Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.
On July 15, 2020, Jane Jie Sun was elected to the Board of Directors of
Tripadvisor, Inc., a Delaware corporation ("Tripadvisor"). Ms. Sun, the Chief
Executive Officer and a Director of Trip.com Group Limited ("Trip.com"), serves
as the designee of Trip.com pursuant to the terms of the Governance Agreement,
dated as of November 6, 2019, by and between Tripadvisor and Trip.com (the
"Governance Agreement"). Ms. Sun will receive the same compensation as
Tripadvisor's other nonemployee directors, which is summarized in Tripadvisor's
proxy statement for the annual meeting of stockholders held on June 9, 2020,
which was filed with the U.S. Securities and Exchange Commission on April 28,
2020.
Pursuant to the Governance Agreement, Trip.com will have a nomination right for
one Tripadvisor board seat. To maintain the board nomination right, Trip.com
must acquire an equity stake in Tripadvisor in an amount representing
approximately 5% of Tripadvisor's issued and outstanding shares of common
stock. The above description of the Governance Agreement is not complete and is
qualified in its entirety by reference to the full text of such agreement, a
copy of which is attached as Exhibit 10.1 to the Current Report on Form 8-K
filed on November 6, 2019 and is incorporated by reference herein.
Simultaneously with entering into the Governance Agreement, on November 6, 2019,
Tripadvisor issued a press release announcing its strategic partnership with
Trip.com. The partnership consists of a joint venture under the Tripadvisor
China brand, global content agreements providing for the distribution of
Tripadvisor content on the Trip.com brands, and the Governance Agreement. The
full text of this press release was furnished as Exhibit 99.3 to the Current
Report on Form 8-K filed November 6, 2019.
As part of the strategic partnership, Tripadvisor and Ctrip Investment Holding
Ltd, a majority-owned subsidiary of Trip.com, entered into an agreement to
combine certain assets in China through the creation of a new entity, Chelsea
Investment Holding Company PTE, Ltd. (the "JV"). Tripadvisor contributed a
portion of its business in China to the JV, including a long-term exclusive
brand and content license and other assets, in return for a 40% equity ownership
interest in the JV. The above description of the JV is not complete and is
qualified in its entirety by reference to Tripadvisor's disclosure in the
Company's Annual Report on Form 10-K filed on February 19, 2020.
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