Document:

Exhibit 10.15

 

RIGHTS ASSIGNMENT AND RELEASE AGREEMENT

 

This Rights Assignment and Release Agreement (the “Agreement”), is made and entered into as of January 10, 2014 (the “Effective Date”) by and between TigerLogic Corporation, a Delaware corporation, located at 25A Technology Drive, Irvine, CA 92618  (“TigerLogic”) and Peter Yared, an individual with physical and email addresses as set forth on the signature page hereto (“Assignor”).

 

WHEREAS, TigerLogic and Assignor are parties to that certain Consulting Agreement dated October 1, 2010, including without limitation, Statements of Work Numbers 1.0, 1.1, 1.2, 2.0, and 3.0 thereunder, pursuant to which Assignor was paid a total of ninety thousand dollars ($90,000) for his services and was to receive an ongoing royalty payment (collectively, the “Original Agreement”).

 

WHEREAS, this Agreement replaces the Original Agreement in its entirety on the terms set forth herein.

 

WHEREAS, from and after the Effective Date, the Original Agreement is superseded hereby and of no further force or effect.

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants set forth herein, the parties hereby agree as follows:

 

1.                                      SERVICES, COMPENSATION

 

Assignor has completed all services to be provided by Assignor under the Original Agreement and has delivered to TigerLogic all items to be delivered under the Original Agreement (“Deliverables”).

 

2.                                      OWNERSHIP

 

2.1                               TigerLogic Ownership.  Assignor confirms that the following items were and are assigned to TigerLogic under the Original Agreement and at all times remain the sole property of TigerLogic: (a) all contributions of Assignor to TigerLogic’s software product known as “Postano” (the “Software”), (b) all Deliverables; and (c) all software programs or subroutines, source or object code, algorithms, improvements, inventions, works of authorship, Proprietary Information (defined in Section 5.1 below), technology, designs. formulas, ideas, processes, techniques, know-how and data, whether or not patentable (i) which were conceived, made or discovered by Assignor, solely or in collaboration with others, during the term of the Original Agreement that relate in any manner to the Software or the business of TigerLogic; (ii) that Assignor was directed to undertake, investigate or experiment with as part of his services under the Original Agreement; or (iii) that Assignor became associated with in work, investigation or experimentation in the line of business of TigerLogic in performing services under the Original Agreement (collectively,  “Covered Inventions”).  The foregoing assignment by Assignor includes without limitation,  any and all patents, patent rights, copyrights, mask work rights, trade secret rights, trademark rights, and other intellectual property, publicity and other proprietary rights of any nature anywhere in the world (“Proprietary Rights”).  Assignor further confirms that he has assigned (or caused to be assigned) and does hereby assign fully to TigerLogic all right, title and interest in the Software, Deliverables, and Covered Inventions, including without limitation, all Proprietary Rights, in perpetuity, and for all extensions and renewals of copyright whether now or hereafter existing.

 

1

 

2.2                               Moral Rights.  Any assignment of copyright hereunder includes all rights of paternity, integrity, disclosure, withdrawal, and  any other rights that may be known as or referred to as “moral rights” (collectively, “Moral Rights”). To the extent that such Moral Rights cannot be assigned under applicable law and to the extent allowed by the laws in the various countries where Moral Rights exist, Assignor hereby waives such Moral Rights and further consents to any action of TigerLogic that would violate such Moral Rights in the absence of such consent.

 

2.3                               Further Assurances.  Assignor agrees to perform, during and after the term of this Agreement, all acts deemed necessary or desirable by TigerLogic to permit and assist it in evidencing, perfecting, obtaining, maintaining, defending and enforcing TigerLogic’s rights in the Software, Deliverables, Covered Inventions and Proprietary Rights.  Such acts may include, but are not limited to, execution of documents and assistance or cooperation in legal proceedings. If TigerLogic is unable for any reason whatsoever to secure Assignor’s signature to any such document (including but not limited to renewals, extensions, continuations, divisions or continuations-in-part), Assignor hereby irrevocably designates and appoints TigerLogic and its duly authorized officers and agents as Assignor’s agents and attorneys-in-fact, to act for, on behalf and instead of Assignor, to execute and file any documents and to do all other lawfully permitted acts to further the above purposes with the same legal force and effect as if executed by Assignor.  Assignor acknowledges that such appointment is a grant of a power coupled with an interest and is irrevocable.

 

3.                                      COMPENSATION

 

3.1                                     Flat Fee; Total Amount Due.  In full, complete and final consideration for the rights previously and hereby assigned to TigerLogic, in complete satisfaction of any amounts due or that may become due under the Original Agreement, and for the releases and covenants given hereunder, TigerLogic shall pay Assignor the amount of One Million Dollars ($1,000,000), to be paid as follows: $250,000 payable on each of January 15, April 15, July 15, and October 15, 2014.   Any late payment shall be subject to an 8% late payment fee (compounded monthly).  Assignor acknowledges and agrees that the foregoing payment is lieu of and replaces any and all other payments, including without limitation any royalties, service fees, or other consideration of any kind, that may be or may become due to Assignor from TigerLogic, whether under the Original Agreement, any Statement of Work or otherwise.

 

3.2                               Taxes.  Each party shall be solely responsible for reporting and remitting all taxes, governmental fees or other similar charges or assessments imposed, levied or assessed on such party by any federal, state, local or other governmental authority as a result of the transactions contemplated under this Agreement.  Each party shall indemnify and hold the other party harmless from and against any and all damages or costs, including attorneys’ fees and costs, resulting from such party’s failure to comply with the foregoing sentence.

 

2

 

4.                                      RELEASE AND SETTLEMENT OF CLAIMS

 

4.1                               Release.  Assignor, for himself and on behalf of his respective legal predecessors, successors, and assigns, hereby forever releases and discharges TigerLogic, its predecessors, successors, and assigns, and its past, present, and future officers, directors, employees, attorneys, representatives, agents, parents, affiliated entities, and subsidiaries (hereinafter collectively referred to as “Releasees”) from any and all claims, demands, obligations, damages, liabilities, and causes of action, known or unknown, arising at any time in the past up to and including the date hereof which concern or relate to the Original Agreement, this Agreement or the subject matter of either of the foregoing.  Assignor will not bring or participate in any action, either on an individual or collective basis, or on a representative basis on behalf of others, against TigerLogic or any of the Releasees based on or relating to any matter released herein.

 

4.2                               Section 1542.  Assignor has read and understood the following in Section 1542 of the California Civil Code:  “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”  Having reviewed this provision, Assignor hereby voluntarily waives and releases any rights he may have under this provision or any similar law and fully releases Releasees from unknown or unsuspected claims.

 

5.                                      CONFIDENTIALITY

 

5.1                               Definition.  “Proprietary Information” means any information that was or will be developed, created, or discovered by or on behalf of TigerLogic, or which became or will become known by, or was or is conveyed to, Assignor, which has commercial value in TigerLogic’s business, including but not limited to trade secrets; information regarding the Software, the Deliverables, the Covered Inventions, the Proprietary Rights, business and product development plans, customer lists, terms of compensation and performance levels of TigerLogic employees; information  about TigerLogic customers and products; information concerning TigerLogic’s actual or anticipated business, financials, research or development; and information which is received in confidence by or for TigerLogic from any other person.

 

5.2                               Covenant.  Assignor will not, during or subsequent to the term of this Agreement, use TigerLogic’s Proprietary Information for any purpose whatsoever, nor disclose TigerLogic’s Proprietary Information to any third party.  Assignor further agrees to take all reasonable precautions to prevent any unauthorized disclosure of TigerLogic’s Proprietary Information, including but not limited to having each employee or subcontractor of Assignor with access to any of TigerLogic’s Proprietary Information, if any, execute a nondisclosure agreement containing provisions in TigerLogic’s favor substantially similar to this Section 5.

 

5.3                               Exclusion.  Proprietary Information does not include information which (a) other than with respect to information that was developed by Assignor under the Original Agreement, is known to Assignor at the time of disclosure to Assignor by TigerLogic, as evidenced by Assignor’s written records; (b) has become publicly  known and made generally available through no improper action or inaction by Assignor or any agent or affiliate of the Assignor; (c) has been rightfully received by Assignor from a third party who is authorized to make such disclosure without obligation of confidentiality; or (d) has been independently developed by Assignor without any access or reference to the Proprietary Information.

 

3

 

5.4                               Governmental Order.  Nothing in this Agreement shall prevent Assignor from disclosing Proprietary Information to the extent Assignor is legally compelled to do so by any governmental investigative or judicial agency pursuant to proceedings over which such agency has jurisdiction; provided, however, that prior to any such disclosure, Assignor shall (a) assert the confidential nature of the Proprietary Information to the agency, (b) immediately notify TigerLogic in writing of the agency’s release or request to disclose, and (c) cooperate fully with TigerLogic in protecting against any such disclosure and/or obtaining a protective release narrowing the scope of the compelled disclosure and protecting the confidentiality of the Proprietary Information.

 

5.5                               Materials.  At any time upon TigerLogic’s request Assignor will deliver to TigerLogic (and will not recreate or deliver to anyone else) all of TigerLogic’s property, Software, Deliverables, Covered Inventions and Proprietary Information that Assignor may have in Assignor’s possession or control; or, upon TigerLogic’s request, Assignor will destroy all property, Software, Deliverables, Covered Inventions and Proprietary Information of TigerLogic in Assignor’s possession, including all copies thereof, and confirm in writing to TigerLogic that Assignor has complied with the obligations set forth in this paragraph.

 

6.                                      REPRESENTATIONS AND WARRANTIES

 

6.1                               Mutual Warranties.  Each party represents and warrants to the other that: (a) it or he has the capacity, authority, and legal right to enter into this Agreement and to perform the obligations hereunder; and (b) the execution and delivery of this Agreement and the performance of its obligations hereunder do not conflict with or constitute a default under any of his or its other contractual obligations.

 

6.2                               Assignor Warranties.  Assignor represents and warrants that: (a) the Deliverables, including without limitation, Assignor’s contributions to the Software, are original developments of Assignor and do not infringe upon or violate any third party’s legal or contractual rights, including any copyrights, trade secrets, trademarks or other intellectual property  rights, or rights of privacy or publicity; (b) the Deliverables do not contain any libel or slander upon any person or entity; (c) the Software contains no “open source” or similarly licensed code other than that listed on Schedule A attached hereto; (d) to the extent the Deliverables consist of any computer code, as delivered by Assignor, the Deliverables do not contain any viruses, Trojan horses, worms, time-bombs, or other malicious or injurious code of any nature; and (e) as delivered by Assignor, TigerLogic has good and marketable title to each Deliverable, free and clear of all liens and encumbrances.  In the event of a breach of the foregoing representations and warranties by Assignor, Assignor shall, at TigerLogic’s sole discretion, repair or replace the defective or infringing Deliverables; provided that if the foregoing remedy is impractical, Assignor shall provide a full refund of all amounts paid by TigerLogic to Assignor under this Agreement, in addition to any other rights and remedies that may remain available to TigerLogic.

 

4

 

7.                                      LIMITATION OF LIABILITY

 

UNDER NO CIRCUMSTANCES WILL TIGERLOGIC BE LIABLE TO ASSIGNOR FOR ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, UNDER ANY CONTRACT, STRICT LIABILITY, TORT (INCLUDING NEGLIGENCE) OR OTHER THEORY, FOR: (A) ANY INCIDENTAL,  PUNITIVE,  INDIRECT, SPECIAL, EXEMPLARY, EXTRAORDINARY, RELIANCE, OR CONSEQUENTIAL DAMAGES OR LOST PROFITS; OR (B) ANY OTHER DAMAGES THAT IN THE AGGREGATE EXCEED ALL AMOUNTS PAID OR PAYABLE BY TIGERLOGIC TO ASSIGNOR UNDER THE ORIGINAL AGREEMENT.  THE FOREGOING LIMITATION OF LIABILITY SHALL APPLY TO THE MAXIMUM EXTENT ALLOWED BY APPLICABLE LAW REGARDLESS OF WHETHER TIGERLOGIC HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND NOTWITHSTANDING THE FAILURE OF ANY REMEDY OF ITS ESSENTIAL PURPOSE.

 

8.                                      ARBITRATION AND EQUITABLE REMEDY

 

8.1                               Governing Law.  This Agreement will be governed by and construed under the laws of the State of California without regard to the conflicts of laws provisions thereof.

 

8.2                               Arbitration.  With the sole and unique exception of the specific equitable remedy described in Section 8.3 below, TigerLogic and Assignor agree that any dispute or controversy arising out of or relating to any interpretation, construction, performance or breach of this Agreement, shall be settled by arbitration to be held in San Jose, California, in accordance with the rules then in effect of the American Arbitration Association or its successor.  The arbitrator may grant injunctions or other relief in such dispute or controversy.  The decision of the arbitrator shall be final, conclusive and binding on the parties to the arbitration.  Judgment may be entered on the arbitrator’s decision in any court of competent jurisdiction.  TigerLogic and Assignor initially shall each pay one-half of the costs and expenses of any such arbitration.  However, the prevailing party in any arbitration or litigation relating to this Agreement shall be entitled to its fees and costs (including without limitation reasonable attorney’s and expert’s fees).

 

8.3                               Injunction, No Bond.  Assignor agrees that it would be impossible or inadequate to measure and calculate TigerLogic’s damages from any breach of the covenants set forth in Sections 2 and 5 herein. Accordingly, Assignor agrees that if Assignor breaches such Sections, TigerLogic will have available, in addition to any other right or remedy available, the right to obtain from any court of competent jurisdiction an injunction restraining such breach or threatened breach and to specific performance of any such provision. Assignor further agrees that no bond or other security shall be required in obtaining such equitable relief and Assignor hereby consents to the issuances of such injunction and to the ordering of such specific performance.

 

9.                                      GENERAL PROVISIONS

 

9.1                               Notices.  Any notice herein required or permitted to be given will be given in writing, may be personally served or sent to the address or facsimile number, as applicable, of the party being notified as set forth on the first page hereto, by first class mail, a nationally recognized overnight delivery service, or facsimile, and such notice will  be: deemed to have

 

5

 

been given: (a) if personally given, when received; (b) if mailed, three (3) business days after deposit with the United States Postal Service properly addressed and postage prepaid; (c) if sent by overnight delivery service, on the first business day occurring on or after the date the delivery is confirmed by such service; or (d) if by facsimile, on the first business day occurring on or after the date it is sent to the proper facsimile number and receipt is confirmed by the sending machine.  Addresses and facsimile numbers for notice purposes may be changed by notice given as provided herein.

 

9.2                               No Solicitation.  For a period of one (1) year from the date hereof, Assignor will not, without TigerLogic’s prior written consent, either on Assignor’s own behalf or on behalf of another: (a) contact or solicit TigerLogic employees for the purpose of hiring them, to the extent Assignor was introduced to, came in contact with, or developed a relationship with any of them as a result of the Services or Deliverables completed by Assignor; or (b) solicit the business of any client, customer, or licensee of TigerLogic, to the extent Assignor was introduced to, came in contact with, or developed a relationship with any of them as a result of Services or Deliverables completed by Assignor.  Assignor acknowledges that the provisions of this Section are reasonable and necessary measures designed to protect TigerLogic’s Proprietary Information.

 

9.3                               Entire Agreement.  This Agreement sets forth the entire agreement and understanding between TigerLogic and Assignor relating to the subject matter herein and supersedes all prior discussions and agreements between the parties, including without limitation, the Original Agreement.  No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless executed in writing and signed by both parties.  No waiver of any breach or provision of this Agreement will be binding unless it is in a writing signed by an officer of TigerLogic.  The waiver, or failure to enforce, any right resulting from any breach or provision of this Agreement will not be deemed a waiver of any right relating to a subsequent breach, any other provision, or any other right hereunder.

 

9.4                               No Assignment.  Neither this Agreement nor any right or obligation hereunder or any interest herein may be assigned or transferred by Assignor without the express prior written consent of TigerLogic.  Subject to the foregoing, this Agreement will be binding upon, inure to the benefit of, and be enforceable against Assignor’s heirs, executors, administrators and other legal representatives and will be binding upon and for the benefit of TigerLogic, its successors, and assigns.  Any purported assignment or transfer in violation of this Section 9.4 will be null and void.

 

9.5                               Headings.  The headings used in this Agreement are for the convenience of the parties and for reference purposes only and shall not form a part or affect the interpretation of this Agreement.  If one or more of the provisions in this Agreement are deemed void by law, then the remaining provisions will continue in full force and effect.

 

9.6                               Counterparts.  This Agreement may be executed in one or more counterparts and by facsimile or other electronic transmission (including via email in “portable document format”), each of which shall be deemed an original, but all of which shall constitute the same instrument.

 

(signature page follows)

 

6

 

IN WITNESS WHEREOF, the parties have executed this Rights Assignment and Release Agreement effective as of the Effective Date.

 

	
PETER   YARED
    	
 
    	
TIGERLOGIC   CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:   
    	
/s/Peter   Yared
    	
 
    	
By:   
    	
/s/   Richard W. Koe 
    
	
 
    	
 
    	
President &   Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
Address:   
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Email:
    	
 
    	
 
    
					

 

7

 

SCHEDULE A

 

[omitted]

 

8January 15, 2014 Exhibit 10.1

Exhibit 10.1

ZOOM TECHNOLOGIES, INC.

                 Sanlitun SOHO, Building A, 11th Floor

                 No.8 Workers Stadium North Road

                 Chaoyang District, Beijing, China 100027

                 Phone:+86-10-5935-9000

                 Fax:+86-10-5935-9003

January 13, 2014

Tinho Union Holding Group

   深圳市天河联盟科技有限公司

   28th Floor, Sunshine Golf Building,

   Shennan Road, Futian District, Shenzhen, P.R.C.

Gentlemen:

This Letter of Intent ("Letter of Intent") outlines the general terms and conditions of a bona fide strategic transaction pursuant to which Zoom
Technologies, Inc., a Delaware Corporation ("Zoom" or the "Company"), proposes to acquire 100% of the outstanding shares of Tinho Union Holding
Group (深圳市天河联盟科技有限公司)
and its subsidiaries ("Tinho") as contemplated hereunder (the "Proposed Transaction"), with the proposed terms and conditions in Exhibit A attached
hereto (the "Term Sheet").  This Letter of Intent and the accompanying Term Sheet are subject to final terms and conditions, which will be mutually accepted and fully
described in a definitive agreement governing the Proposed Transaction (the "Definitive Agreement").

Tinho is a leading B2B e-commerce platform provider for the travel industry in China. Tinho's innovative platform aggregates and streamlines a vast inventory of travel
products, including air, hotels, car rentals, and vacation packages from travel service providers worldwide to enable customers to easily and accurately find best deals in real-time. Tinho also
provides full-service, customized travel solutions to corporate clients. Tinho distributes its platform through websites (www.thlm.com.cn),
franchise model, direct-sale model and 24-hour toll-free call centers. Founded in 2009, Tinho is headquartered in Shenzhen, China with over 200 employees.

This Letter of Intent may be executed in any number of counterparts and any party hereto may execute any such counterpart, each of which when executed and
delivered will be deemed to be an original and all of which counterparts taken together will constitute but one and the same instrument. In the event that any signature is delivered by facsimile
transmission or other electronic transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same
force and effect as if such facsimile or other electronic signature page were an original thereof.

This Letter of Intent, the rights and obligations of the parties hereto, and any claims or disputes relating thereto, will be governed by and construed under and in
accordance with the laws of the State of New York, without regard to conflicts of law principles that would result in the application of any law other than the laws of the State of New York.
Each party to this Letter

of Intent hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of the United States District Court, or if such court does
not have jurisdiction, any New York State court, in either case sitting in New York, New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to
this Letter of Intent or for recognition or enforcement of any judgment relating thereto, and each of the parties hereby irrevocably and unconditionally (a) agrees not to commence any such
action or proceeding except in such courts, (b) agrees that any claim in respect of any such action or proceeding may be heard and determined in such court, (c) waives, to the fullest extent it
may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any such action or proceeding in any such court, and (d) waives, to the fullest
extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.  Each of the parties hereto agrees that a final judgment in
any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

With the exception of the sections entitled "Exclusivity", "Termination", "Transaction Costs", "Governing Law and
Jurisdiction", "Confidentiality", "Publicity" and "Notice" (the "Binding Provisions"), this Letter of Intent does not, nor is it intended to,
constitute a binding agreement.  Unless and until the Definitive Agreement has been executed, neither of the parties will be under any legal obligation of any kind whatsoever with respect to
the proposed transaction by virtue of this letter of intent, except for the Binding Provisions.

Please acknowledge your acceptance of and agreement to the foregoing by signing and returning to the undersigned as soon as possible a counterpart of this Letter of
Intent.

Very Truly Yours,

                       ZOOM TECHNOLOGIES, INC.

                       Sanlitun SOHO, Building A, 11th Floor, 

                       No.8 Workers Stadium North Road, Chaoyang District, Beijing, China 100027

By:/s/ Patrick Wong         

                       Patrick Wong

                       Chief Financial Officer, Secretary, and Director

Accepted and Agreed to as of January 13, 2014

Tinho Union Holding Group

 深圳市天河联盟科技有限公司

 28th Floor, Sunshine Golf Building,

   Shennan Road, Futian District, Shenzhen, P.R.C.

By: /s/ Yang Jie      

Mr. Yang Jie, Chairman of the Board

                                           2

	
EXHIBIT A - TERM SHEET (all figures in US$)

	
Acquiring Entity: 

Place of Incorporation:

Trading Symbol:

Stock Exchange:

Basic Shares Outstanding:

Derivative Shares Outstanding:

 
	
Zoom Technologies, Inc. (the "Company" or "Zoom")

State of Delaware, U.S.A.

ZOOM

Nasdaq Capital Market ("NasdaqCM")

3,121,185 common shares as of January 4, 2014

700,441 warrants exercisable at $17.30

162,752 warrants exercisable at $47.10

667 warrants exercisable at $69.00

246,000 options exercisable at weighted average price at $13.30

	
Authorized Common Stock:

Authorized Preferred Stock:
	
60,000,000 shares of $0.01 par value

1,000,000 shares of $0.01 par value

	
Acquisition Target Company:
	
Tinho Union Holding Group ("Tinho")

A company will be formed by the existing shareholders of Tinho, which is expected to hold, directly or indirectly, 100% of the equity securities of Tinho (the
"Target").

	
Resulting Company Structure:
	
Zoom directly or indirectly owning 100% of Tinho.

	
Total Consideration to be Paid by Zoom to Tinho Shareholders:

    	
Approximately US$81.0 million in total (the "Tinho Valuation"), consisting of 9,363,585 shares of Zoom's common stock (the
"Consideration Shares") valued at the price of US$8.6505 (the "Price"). The amount of Consideration Shares and the Price shall not be subject to any
adjustment based solely on future closing prices of Zoom's common stock, provided that Zoom's financial advisor confirms the Tinho Valuation, the Consideration Shares and the Price in its
fairness opinion.

	
Economic Effect of the Derivative Shares:
	
Zoom shall use its best efforts to discuss with its holders of the warrants and options such that the per share exercise prices of such warrants and options set out on
this Term Sheet will remain as those stated on this Term Sheet as of the Closing (as defined below), and will not be reduced as a result of the Proposed Transaction other than as is required
by the terms of such warrants and options. 

                                           3

	
Registration: 

 
	
The Tinho shareholders shall have rights to require Zoom to register the resale of the Consideration Shares in an appropriate registration statement to be filed by
Zoom on a form acceptable to the shareholders of Tinho.

	
Lock-Ups:

 
	
Pursuant to the terms of the Make Good Provision below, 50% of the Consideration Shares or 4,681,792 shares of common stock (the "Escrow
Shares"), shall be held in escrow (the "Escrow"). 50% of the Escrow Shares shall be released once 2013 Milestone (as defined below) has been met and 50%
of the Escrow Shares shall be released once 2014 Milestone (as defined below) has been met. 

For the avoidance of doubts, shareholders of such Escrow Shares shall be entitled to vote all of their Escrow Shares prior to and after their release from the Escrow,
unless such shares are cancelled prior to the release from the Escrow.

	
Make Good Provision:
	
The net income (as defined by U.S. generally accepted accounting principles ("GAAP") of Tinho (1) for the fiscal year ending December 31, 2013 (as a standalone
entity with 2013 full year's financial statements) will not be less than RMB50 million ("2013 Milestone"); and (2) for the fiscal year ending December 31, 2014 will not be
less than RMB 68 million (as a standalone entity with 2014 full year's financial statements) ("2014 Milestone").

If either the 2013 Milestone or the 2014 Milestone is not met, the Escrow Shares will be settled as follows:

	If the net income for the 2013 fiscal year is more than RMB25 million but less than RMB 50 million, then 50% of the Escrow Shares, which is equal to 2,340,896
shares, will be reduced proportionally.  (For example: If the net income for the 2013 fiscal year is RMB 45 million, which is 10% less than the 2013 Milestone, then 234,089 shares, or 2.5% of
the Consideration Shares will be cancelled); and

	If the net income for the 2013 fiscal year is under RMB 25 million, then 50% of the Escrow Shares, which is equal to 2,340,896 shares, will be
cancelled.

	If the net income for the 2014 fiscal year is more than RMB 50 million but less than RMB 68 million, then 50% of the Escrow Shares, which is equal to 2,340,896
shares, will be reduced proportionally.  (For example: If the net income for the 2014 fiscal year is RMB 61.2 million, which is 10% less than the 2014 Milestone, then 234,089 shares, or 2.5%
of the Consideration Shares will be cancelled).

                                           4

	
   
	

	If the net income for the 2014 fiscal year is under RMB 50 million, then 50% of the Escrow Shares, which is equal to 2,340,896 shares, will be
cancelled.

The net income commitment is based on: (i) with respect to the 2013 Milestone, the current business of Tinho only; and (ii) with respect to the 2014 Milestone, the
current business of Tinho and Zoom collectively, without any future acquisitions.

	
Conditions:
	
Consummation of the Proposed Transaction as contemplated hereby will be subject to customary conditions, including but not limited to:

	The Chief Executive Officer of Zoom and its Board of Directors resigning from their positions with Zoom effective as of the Closing without any parachute or
termination payments being due or payable to them;

	Designees of shareholders of Tinho or the Target, as the case may be, being appointed, as of Closing, as the Chief Executive Officer and the Board of Directors
of Zoom;

	On the date of the Closing:

	all other assets and liabilities (including all contingent liabilities) (other than cash), shall be removed from Zoom's balance sheet which shall be provided to Tinho
for review at least 10 business days prior to the Closing date ; 

	Zoom's balance sheet shall contain cash in an amount not less than US$27,000,000; provided, that if such amount is materially reduced as a result of any cash
adjustments paid to Zoom's warrant holders in connection with the Proposed Transaction, Zoom and Tinho shall negotiate an adjustment to the terms herein to address the amount of the
shortfall;

	Use of the US$27,000,000 of cash will require approval by a majority of the independent directors of Zoom on a going forward basis (details will be discussed and
included in the Definitive Agreement).

                                           5

	
Additional Closing Conditions:
	
The Proposed Transaction is subject to customary conditions appropriate for a similar share exchange transaction or merger, including:

	Other than those affecting the industries, no material adverse change in the business, subsidiaries, operations, prospects or financial condition of Zoom or Tinho,
unless waived by the other party;

	The representations and warranties of both parties being true and correct at signing of the Definitive Documents and the Closing; 

	Receipt of all equity holders, governmental, regulatory and third party requisite approvals and consents, including the completion of any U.S. Securities and
Exchange Commission ("SEC") procedures and the required approvals of Zoom's stockholders in a form satisfactory to Zoom and Tinho provided that as it relates to a
condition to Closing, that Zoom and Tinho shall use their reasonable best efforts to obtain the foregoing approvals and consents;

	The terms and conditions of the Proposed Transaction must be acceptable to both Zoom and Tinho and approved by each of their respective Boards of
Directors;

	There is no relationship of partnership, agency, employment, or joint venture between the parties.  No party has the authority to bind the other or incur any
obligation on its behalf;

	So long as Zoom has complied with all applicable laws, particularly the ones required by the SEC relating to Zoom's financial statements, Tinho shall procure
within the time period provided below, audited financial statements suitable for inclusion in a proxy statement on Schedule 14A and current report on Form 8-K (or similar form as required by
the SEC) in connection with the Closing, and acknowledges that a Form 8-K filing is required within four (4) business days following the Closing, provided that Zoom makes such filings on
time, as specified here.  Tinho acknowledges that Zoom expects that the audited financial statements of Tinho will include those covering the financial years ended December 31, 2013, 2012,
and 2011 (such audited financial statements, the "Audited Financial Statements").Such Audited Financial Statements will be delivered to Zoom on or prior to February 28,
2014, unless otherwise agreed by all the parties;

                                           6

	
   
	

	Each of Tinho and Zoom agrees to provide the other party with any information relating to any government filings contemplated by the Proposed Transaction, and
consents to the disclosure of such if and when required under federal securities law; 

	Subject to such customary additional terms not inconsistent with the above as agreed between the parties;

	The results of the due diligence to be conducted by legal, financial and accounting advisors and other representatives of each party, as the case may be, being
satisfactory to the Boards of Directors of Tinho and Zoom in their sole discretion;

	Receipt by Zoom of a fairness opinion issued by Zoom's financial advisor that confirms the Tinho Valuation, the Consideration Shares and the Price;
and

	The indemnifications provided by both parties being satisfactory to the other party, as the case may be.

	
Penalty:
	
If any party commits any material breach (other than the Exclusivity and Termination provisions below) of the Definitive Agreement that makes the final Closing
impossible or impracticable, and there is no basis for any force majeure (which includes any event that is unforeseeable, unavoidable or the consequences whereof is insurmountable or
immaterial, including without limitation SEC requirements), the breaching party shall pay US$1.0 million to the other party (the "Penalty"). 

	
Exclusivity:
	
For a period starting on January 15, 2014 until the earlier of (i) (x) June 30, 2014, or (y) the time all parties agree in writing that they no
longer desire to pursue the Proposed Transaction, or (ii) execution of a Definitive Agreement (the "Exclusivity Period", which may be extended upon both parties' written
consent), the parties shall not engage in discussions with any third party regarding a merger, acquisition, equity financing, business combination or any similar transaction; provided however,
that Tinho or the Target shall be entitled to conduct equity financing during this period. Notwithstanding the foregoing, nothing shall preclude or restrict the directors of Zoom from considering

                                           7

	
   
	

or negotiating any Acquisition Proposal that may be a Superior Proposal or from considering, negotiating, approving, recommending to the Zoom shareholders or entering into an agreement
in respect of a Superior Proposal from any person if the directors of Zoom determine in good faith after consulting with outside counsel that such action is necessary or advisable for such
directors to act in a manner consistent with his or her fiduciary duties under applicable law.

For the purpose of this Letter of Intent, "Acquisition Proposal" means any inquiry or the making of any proposal or offer, or public announcement of an
intention to make a proposal or offer, to Zoom or its security holders from any person or group of persons "acting jointly or in concert" (within the meaning of the U.S. federal
securities laws) which constitutes, or may be reasonably expected to lead to (in either case whether in one transaction or a series of transactions):

(a) any take-over bid, issuer bid, amalgamation, plan of arrangement, business combination, merger, tender offer, exchange offer, consolidation, recapitalization,
reorganization, liquidation, dissolution or winding-up in respect of Zoom;

(b) any sale of assets (or any lease, long-term supply arrangement, license or other arrangement having the same economic effect as a sale) of Zoom or its
subsidiaries representing 20% or more of the consolidated assets, revenues or earnings of Zoom; and

(c) any sale or issuance of shares or other equity interests (or securities convertible into or exercisable for such shares or interests) in Zoom or any of its subsidiaries
representing 20% or more of the issued and outstanding equity or voting interests of Zoom.

For the purpose of this Letter of Intent, "Superior Proposal" means a bona fide Acquisition Proposal that is made in writing after the date hereof and that the
Zoom Board determines in good faith after consultation with its legal and financial advisors:

(a) is in compliance with applicable securities laws; 

(b) that funds or other consideration necessary for the consummation of such Acquisition Proposal are available to ensure that the third party will have the funds
necessary for the consummation of the Acquisition Proposal; 

(c) if consummated in accordance with its terms, would result in a transaction financially superior for Zoom and its security holders than the transaction contemplated
by this Letter of Intent; 

                                           8

	
   
	

(d) is reasonably capable of completion in accordance with its terms taking into account all legal, financial, regulatory and other aspects of such Acquisition Proposal;
and 

(e) that the taking of action in respect of such Acquisition Proposal is necessary for the Zoom Board in discharge of its fiduciary duties under applicable Laws.

If there is any action, suit or proceeding by or before any court or governmental or regulatory agency, authority or body or any arbitrator involving either of the  parties
or their respective directors or officers pending or threatened, parties shall discuss the termination of the Proposed Transaction.

In the event that Zoom's Board fails to approve the Proposed Transaction during the Exclusivity Period for any reasons other than (i) material breach of this Letter of
Intent or Definitive Agreement on the part of Tinho, (ii) Zoom's Board is not satisfied with its due diligence on Tinho, (iii) the Parties fail to reach a Definitive Agreement, or (iv) failure of any
closing conditions (which is beyond Zoom's control) set forth in the Letter of Intent or the Definitive Agreement, Zoom shall pay Tinho or an entity or person designated by Tinho a break-up
fee in the amount of US$2.0 million. 

In the event Tinho or Target fails to approve the Proposed Transaction during the Exclusivity Period for any reasons other than (i) material breach of this Letter of
Intent or Definitive Agreement on the part of Zoom, (ii) failure of any closing conditions (which is beyond Tinho or Target's control) set forth in the Letter of Intent or the Definitive Agreement,
(iii) Tinho or the Target is not satisfied with its due diligence on Zoom, or (iv) Zoom is no longer listed on the NasdaqCM and Zoom is deemed by NasdaqCM to be subject to NasdaqCM's
seasoning rules, Tinho and Target agree to pay Zoom a break-up fee in the amount of US$2.0 million.

 

	
Termination
	
This Letter of Intent shall terminate upon the earlier of (i)  the execution of the Definitive Agreement, or (ii) the end of Exclusivity Period. Except as otherwise expressly
stated in this Letter of Intent, upon such termination, the provisions of this Letter of Intent shall be of no further force or effect and no party shall have any liability to any other party hereunder,
except for breaches of this Letter of Intent that occurred prior to termination.

 

                                           9

	
Representations and Warranties:
	
In the Definitive Agreement, Zoom and Tinho will make customary representations and warranties relating to the business, financial condition, contracts, liabilities,
employees and prospects of Zoom (which shall survive the Closing).

	
Indemnification:
	
(i) Indemnification for both parties:

Before the termination of the Definitive Agreement, in addition to other indemnities expressly provided herein and in the Definitive Agreement, each party's sole
remedy is to rescind the Definitive Agreement. 

(ii) Insurance:

Any indemnification payments hereunder or under the Definitive Agreement shall be reduced by any insurance proceeds or other third party reimbursements actually
received by the party to whom such indemnification payments are due.

(iii) Survival of indemnification obligations:

The representations and warranties of Zoom and Tinho under the Definitive Agreement shall survive until the first anniversary of the Closing.

 

	
Confirmatory Due Diligence:
	
Upon acceptance of the Letter of Intent, both parties will cause their respective auditors to fully cooperate with the other party. Both parties and their employees,
officers, directors, advisors, legal counsel, accountants, agents and representatives (the "Zoom Representatives" and "Tinho Representatives") will
conduct due diligence, including, as necessary, visiting and inspecting all operational facilities and meeting with management.  The Zoom Representatives and Tinho Representatives will
extend their full cooperation and their respective representatives in connection with such investigation and will provide the other party's representatives with full access during normal business
hours to their books and records, facilities, accountants, management, officers, directors and key employees for the purpose of conducting such due diligence investigation.

                                           10

	
Transaction Costs:
	
Each Party shall be responsible for its own costs and expenses in negotiating the Proposed Transaction, preparing and negotiating the Definitive Documents and
preparing all required disclosure relating to such Party in connection with documents required to be filed with the SEC and other regulatory authorities in connection with the Proposed
Transaction. 

	
Governing Law & Jurisdiction:
	
State of New York

If there is a dispute, the parties shall first engage in a mediation, and if the dispute is still unresolved following such mediation, either party should have the right to
seek other means of resolution under the law of the State of New York.

	
Closing Date:
	
The date on which the Proposed Transaction closes shall be referred to herein as the "Closing". Both parties hope to close and complete the
acquisition by June 30, 2014 (estimate). However, failure to close the Proposed Transaction by June 30, 2014 in itself shall not effect a termination of the Proposed Transaction.  Both Zoom
and Tinho acknowledge that the Proposed Transaction will be subject to shareholder approval by Zoom's shareholders.

	
Confidentiality:
	
The parties to this Letter of Intent acknowledge and agree that the existence and terms of this Letter of Intent and the Proposed Transaction are strictly confidential
and further agree that they and their respective representatives, including without limitation, shareholders, directors, officers, employees or advisors, shall not disclose to the public or to any
third party the existence or terms of this Letter of Intent or the Proposed Transaction other than with the express prior written consent of the other party, except as may be required by
applicable law, rule or regulation, or at the request of any governmental, judicial, regulatory or supervisory authority having jurisdiction over a party or any of its representatives, control
persons or affiliates (including, without limitation, the rules or regulations of the SEC or FINRA), or as may be required to defend any action brought against such party in connection with the
Proposed Transaction.  If a party is so required to make such a disclosure, it must first provide to the other party the content of the proposed disclosure, the reasons that the disclosure is
required, and the time and place that the disclosure will be made.  In such event, the parties will work together to draft a disclosure that is acceptable to both parties. The parties acknowledge
and agree that the provisions of the Confidentiality Agreement dated November 27, 2013 by and between Zoom and Maxim Group LLC in conjunction with Maxim Group LLC's introduction of
Zoom and Tinho govern the parties under this Letter of Intent as if fully set forth herein.

                                           11

	
Publicity:

 
	
The Company shall file a Form 8-K (or similar form as required by the SEC) within four (4) business days following (i) the execution of this Letter of Intent; (ii) the
execution of the Definitive Agreement; and (iii) the Closing, including the Audited Financial Statements for the fiscal years ended December 31, 2013, 2012 and 2011. Further, the Company
may file a proxy statement on Schedule 14A, which is required to contain such Audited Financial Statements of Tinho, to obtain shareholder approval of the Proposed Transaction.

	
Notices:
	
All notices, requests, demands and other communications (collectively, "Notices") given pursuant to this Letter of Intent shall be in writing, and
shall be delivered by personal service, courier, facsimile transmission, electronic mail or by first class, registered or certified mail, postage prepaid, to the party at the address set forth herein.
Any Notice, other than a Notice sent by registered or certified mail or facsimile transmission, shall be effective when received; a Notice sent by registered or certified mail, postage prepaid
return receipt requested, shall be effective on the earlier of when received or the seventh day following deposit in the mails; a Notice sent by facsimile transmission shall be effective when
transmitted so long as the transmitting machine has provided electronic confirmation of such transmission.  Any party may from time to time change its address for further Notices hereunder
by giving notice to the other party in the manner prescribed in this paragraph.

   

   

                                           12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00225-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00225-of-00352.parquet"}]]