Company: ZCARW
Filing Date: 2025-03-28
Form Type: DRS
Source: 0001013762-25-003498
Chunk: 20

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-28
Form: DRS
Chunk 20
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 a joining bonus of $500,000 payable in cash and shares of Common Stock. Additionally,
the Company will recommend to the Board and the Compensation Committee of the Board that the Company grant to Mr. Levine, subject to the
approval of the Company’s stockholders, an equity grant equal to 3% of the Company’s outstanding equity as of its last financing
as of December 31, 2024, which such grant will be subject to certain vesting restrictions as determined by the independent members of
the Board or a subcommittee thereof. Further, pursuant to the agreement, if the Company is sufficiently capitalized in the sole determination
of Mr. Levine, Mr. Levine has agreed to accept (at the Board’ discretion) a nomination or, if there is a vacancy on the Board, an
appointment by the Board, to serve as a director and Chairman of the Board. The Strategic Advisory Agreement may be terminated by the
Company with 90 days written notice.

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Except as described below,
we are not currently subject to any material claims, lawsuits, arbitration proceedings, administrative actions, government investigations
and other legal and regulatory disputes and proceedings (collectively, “Legal Proceedings”). We have received communications
relating to certain legal proceedings, as described in the risk factors included herein under the title “Risk Factors - A
former consultant to Zoomcar has commenced a lawsuit against Zoomcar asserting that he is entitled to compensation in connection with
prior Zoomcar transactions and the Business Combination” and “Risk Factors - A former employee of Zoomcar India
has instituted a wrongful termination suit and claims that certain Zoomcar options have vested.” We may become subject to other
Legal Proceedings over time or from time to time, in the ordinary course of our business and as our business continues to grow and expand
over time. Becoming involved with Legal Proceedings, regardless of the outcome, may result in substantial cost and diversion of our resources,
including our management’s time and attention.

As a result of our business
operations in India, we are regularly subject to legal proceedings, many of which are de minimis in nature and amount and the majority
of which relate to local tax matters. Many of these tax and vehicle accident-related Legal Proceedings are pending before various forums
in India and involve localized practices and interpretations of regulatory matters that make the ultimate outcomes or resolution of these
Legal Proceedings inherently uncertain and difficult to predict. Management’s views and estimates related to these matters may change
in the future, as new