Document:

Exhibit 10.9

 

Equity Pledge Agreement

 

for

 

Shanghai eHi Information Technology Service Co., Ltd.

 

between

 

Han Hongtao

 

and

 

Shanghai eHi Car Rental Co., Ltd.

 

June 30, 2014

 

 

Equity Pledge Agreement

 

This Equity Pledge Agreement (this “Agreement”) is made on June 30, 2014 in Shanghai, the People’s Republic of China (the “PRC”) by and between:

 

(1)                                 Han Hongtao (“Pledgor”)

ID card number is 310109196810262014

 

(2)                                 Shanghai eHi Car Rental Co., Ltd. (“Pledgee”)

Registered address: Room 409, No. 49, Lane 555, Wenxi Road, Shanghai

 

(Each of the foregoing parties is hereinafter referred to individually as a “Party” and collectively the “Parties”)

 

Whereas:

 

(1)                                 Pledgor is a registered shareholder of Shanghai eHi Information Technology Service Co., Ltd. (business license registration no. of 310108000561755, the “Company”) and lawfully owns 50% of the equity interests in the Company (“Target Equity”) and, as of the date hereof, his/her contributions to and percentages of the registered capital of the Company are set out in Schedule 1 hereto.

 

(2)                                 Pledgor and Pledgee have entered into that certain Loan Agreement (“Loan Agreement”) dated May 10, 2014, under which Pledgee has extended a loan of RMB500,000,000 to Pledgor.

 

(3)                                 Pledgee, Pledgor and the Company have entered into that certain Call Option and Cooperation Agreement dated March 13, 2014.

 

(4)                                 Pledgee and the Company have entered into that certain Exclusive Technical Services and Consulting Agreement dated March 13, 2014.

 

(5)                                 As security for performance by Pledgor and the Company of the Contractual Obligations (as defined below) and repayment of the Secured Indebtedness (as defined below), Pledgor agrees to pledge all of his/her equity interest in the Company to Pledgee and grant Pledgee the right to request for repayment on first priority.

 

NOW, THEREFORE, upon mutual discussions, the Parties agree as follows:

 

Article 1                                    Definition

 

1.1                               Definition

 

Unless otherwise required by the context, the following terms shall have the following meanings in this Agreement

 

	
“Contractual Obligations”
    	
means all of Pledgor’s contractual obligations   under the Loan Agreement, the Call Option and Cooperation
    

 

 

	
 
    	
Agreement and this Agreement; all of the   Company’s contractual obligations under the Exclusive Technical Services and   Consulting Agreement.
    
	
 
    	
 
    
	
“Secured Indebtedness”
    	
means any monetary payment obligations assumed by   Pledgor and/or the Company under the Transaction Agreements, any and all   direct, indirect or consequential losses and loss of projectable benefits as   may be suffered by the Pledgee as a result of any Event of Default (as   defined below) of Pledgor and/or the Company; and all costs as may be   incurred by Pledgee in connection with its enforcement of the performance of   the Contractual Obligations against Pledgor and/or the Company.
    
	
 
    	
 
    
	
“Transaction Agreements”
    	
means the Loan Agreement, the Call Option and   Cooperation Agreement, and the Exclusive Technical Services and Consulting   Agreement.
    
	
 
    	
 
    
	
“Event of Default”
    	
means a breach by Pledgor and/or the Company of   any of its Contractual Obligations.
    
	
 
    	
 
    
	
“Pledged Property”
    	
means the Target Equity in the Company as   lawfully owned by Pledgor as of the effective date hereof and pledged   hereunder to Pledgee as security for Pledgor’s and the Company’s performance   of their respective Contractual Obligations and the repayment of the Secured   Indebtedness (the specific equity interests pledged by Pledgor being as set   out in Schedule 1 hereto) and any increased capital contribution and any   dividend under Section 2.5 hereof.
    
	
 
    	
 
    
	
“PRC Laws”
    	
means the then effective laws, administrative   regulations, administrative rules, local regulations, judicial   interpretations and other binding regulatory documents of the People’s   Republic of China.
    
	
 
    	
 
    
	
“Equity Pledge”
    	
has the meaning ascribed to it in   Section 2.2 hereof.
    
	
 
    	
 
    
	
“Party’s Rights”
    	
has the meaning ascribed to it in   Section 12.6 hereof.
    

 

1.2                               In this Agreement, any reference to any PRC Laws shall be deemed to include:

 

(i) a reference to such PRC Law as modified, amended, supplemented or reenacted, effective either before or after the date hereof; and

 

(ii) a reference to any other decision, circular or rule made thereunder or effective as a result thereof.

 

1.3                              Unless otherwise required by the context, a reference to a provision, clause, section or

 

 

paragraph shall be a reference to a provision, clause, section or paragraph of this Agreement.

 

Article 2                                    Equity Pledge

 

2.1                               Pledgor hereby agrees to pledge, in accordance with the terms hereof, his/her lawfully owned and rightfully disposable Pledged Property to Pledgee as security for performance by Pledgor and the Company of the Contractual Obligations and the repayment of the Secured Indebtedness.

 

2.2                               Pledgor shall, on the date hereof, record the pledge arrangement of the Target Equity (“Equity Pledge”) hereunder in the shareholders’ register of the Company.

 

2.3                               During the term of this Agreement, except for the wilful misconduct or gross negligence of Pledgee which is directly causally related to the diminution in value of the Pledged Property as proven by evidence, Pledgee shall not be liable in any way to, nor shall Pledgor have any right to claim in any way against or propose any demands on Pledgee, in respect of the said diminution in value of the Pledged Property.  If the Pledged Property suffers or is likely to suffer a value diminution, including, without limitation, the deterioration of the financial situation of the Company and other situations where Pledgor reasonably believes its rights are impaired, Pledgee shall provide the security equal to the diminished value or take other remedies per the request of Pledgor.

 

2.4                               Upon occurrence of any Event of Default, Pledgee shall be entitled to dispose of the Pledged Property in such manner as prescribed in Section 4 hereof.

 

2.5                               Pledgor may not receive any dividend or bonus in respect of the Pledged Property except with prior consent of Pledgee.  Any dividend or bonus received by Pledgor in respect of the Pledged Property shall be deposited into an account designated by Pledgee and subject to the supervision of Pledgee and will be used as the Pledged Property to repay in priority the Secured Indebtedness.

 

2.6                               Upon occurrence of an Event of Default, Pledgee shall be entitled to dispose of any Pledged Property of Pledgor in accordance with the terms hereof.

 

Article 3                                    Release of Pledge

 

Upon full and complete performance by Pledgor and the Company of all of their Contractual Obligations and their satisfaction of all of the Secured Indebtedness, Pledgee shall, at the request of Pledgor, release the pledge hereunder and cooperate with Pledgor in relation to the deregistration of the Equity Pledge in the shareholders’ register of the Company; reasonable costs arising out of such release of pledge shall be borne by Pledgee.

 

 

Article 4                                    Disposal of Pledged Property

 

4.1                               Pledgor and Pledgee hereby agree that upon occurrence of any Event of Default, Pledgee shall be entitled to exercise all of the remedies, rights and powers available to it under PRC Laws, the Transaction Agreements and this Agreement, including without limitation the right to auction or sell the Pledged Property for satisfaction of claims in priority.  Pledgee shall not be held liable for any losses resulting from its reasonable exercise of such rights and powers.

 

4.2                              Pledgee shall be entitled to appoint, in writing, its counsels or other agents to exercise any and all of its foregoing rights and powers and Pledgor shall not object thereto.

 

4.3                               The reasonable costs incurred by Pledgee in connection with the exercise of any and all rights and powers set out in Sections 4.1 and 4.2 shall be borne by Pledgor and Pledgee shall have the right to fully deduct such costs from the proceeds obtained as a result of its exercise of rights and powers.

 

4.4                               The proceeds obtained as a result of the exercise by Pledgee of its rights and powers shall be applied in the following order of precedence:

 

firstly, towards payment of all costs arising out of the disposal of the Pledged Property and the exercise by Pledgee of its rights and powers (including fees paid to its counsels and agents);

 

secondly, towards payment of the taxes payable in connection with the disposal of the Pledged Property; and

 

thirdly, towards repayment of the Secured Indebtedness to Pledgee;

 

and any balance after the deduction of the foregoing payments shall either be returned by Pledgee to Pledgor or any other person who may be entitled to such balance under relevant laws and regulations or be deposited by Pledgee with a notary organ located at the place of Pledgee (any costs rising out of such deposit shall be borne by Pledgor).

 

4.5                               Pledgee shall have the right to exercise, at its option, concurrently or successively, any of its breach of contract remedies; Pledgee shall not be required to first exercise other breach of contract remedies prior to exercising its right to auction or sell the Pledged Property hereunder.

 

Article 5                                    Costs and Expenses

 

Any and all actual costs and expenses arising in connection with the creation of the Equity Pledge hereunder, including without limitation the stamp duty and any other taxes and all legal costs, shall be borne by Pledgee.

 

 

Article 6                                    Continuing Guarantee and Non-Waiver

 

The Equity Pledge created hereunder shall constitute a continuing guarantee and shall remain valid until full performance of the Contractual Obligations or full satisfaction of the Secured Indebtedness.  Neither any waiver or grace granted by Pledgee with respect to any breach of Pledgor nor any delay of Pledgee in its exercise of any of its rights under the Transaction Agreements and this Agreement shall affect the right of Pledgee under this Agreement, the Transaction Agreements and relevant PRC Laws to require Pledgor and/or the Company to strictly perform the Transaction Agreements and this Agreement.

 

Article 7                                    Representations and Warranties

 

Pledgor represents and warrants to Pledgee that:

 

7.1                               He/she is a citizen of the PRC with full civil capacity; Pledgor has full and independent legal position and legal capacity and has been duly authorized to execute, deliver and perform this Agreement and can independently act as a party to a lawsuit.

 

7.2                               He/She has full power and authority to execute and deliver this Agreement and all other documents to be executed by him/her with respect to the transaction contemplated by this Agreement and he/she has full power and authority to conduct the transaction contemplated by this Agreement;

 

7.3                               All reports, documents and information provided by Pledgor to Pledgee prior to the effectiveness of this Agreement with respect to matters pertaining to Pledgor and required by this Agreement are true and correct in all material respects.

 

7.4                               All reports, documents and information provided by Pledgor to Pledgee subsequent to the effectiveness of this Agreement with respect to matters pertaining to Pledgor and required by this Agreement are true and valid in all material respects.

 

7.5                               As of the effectiveness of this Agreement, Pledgor is the sole lawful owner of the Pledged Property free from any ongoing dispute as to the ownership thereof; and Pledgor has the right to dispose of the Pledged Property or any part thereof.

 

7.6                               Other than the security interest created on the Pledged Property hereunder and the rights created under the Transaction Agreements, the Pledged Property is free from any other security interests or third party rights or security interests.

 

7.7                               When this Agreement is executed, the Pledged Property may be lawfully pledged and assigned, and Pledgor has full rights and powers to pledge the Pledged Property to Pledgee in accordance with the terms hereof.

 

 

7.8                               Once duly executed by Pledgor, this Agreement will constitute lawful, valid and binding obligations of Pledgor.

 

7.9                               All consents, permissions, waivers or authorizations by any third party or any approval, license or exemption from or any registration or filing formalities with any governmental body (if required by law), requisite in each case for the execution and performance of this Agreement and the creation of the Equity Pledge hereunder, have been obtained or pursued and will remain fully valid during the term of this Agreement.

 

7.10                        The execution and performance by Pledgor of this Agreement do not violate or conflict with any law applicable to Pledgor, any agreement to which Pledgor is a party or by which his/her assets are bound, any court judgments, any arbitral award, or any decision of any administrative authority.

 

7.11                        The pledge hereunder constitutes a first ranking security interest on the Pledged Property.

 

7.12                        All taxes and costs payable in connection with the securing of the Pledged Property have been paid in full by Pledgor.

 

7.13                        There are no pending, or to the knowledge of Pledgor, threatened, suits, legal proceedings or claims before any court or arbitral tribunal or by any governmental body or administrative authority against Pledgor or his/her properties or the Pledged Property having a material or adverse effect on the financial condition of Pledgor or his/her ability to fulfill his/her obligations and the guarantee liability hereunder.

 

7.14                        Pledgor hereby warrants to Pledgee that the foregoing representations and warranties will remain true and correct and fully complied with under all circumstances at any time prior to full performance of the Contractual Obligations or full satisfaction of the Secured Indebtedness.

 

Article 8                                    Undertakings

 

8.1                               Undertakings by Pledgor

 

Pledgor undertakes to Pledgee that:

 

8.1.1                     Without prior written consent of Pledgee, Pledgor will not create or permit to be created any new pledge or any other security interest on the Pledged Property and any pledge or other security interest created on all or any part of the Pledged Property without prior written consent of Pledgee shall be null and void.

 

8.1.2                     Should there arise any suit, arbitration or other claims which are likely to have an adverse effect on Pledgor’s or Pledgee’s interest under the Transaction Agreements and this Agreement or on the Pledged Property, Pledgor undertakes that he/she will notify Pledgee in writing of the same as promptly as possible

 

 

without delay and will, in accordance with the reasonable request of Pledgee, take all necessary measures to ensure Pledgee’s rights and interests of pledge in and to the Pledged Property.

 

8.1.3                     Pledgor will not do or permit to be done any act or action likely to have an adverse effect on the interest of Pledgee under the Transaction Agreements and this Agreement or on the Pledged Property.

 

8.1.4                     Pledgor will, in accordance with the reasonable request of Pledgee, take all steps and execute all documents (including without limitation any supplement hereto) necessary to ensure Pledgee’s rights and interests of pledge in and to the Pledged Property as well as the exercise and realization by Pledgee of such rights and interests.

 

8.1.5                     Should the exercise by Pledgee of the rights of pledge hereunder result in an assignment of the Pledged Property, Pledgor undertakes that he/she will take all measures to enable the realization of such assignment.

 

Article 9                                    Change of Circumstances

 

In addition to and without violating other provisions of the Transaction Agreements and this Agreement, in case that the promulgation or change of any PRC Laws, regulations or rules, or change in interpretation or application of such laws, regulations and rules, or the change of the relevant registration procedures enables Pledgee to believe that it will be illegal or in conflict with such laws, regulations or rules to further maintain the effectiveness of this Agreement and/or dispose of the Pledged Property in the way provided herein, Pledgor shall, at the written direction of Pledgee and in accordance with the request of Pledgee, promptly take actions and/or execute any agreement or other document, in order to:

 

(1)                                 keep this Agreement remain in effect;

 

(2)                                 facilitate the disposal of the Pledged Property in the way provided herein; and/or

 

(3)                                 maintain or realize the intention established hereunder.

 

Article 10                             Effectiveness and Term of Agreement

 

10.1                        This Agreement shall become effective upon fulfillment of all the following conditions:

 

(i)                                     This Agreement has been duly executed by the Parties hereto;

 

(ii)                                  The Equity Pledge hereunder has been recorded in the shareholders’ register of the Company in accordance with law.

 

 

Pledgor shall provide Pledgee with the evidence, in a form satisfactory to Pledgee, of the aforesaid recording of the Equity Pledge in the shareholders’ register.

 

10.2                        The term of this Agreement shall end when the Contractual Obligations shall have been performed in full or when the Secured Indebtedness shall have been satisfied in full.

 

Article 11                             Notice

 

11.1                        Any notice, request, demand and other correspondences required by or made pursuant to this Agreement shall be made in writing and delivered to the relevant Party.

 

11.2                        Such notice or other correspondences shall be deemed delivered when it is transmitted if transmitted by fax or email; or upon delivery, if delivered in person; or five (5) days after posting, if delivered by mail.

 

Article 12                             Miscellaneous

 

12.1                        The successors or permitted assignees (if any) of Pledgor shall be obligated to continue to perform all of Pledgor’s obligations hereunder.

 

12.2                        The sum of the Secured Indebtedness determined by Pledgee in its discretion in connection with its exercise of its rights of pledge with respect to the Pledged Property in accordance with the terms hereof shall constitute the conclusive evidence for the Secured Indebtedness hereunder.

 

12.3                        This Agreement is made in Chinese in two (2) originals, with each Party holding one (1) copy and additional number of originals may be executed for registration or filing purpose, when necessary.

 

12.4                        The entry into, effectiveness, performance, modification, interpretation and termination of this Agreement shall be governed by PRC Laws.

 

12.5                        Any dispute arising out of or in connection with this Agreement shall be settled by the Parties through consultations and shall, in the absence of an agreement being reached by the Parties within thirty (30) days of its occurrence, be brought before a court of competent jurisdiction for adjudication.

 

12.6                        No right, power or remedy empowered to any Party by any provision of this Agreement shall preclude any other right, power or remedy enjoyed by such Party in accordance with law and any other provisions hereof and no exercise by a Party of any of its rights, powers and remedies shall preclude its exercise of other rights, powers and remedies.

 

12.7                        No failure or delay by a Party in exercising any right, power or remedy under this Agreement or laws (“Party’s Rights”) shall result in a waiver of such rights; and no

 

 

single or partial waiver by a Party of the Party’s Rights shall preclude such Party from exercising such rights in any other way or exercising such other Party’s Rights.

 

12.8                        The section headings herein are inserted for convenience of reference only and shall in no event be used in or affect the interpretation of the provisions hereof.

 

12.9                        Each provision contained herein shall be severable and independent of any other provisions hereof, and if at any time any one or more provisions hereof become invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not be affected thereby.

 

12.10                 Any amendments or supplements to this Agreement shall be made in writing and except where Pledgee assigns its rights hereunder in accordance with Section 12.1, such amendments or supplements shall take effect only when properly signed by the Parties hereto.

 

12.11                 Subject to the provisions of Section 12.1 above, this Agreement shall be binding upon the legal successors of the Parties.

 

[Remainder of this page intentionally left blank]

 

 

[Signature Page]

 

IN WITNESS WHEREOF, the Parties have executed this Equity Pledge Agreement on the date and at the place first above written.

 

 

	
Han Hongtao
    	
 
    
	
By: 
    	
/s/ Han Hongtao
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Shanghai eHi Car Rental Co., Ltd.
    	
 
    
	
(Seal)
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ Ruiping Zhang
    	
 
    
	
Name:
    	
 
    
	
Title: Authorized   Representative
    	
 
    

 

 

SCHEDULE 1

 

PARTICULARS OF THE COMPANY

 

Company Name:  Shanghai eHi Information Technology Service Co., Ltd.

 

Registered Address: Room 530, No. 177, 181, 183 Baode Road, Zhabei District, Shanghai

 

Registered Capital: RMB1 Million

 

Shareholding Structure:

 

	
Name of Shareholders
    	
 
    	
Amount of Registered Capital
    	
 
    	
Contribution Percentage
    	
 
    
	
Han   Hongtao
    	
 
    	
RMB
    	
500,000
    	
 
    	
50
    	
%
    
	
Xie   Chun
    	
 
    	
RMB
    	
500,000
    	
 
    	
50
    	
%
    
	
Total
    	
 
    	
RMB
    	
1,000,000
    	
 
    	
100
    	
%
    

 

 

 

Equity Pledge Agreement

 

for

 

Shanghai eHi Information Technology Service Co., Ltd.

 

between

 

Xie Chun

 

and

 

Shanghai eHi Car Rental Co., Ltd.

 

June 30, 2014

 

 

Equity Pledge Agreement

 

This Equity Pledge Agreement (this “Agreement”) is made on June 30, 2014 in Shanghai, the People’s Republic of China (the “PRC”) by and between:

 

(1)                                 Xie Chun (“Pledgor”)

ID card number is 320623197901246459

 

(2)                                 Shanghai eHi Car Rental Co., Ltd. (“Pledgee”)

Registered address: Room 409, No. 49, Lane 555, Wenxi Road, Shanghai

 

(Each of the foregoing parties is hereinafter referred to individually as a “Party” and collectively the “Parties”)

 

Whereas:

 

(1)                                 Pledgor is a registered shareholder of Shanghai eHi Information Technology Service Co., Ltd. (business license registration no. of 310108000561755, the “Company”) and lawfully owns 50% of the equity interests in the Company (“Target Equity”) and, as of the date hereof, his/her contributions to and percentages of the registered capital of the Company are set out in Schedule 1 hereto.

 

(2)                                 Pledgor and Pledgee have entered into that certain Loan Agreement (“Loan Agreement”) dated May 10, 2014, under which Pledgee has extended a loan of RMB500,000,000 to Pledgor.

 

(3)                                 Pledgee, Pledgor and the Company have entered into that certain Call Option and Cooperation Agreement dated March 13, 2014.

 

(4)                                 Pledgee and the Company have entered into that certain Exclusive Technical Services and Consulting Agreement dated March 13, 2014.

 

(5)                                 As security for performance by Pledgor and the Company of the Contractual Obligations (as defined below) and repayment of the Secured Indebtedness (as defined below), Pledgor agrees to pledge all of his/her equity interest in the Company to Pledgee and grant Pledgee the right to request for repayment on first priority.

 

NOW, THEREFORE, upon mutual discussions, the Parties agree as follows:

 

Article 1                                    Definition

 

1.1                               Definition

 

Unless otherwise required by the context, the following terms shall have the following meanings in this Agreement

 

	
“Contractual Obligations”
    	
means all of Pledgor’s contractual obligations   under the Loan Agreement, the Call Option and Cooperation
    

 

 

	
 
    	
Agreement and this Agreement; all of the   Company’s contractual obligations under the Exclusive Technical Services and   Consulting Agreement.
    
	
 
    	
 
    
	
“Secured Indebtedness”
    	
means any monetary payment obligations assumed by   Pledgor and/or the Company under the Transaction Agreements, any and all   direct, indirect or consequential losses and loss of projectable benefits as   may be suffered by the Pledgee as a result of any Event of Default (as   defined below) of Pledgor and/or the Company; and all costs as may be   incurred by Pledgee in connection with its enforcement of the performance of   the Contractual Obligations against Pledgor and/or the Company.
    
	
 
    	
 
    
	
“Transaction Agreements”
    	
means the Loan Agreement, the Call Option and   Cooperation Agreement, and the Exclusive Technical Services and Consulting   Agreement.
    
	
 
    	
 
    
	
“Event of Default”
    	
means a breach by Pledgor and/or the Company of   any of its Contractual Obligations.
    
	
 
    	
 
    
	
“Pledged Property”
    	
means the Target Equity in the Company as   lawfully owned by Pledgor as of the effective date hereof and pledged   hereunder to Pledgee as security for Pledgor’s and the Company’s performance   of their respective Contractual Obligations and the repayment of the Secured   Indebtedness (the specific equity interests pledged by Pledgor being as set   out in Schedule 1 hereto) and any increased capital contribution and any   dividend under Section 2.5 hereof.
    
	
 
    	
 
    
	
“PRC Laws”
    	
means the then effective laws, administrative   regulations, administrative rules, local regulations, judicial   interpretations and other binding regulatory documents of the People’s   Republic of China.
    
	
 
    	
 
    
	
“Equity Pledge”
    	
has the meaning ascribed to it in   Section 2.2 hereof.
    
	
 
    	
 
    
	
“Party’s Rights”
    	
has the meaning ascribed to it in   Section 12.6 hereof.
    

 

1.2                               In this Agreement, any reference to any PRC Laws shall be deemed to include:

 

(i) a reference to such PRC Law as modified, amended, supplemented or reenacted, effective either before or after the date hereof; and

 

(ii) a reference to any other decision, circular or rule made thereunder or effective as a result thereof.

 

1.3                              Unless otherwise required by the context, a reference to a provision, clause, section or

 

 

paragraph shall be a reference to a provision, clause, section or paragraph of this Agreement.

 

Article 2                                    Equity Pledge

 

2.1                               Pledgor hereby agrees to pledge, in accordance with the terms hereof, his/her lawfully owned and rightfully disposable Pledged Property to Pledgee as security for performance by Pledgor and the Company of the Contractual Obligations and the repayment of the Secured Indebtedness.

 

2.2                               Pledgor shall, on the date hereof, record the pledge arrangement of the Target Equity (“Equity Pledge”) hereunder in the shareholders’ register of the Company.

 

2.3                               During the term of this Agreement, except for the wilful misconduct or gross negligence of Pledgee which is directly causally related to the diminution in value of the Pledged Property as proven by evidence, Pledgee shall not be liable in any way to, nor shall Pledgor have any right to claim in any way against or propose any demands on Pledgee, in respect of the said diminution in value of the Pledged Property. If the Pledged Property suffers or is likely to suffer a value diminution, including, without limitation, the deterioration of the financial situation of the Company and other situations where Pledgor reasonably believes its rights are impaired, Pledgee shall provide the security equal to the diminished value or take other remedies per the request of Pledgor.

 

2.4                               Upon occurrence of any Event of Default, Pledgee shall be entitled to dispose of the Pledged Property in such manner as prescribed in Section 4 hereof.

 

2.5                               Pledgor may not receive any dividend or bonus in respect of the Pledged Property except with prior consent of Pledgee.  Any dividend or bonus received by Pledgor in respect of the Pledged Property shall be deposited into an account designated by Pledgee and subject to the supervision of Pledgee and will be used as the Pledged Property to repay in priority the Secured Indebtedness.

 

2.6                               Upon occurrence of an Event of Default, Pledgee shall be entitled to dispose of any Pledged Property of Pledgor in accordance with the terms hereof.

 

Article 3                                    Release of Pledge

 

Upon full and complete performance by Pledgor and the Company of all of their Contractual Obligations and their satisfaction of all of the Secured Indebtedness, Pledgee shall, at the request of Pledgor, release the pledge hereunder and cooperate with Pledgor in relation to the deregistration of the Equity Pledge in the shareholders’ register of the Company; reasonable costs arising out of such release of pledge shall be borne by Pledgee.

 

 

Article 4                                    Disposal of Pledged Property

 

4.1                               Pledgor and Pledgee hereby agree that upon occurrence of any Event of Default, Pledgee shall be entitled to exercise all of the remedies, rights and powers available to it under PRC Laws, the Transaction Agreements and this Agreement, including without limitation the right to auction or sell the Pledged Property for satisfaction of claims in priority.  Pledgee shall not be held liable for any losses resulting from its reasonable exercise of such rights and powers.

 

4.2                              Pledgee shall be entitled to appoint, in writing, its counsels or other agents to exercise any and all of its foregoing rights and powers and Pledgor shall not object thereto.

 

4.3                               The reasonable costs incurred by Pledgee in connection with the exercise of any and all rights and powers set out in Sections 4.1 and 4.2 shall be borne by Pledgor and Pledgee shall have the right to fully deduct such costs from the proceeds obtained as a result of its exercise of rights and powers.

 

4.4                               The proceeds obtained as a result of the exercise by Pledgee of its rights and powers shall be applied in the following order of precedence:

 

firstly, towards payment of all costs arising out of the disposal of the Pledged Property and the exercise by Pledgee of its rights and powers (including fees paid to its counsels and agents);

 

secondly, towards payment of the taxes payable in connection with the disposal of the Pledged Property; and

 

thirdly, towards repayment of the Secured Indebtedness to Pledgee;

 

and any balance after the deduction of the foregoing payments shall either be returned by Pledgee to Pledgor or any other person who may be entitled to such balance under relevant laws and regulations or be deposited by Pledgee with a notary organ located at the place of Pledgee (any costs rising out of such deposit shall be borne by Pledgor).

 

4.5                               Pledgee shall have the right to exercise, at its option, concurrently or successively, any of its breach of contract remedies; Pledgee shall not be required to first exercise other breach of contract remedies prior to exercising its right to auction or sell the Pledged Property hereunder.

 

Article 5                                    Costs and Expenses

 

Any and all actual costs and expenses arising in connection with the creation of the Equity Pledge hereunder, including without limitation the stamp duty and any other taxes and all legal costs, shall be borne by Pledgee.

 

 

Article 6                                    Continuing Guarantee and Non-Waiver

 

The Equity Pledge created hereunder shall constitute a continuing guarantee and shall remain valid until full performance of the Contractual Obligations or full satisfaction of the Secured Indebtedness.  Neither any waiver or grace granted by Pledgee with respect to any breach of Pledgor nor any delay of Pledgee in its exercise of any of its rights under the Transaction Agreements and this Agreement shall affect the right of Pledgee under this Agreement, the Transaction Agreements and relevant PRC Laws to require Pledgor and/or the Company to strictly perform the Transaction Agreements and this Agreement.

 

Article 7                                    Representations and Warranties

 

Pledgor represents and warrants to Pledgee that:

 

7.1                               He/she is a citizen of the PRC with full civil capacity; Pledgor has full and independent legal position and legal capacity and has been duly authorized to execute, deliver and perform this Agreement and can independently act as a party to a lawsuit.

 

7.2                               He/She has full power and authority to execute and deliver this Agreement and all other documents to be executed by him/her with respect to the transaction contemplated by this Agreement and he/she has full power and authority to conduct the transaction contemplated by this Agreement;

 

7.3                               All reports, documents and information provided by Pledgor to Pledgee prior to the effectiveness of this Agreement with respect to matters pertaining to Pledgor and required by this Agreement are true and correct in all material respects.

 

7.4                               All reports, documents and information provided by Pledgor to Pledgee subsequent to the effectiveness of this Agreement with respect to matters pertaining to Pledgor and required by this Agreement are true and valid in all material respects.

 

7.5                               As of the effectiveness of this Agreement, Pledgor is the sole lawful owner of the Pledged Property free from any ongoing dispute as to the ownership thereof; and Pledgor has the right to dispose of the Pledged Property or any part thereof.

 

7.6                               Other than the security interest created on the Pledged Property hereunder and the rights created under the Transaction Agreements, the Pledged Property is free from any other security interests or third party rights or security interests.

 

7.7                               When this Agreement is executed, the Pledged Property may be lawfully pledged and assigned, and Pledgor has full rights and powers to pledge the Pledged Property to Pledgee in accordance with the terms hereof.

 

 

7.8                               Once duly executed by Pledgor, this Agreement will constitute lawful, valid and binding obligations of Pledgor.

 

7.9                               All consents, permissions, waivers or authorizations by any third party or any approval, license or exemption from or any registration or filing formalities with any governmental body (if required by law), requisite in each case for the execution and performance of this Agreement and the creation of the Equity Pledge hereunder, have been obtained or pursued and will remain fully valid during the term of this Agreement.

 

7.10                        The execution and performance by Pledgor of this Agreement do not violate or conflict with any law applicable to Pledgor, any agreement to which Pledgor is a party or by which his/her assets are bound, any court judgments, any arbitral award, or any decision of any administrative authority.

 

7.11                        The pledge hereunder constitutes a first ranking security interest on the Pledged Property.

 

7.12                        All taxes and costs payable in connection with the securing of the Pledged Property have been paid in full by Pledgor.

 

7.13                        There are no pending, or to the knowledge of Pledgor, threatened, suits, legal proceedings or claims before any court or arbitral tribunal or by any governmental body or administrative authority against Pledgor or his/her properties or the Pledged Property having a material or adverse effect on the financial condition of Pledgor or his/her ability to fulfill his/her obligations and the guarantee liability hereunder.

 

7.14                        Pledgor hereby warrants to Pledgee that the foregoing representations and warranties will remain true and correct and fully complied with under all circumstances at any time prior to full performance of the Contractual Obligations or full satisfaction of the Secured Indebtedness.

 

Article 8                                    Undertakings

 

8.1                               Undertakings by Pledgor

 

Pledgor undertakes to Pledgee that:

 

8.1.1                     Without prior written consent of Pledgee, Pledgor will not create or permit to be created any new pledge or any other security interest on the Pledged Property and any pledge or other security interest created on all or any part of the Pledged Property without prior written consent of Pledgee shall be null and void.

 

8.1.2                     Should there arise any suit, arbitration or other claims which are likely to have an adverse effect on Pledgor’s or Pledgee’s interest under the Transaction Agreements and this Agreement or on the Pledged Property, Pledgor undertakes that he/she will notify Pledgee in writing of the same as promptly as possible

 

 

without delay and will, in accordance with the reasonable request of Pledgee, take all necessary measures to ensure Pledgee’s rights and interests of pledge in and to the Pledged Property.

 

8.1.3                     Pledgor will not do or permit to be done any act or action likely to have an adverse effect on the interest of Pledgee under the Transaction Agreements and this Agreement or on the Pledged Property.

 

8.1.4                     Pledgor will, in accordance with the reasonable request of Pledgee, take all steps and execute all documents (including without limitation any supplement hereto) necessary to ensure Pledgee’s rights and interests of pledge in and to the Pledged Property as well as the exercise and realization by Pledgee of such rights and interests.

 

8.1.5                     Should the exercise by Pledgee of the rights of pledge hereunder result in an assignment of the Pledged Property, Pledgor undertakes that he/she will take all measures to enable the realization of such assignment.

 

Article 9                                    Change of Circumstances

 

In addition to and without violating other provisions of the Transaction Agreements and this Agreement, in case that the promulgation or change of any PRC Laws, regulations or rules, or change in interpretation or application of such laws, regulations and rules, or the change of the relevant registration procedures enables Pledgee to believe that it will be illegal or in conflict with such laws, regulations or rules to further maintain the effectiveness of this Agreement and/or dispose of the Pledged Property in the way provided herein, Pledgor shall, at the written direction of Pledgee and in accordance with the request of Pledgee, promptly take actions and/or execute any agreement or other document, in order to:

 

(1)                                 keep this Agreement remain in effect;

 

(2)                                 facilitate the disposal of the Pledged Property in the way provided herein; and/or

 

(3)                                 maintain or realize the intention established hereunder.

 

Article 10                             Effectiveness and Term of Agreement

 

10.1                        This Agreement shall become effective upon fulfillment of all the following conditions:

 

(i)                                     This Agreement has been duly executed by the Parties hereto;

 

(ii)                                  The Equity Pledge hereunder has been recorded in the shareholders’ register of the Company in accordance with law.

 

 

Pledgor shall provide Pledgee with the evidence, in a form satisfactory to Pledgee, of the aforesaid recording of the Equity Pledge in the shareholders’ register.

 

10.2                        The term of this Agreement shall end when the Contractual Obligations shall have been performed in full or when the Secured Indebtedness shall have been satisfied in full.

 

Article 11                             Notice

 

11.1                        Any notice, request, demand and other correspondences required by or made pursuant to this Agreement shall be made in writing and delivered to the relevant Party.

 

11.2                        Such notice or other correspondences shall be deemed delivered when it is transmitted if transmitted by fax or email; or upon delivery, if delivered in person; or five (5) days after posting, if delivered by mail.

 

Article 12                             Miscellaneous

 

12.1                        The successors or permitted assignees (if any) of Pledgor shall be obligated to continue to perform all of Pledgor’s obligations hereunder.

 

12.2                        The sum of the Secured Indebtedness determined by Pledgee in its discretion in connection with its exercise of its rights of pledge with respect to the Pledged Property in accordance with the terms hereof shall constitute the conclusive evidence for the Secured Indebtedness hereunder.

 

12.3                        This Agreement is made in Chinese in two (2) originals, with each Party holding one (1) copy and additional number of originals may be executed for registration or filing purpose, when necessary.

 

12.4                        The entry into, effectiveness, performance, modification, interpretation and termination of this Agreement shall be governed by PRC Laws.

 

12.5                        Any dispute arising out of or in connection with this Agreement shall be settled by the Parties through consultations and shall, in the absence of an agreement being reached by the Parties within thirty (30) days of its occurrence, be brought before a court of competent jurisdiction for adjudication.

 

12.6                        No right, power or remedy empowered to any Party by any provision of this Agreement shall preclude any other right, power or remedy enjoyed by such Party in accordance with law and any other provisions hereof and no exercise by a Party of any of its rights, powers and remedies shall preclude its exercise of other rights, powers and remedies.

 

 

12.7                        No failure or delay by a Party in exercising any right, power or remedy under this Agreement or laws (“Party’s Rights”) shall result in a waiver of such rights; and no single or partial waiver by a Party of the Party’s Rights shall preclude such Party from exercising such rights in any other way or exercising such other Party’s Rights.

 

12.8                        The section headings herein are inserted for convenience of reference only and shall in no event be used in or affect the interpretation of the provisions hereof.

 

12.9                        Each provision contained herein shall be severable and independent of any other provisions hereof, and if at any time any one or more provisions hereof become invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not be affected thereby.

 

12.10                 Any amendments or supplements to this Agreement shall be made in writing and except where Pledgee assigns its rights hereunder in accordance with Section 12.1, such amendments or supplements shall take effect only when properly signed by the Parties hereto.

 

12.11                 Subject to the provisions of Section 12.1 above, this Agreement shall be binding upon the legal successors of the Parties.

 

[Remainder of this page intentionally left blank]

 

 

[Signature Page]

 

IN WITNESS WHEREOF, the Parties have executed this Equity Pledge Agreement on the date and at the place first above written.

 

 

	
Xie Chun
    	
 
    
	
By: 
    	
/s/ Xie Chun
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Shanghai eHi Car Rental Co., Ltd.
    	
 
    
	
(Seal)
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ Ruiping   Zhang
    	
 
    
	
Name:
    	
 
    
	
Title: Authorized   Representative
    	
 
    

 

 

SCHEDULE 1

 

PARTICULARS OF THE COMPANY

 

Company Name:  Shanghai eHi Information Technology Service Co., Ltd.

 

Registered Address: Room 530, No. 177, 181, 183 Baode Road, Zhabei District, Shanghai

 

Registered Capital: RMB1 Million

 

Shareholding Structure:

 

	
Name of Shareholders
    	
 
    	
Amount of Registered Capital
    	
 
    	
Contribution Percentage
    	
 
    
	
Han   Hongtao
    	
 
    	
RMB
    	
500,000
    	
 
    	
50
    	
%
    
	
Xie   Chun
    	
 
    	
RMB
    	
500,000
    	
 
    	
50
    	
%
    
	
Total
    	
 
    	
RMB
    	
1,000,000
    	
 
    	
100
    	
%Exhibit 10.10

 

Dated: March 13, 2014

 

CALL OPTION AND COOPERATION AGREEMENT

 

among

 

Han Hongtao

 

Xie Chun

 

and

 

Shanghai eHi Car Rental Co., Ltd.

 

on

 

Shanghai eHai Information Technology Service Co., Ltd.

 

1

 

Call Option and Cooperation Agreement

 

This Call option and Cooperation Agreement (“this Agreement”) is made and entered into in Shanghai, the People’s Republic of China (the “PRC”) as of March 13, 2014 by and among the following Parties:

 

(1)           Han Hongtao, a PRC resident, whose ID card number is 310109196810262014;

 

(2)           Xie Chun, a PRC resident, whose ID card number is 320623197901246459;

 

(Han Hongtao and Xie Chun, each an “Existing Shareholder”, collectively the “Existing Shareholders”);

 

(3)           Shanghai eHi Car Rental Co., Ltd., with its registered address at Suite 409, Building No. 49, 33 Wenxi Road, Shanghai (“eHi Car Rental”); and

 

(4)           Shanghai eHi Information Technology Service Co., Ltd., with its registered address at Suite 530, 177, 181 and 183 Baode Road, Shanghai (“eHi Information”).

 

In this Agreement, the aforesaid parties are hereinafter referred to individually as a “Party” and collectively as the “Parties”.

 

RECITALS

 

WHEREAS,

 

A.            The Existing Shareholders are the sole registered shareholders of eHi Information and lawfully own all the equity interests in eHi Information and their respective contributions to and percentages of the registered capital of eHi Information as of the date hereof being as set out in Schedule 1 hereto.

 

B.            eHi Car Rental is a limited liability company lawfully incorporated and validly existing in the PRC and is an important partner of eHi Information by providing technical support, consultancy and related services to eHi Information.

 

C.            The Existing Shareholders agree to grant to eHi Car Rental an irrevocable option (“Call Option”), under which, the Existing Shareholders shall, subject to the PRC Laws and at the request of eHi Car Rental, transfer, in accordance with this Agreement, the Equity Interests Option (as defined below) to eHi Car Rental and/or any other entity or individual designated by it. 

 

D             eHi Information agrees for the Existing Shareholders to grant eHi Car Rental a Call Option in accordance with this Agreement. 

 

E             eHi Car Rental agrees to cooperate with the Existing Shareholders and eHi Information in 

 

2

 

accordance with this Agreement.

 

NOW, THEREFORE, the Parties hereby agree as follows after consultation:

 

Article 1                Definitions and Interpretation

 

1.1.        Unless otherwise required by the context, the following terms shall have the following meanings in this Agreement: 

 

“PRC Laws” means the then effective laws, administrative regulations, administrative rules, local regulations, judicial interpretations and other binding regulatory documents of the PRC. 

 

“Equity Transfer Option” means, with respect to each Existing Shareholder, all the equity interests held by it in the Registered Capital (as defined below) of eHi Information; with respect to the Existing Shareholders, 100% equity interests in the Registered Capital of eHi Information.

 

“Transferrable Equity Interests” means the equity interests in eHi Information which eHi Car Rental shall be entitled to request, upon exercise of its Call Option (“Exercise of Option”), any of or all the Existing Shareholders to transfer to it or its designated entity or individual in accordance with Article 3.2 hereof, being either the whole or a part of the Equity Interests Option , as may be determined by eHi Car Rental in its sole discretion in light of the PRC Laws then in effect and its own business considerations.

 

“Transfer Price” means the aggregate considerations payable by eHi Car Rental or its designated entity or individual to the Existing Shareholders upon each Exercise of Option for the acquisition of the Transferrable Equity Interests.

 

“eHi Information Assets” means all tangible and intangible assets owned or disposable by eHi Information during the term hereof, including, without limitation, any immovable property, personal property, and intellectual property such as trademarks, copyrights, patents, know-hows, domain names and software use rights.

 

“Material Agreements” means any agreement to which eHi Information is a party and eHi Car Rental and/or Runstar International Limited is another party, having material effect on the business or assets of eHi Information, including, without limitation, the Framework Agreement on Licensing of Online Game (internal version), the Framework Agreement on Licensing of Online Game (external version), Trademark Use License Agreement, Domain Name Use License Agreement, Exclusive Technology and Service Agreement and other agreements pertinent to the business of eHi Information.

 

“Shareholding Limit” has the meaning ascribed to it in Article 3.2 hereof.

 

3

 

“Exercise Notice” has the meaning ascribed to it in Article 3.5 hereof.

 

“Power of Attorney” has the meaning ascribed to it in Section 3.7 hereof.

 

“Confidential Information” has the meaning ascribed to it in Article 9.1 hereof. 

 

“Defaulting Party” has the meaning ascribed to it in Article 12.1 hereof.

 

“Default” has the meaning ascribed to it in Article 12.1 hereof.

 

“Party’s Rights” has the meaning ascribed to it in Article 13.5 hereof.

 

1.2          In this Agreement, any reference to any PRC Law shall be deemed to include:

 

1.2.1       a reference to such PRC Law as modified, amended, supplemented or reenacted, effective either before or after the date hereof; and

 

1.2.2       a reference to any other decision, circular or rule made thereunder or effective as a result thereof.

 

1.3          Unless otherwise required by the context, a reference to a provision, clause, section or paragraph shall be a reference to a provision, clause, section or paragraph of this Agreement.

 

Article 2                Grant of Call option

 

2.1          The Existing Shareholders hereby severally and jointly agree to irrevocably and unconditionally grant eHi Car Rental a Call Option, under which eHi Car Rental shall be entitled to require that, to the extent permitted under PRC laws, the Existing Shareholders transfer the Equity Interest Option to eHi Car Rental or any entity or individual to be designated by it in the manner prescribed herein and eHi Car Rental agrees to accept such option.

 

2.2          eHi Information hereby agrees for the Existing Shareholders to grant eHi Car Rental such Equity Transfer Option pursuant to Article 2.1 above and other provisions hereof

 

Article 3                Exercise of Call option

 

3.1          To the extent permitted under PRC laws, eHi Car Rental shall have absolute discretion to decide on the specific time, manner and number of times it will exercise the Call Option.

 

3.2          If any PRC law in effect at the time of Exercise of Option permits eHi Car Rental and/or its designated entity or individual to own all equity interests of eHi Information, eHi Car Rental may elect to exercise all of its Call Option on a lump sum basis and eHi Car Rental and/or its designated entity or individual will accept all Equity Transfer Option from the Existing Shareholders on a lump sum basis; if any PRC law in effect at the time of Exercise of Option only permits eHi Car Rental and/or its designated person to own

 

4

 

part of the equity interests of eHi Information, eHi Car Rental shall be entitled to determine the Transferrable Equity Interests in an amount no more than the limit of shareholding as permitted under the PRC laws (the “Shareholding Limit”) and eHi Car Rental and/or its designated entity or individual will accept such amount of Equity Transfer Option from the Existing Shareholders. Under such situation, eHi Car Rental shall be entitled to exercise the Call Option gradually and in several installments, so as to ultimately acquire all Equity Transfer Option.

 

3.3          In connection with each Exercise of Option, eHi Car Rental shall be entitled to determine in its sole discretion the amounts of the equity interests to be transferred by the Existing Shareholders to eHi Car Rental and/or other entity or individual designated by it as a result of such Exercise of Option; and the Existing Shareholders shall each transfer to eHi Car Rental and/or other entity or individual designated by it the Transferrable Equity Interests in such amounts as requested by eHi Car Rental. eHi Car Rental and/or other entity or individual designated by it shall pay the Transfer Price to the transferring Existing Shareholders for the Transferrable Equity Interests acquired as a result of each Exercise of Option.

 

3.4          In connection with each Exercise of Option, eHi Car Rental may either acquire the Transferrable Equity Interests itself or designate a third party to acquire all or part of such Transferrable Equity Interests.

 

3.5          Whenever eHi Car Rental elects to exercise its options hereunder, it shall give the Existing Shareholders an Equity Transfer Option exercise notice (“Exercise Notice”, the forms of which are set out in Schedules 2 hereto). Upon receipt of an Exercise Notice, the Existing Shareholders shall, acting in accordance with Article 3.3, immediately transfer the Transferrable Equity Interests to eHi Car Rental and/or other entity or individual designated by it pursuant to the Exercise Notice.

 

3.6          The Existing Shareholders hereby severally and jointly warrant and undertake that, immediately upon issuance of Exercise Notice by eHi Car Rental, it shall:

 

(1)           promptly convene a shareholders’ meeting, at which a resolution of the shareholders’ meeting shall be adopted and all other necessary measures taken to agree to transfer all Transferrable Equity Interests to eHi Car Rental and/or its designated entity or individual for the price agreed to herein;

 

(2)           promptly execute an equity transfer contract with eHi Car Rental and/or its designated entity or individual to give effect to the transfer of all Transferrable Equity Interests to eHi Car Rental and/or its designated entity or individual; and

 

(3)           provide necessary support to eHi Car Rental upon request of eHi Car Rental and pursuant to the laws and regulations, including providing and executing all relevant documents, completing all government approval and registration procedures and fulfilling all relevant obligations, so that eHi Car Rental and/or its designated entity or individual may acquire all Transferrable Equity Interests free of any legal defects.

 

5

 

3.7          At the time of execution hereof, the Existing Shareholders shall respectively execute a power of attorney (the “Power of Attorney”, the form of which is set forth in Appendix III hereto), to authorize any person to be designated by eHi Car Rental to execute on its behalf in accordance herewith any and all legal documents required for eHi Car Rental and/or its designated entity or individual to acquire all Transferrable Equity Interests free of any legal defects.  Such Power of Attorney shall be placed under the custody of eHi Car Rental and, when necessary, eHi Car Rental may at any time require that the Existing Shareholders respectively execute many copies of such Power of Attorney and submit the same to the competent government authorities.

 

Article 4                Transfer Price

 

In connection with each Exercise of Option by eHi Car Rental, the aggregate Transfer Prices payable by eHi Car Rental or its designated entity or individual to each of the Existing Shareholders shall be the amount of the contributions to the Registered Capital of eHi Information as represented by the relevant Transferrable Equity Interests as of March 13, 2014 (“Corresponding Amount”).  If the PRC Laws then in effect impose any compulsory restriction by providing that the Transfer Price shall be higher than the foregoing Corresponding Amount, eHi Car Rental or its designated entity or individual shall be entitled to determine the lowest price permissible by the PRC Laws as the Transfer Price.  Subject to the applicable laws, each of the Existing Shareholders shall gift to eHi Information the difference between the Transfer Price obtained by the Existing Shareholders in connection with Transferrable Equity Interests and the Corresponding Amount.

 

Article 5                Representations and Warranties

 

5.1          The Existing Shareholders hereby severally and jointly make the following representations and warranties and such representations and warranties shall remain in full effect as if they were made at the time of transfer of Equity Transfer Option:

 

5.1.1       It is a Chinese citizen with full civil capacity, has full and independent legal status and capacity, has obtained proper authorization to execute, deliver and perform this Agreement, and can independently act as a party to a lawsuit.

 

5.1.2       It has full power and authority to execute and deliver this Agreement and all other documents to be executed by it with respect to the transactions contemplated by this Agreement and to consummate such transactions.

 

5.1.3       This Agreement is lawfully and duly executed and delivered by it.  This Agreement constitutes its lawful and binding obligations and is enforceable against it in accordance with its terms.

 

5.1.4       When this Agreement becomes effective, it shall be the lawful owner of the Equity Transfer Option and the Equity Transfer Option shall be free from any lien,

 

6

 

pledge, claim, other security interest or third party encumbrances other than those created in this Agreement, the Equity Pledge Agreement it has entered into with eHi Car Rental, and other agreements or legal documents signed with eHi Car Rental and/or eHi Information.  In accordance with this Agreement, upon Exercise of Option, eHi Car Rental and/or its designated entity or individual shall have good ownership of the Transferrable Equity Interests free from any lien, pledge, claim, other security interest or third party encumbrances.

 

5.2          eHi Information hereby makes the following representations and warranties:

 

5.2.1       It is a limited liability company duly established and lawfully existing under PRC laws and has an independent legal person status. It has complete and independent legal position and legal capacity to execute, deliver and perform this Agreement and can independently act as a party to a lawsuit.

 

5.2.2       It has full internal corporate power and authority to execute and deliver this Agreement and all other documents to be executed by it with respect to the transactions contemplated by this Agreement and it has full power and authority to consummate the transactions contemplated by this Agreement.

 

5.2.3       This Agreement is lawfully and duly executed and delivered by it.  This Agreement constitutes its lawful and binding obligations and is enforceable against it in accordance with its terms.

 

5.2.4       When this Agreement becomes effective, the Existing Shareholders are the sole registered shareholders of eHi Information.  In accordance with this Agreement, upon Exercise of Option, eHi Car Rental and/or its designated entity or individual shall have good ownership of the Transferrable Equity Interests free from any lien, pledge, claim, other security interest or third party encumbrances.

 

Article 6                Undertakings of Existing Shareholders

 

The Existing Shareholders hereby severally and jointly make the following undertakings:

 

6.1          During the term of this Agreement, except those disclosed to eHi Car Rental with the prior written consent eHi Car Rental or subject to compulsory legal requirements:

 

6.1.1       it will not transfer or otherwise dispose of any Equity Transfer Option or encumber any Equity Transfer Option with any security interest or other third party rights;

 

6.1.2       it will not increase or reduce the registered capital of eHi Information;

 

6.1.3       it will not announce the distribution of or actually issue any profits, dividends or bonuses;

 

7

 

6.1.4       it will not agree or cause a merger or split of eHi Information;

 

6.1.5       it will not directly or indirectly own equity interests in, act as a director or become an employee of or provide service (except those services provided during the ordinary course of business of eHi Information) to, any domestic or overseas entities engaging in similar or competing business with eHi Information;

 

6.1.6       it will ensure that eHi Information will not be terminated, liquidated or dissolved; and

 

6.1.7       it will not revise the articles of association of eHi Information.

 

6.2          It shall ensure, during the term of this Agreement, that eHi Information will fulfill its undertakings under the following Article 7.1.

 

6.3          During the term of this Agreement, they shall use their respective best efforts to develop the business of eHi Information and ensure the lawful and rules-compliant operation of eHi Information and shall not commit any act or omission likely to impair the assets or goodwill of eHi Information or affect the validity of the business permits of eHi Information.  If they cease to be the shareholders of eHi Information, they will cause their respective successors to undertake in writing to assume their rights and obligations hereunder and with full legal effect.

 

Article 7                Undertakings of eHi Information

 

7.1          eHi Information hereby undertakes that, during the term of this Agreement, except those disclosed to eHi Car Rental with the prior written consent of eHi Car Rental or subject to compulsory legal requirements:

 

7.1.1       it will not dispose of the assets of eHi Information, except those occurred during the ordinary course of business;

 

7.1.2       it will not dispose of in any way the operation right and income right for any of its businesses;

 

7.1.3       it will not terminate any material agreement to which it is a party, nor will it enter into any other agreements in conflict with any existing material agreements;

 

7.1.4       it will not lend or borrow money, provide guarantee or any other form of security, or assume any material obligations outside of its ordinary course of business;

 

7.1.5       it will not acquire or invest any entity;

 

7.1.6       it will not or cause any money of eHi Information to be deposited into the accounts of other units or individuals, except those occurred during the ordinary course of business; and

 

8

 

7.1.7       it will not incur any liability or contract with a value in excess of RMB500,000, except those occurred during the ordinary course of business.

 

7.2          If the execution and performance hereof and the grant of the Call Option hereunder require the consent, permission, waiver or authorization of any third party or the approval, permission or exemption of any government authority or the registration or filing with any government authority (such as required by law), it will use its best efforts to help to satisfy such requirements.

 

7.3          Without the prior written consent of eHi Car Rental, eHi Information will not help or permit the Existing Shareholders to transfer or otherwise dispose of any Equity Transfer Option or encumber any Equity Transfer Option with any security interest or other third party rights.

 

7.4          It will not commit or permit any act or action that may have an adverse effect on its rights hereunder.

 

Article 8                Undertakings of Car Rental

 

In connection with the loss or capital need during the ordinary course of business of eHi Information, eHi Car Rental undertakes that, if the cooperation between eHi Information and eHi Car Rental does not help eHi Information realize its operation target, eHi Car Rental shall give necessary support to eHi Information to the extent as permitted by the laws notwithstanding the provisions of other agreement between them, so long as the Existing Shareholders and eHi Information have fulfilled their respective obligations and undertakings hereunder and their respective representations and warranties hereunder remain true and valid.

 

Article 9                Confidentiality

 

9.1          Whether this Agreement is terminated or not, the Existing Shareholders shall be obliged to keep confidential the following information (hereinafter referred to collectively as the “Confidential Information”):

 

(i) the execution, performance and contents of this Agreement;

 

(ii) the business secrets, proprietary information and customer information in relation to eHi Car Rental known to or received by them in connection with the execution and performance of this Agreement; and

 

(iii) the business secrets, proprietary information and customer information in relation to eHi Information known to or received by them as the shareholders of eHi Information.

 

The Existing Shareholders may use such Confidential Information only for the performance of their obligations hereunder. Without the prior written consent of eHi Car Rental, none of the Existing Shareholders may disclose such Confidential Information to

 

9

 

any third party or they shall be liable for breach of contract and make indemnification for any losses that may result therefrom.

 

9.2          Upon termination of this Agreement, at the request of Car Rental, each of the Existing Shareholders shall return, destroy or otherwise dispose of all the documents, materials or software containing the Confidential Information and cease to use such Confidential Information.

 

9.3          Notwithstanding any other provisions herein, the validity of this Article shall survive the suspension or termination of this Agreement.

 

Article 10             Term of Agreement

 

This Agreement shall become effective as of the date it is duly executed by the Parties hereto and terminate as of the time the entirety of the Equity Interests Option hereunder shall have been lawfully transferred to eHi Car Rental and/or other entity or individual designated by it in accordance with the provisions hereof.

 

Article 11             Notice

 

11.1        Any notice, request, demand and other correspondences required by or made pursuant to this Agreement shall be made in writing and delivered to the relevant Parties.

 

11.2        Such notice or other correspondences shall be deemed delivered when it is transmitted if transmitted by fax or email; or upon delivery if delivered in person; or five (5) days after posting if delivered by mail.

 

Article 12             Liability for Breach of Contract

 

12.1        The Parties agree and acknowledge that if any Party (the “Defaulting Party”) substantially breaches any provision hereunder, or substantially fails to perform any obligations hereunder, such breach or failure shall constitute a default hereunder (the “Default”) and that in such event, the non-defaulting Party shall have the right to demand the Defaulting Party to cure such Default or take remedial measures within a reasonable time. If the Defaulting Party fails to cure such Default or take remedial measures within such reasonable time or within ten (10) days after the non-defaulting Party notifies the Defaulting Party in writing and requests it to cure such Default, the non-defaulting Party may elect, in its discretion, to do the following:

 

(1)           terminate this Agreement and demand the Defaulting Party to indemnify for all damages; or

 

(2)           demand a specific performance by the Defaulting Party of its obligations hereunder and compensation for all damages by the Defaulting Party.

 

12.2        The Parties agree and acknowledge that, the Existing Shareholders and eHi Information shall not request to terminate this Agreement for any reason under any situation.

 

10

 

12.3                        The rights and remedies hereunder are cumulative and shall not preclude other rights or remedies provided by laws.

 

12.4                        Notwithstanding other provisions hereof, this article shall survive the suspension or termination of this Agreement.

 

Article 13                                        Other Provisions

 

13.1                        This Agreement is executed in Chinese in four (4) original counterparts to be held by each Party, each of which shall have equal effect and validity.

 

13.2                        The conclusion, effectiveness, interpretation, performance and termination hereof shall be governed by PRC laws.

 

13.3                        If any dispute arises out of the interpretation or performance hereof, the Parties shall try to settle such dispute through friendly consultation.  If such dispute has failed to be settled by the above means within thirty (30) days after the beginning of such consultation, any Party may refer such dispute to the competent court for litigation.

 

13.4                        No right, power or remedy empowered to any Party by any provision of this Agreement shall preclude any other right, power or remedy enjoyed by such Party in accordance with law or any other provisions hereof and no exercise by a Party of any of its rights, powers and remedies shall preclude its exercise of its other rights, powers and remedies

 

13.5                        No failure or delay by a Party in exercising any right, power or remedy under this Agreement or laws (the “Party’s Rights”) shall result in a waiver of such rights; and no single or partial waiver by a Party of the Party’s Rights shall preclude such Party from exercising such rights in any other way or exercising the remaining part of the Party’s Rights.

 

13.6                        The section headings herein are inserted for convenience of reference only and shall in no event be used in or affect the interpretation of the provisions hereof.

 

13.7                        Each provision contained herein shall be severable and independent of any other provisions hereof, and if at any time any one or more provisions hereof become invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not be affected thereby.

 

13.8                        Once executed, this Agreement shall replace any other legal documents entered into by the Parties in respect of the same subject matter hereof. Any amendments or supplements to this Agreement shall be made in writing and shall take effect only when properly signed by the Parties hereto.

 

13.9                        Without prior written consent of eHi Car Rental, neither the Existing Shareholders nor eHi Information shall assign any of its rights and/or obligations hereunder to any 

 

11

 

third party and eHi Car Rental may assign any of its rights and/or obligations hereunder to any third party designated by it with a prior notice to the Existing Shareholders and eHi Information.

 

13.10                 This Agreement shall be binding upon the legal assignees or successors of the Parties.

 

[Remainder of this page intentionally left blank]

 

12

 

(Signature Page of this Agreement)

 

IN WITNESS WHEREOF, the Parties have executed this Agreement on the date first written above.

 

 

	
Party A:
    	
/s/ Han Hongtao
    	
 
    
	
 
    	
Han Hongtao
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Party B:
    	
/s/ Xie Chun
    	
 
    
	
 
    	
Xie Chun
    	
 
    

 

 

	
Party C: Shanghai eHi Car Rental Co., Ltd. (Corporate Seal)
    
	
 
    	
 
    
	
Authorized   Representative (Signature):
    	
/s/ Ruiping Zhang
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Party D: Shanghai eHai Information Technology Service Co., Ltd.   (Corporate Seal)
    
	
 
    	
 
    
	
Authorized   Representative (Signature):
    	
/s/ Han Hongtao
    	
 
    
				

 

13

 

Appendix I:

 

BASIC INFORMATION OF EHI INFORMATION

 

Company Name: Shanghai eHi Information Technology Service Co., Ltd.

 

Registered Address: Suite 530, 177, 181 and 183 Baode Road, Shanghai

 

Registered Capital: RMB1 Million

 

Shareholding Structure as of the Effective of this Agreement:

 

	
Shareholder Name
    	
 
    	
Amount of Contributed
   Registered Capital
    	
 
    	
Percentage
   of Capital
   Contribution
    	
 
    	
Form of
   Capital
   Contribution
    	
 
    
	
Han Hongtao
    	
 
    	
RMB
    	
500.000
    	
 
    	
50
    	
%
    	
cash
    	
 
    
	
Xie Chun
    	
 
    	
RMB
    	
500.000
    	
 
    	
50
    	
%
    	
cash
    	
 
    

 

Financial Year: January 1-December 31

 

14

 

Appendix II:

 

Exercise Notice

 

To:                              (shareholder’s name)

 

Whereas, this company entered into the Call Option and Cooperation Agreement (the “Call Option Agreement”) with you and Shanghai eHi Information Technology Service Co., Ltd. (“eHi Information”) on             , 2014, which provides that, to the extent permitted under PRC laws and regulations, you shall transfer the equity interest you hold in eHi Information to this company or any third party to be designated by this company as required by this company,

 

Therefore, this company hereby issues the following notice to you:

 

This company hereby requires to exercise the Call Option under the Call Option Agreement and that the transfer of []% of the registered capital of eHai Information you hold (the “Equity Interest to Be Transferred”) be accepted by [this company]/[name of company/individual] to be designated by this company.  Upon receipt of this notice, you are supposed to promptly transfer all the Equity Interest to Be Transferred to [this company]/[name of designated company/individual] in accordance with the provisions of the Call Option Agreement.

 

Faithfully yours,

 

 

Shanghai eHi Car Rental Co., Ltd. (Seal)

Authorized Representative:

Date:

 

15

 

Appendix III

 

Power of Attorney

 

I, Han Hongtao (ID number:310109196810262014) hereby irrevocably authorize [              ] (passport number:                                                                        ) as my authorized representative to execute for Shanghai eHi Car Rental Co., Ltd. (“eHi Car Rental”) all legal documents necessary for or relating to the exercise of the rights under the Call Option and Cooperation Agreement among eHi Car Rental, Shanghai eHi Information Technology Service Co., Ltd and myself.

 

 

	
Signature:
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    

 

16

 

Power of Attorney

 

I, Xie Chun (ID number:320623197901246459) hereby irrevocably authorize [              ] (passport number:                                                                        ) as my authorized representative to execute for Shanghai eHi Car Rental Co., Ltd. (“eHi Car Rental”) all legal documents necessary for or relating to the exercise of the rights under the Call Option and Cooperation Agreement among eHi Car Rental, Shanghai eHi Information Technology Service Co., Ltd and myself.

 

 

	
Signature:
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    

 

17

 

Power of Attorney

 

I, Han Hongtao (ID number:310109196810262014) hereby irrevocably authorize Zhang Ruiping (passport number: 711188529) as my authorized representative to execute for Shanghai eHi Car Rental Co., Ltd. (“eHi Car Rental”) all legal documents necessary for or relating to the exercise of the rights under the Call Option and Cooperation Agreement among eHi Car Rental, Shanghai eHi Information Technology Service Co., Ltd. and myself.

 

 

	
Signature: 
    	
/s/ Han Hongtao
    	
 
    
	
Date:
    	
 
    

 

18

 

Power of Attorney

 

I, Xie Chun (ID number:320623197901246459) hereby irrevocably authorize Zhang Ruiping (passport number: 711188529) as my authorized representative to execute for Shanghai eHi Car Rental Co., Ltd. (“eHi Car Rental”) all legal documents necessary for or relating to the exercise of the rights under the Call Option and Cooperation Agreement among eHi Car Rental, Shanghai eHi Information Technology Service Co., Ltd. and myself.

 

 

	
Signature: 
    	
/s/ Xie Chun
    	
 
    
	
Date
    	
 
    

 

19

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00236-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00236-of-00352.parquet"}]]