Document:

Exhibit 10.7

 

LOAN AGREEMENT

 

between

 

HAN HONGTAO

 

and

 

SHANGHAI EHI CAR RENTAL CO., LTD.

 

Mach 10, 2014

 

 

LOAN AGREEMENT

 

THIS LOAN AGREEMENT (this “Agreement”) is made in Shanghai on March 10, 2014:

 

BETWEEN:

 

(1)                                 HAN Hongtao, a citizen of the People’s Republic of China, whose ID Number is 310109196810262014 (“Borrower”); and

 

(2)                                 Shanghai eHi Car Rental Co., Ltd., a limited liability company established under the PRC laws, with its legal address at Room 409, Unit 49, Lane 555 Wenxi Road, Shanghai (“Lender”).

 

(hereinafter individually referred to as a “Party” and collectively the “Parties”)

 

WHEREAS:

 

(A)                               To meet its funding requirement, Borrower proposes to borrow an amount of RMB500,000.00 from Lender;

 

(B)                               Lender agrees to make certain loan to Borrower.

 

SECTION I                              DEFINITIONS

 

1.1                               For the purposes of this Agreement:

 

“Loan” means the loan in RMB made by Lender to Borrower as set forth in Section 2.1 hereof.

 

“Amount” means any amount outstanding under the Loan.

 

“Repayment Notice” has the meaning given to it in Section 4.1 hereof.

 

“Repayment Request” has the meaning given to it in Section 4.2 hereof.

 

“Effective Date” means the date on which this Agreement is duly executed by the Parties.

 

“PRC” means the People’s Republic of China, excluding, for the purposes hereof, Hong Kong, Macao and Taiwan.

 

1.2                               In this Agreement, relevant terms shall be construed as follows:

 

The term “Section” shall be construed to mean a section of this Agreement, unless otherwise required by the context;

 

 

The term “taxes and charges” shall be construed to include any tax, charge, duty or other impositions of a similar nature (including, without limitation, any fine or interest in connection with the failure or delay in payment of such taxes and charges);

 

The terms “Borrower” and “Lender” shall be construed to include their respective successors and assignees.

 

1.3                               Unless otherwise indicated, a reference to this Agreement or any other agreement or document shall be construed to be a reference to this Agreement or such other agreement or document (as the case may be) as has been (or as may from time to time be) modified, amended, substituted or supplemented.

 

1.4                               Headings are inserted for convenience only.

 

1.5                               Unless otherwise required by the context, plural forms shall include singular form and vice versa.

 

SECTION II                         EXTENSION OF LOANS

 

2.1                               Lender agrees to provide to Borrower a loan in the amount of Renminbi Five Hundred Thousand (RMB500,000.00) (the “Loan”) on the Effective Date.  The Loan shall have a term of 10 years which commences from the Effective Date and may be automatically renewed upon the expiry of such term, provided that Lender does not oppose such renewal by giving a prior written notice.

 

SECTION III                    INTEREST

 

3.1                               The Parties agree that no interest will accrue on the Loan.

 

SECTION IV                     REPAYMENT

 

4.1                               Lender may at any time accelerate the Loan in its absolute and sole discretion and may by thirty (30) days repayment notice (the “Repayment Notice”) to Borrower demand Borrower to repay any portion of the Amount or the entire Amount.

 

4.2                               Borrower may at any time by thirty (30) days’ notice make a repayment request (the “Repayment Request”) to Lender proposing to fully repay the Amount.  Unless with the consent of Lender, Borrower shall not repay the Loan partially or by installment.

 

4.3                               If Borrower has been demanded to repay, or has proposed to repay the Loan, upon expiry of the thirty (30) days period specified in the Repayment Notice or the Repayment Request, Borrower shall repay the Amount in cash, or in such other form as may be required by Lender pursuant to its articles of association and applicable laws and regulations and approved by a resolution duly adopted by the board of directors of Lender.  To the extent not in conflict with applicable PRC laws, the Loan shall be repaid with the amount received by Borrower for its transfer of the equity interest it holds in Shanghai eHi Information Technology Service Co., Ltd. to Lender or a third party designated by Lender.

 

 

4.4                               Notwithstanding the provisions of Sections 4.1 and 4.2 above, during the term of the Loan and any extension thereof, Lender shall have the right to require Borrower to immediately repay the full Amount of the Loan:

 

(1)                                 Borrower is dead, is declared missing, loses civil capacity or has limited civil capacity;

 

(2)                                 Borrower resigns from Lender or is dismissed by Lender;

 

(3)                                 The cooperative relationship between Shanghai eHi Information Technology Service Co., Ltd. and Lender has been rescinded or terminated;

 

(4)                                 Without Lender’s consent, Borrower rescinds or terminates the guarantee agreement with Lender which secures the repayment obligations hereunder (the “Guarantee Agreement”), or breaches or fails to perform any of its obligations under the Guarantee Agreement;

 

(5)                                 Borrower commits any criminal offense or is involved in or connected with any criminal offense; or

 

(6)                                 Any other third party makes any request or other claim against Borrower for payment of any debt in excess of RMB300,000.

 

SECTION V                          TAXES AND CHARGES

 

All taxes and charges pertaining to the Loan shall be borne by Lender.

 

SECTION VI                     CONFIDENTIALITY

 

6.1                               Irrespective of whether this Agreement has been terminated, Borrower shall maintain in confidence (i) the execution, performance and content of this Agreement, and (ii) the business secrets, proprietary information and customer information of Lender coming into its knowledge or received by it as a result of the entry into and performance of this Agreement (“Confidential Information”).  Borrower may only use such Confidential Information for the purposes of performing its obligations hereunder. Without written consent of Lender, Borrower shall not disclose any such Confidential Information to any third party; otherwise, Borrower shall bear liabilities for breach and indemnify against losses.

 

6.2                               Upon termination of this Agreement, Borrower shall, at the request of Lender, return, destroy or otherwise deal with all documents, materials or software containing the Confidential Information and shall cease any use thereof.

 

6.3                               Notwithstanding any other provisions of this Agreement, the validity of this Section 6 shall not be affected by any suspension or termination of this Agreement.

 

 

SECTION VII                                        NOTICE

 

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

 

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

 

SECTION VIII                                   LIABILITY FOR DEFAULT

 

8.1                               Borrower undertakes to indemnify Lender against any actions, fees, claims, costs, damages, demands, expenses, liabilities, losses or proceedings as may be suffered or incurred by Lender as a result of Borrower’s breach of any of its obligations hereunder.

 

8.2                               Notwithstanding any other provisions hereof, the validity of this Section shall not be affected by any suspension or termination of this Agreement.

 

SECTION IX                    MISCELLANEOUS

 

9.1                               This Agreement is made in Chinese in two (2) originals, with each Party holding one (1) copy.

 

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

 

9.3                               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 resolution through legal proceedings.

 

9.4                               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.

 

9.5                               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 the remaining part of the Party’s Rights.

 

9.6                               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.

 

9.7                               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.

 

 

9.8                               Any amendments or supplements to this Agreement shall be made in writing and shall take effect only when properly signed by the Parties hereto.

 

9.9                               Without prior written consent of Lender, Borrower may not assign any of its rights and/or obligations hereunder to any third party.  Lender shall have the right to assign, upon notice to the other Party, any of its rights hereunder to any third party designated by it.

 

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

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

 

[EXECUTION PAGE]

 

IN WITNESS WHEREOF, the Parties have caused this Loan Agreement to be executed at the place and as of the date first above written.

 

 

	
HAN Hongtao
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ HAN Hongtao
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Shanghai eHi Car Rental   Co., Ltd.
    	
 
    
	
(seal)
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ Ruiping Zhang
    	
 
    
	
Name:
    	
 
    
	
Title: authorized   representative
    	
 
    

 

 

LOAN AGREEMENT

 

between

 

XIE CHUN

 

and

 

SHANGHAI EHI CAR RENTAL CO., LTD.

 

Mach 10, 2014

 

 

LOAN AGREEMENT

 

THIS LOAN AGREEMENT (this “Agreement”) is made in Shanghai on March 10, 2014:

 

BETWEEN:

 

(1)                                 XIE Chun, a citizen of the People’s Republic of China, whose ID Number is 320623197901246459 (“Borrower”); and

 

(2)                                 Shanghai eHi Car Rental Co., Ltd., a limited liability company established under the PRC laws, with its legal address at Room 409, Unit 49, Lane 555 Wenxi Road, Shanghai (“Lender”).

 

(hereinafter individually referred to as a “Party” and collectively the “Parties”)

 

WHEREAS:

 

(A)                               To meet its funding requirement, Borrower proposes to borrow an amount of RMB500,000.00 from Lender;

 

(B)          Lender agrees to make certain loan to Borrower.

 

SECTION I          DEFINITIONS

 

1.1          For the purposes of this Agreement:

 

“Loan” means the loan in RMB made by Lender to Borrower as set forth in Section 2.1 hereof.

 

“Amount” means any amount outstanding under the Loan.

 

“Repayment Notice” has the meaning given to it in Section 4.1 hereof.

 

“Repayment Request” has the meaning given to it in Section 4.2 hereof.

 

“Effective Date” means the date on which this Agreement is duly executed by the Parties.

 

“PRC” means the People’s Republic of China, excluding, for the purposes hereof, Hong Kong, Macao and Taiwan.

 

1.2          In this Agreement, relevant terms shall be construed as follows:

 

The term “Section” shall be construed to mean a section of this Agreement, unless otherwise required by the context;

 

 

The term “taxes and charges” shall be construed to include any tax, charge, duty or other impositions of a similar nature (including, without limitation, any fine or interest in connection with the failure or delay in payment of such taxes and charges);

 

The terms “Borrower” and “Lender” shall be construed to include their respective successors and assignees.

 

1.3                               Unless otherwise indicated, a reference to this Agreement or any other agreement or document shall be construed to be a reference to this Agreement or such other agreement or document (as the case may be) as has been (or as may from time to time be) modified, amended, substituted or supplemented.

 

1.4                               Headings are inserted for convenience only.

 

1.5                               Unless otherwise required by the context, plural forms shall include singular form and vice versa.

 

SECTION II        EXTENSION OF LOANS

 

2.1                               Lender agrees to provide to Borrower a loan in the amount of Renminbi Five Hundred Thousand (RMB500,000.00) (the “Loan”) on the Effective Date.  The Loan shall have a term of 10 years which commences from the Effective Date and may be automatically renewed upon the expiry of such term, provided that Lender does not oppose such renewal by giving a prior written notice.

 

SECTION III       INTEREST

 

3.1          The Parties agree that no interest will accrue on the Loan.

 

SECTION IV       REPAYMENT

 

4.1                               Lender may at any time accelerate the Loan in its absolute and sole discretion and may by thirty (30) days repayment notice (the “Repayment Notice”) to Borrower demand Borrower to repay any portion of the Amount or the entire Amount.

 

4.2                               Borrower may at any time by thirty (30) days notice make a repayment request (the “Repayment Request”) to Lender proposing to fully repay the Amount.  Unless with the consent of Lender, Borrower shall not repay the Loan partially or by installment.

 

4.3                               If Borrower has been demanded to repay, or has proposed to repay the Loan, upon expiry of the thirty (30) days period specified in the Repayment Notice or the Repayment Request, Borrower shall repay the Amount in cash, or in such other form as may be required by Lender pursuant to its articles of association and applicable laws and regulations and approved by a resolution duly adopted by the board of directors of Lender.  To the extent not in conflict with applicable PRC laws, the Loan shall be repaid with the amount received by Borrower for its transfer of the equity interest it holds in Shanghai eHi Information Technology Service Co., Ltd. to Lender or a third party designated by Lender.

 

 

4.4                               Notwithstanding the provisions of Sections 4.1 and 4.2 above, during the term of the Loan and any extension thereof, Lender shall have the right to require Borrower to immediately repay the full Amount of the Loan:

 

(1)                                 Borrower is dead, is declared missing, loses civil capacity or has limited civil capacity;

 

(2)                                 Borrower resigns from Lender or is dismissed by Lender;

 

(3)                                 The cooperative relationship between Shanghai eHi Information Technology Service Co., Ltd. and Lender has been rescinded or terminated;

 

(4)                                 Without Lender’s consent, Borrower rescinds or terminates the guarantee agreement with Lender which secures the repayment obligations hereunder (the “Guarantee Agreement”), or breaches or fails to perform any of its obligations under the Guarantee Agreement;

 

(5)                                 Borrower commits any criminal offense or is involved in or connected with any criminal offense; or

 

(6)                                 Any other third party makes any request or other claim against Borrower for payment of any debt in excess of RMB300,000.

 

SECTION V         TAXES AND CHARGES

 

All taxes and charges pertaining to the Loan shall be borne by Lender.

 

SECTION VI       CONFIDENTIALITY

 

6.1          Irrespective of whether this Agreement has been terminated, Borrower shall maintain in confidence (i) the execution, performance and content of this Agreement, and (ii) the business secrets, proprietary information and customer information of Lender coming into its knowledge or received by it as a result of the entry into and performance of this Agreement (“Confidential Information”).  Borrower may only use such Confidential Information for the purposes of performing its obligations hereunder. Without written consent of Lender, Borrower shall not disclose any such Confidential Information to any third party; otherwise, Borrower shall bear liabilities for breach and indemnify against losses.

 

6.2          Upon termination of this Agreement, Borrower shall, at the request of Lender, return, destroy or otherwise deal with all documents, materials or software containing the Confidential Information and shall cease any use thereof.

 

6.3          Notwithstanding any other provisions of this Agreement, the validity of this Section 6 shall not be affected by any suspension or termination of this Agreement.

 

 

SECTION VII     NOTICE

 

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

 

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

 

SECTION VIII    LIABILITY FOR DEFAULT

 

8.1                               Borrower undertakes to indemnify Lender against any actions, fees, claims, costs, damages, demands, expenses, liabilities, losses or proceedings as may be suffered or incurred by Lender as a result of Borrower’s breach of any of its obligations hereunder.

 

8.2                               Notwithstanding any other provisions hereof, the validity of this Section shall not be affected by any suspension or termination of this Agreement.

 

SECTION IX       MISCELLANEOUS

 

9.1                               This Agreement is made in Chinese in two (2) originals, with each Party holding one (1) copy.

 

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

 

9.3                               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 resolution through legal proceedings.

 

9.4                               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.

 

9.5                               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 the remaining part of the Party’s Rights.

 

9.6                               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.

 

9.7                               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.

 

 

9.8                               Any amendments or supplements to this Agreement shall be made in writing and shall take effect only when properly signed by the Parties hereto.

 

9.9                               Without prior written consent of Lender, Borrower may not assign any of its rights and/or obligations hereunder to any third party.  Lender shall have the right to assign, upon notice to the other Party, any of its rights hereunder to any third party designated by it.

 

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

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

 

[EXECUTION PAGE]

 

IN WITNESS WHEREOF, the Parties have caused this Loan Agreement to be executed at the place and as of the date first above written.

 

 

	
XIE Chun
    
	
 
    
	
By: 
    	
/s/ XIE Chun
    	
 
    
	
 
    
	
 
    
	
Shanghai eHi Car Rental   Co., Ltd.
    
	
(seal)
    
	
 
    
	
By: 
    	
/s/ Ruiping Zhang
    	
 
    
	
Name:
    
	
Title: authorized   representativeExhibit 10.8

 

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
    	
%

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