UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of
1934
(Amendment No. 2)*
Information to be Included in Statements
Filed Pursuant to Rule 13d-1(a) and Amendments Thereto Filed Pursuant to Rule 13d-2(a)
Vimicro
International Corporation
(Name of Issuer)
Ordinary
Shares, par value US$0.0001 per share **
(Title of Class of Securities)
G9366M103
(CUSIP Number)
Zhonghan (John) Deng |
Shengda Zan |
Zhaowei (Kevin) Jin |
Room 906, Bank of Shanghai Tower |
Xiaodong (Dave) Yang |
168 Middle Yincheng Road, Shanghai |
15/F Shining Tower |
People’s Republic of China |
No. 35 Xueyuan Road |
|
Haidian District, Beijing 100083 |
|
People’s Republic of China |
|
With copies to:
Steven Liu, Esq.
Jerome J. Ku, Esq.
Gunderson Dettmer Stough Villeneuve Franklin
&
Hachigian, LLP
Suite 2101, Building C, Yintai Center,
#2 Jianguomenwai Ave., Chaoyang District
Beijing 100022, PRC
Facsimile: + (8610) 5680 3889
(Name, Address
and Telephone Number of Person Authorized to Receive Notices and Communications)
September
15, 2015
(Date of Event which Requires Filing of
this Statement)
If the filing person has previously filed a statement on Schedule
13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e),
240.13d-1(f) or 240.13d-1(g), check the following box. ¨
Note: Schedules filed in paper format shall include a
signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for other parties to whom copies are
to be sent.
|
* |
The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. |
|
** |
Not for trading, but only in connection with the listing on NASDAQ Global Market of American depositary shares, each representing four ordinary shares. |
The information required on the remainder of this cover page
shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”)
or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however,
see the Notes).
CUSIP No. G9366M103
1. |
NAMES OF REPORTING PERSONS |
|
|
|
Zhonghan (John) Deng |
|
|
2. |
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP |
|
|
|
(a) ¨ |
|
(b) ¨ |
|
|
3. |
SEC USE ONLY |
|
|
4. |
SOURCE OF FUNDS |
|
|
|
PF, OO |
|
|
5. |
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): ¨ |
|
|
6. |
CITIZENSHIP OR PLACE OF ORGANIZATION |
|
|
|
People’s Republic of China |
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH |
7. |
SOLE VOTING POWER
10,969,540 ordinary shares(1) |
|
|
8. |
SHARED VOTING POWER
0 |
|
|
9. |
SOLE DISPOSITIVE POWER
10,969,540 ordinary shares(1) |
|
|
10. |
SHARED DISPOSITIVE POWER
0 |
11. |
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
|
|
|
10,969,540 ordinary shares(1) |
|
|
12. |
CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |
|
(see instructions) ¨ |
|
|
13. |
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
|
|
|
8.4% |
|
|
14. |
TYPE OF REPORTING PERSON |
|
|
|
IN |
(1) This amount includes (a) 4,453,192 ordinary shares, (b)
15,000 American Depositary Shares (ADSs), representing 60,000 ordinary shares and (c) options to purchase 6,456,348 ordinary shares
within 60 days of September 14, 2015.
CUSIP No. G9366M103
1. |
NAMES OF REPORTING PERSONS |
|
|
|
Vimicro Beijing Corporation |
|
|
2. |
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP |
|
(a) ¨ |
|
(b) ¨ |
|
|
3. |
SEC USE ONLY |
|
|
4. |
SOURCE OF FUNDS |
|
|
|
PF, OO |
|
|
5. |
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): ¨ |
|
|
6. |
CITIZENSHIP OR PLACE OF ORGANIZATION |
|
|
|
British Virgin Islands |
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH |
7. |
SOLE VOTING POWER
4,513,192 ordinary shares(1) |
|
|
8. |
SHARED VOTING POWER
0 |
|
|
9. |
SOLE DISPOSITIVE POWER
4,513,192 ordinary shares(1) |
|
|
10. |
SHARED DISPOSITIVE POWER
0 |
11. |
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
|
|
|
4,513,192 ordinary shares(1) |
|
|
12. |
CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |
|
(see instructions) ¨ |
|
|
13. |
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
|
|
|
3.6% |
|
|
14. |
TYPE OF REPORTING PERSON (see instructions) |
|
|
|
CO |
(1) This amount includes (a) 4,453,192 ordinary shares and (b)
15,000 ADSs, representing 60,000 ordinary shares.
CUSIP No. G9366M103
1. |
NAMES OF REPORTING PERSONS |
|
|
|
Zhaowei (Kevin) Jin |
|
|
2. |
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP |
|
(a) ¨ |
|
(b) ¨ |
3. |
SEC USE ONLY |
|
|
4. |
SOURCE OF FUNDS |
|
|
|
PF, OO |
|
|
5. |
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): ¨ |
|
|
6. |
CITIZENSHIP OR PLACE OF ORGANIZATION |
|
|
|
People’s Republic of China |
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH |
7. |
SOLE VOTING POWER
4,285,471 ordinary shares(1) |
|
|
8. |
SHARED VOTING POWER
0 |
|
|
9. |
SOLE DISPOSITIVE POWER
4,285,471 ordinary shares(1) |
|
|
10. |
SHARED DISPOSITIVE POWER
0 |
11. |
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
|
|
|
4,285,471 ordinary shares(1) |
|
|
12. |
CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |
|
(see instructions) ¨ |
|
|
13. |
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
|
|
|
3.5% |
|
|
14. |
TYPE OF REPORTING PERSON (see instructions) |
|
|
|
IN |
(1) This amount includes (a) 1,391,851 ordinary shares, (b)
100,000 American Depositary Shares (ADSs), representing 400,000 ordinary shares and (c) options to purchase 2,493,620 ordinary
shares within 60 days of September 14, 2015.
CUSIP No. G9366M103
1. |
NAMES OF REPORTING PERSONS |
|
|
|
Vimicro Shenzhen Corporation |
|
|
2. |
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP |
|
(see instructions) |
|
(a) ¨ |
|
(b) ¨ |
3. |
SEC USE ONLY |
|
|
4. |
SOURCE OF FUNDS |
|
|
|
PF, OO |
|
|
5. |
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): ¨ |
|
|
6. |
CITIZENSHIP OR PLACE OF ORGANIZATION |
|
|
|
British Virgin Islands |
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH |
7. |
SOLE VOTING POWER
1,791,851 ordinary shares(1) |
|
|
8. |
SHARED VOTING POWER
0 |
|
|
9. |
SOLE DISPOSITIVE POWER
1,791,851 ordinary shares(1) |
|
|
10. |
SHARED DISPOSITIVE POWER
0 |
11. |
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
|
|
|
1,791,851 ordinary shares(1) |
|
|
12. |
CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES |
|
(see instructions) ¨ |
|
|
13. |
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) |
|
|
|
1.4% |
|
|
14. |
TYPE OF REPORTING PERSON (see instructions) |
|
|
|
CO |
(1) This amount includes (a) 1,391,851 ordinary shares and (b)
100,000 ADSs, representing 400,000 ordinary shares.
CUSIP No. G9366M103
1. |
NAMES OF REPORTING PERSONS |
|
|
|
Shengda Zan (“Mr. Zan”) |
|
|
2. |
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP |
|
(a) ¨ |
|
(b) ¨ |
3. |
SEC USE ONLY |
|
|
4. |
SOURCE OF FUNDS |
|
|
|
AF, WC |
|
|
5. |
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): ¨ |
|
|
6. |
CITIZENSHIP OR PLACE OF ORGANIZATION |
|
|
|
People’s Republic of China |
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH |
7. |
SOLE VOTING POWER
35,530,000 ordinary shares(1) |
|
|
8. |
SHARED VOTING POWER
0 |
|
|
9. |
SOLE DISPOSITIVE POWER
35,530,000 ordinary shares(1) |
|
|
10. |
SHARED DISPOSITIVE POWER
0 |
11. |
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
|
|
|
35,530,000 ordinary shares(1) |
|
|
12. |
CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |
|
(see instructions) ¨ |
|
|
13. |
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
|
|
|
28.6% |
|
|
14. |
TYPE OF REPORTING PERSON (see instructions) |
|
|
|
IN |
(1) This amount includes (i) 31,250,000 Ordinary Shares held
by Alpha Spring Limited (“Alpha Spring”); and (ii) 4,280,000 Ordinary Shares in form of 1,070,000 ADSs directly held
by Alpha Spring. Alpha Spring is wholly-owned by Nantong Zongyi Investment Co., Ltd. (“Nantong Zongyi”). Mr. Zan is
a member of the board of directors and is the legal representative of Nantong Zongyi. Mr. Zan is also a shareholder holding more
than 50% in Nantong Zongyi. Pursuant to Section 13(d) of the Act, each of Nantong Zongyi and Mr. Zan may be deemed to have the
sole voting and dispositive powers with respect to the Ordinary Shares held by Alpha Spring.
CUSIP No. G9366M103
1. |
NAMES OF REPORTING PERSONS |
|
|
|
Xiaodong (Dave) Yang |
|
|
2. |
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP |
|
(a) ¨ |
|
(b) ¨ |
|
|
3. |
SEC USE ONLY |
|
|
4. |
SOURCE OF FUNDS |
|
|
|
PF, OO |
|
|
5. |
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): ¨ |
|
|
6. |
CITIZENSHIP OR PLACE OF ORGANIZATION |
|
|
|
People’s Republic of China |
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH |
7. |
SOLE VOTING POWER
10,847,261 ordinary shares(1) |
|
|
8. |
SHARED VOTING POWER
0 |
|
|
9. |
SOLE DISPOSITIVE POWER
10,847,261 ordinary shares(1) |
|
|
10. |
SHARED DISPOSITIVE POWER
0 |
11. |
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
|
|
|
10,847,261 ordinary shares(1) |
|
|
12. |
CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |
|
(see instructions) ¨ |
|
|
13. |
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
|
|
|
8.6% |
|
|
14. |
TYPE OF REPORTING PERSON (see instructions) |
|
|
|
IN |
(1) This amount includes (a) 9,053,961 ordinary shares, (b)
108,325 American Depositary Shares (ADSs), representing 433,300 ordinary shares and (c) options to purchase 1,360,000 ordinary
shares within 60 days of September 14, 2015.
CUSIP No. G9366M103
1. |
NAMES OF REPORTING PERSONS |
|
|
|
Vimicro Tianjin Corporation |
|
|
2. |
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP |
|
(a) ¨ |
|
(b) ¨ |
|
|
3. |
SEC USE ONLY |
|
|
4. |
SOURCE OF FUNDS |
|
|
|
PF, OO |
|
|
5. |
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): ¨ |
|
|
6. |
CITIZENSHIP OR PLACE OF ORGANIZATION |
|
|
|
British Virgin Islands |
NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH |
7. |
SOLE VOTING POWER
9,053,961 ordinary shares |
|
|
8. |
SHARED VOTING POWER
0 |
|
|
9. |
SOLE DISPOSITIVE POWER
9,053,961 ordinary shares |
|
|
10. |
SHARED DISPOSITIVE POWER
0 |
11. |
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
|
|
|
9,053,961 ordinary shares |
|
|
12. |
CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |
|
(see instructions) ¨ |
|
|
13. |
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
|
|
|
7.3% |
|
|
14. |
TYPE OF REPORTING PERSON (see instructions) |
|
|
|
CO |
Preamble
This Amendment No. 2 (this “Amendment No. 2”) amends
the Schedule 13D filed by the Reporting Persons relating to the beneficial ownership of ordinary shares, par value US$0.0001 per
share (“Ordinary Shares”) and American depositary shares (the “ADSs”), each representing four Ordinary
Shares of the Issuer listed on the NASDAQ Global Market under the symbol “VIMC” (the “Issuer”) on August
17, 2015, as amended and supplemented by the Amendment No. 1 to the Schedule 13D filed on September 14, 2015 (the “Schedule
13D”). Except as specifically amended by this Amendment No. 2, the Schedule 13D remains in full force and effect. Capitalized
terms used but not defined in this Amendment No. 2 have the same respective meanings provided to them in the Schedule 13D.
ITEM 3. |
SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION |
Item 3 of the Schedule 13D hereby amended and supplemented as
follows:
Pursuant to the Merger Agreement (as defined below), Merger
Sub (as defined below) will be merged with and into the Issuer, with the Issuer surviving the Merger (as defined below) and becoming
a wholly-owned subsidiary of Parent (as defined below) as a result of the Merger. The descriptions of the Merger and the Merger
Agreement set forth in Item 4 below are incorporated by reference in their entirety into this Item 3. The information disclosed
in this paragraph is qualified in its entirety by reference to the Merger Agreement, a copy of which is filed as Exhibit 7.03,
and in incorporated herein by reference in its entirety.
It is anticipated that the total amount of funds necessary to
complete the Merger and the related transactions is approximately $310 million (assuming no exercise of dissenter rights by shareholders
of the Company), which is expected to be provided by Alpha Spring through a commitment to make loan to Parent in the aggregate
principal amount of $310 million pursuant to a debt commitment letter by Alpha Spring.
ITEM 4. |
PURPOSE OF TRANSACTION |
Item 4 of the Schedule 13D hereby amended and supplemented as
follows:
On September 11, 2015, Xiaodong (Dave) Yang (“Dr. Yang”)
and Vimicro Tianjin Corporation (“Vimicro Tianjin”), together with Dr. Zhonghan (John) Deng, Vimicro Beijing Corporation,
Mr. Zhaowei (Kevin) Jin, Vimicro Shenzhen Corporation and Mr. Shengda Zan entered into an amended and restated consortium agreement
(the “Restated Consortium Agreement”) pursuant to which the Consortium Agreement was amended and restated in its entirety
on substantially the same terms as the Consortium Agreement to provide for, among other things, the inclusion of Dr. Yang and Vimicro
Tianjin as new members of the Consortium in connection with the proposal to pursue the Proposed Transaction.
On September 15, 2015, the Issuer entered into an agreement
and plan of merger (the “Merger Agreement”) with Vimicro China (Parent) Limited, a Cayman Islands company (“Parent”)
and Vimicro Acquisition Limited, a Cayman Islands company and a wholly-owned subsidiary of Parent (“Merger Sub”). Pursuant
to the Merger Agreement, Merger Sub will be merged with and into the Issuer (the “Merger”), with the Issuer surviving
the Merger and becoming a wholly-owned subsidiary of Parent as a result of the Merger. At the effective time of the Merger, each
of the Issuer’s Class A Ordinary Shares issued and outstanding immediately prior to the effective time of the Merger (including
Ordinary Shares represented by ADSs) will be cancelled in consideration for the right to receive $3.375 per Ordinary Share or US$13.50
per ADS, in each case, in cash, without interest and net of any applicable withholding taxes, except for (i) the Rollover Shares
(as defined in the Merger Agreement), and (ii) Ordinary Shares owned by holders who have validly exercised and not effectively
withdrawn or lost their rights to dissent from the Merger pursuant to Section 238 of the Companies Law of the Cayman Islands, which
Ordinary Shares will be cancelled at the effective time of the Merger for the right to receive the fair value of such Ordinary
Shares determined in accordance with the provisions of Section 238 of the Companies Law of the Cayman Islands. The Merger is subject
to the approval of the Issuer’s shareholders and various other closing conditions.
Concurrently with the execution of the Merger Agreement, (i)
each of the Reporting Persons (other than Mr. Zan, collectively, the “Founder Parties”) entered into a limited guarantee
(the “Founder Limited Guarantee”) in favor of the Issuer, pursuant to which the Founder Parties severally and jointly
guarantee the due and punctual observance, performance and/or discharge of payment as and when due and subject to the conditions
and limitations set forth therein and in the Merger Agreement, of Parent’s obligation to pay a termination fee to the Company
under the Merger Agreement, subject to a cap of $6.7 million; and (ii) Nantong Zongyi and Alpha Spring (together with Nantong Zongyi,
collectively, the “Sponsor Guarantors”) entered into a limited guarantee in favor of the Issuer, pursuant to which
the Sponsor Guarantors guarantee the due and punctual observance, performance and/or discharge of payment as and when due and subject
to the conditions and limitations set forth therein and in the Merger Agreement of (a) Parent’s obligation to pay a termination
fee to the Company under the Merger Agreement and (b) Parent’s and Merger Sub’s funding of the merger consideration
under the Merger Agreement, subject to a cap of US$310,000,000 (the “Sponsor Limited Guarantee”).
Concurrently with the
execution of the Merger Agreement, the Reporting Persons entered into a rollover agreement (the “Rollover Agreement”)
with Parent and Merger Sub, pursuant to which, immediately prior to the closing of the Merger, each Rollover Share (as defined
in the Rollover Agreement) shall be cancelled and each Rollover Shareholder (as defined in the Rollover Agreement) shall subscribe
for the number of ordinary shares in Parent as set forth in the Rollover Agreement. Pursuant to the Rollover Agreement, immediately
prior to the closing of the Merger, Parent shall become wholly-owned by the Rollover Shareholders.
Concurrently with the
execution of the Merger Agreement, each of the Rollover Shareholders entered into voting agreements (each a “Voting Agreement”
and collectively, the “Voting Agreements”) with Parent and Merger Sub, pursuant to which the Rollover Shareholders
agreed, among other things, that each of them will vote the shares held by them in favor of the authorization and approval of the
Merger Agreement, the plan of merger and the transactions contemplated thereunder, including the Merger.
Concurrently with the
execution of the Merger Agreement, Alpha Spring entered into a commitment letter (the “Commitment Letter”) with Parent
and Merger Sub, pursuant to which Alpha Spring undertook to make a loan to Parent in the aggregate principal amount of $310
million.
If the Merger is completed, the ADSs would be delisted from
the NASDAQ Global Market and the Issuer’s obligations to file annual report under the Exchange Act would be terminated.
In addition, consummation of the Merger could result in one
or more of the actions specified in clauses (a)-(j) of Item 4 of Schedule 13D, including the acquisition or disposition of securities
of the Issuer, a merger or other extraordinary transaction involving the Issuer, a change to the Board (as the board of the surviving
company in the Merger) to consist solely of persons to be designated by the Reporting Persons, and a change in the Issuer’s
memorandum and articles of association to reflect that the Issuer would become a privately held company. No assurance can be given
that the Merger will be consummated.
Description of the Restated Consortium Agreement, the Merger
Agreement, the Founder Limited Guarantee, the Sponsor Limited Guarantee, the Commitment Letter, the Rollover Agreement, the Voting
Agreements which are attached hereto as Exhibit 7.02, 7.03, 7.04, 7.05, 7.06, 7.07, 7.08, 7.09, 7.10 and 7.11 and incorporated
by reference as if set forth in its entirety herein.
Item 5. |
INTEREST IN SECURITIES OF THE ISSUER |
Item 5 is hereby amended and restated
in its entirety to read as follows:
(a) – (b) The following disclosure assumes that there
are 124,263,310 Ordinary Shares outstanding as of September 14, 2015, as provided by the Issuer.
Ordinary Shares are not listed for trading. Each Ordinary Shares
is entitled to one vote on all matters subject to shareholder vote.
With respect to each of the Reporting Persons, the cover pages
of this Schedule 13D are incorporated herein by reference, as if set forth in their entirety.
By virtue of their actions in respect of the Proposed Transaction
as described herein, the Consortium may be deemed to constitute a “group” within the meaning of Rule 13d-5(b) under
the Exchange Act. Each Reporting Person expressly disclaims any beneficial ownership of such shares held by each other Reporting
Person.
(c) Except as set forth in Item 3 above and incorporated herein
by reference, none of the Reporting Persons has effected any transactions in the Ordinary Shares or ADSs during the 60 days preceding
the filing of this Schedule 13D.
(d) Not applicable.
(e) Not applicable.
ITEM 6. |
CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER. |
Description of the Restated Consortium Agreement, the Merger
Agreement, the Founder Limited Guarantee, the Sponsor Limited Guarantee, the Commitment Letter, the Rollover Agreement, the Voting
Agreements which are attached hereto as Exhibit 7.02, 7.03, 7.04, 7.05, 7.06, 7.07, 7.08, 7.09, 7.10 and 7.11 and incorporated
by reference as if set forth in its entirety herein.
ITEM 7. |
MATERIAL TO BE FILED AS EXHIBITS. |
Exhibit 7.011: |
Joint Filing Agreement, by and among the Reporting Persons, dated as of September 14, 2015 (incorporated herein by reference to Exhibit 7.01 to the Schedule 13D filed by Dr. Zhonghan (John) Deng, Mr. Zhaowei (Kevin) Jin, Vimicro Beijing Corporation, Vimicro Shenzhen Corporation, Dr. Xiaodong (Dave) Yang, Vimicro Tianjin Corporation, and Mr. Shengda Zan with the Securities and Exchange Commission on September 16, 2015). |
Exhibit 7.022: |
Amended and Restated Consortium Agreement by and among Dr. Zhonghan (John) Deng, Mr. Zhaowei (Kevin) Jin, Vimicro Beijing Corporation, Vimicro Shenzhen Corporation, Dr. Xiaodong (Dave) Yang, Vimicro Tianjin Corporation, and Mr. Shengda Zan, dated as of September 11, 2015 (incorporated herein by reference to Exhibit 7.02 to the Schedule 13D filed by Dr. Zhonghan (John) Deng, Mr. Zhaowei (Kevin) Jin, Vimicro Beijing Corporation, Vimicro Shenzhen Corporation, Dr. Xiaodong (Dave) Yang, Vimicro Tianjin Corporation, and Mr. Shengda Zan with the Securities and Exchange Commission on September 16, 2015). |
Exhibit 7.033: |
Agreement and Plan of Merger, dated as of September 15, 2015 (incorporated herein by reference to Exhibit 99.2 to Current Report on Form 6-K filed by the Issuer with the Securities and Exchange Commission on September 15, 2015). |
Exhibit 7.04: |
Founder Limited Guarantee, dated as of September 15, 2015. |
|
|
Exhibit 7.05: |
Sponsor Limited Guarantee, dated as of September 15, 2015. |
Exhibit 7.06: |
Commitment Letter, dated as of September 15, 2015. |
|
|
Exhibit 7.07: |
Rollover Agreement, dated as of September 15, 2015. |
Exhibit 7.08: |
Voting Agreement by and among, Alpha Spring Limited, Nantong Zongyi Investment Co., Ltd., Shengda Zan, Vimicro China (Parent) Limited and Vimicro China Acquisition Limited, dated as of September 15, 2015. |
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Exhibit 7.09: |
Voting Agreement by and among, Xiaodong (Dave) Yang, Vimicro Tianjin Corporation, Vimicro China (Parent) Limited and Vimicro China Acquisition Limited, dated as of September 15, 2015. |
Exhibit 7.10: |
Voting Agreement by and among, Zhonghan (John) Deng, Vimicro Beijing Corporation, Vimicro China (Parent) Limited and Vimicro China Acquisition Limited, dated as of September 15, 2015. |
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Exhibit 7.11: |
Voting Agreement by and among, Zhaowei (Kevin) Jin, Vimicro Shenzhen Corporation, Vimicro China (Parent) Limited and Vimicro China Acquisition Limited, dated as of September 15, 2015. |
_____________________________
1
Previously filed.
2
Previously filed.
3
Previously filed.
SIGNATURE
After reasonable inquiry and to the best
of its knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct.
Dated: September 25, 2015
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ZHONGHAN (John) DENG |
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By: |
/s/ Zhonghan (John) Deng |
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Vimicro Beijing Corporation |
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By: |
/s/ Zhonghan (John) Deng |
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Name: |
Zhonghan (John) Deng |
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Title: |
Director |
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ZHAOWEI (Kevin) JIN |
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By: |
/s/ Zhaowei (Kevin) Jin |
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Vimicro Shenzhen Corporation |
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By: |
/s/ Zhaowei (Kevin) Jin |
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Name: |
Zhaowei (Kevin) Jin |
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Title: |
Director |
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XIAODONG (DAVE) YANG |
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By: |
/s/ Xiaodong (Dave) Yang |
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Vimicro Tianjin Corporation |
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By: |
/s/ Xiaodong (Dave) Yang |
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Name: |
Xiaodong (Dave) Yang |
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Title: |
Director |
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SHENGDA ZAN |
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By: |
/s/ Shengda Zan |
Exhibit 7.04
FOUNDER LIMITED GUARANTEE
FOUNDER LIMITED GUARANTEE, dated as of September
15, 2015 (this "Founder Limited Guarantee"), by the persons listed on Schedule A (each, a "Guarantor"
and collectively, the “Founder Guarantor” or the "Guarantors") in favor of Vimicro International
Corporation, an exempted company with limited liability incorporated under the laws of the Cayman Islands (the "Guaranteed
Party"). Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Merger Agreement
(as defined below).
1. GUARANTEE. To induce the Guaranteed
Party to enter into an Agreement and Plan of Merger, dated as of the date hereof (as amended, restated, supplemented or otherwise
modified from time to time, the "Merger Agreement") by and among Vimicro China (Parent) Limited ("Parent"),
Vimicro China Acquisition Limited, a wholly-owned subsidiary of Parent ("Merger Sub"), and the Guaranteed Party,
pursuant to which Merger Sub will merge with and into the Guaranteed Party (the "Merger"), each of the Guarantors,
intending to be legally bound, hereby absolutely, irrevocably and unconditionally, severally and jointly, guarantees to the Guaranteed
Party the due and punctual observance, performance and/or discharge of payment as and when due, of such percentage as set forth
opposite such Guarantor’s name on Schedule A hereto of the Parent Termination Fee pursuant to Section 9.3(c) of the Merger
Agreement and subject to the terms and limitations of Section 9.3(d) of the Merger Agreement (the "Obligations");
provided that in no event shall the Guarantors' aggregate liability under this Founder Limited Guarantee exceed US$6,700,000
(the "Cap"), it being understood that this Founder Limited Guarantee may not be enforced without giving effect
to the Cap. All payments hereunder shall be made in lawful money of the United States, in immediately available funds. The Guarantors
promise and undertake to make all payments hereunder free and clear of any deduction, offset, defense, claim or counterclaim of
any kind. If Parent or Merger Sub is in breach of an Obligation, then the Guarantors' liabilities to the Guaranteed Party hereunder
in respect of such Obligation shall, at the Guaranteed Party's option, become immediately due and payable and the Guaranteed Party
may at any time and from time to time, at the Guaranteed Party's option, and so long as Parent or Merger Sub remains in breach
of such Obligation, take any and all actions available hereunder or under applicable law to collect such Obligation from the Guarantors
subject to the Cap. In furtherance of the foregoing, the Guarantors acknowledge that the Guaranteed Party may, in its sole discretion,
bring and prosecute a separate action or actions against the Guarantors for the full amount of the Obligations, regardless of whether
any action is brought against Parent or Merger Sub. The Guarantors agree to pay on demand all reasonable and documented out-of-pocket
expenses (including reasonable fees and expenses of counsel) incurred by the Guaranteed Party in connection with enforcement of
its rights hereunder if (i) the Guarantors assert in any litigation or other proceeding that this Guarantee is illegal, invalid
or unenforceable in accordance with its terms or (ii) the Guarantors fail or refuse to make any payment to the Guaranteed Party
hereunder when due and payable.
2. CHANGES IN OBLIGATION, CERTAIN WAIVERS.
The Guarantors agree that the Guaranteed Party may, in its sole discretion, at any time and from time to time, without notice to
or further consent of the Guarantors, extend the time of payment of the Obligations, and may also make any agreement with Parent
or Merger Sub for the extension or renewal thereof, in whole or in part, without in any way impairing or affecting the Guarantors'
obligation under this Founder Limited Guarantee or affecting the validity or enforceability of this Founder Limited Guarantee.
The Guarantors agree that the obligation of the Guarantors hereunder shall not be released or discharged, in whole or in part,
or otherwise affected by (a) the failure or delay on the part of the Guaranteed Party to assert any claim or demand or to enforce
any right or remedy against Parent or Merger Sub; (b) any change in the time, place or manner of payment of the Obligations or
any rescission, waiver, compromise, consolidation or other amendment or modification of any of the terms or provisions of the Merger
Agreement made in accordance with the terms of Section 9.4 thereof or any agreement evidencing, securing or otherwise executed
in connection with the Obligations; (c) the addition, substitution or release of any entity or other Person interested in the transactions
contemplated by the Merger Agreement; (d) any change in the corporate existence, structure or ownership of Parent, Merger Sub or
any other Person interested in the transactions contemplated by the Merger Agreement; (e) any insolvency, bankruptcy, reorganization
or other similar proceeding affecting Parent, Merger Sub or any other Person interested in the transactions contemplated by the
Merger Agreement; (f) the existence of any claim, set-off or other right which the Guarantors may have at any time against Parent,
Merger Sub or the Guaranteed Party or any of their respective Affiliates, whether in connection with the Obligations or otherwise
(other than defenses to the payment of the Obligations that are available to Parent or Merger Sub under the Merger Agreement);
(g) the adequacy of any other means the Guaranteed Party may have of obtaining payment related to the Obligation; or (h) any discharge
of the Guarantors as a matter of applicable law (other than as a result of, and to the extent of, payment of the Obligations in
accordance with the terms of the Merger Agreement). To the fullest extent permitted by applicable Law, the Guarantors hereby expressly
waive any and all rights or defenses arising by reason of any applicable Law which would otherwise require any election of remedies
by the Guaranteed Party. The Guarantors waive promptness, diligence, notice of the acceptance of this Founder Limited Guarantee
and of the Obligations, presentment, demand for payment, notice of non-performance, default, dishonor and protest, notice of the
Obligations incurred and all other notices of any kind (other than notices expressly required to be provided to Parent or Merger
Sub pursuant to the Merger Agreement), all defenses which may be available by virtue of any valuation, stay, moratorium Law or
other similar Law now or hereafter in effect, any right to require the marshalling of assets of Parent or Merger Sub or any other
Person interested in the transactions contemplated by the Merger Agreement, and all suretyship defenses generally (other than defenses
to the payment of the Obligations (x) that are available to Parent or Merger Sub under the Merger Agreement or (y) in respect of
a breach by the Guaranteed Party of this Founder Limited Guarantee. The Guarantors acknowledge that they will receive substantial
direct and indirect benefits from the transactions contemplated by the Merger Agreement and that the waivers set forth in this
Founder Limited Guarantee are knowingly made in contemplation of such benefits. The Guaranteed Party hereby covenants and agrees
that it shall not institute, and shall cause its respective Affiliates not to institute, any proceeding or bring any other claim
arising under, or in connection with, the Merger Agreement or the transactions contemplated thereby, against (a) the Guarantors
or (b) any of the respective former, current and future equity holders, controlling persons, directors, officers, employees, agents,
Affiliates, members, managers, general or limited partners or assignees of any Guarantor, Parent or Merger Sub or any former, current
or future stockholder, controlling person, director, officer, employee, general or limited partner, member, manager, Affiliate,
agent or assignee of any of the foregoing (but not including the Founder Guarantor, the Sponsor Guarantor (as defined under the
Sponsor Limited Guarantee), Parent or Merger Sub or their respective successors and assigns under the Merger Agreement, the Sponsor
Limited Guarantee or this Founder Limited Guarantee, collectively, each a "Non-Recourse Party"), except for claims
against (i) the Sponsor Guarantor and the Founder Guarantor and their respective successors and assigns (but not any Non-Recourse
Party) under the Sponsor Limited Guarantee and/or this Founder Limited Guarantee pursuant to the terms thereof or hereof, as applicable,
(ii) the signatories and their respective successor and assigns (but not any Non-Recourse Party) under the Commitment Letter or
pursuant to the terms thereof, (iii) Parent and Merger Sub and their respective successors and assigns under the Merger Agreement
pursuant to the terms thereof, (iv) all signatories and their respective successors and assigns under the Confidentiality Agreements
pursuant to the terms thereof, and (iv) any of the Rollover Shareholders or their respective successors and assigns (but not any
Non-Recourse Party) under the applicable Voting Agreement ((i), (ii), (iii), (iv) and (v) collectively, the "Founder Retained
Claims"). The Guarantors hereby unconditionally and irrevocably agree not to exercise any rights that they may now have
or hereafter acquire against Parent or Merger Sub that arise from the existence, payment, performance or enforcement of the Obligations
under or in respect of this Founder Limited Guarantee or any other agreement in connection therewith, including, without limitation,
any right of subrogation, reimbursement, exoneration, contribution or indemnification unless and until the Obligations and any
other amounts that may be payable under this Founder Limited Guarantee shall have been paid in full in cash. The Guarantors hereby
covenant and agree that they shall not institute, and shall cause their respective Affiliates (other than the Rollover Shareholders
or any of their Affiliates or any such Persons’ respective officers and directors) not to institute, any proceeding asserting
that this Founder Limited Guarantee is illegal, invalid or unenforceable in accordance with its terms. Notwithstanding anything
to the contrary contained in this Founder Limited Guarantee, the Guaranteed Party hereby agrees that to the extent Parent and Merger
Sub are relieved of any of their payment obligations under the Merger Agreement (other than by bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or other similar laws affecting creditors' rights generally, or general equitable principles
(whether considered in a proceeding in equity or at law)), the Guarantors shall be similarly relieved of their corresponding Obligations
under this Founder Limited Guarantee.
3. NO WAIVER; CUMULATIVE RIGHTS.
No failure on the part of the Guaranteed Party to exercise, and no delay in exercising, any right, remedy or power hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise by the Guaranteed Party of any right, remedy or power hereunder
preclude any other or future exercise of any right, remedy or power hereunder. Each and every right, remedy and power hereby granted
to the Guaranteed Party or allowed it by Law or other agreement shall be cumulative and not exclusive of any other, and may be
exercised by the Guaranteed Party at any time or from time to time. The Guaranteed Party shall not have any obligation to proceed
at any time or in any manner against, or exhaust any or all of the Guaranteed Party's rights against, Parent, Merger Sub or any
other Person liable for the Obligations prior to proceeding against the Guarantors hereunder.
4. REPRESENTATIONS AND WARRANTIES.
Each Guarantor hereby represents and warrants that:
(a) the execution, delivery and performance
of this Founder Limited Guarantee have been duly authorized by all necessary action and do not contravene any provision of such
Guarantor's charter, partnership agreement, operating agreement or similar organizational documents or any Law, regulation, rule,
decree, order, judgment or contractual restriction binding on such Guarantor or its assets;
(b) all consents, approvals, authorizations,
permits of, filings with and notifications to, any governmental authority necessary for the due execution, delivery and performance
of this Founder Limited Guarantee by such Guarantor have been obtained or made and all conditions thereof have been duly complied
with, and no other action by, and no notice to or filing with, any governmental authority or regulatory body is required in connection
with the execution, delivery or performance of this Founder Limited Guarantee;
(c) this Founder Limited Guarantee constitutes
a legal, valid and binding obligation of such Guarantor enforceable against such Guarantor in accordance with its terms, subject
to (i) the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other similar laws affecting
creditors' rights generally, and (ii) general equitable principles (whether considered in a proceeding in equity or at law); and
(d) such Guarantor has the financial capacity
to pay and perform its obligation under this Founder Limited Guarantee, and all funds necessary for such Guarantor to fulfill its
Obligations under this Founder Limited Guarantee shall be available to such Guarantor for so long as this Founder Limited Guarantee
shall remain in effect in accordance with Section 7 hereof.
5. NO ASSIGNMENT. Neither the Guarantors
nor the Guaranteed Party may assign or delegate their respective rights, interests or obligations hereunder to any other Person
without the prior written consent of the Guaranteed Party or the Guarantors, as the case may be.
6. NOTICES. All notices, requests,
claims, demands and other communications hereunder shall be given and shall be deemed to have been duly received (a) upon receipt
by hand delivery, (b) upon receipt after dispatch by registered or certified mail, postage prepaid, (c) on the next Business Day
if transmitted by national overnight courier with confirmation of delivery, or (d) upon confirmation of delivery if transmitted
by facsimile (but only if followed by transmittal by overnight courier or hand for delivery on the next Business Day), as follows:
if to the Guarantors:
15/F Shining Tower, No. 35 Xueyuan Road,
Haidian District, Beijing 100191, PRC
If to the Guaranteed Party, as provided
in the Merger Agreement.
7. CONTINUING GUARANTEE. This Founder
Limited Guarantee may not be revoked or terminated and shall remain in full force and effect and shall be binding on the Guarantors
and their respective successors and assigns until the Obligations have been satisfied in full. Notwithstanding the foregoing, this
Founder Limited Guarantee shall terminate and the Guarantors shall have no further obligation under this Founder Limited Guarantee
as of the earliest of (a) the Effective Time, (b) the termination of the Merger Agreement in accordance with its terms (other than
a termination of the Merger Agreement for which a Parent Termination Fee is, in accordance with Section 9.3(c) of the Merger Agreement,
due and owing by Parent (a "Qualifying Termination")) and (c) the 120th day after a Qualifying Termination unless
prior to the 120th day after such Qualifying Termination, the Guaranteed Party shall have commenced a legal proceeding against
Parent or Merger Sub alleging an amount is due and payable by Parent or Merger Sub under the Merger Agreement or against the Guarantors
alleging amounts payable by the Guarantors to the Guaranteed Party under this Founder Limited Guarantee, in which case this Founder
Limited Guarantee shall terminate upon either (i) a final, non-appealable resolution of such claim and payment of the Obligation
(subject to the Cap), if applicable or (ii) a written agreement signed by each of the parties hereto terminating this Founder Limited
Guarantee. If any payment or payments made by Parent or Merger Sub or any part thereof in respect of the Parent Termination Fee
are subsequently invalidated, declared to be fraudulent or preferential, set aside or are required to be repaid to a trustee, receiver
or any other person under any bankruptcy act, state or federal law, common law or equitable cause, then to the extent of such payment
or payments, the obligations or part thereof hereunder intended to be satisfied shall be revived and continued in full force and
effect as if said payment or payments had not been made. In the event that the Guaranteed Party or any of its Affiliates (other
than the Rollover Shareholders or any of their Affiliates or any such Persons’ respective officers and directors) institutes
any suit, action or proceeding or makes any claim (A) asserting that any of the provisions of this Founder Limited Guarantee are
illegal, invalid or unenforceable in whole or in part or that the Guarantors are liable in excess of or to a greater extent than
the Cap or (B) arising under, or in connection with, the Merger Agreement or any other document or agreement entered into in connection
with the Merger Agreement (other than the Founder Retained Claims), then (1) the Obligations of the Guarantors under this Founder
Limited Guarantee shall terminate ab initio and be null and void, (2) if the Guarantors have previously made any payments
under this Founder Limited Guarantee, they shall be entitled to recover such payments from the Guaranteed Party, and (3) neither
the Guarantors, Parent, Merger Sub nor any Non-Recourse Party shall have any liability to the Guaranteed Party or any of its Affiliates
(other than the Rollover Shareholders or any of their Affiliates or any such Persons’ respective officers and directors)
with respect to the transactions contemplated by the Merger Agreement or under this Founder Limited Guarantee.
8. NO RECOURSE. Notwithstanding anything
that may be expressed or implied in this Founder Limited Guarantee or any document or instrument delivered in connection herewith,
and notwithstanding the fact that a Guarantor may be a partnership or limited liability company, by its acceptance of the benefits
of this Founder Limited Guarantee, the Guaranteed Party acknowledges and agrees that (a) no Person other than the Guarantors (and
their respective successors and assigns) has any obligation hereunder and that no recourse shall be had hereunder, or for any claim
based on, in respect of, or by reason of, such obligation or their creation, against, and no personal liability shall attach to,
any Non-Recourse Party, through Parent, Merger Sub or otherwise, whether by or through attempted piercing of the corporate veil,
by or through a claim by or on behalf of the Guaranteed Party against any Non-Recourse Party, by the enforcement of any assessment
or by any legal or equitable proceeding, by virtue of any statute, regulation or applicable Law, or otherwise, and (b) the only
rights of recovery and claims that the Guaranteed Party has against the Founder Guarantor in respect of the Merger Agreement and
the transactions contemplated thereunder are the Founder Retained Claims. The Guaranteed Party acknowledges and agrees that Parent
and Merger Sub have no assets other than certain contract rights and cash in a de minimis amount and that no additional
funds are expected to be contributed to Parent or Merger Sub unless and until the Closing occurs. Recourse against the Guarantors
pursuant to this Founder Limited Guarantee shall be the sole and exclusive remedy of the Guaranteed Party and all of its Affiliates
(other than the Rollover Shareholders or any of their Affiliates or any such Persons’ respective officers and directors)
against the Guarantors, Parent or Merger Sub in respect of any liabilities or obligations arising under, or in connection with,
the Merger Agreement or the transactions contemplated thereby, except for any Founder Retained Claims. Nothing set forth in this
Founder Limited Guarantee shall confer or give or shall be construed to confer or give to any Person (including any Person acting
in a representative capacity) any rights or remedies against any Person including the Guarantors except as expressly set forth
herein.
9. NATURE OF GUARANTEE. The Guarantors'
liability hereunder is absolute, unconditional, irrevocable and continuing irrespective of any modification, amendment or waiver
of or any consent to departure from the Merger Agreement that may be agreed to by Parent or Merger Sub. The Guaranteed Party shall
not be obligated to file any claim relating to the Obligations in the event that Parent or Merger Sub becomes subject to a bankruptcy,
reorganization or similar proceeding, and the failure of the Guaranteed Party to so file shall not affect the Guarantors' obligation
hereunder. In the event that any payment to the Guaranteed Party in respect of any of the Obligations is rescinded or must otherwise
be returned for any reason whatsoever, the Guarantors shall remain liable hereunder with respect to such Obligation as if such
payment had not been made. This Founder Limited Guarantee is an unconditional and continuing guarantee of payment and not of collection,
and the Guaranteed Party shall not be required to initiate any legal proceedings against Parent or Merger Sub before proceeding
against the Guarantors hereunder.
10. GOVERNING LAW; JURISDICTION.
This Founder Limited Guarantee, and all claims and causes of action arising out of, based upon, or related to this Founder Limited
Guarantee or the negotiation, execution or performance hereof, shall be governed by, and construed, interpreted and enforced in
accordance with, the Laws of the State of New York, without regard to choice or conflict of law principles that would result in
the application of any Laws other than the Laws of the State of New York. In the event any dispute arises among the parties hereto
out of or in relation to this Founder Limited Guarantee, including any dispute regarding its breach, termination or validity, the
parties shall attempt in the first instance to resolve such dispute through friendly consultations. If any dispute has not been
resolved by friendly consultations within thirty (30) days after any party has served written notice on the other parties requesting
the commencement of such consultations, then any party may demand that the dispute be finally settled by arbitration in accordance
with the following provisions of this Section 10. The arbitration shall be conducted in accordance with the UNCITRAL Arbitration
Rules and the Hong Kong International Arbitration Centre ("HKIAC") Procedures for the Administration of International
Arbitration in force at the date of this Founder Limited Guarantee, which rules are deemed to be incorporated by reference in this
Section 10. The place of the arbitration shall be Hong Kong and the language of the arbitration shall be English. The appointing
authority shall be the HKIAC. There shall be three arbitrators, which shall be designated as set forth in Section 10.9 of the Merger
Agreement. The arbitration shall be conducted in private. The parties agree that all documents and evidence submitted in the arbitration
(including without limitation any statements of case and any interim or final award, as well as the fact that an arbitral award
has been made) shall remain confidential both during and after any final award that is rendered unless the parties hereto otherwise
agree in writing. Upon and after the submission of any dispute to arbitration, the parties shall continue to exercise their remaining
respective rights, and fulfill their remaining respective obligations under this Founder Limited Guarantee, except insofar as the
same may relate directly to the matters in dispute. The parties hereby agree that any arbitration award rendered in accordance
with the provisions of this Section 10 shall be final and binding upon them, and the parties further agree that such award
may be enforced by any court having jurisdiction over the party against which the award has been rendered or the assets of such
party wherever the same may be located. In any arbitration proceeding, any legal proceeding to enforce any arbitration award and
in any other legal proceeding among the parties pursuant to or relating to this Founder Limited Guarantee, each party expressly
waives the defense of sovereign immunity and any other defense based on the fact or allegation that it is an agency or instrumentality
of a sovereign state or is otherwise entitled to immunity. Each of the parties hereto agrees that notice or the service of process
in any action, suit or proceeding arising out of, based upon or relating to this Founder Limited Guarantee or the rights and obligations
arising hereunder shall be properly served or delivered if delivered in the manner contemplated by Section 6.
11. WAIVER OF JURY TRIAL. EACH OF
THE PARTIES HERETO IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY AND ALL RIGHT SUCH PARTY MAY HAVE TO
TRIAL BY JURY IN ANY LEGAL ACTION, SUIT OR PROCEEDING BETWEEN THE PARTIES HERETO ARISING OUT OF, BASED UPON OR RELATING TO THIS
FOUNDER LIMITED GUARANTEE OR THE NEGOTIATION, EXECUTION OR PERFORMANCE HEREOF.
12. COUNTERPARTS. This Founder Limited
Guarantee may be executed by facsimile and in one or more counterparts, and by the different parties hereto in separate counterparts,
each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same
agreement.
13. MISCELLANEOUS.
(a) This Founder Limited Guarantee contains
the entire agreement between the parties relative to the subject matter hereof. No modification or waiver of any provision hereof
shall be enforceable unless agreed to by the Guaranteed Party and the Guarantors in writing.
(b) Any provision hereof that is prohibited
or unenforceable in any jurisdiction shall be, as to such jurisdiction, ineffective solely to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction
shall not invalidate or render unenforceable such provision in any other jurisdiction.
(c) The descriptive headings herein are inserted
for convenience of reference only and are not intended to be part of or to affect the meaning or interpretation of this Founder
Limited Guarantee.
* * * * *
(signature pages
follow)
IN WITNESS WHEREOF, the Guarantors have
caused this Founder Limited Guarantee to be executed and delivered as of the date first written above by its officer thereunto
duly authorized.
Vimicro Beijing Corporation |
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|
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By: |
/s/ Zhonghan (John) Deng |
|
Name: Zhonghan (John) Deng |
Title: Director |
Zhonghan (John) Deng |
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|
|
|
By: |
/s/ Zhonghan (John) Deng |
|
Signature Page to the Founder Limited Guarantee
IN WITNESS WHEREOF, the Guarantors have
caused this Founder Limited Guarantee to be executed and delivered as of the date first written above by its officer thereunto
duly authorized.
Vimicro Shenzhen Corporation |
|
|
|
|
By: |
/s/ Zhaowei (Kevin) Jin |
|
Name: Zhaowei (Kevin) Jin |
Title: Director |
Zhaowei (Kevin) Jin |
|
|
|
By: |
/s/ Zhaowei (Kevin) Jin |
|
Signature Page to the Founder Limited Guarantee
IN WITNESS WHEREOF, the Guarantors have
caused this Founder Limited Guarantee to be executed and delivered as of the date first written above by its officer thereunto
duly authorized.
Vimicro Tianjin Corporation |
|
|
|
|
By: |
/s/ Xiaodong (Dave) Yang |
|
Name: Xiaodong (Dave) Yang |
Title: Director |
Xiaodong (Dave) Yang |
|
|
|
|
By: |
/s/ Xiaodong (Dave) Yang |
|
Signature Page to the Founder Limited Guarantee
IN WITNESS WHEREOF, the Guaranteed Party
has caused this Founder Limited Guarantee to be executed and delivered as of the date first written above by its officer thereunto
duly authorized.
VIMICRO INTERNATIONAL CORPORATION |
|
By: |
/s/ Charles (Chuck) K. Ng |
|
Name: Charles (Chuck) K. Ng |
Title: Director |
Signature Page to the Founder Limited Guarantee
SCHEDULE A
Guarantors | |
Guaranteed Percentage |
| |
|
Zhonghan (John) Deng and Vimicro Beijing Corporation | |
51% |
| |
|
Zhaowei (Kevin) Jin and Vimicro Shenzhen Corporation | |
10% |
| |
|
Mr. Xiaodong (Dave) Yang and Vimicro Tianjin Corporation | |
6% |
Exhibit 7.05
SPONSOR LIMITED GUARANTEE
SPONSOR LIMITED GUARANTEE,
dated as of September 15, 2015 (this "Sponsor Limited Guarantee"), by Alpha Spring Limited, a limited liability
company incorporated under the laws of the British Virgin Islands, and Nantong Zongyi Investment Co., Ltd., a limited company incorporated
under the laws of People’s Republic of China (each, a “Guarantor” and collectively, the "Sponsor
Guarantor" or the "Guarantors") in favor of Vimicro International Corporation, an exempted company with
limited liability incorporated under the laws of the Cayman Islands (the "Guaranteed Party"). Capitalized terms
used but not defined herein shall have the meaning ascribed to them in the Merger Agreement (as defined below).
1. GUARANTEE. To
induce the Guaranteed Party to enter into an Agreement and Plan of Merger, dated as of the date hereof (as amended, restated, supplemented
or otherwise modified from time to time in accordance with its terms, the "Merger Agreement") by and among Vimicro
China (Parent) Limited ("Parent"), Vimicro China Acquisition Limited, a wholly-owned subsidiary of Parent ("Merger
Sub"), and the Guaranteed Party, pursuant to which Merger Sub will merge with and into the Guaranteed Party (the "Merger"),
each of the Guarantors, intending to be legally bound, hereby absolutely, irrevocably and unconditionally, severally and jointly,
guarantees to the Guaranteed Party the due and punctual observance, performance and/or discharge of payment as and when due, of
(a) 33% of the Parent Termination Fee pursuant to Section 9.3(c) of the Merger Agreement and subject to the terms and limitations
of Section 9.3(d) of the Merger Agreement and (b) Parent and Merger Sub funding the aggregate Per Share Merger Consideration, Per
ADS Merger Consideration and Option Consideration pursuant to and in accordance with the terms and provisions of the Merger Agreement
(the "Obligations"); provided that in no event shall the Guarantor's aggregate liability under this Sponsor
Limited Guarantee exceed US$310,000,000 (the "Cap"), it being understood that this Sponsor Limited Guarantee may
not be enforced without giving effect to the Cap. All payments hereunder shall be made in lawful money of the United States, in
immediately available funds. The Guarantors promise and undertake to make all payments hereunder free and clear of any deduction,
offset, defense, claim or counterclaim of any kind. If Parent or Merger Sub is in breach of an Obligation, then the Guarantors'
liabilities to the Guaranteed Party hereunder in respect of such Obligation shall, at the Guaranteed Party's option, become immediately
due and payable and the Guaranteed Party may at any time and from time to time, at the Guaranteed Party's option, and so long as
Parent or Merger Sub remains in breach of such Obligation, take any and all actions available hereunder or under applicable law
to collect such Obligation from the Guarantors subject to the Cap. In furtherance of the foregoing, the Guarantors acknowledge
that the Guaranteed Party may, in its sole discretion, bring and prosecute a separate action or actions against the Guarantors
for the full amount of the Obligations, regardless of whether any action is brought against Parent or Merger Sub. The Guarantors
agree to pay on demand all reasonable and documented out-of-pocket expenses (including reasonable fees and expenses of counsel)
incurred by the Guaranteed Party in connection with enforcement of its rights hereunder if (i) the Guarantors assert in any litigation
or other proceeding that this Guarantee is illegal, invalid or unenforceable in accordance with its terms or (ii) the Guarantors
fail or refuse to make any payment to the Guaranteed Party hereunder when due and payable.
2. CHANGES IN OBLIGATION,
CERTAIN WAIVERS. The Guarantors agree that the Guaranteed Party may, in its sole discretion, at any time and from time to time,
without notice to or further consent of the Guarantors, extend the time of payment of the Obligations, and may also make any agreement
with Parent or Merger Sub for the extension or renewal thereof, in whole or in part, without in any way impairing or affecting
the Guarantors' obligation under this Sponsor Limited Guarantee or affecting the validity or enforceability of this Sponsor Limited
Guarantee. The Guarantors agree that the obligation of the Guarantors hereunder shall not be released or discharged, in whole or
in part, or otherwise affected by (a) the failure or delay on the part of the Guaranteed Party to assert any claim or demand or
to enforce any right or remedy against Parent or Merger Sub; (b) any change in the time, place or manner of payment of the Obligations
or any rescission, waiver, compromise, consolidation or other amendment or modification of any of the terms or provisions of the
Merger Agreement made in accordance with the terms of Section 9.4 thereof or any agreement evidencing, securing or otherwise executed
in connection with the Obligations; (c) the addition, substitution or release of any entity or other Person interested in the transactions
contemplated by the Merger Agreement; (d) any change in the corporate existence, structure or ownership of Parent, Merger Sub or
any other Person interested in the transactions contemplated by the Merger Agreement; (e) any insolvency, bankruptcy, reorganization
or other similar proceeding affecting Parent, Merger Sub or any other Person interested in the transactions contemplated by the
Merger Agreement; (f) the existence of any claim, set-off or other right which the Guarantors may have at any time against Parent,
Merger Sub or the Guaranteed Party or any of their respective Affiliates, whether in connection with the Obligations or otherwise
(other than defenses to the payment of the Obligations that are available to Parent or Merger Sub under the Merger Agreement);
(g) the adequacy of any other means the Guaranteed Party may have of obtaining payment related to the Obligation; or (h) any discharge
of the Guarantors as a matter of applicable law (other than as a result of, and to the extent of, payment of the Obligations in
accordance with the terms of the Merger Agreement). To the fullest extent permitted by applicable Law, the Guarantors hereby expressly
waive any and all rights or defenses arising by reason of any applicable Law which would otherwise require any election of remedies
by the Guaranteed Party. The Guarantors waive promptness, diligence, notice of the acceptance of this Sponsor Limited Guarantee
and of the Obligations, presentment, demand for payment, notice of non-performance, default, dishonor and protest, notice of the
Obligations incurred and all other notices of any kind (other than notices expressly required to be provided to Parent or Merger
Sub pursuant to the Merger Agreement), all defenses which may be available by virtue of any valuation, stay, moratorium Law or
other similar Law now or hereafter in effect, any right to require the marshalling of assets of Parent or Merger Sub or any other
Person interested in the transactions contemplated by the Merger Agreement, and all suretyship defenses generally (other than defenses
to the payment of the Obligations (x) that are available to Parent or Merger Sub under the Merger Agreement or (y) in respect of
a breach by the Guaranteed Party of this Sponsor Limited Guarantee. The Guarantors acknowledge that they will receive substantial
direct and indirect benefits from the transactions contemplated by the Merger Agreement and that the waivers set forth in this
Sponsor Limited Guarantee are knowingly made in contemplation of such benefits. The Guaranteed Party hereby covenants and agrees
that it shall not institute, and shall cause its respective Affiliates not to institute, any proceeding or bring any other claim
arising under, or in connection with, the Merger Agreement or the transactions contemplated thereby, against (a) the Guarantors
or (b) any of the respective former, current and future equity holders, controlling persons, directors, officers, employees, agents,
Affiliates, members, managers, general or limited partners or assignees of any Guarantor, Parent or Merger Sub or any former, current
or future stockholder, controlling person, director, officer, employee, general or limited partner, member, manager, Affiliate,
agent or assignee of any of the foregoing (but not including the Sponsor Guarantor, the Founder Guarantor (as defined under the
Founder Limited Guarantee), Parent or Merger Sub or their respective successors and assigns under the Merger Agreement, the Commitment
Letter, the Founder Limited Guarantee, or this Sponsor Limited Guarantee, collectively, each a "Non-Recourse Party"),
except for claims against (i) the Sponsor Guarantor, the Founder Guarantor, and their respective successors and assigns (but not
any Non-Recourse Party) under this Sponsor Limited Guarantee and/or the Founder Limited Guarantee pursuant to the terms hereof
or thereof, as applicable, (ii) the Guarantors and their respective successors and assigns (but not any Non-Recourse Party) under
the Commitment Letter or pursuant to the terms thereof, (iii) Parent and Merger Sub and their respective successors and assigns
under the Merger Agreement pursuant to the terms thereof, (iv) all signatories and their respective successors and assigns under
the Confidentiality Agreements pursuant to the terms thereof, and (v) any of the Rollover Shareholders or their respective successors
and assigns (but not any Non-Recourse Party) under the applicable Voting Agreement (including Mr. Shengda Zan and Nantong Zongyi
Investment Co., Ltd. as “Indirect Owner” under the Voting Agreement to which Alpha Spring Limited is a party) ((i),
(ii), (iii), (iv) and (v) collectively, the "Sponsor Retained Claims"). Each of the Guarantors hereby unconditionally
and irrevocably agrees not to exercise any rights that it may now have or hereafter acquire against Parent or Merger Sub that arise
from the existence, payment, performance or enforcement of the Obligations under or in respect of this Sponsor Limited Guarantee
or any other agreement in connection therewith, including, without limitation, any right of subrogation, reimbursement, exoneration,
contribution or indemnification unless and until the Obligations and any other amounts that may be payable under this Sponsor Limited
Guarantee shall have been paid in full in cash. Each of the Guarantors hereby covenants and agrees that it shall not institute,
and shall cause its Affiliates (other than the Rollover Shareholders or any of their Affiliates or any such Persons’ respective
officers and directors) not to institute, any proceeding asserting that this Sponsor Limited Guarantee is illegal, invalid or unenforceable
in accordance with its terms. Notwithstanding anything to the contrary contained in this Sponsor Limited Guarantee, the Guaranteed
Party hereby agrees that to the extent Parent and Merger Sub are relieved of any of their payment obligations under the Merger
Agreement (other than by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other similar laws affecting
creditors' rights generally, or general equitable principles (whether considered in a proceeding in equity or at law)), the Guarantors
shall be similarly relieved of their corresponding Obligations under this Sponsor Limited Guarantee.
3. NO WAIVER; CUMULATIVE
RIGHTS. No failure on the part of the Guaranteed Party to exercise, and no delay in exercising, any right, remedy or power
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise by the Guaranteed Party of any right, remedy
or power hereunder preclude any other or future exercise of any right, remedy or power hereunder. Each and every right, remedy
and power hereby granted to the Guaranteed Party or allowed it by Law or other agreement shall be cumulative and not exclusive
of any other, and may be exercised by the Guaranteed Party at any time or from time to time. The Guaranteed Party shall not have
any obligation to proceed at any time or in any manner against, or exhaust any or all of the Guaranteed Party's rights against,
Parent, Merger Sub or any other Person liable for the Obligations prior to proceeding against the Guarantors hereunder.
4. REPRESENTATIONS
AND WARRANTIES. Each Guarantor hereby represents and warrants that:
(a) the execution, delivery
and performance of this Sponsor Limited Guarantee have been duly authorized by all necessary action and do not contravene any provision
of such Guarantor's charter, partnership agreement, operating agreement or similar organizational documents or any Law, regulation,
rule, decree, order, judgment or contractual restriction binding on such Guarantor or its assets;
(b) all consents, approvals,
authorizations, permits of, filings with and notifications to, any governmental authority necessary for the due execution, delivery
and performance of this Sponsor Limited Guarantee by such Guarantor have been obtained or made and all conditions thereof have
been duly complied with, and no other action by, and no notice to or filing with, any governmental authority or regulatory body
is required in connection with the execution, delivery or performance of this Sponsor Limited Guarantee;
(c) this Sponsor Limited
Guarantee constitutes a legal, valid and binding obligation of the Guarantor enforceable against the Guarantor in accordance with
its terms, subject to (i) the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other similar
laws affecting creditors' rights generally, and (ii) general equitable principles (whether considered in a proceeding in equity
or at law); and
(d) such Guarantor has the
financial capacity to pay and perform its obligation under this Sponsor Limited Guarantee, and all funds necessary for such Guarantor
to fulfill its Obligations under this Sponsor Limited Guarantee shall be available to such Guarantor for so long as this Sponsor
Limited Guarantee shall remain in effect in accordance with Section 7 hereof.
5. NO ASSIGNMENT.
Neither the Guarantors nor the Guaranteed Party may assign or delegate their respective rights, interests or obligations hereunder
to any other Person without the prior written consent of the Guaranteed Party or the Guarantors, as the case may be.
6. NOTICES. All
notices, requests, claims, demands and other communications hereunder shall be given and shall be deemed to have been duly received
(a) upon receipt by hand delivery, (b) upon receipt after dispatch by registered or certified mail, postage prepaid, (c) on the
next Business Day if transmitted by national overnight courier with confirmation of delivery, or (d) upon confirmation of delivery
if transmitted by facsimile (but only if followed by transmittal by overnight courier or hand for delivery on the next Business
Day), as follows:
if to the Guarantors:
Alpha Spring Limited
Room 906, Bank of Shanghai Tower,
168 Middle Yincheng Road,
Pudong District, Shanghai,
People’s Republic of China
Fax No.: +8621 6859-1615
Attn: David Lee
If to the Guaranteed Party, as provided in
the Merger Agreement.
7. CONTINUING GUARANTEE.
This Sponsor Limited Guarantee may not be revoked or terminated and shall remain in full force and effect and shall be binding
on each of the Guarantors and its successors and assigns until the Obligations have been satisfied in full. Notwithstanding the
foregoing, this Sponsor Limited Guarantee shall terminate and the Guarantors shall have no further obligation under this Sponsor
Limited Guarantee as of the earliest of (a) the Effective Time, (b) the termination of the Merger Agreement in accordance with
its terms (other than a termination of the Merger Agreement for which a Parent Termination Fee is, in accordance with Section 9.3(c)
of the Merger Agreement, due and owing by Parent (a "Qualifying Termination")) and (c) the 120th day after a Qualifying
Termination unless prior to the 120th day after such Qualifying Termination, the Guaranteed Party shall have commenced a legal
proceeding against Parent or Merger Sub alleging an amount is due and payable by Parent or Merger Sub under the Merger Agreement
or against the Guarantors alleging amounts payable by the Guarantors to the Guaranteed Party under this Sponsor Limited Guarantee,
in which case this Sponsor Limited Guarantee shall terminate upon either (i) a final, non-appealable resolution of such claim and
payment of the Obligation (subject to the Cap), if applicable or (ii) a written agreement signed by each of the parties hereto
terminating this Sponsor Limited Guarantee. If any payment or payments made by Parent or Merger Sub or any part thereof in respect
of the Parent Termination Fee are subsequently invalidated, declared to be fraudulent or preferential, set aside or are required
to be repaid to a trustee, receiver or any other person under any bankruptcy act, state or federal law, common law or equitable
cause, then to the extent of such payment or payments, the obligations or part thereof hereunder intended to be satisfied shall
be revived and continued in full force and effect as if said payment or payments had not been made. In the event that the Guaranteed
Party or any of its Affiliates (other than the Rollover Shareholders or any of their Affiliates or any such Persons’ respective
officers and directors) institutes any suit, action or proceeding or makes any claim (A) asserting that any of the provisions of
this Sponsor Limited Guarantee are illegal, invalid or unenforceable in whole or in part or that the Guarantors are liable in excess
of or to a greater extent than the Cap or (B) arising under, or in connection with, the Commitment Letter, the Merger Agreement
or any other document or agreement entered into in connection with the Merger Agreement (other than the Sponsor Retained Claims),
then (1) the Obligations of the Guarantors under this Sponsor Limited Guarantee shall terminate ab initio and be null and
void, (2) if the Guarantors have previously made any payments under this Sponsor Limited Guarantee, it shall be entitled to recover
such payments from the Guaranteed Party, and (3) neither the Guarantors, Parent, Merger Sub nor any Non-Recourse Party shall have
any liability to the Guaranteed Party or any of its Affiliates (other than the Rollover Shareholders or any of their Affiliates
or any such Persons’ respective officers and directors) with respect to the transactions contemplated by the Merger Agreement,
the Commitment Letter or under this Sponsor Limited Guarantee.
8. NO RECOURSE.
Notwithstanding anything that may be expressed or implied in this Sponsor Limited Guarantee or any document or instrument delivered
in connection herewith, and notwithstanding the fact that a Guarantor may be a partnership or limited liability company, by its
acceptance of the benefits of this Sponsor Limited Guarantee, the Guaranteed Party acknowledges and agrees that (a) no Person other
than the Guarantors (and their respective successors and assigns) has any obligation hereunder and that no recourse shall be had
hereunder, or for any claim based on, in respect of, or by reason of, such obligation or their creation, against, and no personal
liability shall attach to, any Non-Recourse Party, through Parent, Merger Sub or otherwise, whether by or through attempted piercing
of the corporate veil, by or through a claim by or on behalf of the Guaranteed Party against any Non-Recourse Party, by the enforcement
of any assessment or by any legal or equitable proceeding, by virtue of any statute, regulation or applicable Law, or otherwise,
and (b) the only rights of recovery and claims that the Guaranteed Party has against the Sponsor Guarantor in respect of the Merger
Agreement and the transactions contemplated thereunder are the Sponsor Retained Claims. The Guaranteed Party acknowledges and agrees
that Parent and Merger Sub have no assets other than certain contract rights and cash in a de minimis amount and that no
additional funds are expected to be contributed to Parent or Merger Sub unless and until the Closing occurs. Recourse against the
Guarantors pursuant to this Sponsor Limited Guarantee shall be the sole and exclusive remedy of the Guaranteed Party and all of
its Affiliates (other than the Rollover Shareholders or any of their Affiliates or any such Persons’ respective officers
and directors) against the Guarantors, Parent or Merger Sub in respect of any liabilities or obligations arising under, or in connection
with, the Merger Agreement, the Commitment Letter or the transactions contemplated thereby, except for any Sponsor Retained Claims.
Nothing set forth in this Sponsor Limited Guarantee shall confer or give or shall be construed to confer or give to any Person
(including any Person acting in a representative capacity) any rights or remedies against any Person including the Guarantors except
as expressly set forth herein.
9. NATURE OF GUARANTEE.
The Guarantors' liability hereunder is absolute, unconditional, irrevocable and continuing irrespective of any modification, amendment
or waiver of or any consent to departure from the Merger Agreement that may be agreed to by Parent or Merger Sub. The Guaranteed
Party shall not be obligated to file any claim relating to the Obligations in the event that Parent or Merger Sub becomes subject
to a bankruptcy, reorganization or similar proceeding, and the failure of the Guaranteed Party to so file shall not affect the
Guarantors' obligation hereunder. In the event that any payment to the Guaranteed Party in respect of any of the Obligations is
rescinded or must otherwise be returned for any reason whatsoever, the Guarantors shall remain liable hereunder with respect to
such Obligation as if such payment had not been made. This Sponsor Limited Guarantee is an unconditional and continuing guarantee
of payment and not of collection, and the Guaranteed Party shall not be required to initiate any legal proceedings against Parent
or Merger Sub before proceeding against the Guarantors hereunder.
10. GOVERNING LAW;
JURISDICTION. This Sponsor Limited Guarantee, and all claims and causes of action arising out of, based upon, or related to
this Sponsor Limited Guarantee or the negotiation, execution or performance hereof, shall be governed by, and construed, interpreted
and enforced in accordance with, the Laws of the State of New York, without regard to choice or conflict of law principles that
would result in the application of any Laws other than the Laws of the State of New York. In the event any dispute arises among
the parties hereto out of or in relation to this Sponsor Limited Guarantee, including any dispute regarding its breach, termination
or validity, the parties shall attempt in the first instance to resolve such dispute through friendly consultations. If any dispute
has not been resolved by friendly consultations within thirty (30) days after any party has served written notice on the other
parties requesting the commencement of such consultations, then any party may demand that the dispute be finally settled by arbitration
in accordance with the following provisions of this Section 10. The arbitration shall be conducted in accordance with the UNCITRAL
Arbitration Rules and the Hong Kong International Arbitration Centre ("HKIAC") Procedures for the Administration
of International Arbitration in force at the date of this Sponsor Limited Guarantee, which rules are deemed to be incorporated
by reference in this Section 10. The place of the arbitration shall be Hong Kong and the language of the arbitration shall be English.
The appointing authority shall be the HKIAC. There shall be three arbitrators, which shall be designated as set forth in Section
10.9 of the Merger Agreement. The arbitration shall be conducted in private. The parties agree that all documents and evidence
submitted in the arbitration (including without limitation any statements of case and any interim or final award, as well as the
fact that an arbitral award has been made) shall remain confidential both during and after any final award that is rendered unless
the parties hereto otherwise agree in writing. Upon and after the submission of any dispute to arbitration, the parties shall continue
to exercise their remaining respective rights, and fulfill their remaining respective obligations under this Sponsor Limited Guarantee,
except insofar as the same may relate directly to the matters in dispute. The parties hereby agree that any arbitration award rendered
in accordance with the provisions of this Section 10 shall be final and binding upon them, and the parties further agree
that such award may be enforced by any court having jurisdiction over the party against which the award has been rendered or the
assets of such party wherever the same may be located. In any arbitration proceeding, any legal proceeding to enforce any arbitration
award and in any other legal proceeding among the parties pursuant to or relating to this Sponsor Limited Guarantee, each party
expressly waives the defense of sovereign immunity and any other defense based on the fact or allegation that it is an agency or
instrumentality of a sovereign state or is otherwise entitled to immunity. Each of the parties hereto agrees that notice or the
service of process in any action, suit or proceeding arising out of, based upon or relating to this Sponsor Limited Guarantee or
the rights and obligations arising hereunder shall be properly served or delivered if delivered in the manner contemplated by Section
6.
11. WAIVER OF JURY
TRIAL. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY AND ALL RIGHT SUCH
PARTY MAY HAVE TO TRIAL BY JURY IN ANY LEGAL ACTION, SUIT OR PROCEEDING BETWEEN THE PARTIES HERETO ARISING OUT OF, BASED UPON OR
RELATING TO THIS SPONSOR LIMITED GUARANTEE OR THE NEGOTIATION, EXECUTION OR PERFORMANCE HEREOF.
12. COUNTERPARTS.
This Sponsor Limited Guarantee may be executed by facsimile and in one or more counterparts, and by the different parties hereto
in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute
one and the same agreement.
13. MISCELLANEOUS.
(a) This Sponsor Limited
Guarantee contains the entire agreement between the parties relative to the subject matter hereof. No modification or waiver of
any provision hereof shall be enforceable unless agreed to by the Guaranteed Party and the Guarantors in writing.
(b) Any provision hereof
that is prohibited or unenforceable in any jurisdiction shall be, as to such jurisdiction, ineffective solely to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
(c) The descriptive headings
herein are inserted for convenience of reference only and are not intended to be part of or to affect the meaning or interpretation
of this Sponsor Limited Guarantee.
* * * * *
(signature pages follow)
IN WITNESS WHEREOF, the
Guarantor has caused this Sponsor Limited Guarantee to be executed and delivered as of the date first written above by its officer
thereunto duly authorized.
Alpha Spring Limited |
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By: |
/s/ Zan Shengda |
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Name: Zan Shengda |
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Title: Director |
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Nantong Zongyi Investment Co., Ltd. |
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By: |
/s/ Zan Shengda |
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Name: Zan Shengda |
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Title: Director |
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Signature Page to
the Sponsor Limited Guarantee
IN WITNESS WHEREOF, the
Guaranteed Party has caused this Sponsor Limited Guarantee to be executed and delivered as of the date first written above by its
officer thereunto duly authorized.
VIMICRO INTERNATIONAL CORPORATION |
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By: |
/s/ Charles (Chuck) K. Ng |
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Name: Charles (Chuck) K. Ng |
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Title: Director |
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Signature Page to the Sponsor Limited Guarantee
Exhibit 7.06
COMMITMENT LETTER
September 15, 2015
Alpha Spring Limited
Room 906, Bank of Shanghai Tower,
168 Middle Yincheng Road,
Pudong District, Shanghai,
People’s Republic of China
Fax No.: +8621 6859-1615
Attn: David Lee
Ladies and Gentlemen:
This letter agreement sets
forth the commitment of Alpha Spring Limited, a limited liability company incorporated under the laws of the British Virgin Islands
(“Sponsor”), subject to the terms and conditions contained herein, to extend a loan to Vimicro China (Parent)
Limited, an exempted company with limited liability incorporated under the laws of the Cayman Islands (“Parent”).
It is contemplated that, pursuant to that certain Agreement and Plan of Merger, dated as of the date hereof (as amended, restated,
supplemented or otherwise modified from time to time in accordance with its terms, the “Merger Agreement”),
among Vimicro International Corporation, an exempted company with limited liability incorporated under the laws of the Cayman Islands
(the “Company”), Parent and Vimicro China Acquisition Limited, an exempted company with limited liability incorporated
under the laws of the Cayman Islands and a wholly-owned subsidiary of Parent (“Merger Sub”), Merger Sub will
merge with and into the Company (the “Merger”), with the Company surviving the Merger as a wholly-owned subsidiary
of Parent. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Merger Agreement.
1. Commitment. Sponsor
hereby commits, subject solely to the terms and conditions set forth herein, that, immediately prior to or simultaneous with the
Closing, it shall make loan to, or shall cause a loan made to, Parent in the aggregate principal amount of US$310,000,000.00 (the
“Commitment”), solely for the purpose of Parent and/or Merger Sub funding, and to the extent necessary, to fund,
the aggregate Per Share Merger Consideration, Per ADS Merger Consideration and Option Consideration (and any payments that may
need to be made in respect of the Dissenting Shares) pursuant to and in accordance with the Merger Agreement, together with related
fees and expenses of Parent, Merger Sub, the Company and their respective Subsidiaries in accordance with the terms of the Merger
Agreement. The amount of the Commitment to be funded under this letter agreement simultaneous with the Closing may be reduced in
an amount specified by Parent (and agreed by the Company) but only to the extent that it will be possible for Parent and Merger
Sub to consummate the transactions contemplated by the Merger Agreement with Sponsor contributing less than the full amount of
the Commitment. The Sponsor may effect the funding of the Commitment directly or indirectly through one or more direct or indirect
subsidiaries of the Sponsor or any other investment fund advised or managed by an Affiliate of the Sponsor or any other investment
fund that is a limited partner of the Sponsor or of an Affiliate of the Sponsor.
2. Conditions.
The Commitment shall be subject to (i) the execution and delivery of the Merger Agreement by the Company, and (ii) the satisfaction
or waiver at the Closing of each of the conditions to Parent’s and Merger Sub’s obligations to consummate the transactions
contemplated by the Merger Agreement.
3. Limited Guarantee.
Concurrently with the execution and delivery of this letter agreement, (a) the Sponsor Guarantor is executing and delivering to
the Company a limited guarantee, dated as of the date hereof, related to Parent’s and Merger Sub’s payment obligations
under the Merger Agreement (the “Sponsor Limited Guarantee”) and (b) the Founder Guarantor is executing and
delivering to the Company a limited guarantee, dated as of the date hereof, related to Parent’s and Merger Sub’s payment
obligations under the Merger Agreement (the “Founder Limited Guarantee”). Other than with respect to Sponsor
Retained Claims (as defined under the Sponsor Limited Guarantee) and Founder Retained Claims (as defined under the Founder Limited
Guarantee), the Company’s remedies against the Sponsor Guarantor and the Founder Guarantor under the Sponsor Limited Guarantee
and Founder Limited Guarantee shall be, and are intended to be, the sole and exclusive direct or indirect remedies available to
the Company and its Affiliates (other than the Rollover Shareholders or any of their Affiliates or any such Persons’ respective
officers and directors) against (i) the Sponsor, Parent or Merger Sub and (ii) any former, current and future equity holders, controlling
persons, directors, officers, employees, agents, Affiliates, members, managers, general or limited partners or assignees of, the
Sponsor, Parent or Merger Sub or any former, current or future stockholder, controlling person, director, officer, employee, general
or limited partner, member, manager, Affiliate, agent or assignee of any of the foregoing (other than the Rollover Shareholders
or any of their Affiliates or any such Persons’ respective officers and directors) (those persons and entities described
in clause (ii) each being referred to as a “Non-Recourse Party”) in respect of any liabilities or obligations
arising under, or in connection with, this letter agreement or the Merger Agreement and the transactions contemplated thereby,
including in the event Parent or Merger Sub breaches its obligations under the Merger Agreement, whether or not Parent’s
or Merger Sub’s breach is caused by Sponsor’s breach of its obligations under this letter agreement.
4. Enforceability.
(a) This letter agreement
may only be enforced by (i) Parent at the direction of the shareholders of Parent other than Sponsor or any of its Affiliates and/or
(ii) the Company. Neither Parent’s, Merger Sub’s nor the Company’s creditors shall have the right to enforce
this letter agreement or to cause Parent to enforce this letter agreement. For the avoidance of doubt, the Company shall have the
right to cause Parent to enforce this letter agreement on the terms and subject to the conditions hereof.
(b) The parties hereto
acknowledge and agree that Parent and/or the Company would be irreparably damaged if the Sponsor does not satisfy its obligation
to fund the Commitment pursuant to Section 1 hereof, monetary damages would be difficult to determine and that neither Parent nor
the Company would have any adequate remedy at law. Accordingly, subject to the provisions hereof, (i) Parent and/or the Company
shall be entitled to seek specific performance of Sponsor’s obligations under Section 1 hereof, as well as temporary, preliminary
and permanent injunctive relief to prevent breaches of such obligations without posting any bond or other undertaking and (ii)
Sponsor agrees not to oppose the granting of such relief in the event a court determines that such a breach has occurred. All rights,
powers, and remedies provided under this letter agreement or otherwise available in respect hereof at law or in equity shall be
cumulative and not alternative, and the exercise or beginning of the exercise of any such right, power or remedy by Parent and/or
the Company shall not preclude the simultaneous or later exercise of any other such right, power or remedy by Parent and/or the
Company.
5. No Modification; Entire
Agreement. This letter agreement may not be amended or otherwise modified without the prior written consent of Parent, Merger
Sub, the Company and Sponsor. Together with the Merger Agreement, the Sponsor Limited Guarantee and the Founder Limited Guarantee,
this letter agreement constitutes the sole agreement, and supersedes all prior agreements, understandings and statements, written
or oral, between, the Sponsor Guarantor, Sponsor, the Founder Guarantor or any of their respective Affiliates, on the one hand,
and Parent or any of its Affiliates, on the other (in each case, other than the Rollover Shareholders or any of their Affiliates),
with respect to the transactions contemplated hereby. No transfer of any rights or obligations hereunder shall be permitted without
the consent of Parent, Merger Sub, the Company and Sponsor. Any transfer in violation of the preceding sentence shall be null and
void.
6. Governing Law; Jurisdiction;
Venue. This letter agreement, and all claims and causes of action arising out of, based upon, or related to this letter agreement
or the negotiation, execution or performance hereof, shall be governed by, and construed, interpreted and enforced in accordance
with, the Laws of the State of New York, without regard to choice or conflict of law principles that would result in the application
of any Laws other than the Laws of the State of New York. In the event any dispute arises among the parties hereto out of or in
relation to this letter agreement, including any dispute regarding its breach, termination or validity, the parties shall attempt
in the first instance to resolve such dispute through friendly consultations. If any dispute has not been resolved by friendly
consultations within thirty (30) days after any party has served written notice on the other parties requesting the commencement
of such consultations, then any party may demand that the dispute be finally settled by arbitration in accordance with the following
provisions of this Section 6. The arbitration shall be conducted in accordance with the UNCITRAL Arbitration Rules and the Hong
Kong International Arbitration Centre (“HKIAC”) Procedures for the Administration of International Arbitration
in force at the date of this letter agreement, which rules are deemed to be incorporated by reference in this Section 6. The place
of the arbitration shall be Hong Kong and the language of the arbitration shall be English. The appointing authority shall be the
HKIAC. There shall be three arbitrators, which shall be designated as set forth in Section 10.9 of the Merger Agreement. The arbitration
shall be conducted in private. The parties agree that all documents and evidence submitted in the arbitration (including without
limitation any statements of case and any interim or final award, as well as the fact that an arbitral award has been made) shall
remain confidential both during and after any final award that is rendered unless the parties hereto otherwise agree in writing.
Upon and after the submission of any dispute to arbitration, the parties shall continue to exercise their remaining respective
rights, and fulfill their remaining respective obligations under this letter agreement, except insofar as the same may relate directly
to the matters in dispute. The parties hereby agree that any arbitration award rendered in accordance with the provisions of this
Section 6 shall be final and binding upon them, and the parties further agree that such award may be enforced by any court
having jurisdiction over the party against which the award has been rendered or the assets of such party wherever the same may
be located. In any arbitration proceeding, any legal proceeding to enforce any arbitration award and in any other legal proceeding
among the parties pursuant to or relating to this letter agreement, each party expressly waives the defense of sovereign immunity
and any other defense based on the fact or allegation that it is an agency or instrumentality of a sovereign state or is otherwise
entitled to immunity. Each of the parties hereto agrees that notice or the service of process in any action, suit or proceeding
arising out of, based upon or relating to this letter agreement or the rights and obligations arising hereunder shall be properly
served or delivered if delivered in the manner contemplated by Section 6 of the Sponsor Limited Guarantee, with respect to Sponsor,
and Section 10.2 of the Merger Agreement, with respect to Parent or Merger Sub.
7. Waiver of Jury Trial.
EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY AND ALL RIGHT SUCH PARTY MAY
HAVE TO TRIAL BY JURY IN ANY LEGAL ACTION, SUIT OR PROCEEDING BETWEEN THE PARTIES HERETO ARISING OUT OF, BASED UPON OR RELATING
TO THIS LETTER AGREEMENT OR THE NEGOTIATION, EXECUTION OR PERFORMANCE HEREOF.
8. Counterparts.
This letter agreement may be executed by facsimile and in one or more counterparts, and by the different parties hereto in separate
counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one
and the same agreement.
9. Third Party Beneficiaries.
This letter agreement shall inure to the benefit of and be binding upon Parent, Merger Sub and Sponsor. The Company is a third
party beneficiary of this letter agreement with full rights of enforcement of this letter agreement. Except as provided in the
immediately preceding sentence, nothing in this letter agreement, express or implied, is intended to confer upon any person other
than Parent, Merger Sub and Sponsor any rights or remedies under, or by reason of, or any rights to enforce or cause Parent or
Merger Sub to enforce, the Commitment or any provisions of this letter agreement or to confer upon any person any rights or remedies
against any person other than Sponsor (but only at the direction of Sponsor as contemplated hereby) under or by reason of this
letter agreement. Without limiting the foregoing, neither Parent’s nor Merger Sub’s creditors shall have any right
to enforce this letter agreement or to cause Parent or Merger Sub to enforce this letter agreement.
10. Termination.
The obligation of Sponsor to fund the Commitment will terminate automatically and immediately upon the earliest to occur of (a)
the valid termination of the Merger Agreement in accordance with its terms, (b) the Closing, at which time the obligation will
be discharged but subject to the performance of such obligation and (c) the Company or any of its Affiliates (other than the Rollover
Shareholders or any of their Affiliates or any such Persons’ respective officers and directors), directly or indirectly,
asserting a claim against the Sponsor Guarantor, Sponsor, the Founder Guarantor, or any Non-Recourse Party in connection with this
letter agreement, the Merger Agreement, the Sponsor Limited Guarantee or any of the transactions contemplated hereby or thereby
or otherwise relating hereto or thereto, other than the Company asserting any Sponsor Retained Claim (as defined under the Sponsor
Limited Guarantee) or any Founder Retained Claim (as defined under the Founder Limited Guarantee). Notwithstanding anything in
this Section 10 to the contrary, in the event the Company, as the express third party beneficiary hereunder, shall have
filed any claim or suit to enforce the terms of this letter agreement prior to such termination, the obligation to fund the Commitment
and all other obligations of Sponsor hereunder shall not expire, and shall remain in full force and effect, during the time such
suit or action is pending, plus twenty (20) Business Days or until the time period established by the court presiding over such
claim or suit.
11. No Recourse.
Notwithstanding anything that may be expressed or implied in this letter agreement or any document or instrument delivered in connection
herewith, and notwithstanding the fact that Sponsor may be a partnership or limited liability company, by its acceptance of the
benefits of this letter agreement, Parent acknowledges and agrees that no Person other than Sponsor has any obligations hereunder
and that no recourse shall be had hereunder, or for any claim based on, in respect of, or by reason of, such obligations or their
creation, against, and no personal liability shall attach to, any Non-Recourse Party, through Parent, Merger Sub or otherwise,
whether by or through attempted piercing of the corporate veil, by or through a claim by or on behalf of Parent against any Non-Recourse
Party, by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute, regulation or applicable
Law, or otherwise.
12. Representations and
Warranties. Sponsor hereby represents and warrants with respect to itself to Parent that: (a) it has all limited partnership
or other organizational power and authority to execute, deliver and perform this letter agreement; (b) the execution, delivery
and performance of this letter agreement by Sponsor has been duly and validly authorized and approved by all necessary limited
partnership or other organizational action by it and no other proceedings or actions on the part of Sponsor are necessary therefor;
(c) this letter agreement has been duly and validly executed and delivered by it and constitutes a valid and legally binding obligation
of it, enforceable against it in accordance with the terms of this letter agreement; (d) the execution, delivery and performance
by Sponsor of this letter agreement do not and will not violate the organizational documents of Sponsor or any applicable Law;
(e) the Commitment is less than the maximum amount that Sponsor is permitted to invest in any one portfolio investment pursuant
to the terms of its constituent documents or otherwise; and (f) Sponsor has available funds in excess of the Commitment.
* * * * *
Sincerely,
Alpha Spring Limited |
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By: |
/s/ Zan Shengda |
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Name: Zan Shengda |
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Title: Director |
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Signature Page to Commitment Letter
Agreed to and accepted:
Vimicro China (Parent) Limited
By: |
/s/ Zhaowei (Kevin) Jin |
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Name: Zhaowei (Kevin) Jin |
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Title: Director |
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Signature Page to Commitment Letter
Agreed to and accepted:
Vimicro China Acquisition Limited
By: |
/s/ Zhaowei (Kevin) Jin |
|
Name: Zhaowei (Kevin) Jin |
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Title: Director |
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Signature Page to Commitment Letter
Exhibit 7.07
ROLLOVER AGREEMENT
This ROLLOVER AGREEMENT
(this “Agreement”), by and among Vimicro China (Parent) Limited, an exempted company incorporated in the Cayman
Islands (“Parent”), Vimicro China Acquisition Limited, an exempted company incorporated in the Cayman Islands
and a wholly-owned subsidiary of Parent (“Merger Sub”), and the shareholders of Vimicro International Corporation,
an exempted company incorporated in the Cayman Islands (the “Company”), listed on the signature page hereto
(each, a “Rollover Shareholder” and collectively, the “Rollover Shareholders”), is made and
entered into as of September 15, 2015. Capitalized terms used but not defined herein shall have the meanings ascribed to such terms
in the Merger Agreement (defined below).
WHEREAS, Parent and Merger
Sub have entered into an Agreement and Plan of Merger, dated as of the date hereof (as may be amended, supplemented or otherwise
modified from time to time, the “Merger Agreement”), by and among Parent, Merger Sub and the Company, pursuant
to which Merger Sub will merge with and into the Company on the terms and subject to the conditions set forth in the Merger Agreement
and the Company shall remain as the Surviving Corporation;
WHEREAS, as a result of
the Merger, the Company shall succeed to and assume all the rights and obligations of Merger Sub in accordance with the Merger,
including the obligations of Merger Sub set forth in this Agreement, and references in this Agreement to Merger Sub encompass the
Surviving Corporation after the Merger;
WHEREAS, each Rollover Shareholder
desires to contribute the number of Company Shares, ADSs and Company Options shown on Schedule 1 hereto opposite its name
(collectively, the “Rollover Shares”) to Parent immediately prior to the Effective Time, in exchange for the
number of common shares of Parent shown on Schedule 1 hereto opposite its name (the “Parent Issued Securities”).
NOW, THEREFORE, in consideration
of the foregoing and the mutual covenants and agreements herein contained and intending to be legally bound hereby, the parties
hereto hereby agree as follows:
1. Definitions.
The following terms are defined as follows:
“Rollover Effective
Time” means the time immediately prior to the Effective Time.
“SAFE”
means the State Administration of Foreign Exchange.
“SAFE Circular”
means the Notice on Relevant Issues Concerning Foreign Exchange Administration for Domestic Residents to Engage in Overseas Investment
and Financing and Round Trip Investment via Special Purpose Companies issued by SAFE on July 4, 2014.
“Shareholders Agreement”
means the Shareholders Agreement among Parent, the Rollover Shareholders and the other shareholders of Parent, to be entered into
on or about the Closing Date.
2. Contribution
of Rollover Shares. At the Rollover Effective Time, each Rollover Shareholder shall contribute the Rollover Shares held
by it to the capital of Parent and Parent shall accept as a contribution the Rollover Shares. At the Rollover Effective Time,
Parent shall issue to each Rollover Shareholder common shares of Parent, par value $0.0001 (the “Parent Issued Securities”)
at a consideration per share equal to its par value. The number of Rollover Shares to be contributed by and of Parent Issued Securities
to be issued to each Rollover Shareholder in accordance with this Section 2 is set forth next to such Rollover Shareholder's
name on Schedule 1 hereto. Each Rollover Shareholder hereby acknowledges and agrees that (a) delivery of such Parent Issued
Securities shall constitute complete satisfaction of all obligations towards or sums due to such Rollover Shareholder by Parent
and Merger Sub in respect of the Rollover Shares held by such Rollover Shareholder and cancelled at the Closing as contemplated
by the Merger Agreement, and (b) such Rollover Shareholder shall have no right to any Per Share Merger Consideration or Per ADS
Merger Consideration in respect of the Rollover Shares held by such Rollover Shareholder.
3. Equity
Interests Other Than Rollover Shares. Other than for the Rollover Shares, all equity securities of the Company (including,
for the avoidance of doubt, Company Options and other Company Shares) held by each Rollover Shareholder shall be treated at the
Effective Time and upon consummation of the Merger as set forth in the Merger Agreement and not be affected by the provisions
of this Agreement.
4. Conditions.
(a) The consummation of the contribution by each Rollover Shareholder of the Rollover Shares pursuant to Section 2 hereof
shall be subject to the satisfaction or (in the case of clauses (i), (ii) and (iii)) waiver by such Rollover Shareholder of the
following conditions: (i) the execution and delivery to such Rollover Shareholder by Parent of a copy of the Shareholders Agreement
duly executed by Parent; (ii) that the representations and warranties of Parent contained in this Agreement shall be true and
correct in all material respects as of the Closing Date; (iii) that Parent shall have performed or complied with in all material
respects all covenants required to be performed or complied with by it under this Agreement; (iv) the issuance of the Parent Issued
Securities to which such Rollover Shareholder is entitled under Section 2 concurrently with such contribution; and (v)
the consummation of the Merger immediately following such contribution.
(b) The consummation of
the issuance of the Parent Issued Securities by Parent to each Rollover Shareholder pursuant to Section 2 hereof shall be
subject to the satisfaction or (in the case of clauses (v), (w) and (x)) waiver by Parent of the following conditions: (v) the
execution and delivery by each Rollover Shareholder of a copy of the Shareholders Agreement duly executed by such Rollover Shareholder,
(w) that the representations and warranties of such Rollover Shareholder contained in this Agreement shall be true and correct
in all material respects as of the Closing Date; (x) that such Rollover Shareholder shall have performed or complied with in all
material respects all covenants required to be performed or complied with by it under this Agreement; (y) the contribution by such
Rollover Shareholder of the Rollover Shares to be contributed by it under Section 2 and (z) the consummation of the Merger
immediately following such issuance of the Parent Issued Securities.
5. Status
of the Parent Issued Securities. The Parent Issued Securities issued to the Rollover Shareholder in consideration for
the Rollover Shares shall be issued and credited as fully paid as of the Effective Time.
6. Representations
and Warranties by the Rollover Shareholders. Each Rollover Shareholder hereby represents and warrants to Parent and Merger
Sub, as of the date hereof and as of the Rollover Effective Time, that:
(a) this Agreement constitutes
the legal, valid and binding obligation of such Rollover Shareholder, enforceable in accordance with its terms, and the execution,
delivery and performance of this Agreement by such Rollover Shareholder does not conflict with, violate or cause a breach of any
agreement, contract or instrument to which such Rollover Shareholder is a party or any judgment, order or decree to which such
Rollover Shareholder is subject;
(b) the execution, delivery
and performance by such Rollover Shareholder of this Agreement requires no order, license, consent, authorization or approval of,
or exemption by, or action by or in respect of, or notice to, or filing or registration with, any governmental body, agency or
official, except, as applicable, (i) for such filings and approvals as may be required by any applicable state securities “blue
sky” laws, (ii) for such as have been obtained and (iii) where the failure to obtain any such order, license, consent, authorization,
approval or exemption or give any such notice or make any filing or registration would not reasonably be expected to adversely
affect the ability of such Rollover Shareholder to perform its obligations hereunder;
(c) such Rollover Shareholder's
Parent Issued Securities will be acquired for such Rollover Shareholder's own account and not with a view to, or intention of,
or for sale in connection with, any distribution thereof in violation of applicable federal and state securities laws;
(d) such Rollover Shareholder
is an “Accredited Investor” as such term is defined in Regulation D under the Securities Act of 1933, as amended, and
the rules and regulations promulgated thereunder;
(e) such Rollover Shareholder
understands that the Parent Issued Shares acquired hereunder are a speculative investment which involves a high degree of risk
of loss of the entire investment therein, that there are substantial restrictions on the transferability of the Parent Issued Shares
under the applicable laws and the Shareholders Agreement, and that for an indefinite period following the date hereof there will
be no public market for the Parent Issued Shares and that, accordingly, it may not be possible for such Rollover Shareholder to
sell the Parent Issued Shares in case of emergency or otherwise;
(f) such Rollover Shareholder’s
financial situation is such that such Rollover Shareholder can afford to bear the economic risk of its investment in Parent for
an indefinite period of time, and such Rollover Shareholder can afford to suffer the complete loss of such Rollover Shareholder's
investment in Parent;
(g) such Rollover Shareholder
and his or her representatives, including, to the extent such Rollover Shareholder deems appropriate, such Rollover Shareholder’s
professional, financial, tax and other advisors, have reviewed all documents provided to them in connection with the investment
in Parent, and such Rollover Shareholder understands and is aware of the risks related to such investment;
(h) such Rollover Shareholder
and his or her representatives have been given the opportunity to examine all documents and to ask questions of, and to receive
answers from, Parent and its representatives concerning the terms and conditions of the investment in Parent and related matters
and to obtain all additional information which such Rollover Shareholder or his or her representatives deem necessary;
(i) such Rollover Shareholder’s
knowledge and experience in financial and business matters are such that such Rollover Shareholder is capable of evaluating the
merits and risks of the investment in Parent;
(j) such Rollover Shareholder
holds of record and owns beneficially the Rollover Shares to be contributed by such Rollover Shareholder to Parent pursuant to
this Agreement, free and clear of any restrictions on transfer (other than any restrictions under applicable federal and state
securities laws), taxes, security interests, liens or other encumbrances;
(k) except as disclosed
in Section 7(k) of the attached Rollover Disclosure Schedule, as of the date hereof, and without regard to the disclosures
in Section 7(k) of the attached Rollover Disclosure Schedule, as of the Rollover Effective Time, such Rollover Shareholder
and each of its direct or indirect shareholders or beneficial owners that is a PRC resident (as defined in SAFE Circular) has taken
all required steps to comply with any applicable rules and regulations of SAFE, including, without limitation, completing any registration
and other procedures required by SAFE in respect of overseas investments and “round trip” investments;
(l) except as disclosed
in any of the SEC Reports, neither such Rollover Shareholder nor any of its Affiliates, nor any individual related by blood, marriage
or adoption to any of its Affiliates, is a party to any material agreement, Contract, commitment or transaction with the Company
or any Subsidiary of the Company or has any material interest in any property used by the Company or any Subsidiary of the Company;
and
(m) to the extent the
payment of the Per Share Merger Consideration and Per ADS Merger Consideration to such Rollover Shareholder pursuant to the Merger
Agreement is or may be treated as a distribution in redemption of stock for U.S. federal income Tax purposes, such distribution
shall be treated as a “substantially disproportionate redemption of stock” with respect to such Rollover Shareholder
pursuant to Code Section 302(b)(2) (after application of the constructive ownership rules of Code Section 318).
7. Representations
and Warranties of Parent and Merger Sub. Each of Parent and Merger Sub represents and warrants to the Rollover Shareholders,
as of the date hereof and as of the Rollover Effective Time, that:
(a) Parent is an exempted
company duly incorporated, validly existing and in good standing under the laws of the Cayman Islands, and Merger Sub is a corporation
duly organized, validly existing and in good standing under the laws of the Cayman Islands;
(b) each of Parent and Merger
Sub has all requisite corporate power and authority to execute and deliver this Agreement, to perform its obligations hereunder
and to consummate the transactions contemplated hereby;
(c) this Agreement constitutes
the legal, valid and binding obligation of each of Parent and Merger Sub, enforceable in accordance with its terms, and the execution,
delivery and performance of this Agreement by Parent and Merger Sub does not conflict with, violate or cause a breach of any agreement,
contract or instrument to which Parent or Merger Sub is a party or any judgment, order or decree to which Parent or Merger Sub
is subject;
(d) the execution, delivery
and performance by Parent and Merger Sub of this Agreement requires no order, license, consent, authorization or approval of, or
exemption by, or action by or in respect of, or notice to, or filing or registration with, any governmental body, agency or official
except, as applicable, (i) for such filings and approvals as may be required by any applicable state securities “blue sky”
laws, (ii) for such as have been obtained and (iii) where the failure to obtain any such order, license, consent, authorization,
approval or exemption or give any such notice or make any filing or registration would not reasonably be expected to adversely
affect the ability of Parent or Merger Sub to perform its obligations hereunder; and
(e) Immediately after the
Closing, Parent shall have a number of shares outstanding such that the number of shares of Parent held by the Rollover Shareholders
shall be as set forth on Schedule 1 hereto, assuming the contribution by each Rollover Shareholder that number of Rollover
Shares as set forth on Schedule 1 hereto Other than for the shares described in the preceding sentence or as may be agreed
prior to Closing by Rollover Shareholders owning no less than 80% of the Rollover Shares, immediately after the Closing, Parent
shall not have issued any equity securities, securities convertible into or exchangeable for equity securities, or options or warrants
to acquire the same other than common shares of Parent reserved for issuance upon the exercise of Unvested Company Options assumed
by Parent pursuant to the Merger Agreement.
8. Termination.
This Agreement shall terminate and be of no further force or effect upon the date of termination of the Merger Agreement in accordance
with its terms. Notwithstanding the foregoing, this Section 8 and Section 12 hereof shall survive the termination
of this Agreement.
9. No Transfer.
(a) Between the date of this Agreement and the consummation of the transactions contemplated by this Agreement, none of the Rollover
Shareholders shall transfer, pledge, assign, encumber or otherwise dispose of any Rollover Shares and each of the Rollover Shareholders
shall abide by all covenants set forth in the Voting Agreement to which such Rollover Shareholder is a party.
(b) Except as may be agreed
by Parent or as permitted under the Shareholders Agreement, following the Rollover Effective Time, none of the Rollover Shareholders
shall transfer, pledge, assign, encumber or otherwise dispose of any Parent Issued Securities, and each Rollover Shareholder shall
procure that no indirect transfer of Parent Issued Securities is made by the direct or indirect shareholder of such Rollover Shareholder.
10. Company Covenants.
Each of the Rollover Shareholders agrees to cause the Company to perform and comply with all of its covenants and agreements set
forth under the Merger Agreement that are to be performed or complied with in whole or in part prior to the Closing Date. Notwithstanding
anything to the contrary set forth in the preceding sentence, the Rollover Shareholders are signing this Agreement solely and
only in the Rollover Shareholders’ capacities as shareholders of the Company and, accordingly, nothing contained in this
Section 10 shall in any way limit or affect any actions taken by any shareholder of any Rollover Shareholder, or any trustee
of any shareholder of any Rollover Shareholder, in his capacity as an officer or director of the Company, and no action taken
in any such capacity as an officer or director of the Company shall be deemed to constitute a breach of this Agreement.
11. Other Covenants.
(a) Each Rollover Shareholder shall, severally but not jointly, bear and pay, reimburse, indemnify and hold harmless Parent, Merger
Sub, the Company and any Affiliate thereof for, from and against any and all liability for Taxes imposed under PRC Law (or an
official interpretation thereof) on Parent, Merger Sub and, after the Closing, the Company, or any Affiliate thereof, arising
from or attributable to (i) the receipt of any Per Share Merger Consideration or Per ADS Merger Consideration (or other amounts)
by such Rollover Shareholder or its Affiliates pursuant to the Merger Agreement and (ii) the receipt of Parent Issued Securities
by such Rollover Shareholder or its Affiliates in exchange for the contribution of Rollover Shares to Parent pursuant to this
Rollover Agreement (including, for the avoidance of doubt, any PRC withholding Taxes imposed on Parent, Merger Sub, the Company
or any Affiliate thereof with respect to the payment of such amounts described in clauses (i) and (ii) above).
(b) Each Rollover Shareholder
shall use its reasonable best efforts to obtain, or cooperate with the Company such that Parent, Merger Sub and/or the Company
(as applicable) shall obtain, prior to the Closing, from all applicable PRC Governmental Authorities, written documentation evidencing
that all of the Permits required for the good standing of the Subsidiaries of the Company or relating to “round trip”
investments in respect of the Company or overseas investment by such Rollover Shareholder or any of its Affiliates or beneficial
owners who are PRC residents (as defined under SAFE Circular) and are subject to any of the registration or reporting requirements
of SAFE Circular, have been obtained as required by applicable PRC Law.
(c) The parties to this
Agreement agree to treat the payment of the Per Share Merger Consideration or Per ADS Merger Consideration to each Rollover Shareholder
pursuant to the Merger Agreement as made in pursuance to a sale or exchange of a capital asset for U.S. federal income tax purposes.
The parties to this Agreement further agree that the payment of the Per Share Merger Consideration or Per ADS Merger Consideration
will not be subject to withholding Taxes under Chapter 3 of the Code or under PRC law.
(d) At Parent's request,
each Rollover Shareholder shall provide to Parent such information as may be reasonably necessary for Parent or its direct or indirect
owners to file their U.S. federal, state, local, and non-U.S. Tax Returns (including historic cost basis information).
(e) Each Rollover Shareholder
and Parent shall each negotiate the terms and conditions of the Shareholders Agreement in good faith such that the condition set
forth in Section 4(a)(i) and Section 4(b)(v), respectively, shall be satisfied.
12. Miscellaneous.
(a) Notices. Any
notices or other communications required or permitted under, or otherwise in connection with this Agreement, shall be in writing
and shall be deemed to have been duly given when delivered in person or upon confirmation of receipt when transmitted by facsimile
transmission or by electronic mail (but only if followed by transmittal by overnight courier or hand delivery on the next Business
Day) or on receipt after dispatch by registered or certified mail, postage prepaid, addressed, or on the next Business Day if transmitted
by international overnight courier, in each case as follows:
If to Parent or Merger Sub, at:
Suite #4-210, Governors Square
23 Lime Tree Bay Avenue
PO Box 32311
Grand Cayman KY1-1209
Cayman Islands
with a copy to:
16/F Shining Tower
No. 35 Xueyuan Road
Haidian District, Beijing 100191
People’s Republic of China
Attention: Kevin Jin
with a copy (which shall not constitute notice)
to:
Suite 2101, Building C, Yintai Center
#2 Jianguomenwai Ave.
Chaoyang District
Beijing 100022, China
Attention: Steven Liu
Facsimile No.: +86-10-5680-3889
If to the Rollover Shareholder, to the address
set forth on the signature page hereto under the Rollover Shareholder's name, or, in each case, to such other address or to the
attention of such other person as the recipient party shall have specified by prior written notice to the sending party.
(b) Survival. All
representations and warranties contained herein or made in writing by any party in connection herewith shall survive the execution
and delivery of this Agreement and the consummation of the transactions contemplated hereby indefinitely; provided that (i) the
representations and warranties contained in Section 6(l) of this Agreement shall survive the Closing for a period of one year following
the Closing and (ii) the representations and warranties contained in Sections 6(k) and 7(m) of this Agreement shall survive the
Closing for the applicable statute of limitations.
(c) Tax-Free Exchange.
The parties hereto intend that for U.S. federal tax purposes, the contribution of the Rollover Shares by each Rollover Shareholder
and the receipt of the Parent Issued Securities by each Rollover Shareholder be treated collectively as a transaction governed
by Section 721 of the Code, and none of such parties shall take any contrary position unless otherwise required by a change in
applicable law; provided, however under no circumstances is it guaranteed that any contribution of the Rollover Shares by the Rollover
Shareholders and the receipt of Parent Issued Securities by the Rollover Shareholders will be governed by Section 721 of the Code,
and the parties hereto acknowledge and agree that it is in their best interests to consult their own advisors and to draw their
own conclusions relating to the applicability of Section 721 of the Code.
(d) Time of the Essence.
Time is of the essence for each and every provision of this Agreement. Whenever the last day for the exercise of any privilege
or the discharge or any duty hereunder shall fall upon any day that is not a Business Day, the party having such privilege or duty
may exercise such privilege or discharge such duty on the next succeeding day which is a regular Business Day.
(e) Further Assurances.
From time to time following the date hereof, the parties hereto shall execute and deliver such other instruments of assignment,
transfer and delivery (including the delivery by each Rollover Shareholder to Parent or Merger Sub of certificates representing
the Rollover Shares) and shall take such other actions as any other party hereto reasonably may request in order to consummate,
complete and carry out the transactions contemplated by this Agreement.
(f) Severability.
If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public
policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to either
party hereto. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, Parent
and the Rollover Shareholder shall negotiate in good faith to modify this Agreement so as to effect the original intent of the
parties hereto as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to
the greatest extent possible.
(g) Entire
Agreement. This Agreement, the Merger Agreement and the Voting Agreements embody the complete agreement and understanding
among the parties hereto with respect to the subject matter hereof and supersede and preempt any prior understandings, agreements
or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way.
(h) Specific Performance.
The parties hereto shall be entitled to enforce their rights under this Agreement specifically, to recover damages and costs (including
reasonable attorneys' fees) caused by any breach of any provision of this Agreement and to exercise all other rights existing in
their favor. Each party hereto agrees and acknowledges that money damages may not be an adequate remedy for any breach of the provisions
of this Agreement and that, in addition to any other rights and remedies at law or in equity existing in its favor, each party
hereto shall be entitled to specific performance and/or other injunctive relief from any court of law or equity of competent jurisdiction
(without posting any bond or other security) in order to enforce or prevent violation of the provisions of this Agreement.
(i) Amendment and Waiver.
Except as otherwise provided herein, the provisions of this Agreement may be amended or waived only upon the prior written consent
of Parent and each Rollover Shareholder. The failure of any party to enforce any of the provisions of this Agreement shall in no
way be construed as a waiver of such provisions and shall not affect the right of such party thereafter to enforce each and every
provision of this Agreement in accordance with its terms.
(j) Delivery by Facsimile
and Electronically. This Agreement and any signed agreement or instrument entered into in connection thereto or contemplated
thereby, and any amendments hereto or thereto, to the extent signed and delivered by means of a facsimile machine or email, shall
be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal
effect as if it were the original signed version thereof delivered in person. At the request of any party hereto or to any such
agreement or instrument, each other party hereto or thereto shall re execute original forms thereof and deliver them to all other
parties. No party hereto or to any such agreement or instrument shall raise the use of a facsimile machine or email to deliver
a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of a facsimile
machine or email as a defense to the formation of a contract and each such party forever waives any such defense.
(k) Applicable Law; Dispute
Resolution. This Agreement, and all claims and causes of action arising out of, based upon, or related to this Agreement or
the negotiation, execution or performance hereof, shall be governed by, and construed, interpreted and enforced in accordance with,
the Laws of the State of New York, without regard to choice or conflict of law principles that would result in the application
of any Laws other than the Laws of the State of New York. In the event any dispute arises among the parties hereto out of or in
relation to this Agreement, including any dispute regarding its breach, termination or validity, the parties shall attempt in the
first instance to resolve such dispute through friendly consultations. If any dispute has not been resolved by friendly consultations
within thirty (30) days after any party has served written notice on the other parties requesting the commencement of such consultations,
then any party may demand that the dispute be finally settled by arbitration in accordance with the following provisions of this
Section 12(k). The arbitration shall be conducted in accordance with the UNCITRAL Arbitration Rules and the Hong Kong International
Arbitration Centre (“HKIAC”) Procedures for the Administration of International Arbitration in force at the
date of this Agreement, which rules are deemed to be incorporated by reference in this Section 12(k). The place of the arbitration
shall be Hong Kong and the language of the arbitration shall be English. The appointing authority shall be the HKIAC. There shall
be three arbitrators, which shall be designated as set forth in Section 10.9 of the Merger Agreement. The arbitration shall be
conducted in private. The parties agree that all documents and evidence submitted in the arbitration (including without limitation
any statements of case and any interim or final award, as well as the fact that an arbitral award has been made) shall remain confidential
both during and after any final award that is rendered unless the parties hereto otherwise agree in writing. Upon and after the
submission of any dispute to arbitration, the parties shall continue to exercise their remaining respective rights, and fulfill
their remaining respective obligations under this Agreement, except insofar as the same may relate directly to the matters in dispute.
The parties hereby agree that any arbitration award rendered in accordance with the provisions of this Section 12(k) shall
be final and binding upon them, and the parties further agree that such award may be enforced by any court having jurisdiction
over the party against which the award has been rendered or the assets of such party wherever the same may be located. In any arbitration
proceeding, any legal proceeding to enforce any arbitration award and in any other legal proceeding among the parties pursuant
to or relating to this Agreement, each party expressly waives the defense of sovereign immunity and any other defense based on
the fact or allegation that it is an agency or instrumentality of a sovereign state or is otherwise entitled to immunity. Each
of the parties hereto agrees that notice or the service of process in any action, suit or proceeding arising out of, based upon
or relating to this Agreement or the rights and obligations arising hereunder shall be properly served or delivered if delivered
in the manner contemplated by Section 12(a) of this Agreement.
(l) Waiver
of Jury Trial. Each party hereto acknowledges and agrees that any controversy or action which may arise under this Agreement
is likely to involve complicated and difficult issues, and therefore each such party hereby irrevocably and unconditionally waives
any right such party may have to a trial by jury in respect of any litigation or action directly or indirectly arising out of
or relating to this Agreement or the transactions contemplated hereby. Each party certifies and acknowledges that (i)
no representative, agent or attorney of any other party has represented, expressly or otherwise, that such other party would not,
in the event of litigation or action, seek to enforce the foregoing waiver, (ii)
each party understands and has considered the implications of this waiver, (iii)
each party makes this waiver voluntarily, and (iv) each party has been induced to
enter into this Agreement by, among other things, the mutual waivers and certifications in this section 12(l).
(m) No Third Party Beneficiaries.
There are no third party beneficiaries of this Agreement and nothing in this Agreement, express or implied, is intended to confer
on any Person other than the parties hereto (and their respective successors, heirs and permitted assigns), any rights, remedies,
obligations or liabilities.
(n) Assignment. Neither
this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the parties hereto (whether
by operation of law or otherwise) without the prior written consent of the other party; provided that prior to the Closing,
Parent or Merger Sub may assign this Agreement (in whole but not in part) in connection with a permitted assignment by Parent or
Merger Sub, as applicable, of the Merger Agreement. Subject to the foregoing, this Agreement shall be binding upon, inure to the
benefit of and be enforceable by the parties hereto and their respective successors and permitted assigns.
(o) Mutual Drafting.
Each party hereto has participated in the drafting of this Agreement, which each party hereto acknowledges is the result of extensive
negotiations between the parties hereto.
(p) Headings. The
headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation
of this Agreement.
(q) Counterparts.
This Agreement may be executed by facsimile and in one or more counterparts, and by the different parties in separate counterparts,
each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same
agreement.
* * * * *
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
|
Vimicro China (Parent) Limited |
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| |
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| |
|
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By: | |
/s/
Zhaowei (Kevin) Jin |
|
Name: | |
Zhaowei (Kevin) Jin |
|
Title: | |
Director
|
Signature Page to the Rollover Agreement
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
|
VIMICRO CHINA ACQUISITION
LIMITED |
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| |
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|
| |
|
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By: | |
/s/
Zhaowei (Kevin) Jin |
|
Name: | |
Zhaowei (Kevin) Jin |
|
Title: | |
Director |
Signature Page to the Rollover Agreement
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
|
Vimicro Beijing Corporation |
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| |
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| |
|
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By: | |
/s/
Zhonghan (John) Deng |
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Name: | |
Zhonghan
(John) Deng |
|
Title: | |
Director |
|
Address: |
|
15/F Shining Tower, No. 35 Xueyuan Road, Haidian District, Beijing 100191, PRC |
Signature Page to the Rollover Agreement
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
|
Vimicro
Shenzhen Corporation |
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| |
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| |
|
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By: | |
/s/
Zhaowei (Kevin) Jin |
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Name: | |
Zhaowei (Kevin)
Jin |
|
Title: | |
Director |
|
Address: |
|
15/F, Shining
Tower, No. 35, Xueyuan Road, Haidian District, Beijing 100191, PRC |
Signature Page to the Rollover Agreement
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
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Vimicro
Tianjin Corporation |
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| |
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| |
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By: | |
/s/
Xiaodong
(Dave) Yang |
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Name: | |
Xiaodong
(Dave) Yang |
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Title: | |
Director |
|
Address: |
|
16/F Shining
Tower, No. 35 Xueyuan Road, Haidian District, Beijing 100191, PRC |
Signature Page to the Rollover Agreement
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
|
Zhonghan (John) Deng |
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|
|
|
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/s/ Zhonghan (John) Deng |
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|
|
Address: 15/F, Shining Tower, No. 35, Xueyuan Road, Haidian District, Beijing 100191, PRC |
Signature Page to the Rollover Agreement
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
|
Zhaowei (Kevin) Jin |
|
|
|
|
|
/s/ Zhaowei (Kevin) Jin |
|
|
|
Address: |
|
15/F, Shining Tower, No. 35, Xueyuan Road, Haidian District, Beijing 100191, PRC |
Signature Page to the Rollover Agreement
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
|
Xiaodong (Dave) Yang |
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|
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|
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/s/ Xiaodong (Dave) Yang |
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|
|
Address: |
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16/F Shining Tower, No. 35 Xueyuan Road, Haidian District, Beijing 100191, PRC |
Signature Page to the Rollover Agreement
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
|
Alpha
Spring Limited |
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| |
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| |
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By: | |
/s/
Zan Shengda |
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Name: | |
Zan Shengda |
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Title: | |
Director
|
|
Address:
Room 906, Bank of Shanghai Tower, 168 Middle Yincheng Road, Pudong District, Shanghai, People’s Republic of China |
Signature Page to the Rollover Agreement
Schedule 1
Name |
Rollover Shares |
Parent Issued Securities |
Zhonghan (John) Deng |
8,856,3681 |
|
Vimicro Beijing Corporation |
4,513,1922 |
73,219,607 |
Zhaowei (Kevin) Jin |
4,093,6203 |
|
Vimicro Shenzhen Corporation |
1,791,8514 |
14,356,786 |
Xiaodong (Dave) Yang |
1,400,0005 |
|
Vimicro Tianjin Corporation |
7,214,072 |
8,614,071 |
Alpha Spring Limited |
35,530,0006 |
47,377,393 |
1
This amount consists of 8,856,368 Company Options.
2
This amount includes (a) 4,453,192 Company Shares and (b) 15,000 ADSs,
representing 60,000 Company Shares.
3
This amount consists of 4,093,620 Company Options.
4
This amount includes (a) 1,391,851 Company Shares and (b) 100,000 ADSs,
representing 400,000 Company Shares.
5 This amount consists of
1,400,000 Company Options.
6 This amount includes (a)
31,250,000 Company Shares and (b) 1,070,000 ADSs, representing 4,280,000 Company Shares.
Exhibit 7.08
VOTING AGREEMENT
This VOTING AGREEMENT (this
“Agreement”) is entered into as of September 15, 2015 by and among Vimicro China (Parent) Limited, a company
incorporated under the laws of the Cayman Islands (“Parent”), Vimicro China Acquisition Limited, a company
incorporated under the laws of the Cayman Islands and a wholly-owned subsidiary of Parent (“Merger Sub”)
and Alpha Spring Limited, a company incorporated under the laws of the British Virgin Islands (the “Shareholder”)
and, solely for purposes of Section 6.4 hereof, Nantong Zongyi Investment Co., Ltd. and Shengda Zan (collectively, the “Indirect
Owners”). Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Merger
Agreement (as defined below).
WHEREAS, Parent, Merger
Sub and Vimicro International Corporation (the “Company”) have, concurrently with the execution of this Agreement,
entered into an Agreement and Plan of Merger, dated as of the date hereof (as may be amended, supplemented or otherwise modified
from time to time in accordance with its terms, the “Merger Agreement”), which provides, among other things,
for the merger of Merger Sub with and into the Company, with the Company continuing as the surviving corporation (the “Merger”),
upon the terms and subject to the conditions set forth in the Merger Agreement;
WHEREAS, the Shareholder,
Parent and Merger Sub are executing this agreement concurrently with the execution of the Merger Agreement;
WHEREAS, the Shareholder
is the record and beneficial owner (as defined under Rule 13d-3 of the Exchange Act) of (i) 31,250,000 Company Shares, (ii) 1,070,000
ADSs and (iii) Company Options to acquire zero Company Shares (such Company Shares, ADSs and Company Options, together with any
other Company Shares or ADSs acquired (whether beneficially or of record) by the Shareholder after the date hereof and prior to
the earlier of the Effective Time and the termination of all of the Shareholder’s obligations under this Agreement, including
any Company Shares or ADSs acquired by means of purchase, dividend or distribution, or issued upon the exercise of any Company
Options or warrants or the conversion of any convertible securities or otherwise, being collectively referred to herein as the
“Securities”);
WHEREAS, the Shareholder,
pursuant to that certain Rollover Agreement, dated as of the date hereof, by and among Parent, Merger Sub, the Shareholder and
the other shareholders of the Company named therein (the “Rollover Agreement”), has agreed to contribute certain
of its Securities to Parent and/or Merger Sub in accordance with the terms and conditions set forth therein;
WHEREAS, receipt of the
Requisite Shareholder Approval is a condition to the consummation of the Merger; and
WHEREAS, as a condition
to the willingness of Parent, Merger Sub and the Company to enter into the Merger Agreement and as an inducement and in consideration
therefor, the Shareholder has agreed to enter into this Agreement.
NOW, THEREFORE, in consideration
of the foregoing, the mutual covenants and agreements set forth herein, and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
ARTICLE I
VOTING; GRANT AND APPOINTMENT OF PROXY
Section 1.1 Voting.
From and after the date hereof until the earliest of (a) the Effective Time, (b) the termination of the Merger Agreement pursuant
to and in compliance with the terms therein, and (c) the occurrence of a Company Board Recommendation Change (such earlier time,
the “Expiration Time”), the Shareholder irrevocably and unconditionally hereby agrees that at any meeting (whether
annual or extraordinary and each adjourned or postponed meeting) of the Company’s shareholders, however called, or in connection
with any written consent of the Company’s shareholders, the Shareholder shall (i) appear at such meeting or otherwise cause
its Securities to be counted as present thereat for purposes of determining whether a quorum is present and (ii) vote or cause
to be voted (including by proxy or written consent, if applicable) all of the Shareholder’s Securities,
(a) for the authorization
and approval of the Merger Agreement and the transactions contemplated by the Merger Agreement,
(b) against any Acquisition
Proposal, without regard to the terms of such Acquisition Proposal, or any other transaction, proposal, agreement or action made
in opposition to the authorization and approval of the Merger Agreement or in competition or inconsistent with the Merger and the
other transactions contemplated by the Merger Agreement,
(c) against any other
action, agreement or transaction that is intended, that could reasonably be expected, or the effect of which could reasonably be
expected, to materially impede, interfere with, delay, postpone, discourage or adversely affect the Merger or any of the other
transactions contemplated by the Merger Agreement or this Agreement or the performance by the Shareholder of its obligations under
this Agreement, including, without limitation: (i) any extraordinary corporate transaction, such as a merger, consolidation or
other business combination involving the Company or any Subsidiary of the Company (other than the Merger); (ii) a sale, lease or
transfer of a material amount of assets of the Company or any Subsidiary of the Company or a reorganization, recapitalization or
liquidation of the Company or any Subsidiary of the Company; (iii) an election of new members to the board of directors of the
Company, other than nominees to the board of directors of the Company who are serving as directors of the Company on the date of
this Agreement or as otherwise provided in the Merger Agreement; (iv) any material change in the present capitalization or dividend
policy of the Company or any amendment or other change to the Company’s articles of incorporation or bylaws, except if approved
in writing by Parent; (v) any action that would require the consent of Parent pursuant to Section 5.1 of the Merger Agreement,
except if approved in writing by Parent; or (vi) any other material change in the Company’s corporate structure or business,
except if approved in writing by Parent,
(d) against any action,
proposal, transaction or agreement that would reasonably be expected to result in a breach in any respect of any covenant, representation
or warranty or any other obligation or agreement of the Company contained in the Merger Agreement, or of the Shareholder contained
in this Agreement, and
(e) in favor of any other
matter necessary to the consummation of the transactions contemplated by the Merger Agreement.
Section 1.2 Grant of
Irrevocable Proxy; Appointment of Proxy.
1.2.1 From and after the
date hereof until the Expiration Time, the Shareholder hereby irrevocably and unconditionally grants to, and appoints, Parent and
any designee thereof, the Shareholder’s proxy and attorney-in-fact (with full power of substitution), for and in the name,
place and stead of the Shareholder, to vote or cause to be voted (including by proxy or written consent, if applicable) the Securities:
(a) for authorization
and approval of the Merger Agreement and the transactions contemplated by the Merger Agreement;
(b) against any Acquisition
Proposal, without regard to the terms of such Acquisition Proposal, or any other transaction, proposal, agreement or action made
in opposition to authorization and approval of the Merger Agreement or in competition or inconsistent with the Merger and the other
transactions contemplated by the Merger Agreement;
(c) against any other
action, agreement or transaction that is intended, that could reasonably be expected, or the effect of which could reasonably be
expected, to materially impede, interfere with, delay, postpone, discourage or adversely affect the Merger or any of the other
transactions contemplated by the Merger Agreement or this Agreement or the performance by the Shareholder of its obligations under
this Agreement, including, without limitation: (i) any extraordinary corporate transaction, such as a merger, consolidation or
other business combination involving the Company or any Subsidiary of the Company (other than the Merger); (ii) a sale, lease or
transfer of a material amount of assets of the Company or any Subsidiary of the Company or a reorganization, recapitalization or
liquidation of the Company or any Subsidiary of the Company; (iii) an election of new members to the board of directors of the
Company, other than nominees to the board of directors of the Company who are serving as directors of the Company on the date of
this Agreement or as otherwise provided in the Merger Agreement; (iv) any material change in the present capitalization or dividend
policy of the Company or any amendment or other change to the Company’s articles of incorporation or bylaws, except if approved
in writing by Parent; (v) any action that would require the consent of Parent pursuant to Section 5.1 of the Merger Agreement,
except if approved in writing by Parent; or (vi) any other material change in the Company’s corporate structure or business,
except if approved in writing by Parent;
(d) against any action,
proposal, transaction or agreement that would reasonably be expected to result in a breach in any respect of any covenant, representation
or warranty or any other obligation or agreement of the Company contained in the Merger Agreement, or of the Shareholder contained
in this Agreement; and
(e) in favor of any other
matter necessary to the consummation of the transactions contemplated by the Merger Agreement.
1.2.2 The Shareholder hereby
represents that any proxies heretofore given in respect of the Shareholder’s Securities, if any, are revocable, and hereby
revokes such proxies.
1.2.3 The Shareholder hereby
affirms that the irrevocable proxy set forth in this Section 1.2 is given in connection with the execution of the Merger
Agreement, and that such irrevocable proxy is given to secure the performance of the duties of the Shareholder under this Agreement.
The Shareholder hereby further affirms that the irrevocable proxy is coupled with an interest and, except as set forth in this
Section 1.2, is intended to be irrevocable prior to the Expiration Time. If for any reason the proxy granted herein is not
irrevocable, then the Shareholder agrees to vote the Shareholder’s Securities in accordance with Section 1.1 above
as instructed by Parent in writing prior to the Expiration Time. The parties agree that the foregoing is a voting agreement.
Section 1.3 Restrictions
on Transfers. Except as provided for in the Rollover Agreement or pursuant to the Merger Agreement, the Shareholder hereby
agrees that, from the date hereof until the Expiration Time, the Shareholder shall not, directly or indirectly, (a) sell, transfer,
assign, tender in any tender or exchange offer, pledge, encumber, hypothecate or similarly dispose of (by merger, by testamentary
disposition, by operation of law or otherwise), either voluntarily or involuntarily, or enter into any Contract, option or other
arrangement or understanding with respect to the sale, transfer, assignment, pledge, Lien, hypothecation or similar disposition
of (by merger, by testamentary disposition, by operation of law or otherwise) (collectively, “Transfer”), any
Securities, (b) deposit any Securities into a voting trust or enter into a voting agreement or arrangement or grant any proxy or
power of attorney with respect thereto that is inconsistent with this Agreement, (c) convert or exchange, or take any action which
would result in the conversion or exchange, of any Securities, or (d) agree (whether or not in writing) to take any of the actions
referred to in the foregoing clauses (a), (b) or (c).
Section 1.4 Inconsistent
Agreements. The Shareholder hereby covenants and agrees that, except for this Agreement, the Shareholder (a) has not entered
into, and shall not enter into at any time while this Agreement remains in effect, any voting agreement or voting trust with respect
to the Shareholder’s Securities and (b) has not granted, and shall not grant at any time while this Agreement remains in
effect, a proxy, consent or power of attorney with respect to the Shareholder’s Securities.
ARTICLE II
NO SOLICITATION
Section 2.1 Restricted
Activities. Prior to the Expiration Time, the Shareholder in its capacity as a shareholder of the Company shall not, and shall
use its reasonable best efforts to cause its officers, directors, employees, agents, advisors and other representatives (in each
case, acting in their capacity as such to the Shareholder, in its capacity as a shareholder (the “Shareholder’s
Representatives”)) not to, in each case, directly or indirectly take any action that the Company is prohibited from taking
under Section 5.2 of the Merger Agreement. Section 2.2 Notification. From and after the date hereof until the Expiration
Time, the Shareholder shall promptly advise each of Parent and the Company orally (and in any event within 24 hours) and subsequently
in writing of (x) any Acquisition Proposal, (y) any request it receives in its capacity as a shareholder of the Company for non-public
information relating to the Company or any Subsidiary of the Company, other than requests for information not reasonably expected
to be related to or result into an Acquisition Proposal, and (z) any inquiry or request for discussion or negotiation it receives
in its capacity as a shareholder of the Company regarding an Acquisition Proposal, including in each case the identity of the person
making any such Acquisition Proposal or indication or inquiry and the terms of any such Acquisition Proposal or indication or inquiry
(including, if applicable, copies of any written requests, proposals or offers, including proposed agreements). The Shareholder,
in its capacity as a shareholder of the Company, shall keep each of Parent and the Company reasonably informed on a reasonably
current basis of the status and terms (including any material changes to the terms thereof) of any such Acquisition Proposal or
indication or inquiry (including, if applicable, any revised copies of written requests, proposals and offers) and the status of
any such discussions or negotiations to the extent known by the Shareholder. This Section 2.2 shall not apply to any Acquisition
Proposal received by the Company. The Shareholder’s receipt, in its capacity as a shareholder of the Company, of any Acquisition
Proposal shall not relieve the Shareholder from any of its obligations hereunder.
ARTICLE III
REPRESENTATIONS, WARRANTIES AND COVENANTS
OF THE SHAREHOLDER
Section 3.1 Representations
and Warranties. The Shareholder represents and warrants to Parent and Merger Sub as follows: (a) the Shareholder has full legal
right, power and authority to execute and deliver this Agreement, to perform the Shareholder’s obligations hereunder and
to consummate the transactions contemplated hereby; (b) this Agreement has been duly executed and delivered by the Shareholder
and the execution, delivery and performance of this Agreement by the Shareholder and the consummation of the transactions contemplated
hereby have been duly authorized by all necessary action on the part of the Shareholder and no other actions or proceedings on
the part of the Shareholder are necessary to authorize this Agreement or to consummate the transactions contemplated hereby, (c)
assuming this Agreement constitutes the valid and binding agreement of Parent and Merger Sub, this Agreement constitutes the valid
and binding agreement of the Shareholder, enforceable against the Shareholder in accordance with its terms, (d) the execution and
delivery of this Agreement by the Shareholder does not, and the consummation of the transactions contemplated hereby and the compliance
with the provisions hereof will not, conflict with or violate any Law or agreement binding upon the Shareholder or the Shareholder’s
Securities, nor require any authorization, consent or approval of, or filing with, any Governmental Authority, except for filings
with the Securities and Exchange Commission by the Shareholder, and (e) except for such transfer restrictions of general applicability
as may be provided under the Securities Act of 1933, as amended, and the “blue sky” laws of the various states of the
United States, the Shareholder owns, beneficially and of record, or controls all of its Securities (and any additional Securities
acquired after the date hereof), and all of such Securities are free and clear of any proxy, voting restriction, adverse claim
or other Lien (other than any restrictions created by this Agreement), and has sole voting power and sole power of disposition
with respect to the Shareholder’s Securities, with no restrictions on the Shareholder’s rights of voting or disposition
pertaining thereto and no person other than the Shareholder has any right to direct or approve the voting or disposition of any
of the Shareholder’s Securities. The Shareholder understands and acknowledges that Parent, Merger Sub and the Company are
entering into the Merger Agreement in reliance upon the Shareholder’s execution, delivery and performance of this Agreement.
Section 3.2 Covenants.
The Shareholder hereby:
(a) agrees, prior to the
Expiration Time, not to take any action that would make any representation or warranty of the Shareholder contained herein untrue
or incorrect or have or could have the effect of preventing, impeding or interfering with or adversely affecting the performance
by the Shareholder of its obligations under this Agreement;
(b) irrevocably waives,
and agrees not to exercise, any rights of appraisal or rights of dissent from the Merger that the Shareholder may have with respect
to the Shareholder’s Securities (including without limitation any appraisal rights pursuant to Section 238 of the Cayman
Companies Law) prior to the Expiration Time;
(c) agrees to promptly
notify Parent and Merger Sub of the number of any new Securities acquired by the Shareholder after the date hereof and prior to
the Expiration Time. Any such Securities shall be subject to the terms of this Agreement as though owned by the Shareholder on
the date hereof;
(d) agrees to permit the
Company to publish and disclose in the Proxy Statement, the Shareholder’s identity and ownership of Company Shares, ADSs
and Company Options or other equity securities of the Company and the nature of the Shareholder’s commitments, arrangements
and understandings under this Agreement;
(e) authorizes the Company,
Parent, Merger Sub and their respective counsel and representatives to notify the Company’s transfer agent that there is
a stop transfer order with respect to all of the Shareholder’s Securities (and that this Agreement places limits on the voting
and transfer of such Securities);
(f) agrees that, prior
to the Expiration Time, it shall support, and grant all approvals, and take all actions reasonably requested by Parent, Merger
Sub or the Company to ensure that any and all anti-takeover laws shall be inapplicable to this Agreement, the Merger Agreement,
the Merger or the other transactions contemplated by the Merger Agreement; and
(g) agrees that, upon
request of Parent, Merger Sub or the Company, the Shareholder shall execute and deliver any additional documents, consents or instruments
and take such further actions as may reasonably be deemed by Parent or Merger Sub to be necessary or desirable to carry out the
provisions of this Agreement.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF PARENT
AND MERGER SUB
Section 4.1 Representations
and Warranties of Parent and Merger Sub. Each of Parent and Merger Sub hereby, jointly and severally, represents and warrants
to the Shareholder as follows: (a) this Agreement has been duly and validly authorized by each of Parent’s and Merger Sub’s
respective board of directors, (b) this Agreement has been duly executed and delivered by a duly authorized officer or other representative
of each of Parent and Merger Sub and (c) assuming this Agreement constitutes a valid and binding agreement of the Shareholder,
this Agreement constitutes a valid and binding agreement of Merger Sub and Parent, enforceable against Merger Sub or Parent, as
applicable, in accordance with its terms.
ARTICLE V
TERMINATION
This Agreement shall terminate
and be of no further force or effect upon the earlier to occur of (A) the Closing and (B) the date of termination of the Merger
Agreement in accordance with its terms. Notwithstanding the preceding sentence, this Article V and Article VI shall
survive any termination of this Agreement. Nothing in this Article V shall relieve or otherwise limit any party of liability
for willful breach of this Agreement.
ARTICLE VI
MISCELLANEOUS
Section 6.1 Expenses.
Except as otherwise may be agreed in writing, all costs, fees and expenses incurred in connection with this Agreement and the transactions
contemplated hereby shall be paid by the party incurring or required to incur such costs, fees and expenses.
Section 6.2 Notices.
Any notices or other communications required or permitted under, or otherwise in connection with this Agreement, shall be in writing
and shall be deemed to have been duly given when delivered in person or upon confirmation of receipt when transmitted by facsimile
transmission or by electronic mail (but only if followed by transmittal by overnight courier or hand for delivery on the next Business
Day) or on receipt after dispatch by registered or certified mail, postage prepaid, addressed, or on the next Business Day if transmitted
by international overnight courier, in each case as follows:
If to Parent or Merger Sub, at:
Suite #4-210, Governors Square
23 Lime Tree Bay Avenue
PO Box 32311
Grand Cayman KY1-1209
Cayman Islands
with a copy to:
16/F Shining Tower
No. 35 Xueyuan Road
Haidian District, Beijing 100191
People’s Republic of China
Attention: Kevin Jin
with a copy (which shall not constitute notice)
to:
Suite 2101, Building C, Yintai Center
#2 Jianguomenwai Ave.
Chaoyang District
Beijing 100022, China
Attention: Steven Liu
Facsimile No.: +86-10-5680-3889
If to the Shareholder or the Indirect Owner,
to the address set forth on the signature page hereto under the Shareholder’s or the Indirect Owner’s name. Or, in
each case, to such other address or to the attention of such other person as the recipient party shall have specified by prior
written notice to the sending party.
Section 6.3 No Partnership,
Agency, or Joint Venture. This Agreement is intended to create, and creates, a contractual relationship and is not intended
to create, and does not create, any agency, partnership, joint venture or any like relationship between the parties hereto.
Section 6.4 Guarantee.
(a) The Indirect Owners hereby, jointly and severally, unconditionally and irrevocably guarantee to Parent, Merger Sub and the
Company the performance of all obligations of the Shareholder under and in accordance with this Agreement and irrevocably guarantee
to Parent and Merger Sub the performance of all obligations of the Shareholder under and in accordance with the Rollover Agreement
and agree, on demand and without any other notice whatsoever, to perform or cause to be performed all of the obligations of the
Shareholder hereunder and thereunder, and it shall not be necessary for Parent, Merger Sub or the Company, in order to enforce
such performance by the Shareholder or the Indirect Owners, first to institute suit or pursue or exhaust any rights or remedies
against the Shareholder or others liable for the performance of such obligation, or to join the Shareholder in any action to enforce
the Shareholder’s obligations hereunder, or to resort to any other means of obtaining performance from the Shareholder.
(b) Each Indirect Owner hereby waives all
defenses based upon suretyship or impairment of collateral, together with any defenses that it may have or assert with respect
to the applicable guaranteed obligations (other than actual performance), including, without limitation, discharge in bankruptcy,
failure of consideration, breach of warranty, statute of frauds, statute of limitations, accord and satisfaction, release, usury,
lack of legal capacity, delay or lack of diligence.
Section 6.5 Severability.
Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be
ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms
and provisions of this Agreement in any other jurisdiction. If any provision of this Agreement is so broad as to be unenforceable,
such provision shall be interpreted to be only as broad as is enforceable.
Section 6.6 Entire
Agreement; Benefit. This Agreement, the Merger Agreement and the Rollover Agreement embody the complete agreement and understanding
among the parties hereto with respect to the subject matter hereof and thereof and supersede and preempt any prior understandings,
agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in
any way. The representations and warranties set forth herein and the covenants set forth herein have been made solely for the benefit
of the parties to this Agreement and (a) may be intended not as statements of fact, but rather as a way of allocating the risk
to one of the parties if those statements prove to be inaccurate and (b) may apply standards of materiality in a way that is different
from what may be viewed as material by shareholders of, or other investors in, the Company.
Section 6.7 Specific
Performance. The Shareholder acknowledges that monetary damages would not be an adequate remedy in the event that any covenant
or agreement in this Agreement is not performed in accordance with its terms, and it is therefore agreed that, in addition to and
without limiting any other remedy or right it may have, Parent, Merger Sub and the Company will have the right to an injunction,
temporary restraining order or other equitable relief in any court of competent jurisdiction enjoining any such breach and enforcing
specifically the terms and provisions hereof. The Shareholder agrees not to oppose the granting of such relief in the event a court
determines that such a breach has occurred, and to waive any requirement for the securing or posting of any bond in connection
with such remedy. All rights, powers, and remedies provided under this Agreement or otherwise available in respect hereof at law
or in equity shall be cumulative and not alternative, and the exercise or beginning of the exercise of any thereof by Parent, Merger
Sub or the Company shall not preclude the simultaneous or later exercise of any other such right, power or remedy by such party.
Section 6.8 Amendments;
Waivers. At any time prior to the Expiration Time, any provision of this Agreement may be amended or waived if, and only if,
such amendment or waiver is in writing and signed, in the case of an amendment, by the Shareholder, Parent, Merger Sub and the
Company, or in the case of a waiver, by the party against whom the waiver is to be effective. Notwithstanding the foregoing, no
failure or delay by Merger Sub, Parent or the Company in exercising any right hereunder shall operate as a waiver thereof nor shall
any single or partial exercise thereof preclude any other or further exercise of any other right hereunder.
Section 6.9 Governing
Law. (a) This Agreement (other than with respect to matters relating to fiduciary duties of the Company Board), and all claims
or causes of action (whether in contract, tort or otherwise) that may be based upon, arise out of or relate to this Agreement (other
than with respect to matters relating to fiduciary duties of the Company Board) or the negotiation, execution or performance hereof
(other than with respect to matters relating to fiduciary duties of the Company Board) (including any claim or cause of action
based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement or as an inducement
to enter into this Agreement), shall be interpreted, construed, performed and enforced in accordance with the Laws of the State
of New York without giving effect to its principles or rules of conflict of laws to the extent such principles or rules would require
or permit the application of the Laws of another jurisdiction.
(b) All claims or causes
of action (whether in contract, tort or otherwise) that may be based upon, arise out of or relate to matters relating to fiduciary
duties of the Company Board, shall be interpreted, construed, performed and enforced in accordance with the Laws of the Cayman
Islands without giving effect to its principles or rules of conflict of laws to the extent such principles or rules would require
or permit the application of the Laws of another jurisdiction.
Section 6.10 Consent
to Jurisdiction. In the event any dispute arises among the parties hereto out of or in relation to this Agreement, including
any dispute regarding its breach, termination or validity, the parties shall attempt in the first instance to resolve such dispute
through friendly consultations. If any dispute has not been resolved by friendly consultations within thirty (30) days after any
party has served written notice on the other parties requesting the commencement of such consultations, then any party may demand
that the dispute be finally settled by arbitration in accordance with the following provisions of this Section 6.10. The arbitration
shall be conducted in accordance with the UNCITRAL Arbitration Rules and the Hong Kong International Arbitration Centre ("HKIAC")
Procedures for the Administration of International Arbitration in force at the date of this Agreement, which rules are deemed to
be incorporated by reference in this Section 6.10. The place of the arbitration shall be Hong Kong and the language of the arbitration
shall be English. The appointing authority shall be the HKIAC. There shall be three arbitrators. One arbitrator shall be nominated
by the Company or the Parent, as applicable, and one arbitrator shall be nominated by the Shareholder. If any party shall abstain
from nominating their arbitrator, the HKIAC shall appoint such arbitrator. The two arbitrators so chosen shall select a third arbitrator;
provided that if such two arbitrators shall fail to choose a third arbitrator within 30 days after such two arbitrators have been
selected, the HKIAC, upon the request of any party, shall appoint a third arbitrator. The third arbitrator shall be the presiding
arbitrator. The arbitration shall be conducted in private. The parties agree that all documents and evidence submitted in the arbitration
(including without limitation any statements of case and any interim or final award, as well as the fact that an arbitral award
has been made) shall remain confidential both during and after any final award that is rendered unless the parties hereto otherwise
agree in writing. Upon and after the submission of any dispute to arbitration, the parties shall continue to exercise their remaining
respective rights, and fulfill their remaining respective obligations under this Agreement, except insofar as the same may relate
directly to the matters in dispute. The parties hereby agree that any arbitration award rendered in accordance with the provisions
of this Section 6.10 shall be final and binding upon them, and the parties further agree that such award may be enforced by any
court having jurisdiction over the party against which the award has been rendered or the assets of such party wherever the same
may be located. In any arbitration proceeding, any legal proceeding to enforce any arbitration award and in any other legal proceeding
among the parties pursuant to or relating to this Agreement, each party expressly waives the defense of sovereign immunity and
any other defense based on the fact or allegation that it is an agency or instrumentality of a sovereign state or is otherwise
entitled to immunity.
Section 6.11 WAIVER
OF JURY TRIAL. Each party hereto acknowledges and agrees that any controversy or action
which may arise under this Agreement is likely to involve complicated and difficult issues, and therefore each such party hereby
irrevocably and unconditionally waives any right such party may have to a trial by jury in respect of any litigation or action
directly or indirectly arising out of or relating to this Agreement or the transactions contemplated hereby. Each party certifies
and acknowledges that (i) no representative, agent or attorney of any other party
has represented, expressly or otherwise, that such other party would not, in the event of litigation or action, seek to enforce
the foregoing waiver, (ii) each party understands and has considered the implications
of this waiver, (iii) each party makes this waiver voluntarily, and (iv)
each party has been induced to enter into this Agreement by, among other things, the mutual waivers and certifications in this
section.
Section 6.12 Third
Party Beneficiaries. The Company is intended to be an express third party beneficiary of this Agreement, with full rights of
enforcement of this Agreement against the Shareholder and the Indirect Owners. Other than as set forth in the preceding sentence,
there are no third party beneficiaries of this Agreement and nothing in this Agreement, express or implied, is intended to confer
on any Person other than the parties hereto (and their respective successors, heirs and permitted assigns), any rights, remedies,
obligations or liabilities.
Section 6.13 Assignment;
Binding Effect. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of
the parties hereto (whether by operation of Law or otherwise) without the prior written consent of the other parties or the Company,
except that (i) Merger Sub may assign, in its sole discretion, any of or all of its rights, interest and obligations under this
Agreement to Parent or to any direct or indirect wholly owned subsidiary of Parent, but no such assignment shall relieve Merger
Sub of its obligations hereunder and (ii) Parent and Merger Sub may assign this Agreement (in whole but not in part) in connection
with a permitted assignment of the Merger Agreement by Parent or Merger Sub, as applicable. Subject to the preceding sentence,
this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted
assigns and, in the case of the Shareholder, his estate, heirs, beneficiaries, personal representatives and executors. Parent shall
cause Merger Sub, and any assignee thereof, to perform its obligations under this Agreement and shall be responsible for any failure
of Merger Sub or such assignee to comply with any representation, warranty, covenant or other provision of this Agreement.
Section 6.14 Mutual
Drafting. Each party hereto has participated in the drafting of this Agreement, which each party hereto acknowledges is the
result of extensive negotiations between the parties hereto.
Section 6.15 Headings.
Headings of the Articles and Sections of this Agreement are for convenience of the parties only and shall be given no substantive
or interpretive effect whatsoever.
Section 6.16 Interpretation.
When a reference is made in this Agreement to an Article or Section, such reference shall be to an Article or Section of this Agreement
unless otherwise indicated. Whenever the words “include,” “includes” or “including” are used
in this Agreement, they shall be deemed to be followed by the words “without limitation.” The words “hereof,”
“herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement
as a whole and not to any particular provision of this Agreement. The word “or” shall be deemed to mean “and/or.”
All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered
pursuant thereto unless otherwise defined therein. The definitions contained in this Agreement are applicable to the singular as
well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such term. Any agreement,
instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement,
instrument or statute as from time to time amended, modified or supplemented, including (in the case of agreements or instruments)
by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments
thereto and instruments incorporated therein. Each of the parties hereto has participated in the drafting and negotiation of this
Agreement. If an ambiguity or question of intent or interpretation arises, this Agreement must be construed as if it is drafted
by all the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of authorship
of any of the provisions of this Agreement.
Section 6.17 Counterparts.
This Agreement may be executed in two or more consecutive counterparts (including by facsimile or email pdf format), each of which
shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument, and shall become
effective when one or more counterparts have been signed by each of the parties and delivered (by telecopy, email pdf format or
otherwise) to the other parties.
[Signature Pages to follow]
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
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Alpha
Spring Limited |
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/s/ Zan Shengda |
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Zan Shengda |
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Director
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Address: |
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Room 906,
Bank of Shanghai Tower, |
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168 Middle
Yincheng Road, |
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Pudong District,
Shanghai, |
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People’s Republic of
China |
Signature Page to the Voting Agreement
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
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Nantong Zongyi Investment Co., Ltd. |
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By: | |
/s/ Zan Shengda |
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Name: | |
Zan Shengda |
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Director |
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Room 906, Bank of Shanghai Tower, |
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168 Middle Yincheng Road, |
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Pudong District, Shanghai, |
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People’s Republic of China |
Signature Page to the Voting Agreement
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
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Shengda Zan |
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/s/
Shengda Zan |
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Address: |
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Room 906, Bank of Shanghai
Tower, |
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168 Middle Yincheng Road, |
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Pudong District, Shanghai, |
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People’s Republic of
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Signature Page to the Voting Agreement
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
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VIMICRO CHINA (PARENT) LIMITED |
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Zhaowei (Kevin) Jin |
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Name: | |
Zhaowei (Kevin) Jin |
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Title: | |
Director |
Signature Page to the Voting Agreement
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
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VIMICRO
CHINA ACQUISITION LIMITED |
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By: | |
/s/ Zhaowei (Kevin) Jin |
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Name: | |
Zhaowei
(Kevin) Jin |
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Title: | |
Director |
Signature Page to the Voting Agreement
Exhibit 7.09
VOTING AGREEMENT
This VOTING AGREEMENT (this
“Agreement”) is entered into as of September 15, 2015 by and among Vimicro China (Parent) Limited, a company
incorporated under the laws of the Cayman Islands (“Parent”), Vimicro China Acquisition Limited, a company
incorporated under the laws of the Cayman Islands and a wholly-owned subsidiary of Parent (“Merger Sub”)
and Vimicro Tianjin Corporation, a company incorporated under the laws of the British Virgin Islands (“Holdco”)
and Xiaodong (Dave) Yang, a citizen of the People’s Republic of China (“Mr. Yang”, together with the Holdco,
collectively, the “Shareholders” and each a “Shareholder”). Capitalized terms used but not
defined herein shall have the meanings ascribed to such terms in the Merger Agreement (as defined below).
WHEREAS, Parent, Merger
Sub and Vimicro International Corporation (the “Company”) have, concurrently with the execution of this Agreement,
entered into an Agreement and Plan of Merger, dated as of the date hereof (as may be amended, supplemented or otherwise modified
from time to time in accordance with its terms, the “Merger Agreement”), which provides, among other things,
for the merger of Merger Sub with and into the Company, with the Company continuing as the surviving corporation (the “Merger”),
upon the terms and subject to the conditions set forth in the Merger Agreement;
WHEREAS, the Shareholders,
Parent and Merger Sub are executing this agreement concurrently with the execution of the Merger Agreement;
WHEREAS, the Holdco is the
record and beneficial owner (as defined under Rule 13d-3 of the Exchange Act) of 9,053,961 Company Shares and Mr. Yang is the record
and beneficial owner of (i) 108,325 ADSs, (ii) Company Options to acquire 1,400,000 Company Shares and (iii) Company Shares owned
of record by Holdco (such Company Shares, ADSs and Company Options, together with any other Company Shares or ADSs acquired (whether
beneficially or of record) by the Shareholders after the date hereof and prior to the earlier of the Effective Time and the termination
of all of the Shareholders’ obligations under this Agreement, including any Company Shares or ADSs acquired by means of purchase,
dividend or distribution, or issued upon the exercise of any Company Options or warrants or the conversion of any convertible securities
or otherwise, being collectively referred to herein as the “Securities”);
WHEREAS, each Shareholder,
pursuant to that certain Rollover Agreement, dated as of the date hereof, by and among Parent, Merger Sub, the Shareholders and
the other shareholders of the Company named therein (the “Rollover Agreement”), has agreed to contribute certain
of its Securities to Parent and/or Merger Sub in accordance with the terms and conditions set forth therein;
WHEREAS, receipt of the
Requisite Shareholder Approval is a condition to the consummation of the Merger; and
WHEREAS, as a condition
to the willingness of Parent, Merger Sub and the Company to enter into the Merger Agreement and as an inducement and in consideration
therefor, the Shareholders have agreed to enter into this Agreement.
NOW, THEREFORE, in consideration
of the foregoing, the mutual covenants and agreements set forth herein, and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
ARTICLE I
VOTING; GRANT AND APPOINTMENT OF PROXY
Section 1.1 Voting.
From and after the date hereof until the earliest of (a) the Effective Time, (b) the termination of the Merger Agreement pursuant
to and in compliance with the terms therein, and (c) the occurrence of a Company Board Recommendation Change (such earlier time,
the “Expiration Time”), each Shareholder irrevocably and unconditionally hereby agrees that at any meeting
(whether annual or extraordinary and each adjourned or postponed meeting) of the Company’s shareholders, however called,
or in connection with any written consent of the Company’s shareholders, such Shareholder shall (i) appear at such meeting
or otherwise cause its Securities to be counted as present thereat for purposes of determining whether a quorum is present and
(ii) vote or cause to be voted (including by proxy or written consent, if applicable) all of the Securities,
(a) for the authorization
and approval of the Merger Agreement and the transactions contemplated by the Merger Agreement,
(b) against any Acquisition
Proposal, without regard to the terms of such Acquisition Proposal, or any other transaction, proposal, agreement or action made
in opposition to the authorization and approval of the Merger Agreement or in competition or inconsistent with the Merger and the
other transactions contemplated by the Merger Agreement,
(c) against any other
action, agreement or transaction that is intended, that could reasonably be expected, or the effect of which could reasonably be
expected, to materially impede, interfere with, delay, postpone, discourage or adversely affect the Merger or any of the other
transactions contemplated by the Merger Agreement or this Agreement or the performance by such Shareholder of its obligations under
this Agreement, including, without limitation: (i) any extraordinary corporate transaction, such as a merger, consolidation or
other business combination involving the Company or any Subsidiary of the Company (other than the Merger); (ii) a sale, lease or
transfer of a material amount of assets of the Company or any Subsidiary of the Company or a reorganization, recapitalization or
liquidation of the Company or any Subsidiary of the Company; (iii) an election of new members to the board of directors of the
Company, other than nominees to the board of directors of the Company who are serving as directors of the Company on the date of
this Agreement or as otherwise provided in the Merger Agreement; (iv) any material change in the present capitalization or dividend
policy of the Company or any amendment or other change to the Company’s articles of incorporation or bylaws, except if approved
in writing by Parent; (v) any action that would require the consent of Parent pursuant to Section 5.1 of the Merger Agreement,
except if approved in writing by Parent; or (vi) any other material change in the Company’s corporate structure or business,
except if approved in writing by Parent,
(d) against any action,
proposal, transaction or agreement that would reasonably be expected to result in a breach in any respect of any covenant, representation
or warranty or any other obligation or agreement of the Company contained in the Merger Agreement, or of such Shareholder contained
in this Agreement, and
(e) in favor of any other
matter necessary to the consummation of the transactions contemplated by the Merger Agreement.
Section 1.2 Grant of
Irrevocable Proxy; Appointment of Proxy.
1.2.1 From and after the
date hereof until the Expiration Time, each Shareholder hereby irrevocably and unconditionally grants to, and appoints, Parent
and any designee thereof, such Shareholder’s proxy and attorney-in-fact (with full power of substitution), for and in the
name, place and stead of such Shareholder, to vote or cause to be voted (including by proxy or written consent, if applicable)
the Securities:
(a) for authorization
and approval of the Merger Agreement and the transactions contemplated by the Merger Agreement;
(b) against any Acquisition
Proposal, without regard to the terms of such Acquisition Proposal, or any other transaction, proposal, agreement or action made
in opposition to authorization and approval of the Merger Agreement or in competition or inconsistent with the Merger and the other
transactions contemplated by the Merger Agreement;
(c) against any other
action, agreement or transaction that is intended, that could reasonably be expected, or the effect of which could reasonably be
expected, to materially impede, interfere with, delay, postpone, discourage or adversely affect the Merger or any of the other
transactions contemplated by the Merger Agreement or this Agreement or the performance by such Shareholder of its obligations under
this Agreement, including, without limitation: (i) any extraordinary corporate transaction, such as a merger, consolidation or
other business combination involving the Company or any Subsidiary of the Company (other than the Merger); (ii) a sale, lease or
transfer of a material amount of assets of the Company or any Subsidiary of the Company or a reorganization, recapitalization or
liquidation of the Company or any Subsidiary of the Company; (iii) an election of new members to the board of directors of the
Company, other than nominees to the board of directors of the Company who are serving as directors of the Company on the date of
this Agreement or as otherwise provided in the Merger Agreement; (iv) any material change in the present capitalization or dividend
policy of the Company or any amendment or other change to the Company’s articles of incorporation or bylaws, except if approved
in writing by Parent; (v) any action that would require the consent of Parent pursuant to Section 5.1 of the Merger Agreement,
except if approved in writing by Parent; or (vi) any other material change in the Company’s corporate structure or business,
except if approved in writing by Parent;
(d) against any action,
proposal, transaction or agreement that would reasonably be expected to result in a breach in any respect of any covenant, representation
or warranty or any other obligation or agreement of the Company contained in the Merger Agreement, or of such Shareholder contained
in this Agreement; and
(e) in favor of any other
matter necessary to the consummation of the transactions contemplated by the Merger Agreement.
1.2.2 Each Shareholder hereby
represents that any proxies heretofore given in respect of such Shareholder’s Securities, if any, are revocable, and hereby
revokes such proxies.
1.2.3 Each Shareholder hereby
affirms that the irrevocable proxy set forth in this Section 1.2 is given in connection with the execution of the Merger
Agreement, and that such irrevocable proxy is given to secure the performance of the duties of such Shareholder under this Agreement.
Each Shareholder hereby further affirms that the irrevocable proxy is coupled with an interest and, except as set forth in this
Section 1.2, is intended to be irrevocable prior to the Expiration Time. If for any reason the proxy granted herein is not
irrevocable, then each Shareholder agrees to vote such Shareholder’s Securities in accordance with Section 1.1 above
as instructed by Parent in writing prior to the Expiration Time. The parties agree that the foregoing is a voting agreement.
Section 1.3 Restrictions
on Transfers. Except as provided for in the Rollover Agreement or pursuant to the Merger Agreement, the Shareholders hereby
agree that, from the date hereof until the Expiration Time, the Shareholders shall not, directly or indirectly, (a) sell, transfer,
assign, tender in any tender or exchange offer, pledge, encumber, hypothecate or similarly dispose of (by merger, by testamentary
disposition, by operation of law or otherwise), either voluntarily or involuntarily, or enter into any Contract, option or other
arrangement or understanding with respect to the sale, transfer, assignment, pledge, Lien, hypothecation or similar disposition
of (by merger, by testamentary disposition, by operation of law or otherwise) (collectively, “Transfer”), any
Securities, (b) deposit any Securities into a voting trust or enter into a voting agreement or arrangement or grant any proxy or
power of attorney with respect thereto that is inconsistent with this Agreement, (c) convert or exchange, or take any action which
would result in the conversion or exchange, of any Securities, or (d) agree (whether or not in writing) to take any of the actions
referred to in the foregoing clauses (a), (b) or (c).
Section 1.4 Inconsistent
Agreements. The Shareholders hereby covenant and agree that, except for this Agreement, none of the Shareholders (a) has entered
into, or will enter into at any time while this Agreement remains in effect, any voting agreement or voting trust with respect
to the Securities and (b) has granted, or will grant at any time while this Agreement remains in effect, a proxy, consent or power
of attorney with respect to the Securities.
ARTICLE II
NO SOLICITATION
Section 2.1 Restricted
Activities. Prior to the Expiration Time, each Shareholder in its capacity as a shareholder of the Company shall not, and shall
use its reasonable best efforts to cause its officers, directors, employees, agents, advisors and other representatives (in each
case, acting in their capacity as such to such Shareholder, in its capacity as a shareholder (the “Shareholder’s
Representatives”)) not to, in each case, directly or indirectly take any action that the Company is prohibited from taking
under Section 5.2 of the Merger Agreement.
Section 2.2 Notification.
From and after the date hereof until the Expiration Time, the Shareholders shall promptly advise each of Parent and the Company
orally (and in any event within 24 hours) and subsequently in writing of (x) any Acquisition Proposal, (y) any request it receives
in its capacity as a shareholder of the Company for non-public information relating to the Company or any Subsidiary of the Company,
other than requests for information not reasonably expected to be related to or result into an Acquisition Proposal, and (z) any
inquiry or request for discussion or negotiation it receives in its capacity as a shareholder of the Company regarding an Acquisition
Proposal, including in each case the identity of the person making any such Acquisition Proposal or indication or inquiry and the
terms of any such Acquisition Proposal or indication or inquiry (including, if applicable, copies of any written requests, proposals
or offers, including proposed agreements). The Shareholder, in its capacity as a shareholder of the Company, shall keep each of
Parent and the Company reasonably informed on a reasonably current basis of the status and terms (including any material changes
to the terms thereof) of any such Acquisition Proposal or indication or inquiry (including, if applicable, any revised copies of
written requests, proposals and offers) and the status of any such discussions or negotiations to the extent known by the Shareholder.
This Section 2.2 shall not apply to any Acquisition Proposal received by the Company. The Shareholder’s receipt, in
its capacity as a shareholder of the Company, of any Acquisition Proposal shall not relieve the Shareholder from any of its obligations
hereunder.
ARTICLE III
REPRESENTATIONS, WARRANTIES AND COVENANTS
OF THE SHAREHOLDERS
Section 3.1 Representations
and Warranties. Each Shareholder jointly and severally represents and warrants to Parent and Merger Sub as follows: (a) such
Shareholder has full legal right, power and authority to execute and deliver this Agreement, to perform such Shareholder’s
obligations hereunder and to consummate the transactions contemplated hereby; (b) this Agreement has been duly executed and delivered
by such Shareholder and the execution, delivery and performance of this Agreement by such Shareholder and the consummation of the
transactions contemplated hereby have been duly authorized by all necessary action on the part of such Shareholder and no other
actions or proceedings on the part of such Shareholder are necessary to authorize this Agreement or to consummate the transactions
contemplated hereby, (c) assuming this Agreement constitutes the valid and binding agreement of Parent and Merger Sub, this Agreement
constitutes the valid and binding agreement of such Shareholder, enforceable against such Shareholder in accordance with its terms,
(d) the execution and delivery of this Agreement by such Shareholder does not, and the consummation of the transactions contemplated
hereby and the compliance with the provisions hereof will not, conflict with or violate any Law or agreement binding upon such
Shareholder or such Shareholder’s Securities, nor require any authorization, consent or approval of, or filing with, any
Governmental Authority, except for filings with the Securities and Exchange Commission by such Shareholder, and (e) except for
such transfer restrictions of general applicability as may be provided under the Securities Act of 1933, as amended, and the “blue
sky” laws of the various states of the United States, such Shareholder owns, beneficially and of record, or controls all
of its Securities (and any additional Securities acquired after the date hereof), and all of such Securities are free and clear
of any proxy, voting restriction, adverse claim or other Lien (other than any restrictions created by this Agreement), and has
sole voting power and sole power of disposition with respect to such Shareholder’s Securities, with no restrictions on such
Shareholder’s rights of voting or disposition pertaining thereto and no person other than such Shareholder has any right
to direct or approve the voting or disposition of any of the Shareholder’s Securities. Such Shareholder understands and acknowledges
that Parent, Merger Sub and the Company are entering into the Merger Agreement in reliance upon such Shareholder’s execution,
delivery and performance of this Agreement.
Section 3.2 Covenants.
Each Shareholder hereby:
(a) agrees, prior to the
Expiration Time, not to take any action that would make any representation or warranty of such Shareholder contained herein untrue
or incorrect or have or could have the effect of preventing, impeding or interfering with or adversely affecting the performance
by such Shareholder of its obligations under this Agreement;
(b) irrevocably waives,
and agrees not to exercise, any rights of appraisal or rights of dissent from the Merger that such Shareholder may have with respect
to such Shareholder’s Securities (including without limitation any appraisal rights pursuant to Section 238 of the Cayman
Companies Law) prior to the Expiration Time;
(c) agrees to promptly
notify Parent and Merger Sub of the number of any new Securities acquired by such Shareholder after the date hereof and prior to
the Expiration Time. Any such Securities shall be subject to the terms of this Agreement as though owned by the Shareholder on
the date hereof;
(d) agrees to permit the
Company to publish and disclose in the Proxy Statement, such Shareholder’s identity and ownership of Company Shares, ADSs
and Company Options or other equity securities of the Company and the nature of such Shareholder’s commitments, arrangements
and understandings under this Agreement;
(e) authorizes the Company,
Parent, Merger Sub and their respective counsel and representatives to notify the Company’s transfer agent that there is
a stop transfer order with respect to all of the Securities (and that this Agreement places limits on the voting and transfer of
such Securities);
(f) agrees that, prior
to the Expiration Time, it shall support, and grant all approvals, and take all actions reasonably requested by Parent, Merger
Sub or the Company to ensure that any and all anti-takeover laws shall be inapplicable to this Agreement, the Merger Agreement,
the Merger or the other transactions contemplated by the Merger Agreement; and
(g) agrees that, upon
request of Parent, Merger Sub or the Company, such Shareholder shall execute and deliver any additional documents, consents or
instruments and take such further actions as may reasonably be deemed by Parent or Merger Sub to be necessary or desirable to carry
out the provisions of this Agreement.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF PARENT
AND MERGER SUB
Section 4.1 Representations
and Warranties of Parent and Merger Sub. Each of Parent and Merger Sub hereby, jointly and severally, represents and warrants
to the Shareholders as follows: (a) this Agreement has been duly and validly authorized by each of Parent’s and Merger Sub’s
respective board of directors, (b) this Agreement has been duly executed and delivered by a duly authorized officer or other representative
of each of Parent and Merger Sub and (c) assuming this Agreement constitutes a valid and binding agreement of the Shareholders,
this Agreement constitutes a valid and binding agreement of Merger Sub and Parent, enforceable against Merger Sub or Parent, as
applicable, in accordance with its terms.
ARTICLE V
TERMINATION
This Agreement shall terminate
and be of no further force or effect upon the earlier to occur of (A) the Closing and (B) the date of termination of the Merger
Agreement in accordance with its terms. Notwithstanding the preceding sentence, this Article V and Article VI shall
survive any termination of this Agreement. Nothing in this Article V shall relieve or otherwise limit any party of liability
for willful breach of this Agreement.
ARTICLE VI
MISCELLANEOUS
Section 6.1 Expenses.
Except as otherwise may be agreed in writing, all costs, fees and expenses incurred in connection with this Agreement and the transactions
contemplated hereby shall be paid by the party incurring or required to incur such costs, fees and expenses.
Section 6.2 Notices.
Any notices or other communications required or permitted under, or otherwise in connection with this Agreement, shall be in writing
and shall be deemed to have been duly given when delivered in person or upon confirmation of receipt when transmitted by facsimile
transmission or by electronic mail (but only if followed by transmittal by overnight courier or hand for delivery on the next Business
Day) or on receipt after dispatch by registered or certified mail, postage prepaid, addressed, or on the next Business Day if transmitted
by international overnight courier, in each case as follows:
If to Parent or Merger Sub, at:
Suite #4-210, Governors Square
23 Lime Tree Bay Avenue
PO Box 32311
Grand Cayman KY1-1209
Cayman Islands
with a copy to:
16/F Shining Tower
No. 35 Xueyuan Road
Haidian District, Beijing 100191
People’s Republic of China
with a copy (which shall not constitute notice)
to:
Suite 2101, Building C, Yintai Center
#2 Jianguomenwai Ave.
Chaoyang District
Beijing 100022, China
Jerry Ku
Facsimile No.: +86-10-5680-3889
If to a Shareholder, to the address set forth
on the signature page hereto under such Shareholder’s name. Or, in each case, to such other address or to the attention of
such other person as the recipient party shall have specified by prior written notice to the sending party.
Section 6.3 No Partnership,
Agency, or Joint Venture. This Agreement is intended to create, and creates, a contractual relationship and is not intended
to create, and does not create, any agency, partnership, joint venture or any like relationship between the parties hereto.
Section 6.4 Guarantee.
(a) Mr. Yang hereby unconditionally and irrevocably guarantee to Parent, Merger Sub and the Company the performance of all obligations
of the Holdco under and in accordance with this Agreement and irrevocably guarantee to Parent and Merger Sub the performance of
all obligations of the Holdco under and in accordance with the Rollover Agreement and agree, on demand and without any other notice
whatsoever, to perform or cause to be performed all of the obligations of the Holdco hereunder and thereunder, and it shall not
be necessary for Parent, Merger Sub or the Company, in order to enforce such performance by the Holdco or Mr. Yang, first to institute
suit or pursue or exhaust any rights or remedies against the Holdco or others liable for the performance of such obligation, or
to join the Holdco in any action to enforce the Holdco’s obligations hereunder, or to resort to any other means of obtaining
performance from the Holdco.
(b) Mr. Yang hereby waives all defenses based
upon suretyship or impairment of collateral, together with any defenses that it may have or assert with respect to the applicable
guaranteed obligations (other than actual performance), including, without limitation, discharge in bankruptcy, failure of consideration,
breach of warranty, statute of frauds, statute of limitations, accord and satisfaction, release, usury, lack of legal capacity,
delay or lack of diligence.
Section 6.5 Severability.
Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be
ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms
and provisions of this Agreement in any other jurisdiction. If any provision of this Agreement is so broad as to be unenforceable,
such provision shall be interpreted to be only as broad as is enforceable.
Section 6.6 Entire
Agreement; Benefit. This Agreement, the Merger Agreement and the Rollover Agreement embody the complete agreement and understanding
among the parties hereto with respect to the subject matter hereof and thereof and supersede and preempt any prior understandings,
agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in
any way. The representations and warranties set forth herein and the covenants set forth herein have been made solely for the benefit
of the parties to this Agreement and (a) may be intended not as statements of fact, but rather as a way of allocating the risk
to one of the parties if those statements prove to be inaccurate and (b) may apply standards of materiality in a way that is different
from what may be viewed as material by shareholders of, or other investors in, the Company.
Section 6.7 Specific
Performance. The Shareholders acknowledge that monetary damages would not be an adequate remedy in the event that any covenant
or agreement in this Agreement is not performed in accordance with its terms, and it is therefore agreed that, in addition to and
without limiting any other remedy or right it may have, Parent, Merger Sub and the Company will have the right to an injunction,
temporary restraining order or other equitable relief in any court of competent jurisdiction enjoining any such breach and enforcing
specifically the terms and provisions hereof. The Shareholders agree not to oppose the granting of such relief in the event a court
determines that such a breach has occurred, and to waive any requirement for the securing or posting of any bond in connection
with such remedy. All rights, powers, and remedies provided under this Agreement or otherwise available in respect hereof at law
or in equity shall be cumulative and not alternative, and the exercise or beginning of the exercise of any thereof by Parent, Merger
Sub or the Company shall not preclude the simultaneous or later exercise of any other such right, power or remedy by such party.
Section 6.8 Amendments;
Waivers. At any time prior to the Expiration Time, any provision of this Agreement may be amended or waived if, and only if,
such amendment or waiver is in writing and signed, in the case of an amendment, by Mr. Yang, Parent, Merger Sub and the Company,
or in the case of a waiver, by the party against whom the waiver is to be effective. Notwithstanding the foregoing, no failure
or delay by Merger Sub, Parent or the Company in exercising any right hereunder shall operate as a waiver thereof nor shall any
single or partial exercise thereof preclude any other or further exercise of any other right hereunder.
Section 6.9 Governing
Law. (a) This Agreement (other than with respect to matters relating to fiduciary duties of the Company Board), and all claims
or causes of action (whether in contract, tort or otherwise) that may be based upon, arise out of or relate to this Agreement (other
than with respect to matters relating to fiduciary duties of the Company Board) or the negotiation, execution or performance hereof
(other than with respect to matters relating to fiduciary duties of the Company Board) (including any claim or cause of action
based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement or as an inducement
to enter into this Agreement), shall be interpreted, construed, performed and enforced in accordance with the Laws of the State
of New York without giving effect to its principles or rules of conflict of laws to the extent such principles or rules would require
or permit the application of the Laws of another jurisdiction.
(b) All claims or causes
of action (whether in contract, tort or otherwise) that may be based upon, arise out of or relate to matters relating to fiduciary
duties of the Company Board, shall be interpreted, construed, performed and enforced in accordance with the Laws of the Cayman
Islands without giving effect to its principles or rules of conflict of laws to the extent such principles or rules would require
or permit the application of the Laws of another jurisdiction.
Section 6.10 Consent
to Jurisdiction. In the event any dispute arises among the parties hereto out of or in relation to this Agreement, including
any dispute regarding its breach, termination or validity, the parties shall attempt in the first instance to resolve such dispute
through friendly consultations. If any dispute has not been resolved by friendly consultations within thirty (30) days after any
party has served written notice on the other parties requesting the commencement of such consultations, then any party may demand
that the dispute be finally settled by arbitration in accordance with the following provisions of this Section 6.10. The arbitration
shall be conducted in accordance with the UNCITRAL Arbitration Rules and the Hong Kong International Arbitration Centre ("HKIAC")
Procedures for the Administration of International Arbitration in force at the date of this Agreement, which rules are deemed
to be incorporated by reference in this Section 6.10. The place of the arbitration shall be Hong Kong and the language of the
arbitration shall be English. The appointing authority shall be the HKIAC. There shall be three arbitrators. One arbitrator shall
be nominated by the Company or the Parent, as applicable, and one arbitrator shall be nominated by the Shareholders. If any party
shall abstain from nominating their arbitrator, the HKIAC shall appoint such arbitrator. The two arbitrators so chosen shall select
a third arbitrator; provided that if such two arbitrators shall fail to choose a third arbitrator within 30 days after such two
arbitrators have been selected, the HKIAC, upon the request of any party, shall appoint a third arbitrator. The third arbitrator
shall be the presiding arbitrator. The arbitration shall be conducted in private. The parties agree that all documents and evidence
submitted in the arbitration (including without limitation any statements of case and any interim or final award, as well as the
fact that an arbitral award has been made) shall remain confidential both during and after any final award that is rendered unless
the parties hereto otherwise agree in writing. Upon and after the submission of any dispute to arbitration, the parties shall
continue to exercise their remaining respective rights, and fulfill their remaining respective obligations under this Agreement,
except insofar as the same may relate directly to the matters in dispute. The parties hereby agree that any arbitration award
rendered in accordance with the provisions of this Section 6.10 shall be final and binding upon them, and the parties further
agree that such award may be enforced by any court having jurisdiction over the party against which the award has been rendered
or the assets of such party wherever the same may be located. In any arbitration proceeding, any legal proceeding to enforce any
arbitration award and in any other legal proceeding among the parties pursuant to or relating to this Agreement, each party expressly
waives the defense of sovereign immunity and any other defense based on the fact or allegation that it is an agency or instrumentality
of a sovereign state or is otherwise entitled to immunity.
Section 6.11 WAIVER
OF JURY TRIAL. Each party hereto acknowledges and agrees that any controversy or action
which may arise under this Agreement is likely to involve complicated and difficult issues, and therefore each such party hereby
irrevocably and unconditionally waives any right such party may have to a trial by jury in respect of any litigation or action
directly or indirectly arising out of or relating to this Agreement or the transactions contemplated hereby. Each party certifies
and acknowledges that (i) no representative, agent or attorney of any other party
has represented, expressly or otherwise, that such other party would not, in the event of litigation or action, seek to enforce
the foregoing waiver, (ii) each party understands and has considered the implications
of this waiver, (iii) each party makes this waiver voluntarily, and (iv)
each party has been induced to enter into this Agreement by, among other things, the mutual waivers and certifications in this
section.
Section 6.12 Third
Party Beneficiaries. The Company is intended to be an express third party beneficiary of this Agreement, with full rights of
enforcement of this Agreement against the Shareholders. Other than as set forth in the preceding sentence, there are no third party
beneficiaries of this Agreement and nothing in this Agreement, express or implied, is intended to confer on any Person other than
the parties hereto (and their respective successors, heirs and permitted assigns), any rights, remedies, obligations or liabilities.
Section 6.13 Assignment;
Binding Effect. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of
the parties hereto (whether by operation of Law or otherwise) without the prior written consent of the other parties or the Company,
except that (i) Merger Sub may assign, in its sole discretion, any of or all of its rights, interest and obligations under this
Agreement to Parent or to any direct or indirect wholly owned subsidiary of Parent, but no such assignment shall relieve Merger
Sub of its obligations hereunder and (ii) Parent and Merger Sub may assign this Agreement (in whole but not in part) in connection
with a permitted assignment of the Merger Agreement by Parent or Merger Sub, as applicable. Subject to the preceding sentence,
this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted
assigns and, in the case of Mr. Yang, his estate, heirs, beneficiaries, personal representatives and executors. Parent shall cause
Merger Sub, and any assignee thereof, to perform its obligations under this Agreement and shall be responsible for any failure
of Merger Sub or such assignee to comply with any representation, warranty, covenant or other provision of this Agreement.
Section 6.14 Mutual
Drafting. Each party hereto has participated in the drafting of this Agreement, which each party hereto acknowledges is the
result of extensive negotiations between the parties hereto.
Section 6.15 Headings.
Headings of the Articles and Sections of this Agreement are for convenience of the parties only and shall be given no substantive
or interpretive effect whatsoever.
Section 6.16 Interpretation.
When a reference is made in this Agreement to an Article or Section, such reference shall be to an Article or Section of this Agreement
unless otherwise indicated. Whenever the words “include,” “includes” or “including” are used
in this Agreement, they shall be deemed to be followed by the words “without limitation.” The words “hereof,”
“herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement
as a whole and not to any particular provision of this Agreement. The word “or” shall be deemed to mean “and/or.”
All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered
pursuant thereto unless otherwise defined therein. The definitions contained in this Agreement are applicable to the singular as
well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such term. Any agreement,
instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement,
instrument or statute as from time to time amended, modified or supplemented, including (in the case of agreements or instruments)
by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments
thereto and instruments incorporated therein. Each of the parties hereto has participated in the drafting and negotiation of this
Agreement. If an ambiguity or question of intent or interpretation arises, this Agreement must be construed as if it is drafted
by all the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of authorship
of any of the provisions of this Agreement.
Section 6.17 Counterparts.
This Agreement may be executed in two or more consecutive counterparts (including by facsimile or email pdf format), each of which
shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument, and shall become
effective when one or more counterparts have been signed by each of the parties and delivered (by telecopy, email pdf format or
otherwise) to the other parties.
[Signature Pages to follow]
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
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Vimicro
Tianjin Corporation |
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/s/
Xiaodong (Dave) Yang |
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Xiaodong
(Dave) Yang |
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Title: | |
Director |
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Address: |
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16/F Shining
Tower |
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No. 35 Xueyuan
Road |
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Haidian District,
Beijing 100191 |
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People’s Republic of
China |
Signature Page to the Voting Agreement
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
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Xiaodong (Dave) Yang |
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/s/
Xiaodong (Dave) Yang |
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Address: |
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16/F Shining Tower |
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No. 35 Xueyuan Road |
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Haidian District, Beijing 100191 |
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People’s Republic of China |
Signature Page to the Voting Agreement
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
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VIMICRO CHINA (PARENT) LIMITED |
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/s/ Zhaowei (Kevin) Jin |
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Zhaowei (Kevin) Jin |
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Title: | |
Director
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Signature Page to the Voting Agreement
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
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VIMICRO CHINA ACQUISITION
LIMITED |
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/s/
Zhaowei (Kevin) Jin |
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Name: | |
Zhaowei (Kevin) Jin |
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Title: | |
Director
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Signature Page to the Voting Agreement
Exhibit 7.10
VOTING AGREEMENT
This VOTING AGREEMENT (this
“Agreement”) is entered into as of September 15, 2015 by and among Vimicro China (Parent) Limited, a company
incorporated under the laws of the Cayman Islands (“Parent”), Vimicro China Acquisition Limited, a company
incorporated under the laws of the Cayman Islands and a wholly-owned subsidiary of Parent (“Merger Sub”)
and Vimicro Beijing Corporation, a company incorporated under the laws of the British Virgin Islands (“Holdco”)
and Zhonghan (John) Deng, a citizen of the People’s Republic of China ( “Mr. Deng”, together with the
Holdco, collectively, the “Shareholders” and each a “Shareholder”). Capitalized terms used
but not defined herein shall have the meanings ascribed to such terms in the Merger Agreement (as defined below).
WHEREAS, Parent, Merger
Sub and Vimicro International Corporation (the “Company”) have, concurrently with the execution of this Agreement,
entered into an Agreement and Plan of Merger, dated as of the date hereof (as may be amended, supplemented or otherwise modified
from time to time in accordance with its terms, the “Merger Agreement”), which provides, among other things,
for the merger of Merger Sub with and into the Company, with the Company continuing as the surviving corporation (the “Merger”),
upon the terms and subject to the conditions set forth in the Merger Agreement;
WHEREAS, the Shareholders,
Parent and Merger Sub are executing this agreement concurrently with the execution of the Merger Agreement;
WHEREAS, the Holdco is the
record and beneficial owner (as defined under Rule 13d-3 of the Exchange Act) of (i) 4,453,192 Company Shares and (ii) 15,000 ADSs;
and Mr. Deng is the record and beneficial owner of (i) Company Options to acquire 8,856,368 Company Shares and (ii) Company Shares
and ADSs owned of record by Holdco (such Company Shares, ADSs and Company Options, together with any other Company Shares or ADSs
acquired (whether beneficially or of record) by the Shareholders after the date hereof and prior to the earlier of the Effective
Time and the termination of all of the Shareholders’ obligations under this Agreement, including any Company Shares or ADSs
acquired by means of purchase, dividend or distribution, or issued upon the exercise of any Company Options or warrants or the
conversion of any convertible securities or otherwise, being collectively referred to herein as the “Securities”);
WHEREAS, each Shareholder,
pursuant to that certain Rollover Agreement, dated as of the date hereof, by and among Parent, Merger Sub, the Shareholders and
the other shareholders of the Company named therein (the “Rollover Agreement”), has agreed to contribute certain
of its Securities to Parent and/or Merger Sub in accordance with the terms and conditions set forth therein;
WHEREAS, receipt of the
Requisite Shareholder Approval is a condition to the consummation of the Merger; and
WHEREAS, as a condition
to the willingness of Parent, Merger Sub and the Company to enter into the Merger Agreement and as an inducement and in consideration
therefor, the Shareholders have agreed to enter into this Agreement.
NOW, THEREFORE, in consideration
of the foregoing, the mutual covenants and agreements set forth herein, and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
ARTICLE I
VOTING; GRANT AND APPOINTMENT OF PROXY
Section 1.1 Voting.
From and after the date hereof until the earliest of (a) the Effective Time, (b) the termination of the Merger Agreement pursuant
to and in compliance with the terms therein, and (c) the occurrence of a Company Board Recommendation Change (such earlier time,
the “Expiration Time”), each Shareholder irrevocably and unconditionally hereby agrees that at any meeting (whether
annual or extraordinary and each adjourned or postponed meeting) of the Company’s shareholders, however called, or in connection
with any written consent of the Company’s shareholders, such Shareholder shall (i) appear at such meeting or otherwise cause
its Securities to be counted as present thereat for purposes of determining whether a quorum is present and (ii) vote or cause
to be voted (including by proxy or written consent, if applicable) all of the Securities,
(a) for the authorization
and approval of the Merger Agreement and the transactions contemplated by the Merger Agreement,
(b) against any Acquisition
Proposal, without regard to the terms of such Acquisition Proposal, or any other transaction, proposal, agreement or action made
in opposition to the authorization and approval of the Merger Agreement or in competition or inconsistent with the Merger and the
other transactions contemplated by the Merger Agreement,
(c) against any other
action, agreement or transaction that is intended, that could reasonably be expected, or the effect of which could reasonably be
expected, to materially impede, interfere with, delay, postpone, discourage or adversely affect the Merger or any of the other
transactions contemplated by the Merger Agreement or this Agreement or the performance by such Shareholder of its obligations under
this Agreement, including, without limitation: (i) any extraordinary corporate transaction, such as a merger, consolidation or
other business combination involving the Company or any Subsidiary of the Company (other than the Merger); (ii) a sale, lease or
transfer of a material amount of assets of the Company or any Subsidiary of the Company or a reorganization, recapitalization or
liquidation of the Company or any Subsidiary of the Company; (iii) an election of new members to the board of directors of the
Company, other than nominees to the board of directors of the Company who are serving as directors of the Company on the date of
this Agreement or as otherwise provided in the Merger Agreement; (iv) any material change in the present capitalization or dividend
policy of the Company or any amendment or other change to the Company’s articles of incorporation or bylaws, except if approved
in writing by Parent; (v) any action that would require the consent of Parent pursuant to Section 5.1 of the Merger Agreement,
except if approved in writing by Parent; or (vi) any other material change in the Company’s corporate structure or business,
except if approved in writing by Parent,
(d) against any action,
proposal, transaction or agreement that would reasonably be expected to result in a breach in any respect of any covenant, representation
or warranty or any other obligation or agreement of the Company contained in the Merger Agreement, or of such Shareholder contained
in this Agreement, and
(e) in favor of any other
matter necessary to the consummation of the transactions contemplated by the Merger Agreement.
Section 1.2 Grant of
Irrevocable Proxy; Appointment of Proxy.
1.2.1 From and after the
date hereof until the Expiration Time, each Shareholder hereby irrevocably and unconditionally grants to, and appoints, Parent
and any designee thereof, such Shareholder’s proxy and attorney-in-fact (with full power of substitution), for and in the
name, place and stead of such Shareholder, to vote or cause to be voted (including by proxy or written consent, if applicable)
the Securities:
(a) for authorization
and approval of the Merger Agreement and the transactions contemplated by the Merger Agreement;
(b) against any Acquisition
Proposal, without regard to the terms of such Acquisition Proposal, or any other transaction, proposal, agreement or action made
in opposition to authorization and approval of the Merger Agreement or in competition or inconsistent with the Merger and the other
transactions contemplated by the Merger Agreement;
(c) against any other
action, agreement or transaction that is intended, that could reasonably be expected, or the effect of which could reasonably be
expected, to materially impede, interfere with, delay, postpone, discourage or adversely affect the Merger or any of the other
transactions contemplated by the Merger Agreement or this Agreement or the performance by such Shareholder of its obligations under
this Agreement, including, without limitation: (i) any extraordinary corporate transaction, such as a merger, consolidation or
other business combination involving the Company or any Subsidiary of the Company (other than the Merger); (ii) a sale, lease or
transfer of a material amount of assets of the Company or any Subsidiary of the Company or a reorganization, recapitalization or
liquidation of the Company or any Subsidiary of the Company; (iii) an election of new members to the board of directors of the
Company, other than nominees to the board of directors of the Company who are serving as directors of the Company on the date of
this Agreement or as otherwise provided in the Merger Agreement; (iv) any material change in the present capitalization or dividend
policy of the Company or any amendment or other change to the Company’s articles of incorporation or bylaws, except if approved
in writing by Parent; (v) any action that would require the consent of Parent pursuant to Section 5.1 of the Merger Agreement,
except if approved in writing by Parent; or (vi) any other material change in the Company’s corporate structure or business,
except if approved in writing by Parent;
(d) against any action,
proposal, transaction or agreement that would reasonably be expected to result in a breach in any respect of any covenant, representation
or warranty or any other obligation or agreement of the Company contained in the Merger Agreement, or of such Shareholder contained
in this Agreement; and
(e) in favor of any other
matter necessary to the consummation of the transactions contemplated by the Merger Agreement.
1.2.2 Each Shareholder hereby
represents that any proxies heretofore given in respect of such Shareholder’s Securities, if any, are revocable, and hereby
revokes such proxies.
1.2.3 Each Shareholder hereby
affirms that the irrevocable proxy set forth in this Section 1.2 is given in connection with the execution of the Merger
Agreement, and that such irrevocable proxy is given to secure the performance of the duties of such Shareholder under this Agreement.
Each Shareholder hereby further affirms that the irrevocable proxy is coupled with an interest and, except as set forth in this
Section 1.2, is intended to be irrevocable prior to the Expiration Time. If for any reason the proxy granted herein is not
irrevocable, then each Shareholder agrees to vote such Shareholder’s Securities in accordance with Section 1.1 above
as instructed by Parent in writing prior to the Expiration Time. The parties agree that the foregoing is a voting agreement.
Section 1.3 Restrictions
on Transfers. Except as provided for in the Rollover Agreement or pursuant to the Merger Agreement, the Shareholders hereby
agree that, from the date hereof until the Expiration Time, the Shareholders shall not, directly or indirectly, (a) sell, transfer,
assign, tender in any tender or exchange offer, pledge, encumber, hypothecate or similarly dispose of (by merger, by testamentary
disposition, by operation of law or otherwise), either voluntarily or involuntarily, or enter into any Contract, option or other
arrangement or understanding with respect to the sale, transfer, assignment, pledge, Lien, hypothecation or similar disposition
of (by merger, by testamentary disposition, by operation of law or otherwise) (collectively, “Transfer”), any
Securities, (b) deposit any Securities into a voting trust or enter into a voting agreement or arrangement or grant any proxy or
power of attorney with respect thereto that is inconsistent with this Agreement, (c) convert or exchange, or take any action which
would result in the conversion or exchange, of any Securities, or (d) agree (whether or not in writing) to take any of the actions
referred to in the foregoing clauses (a), (b) or (c).
Section 1.4 Inconsistent
Agreements. The Shareholders hereby covenant and agree that, except for this Agreement, none of the Shareholders (a) has entered
into, or will enter into at any time while this Agreement remains in effect, any voting agreement or voting trust with respect
to the Securities and (b) has granted, or will grant at any time while this Agreement remains in effect, a proxy, consent or power
of attorney with respect to the Securities.
ARTICLE II
NO SOLICITATION
Section 2.1 Restricted
Activities. Prior to the Expiration Time, each Shareholder in its capacity as a shareholder of the Company shall not, and shall
use its reasonable best efforts to cause its officers, directors, employees, agents, advisors and other representatives (in each
case, acting in their capacity as such to such Shareholder, in its capacity as a shareholder (the “Shareholder’s
Representatives”)) not to, in each case, directly or indirectly take any action that the Company is prohibited from taking
under Section 5.2 of the Merger Agreement.
Section 2.2 Notification.
From and after the date hereof until the Expiration Time, the Shareholders shall promptly advise each of Parent and the Company
orally (and in any event within 24 hours) and subsequently in writing of (x) any Acquisition Proposal, (y) any request it receives
in its capacity as a shareholder of the Company for non-public information relating to the Company or any Subsidiary of the Company,
other than requests for information not reasonably expected to be related to or result into an Acquisition Proposal, and (z) any
inquiry or request for discussion or negotiation it receives in its capacity as a shareholder of the Company regarding an Acquisition
Proposal, including in each case the identity of the person making any such Acquisition Proposal or indication or inquiry and the
terms of any such Acquisition Proposal or indication or inquiry (including, if applicable, copies of any written requests, proposals
or offers, including proposed agreements). The Shareholder, in its capacity as a shareholder of the Company, shall keep each of
Parent and the Company reasonably informed on a reasonably current basis of the status and terms (including any material changes
to the terms thereof) of any such Acquisition Proposal or indication or inquiry (including, if applicable, any revised copies of
written requests, proposals and offers) and the status of any such discussions or negotiations to the extent known by the Shareholder.
This Section 2.2 shall not apply to any Acquisition Proposal received by the Company. The Shareholder’s receipt, in
its capacity as a shareholder of the Company, of any Acquisition Proposal shall not relieve the Shareholder from any of its obligations
hereunder.
Section 2.3 Capacity.
Notwithstanding anything to the contrary set forth in this Article II, the Shareholder is signing this Agreement solely
and only in the Shareholder’s capacity as a shareholder of the Company and, accordingly, nothing contained herein shall in
any way limit or affect any actions taken by any shareholder of the Shareholder, or any trustee of any shareholder of the Shareholder,
in his capacity as an officer or director of the Company, and no action taken in any such capacity as an officer or director of
the Company shall be deemed to constitute a breach of this Agreement.
ARTICLE III
REPRESENTATIONS, WARRANTIES AND COVENANTS
OF THE SHAREHOLDERS
Section 3.1 Representations
and Warranties. Each Shareholder jointly and severally represents and warrants to Parent and Merger Sub as follows: (a) such
Shareholder has full legal right, power and authority to execute and deliver this Agreement, to perform such Shareholder’s
obligations hereunder and to consummate the transactions contemplated hereby; (b) this Agreement has been duly executed and delivered
by such Shareholder and the execution, delivery and performance of this Agreement by such Shareholder and the consummation of the
transactions contemplated hereby have been duly authorized by all necessary action on the part of such Shareholder and no other
actions or proceedings on the part of such Shareholder are necessary to authorize this Agreement or to consummate the transactions
contemplated hereby, (c) assuming this Agreement constitutes the valid and binding agreement of Parent and Merger Sub, this Agreement
constitutes the valid and binding agreement of such Shareholder, enforceable against such Shareholder in accordance with its terms,
(d) the execution and delivery of this Agreement by such Shareholder does not, and the consummation of the transactions contemplated
hereby and the compliance with the provisions hereof will not, conflict with or violate any Law or agreement binding upon such
Shareholder or such Shareholder’s Securities, nor require any authorization, consent or approval of, or filing with, any
Governmental Authority, except for filings with the Securities and Exchange Commission by such Shareholder, and (e) except for
such transfer restrictions of general applicability as may be provided under the Securities Act of 1933, as amended, and the “blue
sky” laws of the various states of the United States, such Shareholder owns, beneficially and of record, or controls all
of its Securities (and any additional Securities acquired after the date hereof), and all of such Securities are free and clear
of any proxy, voting restriction, adverse claim or other Lien (other than any restrictions created by this Agreement), and has
sole voting power and sole power of disposition with respect to such Shareholder’s Securities, with no restrictions on such
Shareholder’s rights of voting or disposition pertaining thereto and no person other than such Shareholder has any right
to direct or approve the voting or disposition of any of the Shareholder’s Securities. Such Shareholder understands and acknowledges
that Parent, Merger Sub and the Company are entering into the Merger Agreement in reliance upon such Shareholder’s execution,
delivery and performance of this Agreement.
Section 3.2 Covenants.
Each Shareholder hereby:
(a) agrees, prior to the
Expiration Time, not to take any action that would make any representation or warranty of such Shareholder contained herein untrue
or incorrect or have or could have the effect of preventing, impeding or interfering with or adversely affecting the performance
by such Shareholder of its obligations under this Agreement;
(b) irrevocably waives,
and agrees not to exercise, any rights of appraisal or rights of dissent from the Merger that such Shareholder may have with respect
to such Shareholder’s Securities (including without limitation any appraisal rights pursuant to Section 238 of the Cayman
Companies Law) prior to the Expiration Time;
(c) agrees to promptly
notify Parent and Merger Sub of the number of any new Securities acquired by such Shareholder after the date hereof and prior to
the Expiration Time. Any such Securities shall be subject to the terms of this Agreement as though owned by the Shareholder on
the date hereof;
(d) agrees to permit the
Company to publish and disclose in the Proxy Statement, such Shareholder’s identity and ownership of Company Shares, ADSs
and Company Options or other equity securities of the Company and the nature of such Shareholder’s commitments, arrangements
and understandings under this Agreement;
(e) authorizes the Company,
Parent, Merger Sub and their respective counsel and representatives to notify the Company’s transfer agent that there is
a stop transfer order with respect to all of the Securities (and that this Agreement places limits on the voting and transfer of
such Securities);
(f) agrees that, prior
to the Expiration Time, it shall support, and grant all approvals, and take all actions reasonably requested by Parent, Merger
Sub or the Company to ensure that any and all anti-takeover laws shall be inapplicable to this Agreement, the Merger Agreement,
the Merger or the other transactions contemplated by the Merger Agreement; and
(g) agrees that, upon
request of Parent, Merger Sub or the Company, such Shareholder shall execute and deliver any additional documents, consents or
instruments and take such further actions as may reasonably be deemed by Parent or Merger Sub to be necessary or desirable to carry
out the provisions of this Agreement.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF PARENT
AND MERGER SUB
Section 4.1 Representations
and Warranties of Parent and Merger Sub. Each of Parent and Merger Sub hereby, jointly and severally, represents and warrants
to the Shareholders as follows: (a) this Agreement has been duly and validly authorized by each of Parent’s and Merger Sub’s
respective board of directors, (b) this Agreement has been duly executed and delivered by a duly authorized officer or other representative
of each of Parent and Merger Sub and (c) assuming this Agreement constitutes a valid and binding agreement of the Shareholders,
this Agreement constitutes a valid and binding agreement of Merger Sub and Parent, enforceable against Merger Sub or Parent, as
applicable, in accordance with its terms.
ARTICLE V
TERMINATION
This Agreement shall terminate
and be of no further force or effect upon the earlier to occur of (A) the Closing and (B) the date of termination of the Merger
Agreement in accordance with its terms. Notwithstanding the preceding sentence, this Article V and Article VI shall
survive any termination of this Agreement. Nothing in this Article V shall relieve or otherwise limit any party of liability
for willful breach of this Agreement.
ARTICLE VI
MISCELLANEOUS
Section 6.1 Expenses.
Except as otherwise may be agreed in writing, all costs, fees and expenses incurred in connection with this Agreement and the transactions
contemplated hereby shall be paid by the party incurring or required to incur such costs, fees and expenses.
Section 6.2 Notices.
Any notices or other communications required or permitted under, or otherwise in connection with this Agreement, shall be in writing
and shall be deemed to have been duly given when delivered in person or upon confirmation of receipt when transmitted by facsimile
transmission or by electronic mail (but only if followed by transmittal by overnight courier or hand for delivery on the next Business
Day) or on receipt after dispatch by registered or certified mail, postage prepaid, addressed, or on the next Business Day if transmitted
by international overnight courier, in each case as follows:
If to Parent or Merger Sub, at:
Suite #4-210, Governors Square
23 Lime Tree Bay Avenue
PO Box 32311
Grand Cayman KY1-1209
Cayman Islands
with a copy to:
16/F Shining Tower
No. 35 Xueyuan Road
Haidian District, Beijing 100191
People’s Republic of China
with a copy (which shall not constitute notice)
to:
Suite 2101, Building C, Yintai Center
#2 Jianguomenwai Ave.
Chaoyang District
Beijing 100022, China
Jerry Ku
Facsimile No.: +86-10-5680-3889
If to a Shareholder, to the address set forth
on the signature page hereto under such Shareholder’s name. Or, in each case, to such other address or to the attention of
such other person as the recipient party shall have specified by prior written notice to the sending party.
Section 6.3 No Partnership,
Agency, or Joint Venture. This Agreement is intended to create, and creates, a contractual relationship and is not intended
to create, and does not create, any agency, partnership, joint venture or any like relationship between the parties hereto.
Section 6.4 Guarantee.
(a) Mr. Deng hereby unconditionally and irrevocably guarantee to Parent, Merger Sub and the Company the performance of all obligations
of the Holdco under and in accordance with this Agreement and irrevocably guarantee to Parent and Merger Sub the performance of
all obligations of the Holdco under and in accordance with the Rollover Agreement and agree, on demand and without any other notice
whatsoever, to perform or cause to be performed all of the obligations of the Holdco hereunder and thereunder, and it shall not
be necessary for Parent, Merger Sub or the Company, in order to enforce such performance by the Holdco or Mr. Deng, first to institute
suit or pursue or exhaust any rights or remedies against the Holdco or others liable for the performance of such obligation, or
to join the Holdco in any action to enforce the Holdco’s obligations hereunder, or to resort to any other means of obtaining
performance from the Holdco.
(b) Mr. Deng hereby waives all defenses based
upon suretyship or impairment of collateral, together with any defenses that it may have or assert with respect to the applicable
guaranteed obligations (other than actual performance), including, without limitation, discharge in bankruptcy, failure of consideration,
breach of warranty, statute of frauds, statute of limitations, accord and satisfaction, release, usury, lack of legal capacity,
delay or lack of diligence.
Section 6.5 Severability.
Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be
ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms
and provisions of this Agreement in any other jurisdiction. If any provision of this Agreement is so broad as to be unenforceable,
such provision shall be interpreted to be only as broad as is enforceable.
Section 6.6 Entire
Agreement; Benefit. This Agreement, the Merger Agreement and the Rollover Agreement embody the complete agreement and understanding
among the parties hereto with respect to the subject matter hereof and thereof and supersede and preempt any prior understandings,
agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in
any way. The representations and warranties set forth herein and the covenants set forth herein have been made solely for the benefit
of the parties to this Agreement and (a) may be intended not as statements of fact, but rather as a way of allocating the risk
to one of the parties if those statements prove to be inaccurate and (b) may apply standards of materiality in a way that is different
from what may be viewed as material by shareholders of, or other investors in, the Company.
Section 6.7 Specific
Performance. The Shareholders acknowledge that monetary damages would not be an adequate remedy in the event that any covenant
or agreement in this Agreement is not performed in accordance with its terms, and it is therefore agreed that, in addition to and
without limiting any other remedy or right it may have, Parent, Merger Sub and the Company will have the right to an injunction,
temporary restraining order or other equitable relief in any court of competent jurisdiction enjoining any such breach and enforcing
specifically the terms and provisions hereof. The Shareholders agree not to oppose the granting of such relief in the event a court
determines that such a breach has occurred, and to waive any requirement for the securing or posting of any bond in connection
with such remedy. All rights, powers, and remedies provided under this Agreement or otherwise available in respect hereof at law
or in equity shall be cumulative and not alternative, and the exercise or beginning of the exercise of any thereof by Parent, Merger
Sub or the Company shall not preclude the simultaneous or later exercise of any other such right, power or remedy by such party.
Section 6.8 Amendments;
Waivers. At any time prior to the Expiration Time, any provision of this Agreement may be amended or waived if, and only if,
such amendment or waiver is in writing and signed, in the case of an amendment, by Mr. Deng, Parent, Merger Sub and the Company,
or in the case of a waiver, by the party against whom the waiver is to be effective. Notwithstanding the foregoing, no failure
or delay by Merger Sub, Parent or the Company in exercising any right hereunder shall operate as a waiver thereof nor shall any
single or partial exercise thereof preclude any other or further exercise of any other right hereunder.
Section 6.9 Governing
Law. (a) This Agreement (other than with respect to matters relating to fiduciary duties of the Company Board), and all claims
or causes of action (whether in contract, tort or otherwise) that may be based upon, arise out of or relate to this Agreement (other
than with respect to matters relating to fiduciary duties of the Company Board) or the negotiation, execution or performance hereof
(other than with respect to matters relating to fiduciary duties of the Company Board) (including any claim or cause of action
based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement or as an inducement
to enter into this Agreement), shall be interpreted, construed, performed and enforced in accordance with the Laws of the State
of New York without giving effect to its principles or rules of conflict of laws to the extent such principles or rules would require
or permit the application of the Laws of another jurisdiction.
(b) All claims or causes
of action (whether in contract, tort or otherwise) that may be based upon, arise out of or relate to matters relating to fiduciary
duties of the Company Board, shall be interpreted, construed, performed and enforced in accordance with the Laws of the Cayman
Islands without giving effect to its principles or rules of conflict of laws to the extent such principles or rules would require
or permit the application of the Laws of another jurisdiction.
Section 6.10 Consent
to Jurisdiction. In the event any dispute arises among the parties hereto out of or in relation to this Agreement, including
any dispute regarding its breach, termination or validity, the parties shall attempt in the first instance to resolve such dispute
through friendly consultations. If any dispute has not been resolved by friendly consultations within thirty (30) days after any
party has served written notice on the other parties requesting the commencement of such consultations, then any party may demand
that the dispute be finally settled by arbitration in accordance with the following provisions of this Section 6.10. The arbitration
shall be conducted in accordance with the UNCITRAL Arbitration Rules and the Hong Kong International Arbitration Centre ("HKIAC")
Procedures for the Administration of International Arbitration in force at the date of this Agreement, which rules are deemed to
be incorporated by reference in this Section 6.10. The place of the arbitration shall be Hong Kong and the language of the arbitration
shall be English. The appointing authority shall be the HKIAC. There shall be three arbitrators. One arbitrator shall be nominated
by the Company or the Parent, as applicable, and one arbitrator shall be nominated by the Shareholders. If any party shall abstain
from nominating their arbitrator, the HKIAC shall appoint such arbitrator. The two arbitrators so chosen shall select a third arbitrator;
provided that if such two arbitrators shall fail to choose a third arbitrator within 30 days after such two arbitrators have been
selected, the HKIAC, upon the request of any party, shall appoint a third arbitrator. The third arbitrator shall be the presiding
arbitrator. The arbitration shall be conducted in private. The parties agree that all documents and evidence submitted in the arbitration
(including without limitation any statements of case and any interim or final award, as well as the fact that an arbitral award
has been made) shall remain confidential both during and after any final award that is rendered unless the parties hereto otherwise
agree in writing. Upon and after the submission of any dispute to arbitration, the parties shall continue to exercise their remaining
respective rights, and fulfill their remaining respective obligations under this Agreement, except insofar as the same may relate
directly to the matters in dispute. The parties hereby agree that any arbitration award rendered in accordance with the provisions
of this Section 6.10 shall be final and binding upon them, and the parties further agree that such award may be enforced by any
court having jurisdiction over the party against which the award has been rendered or the assets of such party wherever the same
may be located. In any arbitration proceeding, any legal proceeding to enforce any arbitration award and in any other legal proceeding
among the parties pursuant to or relating to this Agreement, each party expressly waives the defense of sovereign immunity and
any other defense based on the fact or allegation that it is an agency or instrumentality of a sovereign state or is otherwise
entitled to immunity.
Section 6.11 WAIVER
OF JURY TRIAL. Each party hereto acknowledges and agrees that any controversy or action
which may arise under this Agreement is likely to involve complicated and difficult issues, and therefore each such party hereby
irrevocably and unconditionally waives any right such party may have to a trial by jury in respect of any litigation or action
directly or indirectly arising out of or relating to this Agreement or the transactions contemplated hereby. Each party certifies
and acknowledges that (i) no representative, agent or attorney of any other party
has represented, expressly or otherwise, that such other party would not, in the event of litigation or action, seek to enforce
the foregoing waiver, (ii) each party understands and has considered the implications
of this waiver, (iii) each party makes this waiver voluntarily, and (iv)
each party has been induced to enter into this Agreement by, among other things, the mutual waivers and certifications in this
section.
Section 6.12 Third
Party Beneficiaries. The Company is intended to be an express third party beneficiary of this Agreement, with full rights of
enforcement of this Agreement against the Shareholders. Other than as set forth in the preceding sentence, there are no third party
beneficiaries of this Agreement and nothing in this Agreement, express or implied, is intended to confer on any Person other than
the parties hereto (and their respective successors, heirs and permitted assigns), any rights, remedies, obligations or liabilities.
Section 6.13 Assignment;
Binding Effect. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of
the parties hereto (whether by operation of Law or otherwise) without the prior written consent of the other parties or the Company,
except that (i) Merger Sub may assign, in its sole discretion, any of or all of its rights, interest and obligations under this
Agreement to Parent or to any direct or indirect wholly owned subsidiary of Parent, but no such assignment shall relieve Merger
Sub of its obligations hereunder and (ii) Parent and Merger Sub may assign this Agreement (in whole but not in part) in connection
with a permitted assignment of the Merger Agreement by Parent or Merger Sub, as applicable. Subject to the preceding sentence,
this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted
assigns and, in the case of Mr. Deng, his estate, heirs, beneficiaries, personal representatives and executors. Parent shall cause
Merger Sub, and any assignee thereof, to perform its obligations under this Agreement and shall be responsible for any failure
of Merger Sub or such assignee to comply with any representation, warranty, covenant or other provision of this Agreement.
Section 6.14 Mutual
Drafting. Each party hereto has participated in the drafting of this Agreement, which each party hereto acknowledges is the
result of extensive negotiations between the parties hereto.
Section 6.15 Headings.
Headings of the Articles and Sections of this Agreement are for convenience of the parties only and shall be given no substantive
or interpretive effect whatsoever.
Section 6.16 Interpretation.
When a reference is made in this Agreement to an Article or Section, such reference shall be to an Article or Section of this Agreement
unless otherwise indicated. Whenever the words “include,” “includes” or “including” are used
in this Agreement, they shall be deemed to be followed by the words “without limitation.” The words “hereof,”
“herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement
as a whole and not to any particular provision of this Agreement. The word “or” shall be deemed to mean “and/or.”
All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered
pursuant thereto unless otherwise defined therein. The definitions contained in this Agreement are applicable to the singular as
well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such term. Any agreement,
instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement,
instrument or statute as from time to time amended, modified or supplemented, including (in the case of agreements or instruments)
by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments
thereto and instruments incorporated therein. Each of the parties hereto has participated in the drafting and negotiation of this
Agreement. If an ambiguity or question of intent or interpretation arises, this Agreement must be construed as if it is drafted
by all the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of authorship
of any of the provisions of this Agreement.
Section 6.17 Counterparts.
This Agreement may be executed in two or more consecutive counterparts (including by facsimile or email pdf format), each of which
shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument, and shall become
effective when one or more counterparts have been signed by each of the parties and delivered (by telecopy, email pdf format or
otherwise) to the other parties.
[Signature Pages to follow]
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
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Vimicro
Beijing Corporation |
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/s/
Zhonghan (John) Deng |
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Name: | |
Zhonghan
(John) Deng |
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Title: | |
Director |
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Address: |
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15/F Shining
Tower |
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No. 35 Xueyuan
Road |
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Haidian District,
Beijing 100191 |
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People’s Republic of
China |
Signature Page to the Voting Agreement
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
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Zhonghan (John) Deng |
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/s/
Zhonghan (John) Deng |
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Address: |
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15/F Shining Tower |
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No. 35 Xueyuan Road |
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Haidian District, Beijing 100191 |
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People’s Republic of China |
Signature Page to the Voting Agreement
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
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VIMICRO CHINA (PARENT) LIMITED |
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By: | |
/s/ Zhaowei (Kevin) Jin |
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Name: | |
Zhaowei (Kevin) Jin |
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Title: | |
Director |
Signature Page to the Voting Agreement
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
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VIMICRO CHINA ACQUISITION
LIMITED |
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/s/ Zhaowei (Kevin) Jin |
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Name: | |
Zhaowei (Kevin) Jin |
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Title: | |
Director |
Signature Page to the Voting Agreement
Exhibit 7.11
VOTING AGREEMENT
This VOTING AGREEMENT (this
“Agreement”) is entered into as of September 15, 2015 by and among Vimicro China (Parent) Limited, a company
incorporated under the laws of the Cayman Islands (“Parent”), Vimicro China Acquisition Limited, a company
incorporated under the laws of the Cayman Islands and a wholly-owned subsidiary of Parent (“Merger Sub”)
and Vimicro Shenzhen Corporation, a company incorporated under the laws of the British Virgin Islands (“Holdco”)
and Zhaowei (Kevin) Jin, a citizen of the People’s Republic of China ( “Mr. Jin”, together with the Holdco,
collectively, the “Shareholders” and each a “Shareholder”). Capitalized terms used but not
defined herein shall have the meanings ascribed to such terms in the Merger Agreement (as defined below).
WHEREAS, Parent, Merger
Sub and Vimicro International Corporation (the “Company”) have, concurrently with the execution of this Agreement,
entered into an Agreement and Plan of Merger, dated as of the date hereof (as may be amended, supplemented or otherwise modified
from time to time in accordance with its terms, the “Merger Agreement”), which provides, among other things,
for the merger of Merger Sub with and into the Company, with the Company continuing as the surviving corporation (the “Merger”),
upon the terms and subject to the conditions set forth in the Merger Agreement;
WHEREAS, the Shareholders,
Parent and Merger Sub are executing this agreement concurrently with the execution of the Merger Agreement;
WHEREAS, the Holdco is the
record and beneficial owner (as defined under Rule 13d-3 of the Exchange Act) of (i) 1,391,851 Company Shares and (ii) 100,000
ADSs; and Mr. Jin is the record and beneficial owner of (i) Company Options to acquire 4,093,620 Company Shares and (ii) Company
Shares and ADSs owned of record by Holdco (such Company Shares, ADSs and Company Options, together with any other Company Shares
or ADSs acquired (whether beneficially or of record) by the Shareholders after the date hereof and prior to the earlier of the
Effective Time and the termination of all of the Shareholders’ obligations under this Agreement, including any Company Shares
or ADSs acquired by means of purchase, dividend or distribution, or issued upon the exercise of any Company Options or warrants
or the conversion of any convertible securities or otherwise, being collectively referred to herein as the “Securities”);
WHEREAS, each Shareholder,
pursuant to that certain Rollover Agreement, dated as of the date hereof, by and among Parent, Merger Sub, the Shareholders and
the other shareholders of the Company named therein (the “Rollover Agreement”), has agreed to contribute certain
of its Securities to Parent and/or Merger Sub in accordance with the terms and conditions set forth therein;
WHEREAS, receipt of the
Requisite Shareholder Approval is a condition to the consummation of the Merger; and
WHEREAS, as a condition
to the willingness of Parent, Merger Sub and the Company to enter into the Merger Agreement and as an inducement and in consideration
therefor, the Shareholders have agreed to enter into this Agreement.
NOW, THEREFORE, in consideration
of the foregoing, the mutual covenants and agreements set forth herein, and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
ARTICLE I
VOTING; GRANT AND APPOINTMENT OF PROXY
Section 1.1 Voting.
From and after the date hereof until the earliest of (a) the Effective Time, (b) the termination of the Merger Agreement pursuant
to and in compliance with the terms therein, and (c) the occurrence of a Company Board Recommendation Change (such earlier time,
the “Expiration Time”), each Shareholder irrevocably and unconditionally hereby agrees that at any meeting (whether
annual or extraordinary and each adjourned or postponed meeting) of the Company’s shareholders, however called, or in connection
with any written consent of the Company’s shareholders, such Shareholder shall (i) appear at such meeting or otherwise cause
its Securities to be counted as present thereat for purposes of determining whether a quorum is present and (ii) vote or cause
to be voted (including by proxy or written consent, if applicable) all of the Securities,
(a) for the authorization
and approval of the Merger Agreement and the transactions contemplated by the Merger Agreement,
(b) against any Acquisition
Proposal, without regard to the terms of such Acquisition Proposal, or any other transaction, proposal, agreement or action made
in opposition to the authorization and approval of the Merger Agreement or in competition or inconsistent with the Merger and the
other transactions contemplated by the Merger Agreement,
(c) against any other
action, agreement or transaction that is intended, that could reasonably be expected, or the effect of which could reasonably be
expected, to materially impede, interfere with, delay, postpone, discourage or adversely affect the Merger or any of the other
transactions contemplated by the Merger Agreement or this Agreement or the performance by such Shareholder of its obligations under
this Agreement, including, without limitation: (i) any extraordinary corporate transaction, such as a merger, consolidation or
other business combination involving the Company or any Subsidiary of the Company (other than the Merger); (ii) a sale, lease or
transfer of a material amount of assets of the Company or any Subsidiary of the Company or a reorganization, recapitalization or
liquidation of the Company or any Subsidiary of the Company; (iii) an election of new members to the board of directors of the
Company, other than nominees to the board of directors of the Company who are serving as directors of the Company on the date of
this Agreement or as otherwise provided in the Merger Agreement; (iv) any material change in the present capitalization or dividend
policy of the Company or any amendment or other change to the Company’s articles of incorporation or bylaws, except if approved
in writing by Parent; (v) any action that would require the consent of Parent pursuant to Section 5.1 of the Merger Agreement,
except if approved in writing by Parent; or (vi) any other material change in the Company’s corporate structure or business,
except if approved in writing by Parent,
(d) against any action,
proposal, transaction or agreement that would reasonably be expected to result in a breach in any respect of any covenant, representation
or warranty or any other obligation or agreement of the Company contained in the Merger Agreement, or of such Shareholder contained
in this Agreement, and
(e) in favor of any other
matter necessary to the consummation of the transactions contemplated by the Merger Agreement.
Section 1.2 Grant of
Irrevocable Proxy; Appointment of Proxy.
1.2.1 From and after the
date hereof until the Expiration Time, each Shareholder hereby irrevocably and unconditionally grants to, and appoints, Parent
and any designee thereof, such Shareholder’s proxy and attorney-in-fact (with full power of substitution), for and in the
name, place and stead of such Shareholder, to vote or cause to be voted (including by proxy or written consent, if applicable)
the Securities:
(a) for authorization
and approval of the Merger Agreement and the transactions contemplated by the Merger Agreement;
(b) against any Acquisition
Proposal, without regard to the terms of such Acquisition Proposal, or any other transaction, proposal, agreement or action made
in opposition to authorization and approval of the Merger Agreement or in competition or inconsistent with the Merger and the other
transactions contemplated by the Merger Agreement;
(c) against any other
action, agreement or transaction that is intended, that could reasonably be expected, or the effect of which could reasonably be
expected, to materially impede, interfere with, delay, postpone, discourage or adversely affect the Merger or any of the other
transactions contemplated by the Merger Agreement or this Agreement or the performance by such Shareholder of its obligations under
this Agreement, including, without limitation: (i) any extraordinary corporate transaction, such as a merger, consolidation or
other business combination involving the Company or any Subsidiary of the Company (other than the Merger); (ii) a sale, lease or
transfer of a material amount of assets of the Company or any Subsidiary of the Company or a reorganization, recapitalization or
liquidation of the Company or any Subsidiary of the Company; (iii) an election of new members to the board of directors of the
Company, other than nominees to the board of directors of the Company who are serving as directors of the Company on the date of
this Agreement or as otherwise provided in the Merger Agreement; (iv) any material change in the present capitalization or dividend
policy of the Company or any amendment or other change to the Company’s articles of incorporation or bylaws, except if approved
in writing by Parent; (v) any action that would require the consent of Parent pursuant to Section 5.1 of the Merger Agreement,
except if approved in writing by Parent; or (vi) any other material change in the Company’s corporate structure or business,
except if approved in writing by Parent;
(d) against any action,
proposal, transaction or agreement that would reasonably be expected to result in a breach in any respect of any covenant, representation
or warranty or any other obligation or agreement of the Company contained in the Merger Agreement, or of such Shareholder contained
in this Agreement; and
(e) in favor of any other
matter necessary to the consummation of the transactions contemplated by the Merger Agreement.
1.2.2 Each Shareholder hereby
represents that any proxies heretofore given in respect of such Shareholder’s Securities, if any, are revocable, and hereby
revokes such proxies.
1.2.3 Each Shareholder hereby
affirms that the irrevocable proxy set forth in this Section 1.2 is given in connection with the execution of the Merger
Agreement, and that such irrevocable proxy is given to secure the performance of the duties of such Shareholder under this Agreement.
Each Shareholder hereby further affirms that the irrevocable proxy is coupled with an interest and, except as set forth in this
Section 1.2, is intended to be irrevocable prior to the Expiration Time. If for any reason the proxy granted herein is not
irrevocable, then each Shareholder agrees to vote such Shareholder’s Securities in accordance with Section 1.1 above
as instructed by Parent in writing prior to the Expiration Time. The parties agree that the foregoing is a voting agreement.
Section 1.3 Restrictions
on Transfers. Except as provided for in the Rollover Agreement or pursuant to the Merger Agreement, the Shareholders hereby
agree that, from the date hereof until the Expiration Time, the Shareholders shall not, directly or indirectly, (a) sell, transfer,
assign, tender in any tender or exchange offer, pledge, encumber, hypothecate or similarly dispose of (by merger, by testamentary
disposition, by operation of law or otherwise), either voluntarily or involuntarily, or enter into any Contract, option or other
arrangement or understanding with respect to the sale, transfer, assignment, pledge, Lien, hypothecation or similar disposition
of (by merger, by testamentary disposition, by operation of law or otherwise) (collectively, “Transfer”), any
Securities, (b) deposit any Securities into a voting trust or enter into a voting agreement or arrangement or grant any proxy
or power of attorney with respect thereto that is inconsistent with this Agreement, (c) convert or exchange, or take any action
which would result in the conversion or exchange, of any Securities, or (d) agree (whether or not in writing) to take any of the
actions referred to in the foregoing clauses (a), (b) or (c).
Section 1.4 Inconsistent
Agreements. The Shareholders hereby covenant and agree that, except for this Agreement, none of the Shareholders (a) has entered
into, or will enter into at any time while this Agreement remains in effect, any voting agreement or voting trust with respect
to the Securities and (b) has granted, or will grant at any time while this Agreement remains in effect, a proxy, consent or power
of attorney with respect to the Securities.
ARTICLE II
NO SOLICITATION
Section 2.1 Restricted
Activities. Prior to the Expiration Time, each Shareholder in its capacity as a shareholder of the Company shall not, and shall
use its reasonable best efforts to cause its officers, directors, employees, agents, advisors and other representatives (in each
case, acting in their capacity as such to such Shareholder, in its capacity as a shareholder (the “Shareholder’s
Representatives”)) not to, in each case, directly or indirectly take any action that the Company is prohibited from taking
under Section 5.2 of the Merger Agreement.
Section 2.2 Notification.
From and after the date hereof until the Expiration Time, the Shareholders shall promptly advise each of Parent and the Company
orally (and in any event within 24 hours) and subsequently in writing of (x) any Acquisition Proposal, (y) any request it receives
in its capacity as a shareholder of the Company for non-public information relating to the Company or any Subsidiary of the Company,
other than requests for information not reasonably expected to be related to or result into an Acquisition Proposal, and (z) any
inquiry or request for discussion or negotiation it receives in its capacity as a shareholder of the Company regarding an Acquisition
Proposal, including in each case the identity of the person making any such Acquisition Proposal or indication or inquiry and the
terms of any such Acquisition Proposal or indication or inquiry (including, if applicable, copies of any written requests, proposals
or offers, including proposed agreements). The Shareholder, in its capacity as a shareholder of the Company, shall keep each of
Parent and the Company reasonably informed on a reasonably current basis of the status and terms (including any material changes
to the terms thereof) of any such Acquisition Proposal or indication or inquiry (including, if applicable, any revised copies of
written requests, proposals and offers) and the status of any such discussions or negotiations to the extent known by the Shareholder.
This Section 2.2 shall not apply to any Acquisition Proposal received by the Company. The Shareholder’s receipt, in
its capacity as a shareholder of the Company, of any Acquisition Proposal shall not relieve the Shareholder from any of its obligations
hereunder.
Section 2.3 Capacity.
Notwithstanding anything to the contrary set forth in this Article II, the Shareholder is signing this Agreement solely
and only in the Shareholder’s capacity as a shareholder of the Company and, accordingly, nothing contained herein shall in
any way limit or affect any actions taken by any shareholder of the Shareholder, or any trustee of any shareholder of the Shareholder,
in his capacity as an officer or director of the Company, and no action taken in any such capacity as an officer or director of
the Company shall be deemed to constitute a breach of this Agreement.
ARTICLE III
REPRESENTATIONS, WARRANTIES AND COVENANTS
OF THE SHAREHOLDERS
Section 3.1 Representations
and Warranties. Each Shareholder jointly and severally represents and warrants to Parent and Merger Sub as follows: (a) such
Shareholder has full legal right, power and authority to execute and deliver this Agreement, to perform such Shareholder’s
obligations hereunder and to consummate the transactions contemplated hereby; (b) this Agreement has been duly executed and delivered
by such Shareholder and the execution, delivery and performance of this Agreement by such Shareholder and the consummation of the
transactions contemplated hereby have been duly authorized by all necessary action on the part of such Shareholder and no other
actions or proceedings on the part of such Shareholder are necessary to authorize this Agreement or to consummate the transactions
contemplated hereby, (c) assuming this Agreement constitutes the valid and binding agreement of Parent and Merger Sub, this Agreement
constitutes the valid and binding agreement of such Shareholder, enforceable against such Shareholder in accordance with its terms,
(d) the execution and delivery of this Agreement by such Shareholder does not, and the consummation of the transactions contemplated
hereby and the compliance with the provisions hereof will not, conflict with or violate any Law or agreement binding upon such
Shareholder or such Shareholder’s Securities, nor require any authorization, consent or approval of, or filing with, any
Governmental Authority, except for filings with the Securities and Exchange Commission by such Shareholder, and (e) except for
such transfer restrictions of general applicability as may be provided under the Securities Act of 1933, as amended, and the “blue
sky” laws of the various states of the United States, such Shareholder owns, beneficially and of record, or controls all
of its Securities (and any additional Securities acquired after the date hereof), and all of such Securities are free and clear
of any proxy, voting restriction, adverse claim or other Lien (other than any restrictions created by this Agreement), and has
sole voting power and sole power of disposition with respect to such Shareholder’s Securities, with no restrictions on such
Shareholder’s rights of voting or disposition pertaining thereto and no person other than such Shareholder has any right
to direct or approve the voting or disposition of any of the Shareholder’s Securities. Such Shareholder understands and acknowledges
that Parent, Merger Sub and the Company are entering into the Merger Agreement in reliance upon such Shareholder’s execution,
delivery and performance of this Agreement.
Section 3.2 Covenants.
Each Shareholder hereby:
(a) agrees, prior to the
Expiration Time, not to take any action that would make any representation or warranty of such Shareholder contained herein untrue
or incorrect or have or could have the effect of preventing, impeding or interfering with or adversely affecting the performance
by such Shareholder of its obligations under this Agreement;
(b) irrevocably waives,
and agrees not to exercise, any rights of appraisal or rights of dissent from the Merger that such Shareholder may have with respect
to such Shareholder’s Securities (including without limitation any appraisal rights pursuant to Section 238 of the Cayman
Companies Law) prior to the Expiration Time;
(c) agrees to promptly
notify Parent and Merger Sub of the number of any new Securities acquired by such Shareholder after the date hereof and prior to
the Expiration Time. Any such Securities shall be subject to the terms of this Agreement as though owned by the Shareholder on
the date hereof;
(d) agrees to permit the
Company to publish and disclose in the Proxy Statement, such Shareholder’s identity and ownership of Company Shares, ADSs
and Company Options or other equity securities of the Company and the nature of such Shareholder’s commitments, arrangements
and understandings under this Agreement;
(e) authorizes the Company,
Parent, Merger Sub and their respective counsel and representatives to notify the Company’s transfer agent that there is
a stop transfer order with respect to all of the Securities (and that this Agreement places limits on the voting and transfer of
such Securities);
(f) agrees that, prior
to the Expiration Time, it shall support, and grant all approvals, and take all actions reasonably requested by Parent, Merger
Sub or the Company to ensure that any and all anti-takeover laws shall be inapplicable to this Agreement, the Merger Agreement,
the Merger or the other transactions contemplated by the Merger Agreement; and
(g) agrees that, upon
request of Parent, Merger Sub or the Company, such Shareholder shall execute and deliver any additional documents, consents or
instruments and take such further actions as may reasonably be deemed by Parent or Merger Sub to be necessary or desirable to carry
out the provisions of this Agreement.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF PARENT
AND MERGER SUB
Section 4.1 Representations
and Warranties of Parent and Merger Sub. Each of Parent and Merger Sub hereby, jointly and severally, represents and warrants
to the Shareholders as follows: (a) this Agreement has been duly and validly authorized by each of Parent’s and Merger Sub’s
respective board of directors, (b) this Agreement has been duly executed and delivered by a duly authorized officer or other representative
of each of Parent and Merger Sub and (c) assuming this Agreement constitutes a valid and binding agreement of the Shareholders,
this Agreement constitutes a valid and binding agreement of Merger Sub and Parent, enforceable against Merger Sub or Parent, as
applicable, in accordance with its terms.
ARTICLE V
TERMINATION
This Agreement shall terminate
and be of no further force or effect upon the earlier to occur of (A) the Closing and (B) the date of termination of the Merger
Agreement in accordance with its terms. Notwithstanding the preceding sentence, this Article V and Article VI shall
survive any termination of this Agreement. Nothing in this Article V shall relieve or otherwise limit any party of liability
for willful breach of this Agreement.
ARTICLE VI
MISCELLANEOUS
Section 6.1 Expenses.
Except as otherwise may be agreed in writing, all costs, fees and expenses incurred in connection with this Agreement and the transactions
contemplated hereby shall be paid by the party incurring or required to incur such costs, fees and expenses.
Section 6.2 Notices.
Any notices or other communications required or permitted under, or otherwise in connection with this Agreement, shall be in writing
and shall be deemed to have been duly given when delivered in person or upon confirmation of receipt when transmitted by facsimile
transmission or by electronic mail (but only if followed by transmittal by overnight courier or hand for delivery on the next Business
Day) or on receipt after dispatch by registered or certified mail, postage prepaid, addressed, or on the next Business Day if transmitted
by international overnight courier, in each case as follows:
If to Parent or Merger Sub, at:
Suite #4-210, Governors Square
23 Lime Tree Bay Avenue
PO Box 32311
Grand Cayman KY1-1209
Cayman Islands
with a copy to:
16/F Shining Tower
No. 35 Xueyuan Road
Haidian District, Beijing 100191
People’s Republic of China
with a copy (which shall not constitute notice)
to:
Suite 2101, Building C, Yintai Center
#2 Jianguomenwai Ave.
Chaoyang District
Beijing 100022, China
Jerry Ku
Facsimile No.: +86-10-5680-3889
If to a Shareholder, to the address set forth
on the signature page hereto under such Shareholder’s name. Or, in each case, to such other address or to the attention of
such other person as the recipient party shall have specified by prior written notice to the sending party.
Section 6.3 No Partnership,
Agency, or Joint Venture. This Agreement is intended to create, and creates, a contractual relationship and is not intended
to create, and does not create, any agency, partnership, joint venture or any like relationship between the parties hereto.
Section 6.4 Guarantee.
(a) Mr. Jin hereby unconditionally and irrevocably guarantee to Parent, Merger Sub and the Company the performance of all obligations
of the Holdco under and in accordance with this Agreement and irrevocably guarantee to Parent and Merger Sub the performance of
all obligations of the Holdco under and in accordance with the Rollover Agreement and agree, on demand and without any other notice
whatsoever, to perform or cause to be performed all of the obligations of the Holdco hereunder and thereunder, and it shall not
be necessary for Parent, Merger Sub or the Company, in order to enforce such performance by the Holdco or Mr. Jin, first to institute
suit or pursue or exhaust any rights or remedies against the Holdco or others liable for the performance of such obligation, or
to join the Holdco in any action to enforce the Holdco’s obligations hereunder, or to resort to any other means of obtaining
performance from the Holdco.
(b) Mr. Jin hereby waives all defenses based
upon suretyship or impairment of collateral, together with any defenses that it may have or assert with respect to the applicable
guaranteed obligations (other than actual performance), including, without limitation, discharge in bankruptcy, failure of consideration,
breach of warranty, statute of frauds, statute of limitations, accord and satisfaction, release, usury, lack of legal capacity,
delay or lack of diligence.
Section 6.5 Severability.
Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be
ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms
and provisions of this Agreement in any other jurisdiction. If any provision of this Agreement is so broad as to be unenforceable,
such provision shall be interpreted to be only as broad as is enforceable.
Section 6.6 Entire
Agreement; Benefit. This Agreement, the Merger Agreement and the Rollover Agreement embody the complete agreement and understanding
among the parties hereto with respect to the subject matter hereof and thereof and supersede and preempt any prior understandings,
agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in
any way. The representations and warranties set forth herein and the covenants set forth herein have been made solely for the benefit
of the parties to this Agreement and (a) may be intended not as statements of fact, but rather as a way of allocating the risk
to one of the parties if those statements prove to be inaccurate and (b) may apply standards of materiality in a way that is different
from what may be viewed as material by shareholders of, or other investors in, the Company.
Section 6.7 Specific
Performance. The Shareholders acknowledge that monetary damages would not be an adequate remedy in the event that any covenant
or agreement in this Agreement is not performed in accordance with its terms, and it is therefore agreed that, in addition to and
without limiting any other remedy or right it may have, Parent, Merger Sub and the Company will have the right to an injunction,
temporary restraining order or other equitable relief in any court of competent jurisdiction enjoining any such breach and enforcing
specifically the terms and provisions hereof. The Shareholders agree not to oppose the granting of such relief in the event a court
determines that such a breach has occurred, and to waive any requirement for the securing or posting of any bond in connection
with such remedy. All rights, powers, and remedies provided under this Agreement or otherwise available in respect hereof at law
or in equity shall be cumulative and not alternative, and the exercise or beginning of the exercise of any thereof by Parent, Merger
Sub or the Company shall not preclude the simultaneous or later exercise of any other such right, power or remedy by such party.
Section 6.8 Amendments;
Waivers. At any time prior to the Expiration Time, any provision of this Agreement may be amended or waived if, and only if,
such amendment or waiver is in writing and signed, in the case of an amendment, by Mr. Jin, Parent, Merger Sub and the Company,
or in the case of a waiver, by the party against whom the waiver is to be effective. Notwithstanding the foregoing, no failure
or delay by Merger Sub, Parent or the Company in exercising any right hereunder shall operate as a waiver thereof nor shall any
single or partial exercise thereof preclude any other or further exercise of any other right hereunder.
Section 6.9 Governing
Law. (a) This Agreement (other than with respect to matters relating to fiduciary duties of the Company Board), and all claims
or causes of action (whether in contract, tort or otherwise) that may be based upon, arise out of or relate to this Agreement (other
than with respect to matters relating to fiduciary duties of the Company Board) or the negotiation, execution or performance hereof
(other than with respect to matters relating to fiduciary duties of the Company Board) (including any claim or cause of action
based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement or as an inducement
to enter into this Agreement), shall be interpreted, construed, performed and enforced in accordance with the Laws of the State
of New York without giving effect to its principles or rules of conflict of laws to the extent such principles or rules would require
or permit the application of the Laws of another jurisdiction.
(b) All claims or causes
of action (whether in contract, tort or otherwise) that may be based upon, arise out of or relate to matters relating to fiduciary
duties of the Company Board, shall be interpreted, construed, performed and enforced in accordance with the Laws of the Cayman
Islands without giving effect to its principles or rules of conflict of laws to the extent such principles or rules would require
or permit the application of the Laws of another jurisdiction.
Section 6.10 Consent
to Jurisdiction. In the event any dispute arises among the parties hereto out of or in relation to this Agreement, including
any dispute regarding its breach, termination or validity, the parties shall attempt in the first instance to resolve such dispute
through friendly consultations. If any dispute has not been resolved by friendly consultations within thirty (30) days after any
party has served written notice on the other parties requesting the commencement of such consultations, then any party may demand
that the dispute be finally settled by arbitration in accordance with the following provisions of this Section 6.10. The arbitration
shall be conducted in accordance with the UNCITRAL Arbitration Rules and the Hong Kong International Arbitration Centre ("HKIAC")
Procedures for the Administration of International Arbitration in force at the date of this Agreement, which rules are deemed to
be incorporated by reference in this Section 6.10. The place of the arbitration shall be Hong Kong and the language of the arbitration
shall be English. The appointing authority shall be the HKIAC. There shall be three arbitrators. One arbitrator shall be nominated
by the Company or the Parent, as applicable, and one arbitrator shall be nominated by the Shareholders. If any party shall abstain
from nominating their arbitrator, the HKIAC shall appoint such arbitrator. The two arbitrators so chosen shall select a third arbitrator;
provided that if such two arbitrators shall fail to choose a third arbitrator within 30 days after such two arbitrators have been
selected, the HKIAC, upon the request of any party, shall appoint a third arbitrator. The third arbitrator shall be the presiding
arbitrator. The arbitration shall be conducted in private. The parties agree that all documents and evidence submitted in the arbitration
(including without limitation any statements of case and any interim or final award, as well as the fact that an arbitral award
has been made) shall remain confidential both during and after any final award that is rendered unless the parties hereto otherwise
agree in writing. Upon and after the submission of any dispute to arbitration, the parties shall continue to exercise their remaining
respective rights, and fulfill their remaining respective obligations under this Agreement, except insofar as the same may relate
directly to the matters in dispute. The parties hereby agree that any arbitration award rendered in accordance with the provisions
of this Section 6.10 shall be final and binding upon them, and the parties further agree that such award may be enforced by any
court having jurisdiction over the party against which the award has been rendered or the assets of such party wherever the same
may be located. In any arbitration proceeding, any legal proceeding to enforce any arbitration award and in any other legal proceeding
among the parties pursuant to or relating to this Agreement, each party expressly waives the defense of sovereign immunity and
any other defense based on the fact or allegation that it is an agency or instrumentality of a sovereign state or is otherwise
entitled to immunity.
Section 6.11 WAIVER
OF JURY TRIAL. Each party hereto acknowledges and agrees that any controversy or action
which may arise under this Agreement is likely to involve complicated and difficult issues, and therefore each such party hereby
irrevocably and unconditionally waives any right such party may have to a trial by jury in respect of any litigation or action
directly or indirectly arising out of or relating to this Agreement or the transactions contemplated hereby. Each party certifies
and acknowledges that (i) no representative, agent or attorney of any other party
has represented, expressly or otherwise, that such other party would not, in the event of litigation or action, seek to enforce
the foregoing waiver, (ii) each party understands and has considered the implications
of this waiver, (iii) each party makes this waiver voluntarily, and (iv)
each party has been induced to enter into this Agreement by, among other things, the mutual waivers and certifications in this
section.
Section 6.12 Third
Party Beneficiaries. The Company is intended to be an express third party beneficiary of this Agreement, with full rights of
enforcement of this Agreement against the Shareholders. Other than as set forth in the preceding sentence, there are no third party
beneficiaries of this Agreement and nothing in this Agreement, express or implied, is intended to confer on any Person other than
the parties hereto (and their respective successors, heirs and permitted assigns), any rights, remedies, obligations or liabilities.
Section 6.13 Assignment;
Binding Effect. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of
the parties hereto (whether by operation of Law or otherwise) without the prior written consent of the other parties or the Company,
except that (i) Merger Sub may assign, in its sole discretion, any of or all of its rights, interest and obligations under this
Agreement to Parent or to any direct or indirect wholly owned subsidiary of Parent, but no such assignment shall relieve Merger
Sub of its obligations hereunder and (ii) Parent and Merger Sub may assign this Agreement (in whole but not in part) in connection
with a permitted assignment of the Merger Agreement by Parent or Merger Sub, as applicable. Subject to the preceding sentence,
this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted
assigns and, in the case of Mr. Jin, his estate, heirs, beneficiaries, personal representatives and executors. Parent shall cause
Merger Sub, and any assignee thereof, to perform its obligations under this Agreement and shall be responsible for any failure
of Merger Sub or such assignee to comply with any representation, warranty, covenant or other provision of this Agreement.
Section 6.14 Mutual
Drafting. Each party hereto has participated in the drafting of this Agreement, which each party hereto acknowledges is the
result of extensive negotiations between the parties hereto.
Section 6.15 Headings.
Headings of the Articles and Sections of this Agreement are for convenience of the parties only and shall be given no substantive
or interpretive effect whatsoever.
Section 6.16 Interpretation.
When a reference is made in this Agreement to an Article or Section, such reference shall be to an Article or Section of this Agreement
unless otherwise indicated. Whenever the words “include,” “includes” or “including” are used
in this Agreement, they shall be deemed to be followed by the words “without limitation.” The words “hereof,”
“herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement
as a whole and not to any particular provision of this Agreement. The word “or” shall be deemed to mean “and/or.”
All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered
pursuant thereto unless otherwise defined therein. The definitions contained in this Agreement are applicable to the singular as
well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such term. Any agreement,
instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement,
instrument or statute as from time to time amended, modified or supplemented, including (in the case of agreements or instruments)
by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments
thereto and instruments incorporated therein. Each of the parties hereto has participated in the drafting and negotiation of this
Agreement. If an ambiguity or question of intent or interpretation arises, this Agreement must be construed as if it is drafted
by all the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of authorship
of any of the provisions of this Agreement.
Section 6.17 Counterparts.
This Agreement may be executed in two or more consecutive counterparts (including by facsimile or email pdf format), each of which
shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument, and shall become
effective when one or more counterparts have been signed by each of the parties and delivered (by telecopy, email pdf format or
otherwise) to the other parties.
[Signature Pages to follow]
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
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Vimicro
Shenzhen Corporation |
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/s/
Zhaowei (Kevin) Jin |
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Zhaowei (Kevin)
Jin |
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Director |
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Address: |
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15/F Shining
Tower |
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No. 35 Xueyuan
Road |
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Haidian District,
Beijing 100191 |
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People’s Republic of
China |
Signature Page to the Voting Agreement
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
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Zhaowei (Kevin) Jin |
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/s/
Zhaowei (Kevin) Jin |
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Address: |
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15/F Shining Tower |
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No. 35 Xueyuan Road |
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Haidian District, Beijing 100191 |
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People’s Republic of China |
Signature Page to the Voting Agreement
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
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VIMICRO CHINA (PARENT) LIMITED |
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By: | |
/s/
Zhaowei (Kevin) Jin |
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Name: | |
Zhaowei
(Kevin) Jin |
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Title: | |
Director
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Signature Page to the Voting Agreement
IN WITNESS WHEREOF, the
parties hereto have duly executed and delivered this Agreement as of the date and year first written above.
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VIMICRO CHINA ACQUISITION
LIMITED |
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/s/
Zhaowei (Kevin) Jin |
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Name: | |
Zhaowei
(Kevin) Jin |
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Signature Page to the Voting Agreement
(MM) (NASDAQ:VIMC)
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