by S&P equal to or higher than BBB- (or the equivalent under any successor rating category of S&P), a rating by Fitch equal to or higher than BBB- (or the equivalent under any successor rating category of Fitch), and the equivalent investment grade credit rating from any replacement rating agency or rating agencies selected by the Company under the circumstances permitting the Company to select a replacement agency and in the manner for selecting a replacement agency, in each case as set forth in the definition of “Rating Agencies”.

 

“Moody’s” means Moody’s Investors Service, Inc.

 

“Rating Agencies” means (1) Moody’s, S&P and Fitch; and (2) if any or all of Moody’s, S&P or Fitch ceases to rate the Securities or fails to make a rating of the Securities publicly available for reasons outside of the Company’s control, a “nationally recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, that the Company selects (pursuant to a resolution of the Company’s Board of Directors) as a replacement agency for any of Moody’s, S&P or Fitch, or all of them, as the case may be.

 

“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.

 

	
3. 

	
Certain Covenants.

 

The Indenture contains certain covenants that, among other things, limit the ability of the Company to consolidate, merge or sell all or substantially all of its assets.  These covenants are subject to a number of important qualifications and exceptions.  Section 1005 of the Base Indenture, including, without limitation, the limitation on liens on the Common Stock of Principal Subsidiaries set forth therein, does not apply to the Securities of this series.

 

	
4. 

	
Events of Default.

 

If an Event of Default with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture.  The 

 

  

A-10

  

 

Event of Default set forth in Section 501(5) of the Base Indenture, including, without limitation, the cross-acceleration provisions thereof, does not apply to the Securities of this series.

 

	
5. 

	
Amendment, Modification and Waiver.

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of each series to be affected.  The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

 

	
6. 

	
Other Matters.

 

No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed.

 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security Register upon surrender of this Security for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.

 

The Securities of this series are issuable only in registered form without coupons in denominations of $2,000 and any multiple of $1,000 in excess thereof.  As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of 

 

  

A-11

  

 

Securities of this series and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same.

 

No service charge shall be made for any such registration of transfer or exchange of Securities, but the Company or the Trustee may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Securities, other than exchanges pursuant to Section 304, 906 or 1107 of the Base Indenture not involving any transfer.

 

Prior to due and proper presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security is overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

The Indenture provides that the Company, at the Company’s option, (a) will be discharged from any and all obligations in respect of the Securities (except for certain obligations to register the transfer or exchange of Securities, replace stolen, lost or mutilated Securities, maintain paying agencies and hold moneys for payment in trust) or (b) need not comply with certain restrictive covenants of the Indenture, in each case if the Company deposits, in trust, with the Trustee money or U.S. Government Obligations which through the payment of interest thereon and principal thereof in accordance with their terms will provide money, in an amount sufficient to pay all the principal of and premium, if any, and interest on, the Securities on the dates such payments are due in accordance with the terms of such Securities, and certain other conditions are satisfied.

 

No recourse shall be had for the payment of the principal of and premium, if any, or interest on this Security, or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder, officer, employee, agent or director, as such, past, present or future, of the Company or of any successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issue hereof, expressly waived and released.

 

All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

 

 

A-12Exhibit 4.1

Exhibit 4.1

EXECUTION COPY

Confidential

SHARE PURCHASE AGREEMENT

SHARE PURCHASE AGREEMENT (this “Agreement”) dated as of May 16, 2011 between eLong, Inc., an
exempted limited liability company under the laws of the Cayman Islands (the “Company”) and TCH
Sapphire Limited, a British Virgin Islands company limited by shares (the “Purchaser”).

W I T N E S S E T H:

WHEREAS, on the terms and subject to the conditions set forth herein, the Company desires to
issue and sell to the Purchaser, and the Purchaser desires to purchase from the Company 6,031,500
newly issued Ordinary Shares (as defined below) and 5,038,500 High-Vote Ordinary Shares (as
defined below) (together, the “Shares”).

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

ARTICLE 1

Definitions

Section 1.01. Definitions. As used in this Agreement, the following terms shall have the
following meanings:

“Affiliate” means, with respect to any Person, any other Person directly or indirectly
controlling, controlled by, or under common control with such Person; provided that the Company and
its Subsidiaries shall be deemed not to be Affiliates of the Purchaser.

“Business Day” means a day other than Saturday, Sunday or any other day on which commercial
banks in mainland China, Hong Kong or Seattle are authorized or required by applicable law to
close.

“Closing” has the meaning set forth in Section 2.02(a).

“Closing Date” has the meaning set forth in Section 2.02(a).

“Company Material Adverse Effect” means an event, circumstance or effect that has a material
adverse effect on the business, assets, properties, results of operations or condition (financial
or otherwise) of the Company and its Subsidiaries, taken as a whole; provided that the following
(or the effects thereof or resulting therefrom) shall be excluded (A) changes in generally accepted
accounting principles in the United States or changes in the regulatory accounting requirements
applicable to any industry in which the Company and its Subsidiaries operate, (B) changes in the
financial or securities markets or general economic or political conditions in the United States or
the People’s Republic of China, (C) changes (including changes of applicable law) or conditions
generally affecting the industry in which the Company and its Subsidiaries operate and not
specifically relating to or having a materially disproportionate effect on the Company and its
Subsidiaries, taken as a whole, (D) acts of war, sabotage or terrorism or natural disasters
involving the United States of America or the People’s Republic of China, (E) the announcement or
consummation of the transactions contemplated by this Agreement, (F) any failure by the
Company and its Subsidiaries to meet any internal or published budgets, projections, forecasts or
predictions of financial performance for any period and any changes in the trading price or trading
volume of Shares (provided that the underlying causes of such failure or changes shall not be
excluded), or (G) any action taken (or omitted to be taken) at the request of the Purchaser.

 

 

 

“Dispute” has the meaning set forth in Section 5.06(b).

“e-mail” has the meaning set forth in Section 5.01.

“Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

“Expedia” means Expedia Asia Pacific-Alpha Limited, an exempted limited liability company
under the laws of the Cayman Islands.

“Exchange Act Documents” has the meaning set forth in Section 3.01(f).

“Governmental Entity” means any court, administrative agency or commission or other
governmental authority or instrumentality, whether federal, state, local or foreign, and any
applicable industry self-regulatory organization.

“High-Vote Ordinary Shares” has the meaning set forth in Section 3.01(g).

“HKIAC” has the meaning set forth in Section 5.06(b).

“Investor Rights Agreement” means the Investor Rights Agreement dated as of the Closing Date
among the Company, the Purchaser and Expedia in the form attached as Exhibit A hereto.

“Ordinary Shares” means the ordinary shares of the Company that are designated “Ordinary
Shares” with a par value of $0.01 each in the capital of the Company.

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

“Purchase Price” has the meaning set forth in Section 2.01.

“Purchaser Material Adverse Effect” means an event, circumstance or effect that has a material
adverse effect on the business, assets, properties, results of operations or condition (financial
or otherwise) of Purchaser and its Affiliates, taken as a whole, as applicable; provided that the
following (or the effects thereof or resulting therefrom) shall be excluded (A) changes in
generally accepted accounting principles in the United States or changes in the regulatory
accounting requirements applicable to any industry in which the Purchaser and its Affiliates
operate, (B) changes in the financial or securities markets or general economic or political
conditions in the United States or the People’s Republic of China, (C) changes (including changes
of applicable law) or conditions generally affecting the industry in which the Purchaser and its
Affiliates operate and not specifically relating to or having a materially disproportionate effect
on the Purchaser and its Affiliates, taken as a whole, (D) acts of war, sabotage or terrorism or
natural disasters involving the United
States of America or the People’s Republic of China, (E) the announcement or consummation of
the transactions contemplated by this Agreement, (F) any failure by the Purchaser and its
Affiliates to meet any internal or published budgets, projections, forecasts or predictions of
financial performance for any period and any changes in the trading price or trading volume of
Shares (provided that the underlying causes of such failure or changes shall not be excluded), or
(G) any action taken (or omitted to be taken) at the request of the Company.

 

2

 

“Regulation S” means Regulation S promulgated under the Securities Act.

“SEC” means the United States Securities and Exchange Commission.

“Securities Act” means the United States Securities Act of 1933, as amended.

“Subsidiary” means, with respect to any Person, any entity of which securities or other
ownership interests having ordinary voting power to elect a majority of the board of directors or
other Persons performing similar functions are at any time directly or indirectly owned by such
Person.

Section 1.02. Other Definitional and Interpretative Provisions. The words “hereof”, “herein”
and “hereunder” and words of like import used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement. The captions herein are included for
convenience of reference only and shall be ignored in the construction or interpretation hereof.
References to Articles, Sections, Exhibits and Schedules are to Articles, Sections, Exhibits and
Schedules of this Agreement unless otherwise specified. Any capitalized terms used in any Exhibit
or Schedule but not otherwise defined therein, shall have the meaning as defined in this Agreement.
Any singular term in this Agreement shall be deemed to include the plural, and any plural term the
singular. Whenever the words “include”, “includes” or “including” are used in this Agreement, they
shall be deemed to be followed by the words “without limitation”, whether or not they are in fact
followed by those words or words of like import. “Writing”, “written” and comparable terms refer
to printing, typing and other means of reproducing words (including electronic media) in a visible
form. References to any agreement or contract are to that agreement or contract as amended,
modified or supplemented from time to time in accordance with the terms hereof and thereof.
References to any law are to that law as amended, modified or supplemented from time to time and
references to any law include all rules and regulations promulgated thereunder. References to any
Person include the successors and permitted assigns of that Person. References from or through any
date mean, unless otherwise specified, from and including or through and including, respectively.
Except as expressly indicated otherwise, all sums of money referred to in this Agreement are
expressed and shall be payable in United States dollars.

 

3

 

ARTICLE 2

The Stock Purchase

Section 2.01. Agreement to Sell and Purchase.

(a) On the basis of the representations and warranties contained in this Agreement, and
subject to its terms and conditions, the Company hereby agrees to issue
and sell to the Purchaser, and the Purchaser agrees to purchase from the Company, the Shares
for a purchase price (the “Purchase Price”) equal to: (i) the product of 11,070,000 (representing
the aggregate number of Shares being purchased pursuant to this Agreement) and (ii) one-half of the
average closing price of the Company’s American Depositary Shares on the Nasdaq Global Market for
the 20 trading days immediately preceding the date of this Agreement.

(b) The Purchase Price shall be composed of an initial payment and a final payment, as set
forth in Exhibit B hereto. (i) The initial payment shall be US$85,000,000 (eighty-five
million US dollars)(the “Initial Payment”) and shall be paid by Purchaser to the Company at
Closing. (ii) Within 10 Business Days following the date of Closing, the Purchaser shall pay the
Company an amount equal to: the Purchase Price minus the Initial Payment (the “Final Payment”);
provided, however, that, in the event that the Initial Payment exceeds the Purchase Price, within
10 business days following the date of Closing, the Company shall pay the Purchaser an amount equal
to: the Initial Payment minus the Purchase Price.

Section 2.02. Closing.

(a) The closing of the issue and sale to, and purchase by, the Purchaser of the Shares (the
“Closing”) shall occur on the date hereof, or at such other time and place as the Company and the
Purchaser may agree, via electronic exchange of copies of closing deliverables other than the
Initial Payment (which shall be wired at the Closing) as described in Section 2.02(b)
followed by prompt delivery of the originals therefor (the day on which the Closing occurs, the
“Closing Date”).

(b) At the Closing,

(i) the Company shall deliver, or cause to be delivered, to the Purchaser (A) one or
more share certificates evidencing the Shares and a copy of the updated Register of Members
of the Company recording the Purchaser as the registered holder of the Shares certified by
the Company and (B) the Investor Rights Agreement duly executed by the Company and Expedia;
and

(ii) the Purchaser shall deliver to the Company (A) the Initial Payment by wire
transfer of immediately available funds to the account designated by the Company and
communicated in writing to the Purchaser at least three (3) Business Days prior to the
Closing Date and (B) the Investor Rights Agreement, duly executed by the Purchaser.

 

4

 

ARTICLE 3

Representations and Warranties

Section 3.01. Representations and Warranties of the Company. The Company represents and
warrants to the Purchaser that:

(a) Organization and Qualification. The Company has been duly incorporated, is
validly existing as a company in good standing under the laws of the Cayman Islands, has the
corporate power and authority to own its property and to conduct its business as currently
conducted and is duly qualified to transact business and is in good standing in
each jurisdiction in which the conduct of its business or its ownership or leasing of property
requires such qualification, except to the extent that the failure to be so qualified or be in good
standing would not reasonably be expected to be have a Company Material Adverse Effect. Each
Subsidiary of the Company has been duly incorporated or formed, is validly existing as a company in
good standing under the laws of the jurisdiction in which it was formed, has the corporate power
and authority to own its property and to conduct its business as currently conducted and is duly
qualified to transact business and is in good standing in each jurisdiction in which the conduct of
its business or its ownership or leasing of property requires such qualification, except to the
extent that the failure to be so qualified or be in good standing would not reasonably be expected
to be have a Company Material Adverse Effect.

(b) Authorization; Enforcement; Validity. This Agreement has been duly authorized,
executed and delivered by, and is a valid and binding agreement of, the Company, enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency or similar laws affecting
creditors’ rights generally and general principles of equity.

(c) No Conflicts. The execution and delivery by the Company of, and the performance by
the Company of its obligations under, this Agreement will not contravene any provision of
applicable law or the memorandum and articles of incorporation of the Company or any agreement or
other instrument binding upon the Company or any of its Subsidiaries that is material to the
Company and its Subsidiaries, taken as a whole, or any judgment, order or decree of any
governmental body, agency or court having jurisdiction over the Company or any Subsidiary, other
than any contravention that would not have, or reasonably be expected to have, a Company Material
Adverse Effect, or a material adverse effect on the ability of the Company to perform its
obligations and consummate the transactions contemplated by this Agreement.

(d) No Consents or Approvals. No consent, approval, authorization or order of, or
filing or qualification with, any governmental body or agency is required for the performance by
the Company of its obligations under this Agreement, other than (i) compliance with any applicable
requirements of any applicable securities laws, and (ii) any consent, approval, actions or filings
the absence of which would not have, or reasonably be expected to have, a Company Material Adverse
Effect, or a material adverse effect on the ability of the Company to perform its obligations and
consummate the transactions contemplated by this Agreement.

(e) Shares Authorized and Fully Paid. The Shares have been duly authorized and, when
issued and delivered to and paid for by the Purchaser in accordance with the terms of this
Agreement, will be validly issued, fully paid and non-assessable, will be sold free and clear of
any pledge, lien, security interest, encumbrance, claim or equitable interest, and the issuance of
such Shares will not be subject to any preemptive or similar rights except for restrictions under
this Agreement and the Investor Rights Agreement.

 

5

 

(f) Public Filings. The Company has filed with or furnished to, the SEC, as
applicable, all forms, statements, certifications, reports and documents required to be filed or
furnished by it under the Exchange Act during the twelve months preceding the date of this
Agreement (such forms, statements, reports and documents, collectively, the “Exchange Act
Documents”). The Exchange Act Documents complied when filed or furnished in all material respects
with the Exchange Act, and did not, when so filed or
furnished, contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading (provided that the representation and warranty set forth in this sentence
shall not pertain to any statement that has been modified or superseded by a subsequently filed
Exchange Act Document to the extent that such subsequently filed Exchange Act Document shall have
been filed on or prior to the date of this Agreement, in which case, for the avoidance of doubt,
the representation and warranty set forth in this sentence shall apply to such Exchange Act
Document as modified by such subsequently filed Exchange Act Document).

(g) Capitalization. The authorized share capital of the Company consists of
258,205,620 shares, divided into 150,000,000 Ordinary Shares, 50,000,000 ordinary shares of the
Company that are designated “High-Vote Ordinary Shares” with a par value of $0.01 each in the
capital of the Company (“High-Vote Ordinary Shares”) and 58,205,620 preferred shares with a par
value of $0.01 each in the capital of the Company. As of April 30, 2011, there were issued and
outstanding 22,352,152 Ordinary Shares, 28,550,704 High-Vote Ordinary Shares and no preferred
shares of the Company. As of May 15, 2011, (i) a total of 544,035 performance units (the
“Performance Units”), equivalent to an equal number of Ordinary Shares, were unvested and
outstanding; (ii) a total of 5,755,352 share options to purchase Ordinary Shares (the “Share
Options”) were outstanding and unexercised; (iii) a total of 135,536 mirror options, each
equivalent to one Share Option were outstanding and unexercised; and (iv) 121 warrants were
outstanding and unexercised, each equivalent to one Share Option. The Performance Units and the
Share Options were granted to employees, consultants and directors pursuant to the eLong, Inc.
Stock Option Plan, the eLong, Inc. Stock and Annual Incentive Plan and/or the eLong, Inc. Share and
Equity Incentive Plan; the mirror options were granted to Expedia Asia Pacific-Alpha Limited
pursuant to a 2004 option agreement.

(h) No Directed Selling Efforts. Neither the Company nor any of its Affiliates or any
other Person acting on its or their behalf has engaged or will engage in any directed selling
efforts within the meaning of Regulation S under the Securities Act and all such Persons have
complied with the offering requirements of Regulation S under the Securities Act.

(i) Company Material Adverse Effect; Bankruptcy. Since May 18, 2010, no event or
circumstance has occurred that, individually or in the aggregate, has had or would reasonably be
expected to have a Company Material Adverse Effect. Neither the Company nor any of its Subsidiaries
has taken any steps to seek protection pursuant to any bankruptcy law nor does the Company have any
knowledge or reason to believe that its creditors intend to initiate involuntary bankruptcy
proceedings or any fact which would reasonably lead a creditor to do so.

(j) Litigation. There are no claims, suits, investigation, actions or proceedings
pending or, to the Company’s knowledge, threatened against the Company or any of its Subsidiaries
or, to the best of the knowledge of the Company, any of their respective directors, officers or
properties before any court, governmental department, commission, agency, instrumentality or
authority, or any arbitrator that seeks to restrain or enjoin the consummation of the transactions
contemplated by this Agreement or which would reasonably be expected, to have, individually or in
the aggregate, a Company Material Adverse Effect.

 

6

 

(k) Compliance with Applicable Laws. To the Company’s best knowledge, the Company and
each of its Subsidiaries have conducted their businesses in compliance with all applicable laws,
regulations and applicable stock exchange requirements, except where the failure to be in
compliance would not reasonably be expected to have, individually or in the aggregate, a Company
Material Adverse Effect. The Company and each of its Subsidiaries have all permits, licenses,
authorizations, orders and approvals of, and have made all filings, applications and registrations
with, any Governmental Entities that are required in order to carry on their business as presently
conducted, except where the failure to have such permits, licenses, authorizations, orders and
approvals or the failure to make such filings, applications and registrations, individually or in
the aggregate, would not reasonably be expected to have a Company Material Adverse Effect; and all
such permits, licenses, certificates of authority, orders and approvals are in full force and
effect and, to the knowledge of the Company, no suspension or cancellation of any of them is
threatened, and all such filings, applications and registrations are current, except where such
failure to be in full force and effect, suspension or cancellation, individually or in the
aggregate, would not reasonably be expected to have a Company Material Adverse Effect.

(l) Ownership of Assets. The Company and its Subsidiaries have rights to all
properties and to all assets necessary to conduct the business now operated by them in each case
free from restrictions that would materially affect the value thereof or materially interfere with
the use made or to be made thereof by them and any real property or building held under lease by
the Company or any of its Subsidiaries are held by it under valid, existing and enforceable leases,
in each case, except to the extent where such failure would not reasonably be expected to have a
Company Material Adverse Effect.

(m) Intellectual Property. To the Company’s knowledge, the Company owns or possesses
sufficient legal rights including but not limited to trade secrets, licenses, trade mark,
confidential information and proprietary rights, all copyrights and all patents and patent rights,
as are necessary to the conduct of the business as now conducted or presently proposed to be
conducted by the Company and its Subsidiaries, without any known conflict with, or known
infringement of, the rights of others, in each case, except to the extent where such failure would
not reasonably be expected to have a Company Material Adverse Effect.

(n) No Commission. There is no investment banker, broker, finder or other
intermediary that has been retained by or is authorized to act on behalf of the Company or any of
its Subsidiaries who might be entitled to any fee or commission in connection with the transactions
contemplated by this Agreement.

Section 3.02. Representation and Warranties of the Purchaser. The Purchaser represents and
warrants to the Company that:

(a) Organization and Qualification. The Purchaser has been duly incorporated, is
validly existing as a company in good standing under the laws of the Cayman Islands, has the
corporate power and authority to own its property and to conduct its business as currently
conducted and is duly qualified to transact business and is in good standing in each jurisdiction
in which the conduct of its business or its ownership or leasing of property requires such
qualification, except to the extent that the failure to be so qualified or be in good standing
would not reasonably be expected to be have a Purchaser Material Adverse Effect.

 

7

 

(b) Authorization; Enforcement; Validity. This Agreement has been duly authorized,
executed and delivered by, and is a valid and binding agreement of the Purchaser, enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency or similar laws affecting
creditors’ rights generally and general principles of equity.

(c) No Conflicts. The execution and delivery by the Purchaser of, and the performance
by the Purchaser of its obligations under, this Agreement will not contravene any provision of
applicable law, the organizational documents of the Purchaser, other instrument binding upon the
Purchaser or any of its Subsidiaries, or any judgment, order or decree of any governmental body,
agency or court having jurisdiction over the Purchaser or any Subsidiary, other than any
contravention that would not have, or reasonably be expected to have, a Purchaser Material Adverse
Effect, or a material adverse effect on the ability of the Purchaser to perform its obligations and
consummate the transactions contemplated by this Agreement.

(d) No Consents or Approvals. No consent, approval, authorization or order of, or
filing or qualification with, any governmental body or agency is required for the performance by
the Purchaser of its obligations under this Agreement, other than (i) compliance with any
applicable requirements of any applicable securities laws, and (ii) any consent, approval, actions
or filings the absence of which would not have, or reasonably be expected to have, a Purchaser
Material Adverse Effect, or a material adverse effect on the ability of the Purchaser to perform
its obligations and consummate the transactions contemplated by this Agreement.

(e) Investment for Own Account. The Purchaser is acquiring the Shares in the ordinary
course of its business and for its own account for investment only and with no present intention of
distributing any of such Shares or any arrangement or understanding with any other persons
regarding the distribution of such Shares. The Purchaser (i) is able to fend for itself in the
transactions contemplated by this Agreement, (ii) has such knowledge and experience in financial
and business matters as to be capable of evaluating the merits and risks of its prospective
investment in the Shares, and (iii) has the ability to bear the economic risks of its prospective
investment and can afford the complete loss of such investment.

(f) Not U.S. Person. The Purchaser is not a “U.S. Person” within the meaning of
Regulation S and is not acquiring the Shares for the account or benefit of any “U.S. Person”. The
Purchaser is aware and agrees (i) that the sale to it is being made in an “off -shore transaction”
(as defined in Regulation S) in reliance on an exemption from registration under the Securities
Act, (ii) that the Shares are being offered in transactions not involving any public offering
within the meaning of the Securities Act, and (iii) that the Shares have not been and will not be
registered under the Securities Act. The Purchaser is not acquiring the Shares as a result of or
in connection with any activity that would constitute “directed selling efforts” (within the
meaning given to that term in Regulation S) or any general solicitation or advertising in the
United States and agrees to resell the Shares only in accordance with the provisions of Regulation
S or pursuant to an effective registration statement under the Securities Act or an available
exemption therefrom. The authorized representatives of the Purchaser were outside the United
States at the time (i) the purchase and the sale of the Shares was made and (ii) the authorized
representatives of the Purchaser executed the Agreement.

 

8

 

(g) No Registration. The Purchaser understands that the Shares may not be sold,
transferred or otherwise disposed of without registration under the Securities Act or an exemption
therefrom, and that in the absence of an effective registration statement covering the Shares or an
available exemption from registration under the Securities Act, the Shares must be held
indefinitely. In furtherance and not in limitation of the foregoing, the Purchaser is aware that
the Shares may not be sold pursuant to Rule 144 promulgated under the Securities Act unless all of
the applicable conditions of such rule are met.

(h) No Commission. There is no investment banker, broker, finder or other intermediary
which has been retained by or is authorized to act on behalf of the Purchaser or any of its
Subsidiaries who might be entitled to any fee or commission in connection with the transactions
contemplated by this Agreement.

ARTICLE 4

Covenants

Section 4.01. Covenants of the Purchaser. The Purchaser agrees that all certificates or
other instruments representing the Shares will bear a legend substantially to the following effect:

“THE SHARES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR SECURITIES LAWS OF ANY JURISDICTION AND MAY NOT BE TRANSFERRED,
SOLD OR OTHERWISE DISPOSED OF IN THE UNITED STATES EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS. THIS
INSTRUMENT IS ISSUED PURSUANT TO AND SUBJECT TO THE RESTRICTIONS ON TRANSFER AND OTHER
PROVISIONS OF A SHARE PURCHASE AGREEMENT, DATED AS OF MAY 16, 2011, BETWEEN THE ISSUER OF
THESE SECURITIES AND THE PURCHASER REFERRED TO THEREIN AND AN INVESTOR RIGHTS AGREEMENT,
DATED AS OF MAY 16, 2011, AMONG THE ISSUER OF THESE SECURITIES, THE INVESTOR REFERRED TO
THEREIN AND CERTAIN OTHER PARTIES, A COPY OF EACH OF WHICH IS ON FILE WITH THE ISSUER. THE
SHARES REPRESENTED BY THIS INSTRUMENT MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN
COMPLIANCE WITH SAID AGREEMENTS. ANY SALE OR OTHER TRANSFER NOT IN COMPLIANCE WITH SAID
AGREEMENT WILL BE VOID.”

Section 4.02. Press Release; Public Announcements. On the date hereof or promptly
thereafter, the Company may issue a press release in a form to be agreed with Purchaser and furnish
a current report on Form 6-K to the SEC which exhibits such press release. The Company shall also
be entitled to file a copy of this Agreement and the Investor Rights Agreement as an exhibit to its
annual report on Form 20-F. The Purchaser shall be entitled to file a copy of this Agreement and
the Investor Rights Agreement as an exhibit to its statement on Schedule 13D filed with the SEC or
any other securities filings
required by any applicable law in Hong Kong or any rule or regulation of the Hong Kong Stock
Exchange with respect to the transactions contemplated hereunder. No other written public release
or announcement concerning the transactions contemplated hereby shall be issued by the Company or
the Purchaser without the prior written consent of the other party, except as such release or
announcement may be required by law or the rules or regulations of any securities exchange, in
which case the Company or the Purchaser, as applicable, shall allow the other party reasonable time
to comment on such release or announcement in advance of such issuance (and make reasonable efforts
to reflect such comments).

 

9

 

Section 4.03. Further Assurances. Each of the Purchaser and the Company shall use
commercially reasonable efforts to take all actions necessary or appropriate to consummate the
transactions contemplated by this Agreement.

ARTICLE 5

Miscellaneous

Section 5.01 Notices. All notices, requests and other communications to any party hereunder
shall be in writing (including facsimile transmission and electronic mail (“e-mail”) transmission,
so long as a receipt of such e-mail is requested and received) and shall be given,

if to the Company, to:

eLong, Inc.

Xingke Plaza, Tower B, Third Floor

10 Middle Jiuxianqiao Road, Chaoyang District

Beijing 100015, People’s Republic of China

Attention: Sami Farhad, General Counsel

Facsimile No.: +86-10-6436-6019

E-mail: sami.farhad@corp.eLong.com

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

Davis Polk & Wardwell

The Hong Kong Club Building

3A Chater Road

Hong Kong

Attention: James C. Lin

Facsimile No.: +852-2533-3388

E-mail: james.lin@davispolk.com

if to the Purchaser, to:

TCH Sapphire Limited

c/o Tencent Holdings Limited

Tencent Building, 38th Floor

Kejizhongyi Avenue, Hi-tech Park

Nanshan District, Shenzhen 5180057, People’s Republic of China

Attention: Brent Irvin, General Counsel

                 Richard Peng, Vice President of Mergers & Acquisitions

Facsimile No.: +86-755-8601-3078

E-mail: brentirvin@tencent.com; richardpeng@tencent.com

 

10

 

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

Wilson Sonsini Goodrich & Rosati, P.C.

650 Page Mill Road

Palo Alto, CA 94304 USA

Attention: Scott Anthony, Esq.

Facsimile: +1-650-493-6811

E-mail: santhony@wsgr.com

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

Section 5.02. Severability. If any term, provision, covenant or restriction of this
Agreement is held to be invalid, illegal, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions set forth herein shall remain in full force and effect and
shall in no way be affected, impaired or invalidated thereby, and the parties hereto shall use
their best efforts to find and employ an alternative means to achieve the same or substantially the
same result as that contemplated by such term, provision, covenant or restriction, it being
intended that all of the rights and privileges of the parties shall be enforceable to the fullest
extent permitted by law.

Section 5.03. Modification; Amendment. The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented unless pursuant to an
instrument in writing signed by the party against whom enforcement is sought.

Section 5.04. Entire Agreement. This Agreement and the Investor Rights Agreement are
intended by the parties as a final expression of their agreement and are intended to be a complete
and exclusive statement of the agreement and understanding of the parties hereto with respect to
the subject matter contained herein and therein. Except as provided in this Agreement, there are
no restrictions, promises, warranties or undertakings, other than those set forth or referred to
herein, with respect to such matters. This Agreement supersedes all prior agreements and
undertakings among the parties with respect to such matters. No party hereto shall have any
rights, duties or obligations other than those specifically set forth in this Agreement.

Section 5.05. Counterparts. This Agreement may be signed in any number of counterparts, each
of which shall be an original, with the same effect as if the signatures thereto and hereto were
upon the same instrument. The parties agree that execution of this Agreement by facsimile
transmission or e-mail of signatures in portable document format shall be legally valid and
binding.

 

11

 

Section 5.06. Governing Law; Arbitration.

(a) This Agreement will be governed by and construed in accordance with the laws of Hong Kong
applicable to contracts made and to be performed within Hong Kong.

(b) Any dispute, controversy or claim arising out of or relating to this Agreement, or the
breach, termination or invalidity thereof (a “Dispute”), shall be settled by arbitration in
accordance with the UNCITRAL Arbitration Rules as at present in force and as may be amended by the
rest of this provision. The appointing authority shall be Hong Kong International Arbitration
Center (“HKIAC”). The place of arbitration shall be in Hong Kong at HKIAC. There shall be three
(3) arbitrators. The language to be used in the arbitral proceedings shall be English. Any such
arbitration shall be administered by HKIAC in accordance with HKIAC Procedures for Arbitration in
force at the date of this Agreement including such additions to the UNCITRAL Arbitration Rules as
are therein contained.

(c) Nothing herein contained shall be construed as preventing any party from instituting legal
action in any court in any jurisdiction against any other party for any interim, provisional or
injunctive relief to the full extent permitted under applicable law, pending final resolution of
any Dispute under this Section. Any such interim, provisional or injunctive relief and the right
thereto shall fully and finally expire no later than upon judicial confirmation of the final
arbitration award, unless such relief is continued by the final arbitration award. The institution
and maintenance of any judicial action or proceeding for such provisional relief shall not
constitute a waiver of the right or obligation of any party to submit any Dispute to arbitration,
including any Dispute arising from the exercise of any such interim, provisional or injunctive
relief.

(d) Each party hereby consents to process being served by any party to this Agreement in any
suit, action or proceeding by delivery of a copy thereof in accordance with the provisions of
Section 5.01.

Section 5.07. Survival. The representations and warranties and covenants of the parties set
forth in this Agreement shall survive the Closing Date until the expiration of the statute of
limitations therefor.

 

12

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

	 	 	 	 	 	 	 	 	 
	 	 	ELONG, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Guangfu Cui	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Guangfu Cui	 	 
	 

	 	 	 	Title:
	 	CEO	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	TCH SAPPHIRE LIMITED	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Pony Ma	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Pony Ma	 	 
	 

	 	 	 	Title:
	 	CEO	 	 

SIGNATURE PAGE TO SHARE PURCHASE AGREEMENT

 

13

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