Document:

EX-10.5

Exhibit 10.5

FORM
OF
EMPLOYMENT AGREEMENT

Between

China Lodging Group, Limited

And

an
Executive Officer

 

 

EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT (the “Agreement”) is signed on               in Shanghai, the
People’s Republic of China (“China”), between China Lodging Group, Limited, a limited liability
company organized and existing under the laws of the Cayman
Islands (the “Company”), and              , an individual residing at               (the “Employee”).

     IN CONSIDERATION OF the mutual covenants herein contained, and other good and
valuable consideration, the parties hereto agree as follows:

1. Employment

     The Company hereby agrees to employ the Employee and the Employee hereby agrees to
serve as an employee of the Company and one or more of its subsidiaries in such
capacities and upon such conditions as are hereinafter set forth.

2. Employment Period

     (a) Period of Employment. The Employee’s employment shall commence on               (the “Start Date”), and shall continue for a period of four (4) years from the
Start Date (the “Employment Period”), unless this Agreement is earlier terminated in
accordance with its terms.

     (b) Extension or Renewal. The Employment Period may be renewed or extended
for an additional period upon expiration of the initial Employment Period by written
agreement between the parties. Negotiation to renew or extend the Employment Period
shall be held at least sixty (60) days prior to expiration of the initial Employment
Period.

3. Responsibilities

     (a) Appointment. The Employee shall serve as               of the Company and shall devote his full time, attention and best efforts
to the business affairs of the Company and its subsidiaries. Unless the Board of Directors
determines otherwise, during the Employment Period, the Employee also
agrees to serve as                of the Company’s wholly owned subsidiaries in China (“WFOEs”) listed in Schedule A.

     (b) Duties. The              ’s responsibilities shall initially include (which responsibilities
may be amended by the Board of Directors from time to time if the Board of
Directors determines in good faith such amendment is in the best interests of the Company):

	 
	 
	 
	 		 	 

 

 

     (c) Board Supervision. The Employee shall be subject to the oversight and direction of
Board of Directors, which shall retain full power and authority for overseeing the management of
the business affairs of the Company.

4. Place of Employment; Devotion of Time to Business

     (a) Place of Employment. The Employee’s place of employment shall be in China. While
discharging his/her duties and responsibilities hereunder, the Employee may be required to travel
from time to time outside of China and, as a result, be temporarily absent from his/her place of
employment.

     (b) Devotion of Time to Business. The Employee is employed on a full-time basis, to
work generally for eight (8) hours per working day. The Company may adjust the Employee’s working
hours at any time due to its business requirements provided that such adjustment is in compliance
with any applicable laws and regulations. The Employee agrees to work such extra hours as necessary
to perform his/her duties and to travel as necessary. These extra hours may, on occasion,
necessitate working overtime for no additional remuneration from the Company.

5. Compensation

     (a) Base Salary. The Company shall pay (or cause to be paid by the WFOEs or any of the
Company’s subsidiaries) to the Employee an initial monthly gross
salary of RMB
             , payable as
specified below and pursuant to the Company’s usual payroll practices. The Company shall review the
Employee’s compensation within three (3) to six (6) months after

2

 

the Start Date to determine, in its sole discretion, if any adjustment to the Employee’s salary is
necessary.

     The
Employee’s salary shall be paid monthly in arrears no later than
the tenth (10th) day
of the following month and shall be paid directly to a bank account as designated by the
Employee. Subject to the Company’s discretion, the salary can be paid either in RMB or US Dollars.
The applicable exchange rate shall be the central parity rate as issued daily by the
People’s Bank of China on the last day of each month. The salary is payable in monthly
installments during each year, or any portion thereof, during the Employment Period.

     (b) Discretionary Bonus. The Employee is eligible to participate in the
Company’s annual performance bonus scheme. During the Employment Period, the Board of
Directors, in its sole discretion and in accordance with the Articles, may award (or cause to be
awarded) to the Employee an annual bonus based on the Employee’s performance and other
factors.

     (c) Executive Compensation Plans. In addition to the cash compensation provided for in
Sections 5(a) and (b), the Employee, subject to meeting eligibility provisions, shall be entitled
to participate in the Company’s executive compensation plans, including
management incentive plans, deferred compensation plans and stock option plans.

     (d) Benefits. In addition to the cash compensation provided in Sections
5(a) and (b), subject to meeting eligibility requirements, the Employee shall be
entitled to participate in all employee benefit plans of the Company, as presently in
effect or as modified or supplemented from time to time including plans for retirement
benefits, medical insurance, disability insurance and other benefits. The Employee
shall also be entitled to ten (10) days of paid vacation in the first two years of the
Employment Period and fifteen (15) days of paid vacation per year thereafter. All
benefits shall begin to accrue on the Start Date.

3

 

     (e) Expenses. The Company shall reimburse the Employee for travel and
other business expenses reasonably incurred and properly documented by the Employee in
the
performance of all his duties, and provide such other facilities and services as the Company and
the Employee may from time to time agree are appropriate, all in accordance with the Company’s
established practices.

     (f) Payer of Compensation. Subject to the Company’s discretion, all
compensation, salary, benefits and remuneration in this Agreement can be paid by the Company, the
WFOEs or its subsidiaries.

6. Representations

     The Employee hereby represents and warrants that the execution of this Agreement
and the performance of the Employee’s obligations hereunder will not breach or be in
conflict with any other agreement to which the Employee is a party or is bound and that
the Employee is not now subject to any covenants against competition or similar
covenants that would affect the performance of the Employee’s obligations under this
Agreement. The Employee will not disclose to or use on behalf of the Company any
proprietary information of a third party without such party’s consent.

7. Termination of Employment Period

     (a) Death. The Employment Period shall terminate automatically upon the
death of the Employee. The Company shall pay to the Employee’s beneficiaries or estate,
as appropriate, any compensation then due and owing,
including payment for accrued unused vacation, if any. Thereafter, all obligations
of the Company under this Agreement shall cease.

     (b) Disability. If, by reason of any physical or mental incapacity, the
Employee shall become permanently disabled in the Employment Period, the Company may
terminate the Employment Period upon fourteen (14) days’ advance written notice and the Company
shall pay the Employee the severance package as provided in Section 7(b) as well as all
compensation to which he is entitled pursuant to applicable law. For purposes hereof, “permanent
disability” means inability to perform the services of               required hereunder due to
physical or mental disability which continues for ninety (90) consecutive days. Nothing in this
Article shall affect the Employee’s rights under any applicable Company disability plan.

     (c) Termination by the Employee. If at any time during the Employment
Period, the Company fails, without the Employee’s consent and without “just cause” (as defined
below), to cause the Employee to be elected or re-elected as               of the Company or
otherwise as a full-time employee of the Company, or removes the Employee such office (other than
in connection with an amendment of the responsibilities of the

4

 

Employee if the Board of Directors determines in good faith such amendment is in the best
interests of the Company), the Employee shall have the right by
written notice to the Company to
terminate his services hereunder, effective as of the last day of the
first month after the receipt by the
Company of the written notice (or such earlier day as shall be individually agreed), in which event
the Employment Period shall so terminate on the last day of such month. Termination under the
circumstances described in this Section 7(c) shall be deemed as a termination by the Company other
than for “material breach” or “just cause” with all the consequences which flow from such
termination pursuant to Section 7(d).

     If the Employee exercises the Employee’s right of termination under this Section 6(c), the Employee
shall resign voluntarily as an employee of the Company and any of
its WFOEs and other subsidiaries on the date the Employee’s termination of employment becomes
effective as provided for in the preceding paragraph.

     (d) Termination by the Company other than for Material Breach or Just
Cause. If the Company should terminate the Employment Period for other than
material breach or just
cause, as herein defined, or if the Employee should terminate the Employment Period
pursuant to Section 7(c), the Company shall provide the Employee with thirty (30) days’ advance
written notice. The Company shall have the option, in its complete discretion, to terminate
the Employee at any time prior to the end of such notice period, provided the Company
pays the Employee all compensation due and owing through the last day actually worked, plus
an amount equal to the base salary the Employee would have earned through the balance of the
above notice period.

     “Material breach” and “just cause” shall mean (i) the continual failure by the
Employee to perform substantially his duties with the Company (other than any such failure
resulting from incapacity due to physical or mental illness) after a demand for substantial
performance is delivered to the Employee by the Board of Directors; (ii) conviction of a felony
or any conviction in relation to his negligent or willful misconduct; (iii) habitual
drunkenness; (iv) excessive absenteeism not related to illness, sick leave or vacations, but
only after notice from the Board of Directors followed by a repetition of such excessive
absenteeism; (v) dishonesty; (vi) continuous conflicts of interest after notice in writing from
the Board of Directors, (vii) the material breach of any fiduciary duty owed to the Company, as
determined in good faith by the Board of Directors; or (viii) the material breach of any of the
provisions of this Agreement, which breach is not cured within thirty (30) days after the Board
of Directors notifies the Employee in writing of such breach. Notwithstanding the foregoing, the
Employee shall not be deemed to have been terminated for material breach or just cause unless
and until there shall have been delivered to him a copy of a resolution duly adopted by the
Board of Directors at a meeting of the Board of Directors called and held (after reasonable
notice to the Employee and an opportunity for the Employee, together with the Employee’s
counsel, to be heard before the Board of Directors) for the purpose of determining whether in
the good faith

5

 

opinion of
the Board of Directors the Company has just cause to terminate the
Employee’s employment.

     (e) Termination by the Company for Material Breach or Just Cause. If
the Company should terminate the Employment Period for material breach or just
cause, as herein defined, the Employee will be entitled to be paid the base annual
salary otherwise payable to the Employee under Section 5(a) through the end of the
month in which the Employment Period is terminated.

     (f) Change in the Company Status. To the extent permitted by law, the
Company, in its sole discretion, may terminate the Employment Period (in which
case all of the Company’s obligations under this Agreement shall cease after
payment of all compensation due and owing) upon any formal action of the Company’s
management to terminate the Company’s existence or otherwise wind up its affairs,
to sell all or substantially all of its assets, or to merge with or into another
entity.

     (g) No Termination for Transfer of Work Location. Employee hereby
agrees to being physically transferred at any time during the Employment Period to
any one of the WFOEs or subsidiaries of the Company as well as any successor
entities of the Company. Such transfer is expressly permitted and agreed to
pursuant to this Agreement. In the event of such a
transfer, references to the Company as the employer in this Agreement shall
be deemed reference to such WFOE, subsidiary or successor of the Company.

     (h) Termination Obligations. Upon termination of this Agreement, the
Employee agrees that all property, including, without limitation, all equipment,
tangible confidential information, documents, records, notes, contracts and
computer-generated materials furnished to or prepared by the Employee incident to
his employment shall be returned promptly to the Company.

     (i) Due Practice. The Employee shall not, and shall not direct any
other person to, pay, offer to pay, promise or give to any government official, any
political party or official thereof, or to any candidate for political office (or
to any other person where such person knew or was aware of a high probability that
all or a portion of such money or thing of value will be paid, offered, promised or
given to any of those listed above) for the purpose of influencing any action,
omission or decision by such government official, political party, party official
or candidate or inducing any such person to use his influence with any government
entity, in order to assist the Company in obtaining or retaining business for the
Company or in directing business to the Company.

     (j) Non-Disclosure. The Employee shall not, at any time during or
following the Employment Period, disclose, use, transfer or sell, except in the
course of employment with the Company, any confidential information or proprietary
data of the Company and its

6

 

subsidiaries so long as such information or proprietary data remains confidential and has not been
disclosed or is not otherwise in the public domain, except as
required by law or pursuant to legal
process.

     (k) Non-Competition Agreement. At all times during the Employee’s employment with the
Company, the Employee is not permitted to engage in or carry on any full-time employment other than
his employment with the Company.

     Without the consent in writing of the Board of Directors, at all times
during the Employee’s employment with the Company or any of its subsidiaries and
for a period of two (2) years after the termination of the Employee’s employment
with the Company and all of its subsidiaries for any reason whatsoever, the
Employee will not permit his name to be used by, or engage in, or carry on,
directly or indirectly, either for himself or as a member of a partnership or as
a stockholder, investor, officer or director of a corporation or company or as an
employee, agent, associate or consultant of any person,
partnership or corporation or company, any business in competition with the
business carried on by the Company or any of its subsidiaries or affiliates in
China, including but not limited to competing businesses with respect to
acquiring, owning, enhancing, managing, operating or maintaining assets, real
property or other facilities for use in lodging-related business activities,
including, but not limited to limited service, deluxe, luxury, upscale, and
mid-scale with food and beverage service. To the extent any court or other
governmental authority with competent jurisdiction finds that compensation is
required under applicable law to enforce this Section 7(k), the Company shall
have the option to pay such compensation or waive its rights under this Section
7(k).

8. Taxes

     The Employee shall comply with the taxation laws of the applicable
jurisdiction. The Company may withhold tax for any amount payable to the Employee
if so required by the applicable laws and regulations.

9. Notices

     All notices under this Agreement shall be in writing and shall be deemed effective
when delivered in person, addressed, in the case of:

7

 

	 	(a)	 	The Employee, to:
	 
	 	 	 	 

	 
	 	(b)	 	The Company, to:
	 
	 	 	 	Floor 5, Building 57
	 
	 	 	 	No. 461 Hongcao Road
	 
	 	 	 	Shanghai 200233
	 
	 	 	 	The People’s Republic of China

10. Successors and Assigns

     Neither party may assign this Agreement or the rights and obligations hereunder
to any third party; provided, however, that the Company may assign its rights and
obligations under this Agreement to a successor entity to the Company as the result
of a merger or other corporate reorganization and which continues the business of the
Company, or to any subsidiary of the Company. This Agreement shall be binding upon
and shall inure to the benefit of the Employee, the Employee’s heirs, executors,
administrators and beneficiaries, and the Company and its successors.

11. Governing Law; Severability

     This Agreement is governed by and is to be construed and enforced in accordance
with the laws of the Hong Kong Special Administrative Region. If under such laws, any
portion of this Agreement at any time conflicts with any applicable law and
regulation, such portion shall be deemed to be modified to conform thereto, or if
that is not possible, to be omitted from this Agreement and the invalidity of any
such portion shall not affect the force, effect and validity of the remaining portion
hereof.

12. Entire Agreement

     This Agreement constitutes the entire understanding between the Company and the Employee
relating to the Employee’s employment by the Company and supersedes all prior written and oral
agreements and understandings with respect to the subject matter of
this Agreement, provided,
however, that nothing in this Agreement shall be deemed to terminate or

8

 

supersede the provisions of any confidentiality and nondisclosure agreements executed by the
parties hereto prior to the date of this Agreement, all of which agreements shall continue in full
force and effect until terminated in accordance with their respective terms, provided, further,
that the Employee may enter into separate employment agreements with subsidiaries of the
Company in China consistent with the terms hereof. In the event of a conflict between the
provisions of such other employment agreements and this Agreement, subject to applicable law, the
provisions of this Agreement shall prevail.

13. Amendments

     This Agreement may be amended only by a written instrument duly executed by the
Employee and a duly authorized representative of the Company other than the Employee.

14. The Employee’s Acknowledgement

     The Employee acknowledges (i) that he has consulted with or has had the
opportunity to consult with independent counsel of his own choice concerning this
Agreement and has been advised to do so by the Company, and (ii) that he has read and
understands the Agreement, is fully aware of its legal effect, and has entered into it
freely based on his own
judgment.

15. Language

     This Agreement is entered into in English only. Any Chinese translation of this
Agreement, if any, is for reference only and shall not be legally binding document. Accordingly,
the English version will prevail in the event of any inconsistency between the
English and any Chinese translations thereof.

9

 

IN WITNESS
WHEREOF, the Company and the Employee have caused this Agreement to be
executed on the date first written above.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	China
Lodging Group, Limited	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 		 	By:
	 		 	 
	 

	 	 
	 	 
	 	 	 	 
	 	 	 	 
	 

	 	Name:
	 	 
	 	 	 	Name:
	 		 	 
	 

	 	Title:
	 		 	 	 	 	 	 	 	 

10

 

SCHEDULE A

WFOES

11exv10w6

Exhibit 10.6

China Merchants Bank Co., Ltd.

Shanghai Branch

Facility Agreement

(For sharing facility of working capital loans without individual agreements)

January, 2008

1

 

Facility Agreement

(For sharing facility of working capital loans without other specific agreements)

Ref: 2009, Jing Zi, No. 21090619

1. Creditor: China Merchants Bank Co., Ltd. Shanghai Jingansi Branch (hereafter referred to as
“Party A”)

Principal: Xu Xuehong

2. Facility applicant: HanTing Xingkong (Shanghai) Hotel Management Co., Ltd.

Legal representative / Principal:

Sharing facility applicant: Lishan Senbao (Shanghai) Investment Management Co., Ltd.

Legal representative / Principal:

Sharing facility applicant: Yiju (Shanghai) Hotel Management Co., Ltd.

Legal representative / Principal:

Sharing facility applicant:

Legal representative / Principal:

    The above facility applicant and sharing facility applicants are hereafter individually or
collectively referred to as “Party B”.

Upon Party B’s application, Party A agrees to grant a loan facility to Party B for its use.
According to the relevant laws and regulations and based on full consultation, the two parties
agree to execute the Agreement on the following terms.

Article 1 Facility

1.1 Party A will grant Party B the facility amount of RMB 150,000,000 Yuan (including the
equivalent in other currency, converting on the exchange rate issued by Party A on the date of
transaction, and the same below), in the form of (chosen by “þ”):

þ
o Revolving facility of RMB 150,000,000 Yuan;

o Bullet facility of                      Yuan.

“Revolving facility” refers to the maximum amount of the facility’s principal balance granted by
Party A to Party B for continuing and revolving loans, trade finance, discounted notes, acceptance
of commercial draft, letters of guaranty, legal entity account overdrafts, domestic factoring etc.
during the facility term.

“Bullet facility” refers to Party B’s application to Party A during the facility term for multiple
facility transactions, the accumulated amount of which will not exceed the bullet facility amount
provided in this Agreement. The bullet facility cannot be revolved, and the corresponding sum of
the multiple facility transactions applied for by Party B accounts for the bullet facility amount
provided herewith until it is fully used.

“Trade finance” refers to the business of issuing L/C, import documentary bills, cargo collection
guaranty, import documentary collection, packing loan, export documentary bills, export documentary
collection, import/export remittance finance, short-term guaranty finance, import factoring, and
export factoring (exclusive of non-recourse dual-factoring or non-recourse dual-factoring within
Party A’s system, and the same below).

2

 

1.2 If Party A provides import factoring or domestic non-recourse factoring with Party B as the
payer, the receivables transferred from Party B to Party A shall be accounted within the
above-stated facility; if Party B applies to Party A for domestic recourse factoring or export
factoring, the basic purchase fund (basic acquisition fund) provided by Party A to Party B shall be
accounted within the above-stated facility.

1.3 If Party A, in keeping with its internal procedural requirements, designates CMB’s other
branches to re-issue the L/C to the beneficiary after its initial issuance, the import documentary
bills and cargo collection guaranty shall be accounted within the above-stated facility.

1.4 The security deposit or deposit pledge provided by Party B or any third party for individual
business transactions shall not be included in the above-stated facility, and the same below.

þ
1.5 Party A and Party B have previously executed the Facility Agreement No.
21080138, and the outstanding balance thereunder shall be automatically transferred to be
accounted within the facility under this Agreement. (click “þ” in o if applicable.)

Article 2 Facility Term

The facility term is 12 months, from June 23, 2009 to June 23, 2010. Party
B shall apply to Party A for use of the facility within the term, and application after the
expiration date of the facility term will not be accepted by Party A, unless otherwise provided
hereunder.

Article 3 Use of the Facility

3.1 Type and Scope of the Facility

The above facility is (choose between the two with “þ”):

o 3.1.1 Comprehensive facility, including (please fill in according to the facts):

                                         ,                                
         

                                         ,                                         

Meanwhile, Party B                     (“can” or “cannot”) adjust its use of the facility, and (choose
with “þ”):

     o all transaction types can be adjusted to use the facility;

     o some of the transaction types can be adjusted to use the facility, namely                                              
          
                    

      

 

þ 3.1.2 Working capital loan single facility.

3.2 During the facility term, the revolving facility can be used on a revolving basis but the
bullet facility cannot. Use of the facility shall be applied by Party B case-by-case and approved
by Party A accordingly.

     Party B will not execute a loan agreement with Party A case-by-case when applying for working
capital loans within the facility, but shall deliver to Party A an “Application Letter to

3

 

Draw under the Facility”. After Party A’s approval of the loan, the detailed provisions for
the drawing shall be based on corresponding loan debenture. If there is any discrepancy between the
Application Letter and the loan debenture in terms of amount, term, interest rate or use, the two
parties agree that the latter shall prevail.

If Party B applies for facility other than working capital loans and Party A agrees thereto, the
amount, term and specific use of each loan or other facility shall be stipulated in specific
transaction contracts (including loan debentures), agreements, or relevant transaction application
letters delivered by Party B and accepted by Party A.

The above-mentioned specific transaction contracts, agreements or relevant transaction application
letters are collectively referred to as “each specific contract”. Under domestic non-recourse
factoring, the “Notice to Transfer the Receivables” delivered by Party A and confirmed by Party B
with Party A’s acknowledgement shall be regarded as the execution of a “specific transaction
contract“ between the two parties.

3.3 The term of use of each loan within the facility or any other facility shall be determined
according to Party B’s business needs and Party A’s management guidelines, and the expiration date
of each specific transaction can be later than that of the facility term.

Article 4 Interest and Fees

The interest of loans and finance within the facility and other relevant fees of transaction shall
be stipulated in each specific contract.

Article 5 Guaranty Clause

5.1 All the debt owed by Party B to Party A under the Agreement shall be guaranteed jointly and
severally by Powerhills (Shanghai) Investment Management Co., Ltd, Yi Ju (Shanghai) Hotel
Management Co., Ltd, and Ji Qi, with maximum irrevocable guaranty delivered to Party A; and /
or

5.2 All the debt owed by Party B to Party A under the Agreement shall be secured by Powerhills
(Shanghai) Investment Management Co., Ltd with a mortgage (pledge) of the real estate
under its ownership or at its disposition subject to the mortgage contract executed between the two
parties.

Party A shall be entitled to refuse to release the facility to Party B if the guarantor does not
execute the mortgage document or complete the mortgage procedure under this provision.

5.3 All the debt owed by the sharing facility applicants of Party B to Party A shall be guaranteed
jointly and severally by the facility applicant of Party B, with a letter of commitment, i.e.
irrevocable guaranty, delivered to Party A.

Article 6 Party B’s Rights and Obligations

6.1 Party B is entitled to the following rights:

4

 

6.1.1 to request Party A to provide loans within the facility or other facility under the
Agreement;

6.1.2 to use the facility under the Agreement;

6.1.3 to request Party A to keep confidential information concerning production, operation, assets
and accounts provided by Party B, except where the provided laws and regulations or supervising
authorities require otherwise;

6.1.4 to assign the debt to a third party upon Party A’s consent.

6.2 Party B shall undertake the following obligations:

6.2.1 to truthfully provide documents and materials upon Party A’s request (including, but not
limited to, authentic periodic financial statements and annual reports upon Party A’s request,
material decisions and changes in production, operation and management), as well as information on
all the opening banks, accounts and balance of deposits and loans, and to cooperate with Party A’s
investigation, examination and review;

6.2.2 to be supervised by Party A in its use of loan funds and relevant production, operation and
financial situations;

6.2.3 to use the loans and/or other facility in compliance with the stipulations and/or commitments
in the Agreement and each specific contract;

6.2.4 to fully repay the principals and interests of the loans, advance payment and other facility
debt in time in compliance with the stipulations in the Agreement and each specific contract;

6.2.5 to obtain Party A’s written consent before assigning the whole or part of the debt to any
third party;

6.2.6 to inform Party A immediately, and to actively assist Party A in taking security measures for
safe repayment of the principals and interests of the loans, advance payment, other facility debt
and all the relevant costs in the event of any of the following:

     6.2.6.1 any significant financial losses, asset losses or other financial crises;

     6.2.6.2 provision of loans or guaranty for third party, or to provide mortgage (pledge) on its
owned assets (titles);

     6.2.6.3 merger (acquisition), split-off, reorganization, joint-venture (cooperation), transfer
of property rights (shareholders rights), reform to joint-stock company etc;

5

 

     6.2.6.4 business suspension, termination or revoking of business license, application for or
being applied for bankruptcy, dissolution etc;

     6.2.6.5 major crisis in the operations or financial situation of Party B’s controlling
shareholder or other affiliated companies that negatively affect its normal operations;

     6.2.6.6 major affiliated transactions with Party B’s controlling shareholder and other
affiliated companies that negatively affect its normal operations;

     6.2.6.7 any litigation, arbitration, criminal punishment or administrative penalty that causes
a significantly adverse effect on its operation or financial situation;

     6.2.6.8 any other material facts that could affect its repayment capability.

6.2.7 not to fail to manage or resort to its due claims, or to dispose of its major assets with no
consideration or by other improper methods.

Article 7 Party A’s Rights and Obligations

7.1 Party A is entitled to the following rights:

7.1.1 to ask Party B to fully repay the principals and interests of the loans, advance payment and
other facility debt in time under the Agreement and each specific contract;

7.1.2 to ask Party B to provide documents and materials relevant to its facility;

7.1.3 to know about Party B’s production, operation and finance situations;

7.1.4 to oversee Party B’s use of the loans and/or other facility for the purpose stipulated in the
Agreement and each specific contract;

7.1.5 to, in keeping with internal procedural requirements, delegate CMB’s other branch where the
beneficiary is located to re-issue the Letter of Credit after accepting Party B’s application for
issuance of the Letter of Credit;

7.1.6 to directly deduct from Party B’s account for its repayment of the debt under the Agreement
and each specific contract;

7.1.7 to transfer creditor’s rights on Party B to others, and to inform Party B by methods it
thinks appropriate, including but not limited to fax, mail, courier, and announcement in public
media etc, as well as to urge Party B to repay; and

7.1.8 other rights provided in the Agreement.

6

 

7.2 Party A shall assume the following obligations:

7.2.1 to grant loans or other facilites within the facility extent to Party B under the provisions
of the Agreement and each specific contract;

7.2.2 to keep confidential information on the production, operation, assets and financial
situations of Party B, except where the provided laws and regulations or supervising authorities
require otherwise.

Article 8 Special Warranty of Party B

8.1 Party B is comprised of legal entities incorporated and existing under PRC laws, and possesses
full civil capacity to execute and perform the Agreement;

8.2 Sufficient authorization to execute and perform the Agreement has been acquired from the board
of directors or other authorities;

8.3 The documents, materials and vouchers provided by Party B regarding itself, the guarantor, the
mortgagor (pledger) and the collateral are all true, correct, complete and effective, and do not
contain any material mistakes inconsistent with facts or omit any material facts;

8.4 Party B will strictly comply with the stipulations in each specific contract, the commitment
letter, trust receipt and other relevant documents signed with Party A;

8.5 At the time of signing the Agreement, there is no litigation, arbitration, criminal punishment
or administrative penalty that may have a significantly adverse effect on Party B or its major
assets, nor will such occur during the performance of the Agreement. In the case of any such
occurrence, Party B shall inform Party A immediately;

8.6 Party B will strictly comply with all national laws and regulations in its business operations,
conduct business strictly within the scope stipulated in its business license or duly approved, and
conduct the registration of its annual inspection on time;

8.7 Party B will maintain or enhance its current management expertise, ensuring to maintain and
increase the value of existing assets, and not give up any due right of credit, nor dispose of its
major assets without consideration or by other inappropriate means;

8.8 Party B shall not repay other long-term debt and                     ,                      in
advance without Party A’s permission;

8.9 At the time of signing, there is no other material fact existing to adversely affect Party B’s
performance of its obligations under the Agreement.

Article 9 Other Expenses

7

 

The cost of credit investigations, examinations and notarizations related to the Agreement, and all
expenses incurred by Party A to realize its creditor’s rights to Party B if Party B fails to repay
the debt, such as lawyer’s fees, litigation costs, travelling expenses, announcement costs and
service fees, shall all be born by Party B. Party B authorizes Party A to directly deduct from
Party B’s bank account with Party A, and in the event of a shortage will make up the balance
following Party A’s notification.

Article 10 Event of Default

10.1 It shall be regarded as an event of default if one of the following occurs to Party B such
that:

10.1.1 It is in breach of its obligation stipulated in Article 6.2.1 by sending Party A false
information or concealing any material facts, or not cooperating with Party A’s investigation,
check or review;

10.1.2 It is in breach of its obligation stipulated in Article 6.2.2 by not accepting or evading
Party A’s supervision of its use of credit loans as well as its production, operation and financial
situations;

10.1.3 It is in breach of its obligation stipulated in Article 6.2.3 by not using the loans and/or
other facilities for the purposes provided in the Agreement and each specific contract;

10.1.4 It is in breach of its obligation stipulated in Article 6.2.4 by not fully repaying the
principals and interests of the loans, advance payments and other facilities in time under the
Agreement and each specific contract;

10.1.5 It is in breach of its obligation stipulated in Article 6.2.5 by assigning its debt under
the Agreement to a third party without authorization from Party A; or in breach of its obligation
stipulated in Article 6.2.7 by failing to manage or recourse to its due creditor’s rights, or to
dispose of its main assets without consideration or by other inappropriate means;

10.1.6 It is in breach of its obligation stipulated in Article 6.2.6 by not timely informing Party
A of the occurrence of any cases stated therein, or not cooperating with Party A upon its request
to raise security measures for the repayment of the debt under the Agreement, or other cases as may
adversely affect the recovery of the loans at Party A’s discretion;

10.1.7 It is in breach of Article 8.1, 8.2, 8.5, or in violation of Article 8.3, 8.4, 8.6, 8.7,
8.8, or 8.9, and does not promptly correct its mistake upon Party A’s request;

10.1.8 Any other issues occur that Party A believes impair its lawful rights and interests.

10.2 It shall be regarded as an event of default if one of the following situations occurs to the

8

 

guarantor which Party A believes may adversely affect the guarantor’s security capability, but the
guarantor is not willing to eliminate the detrimental effects upon Party A’s request, or together
with Party B is not willing to add to change the guaranty conditions to cooperate with Party A:

10.2.1 A situation similar to any of those stated in Article 6.2.6;

10.2.2 It conceals its actual security capability or has not received authorization from the
authorities at the time of issuing the irrevocable guaranty;

10.2.3 It does not proceed with annual inspection in time;

10.2.4 It fails to manage or recourse to its due creditor’s rights, or disposes of its main assets
without consideration or by other inappropriate means;

10.3 It shall be regarded as an event of default if one of the following situations occurs to the
mortgagor (or pledger) that Party A believes may result in the invalidity of the mortgage (or
pledge) or insufficiency of the collateral, but the mortgagor (or pledger) is not willing to
eliminate the detrimental effects upon Party A’s request, or together with Party B is not willing
to add to or change the security conditions to cooperate with Party A:

10.3.1 It has no title or right to dispose of the collateral or there are disputes to the ownership
of the collateral;

10.3.2 The collateral has been leased, seized, detained, supervised or subject to legitimate
priority (including but not limited to priority of construction project payment), and/or such
status is concealed;

10.3.3 The collateral is transferred, leased, re-mortgaged or disposed of by any other
inappropriate means without Party A’s written consent, or even with Party A’s written consent the
income therefrom is not used to repay the debt owed to Party A upon Party A’s request;

10.3.4 The mortgagor fails to properly manage, maintain and repair the collateral resulting in its
substantial devaluation, or the mortgagor’s behavior directly endangers the collateral resulting in
its devaluation, or the mortgagor does not have the collateral insured as requested by Party A.

10.4 In the case of any event of default as stipulated in Article 10.1, 10.2, 10.3, Party A is
entitled to separately or collectively take the following measures:

10.4.1 Reducing the facility under the Agreement, or stop using the balance of the facility;

10.4.2 Recovering the principals and interests of the outstanding loans within the facility and
other related fees;

9

 

10.4.3 For drafts accepted by Party A or letters of credit, letters of guaranty or cargo collection
guaranty issued (including re-issued upon delegation) during the term of facility, whether
advancement is paid by Party A or not, Party A can ask Party B to increase the security sum, or to
transfer Party B’s deposit in its bank account with Party A to the security account as the security
sum to repay the advancement paid by Party A in future, or to have the sum of money under escrow of
third party as security to repay the advancement paid by Party A in future.

10.4.4 For outstanding receivables assigned from Party B under domestic recourse factoring or
export factoring, Party A can ask Party B to repurchase immediately; and for receivables assigned
from Party B under domestic non-recourse factoring or import factoring, Party A can recourse to
Party B immediately;

10.4.5 Directly deducting the deposit from Party B’s settlement account and/or other accounts for
the repayment of all the debt of Party B under the Agreement and each specific contract;

10.4.6 To seek recovery according to Article 13 of the Agreement.

Article 11 Change and Termination of the Agreement

The Agreement can be changed or terminated upon mutual negotiation and written agreement between
Party A and Party B, and shall remain valid before the execution of such an agreement. Neither
Party shall change, modify or terminate the Agreement unilaterally at its own discretion.

Article 12 Miscellaneous

12.1 It shall not impair, affect or limit any of Party A’s rights and interests under relevant laws
and regulations and as the creditor of the Agreement, or be considered as consent to or
acknowledgement of the breach of the Agreement by Party A, or be regarded as relinquishment of
Party A’s rights to take measures towards existing or future event of default if Party A has
tolerance or lenience for any of Party B’s default or delay, or postpones execution of its rights
or interests under the Agreement during the term of the Agreement.

12.2 If the Agreement becomes legally invalid or partly invalid for any reason, Party B shall
remain responsible for repaying all the debt hereunder. In such a case, Party A can terminate the
Agreement and seek recovery from Party B hereunder.

12.3 The notices and requests related to the Agreement between the two Parties shall be sent in
written form.

Contact address of Party A:

Contact address of Party B:

10

 

If they are hand-delivered, they shall be regarded as delivered when received and signed by the
recipient (if refused by the recipient, they shall be regarded as delivered on the date of
refusal); if sent in the mail, they shall be regarded as delivered seven days after their dispatch;
if sent by fax they shall be regarded as delivered following their transmission.

The date of announcement shall be regarded as being served if Party A informs Party B of the
transfer of the creditor’s rights or urges collection from Party B by means of announcement in
public media.

Either Party shall promptly inform the other if it changes its contact address, or shall shoulder
the potential losses therefrom on its own account.

12.4 The two Parties agree that in the case of the application letter of the business under trade
finance, it is satisfactory for Party B to chop with a reserved seal complying with the
Authorization Letter of Reserved Seal provided to Party A, of which the effect is recognized by
both parties.

12.5 The supplementary agreement in writing negotiated between and agreed upon by the two Parties
on the pending issues and changes of the Agreement, as well as each specific contract under the
Agreement, are appended to the Agreement and constitute an indivisible part of the Agreement.

12.6 Party B undertakes that the fund shall be used only as working capital for operation of the
outlets, not as investment capital.

12.7 Party B undertakes that Powerhills (Shanghai) Investment Management Co., Ltd. and Yi Ju
(Shanghai) Hotel Management Co., Ltd. may share the facility hereunder, not exceeding RMB 50M Yuan
respectively. If the Party A’s evaluation ratings of the sharing companies decline in the future,
Party A may stop the sharing facility.

12.8 Party B undertakes that the settlement sum by Party B in Party A will not be less than the
percentage of the facility.

12.9 Party B undertakes that single loans under the facility will not be longer than 8 months.

Article 13 Applicable Law and Dispute Settlement

13.1 The execution, interpretation and dispute settlement of the Agreement are all subject to PRC
laws, and Party A and Party B’s rights and interests are safeguarded by the same.

13.2 Disputes arising out of the performance of the Agreement shall be negotiated between the two
Parties for settlement. Failing such, either Party can (choose among the three with “þ”)

þ13.2.1 submit to Party A’s local People’s Court;

o13.2.2 submit to                      arbitration committee for arbitration;

o13.2.3 submit to (if this item is chosen, please choose between the two with “þ”)

11

 

oCIETAC

oCIETAC                      Branch

for arbitration according to financial dispute arbitration rules.

13.3 After the Agreement and each specific contract between the two Parties is notarized as
enforced, Party A can apply directly to the People’s Court with jurisdiction for enforcement of the
debt owed by Party B under the Agreement and each specific contract.

Article 14 Effectiveness of the Agreement

The Agreement shall become effective after being signed (or chopped) by both Parties’ legal
representatives/principals or their authorized agents and chopped with the common seal, until the
expiration of the facility or all the debt and other relevant expenses owed by Party B hereunder
are fully discharged (whichever is later).

Article 15 Supplementary Provision

The Agreement is executed in five counterparts of the same legal effect, with Party A and Party B
holding one copy each.

(No text hereunder)

12

 

(This page is for signing)

	 	 	 
	Party A: China Merchants Bank Co.,Ltd. Shanghai Jingansi Branch

	 	(chop)
	Principal or authorized agent
	 	 
	(signature/chop):
/s/ Xu Xuehong
	 	 
	 
	 	 
	Party B: HanTing Xingkong (Shanghai) Hotel Management Co., Ltd.

	 	(chop)
	Legal representative/Principal or authorized agent
	 	 
	(signature/chop):/s/
Zhang Tuo
	 	 
	 
	 	 
	Party B: Lishan Senbao (Shanghai) Investment Management Co., Ltd.

	 	(chop)
	Legal representative/Principal or authorized agent
	 	 
	(signature/chop):
/s/ Zhang Tuo
	 	 
	 
	 	 
	Party B: Yiju (Shanghai) Hotel Management Co., Ltd.

	 	(chop)
	Legal representative/Principal or authorized agent
	 	 
	(signature/chop):
/s/ Zhang Tuo
	 	 

Party B:                      (chop)

Legal representative/Principal or authorized agent

(signature/chop):

Signing Date: (June 19, 2009)

13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}]]