Document:

Exhibit 10.9

 

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.

 

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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 

 

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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.

 

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“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

 

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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.

 

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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,

 

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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;

 

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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

 

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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

 

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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.

 

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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 

 

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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]

 

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(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
    	
 
    
				

 

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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

 

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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:

 

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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:
    	
 
    	
 
    

 

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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:
    	
 
    	
 
    

 

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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:
    	
 
    

 

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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
    	
 
    

 

19Exhibit 10.10

 

Agreement on Authorization to Exercise Shareholder’s Voting Power in Shanghai eHi Information Technology Service Co., Ltd. Among Shanghai eHi Car Rental Co., Ltd., Han Hongtao and Xie Chun

 

March 13, 2014

 

Execution Page

 

 

Agreement on Authorization to Exercise Shareholder’s Voting Power

 

This Agreement on Authorization to Exercise Shareholder’s Voting Power (hereinafter referred to as “this agreement”) was entered into among and by following parties on March 13, 2014 in Shanghai, the People’s Republic of China (hereinafter referred to as “PRC”):

 

(1) Shanghai eHi Car Rental Co., Ltd (hereinafter referred to as “eHi Car Rental”)

Address: 12th Floor, Guosheng Center, 388 Daduhe Road No. 5, Putuo District, Shanghai

 

(2) Han Hongtao:

ID No.: 310109196810262014

 

(3) Xie Chun:

ID No.: 320623197901246459

 

(Hereinafter individually referred to as “each shareholder”)

 

Whereas:

 

1. Each shareholder is a current shareholder of the target company and holds equity interests in the target company;

2. Each shareholder tends to separately entrust an individual designated by eHi Car Rental to perform his voting right and eHi Car Rental agrees to designate related personnel to accept such entrustment.

It is agreed as follows through friendly negotiation:

 

Article I Entrustment of Voting Right

 

1.1 Each shareholder hereby irrevocably agrees to respectively sign a letter of authorization, authorizing ZHANG RUIPING (Passport No.: 711188529; hereinafter referred to as “the trustee”) to, in accordance with Chinese laws, perform following rights under the Articles of Association of the target company available to each shareholder as the target company’s shareholder (hereinafter collectively referred to as “entrusted rights”).

 

(1) Attend meetings of shareholders of the target company as an agent of each shareholder;

(2) Represent each shareholder to exercise voting right on all matters subject to the discussion and resolution of the meeting of shareholders (including but not limited to designation and election of senior executives of the target company, such as Director and General Manager);

(3) Propose to hold an extraordinary meeting of shareholders;

(4) Any voting rights of shareholders set forth by laws;

(5) Other shareholder’s voting rights under the Articles of Association of the target company (including any other shareholder’s voting rights specified by Articles of Association as amended).

 

1.2 The precondition of the foregoing authorization and entrustment is eHi Car Rental’s consent to the foregoing authorization and entrustment. Only when eHi Car Rental issues a written notice 

 

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about trustee replacement to each shareholder, each shareholder shall immediately cancel the entrustment with the existing trustee under this agreement and authorize eHi Car Rental to designate other personnel to perform entrusted rights in accordance with this agreement. Once a new authorization and entrustment is made, the previous authorization and entrustment shall be replaced. Under other circumstances, each shareholder shall not cancel entrustment and authorization with the trustee.

 

1.3 The trustee shall, within the scope of authorization specified by this agreement, prudently and diligently perform entrusted obligations in accordance with laws and the Articles of Association of the target company, ensure that convening procedures, voting methods and contents of the meetings of shareholders be in consistent with the laws, administrative regulations or the Articles of Association of the target company. Each shareholder shall acknowledge any legal consequences caused by the trustee’s performance of foregoing entrusted rights and bear corresponding liabilities.

 

1.4 Each shareholder hereby confirms the trustee needs not solicit opinions from each shareholder before performing foregoing entrusted rights, unless otherwise specified by Chinese laws. But after a resolution or a proposal about convening an extraordinary meeting of shareholder is made, the trustee shall inform each shareholder of the same in a timely manner.

 

Article II Right to Know

 

For the purpose of performing entrusted rights under this agreement, the trustee shall have the right to understand various related information of the target company, such as operation, business, client, finance and employee, inspect and review related materials of the target company (including but not limited to any account books, statements, contracts, internal correspondences and all minutes of the Board of Directors and other documents in connection with the finance, business and operation) and the target company shall provide full assistance.

 

Article III Exercise of Entrusted Rights

 

3.1 Each shareholder will provide full assistance for the trustee to exercise entrusted rights, including timely execution of resolutions of meeting of shareholders made by the trustee in connection with the target company or other relevant legal documents if necessary (such as the documents for the satisfaction of the governmental authority’s requirement on submission of documents for approval, registration and filing).

 

3.2 If empowerment or exercise of entrusted rights under this agreement cannot be realized for any reason (excluding breach by each shareholder or the target company) at any time during the period of this agreement, each party shall immediately look for an alternative solution mostly similar to the unrealized provision and sign a supplementary agreement or adjust terms of this agreement if necessary so as to ensure continuous realization of the purpose under this agreement.

 

Article IV Exemptions and Indemnification

 

The target company and each shareholder agree to compensate and indemnify eHi Car Rental and the trustee against all losses suffered or to be suffered as a result of the trustee’s exercise of the entrusted rights, including but not limited to any losses incurred due to lawsuit, recovery, arbitration or claim made by the third party or the governmental authority’s administrative investigation and punishment. Losses incurred due to the intentional or severe fault of eHi Car 

 

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Rental or the trustee are excluded from the scope of the compensation and indemnification.

 

Article V Representations and Warrants

 

5.1 Each shareholder separately and jointly represents and warrants as follows:

 

5.1.1 Each shareholder is a Chinese citizen with full capacity, has full and independent legal status and legal capacity and may independently behaves as a subject of litigation.

 

5.1.1 Each shareholder has full right and authorization of signing and delivering this agreement and all other documents related to transactions under this agreement and full right and authorization of completing transactions under this agreement.

 

5.1.3 This agreement is legally and duly signed and delivered by each shareholder and constitute legal and binding obligations of each shareholder and is enforceable in accordance with this agreement.

 

5.1.4 When this agreement takes effect, each shareholder is a registered legitimate shareholder of the target company. Except for the rights under this agreement, the Equity Pledge Agreement signed with eHi Car Rental and the Exclusive Equity Transfer Option Agreement signed with the target company and eHi Car Rental, entrusted rights are free of any third party’s rights. In accordance with this agreement, the trustee may completely and fully exercise entrusted rights in accordance with Chinese laws and Articles of Association of the target company then in effect.

 

5.2  The target company and eHi Car Rental respectively represent and warrant as follows:

 

5.2.1  It is a limited liability company duly registered and legally existing in accordance with laws, has independent corporate capacity, has full and independent legal status and legal capacity to sign, deliver and perform this agreement and may independently behaves as a subject of litigation.

 

5.2.2 It has full right and authorization of signing and delivering this agreement and all other documents related to transactions under this agreement and full right and authorization of completing transactions under this agreement.

 

5.3 The target company further represents and warrants that each shareholder is a registered legitimate shareholder of the target company when this agreement takes effect. In accordance with this agreement, the trustee may completely and fully exercise entrusted rights in accordance with Chinese laws and Articles of Association of the target company then in effect.

 

5.4 Each party hereby confirms each shareholder has, in accordance with terms and conditions of Equity Pledge Agreement signed by each shareholder and eHi Car Rental on March 13, 2014, pledged shares respectively held by each shareholder in the target company to eHi Car Rental so as to guarantee each shareholder and the target company’s performance of obligations under this agreement.

 

Article VI Term of this Agreement

 

6.1 In accordance with Article 6.2, this agreement shall take effect after each party officially signs this agreement and remain effective until March 12, 2034, unless each party agrees to early terminate this agreement in writing or early terminate this agreement in accordance with Article 8.1 of this agreement.

 

6.2 If a shareholder transfers all shares in the target company upon the prior approval by eHi Car Rental, such shareholder will not be a party of this agreement but the obligations and commitments of other parties under this agreement shall not be affected.

 

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Article 7 Notice

 

7.1 Any notices, requests, requirements and other correspondences under this agreement or made in accordance with this agreement shall be served to related parties in writing.

 

7.2 If foregoing notices or other correspondences are sent through fax, they shall be deemed to have been served upon sending. In case of personal delivery, they shall be deemed to have been served upon personal delivery. In case of delivery through mail, they shall be deemed to have been served five (5) days after mailing.

 

Article VIII Liabilities for Breach

 

8.1 Each party agrees and acknowledges if either party (hereinafter referred to as “Breaching Party”) substantially beaches any provision under this agreement or substantially fails to perform any obligation under this agreement, such party shall be deemed to have constituted breach of this agreement (hereinafter referred to as “Breach”) and any other non-breaching party (hereinafter referred to as “Non-breaching Party”) shall have the right to require the breaching party to make correction or take remedial measures within the reasonable period. If the breaching party fails to make correction or take remedial measures within the reasonable period or within ten (10) days after non-breaching party informs breaching party of breach in writing and requires correction, non-breaching party shall have the right to, at its own discretion, determine to: (1) terminate this agreement and require the breaching party to make a full compensation for damages; or (2) require the breaching party to perform obligations under this agreement and make a full compensation for damages.

 

8.2 Notwithstanding other provisions of this agreement, effectiveness of this article shall survive suspension or termination of this agreement.

 

Article 9 Miscellaneous

 

9.1 This agreement is executed in Chinese in three (3) originals, with each party of this agreement holding one.

 

9.2 Execution, validation, performance, modification, interpretation and termination of this agreement shall be governed by laws of the People’s Republic of China.

 

9.3 Any disputes arising from or in connection with this agreement shall be settled by each party through negotiation. If no a consensus is reached within thirty (30) days after occurrence of disputes, such disputes shall be submitted to Shanghai Sub-commission of China International Economic and Trade Arbitration for arbitration in Shanghai in accordance with arbitration rules of such commission. Arbitration award shall be final and binding upon parties involved in disputes.

 

9.4 Any rights, authorities and remedies empowered by any terms of this agreement to either party shall not preclude any other rights, authorities or remedies conferred to such party by legal provisions and other terms of this agreement and either party’s performance of rights, authorities and remedies shall not preclude such party from performance of other rights, authorities and remedies conferred to such party.

 

9.5 Either party’s nonperformance or delayed performance of rights, authorities and remedies conferred by this agreement or laws (hereinafter referred to as “such rights”) will not result in waiver of such rights and any individual or partial waiver of such rights will not preclude

 

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performance of such rights in other forms and other performance of such rights.

 

9.6 Headings of this agreement are merely for convenience of reference and shall not be used for interpretation or affect interpretation of articles of this agreement under any circumstances.

 

9.7 Each term of this agreement is indivisible and independent from any other terms. If any one or more terms of this agreement become invalid, illegal or unenforceable at any time, effectiveness, legitimacy and enforceability of other terms of this agreement shall not be affected.

 

9.8 Any revision and supplement of this agreement shall be made in writing and shall not take effect until each party of this agreement duly signs.

 

9.9 Without prior written consent from eHi Car Rental, the target company and each shareholder shall not transfer any rights and/or obligations under this agreement to the third party. After giving a notice to each shareholder and the target company and on the precondition of not breaching Chinese laws, eHi Car Rental shall have the right to transfer its any rights and/or obligations to designate any third party.

 

9.10 This agreement shall be binding upon legitimate successor of each party.

 

(Remainder of Page Intentionally Left Blank)

 

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[Signature Page]

 

In witness whereof, this Agreement on Authorization to Exercise Shareholder’s Voting Power is signed by following parties on the date and in the place first written above.

 

 

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

 

Execution Page

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