Document:

Exhibit 4.26

 

Supplement to Loan Contract

 

Contract No.:

 

Supplement to Loan Contract

 

Among

 

Shanghai eHi Car Rental Co., Ltd.

 

and

 

Shanghai Chenghuan Car Rental Co., Ltd.

 

Shanghai Chenghuan Car Service Co., Ltd.

 

Shanghai Chenghuan Business Consulting Co., Ltd.

 

Shanghai Benyuan Car Rental Co., Ltd.

 

Shanghai Dingxi Car Rental Co., Ltd.

 

Shanghai Er’xie Industry Co., Ltd.

 

Cheng Rong

 

Ji Haifeng

 

January, 2016

 

 

Supplement to Loan Contract

 

	
Party A:
    	
Shanghai eHi Car Rental Co., Ltd.
    
	
 
    	
 
    
	
Party B:
    	
Shanghai Chenghuan Car Rental Co., Ltd.
    
	
 
    	
 
    
	
 
    	
Shanghai Chenghuan Car Service Co., Ltd.
    
	
 
    	
 
    
	
 
    	
Shanghai Chenghuan Business Consulting   Co., Ltd.
    
	
 
    	
 
    
	
 
    	
Shanghai Benyuan Car Rental Co., Ltd.
    
	
 
    	
 
    
	
 
    	
Shanghai Dingxi Car Rental Co., Ltd.
    
	
 
    	
 
    
	
 
    	
Shanghai Er’xie Industry Co., Ltd.
    
	
 
    	
 
    
	
 
    	
Cheng Rong
    
	
 
    	
 
    
	
 
    	
Ji Haifeng
    

 

The foregoing parties are hereinafter collectively referred to as “Party B”.

 

Whereas:

 

Shanghai eHi Car Rental Co., Ltd. as Party A thereof entered into a Loan Contract (Contract No.:       ) (“Master Contract”) with Shanghai Chenghuan Car Rental Co., Ltd. (“Chenghuan Rental”) as Party B thereof on January 8, 2016.

 

Now therefore, upon friendly consultation, Party A and Party B have reached the following supplements to the Loan Contract:

 

Article 1   Party B warrants that it will complete all necessary formalities in relation to completing the following equity structure within 30 days upon receipt of the 1st installment of the loan by Party A, i.e. RMB18,000,000.

 

Shanghai Chenghuan Car Rental Co., Ltd. will become the 100% shareholder of Shanghai Chenghuan Car Service Co., Ltd., Shanghai Chenghuan Business Consulting Co., Ltd., Shanghai Benyuan Car Rental Co., Ltd., Shanghai Dingxi Car Rental Co., Ltd. and Shanghai Er’xie Industry Co., Ltd. respectively and the financial statements of the foregoing six companies of Party B will be incorporated into a consolidated financial statement pursuant to the Accounting 

 

 

Standard for Business Enterprises.  Upon completion of such restructuring,  Shanghai Chenghuan Car Rental Co., Ltd. will be referred to as “Chenghuan Rental” or the “Company”.

 

Article 2         Based on the audited consolidated financial statement of Chenghuan Rental as of December 31, 2016 by an auditing firm acceptable to Party A, the net asset profit ratio (i.e. consolidated net profit/consolidated net asset) of Chenghuan Rental is over 30% (excluding the profits generated from the inter-company transactions among these six companies) and various operating indices comply with Party A’s requirements, therefore Party A has the right to request when appropriate to convert its creditor’s rights against Chenghuan Rental into its direct investment in Chenghuan Rental.

 

Article 3         Within 18 months upon execution of the Loan Contract (RMB50,000,000) between Party A and Shanghai Chenghuan Car Rental Co., Ltd., Party A has the right to unilaterally elect to convert the loan of RMB50,000,000 in whole or in part into its equity interests in Chenghuan Rental.  Party B agrees that Party A has the right to make equity conversion in one of the following ways under which Party A may have a higher shareholding percentage:

 

3.1                               The valuation of Chenghuan Rental is RMB130,000,000 and Party A will elect to convert its creditor’s rights, i.e. RMB50,000,000 in whole or in part into its equity interests in Chenghuan Rental based on the foregoing valuation.  If Party A elects to convert its creditor’s rights, i.e. RMB50,000,000 in whole into its equity interests in Chenghuan Rental, the valuation of Chenghuan Rental upon conversion shall be RMB180,000,000 and Party A will acquire 30% equity interests of Chenghuan Rental on a fully diluted basis; or

 

3.2                               The actual shareholding percentage of Party A upon debt-equity conversion will be determined based on the net asset as reflected on the audit report issued by an auditing firm jointly appointed by the parties.

 

Article 4         If Chenghuan Rental meets the conditions set forth in Article 2, within 20 business days after Party A issues a written notice of debt-equity conversion, Party B shall assist Party A in entering into an equity investment agreement in writing.  Upon conversion of the creditor’s rights under the Master Contract into the Party A’s equity interest in Chenghuan Rental, Party A may discharge Shanghai Chenghuan Car Rental Co., Ltd. of its obligation for interest payment under the Master Contract (refundable if paid) and Party A has the right to receive all shareholder dividend of 2016 pursuant to its contribution percentage (before that no dividend shall be distributed by Shanghai Chenghuan Car Rental Co., Ltd. without the written consent of Party A).  Party B warrants that it will not impose any restriction on Party A’s dividend percentage, time or conditions in the articles of association of the Company or otherwise, and Party A shall have the right to profit distribution of the Company no less favorable than other shareholders.

 

Article 5         If Party A requests to convert its creditor’s rights into the equity interests in Chenghuan Rental, Party B shall ensure that it will obtain all necessary consents and approvals for such conversion and other shareholders will assist Party A in such conversion.

 

 

Article 6         After Party A becomes the shareholder of Chenghuan Rental, Party A will have the priority under the same conditions to acquire the shares to be sold by other shareholders or subscribe new shares of the Company based on its shareholding percentage, provided however, unless otherwise provided by the parties, the aggregate shareholding of Party A shall be no higher than 50%.

 

Article 7         As long as Party A is the shareholder of Chenghuan Rental and before the Company’s IPO, Party A shall have the following rights:

 

7.1                               If the existing shareholders of the Company transfer its equity interest in the Company to a third party, Party A shall have an option to:

 

a.                                      purchase the equity interests to be sold by the existing shareholders under the same terms and conditions offered by the third party; or

 

b.                                      sell its equity interest at the same percentage under the same terms and conditions offered by the existing shareholders.

 

7.2                               Party A shall have a priority to subscribe the capital increase by the Company (if any) at its then shareholding percentage in the Company, at the same price and under the same conditions.  Without the written consent of Party A, no new investor shall invest in the Company under any conditions favorable than that of Party A.  In the event of such situation, the parties shall coordinate with each other by taking practical adjustment method to ensure that the price at which Party A purchases the equity interests will be no higher than that of new investors, except those made under the management and employee equity incentive plan approved by the shareholders’ meeting.  The adjustment methods include but not limited to a compensation in cash or equity to Party A by the existing shareholders or other methods agreed by Party A.

 

7.3                               Without the consent of Party A, the Company shall not transfer in any way the equity interests in the Company under its participation or wholly control; unless otherwise agreed with Party A, the existing shareholders shall not in any way mortgage, guarantee or create any encumbrance for the interests of third parties on its equity interests in the Company; the Company shall not in any way mortgage, guarantee or create any encumbrance for the interests of third parties on the equity interests in the Company under its participation or wholly control。

 

7.4                               The “IPO” referred above means the initial public offering and listing approved by China Securities Regulatory Commission at Shanghai Stock Exchange or Shenzhen Stock Exchange and other overseas stock exchanges acceptable to Party A, or a listing made in a reverse merger way.

 

Article 8         This agreement is an integral part of the Master Contract and has the equal legal effect with the Master Contract.  In the event of any conflict between any document in relation to the subject matter hereof prepared before the date hereof and this agreement, this agreement shall prevail.

 

Article 9         This agreement shall become effective as of the date when it is signed and/or sealed by the parties.

 

 

Supplement to Loan Contract

 

[Signature Page]

 

	
Party A: Shanghai eHi Car Rental Co., Ltd.   (official seal)
    
	
 
    
	
Legal representative or authorized representative   (signature or seal):
    	
/s/ Zhang Ruiping
    
	
 
    
	
Party B: Shanghai Chenghuan Car Rental   Co., Ltd. (official seal)
    
	
 
    
	
Legal representative or authorized representative   (signature):
    	
/s/ Cheng Rong
    
	
 
    
	
Shanghai Chenghuan Car Service Co., Ltd.   (official seal)
    
	
 
    
	
Legal representative or authorized representative   (signature):
    	
/s/ Cheng Rong
    
	
 
    
	
Shanghai Chenghuan Business Consulting   Co., Ltd. (official seal)
    
	
 
    
	
Legal representative or authorized representative   (signature):
    	
/s/ Cheng Rong
    
	
 
    
	
Shanghai Benyuan Car Rental Co., Ltd.   (official seal)
    
	
 
    
	
Legal representative or authorized representative   (signature):
    	
/s/ Cheng Rong
    
	
 
    
	
Shanghai Dingxi Car Rental Co., Ltd. (official seal)
    
	
 
    
	
Legal representative or authorized representative   (signature):
    	
/s/ Zhu Ling
    
	
 
    
	
Shanghai Er’xie Industry Co., Ltd. (official   seal)
    
	
 
    
	
Legal representative or authorized representative   (signature):
    	
/s/ Cheng Rong
    
			

 

 

 

Chengrong (signature):

 

Ji Haifeng (signature):

 

Date:

 

Place:Exhibit 4.27

 

Guarantee Contract

 

Contract No.:

 

Guarantee Contract

 

between

 

Shanghai eHi Car Rental Co., Ltd.

 

and

 

Shanghai Chenghuan Car Service Co., Ltd.
 Shanghai Chenghuan Business Consulting Co., Ltd.
 Shanghai Benyuan Car Rental Co., Ltd.
 Shanghai Dingxi Car Rental Co., Ltd.
 Shanghai Erxie Car Rental Co., Ltd.

 

January 2016

 

 

Guarantee Contract

 

	
Lender (full   name):
    	
Shanghai eHi Car Rental Co., Ltd.
    
	
 
    	
 
    
	
Guarantor (full   name):
    	
Shanghai Chenghuan Car Service Co., Ltd.
    
	
 
    	
Shanghai Chenghuan Business Consulting   Co., Ltd.
    
	
 
    	
Shanghai Benyuan Car Rental Co., Ltd.
    
	
 
    	
Shanghai Dingxi Car Rental Co., Ltd.
    
	
 
    	
Shanghai Erxie Car Rental Co., Ltd.
    

 

To ensure the performance of the Loan Contract (contract No.[·]) (the “Master Contract”) entered into by and between Lender and Shanghai Chenghuan Car Rental Co., Ltd. (“Borrower”), Guarantor is willing to provide guarantee for the debt owed by Borrower to Lender under the Master Contract.  In accordance with the applicable laws and regulations of the PRC, the parties hereto enter into this Contract after friendly consultation.

 

Article One                               Type and Amount of Debt Guaranteed Hereunder

 

The type of the debt guaranteed hereunder is a loan in the principal amount of Renminbi Fifty Million Yuan (the “Loan”).

 

Article Two                             Scope of Guarantee

 

The scope of guarantee hereunder shall include the principal amount of the Loan and any applicable interest, penalty interest, liquidated damages, indemnity, and interest arising from delay in paying debts and payment for late performance imposed upon the borrower and the guarantor under the Civil Procedural Law, litigation/arbitration costs and all other expenses incurred by Lender to enforce its creditor’s right.

 

Article Three                    Form of Guarantee

 

The guarantee hereunder is a joint and several guarantee.  If there is more than one guarantor hereunder, the guarantors shall have joint and several liabilities to Lender.

 

Article Four                          Term of Guarantee

 

1.                                      The guarantee period hereunder shall be two years from the expiry date for payment of the Loan as agreed in the Master Contract.

 

2.                                      If Lender and Borrower agree on an extension of the term for repaying the Loan under the Master Contract, Guarantor agrees to continue to assume the liability of guarantee and the term of guarantee will be extended to end two years after the expiry date for repayment of the Loan under such agreement on extension of the original term.

 

3.                                      If the Loan under the Master Contract is declared due by Lender before the expiry date thereof due to any circumstance provided by law or agreed in the Master Contract, the term of guarantee hereunder shall be two years from the early expiry date of the Loan under the Master Contract.

 

Article Five                             Guarantor’s Covenants

 

 

1.                                      All authorizations required for the guarantee hereunder shall be acquired pursuant to the relevant provisions and procedures.

 

2.                                      It shall provide to Lender true, complete and valid financial statement, articles of association and other related data and information as required and shall subject itself to inspection by Lender of its production and operation and financial conditions.

 

3.                                      In the case of Borrower’s failure to repay the Loan as agreed in the Master Contract, Guarantor shall voluntarily perform its obligations hereunder.

 

4.                                      In the case of Guarantor’s failure to perform its obligations hereunder, Lender shall have the right to authorize the applicable bank to pay the appropriate amount from the bank account opened by Guarantor with such bank.

 

5.                                      Under any of the circumstances below, Guarantor shall immediately give a written notice to Lender:

 

(1)                                 any change in the name, domicile, legal representative, contact details or other information about Guarantor;

 

(2)                                 any change of control, replacement of senior officer, amendment of articles of association and change in organizational structure;

 

(3)                                 deterioration in Guarantor’s financial conditions or major difficulties in production and operation of Guarantor, or any major litigation or arbitration involving Guarantor;

 

(4)                                 suspension of production, winding-up or suspension of business for rectification of Guarantor, or application for bankruptcy or reorganization filed against Guarantor;

 

(5)                                 suspension or revocation of Guarantor’s business license, order of winding-up issued to Guarantor or any other dissolution event;

 

(6)                                 other situation of Guarantor which may have an adverse impact on Lender’s ability to enforce its rights under the Master Contract.

 

6.              Guarantor shall give a 15-day prior written notice to Lender and obtain Lender’s written consent if it intends to take any of actions below:

 

(1)                                 any change in Guarantor’s capital structure or business form, including but not limited to contractorship, lease, shareholding restructuring, association, merger, division, joint venture, capital decrease, asset transfer, application for reorganization, application for settlement and application for bankruptcy;

 

(2)                                 provision of guarantee for the debt of a third party or creation of mortgage or pledge upon its own asset to guarantee its own debt or any debt of a third party, which may have an adverse impact on Guarantor’s ability to perform its obligations hereunder.

 

 

Article Six                                    Performance of Guarantee Obligations

 

1.                                      Under any of the circumstances below, Lender shall have the right to request Guarantor to perform the guarantee obligations hereunder:

 

(1)                                 upon expiry of the term of the Master Contract, Lender has not been repaid for the Loan thereunder.  The term “expiry” means the expiry of the term for repaying the Loan under the Master Contract and declaration of an early expiry of the Loan under the Master Contract by Lender pursuant to the applicable laws and regulations of the PRC or pursuant to provisions of the Master Contract;

 

(2)                                 a bankruptcy application regarding Borrower is accepted by a people’s court or a ruling on a scheme of settlement is made by the court;

 

(3)                                 Borrower’s business license is suspended or cancelled or it is ordered to be wound up or any other dissolution event occurs;

 

(4)                                 Borrower or any other guarantor dies or is declared missing or dead;

 

(5)                                 Guarantor defaults on its obligations hereunder;

 

(6)                                 other circumstances which may have an adverse impact on Lender’s rights.

 

2.                                      If any collateral is provided (by Borrower or any third party) concurrently with the guarantee given hereunder to secure the Loan, Lender may recover the debt under the Master Contract by taking the collateral or requiring Guarantor to perform its guarantee obligations.  If Lender has chosen to recover the debt through either form of security provided above, it may also require the recovery of the debt (in whole or partially) through the other form of security provided above.

 

3.                                      If any collateral is provided by Borrower and Lender waives such security interests or its place of priority in such interests or modifies such interests, Guarantor agrees to continue to provide guarantee for the Loan under the Master Contract on a jointly and several basis as provided herein.  Such “security interests” mean the security interests created through provision of any collateral to secure the Loan under the Master Contract.

 

4.                                      If Guarantor provides guarantee for various debts between Borrower and Lender (including but not limited to the debt hereunder) and the amount paid by Guarantor is insufficient to pay off all the debts when they fall due, Lender shall have the right to determine the amount and order of payment of such debts.

 

5.                                      If Lender exercises the right of offset against Guarantor pursuant to applicable laws or the provisions hereof, Lender shall have the right to determine the amount and order of offsetting the debt hereunder; if Lender duly exercises the subrogation right, it shall have the right to determine the amount and order of the debt to be recovered from the subordinate debtor to Borrower.

 

 

Article Seven                     Liability for Breach

 

1.                                      Upon the effectiveness of this Contract, Lender shall indemnify Guarantor against any losses caused to Guarantor due to Lender’s failure to perform its obligations hereunder.

 

2.                                      In any of the cases below, Guarantor shall pay liquidated damages to Lender at the rate of 10% of the principal amount of the Loan secured hereunder and shall indemnify Lender against all losses so caused to Lender:

 

(1)                                 failure to obtain legal and valid authorizations required for the guarantee hereunder;

 

(2)                                 failure to provide true, complete and valid financial statements, articles of association and other related data and information as agreed herein;

 

(3)                                 failure to promptly notify Lender of any of the circumstance described in clause 5 under Article Five;

 

(4)                                 failure to obtain Lender’s prior consent before taking any of the actions described in clause 6 under Article Five;

 

(5)                                 any other action which breaches the provisions hereof or has an impact on Lender’s ability to recover the debt under the Master Contract.

 

Article Eight                       Opposition Period for Right of Offset and Right of Rescission

 

If Lender exercises the right of offset or right of rescission in accordance with applicable laws or this Contract, the opposition period granted to Guarantor shall be seven business days from the date the notice (oral, written or otherwise) to that effect is given to Guarantor.

 

Article Nine                            Dispute Resolution

 

The conclusion, validity, interpretation and performance of this Contract shall be governed by the laws of the People’s Republic of China.  All disputes arising from or in connection with this Contract shall be resolved by the parties hereto through friendly consultation.  If such consultation proves unsuccessful, either party shall have the right to bring a lawsuit before a people’s court of competent jurisdiction at the location of Party A.  During the period of litigation, the provisions hereof not in dispute shall continue to be complied with by the parties hereto.

 

Article Ten                                Other Provisions

 

1.                                      Guarantor has received and read the Master Contract for which it agrees to provide guarantee.

 

	    

    	
 
    	
 
    

 

Article Eleven               Effectiveness

 

 

This Contract shall take effect from the date of execution by the legal representatives or authorized representatives of both parties with the company seal of each party affixed hereto.

 

Article Twelve             This Contract is made in six counterparts; Lender shall hold one copy and each Guarantor shall hold one copy.  All counterparts shall have equal legal effect.

 

Guarantor’s statement: Lender has specifically brought to our attention the particular provisions hereof (esp. those in bold) and has explained to us the concept, content and legal effect of those provisions at our request, and we have been aware of and understood the above provisions.

 

[Remainder of this page intentionally left blank]

 

 

Signature page to the Guarantee Contract

 

	
Lender:
    	
Shanghai eHi Car Rental Co., Ltd. (company   seal)
    
	
 
    	
 
    
	
Legal   representative/authorized representative:
    	
/s/ Zhang   Ruiping
    	
 
    
	
 
    	
 
    
	
Guarantor:
    	
Shanghai Chenghuan Car Service Co., Ltd. (company   seal)
    
	
 
    	
 
    
	
Legal   representative/authorized representative:
    	
/s/ Cheng Rong
    	
 
    
	
 
    	
 
    
	
 
    	
Shanghai Chenghuan Business Consulting   Co., Ltd. (company seal)
    
	
 
    	
 
    
	
Legal   representative/authorized representative: 
    	
/s/ Cheng Rong
    	
 
    
	
 
    	
 
    
	
 
    	
Shanghai Benyuan Car Rental Co., Ltd. (company   seal)
    
	
 
    	
 
    
	
Legal   representative/authorized representative:
    	
/s/ Cheng Rong
    	
 
    
	
 
    	
 
    
	
 
    	
Shanghai Dingxi Car Rental Co., Ltd. (company   seal)
    
	
 
    	
 
    
	
Legal   representative/authorized representative:
    	
/s/ Cheng Rong
    	
 
    
	
 
    	
/s/ Zhu Ling
    	
 
    
	
 
    	
 
    
	
 
    	
Shanghai Erxie Car Rental Co., Ltd. (company   seal)
    
	
 
    	
 
    
	
Legal   representative/authorized representative:
    	
/s/ Cheng Rong
    	
 
    
				

 

	
Date of execution:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Place of execution:

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