Document:

Investors Agreement dated July 23, 2004

 Exhibit 4.6 

  
  
 INVESTORS AGREEMENT 
  
 among 
  
 ELONG, INC., 
  
 IACT Asia Pacific Limited 
  
 and the other parties named therein 
  
 Dated July 23, 2004 
  
  

 TABLE OF CONTENTS 
  

					
	 ARTICLE I DEFINITIONS
	  	1
	     1.1
	  	Defined Terms	  	1
		
	 ARTICLE II VOTING AGREEMENTS
	  	4
	     2.1
	  	Agreement to Vote; Company Efforts	  	4
	     2.2
	  	Election of Board of Directors	  	4
	     2.3
	  	Removal; Vacancies	  	6
	     2.4
	  	Size of the Board	  	6
	     2.5
	  	No Liability for Election of Recommended Directors	  	6
	     2.6
	  	Shareholder Approval of Schemes of Arrangement, Mergers and Consolidations	  	6
	     2.7
	  	Grant of Proxy	  	7
		
	 ARTICLE III REGISTRATION RIGHTS
	  	7
	     3.1
	  	Request for Registration	  	7
	     3.2
	  	Piggyback Registrations	  	9
	     3.3
	  	Non-Investor Registration	  	9
	     3.4
	  	Investor Registration	  	11
	     3.5
	  	Obligations of the Company	  	12
	     3.6
	  	Information from Holder	  	14
	     3.7
	  	Expenses of Registration	  	14
	     3.8
	  	Delay of Registration	  	14
	     3.9
	  	Indemnification	  	14
	     3.10
	  	Reports Under the Exchange Act	  	16
	     3.11
	  	Assignment of Registration Rights	  	17
	     3.12
	  	Limitations on Subsequent Registration Rights	  	17
	     3.13
	  	Termination of Registration Rights	  	17
		
	 ARTICLE IV INFORMATIONAL RIGHTS
	  	18
	     4.1
	  	Delivery of Financial Statements	  	18
	     4.2
	  	Inspection	  	19
	     4.3
	  	Termination of Information and Inspection Covenants	  	19
		
	 ARTICLE V QUALIFIED PUBLIC OFFERING
	  	19
	     5.1
	  	Limitation on Qualified Public Offering	  	19
	     5.2
	  	Market Stand-Off	  	19
	     5.3
	  	Investor Restrictions	  	20
	     5.4
	  	Investor Standstill	  	21
		
	 ARTICLE VI INVESTOR RIGHT OF FIRST OFFER
	  	21
	     6.1
	  	Right of First Offer	  	21
		
	 ARTICLE VII RESTRICTIONS ON TRANSFER
	  	22
	     7.1
	  	General Restrictions on Transfer	  	22
	     7.2
	  	Compliance with Securities Laws	  	22
	     7.3
	  	Agreement to be Bound	  	22
	     7.4
	  	Tag-Along Rights for the Non-Investor Stockholders	  	23
	     7.5
	  	 Tag-Along Rights for the Investor
	  	25
	     7.6
	  	 First Option Rights
	  	26
	     7.7
	  	 Drag Along Right
	  	28
		
	 ARTICLE VIII INVESTOR RIGHTS
	  	29
	     8.1
	  	 Investor’s Approval Rights
	  	29
	     8.2
	  	 Stock Option Grants
	  	30
	     8.3
	  	 Cooperation Regarding IPO
	  	31

					
	 ARTICLE IX TERMINATION OF PREVIOUS SHAREHOLDER AGREEMENTS; NOTIFICATION OF INDEMNIFICATION CLAIMS
	  	31
	     9.1
	  	 Termination of Agreements and Provisions Thereof.
	  	31
	     9.2
	  	 Notification of Indemnification Claims
	  	31
		
	 ARTICLE X MISCELLANEOUS
	  	32
	     10.1
	  	 Series A Right to Information for Tax Filings
	  	32
	     10.2
	  	 No Derogation of Rights
	  	32
	     10.3
	  	 Manner of Voting
	  	32
	     10.4
	  	 Public Announcements
	  	33
	     10.5
	  	 Assignment
	  	33
	     10.6
	  	 Binding Effect
	  	33
	     10.7
	  	 Time
	  	33
	     10.8
	  	 Expenses
	  	33
	     10.9
	  	 Notices
	  	33
	     10.10
	  	 Governing Law; Arbitration
	  	34
	     10.11
	  	 Injunctive Relief
	  	35
	     10.12
	  	 Currency
	  	35
	     10.13
	  	 Entire Agreement
	  	35
	     10.14
	  	 Further Assurances
	  	35
	     10.15
	  	 Waivers and Modifications
	  	35
	     10.16
	  	 Counterparts
	  	35
	     10.17
	  	 Date For Any Action
	  	36
	     10.18
	  	 Construction
	  	36
	     10.19
	  	 Interpretation
	  	36
	     10.20
	  	 Severability
	  	36

 INVESTORS AGREEMENT 
  

This Investors Agreement (the “Agreement”) made as of the 23rd day of July, 2004, by and among Elong, Inc., an exempted limited liability
company under the laws of the Cayman Islands (the “Company”), IACT Asia Pacific Limited, an exempted limited liability company under the laws of the Cayman Islands (the “Investor”), the persons set forth on
Schedule 1 hereto (the “Series A Holders”) and the persons listed on Schedule 2 hereto (the “Common Holders” and, together with the Investor and the Series A Holders, the “Stockholders”).

  
 WHEREAS, the Company and certain of the Stockholders are parties to an
Investors’ Rights Agreement, dated as of August 29, 2003 (the “Investor Rights Agreement”), a Right of First Refusal and Co-Sale Agreement, dated as of August 29, 2003 (the “Co-Sale Agreement”) and a Voting
Agreement, dated as of August 29, 2003 (the “Voting Agreement” and, together with the Investor Rights Agreement and the Co-Sale Agreement, the “Previous Shareholder Agreements”); 
  
 WHEREAS, the Company and the Series A Holders are parties to a Series A Preferred
Shares Purchase Agreement, dated as of August 29, 2003 (the “Series A Purchase Agreement”); 
  
 WHEREAS, the parties to such Previous Shareholder Agreements desire to terminate each of the Previous Shareholders Agreements, and the parties to the Series A
Purchase Agreement desire to terminate certain provisions of the Series A Purchase Agreement and to amend certain other provisions; 
  
 WHEREAS, the Company, certain subsidiaries thereof, the Investor and certain other Stockholders entered into a Transaction Agreement, dated as of July 22, 2004 (the
“Transaction Agreement”), pursuant to which, among other things, the Investor is acquiring certain securities of the Company, including the Warrant (as defined herein); 
  
 WHEREAS, the Company and the Stockholders desire to enter into this Agreement to define certain rights and obligations among them with
respect to the Company and in order to fulfill such condition; 
  
 NOW,
THEREFORE, in consideration of the mutual promises and covenants hereinafter herein contained, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby covenant and agree
as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 1.1    Defined Terms. 
  
 As used in this Agreement, the following terms shall have the following meanings: 
  
 (a)    “Act” means the United
States Securities Act of 1933, as amended, or any successor federal statute, and the rules and regulations of the U.S. Commission issued under such Act, as they each may, from time to time, be in effect. 
  
 (b)    “affiliate” shall be
construed such that one person shall be deemed to be an affiliate of another person for so long as one of them is controlled (directly or indirectly) by the other or both are controlled (directly or indirectly) by the same person or group of
persons, and for this purpose “control” shall be construed such that any combination of a person, its affiliates and persons acting jointly or in concert with either of them (the “Control Group”) shall control
another person if the Control Group is the beneficial owner 

  

 1 

 
of securities of such person, or otherwise has, through contract, voting trust, proxy or otherwise, power, sufficient to elect a majority of the board of directors
(or, if the person is not a corporation, any comparable body) of such person or to direct the management of such person (it being understood and agreed that (a) the Company and its subsidiaries shall not be deemed to be “affiliates” of the
Investor and (b) Beijing eLong Information Technology Co., Ltd., Beijing Asia Media Interactive Co., Ltd., Beijing eLong Airline Services Co., Ltd., and Jiangsu General Chinese Hotel Reservation Network Co. Ltd. shall each be deemed to be
“affiliates” of the Company for so long as such entities continue to be controlled by the Company and the Stockholders). 
  
 (c)    “Amended Articles” means the Amended and Restated Articles of Association of Elong, Inc., as amended on
July 2004, and as amended thereafter from time to time. 
  
 (d)    “Amended Memorandum” means the Amended and Restated Memorandum of Association of Elong, Inc., as amended on July 2004, and as amended thereafter from time to time. 
  
 (e)    “Board of Directors” means
the Board of Directors of the Company as constituted from time to time. 
  
 (f)    “Business Day” means every day except a Saturday, Sunday or a day which is a statutory or a federal holiday in the United States of America. 
  
 (g)    “Confidential Information”
means any information that is labelled as confidential, proprietary or secret which a Stockholder obtains from the Company pursuant to financial statements, reports and other materials provided by the Company to such Stockholder pursuant to this
Agreement or pursuant to visitation or inspection rights granted hereunder. Confidential Information shall include any information provided to a Stockholder pursuant to Article IV hereof. 
  
 (h)    “Elong Option Plan” means
the Company’s Stock and Annual Incentive Plan, dated July 2004, as the same may be amended, restated or replaced from time to time. 
  
 (i)    “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor federal statute,
and the rules and regulations of the SEC issued under such Act, as they each may, from time to time, be in effect. 
  
 (j)    “Form F-3” means such form under the Act as in effect on the date hereof or any registration form under
the Act subsequently adopted by the U.S. Commission that permits inclusion or incorporation of substantial information by reference to other documents filed by the Company with the U.S. Commission. 
  
 (k)    “Form S-3” means such form
under the Act as in effect on the date hereof or any registration form under the Act subsequently adopted by the SEC that permits inclusion or incorporation of substantial information by reference to other documents filed by the Company with the
SEC. 
  
 (l)    “Fully-Diluted
Number” means the total number of outstanding ordinary shares of the Company, calculated on an as-converted, fully-diluted basis (including, without limitation, all options, warrants (but excluding the Warrant) or other rights,
agreements, arrangements or commitments (pre-emptive, contingent or otherwise) obligating the Company to issue shares of capital stock (or securities exchangeable for or convertible into shares of the Company’s capital stock, including the
Series A Preferred Shares and Series B Preferred Shares), in each case whether or not vested or exercisable. 
  
 (m)    “High-Vote Ordinary Shares” shall have the meaning ascribed to it in the Amended Articles. 

 

 2 

 (n)    “Holder” means any person owning or having the right to
acquire or having the right to exercise or convert into Registrable Securities or any assignee thereof in accordance with Article III; provided, however, that (a) only the Series A Holders and their assignees shall be deemed to be
Holders for purposes of Section 3.3 hereof, (b) only the Investor and its assignees shall be deemed to be Holders for purposes of Section 3.4 hereof and (c) only the Series A Holders, the Investor and their respective assignees shall be deemed to be
Holders for purposes of Section 3.12 hereof. 
  
 (o)    “IAC Control Date” means the first date on which the Investor (together with its affiliates) collectively beneficially own more than 50% of the outstanding ordinary shares (including, for purposes
of such calculation, the preferred shares on an as-converted basis). 
  
 (p)    “IAC Exercise Date” means the day on which the Investor (or an affiliate thereof) exercises the Warrant, as evidenced by the delivery by the Investor (or an affiliate thereof) to the
Company on such day of a Form of Election to Purchase. 
  
 (q)    “Option” shall have the meaning ascribed to it in the Transaction Agreement. 
  
 (r)    “ordinary shares” shall have the meaning ascribed to it in the Amended Articles. 
  
 (s)    “Ordinary Shares” shall
have the meaning ascribed to it in the Amended Articles. 
  
 (t)    “person” means an individual, corporation, incorporated or unincorporated association, syndicate or organization, partnership, trust, trustee, executor, administrator or other legal
representative. 
  
 (u)    “preferred shares” shall have the meaning ascribed to it in the Amended Articles. 
  
 (v)    “Qualified Public Offering” means the Company’s first sale of Ordinary Shares in a firm commitment
underwritten public offering where the Company’s stock is subsequently primarily traded on the Nasdaq Stock Market’s National Market or the New York Stock Exchange (or another comparable exchange or marketplace approved by both the Board
of Directors and by each IAC Director). 
  
 (w)    “register,” “registered,” and “registration” refer to a registration effected by preparing and filing a registration statement or similar document in compliance
with the Act, and the declaration or ordering of effectiveness of such registration statement or document. 
  
 (x)    “Registrable Securities” means:    (i) the Ordinary Shares or High-Vote Ordinary
Shares issuable or issued upon conversion or exercise of the Series A Preferred Shares, Series B Preferred Shares, the Option or the Warrant, as the case may be; provided however, (x) that the Ordinary Shares or High-Vote Ordinary
Shares issuable or issued upon the conversion or exercise of the Series B Preferred Shares, the Option or the Warrant, as the case may be, shall not be deemed Registrable Securities for the purpose of Section 3.3 hereof and (y) that the Ordinary
Shares issuable or issued upon the conversion of the Series A Preferred Shares shall not be deemed Registrable Securities for the purpose of Section 3.4 hereof; (ii) the Ordinary Shares issued and held by the Common Holders listed on Schedule
1.1(x) hereto; provided, however, that such Ordinary Shares shall not be deemed Registrable Securities for the purposes of Sections 3.4 and 3.12 hereof; and (iii) any Ordinary Shares or High-Vote Ordinary Shares issued as (or issuable upon
the conversion or exercise of any warrant, right or other security that is issued as) a dividend, stock split or other distribution, recapitalization or reclassification with respect to, or in exchange for, or in replacement of, the shares
referenced in (i) and (ii) above, excluding in all cases, however, any Registrable Securities sold by a person in a transaction in which his rights under Article III hereof are not assigned. 
  
 (y)    “Rule 144” shall mean Rule
144 under the Act. 
  

 3 

 (z)    “Rule 144(k)” shall mean subsection (k) of Rule 144
under the Act. 
  
 (aa)    “SEC” means the Securities and Exchange Commission. 
  
 (bb)    “Series A Preferred Shares” shall have the meaning ascribed to it in the Amended Articles. 

 
 (cc)    “Series B Preferred
Shares” shall have the meaning ascribed to it in the Amended Articles. 
  
 (dd)    “Transfer” means to directly or indirectly sell, give, transfer, assign, pledge, encumber, hypothecate
or otherwise dispose of in any manner whatsoever (it being understood that the act of conversion or exercise with respect to a convertible security shall not be deemed a Transfer of such convertible security). 
  
 (ee)    “Warrant” shall means the
warrant to purchase securities of the Company issued to the Investor pursuant to the Warrant Agreement of even date herewith by and between the Company and the Investor. 
  
 ARTICLE II 
  
 VOTING AGREEMENTS 
  
 2.1    Agreement to Vote; Company Efforts. 
  
 (a)    Each Stockholder, as a holder of ordinary shares and/or preferred shares, as the case may be, hereby agrees on behalf of itself and any
transferee or assignee of such shares (excluding any transferee or assignee who has acquired shares in a public offering registered under the Act or in public market purchases under Rule 144 of the Act if such transferee or assignee is neither a
Stockholder nor otherwise required under the terms hereof to become a Stockholder hereunder in connection with such transfer or assignment), to hold all such shares registered in its name (and any securities of the Company issued with respect to,
upon conversion of, or in exchange or substitution of the preferred shares, and any other voting securities of the Company subsequently acquired by such Stockholder) (all of such shares and securities hereinafter collectively referred to as the
“Stockholder Shares”) subject to, and to vote the Stockholder Shares at any meeting of shareholders (or by written consent) in accordance with the provisions of this Article II. Notwithstanding the foregoing, the Series A Holders
shall be released from their obligations under this Article II with respect to their Stockholder Shares from and after the consummation of the Qualified Public Offering. 
  
 (b)    The Company agrees to use its best efforts to ensure that the rights granted under this Article II are
effective and that the parties hereto enjoy the benefits thereof. Such actions shall include, without limitation, the use of the Company’s best efforts to cause (i) the nomination, election and appointment of the directors as provided below and
(ii) the consummation of the scheme of arrangement, merger, consolidation or other business combination as provided below. The Company will not, by any voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be
performed under this Article II by the Company but will at all times in good faith assist in the carrying out of all of the provisions in this Article II and in the taking of all such actions as may be necessary, appropriate or reasonably requested
by the Stockholders in order to protect the rights of the Stockholders under this Article II against impairment. 
  
 2.2    Election of Board of Directors. 
  
 (a)    In any election of directors of the Board of Directors, the Stockholders shall each vote at any meeting of shareholders (or by written
consent) such number of Stockholder Shares then 

  

 4 

 
owned by them (or as to which they then have voting power) as may be necessary to elect (and shall call a meeting of shareholders or act by written consent, and take
any other actions necessary, in order to effect the foregoing): 
  
 (i)    for as long as at least a majority of the Series A Preferred Shares originally issued on August 29, 2003 remain outstanding, one (1) director elected by a majority vote of the Series A Preferred Shares (it being
understood and agreed that for as long as Tiger Technology Private Investment Partners, L.P. (“Tiger”) together with its affiliates owns at least fifty percent (50%) of the Series A Preferred Shares purchased by Tiger on August 29,
2003 (as adjusted for share splits, share dividends, recapitalizations or the like), such director shall be selected by Tiger); 
  
 (ii)    for as long as Billable Development, Ltd. (“Billable Development”), together with its affiliates, owns
at least fifty percent (50%) of the Ordinary Shares purchased by Billable Development pursuant to that certain Share Purchase Agreement dated on or about April 18, 2001 (the “Common Purchase Agreement”) (as adjusted for share
splits, share dividends, recapitalizations or the like), two (2) directors nominated by Billable Development; 
  
 (iii)    for as long as Lawrence Auriana, Peter Lerner and Ira S. Nordlicht (the “Auriana Investors”) owns at
least fifty percent (50%) of the Ordinary Shares purchased by the Auriana Investors pursuant to the Common Purchase Agreement (as adjusted for share splits, share dividends, recapitalizations or the like), one (1) director nominated by the Auriana
Investors; 
  
 (iv)    one (1) director
nominated by the holders of a majority of the voting power of the Stockholder Shares, who shall be the Company’s then current chief executive officer (as appointed from time to time by the Board of Directors), who shall initially be Justin
Tang; 
  
 (v)    (A) two (2) directors
nominated by the Investor and (B) from and after the IAC Exercise Date, four (4) additional directors (for a total of six (6) directors) nominated by the Investor (such directors selected by the Investors being the “IAC Directors”).
Each of the parties hereto agree that (and shall do all things necessary to cause) the IAC Directors set forth on Schedule 2.2(a) hereto shall become members of the Board of Directors immediately after the execution and delivery of this Agreement by
the parties hereto. 
  
 Notwithstanding the foregoing, Sections 2.2(a)(i), (ii) and (iii)
shall terminate (and the rights to nominate directors pursuant to such Sections shall terminate) upon the earlier of (x) the date of the Qualified Public Offering and (b) the IAC Exercise Date; provided, however, that the directors holding
positions on the Board of Directors at such time shall have the right (subject to any right of removal for cause provided for under law or the Amended Articles) to remain on the Board of Directors until the one-year anniversary thereof. 

 
 (b)    (i)    Subject to subsection (ii)
below, the Company shall offer to an IAC Director a seat on the board of directors or comparable governing body of each of the Company’s subsidiaries and each of the Company’s affiliates in whose capital stock (or comparable ownership
interest) the Company or any of its direct or indirect subsidiaries or affiliates has an ownership interest (either direct, indirect, by pledge, contract or otherwise), as such interest and as such entities now or hereinafter exist, including,
without limitation, the PRC Entities (as defined in the Transaction Agreement). In the event such member of the Board of Directors accepts such offer, then the Company and the Stockholders shall take all necessary action to cause such member of the
Board of Directors to be elected, appointed to or designated for the board of directors or comparable governing body of the applicable subsidiary or affiliate of the Company. 
  
 (ii)    Without limiting the foregoing, the parties hereto agree that (and shall do all things
necessary to cause) (A) the IAC Director set forth on Schedule 2.2(b) hereto shall become a 

  

 5 

 
member of the board of directors of each of ELong Net Information Technologies (Beijing) Co., Ltd. (the “Subsidiary”) and ELongNet Hi-Tech (Beijing)
Co., Ltd. (the “New Subsidiary”) immediately after the execution and delivery of this Agreement by the parties hereto, (B) the boards of each of the Subsidiary and the New Subsidiary shall consist of three (3) directors, (C)
from and after the IAC Exercise Date, all three (3) directors on the boards of each of the Subsidiary and New Subsidiary shall be IAC Directors and (D) the other rights of the Investor under this Article II with respect to the Board of Directors
shall apply to the same extent to the boards of the Subsidiary and the New Subsidiary (including, without limitation, with respect to rights to remove the Investor designee or fill a vacancy). 
  
 2.3    Removal; Vacancies. 
  
 Any director of the Board of Directors or any Company subsidiary or affiliate’s
board (or comparable governing body) may be removed in the manner allowed by law and the Amended Memorandum and Amended Articles, or the comparable charter documents of a Company subsidiary or affiliate, as applicable, but with respect to a director
designated for the Board of Directors or the board of directors (or comparable governing body) of any subsidiary or affiliate pursuant to Sections 2.2(a) and (b) above, such director may only be removed with the affirmative vote, written consent or
approval of the Company’s shareholders who are entitled to nominate such director for the Board (and such directors shall be removed upon such vote, consent or approval of such nominating shareholders), provided that such shareholders continue
to be entitled to such nomination rights. Vacancies in a board position occupied by a director nominated pursuant to Sections 2.2(a) and (b) above shall be filled by a nominee of the applicable shareholders, provided that such shareholders continue
to be entitled to such nomination rights. 
  
 2.4    Size
of the Board. 
  
 The holders of Stockholder Shares shall
vote at any meeting of shareholders (or by written consent) such shares that they own (or as to which they have voting power) to ensure that the size of the Board of Directors shall be set and remain at seven (7) directors; provided,
however, that each of the parties hereto agrees that (and shall do all things necessary to cause) (a) the size of the Board of Directors shall be increased to eleven (11) directors on the IAC Exercise Date (and continuing thereafter,
subject to any additional increase or decrease as determined by the Board of Directors) and (b) the four (4) additional IAC Directors shall become members of the Board of Directors on the IAC Exercise Date. 
  
 2.5    No Liability for Election of Recommended Directors.

  
 Neither the parties hereto nor any officer, director, shareholder,
partner, retired partner, member, retired member, shareholder, employee, agent or related individual of any party hereto, makes any representation or warranty as to the fitness or competence of the nominee of any party hereunder to serve on the
Board of Directors or any other board or comparable governing body by virtue of such party’s execution of this Agreement or by the act of such party in voting for such nominee pursuant to this Article II. 
  
 2.6    Shareholder Approval of Schemes of Arrangement, Mergers and
Consolidations. 
  
 Upon the approval by the Board of
Directors of a merger, consolidation, scheme of arrangement, amalgamation or reconstruction or other such business combination which would require a class vote of the Stockholders of the Company pursuant to Section 86(2) of the Companies Law (as
amended) (“Companies Law”) in the Cayman Islands (the “Merger 

  

 6 

 
Transaction”), the parties hereto agree to take all actions necessary to cause a meeting of Stockholders to be called promptly thereafter (but in no event
later than 30 days after such Board of Directors approval), at which the Stockholders shall hold a vote (voting together as a single class and not as a separate series, and on an as-converted basis) to determine whether a majority in voting power of
the Stockholders is in favor of the Merger Transaction. If a majority in voting power of the Stockholder Shares present and voting at such meeting vote in favor of the Merger Transaction, a second vote shall be held in compliance with the
requirements of Section 86(2) of the Companies Law or other applicable voting requirement, and each Stockholder shall vote its Stockholder Shares in favor of the Merger Transaction. If a majority in voting power of the Stockholder Shares present and
voting at such meeting vote against the Merger Transaction in the initial vote, then each Stockholder shall vote its Stockholder Shares against such Merger Transaction in such second vote. 
  
 2.7    Grant of Proxy. 
  
 Upon the failure of any Stockholder to vote their Stockholder Shares in accordance
with the terms of this Article II, such Stockholder hereby grants to a shareholder representative designated by the Investor a proxy coupled with an interest in all Stockholder Shares owned by such Stockholder, which proxy shall be irrevocable until
this Agreement terminates pursuant to its terms or this Section 2.7 is amended to remove such grant of proxy in accordance with Section 10.14 hereof, to vote all such Stockholder Shares at any meeting of shareholders (or in any written consent) in
the manner provided in this Article II. 
  
 ARTICLE III 
  
 REGISTRATION RIGHTS 
  
 3.1    Request for Registration. 
  
 (a)    Subject to the terms of this Section 3.1, if the Company
shall receive at any time after six (6) months after the effective date of the Qualified Public Offering, a written request from the Holders of fifty percent (50%) or more of the Registrable Securities then outstanding (for purposes of this Section
3.1, the “Initiating Holders”) that the Company file a registration statement under the Act covering the registration of Registrable Securities with anticipated aggregate proceeds of at least US$7,500,000, then the Company
shall, within twenty (20) days of the receipt thereof, give written notice of such request to all known Holders, and subject to the terms of this Section 3.1, use all commercially reasonable efforts to effect, as soon as practicable, the
registration under the Act of all Registrable Securities that the Holders request to be registered in a written request received by the Company within twenty (20) days of the mailing of the Company’s notice pursuant to this Section 3.1(a).

  
 (b)    If the Initiating Holders intend to
distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to this Section 3.1 and the Company shall include such information in the written
notice referred to in Section 3.1(a). In such event the right of any Holder to include its Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such
Holder’s Registrable Securities in the underwriting (unless otherwise mutually agreed by a majority in interest of the Initiating Holders and such Holder) to the extent provided herein. All Holders proposing to distribute their securities
through such underwriting shall enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting by a majority in interest of the Initiating Holders (which underwriter or underwriters shall
be reasonably 

  

 7 

 
acceptable to the Company). Notwithstanding any other provision of this Section 3.1, if the underwriter advises the Company that marketing factors require a limitation
of the number of securities underwritten (including Registrable Securities), then the Company shall so advise all Holders of Registrable Securities that would otherwise be underwritten pursuant hereto, and the number of shares that may be included
in the underwriting shall be allocated to the Holders of such Registrable Securities on a pro rata basis based on the number of Registrable Securities held by all such Holders (including the Initiating Holders); provided, however, that
(i) in no event shall any Registrable Securities held by the Investor or the Series A Holders be excluded from such underwriting unless all other securities and Registrable Securities held by Common Holders are first excluded and (ii) in no event
shall any Registrable Securities be excluded from such underwriting unless all other securities are first excluded. Any Registrable Securities excluded or withdrawn from such underwriting shall be withdrawn from the registration. For purposes of the
second preceding sentence concerning apportionment, for any selling shareholder that is a Holder of Registrable Securities and that is a venture capital fund, partnership or corporation, the affiliated venture capital funds, partners, retired
partners and shareholders of such Holder, or the estates and family members of any such partners and retired partners and any trusts for the benefit of any of the foregoing persons shall be deemed to be a single “selling Holder,” and any
pro rata reduction with respect to such “selling Holder” shall be based upon the aggregate amount of Registrable Securities owned by all such related entities and individuals. 
  
 (c)    The Company shall not be required to effect a registration pursuant to this Section 3.1: 

 
 (i)    in any particular jurisdiction in which
the Company would be required to execute a general consent to service of process in effecting such registration, unless the Company is already subject to service in such jurisdiction and except as may be required under the Act; or 
  
 (ii)    after the Company has effected two (2)
registrations pursuant to this Section 3.1, and such registrations have been declared or ordered effective (and have not been subject to a “stop order” or otherwise withdrawn); or 
  
 (iii)    during the period starting with the date
sixty (60) days prior to the Company’s good faith estimate of the date of the filing of, and ending on a date one hundred eighty (180) days following the effective date of, a Company-initiated registration subject to Section 3.2 below, provided
that the Company is actively employing in good faith all commercially reasonable efforts to cause such registration statement to become effective; or 
  
 (iv)    if the Initiating Holders propose to dispose of Registrable Securities that may be registered on Form F-3 or Form S-3
pursuant to Section 3.3 or 3.4 hereof; or 
  
 (v)    if the Company shall furnish to Holders requesting a registration statement pursuant to this Section 3.1, a certificate signed by the Company’s Chief Executive Officer or Chairman of the Board stating that in
the good faith judgment of the Board of Directors, it would be seriously detrimental to the Company and its shareholders for such registration statement to be effected at such time, in which event the Company shall have the right to defer such
filing for a period of not more than ninety (90) days after receipt of the request of the Initiating Holders, provided that such right shall be exercised by the Company not more than once in any twelve (12)-month period and provided further that the
Company shall not register any securities for the account of itself or any other shareholder during such ninety (90) day period (other than a registration relating solely to the sale of securities of participants in a Company stock plan, a
registration relating to a corporate reorganization or transaction under Rule 145 of the Act, a registration on any form that does not include substantially the same information as would be required to be included in a registration 

  

 8 

 
statement covering the sale of the Registrable Securities, or a registration in which the only Ordinary Shares or High-Vote Ordinary Shares being registered are
Ordinary Shares or High-Vote Ordinary Shares issuable upon conversion of debt securities that are also being registered). 
  
 3.2    Piggyback Registrations. 
  
 (a)    If (but without any obligation to do so) the Company proposes to register (including for this purpose a registration effected by the
Company for shareholders other than the Holders) any of its stock or other securities under the Act in connection with the public offering of such securities (other than a registration relating solely to the sale of securities of participants in a
Company stock plan, a registration relating to a corporate reorganization or transaction under Rule 145 of the Act, or a registration on any form that does not include substantially the same information as would be required to be included in a
registration statement covering the sale of the Registrable Securities), the Company shall, at such time, promptly give each Holder written notice of such registration. Upon the written request of each Holder given within twenty (20) days after
mailing of such notice by the Company in accordance with the preceding sentence, the Company shall, subject to the provisions of Section 3.2(c), use all commercially reasonable efforts to cause to be registered under the Act all of the Registrable
Securities that each such Holder has requested to be registered. 
  
 (b)    Right to Terminate Registration.    The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 3.2 prior to the effectiveness of such
registration whether or not any Holder has elected to include securities in such registration. The expenses of such withdrawn registration shall be borne by the Company in accordance with Section 3.7 hereof. 
  
 (c)    Underwriting Requirements.    If
the Registration in respect of which the Company gives notice under this Section 3.2 is for an underwritten offering, the Company shall so advise each Holder. In connection with any offering involving an underwriting of the Company’s shares,
the Company shall not be required under this Section 3.2 to include any of the Holders’ securities in such underwriting unless they accept the terms of the underwriting as agreed upon between the Company and the underwriters selected by it (or
by other persons entitled to select the underwriters) and enter into an underwriting agreement in customary form with such underwriters, and then only in such quantity as the underwriters determine in their sole reasonable discretion will not
jeopardize the success of the offering by the Company. If the total amount of securities, including Registrable Securities, requested by shareholders to be included in such offering exceeds the amount of securities sold other than by the Company
that the underwriters determine in their sole reasonable discretion is compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities,
that the underwriters determine in their sole discretion will not jeopardize the success of the offering. In no event shall any Registrable Securities be excluded from such offering unless all other shareholders’ securities are first excluded.
In the event that the underwriters determine that less than all of the Registrable Securities requested to be registered can be included in such offering, then the Registrable Securities that are included in such offering shall be apportioned pro
rata among the selling Holders based on the number of Registrable Securities held by all selling Holders or in such other proportions as shall mutually be agreed to by all such selling Holders. 
  
 3.3    Non-Investor Registration. 
  
 In case the Company shall receive from the Holders of Registrable Securities (for
purposes of this Section 3.3, the “Initiating Holders”) a written request or requests that the Company 

  

 9 

 
effect a registration on Form F-3 or Form S-3 and any related qualification or compliance with respect to all or a part of the Registrable Securities owned by such
Holder or Holders, the Company shall: 
  
 (a)    promptly give written notice of the proposed registration, and any related qualification or compliance, to all other Holders; and 
  
 (b)    use all commercially reasonable efforts to effect, as soon as practicable, such
registration and all such qualifications and compliances as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of such Holders’ Registrable Securities as are specified in such request,
together with all or such portion of the Registrable Securities of any other Holders joining in such request as are specified in a written request given within fifteen (15) days after receipt of such written notice from the Company, provided,
however, that the Company shall not be obligated to effect any such registration, qualification or compliance, pursuant to this Section 3.3: 
  
 (i)    if Form F-3 or Form S-3 is not available for such offering by the Holders; 
  
 (ii)    if the Holders, together with the holders
of any other securities of the Company to be included in such registration, propose to sell Registrable Securities and such other securities (if any) at an aggregate price to the public (net of any underwriters’ discounts or commissions) of
less than $1,000,000; 
  
 (iii)    if
the Company shall furnish to Holders requesting a registration statement pursuant to this Section 3.3, a certificate signed by the Company’s Chief Executive Officer or Chairman of the Board stating that in the good faith judgment of the Board
of Directors, it would be seriously detrimental to the Company and its shareholders for such registration statement to be effected at such time, in which event the Company shall have the right to defer such filing for a period of not more than
ninety (90) days after receipt of the request of the Initiating Holders, provided that such right shall be exercised by the Company not more than once in any twelve (12) month period and provided further that the Company shall not register any
securities for the account of itself or any other shareholder during such ninety (90) day period (other than a registration relating solely to the sale of securities of participants in a Company stock plan, a registration relating to a corporate
reorganization or transaction under Rule 145 of the Act, or a registration on any form that does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable
Securities); 
  
 (iv)    if the Company
has, within the twelve (12) month period preceding the date of such request, already effected one registration on Form F-3 or Form S-3 for the Holders pursuant to this Section 3.3; or 
  
 (v)    in any particular jurisdiction in which the Company would be required to qualify to do
business or to execute a general consent to service of process in effecting such registration, qualification or compliance except as may be required by the Act. 
  
 (c)    If the Initiating Holders intend to distribute the Registrable Securities covered by their
request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to this Section 3.3 and the Company shall include such information in the written notice referred to in Section 3.3(a). The provisions of
Section 3.1(b) shall be applicable to such request (with the substitution of Section 3.3 for references to Section 3.1). 
  
 (d)    Subject to the foregoing, the Company shall file a registration statement covering the Registrable Securities and other
securities so requested to be registered as soon as 

  

 10 

 
practicable after receipt of the request or requests of the Initiating Holders. Registrations effected pursuant to this Section 3.3 shall not be counted as requests
for registration effected pursuant to Section 3.1. 
  
 3.4    Investor Registration. 
  
 In case the Company shall receive from the Holders of Registrable Securities (for purposes of this Section 3.4, the “Initiating Holders”) a written request or requests that the Company effect a registration on
Form F-3 or Form S-3 and any related qualification or compliance with respect to all or a part of the Registrable Securities owned by such Holder or Holders, the Company shall: 
  
 (a)    promptly give written notice of the proposed registration, and any related qualification or
compliance, to all other Holders; and 
  
 (b)    use all commercially reasonable efforts to effect, as soon as practicable, such registration and all such qualifications and compliances as may be so requested and as would permit or facilitate the sale and
distribution of all or such portion of such Holders’ Registrable Securities as are specified in such request, together with all or such portion of the Registrable Securities of any other Holders joining in such request as are specified in a
written request given within fifteen (15) days after receipt of such written notice from the Company, provided, however, that the Company shall not be obligated to effect any such registration, qualification or compliance, pursuant to
this Section 3.4: 
  
 (i)    if Form
F-3 or Form S-3 is not available for such offering by the Holders; 
  
 (ii)    if the Holders, together with the holders of any other securities of the Company to be included in such registration, propose to sell Registrable Securities and such other securities (if any) at an
aggregate price to the public (net of any underwriters’ discounts or commissions) of less than $1,000,000; 
  
 (iii)    if the Company shall furnish to Holders requesting a registration statement pursuant to this Section 3.4, a certificate
signed by the Company’s Chief Executive Officer or Chairman of the Board stating that in the good faith judgment of the Board of Directors, it would be seriously detrimental to the Company and its shareholders for such registration statement to
be effected at such time, in which event the Company shall have the right to defer such filing for a period of not more than ninety (90) days after receipt of the request of the Initiating Holders, provided that such right shall be exercised by the
Company not more than once in any twelve (12) month period and provided further that the Company shall not register any securities for the account of itself or any other shareholder during such ninety (90) day period (other than a registration
relating solely to the sale of securities of participants in a Company stock plan, a registration relating to a corporate reorganization or transaction under Rule 145 of the Act, or a registration on any form that does not include substantially the
same information as would be required to be included in a registration statement covering the sale of the Registrable Securities); 
  
 (iv)    if the Company has, within the twelve (12) month period preceding the date of such request, already effected two
registrations on Form F-3 for the Holders pursuant to this Section 3.4; or 
  
 (v)    in any particular jurisdiction in which the Company would be required to qualify to do business or to execute a general consent to service of process in effecting such registration, qualification or
compliance except as may be required by the Act. 
  
 (c)    If the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of 

  

 11 

 
their request made pursuant to this Section 3.4 and the Company shall include such information in the written notice referred to in Section 3.4(a). The provisions of
Section 3.1(b) shall be applicable to such request (with the substitution of Section 3.4 for references to Section 3.1). 
  
 (d)    Subject to the foregoing, the Company shall file a registration statement covering the Registrable Securities and other
securities so requested to be registered as soon as practicable after receipt of the request or requests of the Initiating Holders. Registrations effected pursuant to this Section 3.4 shall not be counted as requests for registration effected
pursuant to Section 3.1. 
  
 3.5    Obligations of the
Company. 
  
 Whenever required under this Article III to
effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible: 
  
 (a)    prepare and file with the SEC a registration statement with respect to such Registrable Securities and use all
commercially reasonable efforts to cause such registration statement to become effective within ninety (90) days thereafter, and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such
registration statement effective for a period of up to one hundred twenty (120) days or, if earlier, until the distribution contemplated in the Registration Statement has been completed; 
  
 (b)    prepare and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection with such registration statement as may be necessary to comply with the provisions of the Act with respect to the disposition of all securities covered by such registration statement; 
  
 (c)    furnish to the Holders such numbers of
copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them;

  
 (d)    use all commercially
reasonable efforts to register and qualify the securities covered by such registration statement under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably requested by the Holders, provided that the Company shall not
be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions; 
  
 (e)    in the event of any underwritten public offering, enter into and perform its obligations
under an underwriting agreement, in usual and customary form, with the managing underwriter(s) of such offering; 
  
 (f)    notify each Holder of Registrable Securities covered by such registration statement at any time when a prospectus
relating thereto is required to be delivered under the Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing, and, as promptly as practicable, prepare and file with the SEC an amendment to such
prospectus or amend or supplement such prospectus such that such prospectus, as so amended, shall not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances then existing, and, as promptly as is practicable, furnish each Holder a reasonable number of copies of the supplement to or the amendment of such prospectus; 
  

 12 

 (g)    promptly notify each Holder of Registrable Securities (i) when a
registration statement relating to Registrable Securities has become effective or any supplement to or amendment of any prospectus forming a part of such registration statement has been filed, (ii) when a receipt is obtained for a final prospectus
relating to Registrable Securities, (iii) when any amendment of or supplement to a prospectus relating to Registrable Securities shall have been filed, (iv) of any request by the SEC to amend or supplement such registration statement or prospectus
or for additional information, (v) of the issuance by the SEC of any order preventing or suspending the use of any preliminary prospectus or prospectus, and (vi) of the suspension of the qualification of such securities for offering or sale in any
jurisdiction, or of the institution of any proceedings for any such purposes; provided, however, that notice of any documents described in clauses (i), (ii) and (iii) shall be deemed delivered when such materials become publicly available;

  
 (h)    cause all such Registrable
Securities registered pursuant to this Article III to be listed on a national exchange or trading system and on each securities exchange and trading system on which similar securities issued by the Company are then listed; 
  
 (i)    provide a transfer agent and registrar for
all Registrable Securities registered pursuant hereunder and a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration; 
  
 (j)    use commercially reasonable efforts to obtain the lifting of any order that might be issued
preventing or suspending the use of any preliminary prospectus or prospectus; 
  
 (k)    use commercially reasonable efforts to furnish, on the date that such Registrable Securities are delivered to the underwriters for sale, if such securities are being sold through underwriters, (i)
opinions, dated as of such date, of the counsel representing the Company for the purposes of such prospectus, in form and substance as is customarily given to the underwriters in an underwritten public offering, addressed to the underwriters, if
any, and (ii) a letter, dated as of such date, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public
offering, addressed to the underwriters, if any; and 
  
 (l)    cooperate in reasonable marketing efforts, including participation by senior executives of the Company in any “roadshow” or similar meeting with potential investors, in order to expedite or facilitate
the disposition of the Registrable Securities. 
  
 Notwithstanding the
provisions of this Article III, the Company shall be entitled to postpone or suspend, for a reasonable period of time (provided that such right shall be exercised by the Company not more than once in any twelve (12) month period) the filing,
effectiveness or use of, or trading under, any registration statement if the Company shall determine that any such filing or the sale of any securities pursuant to such registration statement would: 
  
 (i)    in the good faith judgment of the Board of
Directors, materially impede, delay or interfere with any material pending or proposed financing, acquisition, corporate reorganization or other similar transaction involving the Company for which the Board of Directors has authorized negotiations;

  
 (ii)    in the good faith judgment
of the Board of Directors, materially adversely impair the consummation of any pending or proposed material offering or sale of any class of securities by the Company; or 
  
 (iii)    in the good faith judgment of the Board of Directors, require disclosure of material
non-public information that, if disclosed at such time, would be materially harmful to the interests of the Company and its shareholders; provided, however, that 

  

 13 

 
during any such period all executive officers and directors of the Company are also prohibited from selling securities of the Company (or any security of any of the
Company’s subsidiaries or affiliates). 
  
 In the event of the
suspension of effectiveness of any registration statement pursuant to this Section 3.5, the applicable time period during which such registration statement is to remain effective shall be extended by that number of days equal to the number of days
during which the effectiveness of such registration statement was suspended. 
  
 3.6    Information from Holder. 
  
 The Company may require the Holders, in connection with a prospectus relating to Registrable Securities, to furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended
method of disposition of such securities as shall be reasonably required to effect the registration of such Holder’s Registrable Securities. 
  
 3.7    Expenses of Registration. 
  
 All expenses other than underwriting discounts and commissions incurred in connection with registrations, filings or qualifications pursuant to Sections 3.1, 3.2,
3.3 and 3.4 hereof, including (without limitation) all registration, filing and qualification fees, printers’ and accounting fees, fees and disbursements of counsel for the Company and the reasonable fees and disbursements of one counsel for
the selling Holders as a group (not to exceed $50,000 for each registration made pursuant to Section 3.1 and not to exceed $10,000 for each registration made pursuant to Sections 3.2, 3.3 and 3.4) shall be borne by the Company. Notwithstanding the
foregoing, the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to Section 3.1, 3.3 or Section 3.4 if the registration request is subsequently withdrawn at the request of the Holders of a majority
of the Registrable Securities to be registered (in which case all participating Holders shall bear such expenses pro rata based upon the number of Registrable Securities that were to be included in the withdrawn registration), unless, in the case of
a registration requested under Section 3.1, the Holders of a majority of the Registrable Securities held by the Holders agree to forfeit their right to one demand registration pursuant to Section 3.1 and provided, however, that if at the time
of such withdrawal, Holders have learned of a material adverse change in the condition, business, or prospects of the Company from that known to such Holders at the time of their request and have withdrawn the request with reasonable promptness
following disclosure by the Company of such material adverse change, then the Holders shall not be required to pay any of such expenses and shall retain their rights pursuant to Section 3.1, 3.3 or 3.4 hereof. 
  
 3.8    Delay of Registration. 
  
 No Holder shall have any right to obtain or seek an injunction restraining or
otherwise delaying any such registration as the result of any controversy that might arise with respect to the interpretation or implementation of this Article III. 
  
 3.9    Indemnification. 
  
 In the event any Registrable Securities are included in a registration statement under this Article III: 
  
 (a)    To the extent permitted by law, the Company
will indemnify and hold harmless each Holder, the partners, members, officers, directors and shareholders of each Holder, legal counsel and accountants for each Holder, any underwriter (as defined in the Act) for 

  

 14 

 
such Holder and each person, if any, who controls such Holder or underwriter within the meaning of the Act or the Exchange Act, against any losses, claims, damages or
liabilities (joint or several) to which they may become subject under the Act, the Exchange Act, any state securities laws or any rule or regulation promulgated under the Act, insofar as such losses, claims, damages, or liabilities (or actions in
respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively a “Violation”):    (i) any untrue statement or alleged untrue statement of a material fact
contained in such registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be
stated therein, or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the Act, the Exchange Act, any state securities laws or any rule or regulation promulgated under the Act, the
Exchange Act or any state securities laws, and the Company will reimburse each such Holder, underwriter, controlling person or other aforementioned person for any legal or other expenses reasonably incurred by them in connection with investigating
or defending any such loss, claim, damage, liability or action as such expenses are incurred; provided, however, that the indemnity agreement contained in this Section 3.9(a) shall not apply to amounts paid in settlement of any such loss, claim,
damage, liability or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such case for any such loss, claim, damage, liability or action
to the extent that it arises out of or is based upon a Violation that occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by any such Holder, underwriter, controlling
person or other aforementioned person; provided further, however, that the foregoing indemnity agreement with respect to any preliminary prospectus shall not inure to the benefit of any Holder or underwriter or other aforementioned person, or any
person controlling such Holder or underwriter, from whom the person asserting any such losses, claims, damages or liabilities purchased shares in the offering, if a copy of the most current prospectus was not sent or given by or on behalf of such
Holder or underwriter or other aforementioned person to such person, if required by law so to have been delivered, at or prior to the written confirmation of the sale of the shares to such person, and if the prospectus (as so amended or
supplemented) would have cured the defect giving rise to such loss, claim, damage or liability. 
  
 (b)    To the extent permitted by law, each selling Holder will indemnify and hold harmless the Company, each of its directors,
each of its officers who has signed the registration statement, each person, if any, who controls the Company within the meaning of the Act, legal counsel and accountants for the Company, any underwriter, any other Holder selling securities in such
registration statement and any controlling person of any such underwriter or other Holder, against any losses, claims, damages or liabilities (joint or several) to which any of the foregoing persons may become subject, under the Act, the Exchange
Act, any state securities laws or any rule or regulation promulgated under the Act, the Exchange Act or any state securities laws, insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon
any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Holder expressly for use in connection with such registration; and each such
Holder will reimburse any person intended to be indemnified pursuant to this Section 3.9(b) for any legal or other expenses reasonably incurred by such person in connection with investigating or defending any such loss, claim, damage, liability or
action as such expenses are incurred; provided, however, that the indemnity agreement contained in this Section 3.9(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such
settlement is 

  

 15 

 
effected without the consent of the Holder (which consent shall not be unreasonably withheld), and provided that in no event shall any indemnity under this Section
3.9(b) exceed the net proceeds from the offering received by such Holder. 
  
 (c)    Promptly after receipt by an indemnified party under this Section 3.9 of notice of the commencement of any action (including any governmental action), such indemnified party will, if a claim in
respect thereof is to be made against any indemnifying party under this Section 3.9, deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together
with all other indemnified parties that may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified
party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential conflict (as reasonably determined by the indemnified party) between such indemnified party and any other party represented by such counsel in
such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of liability
to the indemnified party under this Section 3.9 to the extent of such prejudice, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than
under this Section 3.9. 
  
 (d)    If
the indemnification provided for in this Section 3.9 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage or expense referred to herein, then the indemnifying
party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect
the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage or expense, as well as any other relevant
equitable considerations; provided, however, that no contribution by any Holder, when combined with any amounts paid by such Holder pursuant to Section 3.9(b), shall exceed the net proceeds from the offering received by such Holder. The
relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to
information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission. 
  
 (e)    The obligations of the Company and Holders
under this Section 3.9 shall survive the completion of any offering of Registrable Securities in a registration statement under this Article III, and otherwise. 
  

3.10    Reports Under the Exchange Act. 
  

With a view to making available to the Holders the benefits of Rule 144 and any other rule or regulation of the SEC that may at any time permit a Holder to sell
securities of the Company to the public without registration or pursuant to a registration on Form F-3 or Form S-3, the Company agrees to: 
  
 (a)    make and keep public information available, as those terms are understood and defined in Rule 144, at all times after the
effective date of the Qualified Public Offering; 
  

 16 

 (b)    file with the SEC in a timely manner all reports and other documents
required of the Company under the Act and the Exchange Act; and 
  
 (c)    furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) a written statement by the Company that it has complied with the reporting requirements of Rule 144 (at any
time after ninety (90) days after the effective date of the first registration statement filed by the Company), the Act and the Exchange Act (at any time after it has become subject to such reporting requirements), or that it qualifies as a
registrant whose securities may be resold pursuant to Form F-3 or Form S-3 (at any time after it so qualifies), (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company,
provided, however, that if the SEC has granted confidential treatment for any exhibits filed with any such filings, the Company need only provide to the Holders the redacted form of such exhibits as approved by the SEC, and (iii) such
other information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC that permits the selling of any such securities without registration or pursuant to such form. 
  
 3.11    Assignment of Registration Rights. 

 
 The rights to cause the Company to register Registrable Securities pursuant to this
Article III may be assigned (but only with all related obligations) by a Holder to a transferee or assignee of such securities that (i) is subsidiary, affiliate, parent, partner, limited partner, retired partner or shareholder of a Holder, (ii) is a
Holder’s family member or trust for the benefit of an individual Holder, or (iii) after such assignment or transfer, holds at least 100,000 shares of Registrable Securities (subject to appropriate adjustment for stock splits, stock dividends,
combinations and other recapitalizations), provided:    (a) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee or assignee and the securities
with respect to which such registration rights are being assigned; (b) such transferee or assignee agrees in writing to be bound by and subject to the terms and conditions of this Agreement, including, without limitation, the provisions of Section
5.2 hereof; and (c) such assignment shall be effective only if immediately following such transfer the further disposition of such securities by the transferee or assignee is restricted under the Act. 
  
 3.12    Limitations on Subsequent Registration Rights.

  
 From and after the date of this Agreement, the Company shall not,
without the prior written consent of the Holders of a majority of the Registrable Securities held by Holders (other than the Common Holders), enter into any agreement with any holder or prospective holder of any securities of the Company that would
allow such holder or prospective holder (a) to include such securities in any registration filed under Section 3.1, Section 3.2, 3.3 or Section 3.4 hereof, unless under the terms of such agreement, such holder or prospective holder may include such
securities in any such registration only to the extent that the inclusion of such securities will not reduce the amount of the Registrable Securities of the Holders that are included, (b) to demand registration of their securities or (c) have any
registration rights the terms of which are more favorable than the registration rights granted to Holders. 
  
 3.13    Termination of Registration Rights. 
  
 No Holder shall be entitled to exercise any right provided for in this Article III (i) after five (5) years following the consummation of the Qualified Public
Offering or (ii) as to any Holder, such earlier time after the Qualified Public Offering at which such Holder (A) can sell all shares held by it in compliance with Rule 144(k) or (B) holds one percent (1%) or less of the Company’s 

  

 17 

 
outstanding Ordinary Shares and all Registrable Securities held by such Holder (together with any affiliate of the Holder with whom such Holder must aggregate its
sales under Rule 144) can be sold in any three (3) month period without registration in compliance with Rule 144. 
  
 ARTICLE IV 
  
 INFORMATIONAL RIGHTS 
  
 4.1    Delivery of
Financial Statements. 
  
 The Company shall deliver to the
Investor and each Series A Holder (or transferee any of the foregoing) (it being understood and agreed that such Stockholder may refuse to accept or receive such information to the extent it is unwilling to be subject to the confidentiality
restrictions set forth in this Article IV): 
  
 (a)    (i)    as soon as practicable, but in any event within forty five (45) days after the end of each fiscal year of the Company, an income statement for such fiscal year, a balance sheet of the
Company and statement of shareholders’ equity as of the end of such year, and a statement of cash flows for such year, such year-end financial reports to be in reasonable detail, prepared in accordance with U.S. GAAP, and (ii) as soon as
practicable, but in any event within sixty (60) days after the end of each fiscal year of the Company, the financial statements described in clause (i), prepared in accordance with U.S. GAAP, and audited and certified by independent public
accountants of nationally recognized standing selected by the Company; 
  
 (b)    as soon as practicable, but in any event within thirty (30) days after the end of each of the first three (3) quarters of each fiscal year of the Company, an unaudited income statement for such
quarter, statement of cash flows for such quarter and an unaudited balance sheet as of the end of such quarter; 
  
 (c)    as soon as practicable, but in any event within 30 days after the end of each month of each fiscal year of the Company,
an unaudited income statement for such month, statement of cash flows for such month and an unaudited balance sheet as of the end such month; 
  
 (d)    as soon as practicable, but in any event by December 31st, a budget and business plan for the next fiscal year, prepared
on a monthly basis, including balance sheets, income statements and statements of cash flows for such months and, as soon as prepared, any other budgets or revised budgets prepared by the Company or any update to any such business plan or budgets;

  
 (e)    with respect to the
financial statements called for in subsections (b) and (c) of this Section 4.1, an instrument executed by the Chief Financial Officer or President of the Company certifying that such financials were prepared in accordance with U.S. GAAP consistently
applied with prior practice for earlier periods (with the exception of footnotes that may be required by U.S. GAAP) and fairly present the financial condition of the Company and its results of operation for the period specified, subject to year-end
audit adjustment; and 
  
 (f)    such
other information relating to the financial condition, business or corporate affairs of the Company as the Investor or Series A Holders may from time to time reasonably request, provided, however, that the Company shall not be
obligated under this subsection (e) or any other subsection of Section 4.1 to provide information that it deems in good faith to be a trade secret or similar confidential information. 
  

 18 

 4.2    Inspection. 
  
 The Company shall permit each of the Investor and each Series A Holder, at such Stockholder’s expense, to visit and inspect the
Company’s properties, to examine its books of account and records and to discuss the Company’s affairs, finances and accounts with its officers, all at such reasonable times as may be requested by such Stockholder; provided,
however, that the Company shall not be obligated pursuant to this Section 4.2 to provide access to any information that it reasonably considers to be a trade secret or similar confidential information. 
  
 Each Stockholder agrees that it will keep confidential and will not disclose, divulge
or use for any purpose, other than to monitor its investment in the Company, any Confidential Information, unless such Confidential Information (i) is known or becomes known to the public in general (other than as a result of a breach of this
Section 4.2 by such Stockholder), (ii) is or has been independently developed or conceived by the Stockholder without use of the Company’s Confidential Information or (iii) is or has been made known or disclosed to the Stockholder by a third
party without a breach of any obligation of confidentiality such third party may have to the Company; provided, however, that a Stockholder may disclose Confidential Information (a) to its attorneys, accountants, consultants, and other
professionals to the extent necessary to obtain their services in connection with monitoring its investment in the Company, provided that such person is obligated not to disclose, divulge or use any Confidential Information to the same extent as the
Stockholders, (b) to any affiliate, partner, member, stockholder or wholly owned subsidiary of such Stockholder, provided that such person is obligated not to disclose, divulge or use any Confidential Information to the same extent as the
Stockholders, or (c) as may otherwise be required by law, provided that the Stockholder takes reasonable steps to minimize the extent of any such required disclosure. 
  
 4.3    Termination of Information and Inspection Covenants. 
  
 The covenants set forth in Sections 4.1 and 4.2 shall terminate and be of no further
force or effect when the Qualified Public Offering is consummated or when the Company first becomes subject to the periodic reporting requirements of Sections 12(g) or 15(d) of the Exchange Act, whichever event shall first occur. 
  
 ARTICLE V 
  
 QUALIFIED PUBLIC OFFERING 
  
 5.1    Limitation on Qualified Public Offering. 
  
 In no event shall (a) more than 15% of the then-Fully-Diluted Number (taking into account the shares to be sold in the Qualified
Public Offering) be sold by the Company as part of or in connection with the Qualified Public Offering, and no securities other than the Ordinary Shares will be offered in the Qualified Public Offering or (b) the Investor sell any of its Stockholder
Shares as part of or in connection with the Qualified Public Offering. 
  
 5.2    Market Stand-Off. 
  
 (a)    Each Stockholder hereby agrees that it will not, without the prior written consent of the managing underwriter, during the period commencing on the date of the final prospectus relating to any public
offering of the Company’s capital stock and ending on the date specified by the Company and the managing underwriter (such period not to exceed one hundred eighty (180) days in the case of the Qualified Public Offering and ninety (90) days in
the case of any 

  

 19 

 
other public offering of capital stock) (i) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, or otherwise transfer any option or
contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any Stockholder Shares held immediately prior to the effectiveness of the registration statement for such offering, or
(ii) enter into any swap or other arrangement that Transfers to another, in whole or part, any of the economic consequences of ownership of the Stockholder Shares, whether any such transaction described in clause (i) or (ii) above is settled by
delivery of Stockholder Shares or other securities, in cash or otherwise. The foregoing provisions of this Section 5.2(a) shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement, and shall only be applicable
to the Stockholders if all officers, directors and greater than two percent (2%) shareholders of the Company enter into similar agreements. Each Stockholder further agrees to execute such agreements as may be reasonably requested by the underwriters
in a public offering that are consistent with this Section 5.2(a) or that are necessary to give further effect thereto. 
  
 Notwithstanding the foregoing, the restrictions in the paragraph above shall not apply (it being understood and agreed, however, that restrictions other than the
one in this Section 5.2(a) may continue to apply) to a transfer by a Stockholder of its Stockholder Shares (i) as a bona fide gift or gifts, provided that the donee or donees thereof agrees with the parties hereto to comply with the terms and
conditions of Section 7.3 hereof (including by agreeing to be bound in writing by the restrictions set forth herein), or (ii) to any trust for the direct or indirect benefit of such Stockholder or the immediate family of such Stockholder, provided
that the trustee of the trust agrees with the parties hereto to comply with the terms and conditions of Section 7.3 hereof (including by agreeing to be bound in writing by the restrictions set forth herein), and provided further that any such
transfer referred to in (i) and (ii) shall not involve a disposition for value. For purposes of this Section 5.2(a), “immediate family” shall mean any relationship by blood, marriage or adoption, not more remote than first cousin. In
addition, if the Stockholder is a corporation, the restrictions in the first paragraph of this Section 5.2(a) shall not apply (it being understood and agreed, however, that restrictions other than the one in this Section 5.2(a) may continue to
apply) to a transfer by a corporation of capital stock of the Company to any wholly-owned subsidiary of such corporation, or, if the Stockholder is a limited liability company, to the transfer by the limited liability company to a member or
affiliated limited liability company, or, if the Stockholder is a partnership, to the transfer by the partnership to a partner or affiliated partnership; provided, however, that in any such case, it shall be a condition to the transfer that the
transferee agrees with the parties hereto to comply with the terms and conditions of Section 7.3 hereof (including by agreeing to be bound in writing by the restrictions set forth herein), and provided further that any such transfer shall not
involve a disposition for value. 
  
 (b) In order to enforce the foregoing
covenant, the Company may impose stop transfer instructions with respect to the ordinary shares of each Stockholder (and the shares or securities of every other person subject to the foregoing restriction) until the end of such period. 

 
 5.3    Investor Restrictions. 
  
 (a)    Without limiting Section 5.2 hereof, if the Investor shall
have exercised the Warrant within thirty (30) Business Days following the consummation of the Qualified Public Offering, the Investor shall not Transfer its Stockholder Shares prior to the one-year anniversary of the consummation of the Qualified
Public Offering. 
  
 (b)    From the date of the
consummation of the Qualified Public Offering until the twenty-four (24) month anniversary thereof, the Investor shall not (and shall cause each of its affiliates and each of their respective employees, officers, directors, representatives and
agents not to) 

  

 20 

 
solicit, initiate, entertain, consider, encourage or accept the submission of any inquiry, proposal or offer relating to the acquisition (whether by merger, purchase
of stock, purchase of assets or otherwise) of the Company (i) by any third-party or any Stockholder or affiliate thereof or (ii) as part of an acquisition which would result in the Company no longer being subject to the reporting requirements under
the Exchange Act. 
  
 5.4    Investor
Standstill. 
  
 If (i) the Qualified Public Offering is
consummated, (ii) the Warrant expires unexercised or is otherwise terminated in accordance with the terms thereof and (iii) the Investor (together with its affiliates) collectively beneficially owns less than 50% of the then-outstanding ordinary
shares (including, for purposes of such calculation, the preferred shares on an as-converted basis), then from and after such expiration or termination until the second anniversary thereof, without the prior written consent of the Company, the
Investor shall not, nor shall it permit any of its affiliates to, individually or collectively, directly or indirectly, acquire or offer to acquire or agree to acquire from any person, directly or indirectly, by purchase or merger, through the
acquisition of control of another person, or otherwise, beneficial ownership of any equity securities of the Company, or direct or indirect rights (including convertible securities) or options to acquire such beneficial ownership; provided,
however, that no such acquisition, offer to acquire or agreement to acquire shall be deemed to occur solely due to (a) a stock split, reverse stock split, reclassification, reorganization or other transaction, such as a rights offering, by
the Company affecting any class of the outstanding capital stock of the Company generally or (b) a stock dividend or other pro rata distribution by the Company to holders of its outstanding capital stock; and provided, further,
however, that this Section 5.4 shall terminate (and the obligations and restrictions hereunder shall cease and be of no further force or effect) upon the earliest to occur of (x) the IAC Control Date, (y) the date on which a Stockholder or an
affiliate thereof (other than the Investor or any affiliate thereof) makes a bona fide offer to purchase or otherwise acquire (or consummates a purchase or acquisition if not announced prior thereto) an amount of ordinary shares (or securities
exercisable for or convertible into ordinary shares) equal to the number of ordinary shares that, when added together with all other ordinary shares acquired by such Stockholder since the date hereof, would represent 5% or more of the
then-Fully-Diluted Number or (z) the date on which a third party (other than a Stockholder or any affiliate thereof) makes a bona fide offer to purchase or otherwise acquire (or consummates a purchase or acquisition if not announced prior thereto)
an amount of ordinary shares (or securities exercisable for or convertible into ordinary shares) which would result in such third party holding ordinary shares representing 5% or more of the then-Fully-Diluted Number. 
  
 ARTICLE VI 
  
 INVESTOR RIGHT OF FIRST OFFER 
  
 6.1    Right of First Offer. 
  
 Subject to the terms and conditions specified in this Article VI, the Company hereby grants to the Investor and the Series A Holders a right of first offer with
respect to future sales or other issuances by the Company of the Shares (as hereinafter defined). Each time the Company proposes to offer or otherwise issue any shares of, or securities convertible into or exchangeable or exercisable for any shares
of, any class of the Company’s equity securities (“Shares”), the Company shall first make an offering of such Shares to the Investor and the Series A Holders in accordance with the following provisions: 
  
 (a)    The Company shall deliver a notice
(“Notice”) to the Investor and the Series A Holders stating (i) its bona fide intention to offer such Shares, (ii) the number of such Shares to be offered, and (iii) the price and terms upon which it proposes to offer such Shares.

  

 21 

 (b)    By written notification received by the Company within ten (10) calendar
days after receipt of the Notice, each of the Investor and the Series A Holders may elect to purchase or obtain, at the price and on the terms specified in the Notice, up to that portion of such Shares that equals the proportion that the number of
Stockholder Shares held by such Stockholder at such time bears to the then-Fully Diluted Number. 
  
 (c)    The right of first offer in this Section 6.1 shall not be applicable to (i) the issuance on the date hereof of stock
options covering 1,660,000 Ordinary Shares pursuant to the Elong Stock Plan; (ii) the issuance of securities pursuant to the Qualified Public Offering, (iii) the issuance of securities pursuant to the conversion or exercise of convertible or
exercisable securities; or (iv) the issuance of any shares of capital stock as a stock dividend or upon any subdivision or combination of shares of capital stock. 
  
 (d)    The covenants set forth in this Section 6.1 shall terminate and be of no further force or
effect upon the consummation of the Qualified Public Offering. 
  
 ARTICLE
VII 
  
 RESTRICTIONS ON TRANSFER 
  
 7.1    General Restrictions on Transfer. 
  
 Each Stockholder agrees that such Stockholder will not, directly or indirectly,
Transfer any Stockholder Shares now or hereafter at any time owned by such Stockholder (or any interest therein) to (each, a “Transferee”) any person, except as permitted by this Agreement. The Company shall not transfer upon its
books any Stockholder Shares to any person prohibited by this Agreement and any purported transfer in violation hereof shall be null and void and of no effect. 
  

7.2    Compliance with Securities Laws. 
  

No Stockholder shall Transfer any Stockholder Shares, and the Company shall not transfer on its books any Stockholder Shares, unless (i) the Transfer is pursuant
to an effective registration statement under the Act and is in compliance with any applicable foreign and state securities or blue sky laws, (ii) such Stockholder shall have furnished the Company with an opinion of counsel, to the extent reasonably
requested by the Company, which opinion of counsel shall be reasonably satisfactory to the Company, to the effect that no such registration is required because of the availability of an exemption from registration under the Act and applicable
foreign law, (iii) such Transfer is made by a Stockholder that is an individual to any member of his or her immediate family or any trust solely for the benefit of such Stockholder or any member of his or her immediate family, or (iv) such transfer
of Stockholder Shares is to an affiliate (for so long as such affiliate remains an affiliate thereof) and/or partner of such Stockholder which is a partnership and/or member of such Stockholder which is a limited liability company, provided such
transferee agrees with the parties hereto to comply with the terms and conditions of Section 7.3 hereof. 
  
 7.3    Agreement to be Bound. 
  
 No Transfer of Stockholder Shares by a Stockholder shall be effective (and the Company shall not transfer on its books any Stockholder Shares) unless (i) the
certificates representing such Stockholder Shares issued to the Transferee shall bear the legend set forth on Schedule 7.3 hereto, if required, and (ii) the Transferee shall have executed and delivered to the Company, as a condition precedent to
such Transfer, an instrument or instruments in form and substance satisfactory to the Company confirming that the Transferee agrees to be bound by the terms of 

  

 22 

 
this Agreement and accepts the rights and obligations set forth hereunder; provided, however, that the terms and conditions set forth in this Section 7.3
shall not apply to any sale of Stockholder Shares pursuant to an effective registration statement under the Act, or pursuant to Rule 144, or to any sale of Stockholder Shares pursuant to Section 7.7 hereof except to the extent that the agreement
providing for the sale of any Stockholder Shares pursuant to Section 7.7 provides that the Transferee shall be bound by this Agreement. 
  
 7.4    Tag-Along Rights for the Non-Investor Stockholders 
  
 (a)    Right to Participate in Sale. 
  
 If at any time after the IAC Control Date, the Investor proposes to enter into an agreement to sell or otherwise dispose of for value
any Stockholder Shares (except for any disposition to a controlled affiliate of the Investor) in one or more related transactions which will result in the Transfer of capital stock representing at least fifty percent (50%) or more of the combined
voting power of all outstanding shares of capital stock of the Company (such sale or other disposition for value being referred to as a “Tag-Along Sale”), then the Investor shall afford the other Stockholders (each individually a
“Tag-Along Stockholder” and, collectively, the “Tag-Along Stockholders”) the opportunity to participate proportionately in such Tag-Along Sale on the same terms and conditions provided to the Investor, including the
time of payment and the form of consideration, in accordance with this Section 7.4. The number of Stockholder Shares that each Tag-Along Stockholder will be entitled to include in such Tag-Along Sale (the “Tag-Along Allotment”)
shall be determined by multiplying (i) the number of Stockholder Shares held of record by such Tag-Along Stockholder as of the close of business on the day immediately prior to the Tag-Along Notice Date (as hereinafter defined) by (ii) a fraction,
the numerator of which shall equal the number of Stockholder Shares proposed by the Investor to be sold or otherwise disposed of pursuant to the Tag-Along Sale and the denominator of which shall equal the total number of Stockholder Shares held of
record by the Investor as of the close of business on the day immediately prior to the Tag-Along Notice Date. The Tag-Along Allotment of each Stockholder shall be subject to reduction pursuant to the final sentence of the first paragraph of Section
7.4(c). 
  
 (b)    Sale Notice. 
  
 The Investor shall provide each Tag-Along Stockholder and the Company with written
notice (the “Tag-Along Sale Notice”) not more than thirty (30) days nor less than ten (10) Business Days prior to the proposed date of the Tag-Along Sale (the “Tag-Along Sale Date”). Each Tag-Along Sale Notice shall
set forth: (i) the name and address of each proposed Transferee of Stockholder Shares in the Tag-Along Sale; (ii) the number of Stockholder Shares proposed to be Transferred by the Investor; (iii) the proposed amount and form of consideration to be
paid for such Stockholder Shares and the terms and conditions of payment offered by each proposed Transferee; (iv) the aggregate number of Stockholder Shares held of record by the Investor as of the close of business on the day immediately prior to
the date of the Tag-Along Notice (the “Tag-Along Notice Date”); (v) the Tag-Along Stockholder’s Tag-Along Allotment, which shall be based upon the number of Stockholder Shares held of record by such Tag-Along Stockholder as of
the close of business on the day immediately prior to the Tag-Along Notice Date, assuming the Tag-Along Stockholder elected to sell the maximum number of Stockholder Shares possible (such allotment subject to reduction on a pro rata basis depending
upon the total number of Stockholder Shares the Transferee is willing to acquire); and (vi) the Tag-Along Sale Date. 
  

 23 

 (c)    Tag-Along Notice. 
  
 Any Tag-Along Stockholder wishing to participate in the Tag-Along Sale shall provide written notice (the “Tag-Along
Notice”) to the Investor no less than ten (10) Business Days prior to the Tag-Along Sale Date. The Tag-Along Notice shall set forth the number of Stockholder Shares that such Tag-Along Stockholder elects to include in the Tag-Along Sale,
which shall not exceed such Tag-Along Stockholder’s Tag-Along Allotment. The Tag-Along Notice given by any Tag-Along Stockholder shall constitute such Tag-Along Stockholder’s binding agreement to sell the Stockholder Shares specified in
the Tag-Along Notice on the terms and conditions applicable to the Tag-Along Sale; provided, however, that in the event that there is any material change in the terms and conditions of such Tag-Along Sale applicable to the Tag-Along
Stockholder (including, but not limited to, any decrease in the purchase price that occurs other than pursuant to an adjustment mechanism set forth in any agreement relating to the Tag-Along Sale) after such Tag-Along Stockholder gives its Tag-Along
Notice, then, notwithstanding anything to the contrary contained in this Agreement, the Investor shall provide further notice thereof and the Tag-Along Stockholder shall have the right to withdraw from participation in the Tag-Along Sale with
respect to all of its Stockholder Shares affected thereby. If the proposed Transferee does not consummate the purchase of all of the Stockholder Shares requested to be included in the Tag-Along Sale by any Tag-Along Stockholder on the same terms and
conditions applicable to the Investor, then the Investor shall not consummate the Tag-Along Sale of any of its Stockholder Shares to such Transferee, unless the Stockholder Shares of the Investor and the Tag-Along Stockholders to be sold are reduced
or limited pro rata in proportion to the respective number of Stockholder Shares to actually be sold in any such Tag-Along Sale and all other terms and conditions of the Tag-Along Sale are the same for the Investor and the Tag-Along Stockholders.

  
 If a Tag-Along Notice from any Tag-Along Stockholder is not received by
the Investor prior to the ten (10) Business Day period specified above, such Investor shall have the right to consummate the Tag-Along Sale without the participation of such Tag-Along Stockholder, but only on terms and conditions which are no more
favorable in any material respect to the Investor than as stated in the Tag-Along Sale Notice and only if such Tag-Along Sale occurs on a date within sixty (60) days of the Tag-Along Sale Date, subject to extension for receipt of any required
third-party consents or approvals. If such Tag-Along Sale does not occur within such sixty (60) day period (as extended), the Stockholder Shares that were to be subject to such Tag-Along Sale thereafter shall continue to be subject to all of the
restrictions contained in this Section 7.4. 
  
 (d)    Delivery of Certificates; Other Agreements. 
  
 On the Tag-Along Sale Date, each Tag-Along Stockholder shall deliver a certificate or certificates for the Stockholder Shares to be sold by such Tag-Along Stockholder in connection with the Tag-Along Sale, duly endorsed for
transfer with signatures guaranteed, to the Transferee in the manner and at the address indicated in the Tag-Along Notice against delivery of the purchase price for such Shares, and shall enter into any other agreements with the Investor and the
Transferee reasonably requested in connection with the Transfer, in each case as a condition to such Tag-Along Stockholder’s right to participate in the Tag-Along Sale. 
  
 (e)    Termination upon Qualified Public Offering. 
  
 This Section 7.4 shall terminate and be of no further force or effect upon the
consummation of the Qualified Public Offering. 
  

 24 

 7.5    Tag-Along Rights for the Investor 
  
 (a)    Right to Participate in Sale. 
  
 If at any time after the Warrant expires unexercised or is otherwise terminated in
accordance with the terms thereof, the Company or any Stockholder or any group of Stockholders (other than the Investor) (the “Transferor”) proposes to enter into an agreement to sell or otherwise dispose of for value any
Stockholder Shares in one or more related transactions which will result in the Transfer of capital stock representing at least five percent (5%) or more of the combined voting power of all outstanding shares of capital stock of the Company (such
sale or other disposition for value being referred to as a “Transferor Tag-Along Sale”), then the Transferor shall afford the Investor the opportunity to participate proportionately in such Transferor Tag-Along Sale on the same
terms and conditions provided to the Transferor, including the time of payment and the form of consideration, in accordance with this Section 7.5. The number of Stockholder Shares that the Investor will be entitled to include in such Transferor
Tag-Along Sale (the “Tag-Along Allotment”) shall be determined by multiplying (i) the number of Stockholder Shares held of record by the Investor as of the close of business on the day immediately prior to the Tag-Along Notice Date
(as hereinafter defined) by (ii) a fraction, the numerator of which shall equal the number of Stockholder Shares proposed by the Transferor to be sold or otherwise disposed of pursuant to the Transferor Tag-Along Sale and the denominator of which
shall equal the total number of Stockholder Shares held of record by the Transferor as of the close of business on the day immediately prior to the Tag-Along Notice Date. The Tag-Along Allotment of the Investor shall be subject to reduction pursuant
to the final sentence of the first paragraph of Section 7.5(c). 
  
 (b)    Sale Notice. 
  
 The Transferor
shall provide the Investor and the Company with written notice (the “Transferor Tag-Along Sale Notice”) not more than thirty (30) days nor less than ten (10) Business Days prior to the proposed date of the Transferor Tag-Along Sale
(the “Transferor Tag-Along Sale Date”). Each Transferor Tag-Along Sale Notice shall set forth: (i) the name and address of each proposed Transferee of Stockholder Shares in the Transferor Tag-Along Sale and the name and
address of the Transferor(s); (ii) the number of Stockholder Shares proposed to be Transferred by the Transferor; (iii) the proposed amount and form of consideration to be paid for such Stockholder Shares and the terms and conditions of payment
offered by each proposed Transferee; (iv) the aggregate number of Stockholder Shares held of record by the Transferor as of the close of business on the day immediately prior to the date of the Transferor Tag-Along Notice (the “Transferor
Tag-Along Notice Date”); (v) the Investor’s Tag-Along Allotment, which shall be based upon the number of Stockholder Shares held of record by the Investor as of the close of business on the day immediately prior to the Transferor
Tag-Along Notice Date, assuming the Investor elected to sell the maximum number of Stockholder Shares possible (such allotment subject to reduction on a pro rata basis depending upon the total number of Stockholder Shares the Transferee is willing
to acquire); and (vi) the Transferor Tag-Along Sale Date. 
  
 (c)    Transferor Tag-Along Notice. 
  
 If the Investor desires to participate in the Transferor Tag-Along Sale, it shall provide written notice (the “Transferor Tag-Along Notice”) to the Transferor no less than ten (10) Business Days prior to the Transferor
Tag-Along Sale Date. The Transferor Tag-Along Notice shall set forth the number of Stockholder Shares that the Investor elects to include in the Transferor Tag-Along Sale, which shall not exceed the Investor’s Tag-Along Allotment. The
Transferor Tag-Along Notice given by the Investor shall constitute the Investor’s 

  

 25 

 
binding agreement to sell the Stockholder Shares specified in the Transferor Tag-Along Notice on the terms and conditions applicable to the Transferor Tag-Along Sale;
provided, however, that in the event that there is any material change in the terms and conditions of such Transferor Tag-Along Sale applicable to the Investor (including, but not limited to, any decrease in the purchase price that
occurs other than pursuant to an adjustment mechanism set forth in any agreement relating to the Transferor Tag-Along Sale) after the Investor gives its Transferor Tag-Along Notice, then, notwithstanding anything to the contrary contained in this
Agreement, the Transferor shall provide further notice thereof and the Investor shall have the right to withdraw from participation in the Transferor Tag-Along Sale with respect to all of its Stockholder Shares affected thereby. If the proposed
Transferee does not consummate the purchase of all of the Stockholder Shares requested to be included in the Transferor Tag-Along Sale by the Investor on the same terms and conditions applicable to the Transferor, then the Transferor shall not
consummate the Transferor Tag-Along Sale of any of its Stockholder Shares to such Transferee, unless the Stockholder Shares of the Transferor and the Investor to be sold are reduced or limited pro rata in proportion to the respective number of
Stockholder Shares to actually be sold in any such Transferor Tag-Along Sale and all other terms and conditions of the Transferor Tag-Along Sale are the same for the Transferor and the Investor. 
  
 If a Transferor Tag-Along Notice from the Investor is not received by the Transferor
prior to the ten (10) Business Day period specified above, such Transferor shall have the right to consummate the Transferor Tag-Along Sale without the participation of the Investor, but only on terms and conditions which are no more favorable in
any material respect to the Transferor than as stated in the Transferor Tag-Along Sale Notice and only if such Transferor Tag-Along Sale occurs on a date within sixty (60) days of the Transferor Tag-Along Sale Date, subject to extension for receipt
of any required third-party consents or approvals. If such Transferor Tag-Along Sale does not occur within such sixty (60) day period (as extended), the Stockholder Shares that were to be subject to such Transferor Tag-Along Sale thereafter shall
continue to be subject to all of the restrictions contained in this Section 7.5. 
  
 (d)    Delivery of Certificates; Other Agreements. 
  
 On the Transferor Tag-Along Sale Date, the Investor shall deliver a certificate or certificates for the Stockholder Shares to be sold by the Investor in connection with the Transferor Tag-Along Sale, duly endorsed for transfer
with signatures guaranteed, to the Transferee in the manner and at the address indicated in the Transferor Tag-Along Notice against delivery of the purchase price for such Stockholder Shares, and shall enter into any other agreements with the
Transferor and the Transferee reasonably requested in connection with the Transfer, in each case as a condition to the Investor’s right to participate in the Transferor Tag-Along Sale. 
  
 (e)    Termination upon Qualified Public Offering.

  
 This Section 7.5 shall terminate and be of no further force or effect
upon the consummation of the Qualified Public Offering. 
  
 7.6    First Option Rights. 
  
 (a)    From and after (i) the date hereof, with respect to the Stockholders other than the Investor and (ii) the date the Warrant expires unexercised or is otherwise terminated in accordance with the terms
thereof, with respect to the Investor, until, in each case, the Qualified Public Offering, if at any time a Stockholder proposes to sell or otherwise Transfer for value (except for any Transfer to a controlled affiliate thereof) all or any part of
the Stockholder Shares held by it, the Stockholder shall provide written notice (the “Sale Notice”) to the Company 

  

 26 

 
setting forth such proposal to sell or otherwise Transfer for value such Stockholder Shares, which Sale Notice shall set forth the proposed price and terms. Upon the
giving of such Sale Notice, the Company shall have the option (the “Purchase Option”) to purchase all, but not less than all, of such Stockholder Shares specified in the Sale Notice, on such proposed price and terms. The Company
shall have ten (10) days from receipt of the Sale Notice to provide written notice (the “Acceptance Notice”) to the Stockholder of its desire to exercise such Purchase Option. The Acceptance Notice given by the Company shall
constitute a binding agreement by the Company to purchase the Stockholder Shares specified in the Acceptance Notice on the proposed price and terms. 
  
 (b)    The closing of the purchase by the Company shall be held on a Business Day within forty-five (45) days after the giving of the relevant
Acceptance Notice, at the principal offices of the Company in the Cayman Islands, or at such other time and place as may be mutually agreed to by the Company and the Stockholder. 
  
 (c)    If no Acceptance Notice is delivered within the period specified above by the Company with respect to all
(but not less than all) of the Stockholder Shares included in the Sale Notice, the Stockholder shall have the right to consummate a sale or sales of the Stockholder Shares covered by the Sale Notice to a third party but only at a price and upon
terms no less favorable in any material respect to the Stockholder than those contained in the Sale Notice and only if such sale occurs on a date within forty-five (45) days of the expiration of the applicable ten-day period described above, subject
to extension for receipt of any required third-party consents or approvals; provided, however, that in the event the Stockholder has not so transferred such Stockholder Shares to a third party within such 45-day period (as extended),
then such Stockholder Shares thereafter shall continue to be subject to all of the restrictions contained in this Section. 
  
 (d)    Anything herein to the contrary notwithstanding, the provisions of this Section 7.6 shall not apply to: (i) any transfer of Stockholder
Shares by a Stockholder by gift or bequest or through inheritance to, or for the benefit of, any member or members of his or her immediate family (which shall include any spouse, and his or her spouse’s aunts, uncles, lineal ancestors or
descendants or siblings) or to a trust, partnership or limited liability company for the benefit of such members, provided such transferee agrees with the parties hereto to comply with the terms and conditions of Section 7.3 hereof; (ii) any
transfer of Stockholder Shares by a Stockholder to a trust not included in clause (i) in respect of which he or she serves as trustee, provided that the trust instrument governing said trust shall provide that such Stockholder, as trustee, shall
retain sole and exclusive control over the voting and disposition of said Stockholder Shares until the termination of this Agreement, provided such transferee agrees with the parties hereto to comply with the terms and conditions of Section 7.3
hereof; (iii) any transfer of Stockholder Shares to an affiliate and/or partner of such Stockholder which is a partnership and/or member of such Stockholder which is a limited liability company, provided such transferee agrees with the parties
hereto to comply with the terms and conditions of Section 7.3 hereof; (iv) in connection with the merger, consolidation, or sale of all of the outstanding stock of the Company; and (v) any repurchase of Stockholder Shares pursuant to stock
restriction agreements under which the Company has the option to repurchase such shares at cost (or a lesser amount) upon the occurrence of certain events, including termination of employment. 
  
 (e)    This Section 7.6 shall terminate and be of no further force
or effect upon the consummation of the Qualified Public Offering. 
  

 27 

 7.7    Drag Along Right. 
  
 If, at any time any after the IAC Control Date, Stockholders holding in excess of
fifty percent (50%) of the combined voting power of the Company (the “Selling Stockholders”) approve an agreement to sell or otherwise dispose of for value Stockholder Shares in one or more related transactions to a third person or
third persons unaffiliated with such Selling Stockholders (a “Third Party”) which will result in the Transfer of Stockholder Shares representing at least fifty percent (50%) of the combined voting power of the Company (such sale or
other disposition for value being referred to as a “Drag-Along Sale”), then, upon the demand of the Selling Stockholders, each of the other Stockholders (the “Required Sellers”) shall be required to sell to such
Third Party all, but not less than all of the Stockholder Shares, if any, then held by them, at the same price and on the same terms and conditions, including the time of payment and the form of consideration, as the Selling Stockholders have agreed
to with such Third Party, in accordance with this Section. 
  
 (a)    Drag-Along Notice. 
  
 Prior to making any Drag-Along Sale, the Selling Stockholders (or a representative thereof) shall promptly provide each Required Seller with written notice (the “Drag-Along Notice”) not more than thirty (30) or less than
fifteen (15) days prior to the proposed date of the Drag-Along Sale (the “Drag-Along Sale Date”). The Drag-Along Notice shall set forth: (i) the name and address of the Third Party; (ii) the proposed amount and form of consideration
to be paid per Stockholder Share and the terms and conditions of payment offered by the Third Party; (iii) the number of Stockholder Shares held of record as of the close of business on the date of the Drag-Along Sale Notice (the “Drag-Along
Notice Date”) by the Required Seller to whom the notice is sent; (iv) the aggregate number of Stockholder Shares held of record as of the Drag-Along Notice Date by the Selling Stockholders; (v) confirmation that the Selling Stockholders are
selling all or substantially all of the aggregate number of Stockholder Shares then held by them to the Third Party; and (vi) the Drag-Along Sale Date. 
  
 (b)    Delivery of Certificates; Other Agreements. 
  
 On the Drag-Along Sale Date, each Required Seller shall deliver a certificate or certificates for all of its
Stockholder Shares duly endorsed for transfer with signatures guaranteed, to such Third Party in the manner and at the address indicated in the Drag-Along Notice against delivery of the purchase price for such Required Seller’s Stockholder
Shares, and shall enter into any other agreements with the Selling Stockholders and the Third Party reasonably requested in connection with the Drag-Along Sale. 
  

(c)    Consideration. 
  
 The provisions of this Section shall apply regardless of the form of consideration received in the Drag-Along Sale. 
  
 (d)    Termination upon Qualified Public Offering.

  
 This Section 7.7 shall terminate and be of no further
force or effect upon the consummation of the Qualified Public Offering. 
  

 28 

 ARTICLE VIII 
  
 INVESTOR RIGHTS 
  
 8.1    Investor’s Approval Rights. 
  
 From and after the date hereof until the earlier to occur of (x) the date on which six (6) IAC Directors are on the Board of Directors and such IAC Directors
represent a majority of the Board of Directors or (y) the date on which the Warrant expired unexercised or was otherwise terminated, the Company shall not (by amendment, merger, consolidation or otherwise), without first obtaining the written
approval of the Investor, cause or permit either the Company, any direct or indirect subsidiary of the Company or any other affiliate of the Company (each such entity, including, without limitation, the Company, shall be referred to as an
“eLong Entity”) to: 
  
 (a)    except to the extent required to effect, or reasonably advisable in connection with, the Qualified Public Offering, amend, revise or repeal an eLong Entity’s Memorandum of Association or the Articles of
Association or comparable charter documents, or any part thereof; 
  
 (b)    change the authorized number of directors of any eLong Entity, or increase (or decrease) the size of the Company’s Board of Directors other than in accordance with the Investors Agreement;

  
 (c)    except to the extent
required to effect the Qualified Public Offering (provided that the Company comply with Section 5.1(a) hereof), issue, or obligate itself to issue, any security of any eLong Entity, including without limitation, any shares of capital stock of any
eLong Entity (including, without limitation, any options, warrants or other rights obligating or permitting such eLong Entity to issue shares of capital stock, or securities exchangeable for or convertible into shares of capital stock);
provided, however, that this Section 8.1(c) shall not restrict the Company from issuing shares of capital stock that it is obligated to issue pursuant to the conversion or exercise of convertible or exercisable securities that were
outstanding on the date hereof or that were issued after the date hereof with the prior written approval of the Investor; 
  
 (d)    create or authorize a new class or series of securities of any eLong Entity (including, without limitation, any equity,
debt (except as specifically permitted by subsection (j) below) or hybrid securities), or, except to the extent required to effect, or reasonably advisable in connection with, the Qualified Public Offering, increase or decrease (other than by
redemption or conversion) the authorized share capital of the ordinary shares or preferred shares of the Company or the applicable capital stock of any other eLong Entity; 
  
 (e)    redeem, purchase or otherwise acquire (or pay into or set aside for a sinking fund for such
purpose) any preferred shares or ordinary shares or the applicable capital stock of any other eLong Entity; provided, however, that this restriction shall not apply to the repurchase of ordinary shares from employees, officers,
directors, consultants or other persons performing services for the Company or any other eLong Entity pursuant to agreements entered into the by the Company prior to the date hereof or to the extent authorized under the eLong Option Plan under which
the Company has the option or obligation to repurchase such shares upon the occurrence of certain events, such as the termination of employment, or pursuant to a right of first refusal (“Permitted Payments”), and shall not prohibit
the transactions contemplated by the Transaction Agreement, Transfer Agreement (as defined in the Transaction Agreement) and the Warrant; 
  
 (f)    authorize or create any new subsidiary or affiliate of any eLong Entity (except for a wholly-owned subsidiary
incorporated or organized in a jurisdiction outside of the PRC and 

  

 29 

 
which is subject to the approval rights in this Article XIII) (it being understood that the creation of a branch office or department within a subsidiary or affiliate
shall not be deemed to constitute a creation of a new subsidiary or affiliate), or otherwise change in any manner the current corporate and operating structure of the eLong Entities (it being understood and agreed that a change in “operating
structure” shall not be deemed to include any changes to the internal operations of an eLong Entity, but shall be deemed to include any structural change to the way the business of the eLong Entities (taken as a whole) is conducted among the
eLong Entities and with non-eLong Entities (including, without limitation, changing which eLong Entity holds materials licenses and other material assets); 
  
 (g)    amend, revise, repeal or terminate any Structure Contract (as defined in the Transaction Agreement; 
  
 (h)    directly or indirectly, enter into any
transaction or series of related transactions of merger, amalgamation, reorganization, consolidation or combination, or consolidate, liquidate, windup or dissolve itself (or suffer any liquidation or dissolution), or convey, sell, lease, sublease,
transfer or otherwise dispose of, in one transaction or in a series of transactions of all or substantially all of its business, property or assets, whether now owned or hereafter acquired; 
  
 (i)    declare or make any payment of cash or
distribution of assets with respect to any shares of capital stock of any eLong Entity, by way of dividend or distribution, other than Permitted Payments, distributions pursuant to a Liquidation Event (as defined in the Amended Articles);

  
 (j)    incur at any time
indebtedness for borrowed money or enter into or guarantee any obligation, in either case, outside the ordinary course of business consistent with past practice (it being understood that the incurrence of debt in an aggregate amount in excess of
US$1,000,000 in a transaction or series or related transactions shall be deemed to be outside of the ordinary course of business); 
  
 (k)    sell, transfer, assign or otherwise dispose of any material asset(s) of any eLong Entity in a transaction or series of
related transactions (it being understood that any asset or series of related assets with an aggregate fair market value in excess of US$1,000,000 shall be deemed a “material asset(s)” for purposes of this provision); 
  
 (l)    purchase or otherwise acquire (including by
merger, consolidation or other business combinations) any material asset(s) or business(s) or make any capital expenditures in excess of US$1,000,000 in a transaction or series of related transactions (it being understood that any business or asset
or series of related assets for which an eLong Entity paid in excess of US$1,000,000 shall be deemed a “material asset(s) or business(es)” for purposes of this provision); or 
  
 (m)    change, directly or indirectly, in any material respect the ordinary and usual course and
nature of the conduct or operations of the business of the Company and the eLong Entities (taken as a whole), including, without limitation, by ceasing to carry on in any material respect the business conducted by the Company and the eLong Entities
(taken as a whole) as of May 27, 2004 or by engaging in any business not conducted on or undertaken by or reasonably related to the business conducted by the Company and the eLong Entities (taken as a whole) as of May 27, 2004. 
  
 8.2    Stock Option Grants. 
  
 (a)    In connection with the Qualified Public Offering, the
Company shall form a compensation committee (the “Compensation Committee”) which shall consist of three (3) 

  

 30 

 
members of the Board of Directors (who shall all be independent directors in accordance with the Nasdaq Stock Market Marketplace Rules), one of whom shall be one of
the IAC Directors; provided, however, that from and after the IAC Exercise Date, two (2) of the three (3) members of the Compensation Committee shall be IAC Directors. Notwithstanding Section 8.1(c) hereof, the Compensation Committee
shall have the authority to issue stock options to employees of any eLong Entity who are below the Vice President level from and after the 31st Business Day after the consummation of the Qualified Public Offering; provided, however, that if the Investor exercises its Warrant on or prior to such 31st Business Day, the Compensation Committee shall not issue, or authorize the issuance of, any stock options until such two (2) IAC Directors shall have become members of
the Compensation Committee. 
  
 (b)    Notwithstanding
anything to the contrary herein, in no event shall any stock options be issued to the persons listed in that certain Letter Agreement, of even date herewith, by and between the Company and the Investor prior to the first anniversary of the date
hereof without the prior approval of the Investor. 
  
 8.3    Cooperation Regarding IPO. 
  
 At the Company’s request the Investor shall in good faith cooperate with the Company in order to facilitate the Company’s plans to effect the Qualified Public Offering, and in connection with the foregoing the
Investor shall take such actions as may be reasonably requested from time to time by the Company and the Investor agrees that it shall not take any action which is intended to impair, delay or hamper such plans, provided, that (a) the Company comply
with the restriction in Section 5.1(a) hereof, and (b) only Ordinary Shares are offered in the Qualified Public Offering. In connection with the Qualified Public Offering, the Investor shall have the reasonable right of approval with regard to how
it or its affiliates are to be described in the Registration Statement relating thereto. 
  
 ARTICLE IX 
  
 TERMINATION OF PREVIOUS
SHAREHOLDER AGREEMENTS; NOTIFICATION 
 OF INDEMNIFICATION CLAIMS 
  
 9.1    Termination of Agreements and Provisions Thereof. 
  
 Each of the parties to the respective Previous Shareholder Agreements hereby agree
that each of such agreements shall terminate and be of no further force or effect, effective simultaneously with the execution and delivery of this Agreement by each of the parties hereto. Each of the parties to the Series A Preferred Purchase
Agreement hereby agree that, (a) simultaneously with the execution and delivery of this Agreement by each of the parties hereto, all of the covenants in Section 6 of the Series A Preferred Purchase Agreement shall terminate and be of no further
force or effect and (b) the indemnification obligations of the Company under the Series A Preferred Purchase Agreement shall terminate and be of no further force or effect on March 31, 2006 with respect to matters as to which no claim notice has
been given prior to that date. 
  
 9.2    Notification of
Indemnification Claims. 
  
 If any Series A Holder (or any
representative thereof) pursues an indemnification claim against the Company (or notifies the Company of a potential indemnification claim), such Series A Holder shall promptly provide the Investor with written notice of such claim, which notice
shall include a reasonably detailed description of the claim. If the Investor pursues an indemnification claim against the Company (or notifies the Company of a potential 

  

 31 

 
indemnification claim), the Investor shall promptly provide Tiger (or if Tiger is no longer a Series A Holder, the largest holder of Series A Preferred Shares at such
time as determined by the Secretary of the Company) with written notice of such claim, which notice shall include a reasonably detailed description of the claim. If the Company receives any notice or other evidence that any person is or will pursue
an indemnification claim against it, the Company shall promptly provide the Investor and the Series A Holders with written notice of such claim, which notice shall include a reasonably detailed description of the claim. 
  
 ARTICLE X 
  
 MISCELLANEOUS 
  
 10.1    Series A Right to Information for Tax Filings 
  
 (a)    No later than two (2) months following the end of each Company taxable year, the Company shall provide the
following information to the Series A Holders: (i) the Company’s capitalization table as of the end of the last day of such taxable year and (ii) a report regarding the Company’s status as a “controlled foreign corporation” (a
“CFC”) under the Internal Revenue Code of 1986, as amended (including any successor thereto, the “Code”). In addition, the Company shall provide the Series A Holders with access to such other Company information as may be
required by such Series A Holders to determine the Company’s status as a CFC or a “foreign personal holding company” (a “FPHC”) as defined in Section 552 of the Code, to determine whether each such Series A Holder is
required to report its pro rata portion of the Company’s “Subpart F income” (as defined in the Code) on its United States federal income tax return, or to allow such Series A Holders to otherwise comply with applicable United States
federal income tax laws. 
  
 (b)    In connection with a
“Qualified Electing Fund” election made by a Series A Holder pursuant to Section 1295 of the Code (or any successor thereto), the Company shall provide annual financial information to the Series A Holders in the an Annual Information
Statement (substantially in the form attached hereto as Exhibit A) and shall provide the Series A Holders with access to such other Company information as may be required for purposes of filing United States federal income tax returns in
connection with such Qualified Electing Fund election. 
  
 (c)    Except to the extent that the Series A Holders agree otherwise, the Company shall take such actions, including making an election to be treated as a corporation or refraining from making an election to be treated
as a partnership, as may be required to ensure that at all times the Company is treated as a corporation for United States federal income tax purposes. 
  
 (d)    This Section 10.1 shall terminate and be of no further force or effect on the first date that less than 25% of the Series A Preferred
Shares originally issued on August 29, 2003 remain outstanding. 
  
 10.2    No Derogation of Rights. 
  
 The granting of any rights hereunder to the Stockholders, and the exercise thereof, shall in no way detract from or restrict the rights otherwise possessed by the Stockholders as holders of securities of the Company.

  
 10.3    Manner of Voting. 
  
 The voting of Stockholder Shares pursuant to this Agreement may be effected in person,
by proxy, by written consent, or in any other manner permitted by the Amended Articles and applicable law. 
  

 32 

 10.4    Public Announcements. 
  
 The Company shall not make any press release or other public announcement concerning
the transactions contemplated by this Agreement without the prior written consent of the Investor (which shall not be unreasonably withheld or delayed) except as and to the extent that the Company shall be obligated to make any such disclosure under
applicable law and then only after reasonable consultation with the Investor regarding the basis of such obligation and the content of such press release or other public announcement. The Investor shall be entitled to make any such press release or
other announcement without the consent of the Company provided that such release or announcement does not contain any misrepresentation or any misleading information pertaining to the Company or the transactions contemplated by this Agreement.

  
 10.5    Assignment. 
  
 Except as set forth in Article VII hereof, no assignment of this Agreement may be made
by any party at any time, whether or not by operation of law, without the other parties’ prior written consent; provided, however, the Investor may assign any of its rights hereunder to an affiliate of the Investor to whom the Series B
Preferred Shares or Warrant are transferred without the other parties’ consent provided that such affiliate or other party expressly assumes in writing all of the Investor’s obligations hereunder as if an original signatory hereto.

  
 10.6    Binding Effect. 
  
 This Agreement shall be binding upon and shall enure to the benefit of and be
enforceable by the parties hereto and their respective successors and permitted assigns. 
  
 10.7    Time. 
  
 Time shall be of the essence of this Agreement in each and every matter or thing herein provided. 
  
 10.8    Expenses. 
  
 If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any
other relief to which such party may be entitled. 
  
 10.9    Notices. 
  
 (a)    Each party shall give prompt notice to the other of any breach of its obligations under this Agreement, provided that no such notification shall affect the covenants or agreements of the parties under this
Agreement. 
  
 (b)    All notices and other
communications provided for or permitted hereunder shall be made by hand-delivery, first-class mail, telex, telecopier, or overnight air courier guaranteeing next day delivery: 
  
 (i)    if to the Company, to 
  
 eLong, Inc. 
 Block B, XingKe Plaza 
 10 Jiuxianqiao Zhonglu 
 Chaoyang District, Beijing 100016 
 People’s Republic of China 
 Telecopy No.: (8610) 64386830 
 Attention: Chief Executive Officer 
  

 33 

 With a copy to: 
  
 Goulston & Storrs, A Professional Corporation 
 400 Atlantic Avenue 
 Boston, MA
02110 
 Telecopy No.: (617) 574-4112 
 Attention: Timothy B. Bancroft, Esq. 
  
 (ii)    if to the Investor, to 
  
 IACT Asia Pacific Limited 
 c/o InterActiveCorp. 
 152 West 57th Street 
 42nd Floor

 New York, New York 10019 
 Telecopy No.: (212) 314-7497 
 Attention: General Counsel 
  
 With a copy to: 
  
 Wachtell, Lipton, Rosen & Katz 
 51 West 52nd Street 
 New York, New York 10019 
 Telecopy No.: (212) 403-2000 
 Attention: Andrew J. Nussbaum, Esq. 
  
 (iii)    if to the Stockholders other than Investor, to the addresses listed on Schedule 10.9 hereto. 
  
 (c)    All such notices and communications shall be deemed to have
been duly given: at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed (so long as a fax copy is sent and receipt acknowledged within two Business Days after
mailing); when answered back if telexed; when receipt acknowledged, if telecopied; and the Business Day guaranteed by the courier, if sent by air courier guaranteeing timely delivery. The parties may change the addresses to which notices are to be
given by giving five days’ prior written notice of such change in accordance herewith. 
  
 10.10    Governing Law; Arbitration. 
  
 (a)    This Agreement shall be governed by and construed under the laws of the State of Delaware as applied to agreements among Delaware residents entered into and to be performed entirely within Delaware.

  
 (b)    Notwithstanding subsection (c) below, at the
option of the Investor, each of the parties hereto agrees for the benefit of the Investor that any State or Federal court sitting in Delaware shall have exclusive jurisdiction to settle any disputes (including claims for set-off and counterclaims)
and enforce any rights which may arise in connection with the validity, effect, interpretation or performance of, or the legal relationships established by, this Agreement or otherwise arising in connection with this Agreement. Each party hereto
consents to venue in the Delaware Courts and irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of any action therein. Each party hereto agrees that the summons and complaint or any
other process in any action may be served by notice given in accordance with Section 10.9, or as otherwise permitted by law. Each party hereto irrevocably waives the right to trial by jury. 
  
 (c)    Subject to the option in favor of the Investor set out in
subsection (b) below, any controversy or claim arising out of or relating to this Agreement shall be determined by arbitration in accordance with the International Arbitration Rules of the American Arbitration 

  

 34 

 
Association. The tribunal shall consist of three arbitrators. The seat of the arbitration shall be New York. The language of the arbitration shall be English. The
parties hereto agree that the tribunal constituted under this clause shall have the power to grant the relief of specific performance in appropriate circumstances, and further agree, for the avoidance of doubt, that any competent court of its
jurisdiction (including the courts in the People’s Republic of China (PRC)) may enforce an order of the tribunal for specific performance. By agreeing to arbitration pursuant to this clause, the parties hereto waive irrevocably their right to
any form of appeal, review or recourse to any state court or other judicial authority, in as far as such waiver may validly be made, save that the parties do not intend to deprive any competent court of its jurisdiction (including the PRC courts) to
issue a pre-arbitral injunction, pre- arbitral attachment or other order in aid of the arbitration proceedings or the enforcement of any award. 
  
 10.11    Injunctive Relief. 
  
 The parties agree that the remedy at law for any breach of the provisions of this Agreement will be inadequate and that the party that is not in breach, on any
application to a court, shall be entitled, without the need to post any bond or provide any indemnity, to temporary and permanent injunctive relief, specific performance and any other equitable relief against the party or parties in breach of the
provisions of this Agreement. 
  
 10.12    Currency. 
  
 Except as expressly indicated otherwise, all sums of money referred to in this Agreement are expressed and shall be payable in United States dollars. 
  

10.13    Entire Agreement. 
  
 This Agreement, together with the Transaction Agreement, and the documents referred to herein or therein, constitute the entire agreement among the parties with
respect to subject matter set forth herein. 
  
 10.14    Further Assurances. 
  
 Each party shall, from time to time, and at all times hereafter, at the request of any other party hereto, but without further consideration, do all such further acts and execute and deliver all such further documents and
instruments as shall be reasonably required in order to fully perform and carry out the terms and intent hereof. 
  
 10.15    Waivers and Modifications. 
  
 Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either
retroactively or prospectively) only with the written consent of the Company and the holders of a majority of the Registrable Securities; provided, however, that (i) for so long as the Investor owns at least a majority of the Registrable Securities
purchased by it under the Transaction Agreement, no amendment to, or waiver of, this Agreement shall be effective without the written consent of the Investor, (ii) no amendment to, or waiver of, this Agreement that alters or changes the rights,
preferences or privileges of the Series A Holders or the Common Holders so as to affect adversely such holders, shall be effective without the written consent of Stockholders holding at least a majority of the then outstanding Series A Preferred
Shares or Ordinary Shares, as the case may be and (iii) no amendment to, or waiver of, any Stockholder’s right to designate directors pursuant to Article II shall be effective without the written consent of such Stockholder. 
  
 10.16    Counterparts. 
  
 This Agreement may be executed in two (2) or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument. 
  

 35 

 10.17    Date For Any Action. 
  
 In the event that any date on which any action is required to be taken under this
Agreement by either of the parties hereto is not a Business Day, such actions shall be required to be taken on the next succeeding day which is a Business Day. 
  

10.18     Construction. 
  
 In this Agreement: 
  
 (a)    words denoting the singular include the plural and vice versa and words denoting any gender include all genders;

  
 (b)    the words
“including”, “include”, and “includes” shall mean “including without limitation”, “include, without limitation” and “includes, without limitation”, respectively; 
  
 (c)    any reference to a statute shall mean the
statute in force as at the date hereof and any regulation in force thereunder, unless otherwise expressly provided; and 
  
 (d)    The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing
or interpreting this Agreement. 
  
 10.19    Interpretation. 
  
 When a reference is made in this Agreement to a Section or Schedule, such reference shall be to a Section or Schedule to this Agreement unless otherwise indicated. The table of contents and headings contained in this agreement
are for reference purposes only and shall not affect in any way the meaning, construction or interpretation of this Agreement. 
  
 10.20    Severability. 
  
 If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement and the balance
of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms. 
  
 10.21    Effectiveness. 
  
 This Agreement shall become effective (the “Effective Date”) upon the Closing (as defined in the Transaction Agreement). This Agreement shall terminate if
the Transaction Agreement is terminated in accordance with the terms thereof, and each party’s signature hereto is irrevocable unless and until this Agreement is so terminated. All requisite corporate, partnership and limited liability company
action on the part of each party hereto, and all shareholder and member action on the part of each party hereto that is a corporation or limited liability company, necessary for the authorization, execution and delivery of this Agreement and the
performance by such party of its obligations hereunder, has been taken, and this Agreement constitutes the valid and legally binding obligations of each party hereto, enforceable in accordance with its terms except (i) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief
or other equitable remedies. 
  
 10.22    Not a
Partnership 
  
 Nothing in this Agreement shall constitute
or be deemed to constitute a partnership or quasi-partnership between the parties hereto. 
  

 36 

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

			
	 eLong, INC.

		
	 By:
	 	 /s/

	 Name:

	 Title:

	
	 IACT ASIA PACIFIC LIMITED

		
	 By:
	 	 /s/

	 Name:

	 Title:

			
	
	 SERIES A HOLDERS:

	
	 Tiger Technology Private Investment
 Partners, L.P.

		
	 By:
	 	 Tiger Technology PIP Performance,
 L.L.C., its General Partner

		
	 By:
	 	 /s/

	 Name:

	 Title:

			
	
	 Tiger Technology II, L.P.

		
	 By:
	 	 Tiger Technology Performance, L.L.C.,
 its General Partner

		
	 By:
	 	 /s/

	 Name:

	 Title:

			
	
	 Blue Ridge Limited Partnership

		
	 By:
	 	 JAG Holdings LLC, its General Partner

		
	 By:
	 	 /s/

	 Name: Richard S. Bello

	 Title: Managing Director

			
	
	 Blue Ridge Offshore Master Limited
 Partnership

		
	 By:
	 	 JAG Offshore Holdings, its General
 Partner

		
	 By:
	 	 /s/

	 Name: Richard S. Bello

	 Title: Managing Director

  

			
	 RMG Holdings, LLC

		
	 By:
	 	 /s/

	 Name: Richard M. Gerson

	 Title: Managing Director

	
	

	 Derek Palaschuk

	
	 COMMON HOLDERS:

	
	 Billable Development, Ltd.

		
	 By:
	 	 /s/

	 Name:

	 Title:

	
	 /s/

	 Lawrence Auriana

	
	 /s/

	 Peter Lerner

	
	 /s/

	 Ira S. Nordlicht and Helen S. Scott JTWROS
  

			
	 Purple Mountain Holding, Ltd.

		
	 By:
	 	 /s/

	 Name:

	 Title:

	
	 Time Intelligent Finance Limited

		
	 By:
	 	 /s/

	 Name:

	 Title:

			
	 Mind Trade Assets Limited

		
	 By:
	 	 /s/

	 Name:

	 Title:

			
	
	 Gold Partner Consultants Limited

		
	 By:
	 	 /s/

	 Name:

	 Title:

	
	 /s/

 Zhu Saiying

	
	 /s/

 Wang Gui Ying

	
	 /s/

 Sun Li Ming

	
	 /s/

 Wang Yi Jie

	
	 /s/

 Pan Dai

	
	 /s/

 Bo Liu

	
	 /s/

 Michael Rapp

	
	 /s/

 Philip Wagenheim

	
	 /s/

 Wayne SturmanWarrant Agreement dated August 22, 2003

 Exhibit 4.7 
  
 WARRANT AGREEMENT 
  
 Warrant Agreement dated as of August 22, 2003, by and between eLong, Inc., a British Virgin Islands international business company (“eLong” or the
“Company”), and Broadband Capital Management LLC, a New York limited liability company (“Holder”). 
  
 RECITALS 
  
 WHEREAS, effective May 5, 2002, eLong granted to Holder warrants to purchase Common Shares of the Company; and 
  
 WHEREAS, pursuant to the terms of that certain letter agreement dated August 22, 2003, eLong and Holder have agreed, inter alia, to make certain revisions to the
operative terms of such warrants and have agreed to enter into this Warrant Agreement in order to modify the original May 5, 2002 grant pursuant to the August 22, 2003 letter agreement; 
  
 NOW THEREFORE, in consideration of the premises and the mutual promises and agreements of the parties set forth herein, the parties
hereto agree as follows: 
  
 1.    Certain
Definitions.    As used herein the following terms, unless the context otherwise requires, have the following respective meanings: 
  
 (a)    “Affiliate”    means as to any entity (i) any other person or entity that directly
or indirectly controls, is controlled by, or is under common control with such specified person or entity and (ii) any officer, director, general partner, manager or managing member of such entity. “Control” means the power to direct or
cause the direction of the management or policies of an entity whether, through the ownership of voting securities, by agreement or otherwise. 
  
 (b)    “Common Shares”    means eLong’s common shares, par value US $.01 per share.

  
 (c)    “Company”    means eLong and any other company that shall succeed to or assume the obligations of eLong hereunder. 
  
 (d)    “Other
Securities”    refers to any stock and other securities of the Company (other than Common Shares) or any securities of any other person (corporate or otherwise) which the Holder shall, at any time, be entitled to
receive, or shall have received, upon the exercise of the Warrant, in lieu of or in addition to Common Shares, or which at any time shall be issuable or shall have been issued in exchange for or in replacement of Common Shares or Other Securities
pursuant to this Agreement or otherwise. 
  
 (e)    “Securities Act”    means the Securities Act of 1933, as the same shall be in effect at the time. 
  
 (f)    “Warrant Expiration Date”    means 5:00 p.m. New York
City time on May 5, 2012. 
  
 (g)    “Warrant Shares”    means shares of Common Shares or Other Securities that Holder shall be entitled to receive upon the exercise of the Warrants pursuant to this Agreement.

  
 2.    Issuance of
Warrant.    Simultaneous with the execution of this Agreement, eLong will issue to Holder a Warrant Certificate (the “Warrant”) evidencing the right of Holder to purchase an aggregate of 500,000 Common Shares
at an exercise price of US $0.75 per share (the “Exercise Price”), subject to adjustment, vesting and exercise restrictions as provided herein. The Warrant Certificate and all replacement Certificates shall be substantially in the
form attached hereto as Exhibit 1. 
  

 1 

 3.    Vesting and Exercise of Warrant. 
  
 (a)    Vesting.    The Warrant and
Holder’s rights under this Agreement shall vest in full and become immediately exercisable as of the date hereof. If not earlier exercised, the Warrant shall expire on the Warrant Expiration Date. 
  
 (b)    Exercise in Full.    Subject to
the provisions hereof, the Warrant may be exercised in full by Holder by surrender of the Warrant, with the form of subscription attached hereto as Exhibit 2 (the “Subscription Form”) duly executed by Holder, to the Company at
its principal office in Beijing, P. R. China, accompanied by payment in the amount obtained by multiplying the number of Warrant Shares by the Exercise Price (subject to any applicable adjustments provided for herein). Payment may be made either (i)
in cash, (ii) by wire transfer of immediately available funds to an account designated by the Company, (iii) by certified or official bank check payable to the order of the Company, (iv) by the assignment of the proceeds of a sale of some or all of
the Warrant Shares being acquired upon the exercise of the Warrant in a customary cashless warrant exercise transaction, or (v) by any combination of the methods of payment provided in clauses (i) through (iv). 
  
 (c)    Partial Exercise.    Subject to
the provisions hereof, the Warrant may be exercised in part by surrender of the Warrant in the manner and at the place provided in Section 3(b) hereof, except that the amount payable by Holder upon any partial exercise shall be the amount obtained
by multiplying (i) the number of Warrant Shares designated by Holder in the Subscription Form by (ii) the Exercise Price, subject to any applicable adjustment provided for herein. Upon any such partial exercise, the Company, at its expense, will
promptly issue and deliver to Holder a new Warrant, in the name of Holder, in an amount equal to the remainder of (i) the original number of Common Shares indicated on the face of the surrendered Warrant minus (ii) the number of Warrant Shares
issued upon such partial exercise as specified in the Subscription Form. The Subscription Form delivered by the Holder shall not take into account any adjustments provided for herein, which will be calculated by the Company upon receipt of the
Subscription Form. 
  
 (d)    Delivery of Stock
Certificates, etc., on Exercise.    As soon as practicable after the exercise of the Warrant in full or in part, and in any event within (10) days thereafter, the Company at its expense (including the payment by it of any
applicable issue taxes) will cause to be issued in the name of and delivered to Holder, a certificate or certificates for the number of fully paid and non-assessable Warrant Shares to which Holder shall be entitled upon such exercise, together with
any other stock or Other Securities and property (including cash, where applicable) to which such holder is entitled upon such exercise pursuant this Agreement. In the event Holder is entitled to receive any fractional share, such fractional share
shall be rounded up to the nearest whole number. 
  
 4.    Adjustment for Dividends in Other Stock, Property, etc.; Reclassification, etc. 
  
 (a)    If the Company shall subdivide its outstanding shares of Common Shares into a greater number of shares, or declare and pay a dividend on
its Common Shares payable in additional shares of its Common Shares, the Exercise Price as then in effect shall be proportionately reduced, and the number of Warrant Shares then subject to exercise under the Warrant (and not previously exercised),
shall be proportionately increased. For example, if the Company implements a 2:1 stock split, the number of Warrant Shares will be increased to 1,000,000. 
  
 (b)    If the Company shall combine its outstanding shares of the Common Shares into a smaller number of shares, the Exercise Price, as then in
effect, shall be proportionately 

  

 2 

 
increased, and the number of Warrant Shares then subject to exercise under the Warrant (and not previously exercised), shall be proportionately reduced. For example,
if the Company implements a 1:2 reverse stock split, the number of Warrant Shares will be reduced to 250,000. 
  
 5.    Reorganization, Consolidation, Merger, etc. 
  
 (a)    General.    In case of any reclassification or change of the outstanding shares
of Common Shares other than a change in par value to no par value, or from no par value to par value or as a result of a subdivision or combination) or in the case of any consolidation of the Company with, or merger of the Company into, another
corporation (other than a consolidation or merger in which the Company is the surviving corporation and which does not result in any reclassification or change of the outstanding shares of Common Shares), or in the case of a sale or conveyance to
another corporation of all or substantially all of the property or assets of the Company, the Holder shall thereafter have the right to purchase the kind and number of shares of stock and Other Securities and property receivable upon such
reclassification, change, consolidation, merger, sale or conveyance as if the Holder was the owner of the Common Shares underlying the Warrant immediately prior to any such events at a price equal to the product of the (x) number of shares issuable
upon exercise of the Warrant and (y) Exercise Price in effect immediately prior to the record date for such reclassification, change, consolidation, merger, sale or conveyance as if such Registered Holders had exercised the Warrants, subject to
further adjustment as provided for herein. 
  
 (b)    Warrant to Continue in Full Force and Effect.    Upon any reorganization, consolidation, merger or transfer (and any dissolution following any transfer) as contemplated in Section 5(a)
hereof, the Warrant shall continue in full force and effect and the terms hereof shall be applicable to the shares of stock and Other Securities and property receivable upon the exercise of the Warrant after the consummation of such reorganization,
consolidation, merger, transfer or dissolution, as the case may be, and shall be binding upon the issuer of any such stock or Other Securities, including, in the case of any such transfer, the person acquiring all or substantially all of the
properties or assets of the Company, whether or not such person shall have expressly assumed the Company’s obligations under the Warrant. 
  
 6.    Registration Rights.    The Company hereby grants to Holder and to all persons to whom Holder may assign all or
any part of the Warrant or the Warrant Shares the rights set forth in Schedule A attached hereto and made a part of this Warrant Agreement. 
  
 7.    Further Assurances.    The Company will take all such action as may be necessary or appropriate in order that
the Company may validly and legally issue fully paid and non- assessable shares of Common Shares (or Other Securities) upon the exercise of the Warrant. 
  
 8.    Certificate as to Adjustments.    In each case of any adjustment or readjustment in the shares of Common Shares
(or Other Securities) issuable upon the exercise of the Warrant, the Company will compute such adjustment or readjustment in accordance with the terms of the Warrant and prepare a certificate setting forth such adjustment or readjustment and showing
in detail the facts upon which such adjustment or readjustment is based. The Company will forthwith mail a copy of such certificate to Holder. 
  
 9.    Holder’s Representations and Covenants.    Holder represents and warrants to the Company as follows:

  
 (a)    Holder is making these
representations in connection with the issuance to it of the Warrant. Holder acknowledges that no representations or warranties have been made to it 

  

 3 

 
by the Company or anyone acting on its behalf, with respect to the business of the Company, the financial condition of the Company and/or the economic, tax, or any
other aspects or consequences of an investment in the Company, except as set forth in writing. 
  
 (b)    Holder has substantial experience in evaluating and investing in restricted securities so that it is capable of
evaluating the merits and risks of an investment in the Company. Holder has been represented by independent legal counsel in this transaction. 
  
 (c)    Holder is an “accredited investor,” as such term is defined in Regulation D promulgated under the Securities
Act. Holder can bear the economic risks of an investment in the Company for an indefinite period of time. Holder has adequate means of providing for its current needs and possible contingencies and has no present or contemplated need for liquidity
of the Warrant or the Warrant Shares to satisfy any existing or contemplated undertaking, need or indebtedness. 
  
 (d)    Holder has been represented by such advisors, each of whom has been personally selected by Holder, as Holder has found
necessary to consult concerning the transaction contemplated herein, including but not limited to the issuance of the Warrant, and such representation has included an examination of applicable documents and an analysis of all financial, corporate
and securities law aspects of this transaction. 
  
 (e)    With respect to any tax aspects related to the issuance and exercise of the Warrant, Holder is relying solely upon the advice of its own tax advisors, and/or upon its own knowledge with respect thereto.

  
 (f)    The Company has made
available to Holder or its counsel and advisors, prior to the date hereof, the opportunity to ask questions of, and to receive answers from, its officers, directors, consultants, employees or their authorized representatives concerning the Company
and access to obtain any information, documents, financial statements, records and books (i) relative to the Company, its business and an investment in the Warrant and the Warrant Shares and (ii) necessary to verify the accuracy of any information,
documents, financial statements, records and books furnished. All materials and information requested by either Holder, Holder’s counsel, advisors, or others representing Holder, including any information requested to verify any information
furnished, have been made available and examined. 
  
 (g)    Holder understands that the Warrant and the Warrant Shares have not been registered under the Securities Act, nor pursuant to the provisions of the securities laws or other laws of any other applicable
jurisdictions, in reliance on exemptions set forth in Sections 3 and/or 4 of the Securities Act, Regulation D promulgated under the Securities Act and the laws and regulations of such jurisdictions. Holder is fully aware that the Warrant is to be
issued in reliance upon such exemptions based upon Holder’s representations, warranties, and agreements set forth herein. Holder is fully aware of the restrictions on sale, transferability and assignment of the Warrant and the Warrant Shares
and that Holder must bear the economic risk of its investment in the Warrant and the Warrant Shares for an indefinite period of time. Holder acknowledges that (i) there may not be any public market for the Warrant or the Warrant Shares issuable upon
the exercise of the Warrant in the foreseeable future, (ii) Rule 144 promulgated under the Securities Act is not presently available with respect to sales of any securities of the Company, and such Rule is not anticipated to be available with
respect to sales of any securities of the Company in the foreseeable future; (iii) when and if the Warrant and Warrant Shares may be disposed of without registration in reliance upon Rule 144, such disposition can be made only in limited amounts and
in accordance with the terms and conditions of such Rule; and (iv) if the exemption afforded by Rule 144 is not available, public sale without registration will require the availability of an exemption under the Securities Act. Holder therefore
agrees that it will 

  

 4 

 
not offer or sell the Warrant or any securities issuable upon the exercise of the Warrant unless and until the Warrant and/or such securities are subsequently
registered under the Securities Act and applicable state securities laws, or unless exemptions from such registration requirements are available. Holder acknowledges and agrees that a notation shall be made in the appropriate records of the Company
indicating that the Warrant, and any securities to be issued upon the exercise of the Warrant, are subject to restrictions on transfer and, if the Company should in the future engage the services of a stock transfer agent, appropriate stop-transfer
instructions will be issued to such transfer agent with respect to the Warrant and the Warrant Shares. 
  
 (h)    Holder is acquiring the Warrant and the Warrant Shares for its own account and not for the account of others. Holder is
acquiring the Warrant and the Warrant Shares for investment purposes only and not with a view to or for the transfer, assignment, resale or distribution thereof, in whole or in part, and Holder is not participating directly or indirectly in a
distribution or transfer of the Warrant or the Warrant Shares, or in the underwriting of any such distribution or transfer of the Warrant and the Warrant Shares. Holder has no present plans to enter into any such contract, undertaking, agreement or
arrangement. Holder agrees that it will not, directly or indirectly, offer, transfer, sell, pledge, hypothecate or otherwise dispose of the Warrant or the Warrant Shares (or solicit any offers to buy, purchase or other acquire or take a pledge of
the Warrant or the Warrant Shares) except in compliance with (i) the Securities Act and the rules and regulations thereunder and (ii) any other applicable laws, rules and regulations. 
  
 (i)    Holder is aware that the Warrant and the Warrant Shares represent a speculative investment
involving a high degree of risk. Holder understands and is able to bear the risks and consequences of the following: (a) the risks involved in investing in the Company, including the speculative nature of an investment in the Company’s
securities; (b) the financial hazards involved in an investment in the Company’s securities, including the risk of losing Holder’s entire investment; (c) the lack of liquidity of the Warrant and the Warrant Shares; (d) the restrictions on
transferability of the Warrant and the Warrant Shares; and (e) the tax consequences of an investment in the Company’s securities. 
  
 (j)    Holder is a New York limited liability company. 
  
 (k)    Holder understands and is fully aware that no federal or state agency has made any finding
or determination as to the fairness of investment in, nor any recommendation or endorsement of, the Warrant or the Warrant Shares. 
  
 (l)    The execution and delivery of this Agreement by Holder have been duly and validly authorized and approved by all
necessary action, and no other proceedings on the part of such Holder are necessary to authorize or approve this Agreement. This Agreement has been duly executed and delivered by Holder and is enforceable against Holder in accordance with its terms,
except insofar as enforceability may be limited by bankruptcy, insolvency, moratorium and other similar laws affecting the rights of creditors generally, and by general principles of equity, including the exercise of judicial discretion in the
enforcement of equitable remedies. 
  
 10.    eLong’s Representations and Warranties.    eLong represents and warrants to Holder as follows: 
  
 (a)    eLong is an international business company duly organized, validly existing and in good
standing under the laws of the British Virgin Islands, has all requisite power and authority to own or lease and operate its properties and to carry on its business as now conducted; and is duly licensed or qualified to do business as a foreign
corporation in each jurisdiction in which it owns or leases property or in which the conduct of its business requires it to be so licensed or qualified. 
  

 5 

 (b)    eLong has all requisite power and authority to enter into and perform
its obligations under this Agreement, to issue the Warrant and the Warrant Shares, and to carry out the transactions contemplated hereby. 
  
 (c)    The execution and delivery of this Agreement by eLong have been duly and validly authorized and approved by all necessary
action, and no other proceedings on the part of eLong are necessary to authorize or approve this Agreement. This agreement has been duly executed and delivered by eLong and is enforceable against eLong in accordance with its terms, except insofar as
enforceability may be limited by bankruptcy, insolvency, moratorium and other similar laws affecting the rights of creditors generally, and by general principles of equity, including the exercise of judicial discretion in the enforcement of
equitable remedies. 
  
 11.    Notices of Record
Date, etc.    In the event of 
  
 (a)    any taking by the Company of a record of the holders of Common Shares for the purpose of determining the holders thereof who are entitled to receive any dividend (other than a cash dividend payable out of earned
surplus of the Company) or other distribution, or any right to subscribe for, purchase or otherwise acquire any shares of stock of any class or any Other Securities or property, or to receive any other right, or 
  
 (b)    any capital reorganization of the Company,
any reclassification or recapitalization of the capital stock of the Company or any transfer of all or substantially all the assets of the Company to or consolidation or merger of the Company with or into any other person or entity, or 

 
 (c)    any voluntary or involuntary
dissolution, liquidation or winding-up of the Company, then and in each such event the Company will mail or cause to be mailed to Holder a notice specifying (i) the date on which any such record is to be taken for the purpose of such
dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, and (ii) the date on which any such reorganization, reclassification, recapitalization, transfer, consolidation, merger, dissolution,
liquidation or winding-up is to take place, and the time, if any, as of which the holder of record of Common Shares (or Other Securities) shall be entitled to exchange their shares of Common Shares (or Other Securities) for securities or other
property deliverable upon such reorganization, reclassification, recapitalization, transfer, consolidation, merger, dissolution, liquidation or winding-up. Such notice shall be mailed at least ten (10) days prior to the date therein specified.

  
 12.    Reservation of Stock, etc. Issuable on
Exercise of Warrants.    The Company will at all times reserve and keep available, solely for issuance and delivery upon the exercise of the Warrants, all shares of Common Shares (or Other Securities) from time to time
issuable upon the exercise of the Warrants. 
  
 13.    Exchange of Warrants.    Subject to the provisions of this Agreement, upon surrender for exchange of the Warrant, properly endorsed, to the Company, the Company, at its own expense, will
issue and deliver to or upon the order of Holder a new warrant or warrants of like tenor, in the name of Holder (upon payment by Holder of any applicable transfer taxes) in the aggregate on the face or faces thereof for the number of shares of
Common Shares called for on the face of the Warrant. 
  
 14.    Replacement of Warrants.    Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction of mutilation of the Warrant and, in the case of any such

  

 6 

 
loss, theft or destruction, upon delivery of an indemnity agreement satisfactory in form and substance to the Company, in its sole discretion, or, in the case of any
such mutilation, upon surrender and cancellation of the Warrant, the Company at its expense will execute and deliver, in lieu thereof, a new Warrant of like tenor. 
  
 15.    Warrant Agent.    The Company may, by written notice to Holder, appoint an agent
for the purpose of issuing Warrant Shares upon the exercise of the Warrant, exchange of the Warrant or replacement of the Warrant, or any of the foregoing, and thereafter any such issuance, exchange or replacement, as the case may be, shall be made
at such office by such agent. 
  
 16.    Transfer. 
  
 (a)    In General.    Subject to the provisions of this Agreement, all rights under this Agreement, the Warrant and the Warrant Shares are transferable on the books of the Company upon
surrender of the Warrant Certificate or certificates for the Warrant Shares, as the case may be, at the offices of the Company. Holder agrees that with respect to any transfer of the Warrant or Warrant Shares (i) such transfer must comply with all
applicable laws, including federal and state securities laws, and the transferee must be an “accredited investor” and (ii) prior to implementing any transfer, the Company will receive (a) from Holder, an Assignment in the form attached
hereto as Exhibit 3 and a Transferor Letter in the form attached hereto as Exhibit 4, (b) from the proposed transferee, an Accredited Investor Letter, including an agreement to be bound by the terms of this Agreement, in the form attached hereto as
Exhibit 5, and (c) a signed opinion of counsel to Holder in form and substance satisfactory to the Company pertaining to the compliance of such transfer with the Securities Act and other applicable securities laws. 
  
 (b)    Restriction on Transfer to
Competitors.    Notwithstanding anything to the contrary set forth herein, the Warrant and any and all securities that may be issued upon the exercise of the Warrant may not be transferred to any individual, corporation,
partnership, limited liability company, trust or other entity engaged in a business that is competitive with the business of the Company. Any transfer of the Warrant or the securities issuable upon the exercise of the Warrant which does not comply
with the foregoing shall be deemed null and void. The restrictions on transferability set forth in this Section 16(b) shall be binding upon all transferees of the Warrant and the securities that may be issued upon exercise of the Warrant, but shall
terminate upon the consummation by the Company of an initial public offering. 
  
 (c)    Legend.    Each certificate representing the Warrant and the Warrant Shares, and any certificate issued at any time upon transfer of, or in exchange for or replacement of any
certificate, shall bear the following legend: 
  
 “THE SECURITIES
EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE OR COUNTRY. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD, ASSIGNED, TRANSFERRED OR
OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH SUCH ACT AND LAWS. THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND CONDITIONS OF, AND MAY ONLY BE TRANSFERRED IN ACCORDANCE WITH, THE WARRANT AGREEMENT DATED AS OF AUGUST
22, 2003 BETWEEN BROADBAND CAPITAL MANAGEMENT AND eLONG, INC., COPIES OF WHICH MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF eLONG, INC.” 
  
 (d)    Effect of Transfer on Prior Holder.    Subject to the terms and conditions of this Agreement, any person in
possession of the Warrant properly endorsed is authorized to 

  

 7 

 
represent himself as absolute owner hereof and is empowered to transfer absolute title hereto by endorsement and delivery hereof to a bona fide purchaser hereof in
accordance with the terms of this Agreement. Each prior holder of the Warrant renounces all of its equities or rights in the Warrant in favor of each such bona fide purchaser and each such bona fide purchaser shall acquire absolute title hereto and
to all rights represented hereby. 
  
 (e)    Rights
of Company.    Until the Warrant is transferred on the books of the Company in accordance with the terms of this Agreement, the Company may treat the registered holder hereof as the absolute owner hereof for all purposes,
notwithstanding any notice to the contrary. 
  
 17.    Notices, etc.    All notices, claims, certificates, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if personally
delivered or if sent by nationally-recognized overnight courier or by registered or certified mail, return receipt requested and postage prepaid, addressed as follows: 
  
 If to the Company: 
  
 eLong, Inc. 
 Suite 602, 603 and
604 
 Union Plaza 
 20 Chao Yang Men Wai Avenue 
 Beijing 100020 
 People’s Republic of China 
  
 with a copy to: 
  
 Nordlicht & Hand 
 645 Fifth
Avenue 
 New York, NY 10022 
 Fax:(212) 421-0499 
 Tel: (212) 421-6500 
 Attention: Brian M. Hand, Esq; 
  
 and if to Holder, to the last address furnished by Holder in writing to the Company; 
  
 or to such other address as the party to whom notice is to be given may have furnished to the other parties in writing in accordance herewith. Any
such notice or communication shall be deemed to have been received 
  
 (i)    in the case of personal delivery, on the date of such delivery, 
  
 (ii)    in the case of nationally-recognized overnight courier, on the next business day after the date when sent, to be
established by a receipt confirming delivery, and 
  
 (iii)    in the case of mailing, on the third business day following that on which the piece of mail containing such communication is posted. 
  
 18.    Miscellaneous. 
  
 (a)    Entire Agreement.    This Agreement (together with the Warrant and the Exhibits
referred to herein) constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings of the parties, written and oral, with respect to such subject matter. 

 
 (b)    Amendment.    This Agreement
and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought. 
  

 8 

 (c)    Assignment.    This Agreement is binding upon and shall inure
to the benefit of the parties hereto and their respective successors and permitted assigns. This Agreement may not be assigned by Holder other than in connection with a transfer of the Warrant or Warrant Shares in accordance with the terms hereof.

  
 (d)    Third Party
Beneficiaries.    Each party intends that this Agreement shall not benefit or create any right or cause of action in or on behalf of any person or entity other than parties hereto and their successors and permitted assigns.

  
 (e)    Headings.    The
headings in this Agreement are for purposes of reference only, and shall not limit or otherwise affect any of the terms hereof. 
  
 (f)    Governing Law.    This Agreement is being executed in the State of New York and shall be construed and
enforced in accordance with and governed by the laws of such State without giving effect to the principles of conflicts of laws. Venue for any action to enforce the provisions of the Warrant shall be exclusive in the federal and state courts located
in the City of New York, State of New York. 
  
 (g)    Expenses.    Regardless of whether the transactions contemplated herein are consummated, each party shall pay its own costs and expenses incurred or to be incurred in negotiating,
closing and carrying out this Agreement and in consummating the transactions contemplated herein unless otherwise expressly stated herein. 
  
 (h)    Counterparts.    This Agreement may be executed in two or more counterparts each of which shall be deemed an
original, and all of such counterparts together shall constitute one and the same document. 
  
 (i)    Termination.    This Agreement shall terminate on the earlier of (i) the Warrant Expiration Date or (ii) the date on which the Warrant has been exercised in full.

  
 (j)    Mutual
Drafting.    This Agreement constitutes the joint product of the parties and each provision has been subject to the mutual consultation, negotiation and agreement of the parties and shall not be construed for or against
either of them by virtue of the authorship thereof. 
  
 - SIGNATURES
APPEAR ON THE NEXT PAGE - 
  

 9 

 IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written. 
  

			
	 ELONG, INC.

		
	 By:
	 	 /s/

		
	 Name:
	 	  

		
	 Title:
	 	  

	
	 BROADBAND CAPITAL MANAGEMENT LLC

		
	 By:
	 	 /s/

		
	 Name:
	 	  

		
	 Title:
	 	  

  

 10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00072-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00072-of-00352.parquet"}]]