Company: ZCARW
Filing Date: 2025-03-28
Form Type: DRS
Source: 0001013762-25-003498
Chunk: 23

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-28
Form: DRS
Chunk 23
---
 and is attempting to have the interim order vacated. In addition, Zoomcar
India filed an application in the former employee’s suit, seeking that IOAC be deleted from the array of parties in the suit, inter
alia since (i) IOAC is neither a necessary nor a proper party to the suit; (ii) no reliefs have been sought by the former employee from
IOAC; and (iii) there is no cause of action against IOAC.

On September 26, 2024, we
received a copy of a complaint filed with the United States District Court for the District of Delaware wherein our founder and former
CEO Greg Moran has challenged the Company’s termination of his employment for cause, effective as of June 18, 2024. Mr. Moran has
contested the facts leading up to the grounds on which his termination was based and has also claimed that this alleged wrongful termination
has deprived him of his vested right to 8% of the Company’s outstanding equity that he claims was owed to him under his Employment
Agreement. He has also claimed that in connection with his termination he is entitled to the payment of certain amounts for unused paid
leave during his employment with Zoomcar, along with certain bonuses he claims to be owed under the terms of his Employment Agreement,
as well as severance equal to one year’s base salary. Zoomcar believes that the termination of Mr. Moran’s employment for
cause was proper in accordance with the terms of his Employment Agreement. As of October 31, 2024, the suit has been dismissed on account
of Mr. Moran’s intention to refile the case in Delaware Superior Court. Mr. Moran refiled his lawsuit in the Superior Court of the
State of Delaware on November 1, 2024. On 27 November 2024, the Company has filed a motion to dismiss certain of the causes of action
for failure to state a cause of action, and the briefing on that motion was filed on 7 January 2025. Even if the Company prevails on the
motion, there will still be remaining count of breach of contract the Company will be required to defend.

The Company received two
default notices from ACM. The first notice was issued on May 22, 2024 which stated that the Company is in default of the terms of the
Unsecured Convertible Note issued to ACM on December 28, 2023, since the Company had entered into an equity line arrangement with White
L