Document:

Exhibit 10.7

 

Exclusive Technical Services and Consulting Agreement

 

between

 

Shanghai eHi Information Technology Service Co., Ltd.

 

and

 

Shanghai eHi Car Rental Co., Ltd.

 

March 13, 2014

 

 

Exclusive Technical Services and Consulting Agreement

 

This Exclusive Technical Services and Consulting Agreement (this “Agreement”) is made on March 13, 2014 in Shanghai, the People’s Republic of China (the “PRC”) by and between:

 

(1)                                 Shanghai eHi Information Technology Service Co., Ltd. (“Party A”)

Contact address: 12/F, Guosheng Center, No. 5 Lane 388, Daduhe Road, Putuo District, Shanghai

Legal Representative: Han Hongtao

 

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

Contact address: 12/F, Guosheng Center, No. 5 Lane 388, Daduhe Road, Putuo District, Shanghai

Legal Representative: Zhang Ruiping

 

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

 

RECITALS

 

Whereas, Party A is a limited liability company registered and lawfully existing in Shanghai, the PRC, which is mainly engaged in information science and technology;

 

Whereas, Party B is a limited liability company registered and lawfully existing in Shanghai, the PRC, which is mainly engaged in car rental;

 

Whereas, Party A needs Party B to provide it with licenses, technical support, technical consultation and other services relating to Party A’s Business (as defined below) and Party B agrees to provide such licenses and services to Party A.

 

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

 

Article 1                                    Definitions

 

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

 

	
“Annual Business Plan”
    	
means the Party   A’s Business development plan and budget report for the next calendar year to   be prepared by Party A in accordance with this Agreement by December 31   of each year with the assistance of Party B.
    
	
 
    	
 
    
	
“Customer Information”
    	
means all customer   information and other relevant documents with respect to Party A’s Business   and the Services provided by Party B.
    
	
 
    	
 
    
	
“Confidential   Information”
    	
means the business   secrets, proprietary information, jointly-
    

 

 

	
 
    	
owned Customer   Information, other relevant documents and any other information of a   confidential nature of the other Party coming into its knowledge during the   performance of this Agreement.
    
	
 
    	
 
    
	
“Defaulting Party”
    	
means one or more   of the Parties who breaches one or more of the provisions hereunder.
    
	
 
    	
 
    
	
“Default”
    	
means either   Party’s substantial breach or substantial failure to perform one or more of   the provisions hereunder.
    
	
 
    	
 
    
	
“Non-Defaulting Party”
    	
means one or more   of the Parties who faithfully performs one or more of the provisions   hereunder.
    
	
 
    	
 
    
	
“Devices”
    	
means any and all   devices owned or acquired from time to time by Party B and utilized for the   purposes of the provision of the Services.
    
	
 
    	
 
    
	
“Party A’s Business”
    	
means all of the   business activities operated and developed by Party A now and at any time   during the term hereof.
    
	
 
    	
 
    
	
“Receiving Party”
    	
means a Party who   receives the Confidential Information.
    
	
 
    	
 
    
	
“Party’s Rights”
    	
means any right,   power or remedy under this Agreement or Laws, which a Party fails or delays   in exercising.
    
	
 
    	
 
    
	
“Services”
    	
means the   technical support, technical consultation, technical training and other   services to be provided by Party B on an exclusive basis to Party A in   relation to Party A’s Business, including, without limitation:
    
	
 
    	
 
    
	
 
    	
(1)                                 licensing to Party A of relevant software   required for Party A’s Business;
    
	
 
    	
 
    
	
 
    	
(2)                                 providing Party A with total solutions of   technologies required for Party A’s Business;
    
	
 
    	
 
    
	
 
    	
(3)                                 routine management, maintenance and   updating of devices and databases;
    
	
 
    	
 
    
	
 
    	
(4)                                 training of professional technical   personnel of Party A;
    
	
 
    	
 
    
	
 
    	
(5)                                 assisting Party A with the collection and   research of the relevant technical information;
    

 

 

	
 
    	
 
    	
(6)                                 to the extent permitted by PRC Laws, other   relevant technical services and consultation services provided from time to   time at Party A’s request.
    
	
 
    	
 
    	
 
    
	
“Service Fees”
    	
 
    	
means all of the   fees payable by Party A to Party B under Section 3 hereof in respect of   the Services provided by Party B.
    
	
 
    	
 
    	
 
    
	
“Year”
    	
 
    	
means a calendar   year from January 1 to December 31.
    

 

1.2                               In this Agreement, any reference to any laws and regulations (the “Laws”) shall be deemed to include:

 

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

 

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

 

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

 

Article 2                                    Services

 

2.1                               To better conduct Party A’s Business, Party A needs Party B to provide it with the Services and Party B agrees to provide Party A with the Services.

 

2.2                               Party B shall provide Party A with the Services in accordance with the provisions of this Agreement and Party A shall provide convenience as much as possible to Party B’s Services.

 

Article 3                                    Service Fees

 

3.1                               In connection with the Services provided by Party B under Section 2 hereof, Party A agrees to pay Services Fees to Party B at twenty five percent (25%) of all of Party B’s revenues for the period from March 13, 2014 to March 12, 2034 and, thereafter, at a rate adjusted and determined annually upon mutual agreement between the Parties in writing.

 

3.2                                The Parties agree that Party A shall pay the Service Fees in accordance with the following provisions:

 

 

(1)                                  Party A shall pay the Service Fees to Party B on a quarterly basis.  Party A shall pay Party B the Services Fees specified in Section 3.1 for the preceding three (3) months prior to January 10, April 10, July 10 and October 10 each year.

 

(2)                                  After the end of each fiscal year of Party A, Party A and Party B shall verify the total operating revenues of Party A for the preceding Year based on an audit report issued by a PRC registered accounting firm acceptable to both Parties to calculate the performance-based services fees actually payable by Party A and adjust the fees accordingly (refund for any overpayment or payment for any shortfall) within fifteen (15) business days of the issuance of the audit report.  Party A undertakes to Party B that it will provide relevant PRC registered accounting firm with all necessary documents and assistance and cause it to prepare and issue an audit report for the preceding Year to the Parties within thirty (30) business days of the end of each Year.

 

3.3                                Party A shall, in accordance with this Section, remit all Service Fees into a bank account designated by Party B in a timely manner.  If Party B changes its bank account, it shall give Party A seven (7) business days’ written notice.

 

3.4                                The Parties may, subject to mutual agreement, enter into a supplementary agreement in the form attached hereto as Appendix 1 for each year starting from the Year 2015 to determine the calculation methods of the Service Fees under Section 3.1 hereof payable by Party A to Party B for the then current year.  The Parties shall conclude and sign such supplementary agreement through negotiation one month prior to the commencement of the current Year.

 

3.5                                If, during the term of this Agreement, Party B provides other services at the request of Party A, which services are not covered by this Agreement, the Parties agree to cooperate first in such a manner provided hereunder or closest possible to the manner provided hereunder and adjust in writing the calculation methods of the Service Fees set forth in Section 3 accordingly.

 

Article 4                                    Party A’s Obligations

 

4.1                                 Party B’s Services hereunder shall be exclusive; during the term hereof, without prior written consent of Party B, Party A shall not enter into any agreement with any third party to engage such third party to provide services identical or similar to the Services of Party B.

 

4.2                                 Party A shall, by December 1 of each year, provide to Party B its finalized Annual Business Plan of the next year such that Party B may prepare the relevant Services plan.  If Party A needs Party B to procure additional Devices on an ad hoc basis, it shall consult with Party B fifteen (15) days in advance so as to reach mutual agreement.

 

 

4.3                                 In order to facilitate Party B’s provision of the Services, Party A shall at Party B’s request provide in a timely manner such information as has been required by Party B.

 

4.4                                 Party A shall in accordance with Section 3 pay the full amount of the Service Fees to Party B in a timely manner.

 

4.5                                 Party A shall maintain its own good reputation, shall actively expand its business and shall seek maximization of its profits.

 

4.6                                 The Parties hereby acknowledge that, in accordance with the terms and conditions of the Equity Pledge Agreement dated March 10, 2014 by and between Party A and all shareholders of record as of the time of effectiveness of this Agreement (the “Existing Shareholders”), the Existing Shareholders have pledged their respective equity interests in Party A to Party B as security for performance by Party A of the obligations hereunder.

 

Article 5                                    Intellectual Property

 

5.1                                 All of the intellectual properties to and in the work products created during its provision of the Services shall be owned by Party B, except for the followings:

 

(1)                                   intellectual properties duly owned by a third party, which Party A or Party B has lawfully acquired the right to use, either by license or otherwise;

 

(2)                                   otherwise agreed to between the parties in writing.

 

Article 6                                    Confidentiality Obligations

 

6.1                                 During the term of this Agreement, the Customer Information shall be jointly owned by the Parties.

 

6.2                                 Irrespective of whether this Agreement has been terminated, each of Party A and Party B shall maintain in strict confidence the Confidential Information.  Except where prior written consent has been obtained from the other Party or where disclosure to a third party is mandated by relevant Laws or regulations or information disclosure requirements for public companies, the Receiving Party shall not disclose any Confidential Information or any part thereof to any third party; the Receiving Party shall not use, either directly or indirectly, any Confidential Information or any part thereof other than for the purpose of performing this Agreement.

 

6.3                               The following information shall not constitute the Confidential Information:

 

(a)                                   any information which, as shown by written evidence, has previously been known to the Receiving Party by way of legal means;

 

 

(b)                                   any information which enters the public domain or known to the public other than as a result of a fault of the Receiving Party;

 

(c)                                    any information lawfully acquired by the Receiving Party from another source subsequent to the receipt of relevant information.

 

6.4                                 The Receiving Party may disclose the Confidential Information to its relevant employees, agents or its appointed professionals provided that such Receiving Party shall ensure that such persons shall be bound by this Agreement, maintain the confidential of the Confidential Information and use the Confidential Information only for the purpose of performing this Agreement.

 

Article 7                                    Representations and Warranties

 

7.1                               Party A hereby represents, warrants and undertakes as follows:

 

7.1.1                           It is a limited liability company duly registered and lawfully existing under the Laws of the place of incorporation with independent legal personality, has full and independent legal status and capacity to execute, deliver and perform this Agreement and may sue or be sued as an independent party.

 

7.1.2                           It has full internal corporate power and authority to execute and deliver this Agreement and all other documents to be executed by them in connection with the transactions contemplated hereunder as well as full power and authority to consummate the transactions contemplated hereunder.  This Agreement will be lawfully and duly executed and delivered by it and will constitute its legal and binding obligations enforceable against it in accordance with its terms.

 

7.1.3                           It shall, within fifteen (15) business days following the end of each quarter, provide Party B with financial statements for the current quarter and budget for the next quarter and, within thirty (30) business days following the end of each Year, provide Party B with financial statements for the current year and budget for the next year.

 

7.1.4                           It shall timely inform Party B of any lawsuit it has been involved in and other circumstance which has a material adverse effect on it and shall use its best efforts to prevent the expansion of losses.

 

7.1.5                           Without written consent of Party B, Party A will not dispose of its material assets or change its current shareholding structure in whatsoever manner.

 

7.1.6                           It shall not enter into transactions which may materially affect Party A’s assets, liabilities, business operation, shareholding structure, equity interests held by a third party and other lawful rights (other than those entered into during the

 

 

ordinary or daily course of business or those have been disclosed to Party B and obtained Party B’s written consent).

 

7.2                               Party B hereby represents and warrants as follows:

 

7.2.1                           It is a limited liability company duly registered and lawfully existing under the Laws of the place of incorporation with independent legal personality, has full and independent legal status and capacity to execute, deliver and perform this Agreement and may sue or be sued as an independent party.

 

7.2.2                           It has full internal corporate power and authority to execute and deliver this Agreement and all other documents to be executed by them in connection with the transactions contemplated hereunder as well as full power and authority to consummate the transactions contemplated hereunder.  This Agreement will be lawfully and duly executed and delivered by it and will constitute its legal and binding obligations enforceable against it in accordance with its terms.

 

Article 8                                    Term of Agreement

 

8.1                               The Parties hereby acknowledge that, this Agreement shall become effective when it is duly executed by the Parties hereto.  The term of this Agreement shall last until March 12, 2034, in the absence of early termination by mutual written agreement.

 

8.2                               Upon termination hereof, the Parties shall continue to comply with their respective obligations under Sections 3 and 6.

 

Article 9                                    Compensation

 

Party A shall indemnify and hold harmless Party B against any and all losses suffered or likely to be suffered by Party B as a result of its provision of the Services, including without limitation to any losses arising out of any suit, recourse, arbitration or claims brought by any third party against it or any administrative investigation or sanction by any governmental authorities, but exclusive of any losses arising out of any willful misconduct or gross negligence of Party B.

 

Article 10                             Notice

 

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

 

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

 

 

Article 11                             Liability for Default

 

11.1                         The Parties agree and acknowledge that if any Party commits a Default, 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, then the Non-Defaulting Party shall have the right to, in its discretion, either (i) terminate this Agreement and demand the Defaulting Party to fully indemnify for damages, or (ii) demand the Defaulting Party to continue to perform the obligations hereunder and fully indemnify for damages.

 

11.2                         Notwithstanding any other provisions hereof, the validity of this Section 11 shall not be affected by any suspension or termination of this Agreement.

 

Article 12                             Force Majeure

 

If there occurs an earthquake, typhoon, flood, fire, war, computer virus, tool software design loophole, hacking attack on the Internet, change of policy or law or any other force majeure event which is unforeseeable and whose consequences are insurmountable or unavoidable and a Party is directly affected thereby in its performance of this Agreement or is prevented thereby from performing this Agreement on agreed terms, such prevented Party shall immediately notify the other Party by fax of the same and shall within thirty (30) days provide an evidencing document to be issued by the notary body of the place of the force majeure event setting forth the details of such force majeure and the reasons for such failure to perform, or for the need for postponed performance of, this Agreement.  The Parties shall in light of the extent of the effect of such force majeure event on the performance of this Agreement, agree on whether to waive performance of part of this Agreement or to permit postponed performance thereof.  No Party shall be held liable to indemnify the other Party against its economic losses resulting from a force majeure event.

 

Article 13                             Miscellaneous

 

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

 

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

 

13.3                        Any dispute arising out of or in connection with this Agreement shall be settled by the Parties through consultations and shall, in the absence of an agreement being reached by the Parties within thirty (30) days of its occurrence, be brought before China International Economic and Trade Arbitration Commission, Shanghai Commission for arbitration in

 

 

Shanghai in accordance with its arbitration rules.  The arbitral awards shall be conclusive and binding upon the parties to the dispute.

 

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 and any other provisions hereof and no exercise by a Party of any of its rights, powers and remedies shall preclude its exercise of other rights, powers and remedies.

 

13.5                        No failure or delay by a Party in exercising any right, power or remedy under this Agreement or Laws (“Party’s Rights”) shall result in a waiver of such rights; and no single or partial waiver by a Party of the Party’s Rights shall preclude such Party from exercising such rights in any other way or exercising such other 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                        All prior agreements, oral or written, between the Parties with respect to the subject matter hereof are superseded by this Agreement.  This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof.

 

13.8                        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.

 

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

 

13.10                 Without prior written consent of Party A, Party B may not assign any of its rights and/or obligations hereunder to any third party.  Party A, however, may, upon notice to Party B and to the extent permitted by the PRC Laws, assign any of its rights and/or obligations hereunder to any third party designated by it.

 

13.11                 This Agreement shall be binding upon the legal successors of the Parties.

 

13.12                 The Parties undertake to each file and pay, in accordance with law, the taxes involved in the transaction hereunder.

 

[Reminder of this page intentionally left blank]

 

 

[Signature Page]

 

IN WITNESS WHEREOF, the Parties have executed this Exclusive Technical Services and Consulting Agreement on the date and at the place first above written.

 

 

	
Party A: Shanghai eHi Information Technology Service Co.,   Ltd.
    	
 
    
	
(Seal)
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ Han Hongtao
    	
 
    
	
Name:
    	
 
    
	
Title: Authorized Representative
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Party B: Shanghai eHi Car   Rental Co., Ltd.
    	
 
    
	
(Seal)
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ Ruiping Zhang
    	
 
    
	
Name:
    	
 
    
	
Title: Authorized Representative
    	
 
    

 

 

Appendix 1:

 

Form Supplementary Agreement

 

This Supplementary Agreement to the Exclusive Technical Services and Consultation Agreement (this “Supplementary Agreement”) is made on                  in         , the People’s Republic of China (the “PRC”) by and between:

 

(1)                                 Shanghai eHi Information Technology Service Co., Ltd. (“Party A”)

Contact address: 12/F, Guosheng Center, No. 5 Lane 388, Daduhe Road, Putuo District, Shanghai

Legal Representative: Han Hongtao

 

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

Contact address: 12/F, Guosheng Center, No. 5 Lane 388, Daduhe Road, Putuo District, Shanghai

Legal Representative: Zhang Ruiping

 

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

 

In accordance with the Exclusive Technical Services and Consultation Agreement dated March 13, 2014 between the Parties, the Parties hereby enter into the following supplementary agreement:

 

Party A shall pay the Services Fees to Party B on a quarterly basis for the Year          in accordance with Section 3.2(1) of the Exclusive Technical Services and Consultation Agreement and the Service Fees shall be calculated as follows:                                                     .

 

	
Party A:
    	
 
    	
Party B:
    
	
 
    	
 
    	
 
    
	
Shanghai eHi Information Technology Service   Co., Ltd.
    	
 
    	
Shanghai eHi Car Rental Co., Ltd.
    
	
 
    	
 
    	
 
    
	
(Seal)
    	
 
    	
(Seal)
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
Name:
    	
 
    	
Name:
    
	
Title: Authorized Representative
    	
 
    	
Title: Authorized RepresentativeExhibit 10.8

 

LOAN AGREEMENT

 

between

 

HAN HONGTAO

 

and

 

SHANGHAI EHI CAR RENTAL CO., LTD.

 

March 10, 2014

 

 

LOAN AGREEMENT

 

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

 

BETWEEN:

 

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

 

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

 

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

 

WHEREAS:

 

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

 

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

 

SECTION I                              DEFINITIONS

 

1.1                               For the purposes of this Agreement:

 

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

 

“Amount” means any amount outstanding under the Loan.

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

1.4                               Headings are inserted for convenience only.

 

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

 

SECTION II                         EXTENSION OF LOANS

 

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

 

SECTION III                    INTEREST

 

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

 

SECTION IV                     REPAYMENT

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

SECTION V                          TAXES AND CHARGES

 

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

 

SECTION VI                     CONFIDENTIALITY

 

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

 

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

 

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

 

 

SECTION VII                                        NOTICE

 

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

 

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

 

SECTION VIII                                   LIABILITY FOR DEFAULT

 

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

 

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

 

SECTION IX                    MISCELLANEOUS

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

 

[EXECUTION PAGE]

 

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

 

 

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

 

 

LOAN AGREEMENT

 

between

 

XIE CHUN

 

and

 

SHANGHAI EHI CAR RENTAL CO., LTD.

 

March 10, 2014

 

 

LOAN AGREEMENT

 

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

 

BETWEEN:

 

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

 

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

 

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

 

WHEREAS:

 

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

 

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

 

SECTION I          DEFINITIONS

 

1.1          For the purposes of this Agreement:

 

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

 

“Amount” means any amount outstanding under the Loan.

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

1.4                               Headings are inserted for convenience only.

 

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

 

SECTION II        EXTENSION OF LOANS

 

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

 

SECTION III       INTEREST

 

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

 

SECTION IV       REPAYMENT

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

SECTION V         TAXES AND CHARGES

 

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

 

SECTION VI       CONFIDENTIALITY

 

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

 

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

 

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

 

 

SECTION VII     NOTICE

 

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

 

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

 

SECTION VIII    LIABILITY FOR DEFAULT

 

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

 

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

 

SECTION IX       MISCELLANEOUS

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

 

[EXECUTION PAGE]

 

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

 

 

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

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