Document:

Exhibit
10.32

 

	
   

  	
  Contract No.: 53092100927

  

 

Fixed Assets Loan Agreement

 

 

Borrower
(Party A): OmniVision Technologies (Shanghai) Co., Ltd.

Address:
Room 402, Lane 887 No. 88, Zu Chong Zhi Road, Zhang Jiang, Pudong,
Shanghai

Legal Representative
: HE XINPING

 

Lender (Party B): Industrial and Commercial Bank of China
Ltd., Shanghai Pudong Development Zone Sub-Branch

Address: No. 1391 Jinqiao Road,
Pudong New District, Shanghai

Legal representative (responsible
person): WU YANFEN

 

 

Table of Contents

 

	
  Article I Representations and
  Warranties of Party A

  	
  1

  
	
   

  	
   

  
	
  Article II Type of the Loan

  	
  1

  
	
   

  	
   

  
	
  Article III Purpose of the Loan

  	
  1

  
	
   

  	
   

  
	
  Article IV The Amount and Term
  of the Loan

  	
  2

  
	
   

  	
   

  
	
  Article V The Interest Rate and
  Calculation of Interest

  	
  2

  
	
   

  	
   

  
	
  Article VI Conditions for
  Withdrawal

  	
  3

  
	
   

  	
   

  
	
  Article VII Schedule of
  Withdrawal

  	
  4

  
	
   

  	
   

  
	
  Article VIII Repayment Plan and
  Sources of Fund

  	
  5

  
	
   

  	
   

  
	
  Article IX The Security

  	
  6

  
	
   

  	
   

  
	
  Article X Rights and Obligations
  of the Parties

  	
  6

  
	
   

  	
   

  
	
  Article XI Liabilities

  	
  8

  
	
   

  	
   

  
	
  Article XII Formation, Amendment
  and Termination of the Contract

  	
  11

  
	
   

  	
   

  
	
  Article XIII Dispute Resolution

  	
  12

  
	
   

  	
   

  
	
  Article XIV Additional Covenants

  	
  12

  
	
   

  	
   

  
	
  Article XV Miscellaneous

  	
  13

  

 

 

For purposes stated in Article 3.1
of this contract, Party A has applied to Party B for a loan.  Party B has agreed to provide the loan to
Party A.  In order to set forth the
respective rights and obligations, pursuant to the Contract Law, the General
Provisions of Lending and other relevant laws and regulations, both parties,
after equal and friendly negotiation, have entered into this contract.

 

Article I

 

Representations
and Warranties of Party A

 

1.1 
It is a duly established entity of legal personality (or in case of a
branch, a duly authorized establishment by the legal entity), and has the full power
and capacity to perform this contract.

 

1.2 
The proposed construction project to which the Loan is to be used under
this contract has been approved by relevant government authorities.

 

1.3 
The financial statements and information submitted for the review,
evaluation and management of the Loan are true, accurate, and complete.

 

Article II

 

Type of
the Loan

 

2.1 
The Loan under this contract is fixed assets loan.

 

Article III

 

Purpose of
the Loan

 

3.1 
The purpose of the Loan under this contract shall be: for the
construction project of the “OmniVision Technologies Research Center” at Parcel
C-2-2 in the Central Block of Zhang Jiang.

 

3.2 
Without written consent of Party B, Party A may not change the use of
the proceeds of Loan provided in this contract.

 

1

 

Article IV

The Amount
and Term of the Loan

 

4.1 
The amount of the Loan under this contract is (in words): One Hundred
Forty Million RMB Yuan, or (in numbers), ¥140,000,000.00 (in case of
inconsistency between the text and numeric expressions of the amount, the text
expression shall prevail; the same below).

 

4.2 
The Term of the Loan under the contract shall be 81 months, from
September 8 , 2009 to June 30, 2016.

 

Article V

 

The
Interest Rate and Calculation of Interest

 

5.1 
The Interest of the Loan under this contract shall be calculated on the
basis of the actual number of days from the date of the actual withdrawal times
the daily interest rate (the daily interest rate = annual interest rate ÷ 360),
and paid quarterly.  The Interest
shall be paid on the 20th day of the last month every quarter and if
such date is a non-working day of the bank, on the next bank working day.  At the maturity of the Loan, the interests
shall be paid off along with the principal.

 

5.2 The interest rate under this
contract is determined in accordance with the method provided in the following 5.2.2:

 

5.2.1 The annual interest rate is fixed
at _____% and will not be reset during the terms of the contract; or

 

5.2.2 The interest rate under this
contract shall be the corresponding benchmark interest rate of the People’s
Bank of China, with adjustment downward 10% of that rate.  For each withdrawal/disbursement, the
interest rate will be determined separately and be reset once every period,
which period shall be one-year. 
For each withdrawal/disbursement of Loan, the interest rate for the
first period is decided by Party B based on the corresponding benchmark
interest rate of the People’s Bank of China on the date of the withdrawal/disbursement
and the adjustment agreed by both parties; the interest rate for the second and

 

2

 

subsequent periods shall be reset by
Party B in accordance with the corresponding benchmark interest rate of the
People’s Bank of China on the corresponding days of the date of
withdrawal/disbursement, taking into account the adjustment agreed by both
parties.  In the event a month in which
the interest rate is reset does not have a date corresponding to the date of
withdrawal/disbursement, then the last day of that month will be used instead
as the corresponding day.

 

The corresponding day of the
withdrawal/disbursement date means the day immediately after the end of each
period during which the specific loan amount is first actually
withdrawn/disbursed.  For instance, if
the loan is withdrawn/disbursed on May 9, then the corresponding day shall
be June 9 if the period is one month, August 9 if the period is a
quarter, November 9 if the period is half year, or May 9 of the next
year if the period is one year, and so on and so forth; or

 

5.2.3 
Other ways: none.

 

5.3 
In case the People’s Bank of China changes the interest rate or the
policy for deciding the interest rate, the interest rate will be changed according
to the relevant provisions of the People’s Bank of China. Party A will not
provide notice to Party B.

 

Article VI

 

Conditions
for Withdrawal

 

6.1 
Prior to each withdrawal, Party A shall meet the following conditions:

 

6.1.1 
the Mortgage Agreement is entered into and in full force and effect;

 

6.1.2 
the capital or other necessary funding for the project has been received
on schedule and in sufficient amount;

 

6.1.3 
the project is within the budget or if it overruns, funding is secured;

 

6.1.4 
the project is on schedule;

 

6.1.5 
paperwork for the withdrawal has been filled out and submitted to Party
B pursuant to the terms of the contract;

 

6.1.6 
there is no event of default under the contract;

 

6.1.7 
other loan related materials are submitted as requested by Party B.

 

3

 

Article VII

 

Schedule
of Withdrawal

 

7.1 
The Loan under this contract shall be drawn in accordance with the
method provided in Article 7.1.2 below : 

 

7.1.1 
Party A shall withdraw the Loan amount in one time, and deposit the same
in whole to the bank account maintained with Party B; or

 

7.1.2 
Party A shall withdraw the Loan amount in 5 times, according to
the following schedule:

 

7.1.2.1 September 15, 2009,
amount, in words, Forty Five Million RMB Yuan, or in numbers, ¥45,000,000;

 

7.1.2.2 November 15, 2009,
amount, in words, Twenty Million RMB Yuan, or in numbers, ¥20,000,000;

 

7.1.2.3 January 5, 2010,
amount, in words, Thirty Five Million RMB Yuan, or in numbers, ¥35,000,000;

 

7.1.2.4 March 1, 2010,
amount, in words, Thirty Million RMB Yuan, or in numbers, ¥30,000,000;

 

7.1.2.5 December 1, 2011,
amount, in words, Ten Million RMB Yuan, or in numbers, ¥10,000,000; or

 

7.1.3 
Other withdrawal methods : 

 

None.

 

7.2 
Party A shall withdraw the monies pursuant to provisions of
Article 7.1 of the contract; and if there are any special circumstances,
Party A shall submit written application to Party B, and after written consent
of Party B, may advance or delay the drawings by 5 days.

 

7.3  If Party A needs to cancel the withdrawals of
any remaining Loan amount in whole or in part, Party A shall submit a written
application to Party B 30 days in advance and may cancel only after obtaining
written consent of Party B.

 

7.4 
The withdrawal and repayment dates under this contract shall be the
dates actually recorded on the specific drawing or payment receipts as
acknowledged by both Party A and B. Such receipts or payment instruments shall
be an integral part of the contract, and other than the dates, in the event of
any inconsistency

 

4

 

between items on the receipts or
payment instruments and the provisions of this contract, the provisions of the
contract shall prevail.

 

Article VIII

 

Repayment
Plan and Sources of Fund

 

8.1 
The funds used by Party A to repay the Loan principal and interests
under the contract will come from, but not limited to:

 

8.1.1 
Cash return of this project ;

 

8.1.2 
Operating income and other legitimate cash incomes.

 

8.2 
Notwithstanding any provisions to the contrary for the sources of
repayment funding in other contracts to which Party A is a party, none of those
provision shall have any effect upon the repayment obligations of Party A under
this contract.  Under no circumstances
may Party A be excused by virtue of Article 8.1 from its repayment
obligations under the contract.

 

8.3 
Party A shall make interest payments on time and in full amount
according to the provisions of this contract, and shall pay back the principal according
to the following Article 8.3.2:

 

8.3.1 
in one full installment, by ______; or

 

8.3.2 
in several installments, the specific amounts and dates as follows:

 

8.3.2.1 
December 20, 2010, amount, in words, Five Million RMB
Yuan, or in number, ¥5,000,000.00;

 

8.3.2.2 
December 20, 2011, amount, in words, Five Million RMB
Yuan, or in number, ¥5,000,000.00;

 

8.3.2.3 
December 20, 2012, amount, in words, Ten Million RMB
Yuan, or in number, ¥10,000,000.00;

 

8.3.2.4 
December 20, 2013, amount, in words, Twenty Million
RMB Yuan, or in number, ¥20,000,000.00;

 

8.3.2.5 
December 20, 2014, amount, in words, Twenty Million
RMB Yuan, or in number, ¥20,000,000.00;

 

8.3.2.6 
December 20, 2015, amount, in words, Forty Million
RMB Yuan, or in number, ¥40,000,000.00;

 

8.3.2.7 
June 30, 2016, amount, in words, Forty Million RMB
Yuan, or in number, ¥40,000,000.00; or

 

5

 

8.3.3 in other ways:

 

None.

 

8.4 
Party A shall submit written application to Party B 30 days in advance and
obtain the written consent of Party B for the repayment ahead of schedule;

 

8.5 
Prior to any advance payment by Party A of the Loan, Party A shall
obtain consent of Party B, and such advance payments shall be not less than Ten
Million Yuan (in words), and shall be in a whole number of
multiple(s) of Ten Million Yuan (in words).

 

8.6 
Advance payment by Party A of the Loan shall be applied to the return
of principals set forth in Article 8.3.2 in a reverse order.

 

8.7 
Party A shall, prior to each of the interest or principal due date
provided in the contract, deposit sufficient amount to the account maintained
at Party B for the principal or interest dues, and authorize Party B to
withdraw from the account on the due date to pay for the interest or principal
dues.

 

Article IX

 

The
Security

 

9.1 
The security provided for the Loan under this contract shall be: mortgage.

 

9.2 
Party A is obliged to actively assist Party B and to secure Party B to
enter into with the guarantor a guarantee contract No. 53092100927201.

 

9.3 
If there is any change to the security adverse to interests of Party B
under this contract, upon notice and request of Party B, Party A shall provide
additional security to the satisfaction of Party B.

 

Article X

 

Rights and
Obligations of the Parties

 

10.1 
Rights and Obligations of Party A:

 

10.1.1 
to borrow and use the Loan in accordance with the term and the purpose
provided for in this contract;

 

10.1.2 
not to return the Loan in advance of schedule, without written consent
of Party B;

 

6

 

10.1.3 
to submit to Party B for its examination, inquiry and supervision the
use of Loan proceeds under this contract;

 

10.1.4 
to actively cooperate with Party B for its examination, inquiries and
supervision of the production and operation activities, the status of the
project construction and the financial situations, and to provide to Party B
all periodic profit and loss statements, balance sheets and other information;

 

10.1.5 
to actively support Party B for the investigation of the Loan-related
project in connection with the project reviews (planning, budgeting and
accounting), the tendering and bidding procedures and the project completion
inspection, as well as other related matters;

 

10.1.6 
to pay the principal and interests of the Loan under this contract in
accordance with the provisions of this contract;

 

10.1.7 
to pay for all relevant costs and expenses under this contract,
including but not limited to the notary, appraisal, evaluation, registration
fees, etc.;

 

10.1.8 
to receive and send back within 3 days a return receipt the collection
letter or documents sent or otherwise served by Party B;

 

10.1.9 
to notify Party B 30 days in advance and obtain written consent from
Party B in the event that Party A is to undertake any contract leasing,
transformation for joint-stock ownership, setup of joint venture, mergers or
acquisitions, joint operations, spinoffs, reduction in capital funding, changes
of ownership, transfer of substantial assets and other activities that may
affect the realization of Party B’s interests;

 

10.1.10 
to notify Party B within 7 days in the event of change of location,
mailing address, business scope, legal representative, or other industrial and
commercial registration;

 

10.1.11 
to notify Party B immediately upon occurrence of any event that threats
the operations of Party B or seriously affect its ability to perform the
repayment obligations under this contract, including but not limited to, major
economic dispute, bankruptcy or financial deterioration;

 

10.1.12 
to notify Party B within 5 days in the event of closure, dissolution, or
suspension of business or revocation or cancellation of business license; and
to ensure immediate payoff of all principals and interests of the Loan;

 

10.1.13 to pay for the attorney and
other fees in connection with the collection of debts by Party B under this
contract;

 

7

 

10.1.14
to disclose in time, in full and in accuracy the related-party relationship and
any related-party transactions.  For
purpose of this Article, the Related Party shall mean, pursuant to the
Accounting Standards for Business Enterprises — Disclosure of Related Party
Relationship and Related Party Transactions:

 

10.1.14.1
an enterprise that is directly or indirectly controlled by Party A, or directly
or indirectly controls Party A, or is under common control with Party A by
another enterprise;

 

10.1.14.2
an equity joint venture of Party A;

 

10.1.14.3
a cooperative joint venture of Party A;

 

10.1.14.4 any major individual
investors, key management personnel or their close family members of Party A;

 

10.1.14.5 an enterprise that is
directly controlled by the major individual investors, key management personnel
or their close family members of Party A.

 

Terms  not  otherwise  defined  herein  shall  have  the  same  meanings  as  those  in  the  Accounting  Standards  for  Business  Enterprises  –  Disclosure  of  Related  Party  Relationship  and  Related  Party  Transactions.

 

10.2 
Rights and Obligations of Party B:

 

10.2.1 
to request Party A to provide all the information relating to the Loan;

 

10.2.2 
to withdraw from Party A’s accounts under the provisions of this
contract or the laws to pay for the principals, interests, compound interests,
penalty interests and all other dues and payables owed by Party A under this
contract;

 

10.2.3 
to impose credit sanctions in case Party A avoids Party B’s
supervision, is in default on the principal and interest of the Loan, or is in
other material breach;

 

10.2.4 
to provide the Loan to Party A in full amount and on schedule under this
contract (unless the delay is caused by Party A);

 

10.2.5 
to maintain the secrecy of the information or status concerning the
debt, finance, production, business etc. of Party A, except otherwise provided
in this contract, or required by the laws and regulations.

 

Article XI

 

Liabilities

 

11.1 
After this contract takes effect, both parties shall perform and discharge

 

8

 

the obligations under the contract.
Either party shall be liable to the other party in accordance with the law for
non-performance or incomplete performance of the contract obligations.

 

11.2  If Party A fails to withdraw the Loan pursuant
to provisions of Article 7.1 of this contract, Party B is entitled to the
penalty interest based on the daily interest rate provided for in this
contract;

 

11.3 
If Party B fails to disburse the Loans pursuant to provisions of Article 7.1
of this contract, Party A is entitled to the penalty interest based on the
daily interest rate provided for in this contract.

 

11.4 
If, without written consent of Party B pursuant to Article 8.4
of this contract,  Party A returns the
Loan in advance of the schedule, Party B is entitled to the interests based on
the Terms of the Loan and interest rate provided for in this contract.

 

11.5 
If Party A fails to pay the principal and interests of the Loan when due
under the contract, Party B may request that it is paid off before a specified
deadline; Party A agrees and hereby authorizes Party B to withdraw from any
accounts Party A maintains with the Industrial and Commercial Bank of China and
all its branches to pay for the overdue amounts under the contract.  In addition, the overdue loan amount will be
subject to an additional penalty interest at a rate equal to 30% that of
the contractual interest rate; and the overdue interests will be subject to an
additional compound interest at a rate equal to 30% that of the
contractual interest rate.

 

If the monies withdrawn from the
accounts are in foreign currencies, the foreign exchange rate shall be the
purchase price of such currencies as published Party B as of the date on which
the withdrawal is made.

 

11.6 
If Party A fails to use the loan proceeds pursuant to purpose specified
in the contract, Party B is entitled to stop issuing the remaining Loan, to
request immediate repayment of the Loan in part or in whole, or to terminate
the contract.  In addition, Party B may
charge for the pertinent misused Loan amounts an additional penalty interest at
a rate equal to 50% that of the contractual interest rate; and for the
overdue interests thereof an additional compound interest at a rate equal to 50%
that of the contractual interest rate.

 

11.7 
If during the terms of the Loan, Party A fails to pay the interest on
time, the pertinent interests shall be subject to a compound interest at a rate
equal to

 

9

 

the contractual interest rate, and
after the principal becomes overdue, equal to the compound interest rate
according to Article 11.5 of the contract.

 

11.8 
If Party A is in default as provided in both Article 11.5 and 11.6,
Party B may choose to apply the more severe penalty of the two, but the two are
not cumulative.

 

11.9 
Upon occurrence of one of the following, Party A shall correct within
7 days after notice of Party B and take the remedial measures to the
satisfaction of Party B; otherwise, Party B shall have the right to stop or
cancel the rest of the Loans or to accelerate the Loans in part or in whole;
any amounts not paid shall be subject to the liquidated damages, according to
the daily interest rate:

 

11.9.1 
The balance sheets, profit and loss statements and other financial
information provided to Party B are false or miss material facts;

 

11.9.2 
Party A is uncooperative to or refuses the supervision of Party B
concerning the use of the Loans or on its production, business or financial
activities;

 

11.9.3 
Without consent of Party B, transfers or disposes of, or threats to
transfer or dispose of, its material assets;

 

11.9.4 
All or substantially all of its assets are in possession of creditors,
or are appointed trustees, receivers or similar custodians, or such properties
are seized or frozen, which may cause significant losses to Party B;

 

11.9.5 
Without consent of Party B, Party A undertakes contract leasing,
transformation for joint-stock ownership, setup of joint venture, mergers or
acquisitions, joint operations, spinoffs, reduction in capital funding, changes
in ownership, transfer of substantial assets and other activities that may
affect the Party B’s interests or threaten the realization of Party B’s credit
rights;

 

11.9.6 
There is a change of location, mailing address, business scope, legal
representative, or other industrial and commercial registration, or a major
investment, which may seriously affect or threaten the realization of Party B’s
credit rights;

 

11.9.7 
There is major economic dispute or financial deterioration that
seriously affects or threatens the realization of Party B’s credit rights;

 

11.9.8 Party A fails to disclose
information or one of the following occurs to Party A and its related parties,
which may have a negative impact on Party A to fulfill obligations under this
contract:

 

10

 

11.9.8.1 Financial deterioration of
Party A’s related parties;

 

11.9.8.2 Party A or its related parties
are subject to investigations or imposed penalties by the judicial authority or
by the tax, industrial and commercial administrative or other administrative
law enforcement agencies in accordance with the laws;

 

11.9.8.3 There is a change of control
in between Party A and its related parties;

 

11.9.8.4 Related parties of Party A are
involved in or likely to be involved in significant economic disputes,
litigation, arbitration;

 

11.9.8.5 The major individual investors
or key management personnel of Party A have abnormal changes in their personal
behavior, or become the suspects of criminal investigation by the judiciary in
accordance with the law, or are restricted personal freedom;

 

11.9.8.6 Other events of related
parties that may cause negative impact on Party A;

 

11.9.9 
Party A fails to pay the monies due and payable (including those
accelerated dues and payables), or is in breach or violation of other
obligations under any agreements or documents, which will impair its ability to
perform its obligations under this contract;

 

11.9.10 
Any other events that may threaten or cause serious losses to Party B’s
Loans under this contract.

 

Article XII

 

Formation, Amendment and Termination of the Contract

 

12.1 
This contract shall take effect upon the signatures or stamps by the legal
representatives (responsible persons) or their authorized agents of both
parties and affixation of the corporate official seals, and if there is
collateral, take effect after the collateral agreement is effective; this
contract shall expire on the date when all the principals, interests, compound
interests, penalties, liquidated damages and all other fees or payables are
fully paid off.

 

12.2 
Upon occurrence of one of the following circumstances, Party B shall
have the right to request Party A for immediate payment of the principal and
interest of the Loan and compensation for losses:

 

12.2.1 
Party A is subject to closure, dissolution, business suspension,
revocation 

 

11

 

of business license, or winding up;

 

12.2.2 
The collaterals are changed adversely affecting the credit rights of
Party B under this contract, and Party A fails to provide the necessary
additional security as required by Party B;

 

12.2.3 
Party A fails to repay the Loan on time or uses the Loan for purposes
not permitted in the contract, owes overdue interests, or has other material
breaches of this contract.

 

12.3 
If Party A requests a Loan extension, it shall submit a written
application to Party B 30 days prior to the expiration of this contract, along
with the written confirmation from the guarantor agreeing to continue to
provide the guarantee; the Loan may be extended after review and approval by
Party B and the extension agreement is executed.  The loan contract shall continue to be
performed by both parties before the extension agreement is executed.

 

12.4 
After this contract becomes effective, unless otherwise provided in this
contract, neither party may change or terminate the contract unilaterally; and
if the change or early termination is required, both parties shall consult with
each other and reach a written agreement. 
Prior to such written agreement, this contract shall continue to be
performed.

 

Article XIII

 

Dispute Resolution

 

13.1 
Any dispute between the parties in connection with the contract shall be
resolved first through consultation; and if such consultation fails, by means
as set forth in article 13.1.2 below:

 

13.1.1 
through arbitration at ________; or

 

13.1.2 
through litigation at the court where Party B is located.

 

Article XIV

 

Additional Covenants

 

14.1 Party A shall promptly notify Party B in case of any liability due to
its violation of the food safety, production safety, environmental protection
or other

 

12

 

related laws and regulations,
regulatory requirements or industry standards, which liability has caused or is
likely to cause material adverse effect upon the fulfillment of its obligations
under the contract; depending on the degree of impact of such incidents on
Party A’s credit conditions and ability to perform, Party B is entitled to take
one or more remedial actions as follows: to cancel the Loan not yet been
disbursed; to accelerate the Loan in part or in whole already disbursed; to
terminate the contract; or to take other measures as Party B deems necessary;

 

14.2 If the project runs over the
budget, the funding for the overruns is secured by Party A;

 

14.3 Party A shall have the
construction project insured, and designate Party B as the first beneficiary;

 

14.4 Party A shall have opened and
maintain special accounts with Party B, and submit to the supervision of the
professional firm to be designated by Party B;

 

14.5 Without the consent of Party B,
Party A may not obtain additional bank financing, or provide collaterals, under
the project;

 

14.6 If there is any sale under Party A’s
project, all the sales proceeds shall, after deduction of required taxes and
fees, be applied on a priority to repay the Loan to Party B;

 

14.7 The proceeds of the Loan from
Party B to Party A may not be used for the investment, such as in the stock
market or the futures market; Party A may not change the use of the Loan.

 

Article XV

 

Miscellaneous

 

15.1 
Any appendix, if any, attached to this contract is an integral part of
the contract, and shall have the same legal force and effect as with the
provisions of this contract; however, if there is any conflict with the
contract, the provisions of the contract shall prevail; and if there is any
conflict among the appendices, the one dated the latest shall prevail.

 

15.2 
During the performance of the contract, if any date for withdrawal or
repayment is a non-working day of the bank, then such date shall be postponed
to the next bank working day.

 

13

 

15.3 
The contract shall be executed in 5 original copies, one to be
held by each of Party A and B, and one to be submitted to the real estate
mortgage registration office, and the other two to be held by the relevant
parties; all such copies shall have the same legal force and effect.

 

 

	
  Party A (Company Seal) :

  	
  Party B (Company Seal) :

  
	
   

  	
   

  
	
   

  	
   

  
	
  Legal Representative :

  	
  Legal Representative (or Responsible
  Person) :

  
	
  (or Authorized Person)

  	
  (or Authorized Person)

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date: August 27, 2009

  	
  Date: August 27, 2009

  

 

14Exhibit
10.33

 

	
   

  	
  Agreement
  No. : 53092100927201

  

 

 

Mortgage Agreement

 

Important : This Agreement is entered
into by and between the parties in accordance with relevant laws and
regulations and based on equal and free negotiations, and all the provisions under
this Agreement represent true intention of both parties. In order to fully
protect the legal rights of mortgagor, mortgagee specifically urges the
mortgagor to carefully read the provisions in bolded fonts of this Agreement,
and consider the contents thereof thoroughly.

 

1

 

Mortgagee: Industrial
and Commercial Bank of China Limited, Shanghai Pudong Development Zone
Sub-Branch  (hereinafter “Party A”)

 

Principal : Yanfen Wu

 

Business Address : No. 1391, Jinqiao Road,
Pudong New Area, Shanghai

 

Tel & Fax : 68455836   58992264

 

Mortgagor: OmniVision
Technologies (Shanghai) Co., Ltd. (hereinafter “Party B”)

 

Legal Representative : HE XINPING

 

Business
Address or Domicile :  Room 402, No. 88,
Lane 887, Zuchongzhi Road, Shanghai

 

Tel &
Fax: 61055132 61055101

 

To
secure the creditor’s rights of Party A, Party B is willing to provide a
mortgage guaranty (counter-guaranty) to Party A. For the purpose of specifying
both parties’ respective rights and obligations, and in accordance with the
Contract Law, the Guarantee Law, the Property Law and other relevant laws and
regulations, Party A and Party B hereby enter into this Agreement after equal
consultation.

 

2

 

Article I    The Master Creditor’s Right Guarantied

 

Article 1.1  The master
creditor’s right guaranteed by Party B shall be the creditor’s right that Party
A is entitled to under Item A below (hereinafter “Master Agreement”)
entered into with OmniVision Technologies (Shanghai)
Co., Ltd. (hereinafter the “Debtor”):

 

A.  Fixed Assets Loan Agreement (No.: 53092100927
)

B.  Bank Acceptance Agreement (No.:           )

C.  Guarantee Issuance Agreement (No.:          )

D.  Letter of Credit Issuance Agreement
(No.:          )

E.

 

Article 1.2  The amount and
term of the master creditor’s right shall be subject to the provisions of the
Master Agreement.

 

Article II   
The Scope of the Mortgage Guaranty

 

The scope of Party B’s mortgage guaranty shall include:
the principal  of the master
creditor’s right, its interests, penalty interests, compound interests,
liquidated damages, compensatory payments, and all expenses incurred in connection with the
realization of the mortgage claims (including but not limited to litigation
costs, attorney fees, appraisal fees, etc.).

 

Article III   
The Mortgaged Properties

 

Article 3.1  Details of the
mortgaged properties are set forth in the “List

 

3

 

of
Mortgaged Properties” attached hereto, which shall have the same legal force as
this Agreement.

 

Article 3.2  The effect of
Party A’s mortgage claims shall extend to the accessory items, accessory
rights, supplementary items, annexed items, and natural and legal proceeds of
the mortgaged properties, subrogation of the mortgaged properties, and the
insurance proceeds, indemnification, or compensation derived as a result of
damage, loss or expropriation of the mortgaged properties.

 

Article 3.3  If the Debtor
defaults on debt payments, or if the mortgage is foreclosed under this
Agreement, and that the mortgaged properties are sequestered by the People’s
Court, then as of the date of sequestration, Party A shall be entitled to
collect the natural and legal proceeds derived from the mortgaged properties, and
such collection shall first be used to offset the expenses of collecting the
same.

 

Article 3.4  Any provisions
about the value of mortgaged properties in the “List of Mortgaged Properties”
shall not be used as a basis for valuation by Party A in the disposition of the
mortgaged properties, nor shall those provisions constitute any restrictions
upon Party A in the exercise of its right to the mortgage.

 

Article 3.5  The ownership certificates of the mortgaged
properties and relevant materials shall be kept by Party A after confirmation
by both Party A and Party B, unless otherwise stipulated by laws and
regulations.

 

Article 3.6  During the period of mortgage, Party B shall
keep the mortgaged properties in good condition, and shall not use the
mortgaged properties in any unreasonable manner so as to cause the value to
decrease. Party A shall have the right to inspect the usage and management of
the mortgaged properties at any time.

 

Article 3.7  In the event the mortgaged properties are
damaged, lost or expropriated, Party B shall immediately inform Party A, and
timely

 

4

 

provide
to Party A the proof of damage, loss or expropriation issued by relevant
competent authorities or authorized departments.

 

Article 3.8  In the event the
mortgaged properties are damaged, lost or expropriated, the insurance proceeds,
indemnification or compensation received by Party B shall be used to pay in
advance the master creditor’s rights, or at the consent of Party A, to restore
the value of the mortgaged properties, or to be deposited into the bank account
designated by Party A, to guarantee the fulfillment of the debt under the
Master Agreement. The remaining portion of the mortgaged properties, which
value is not decreased, shall remain the guaranty for the master creditor’s
rights.

 

Article 3.9  In the event
Party B’s action is likely to decrease the value of the mortgaged properties,
Party B shall immediately cease any such act. If the value of the mortgaged
properties has decreased, Party B shall restore the value of the mortgaged
properties, or provide additional guaranties equal to the amount of decrease.

 

Article IV   
Mortgage Registration

 

Within
ten days of execution of this Agreement, Party A and Party B shall register the
mortgage with relevant mortgage registration authorities. If there is any
change to the mortgage and amended registration is required by law, both
parties shall timely file the amendment registration.

 

Article V   
Insurance

 

Article 5.1  Within fifteen days of execution of this
Agreement, as

 

5

 

requested
by Party A, Party B shall have in place appropriate insurance coverage for the
mortgaged properties. If the mortgaged properties cannot be fully insured
immediately due to the reasons of the insurance agency, Party B shall timely
apply for new insurance coverage to prevent any interruption of coverage during
the term of this Agreement.

 

Article 5.2  Party B shall
designate Party A as the first beneficiary of insured events in the insurance
policy, and insurer shall pay the insurance proceeds directly to Party A. The
insurance policy may not have any provision restricting Party A’s rights and
interests.

 

Article 5.3  During the term of this Agreement, Party B
shall not for any reason interrupt or cancel the insurance coverage; in case of
such interruption, Party A shall have the right to procure insurance on behalf
of Party B, at Party B’s expenses.

 

Article 5.4  During the term
of this Agreement, in case of occurrence of any insured event to the mortgaged
properties, the insurance proceeds shall be processed in accordance with Article 3.8
hereof.

 

Article VI   
Chattel Mortgage

 

Article 6.1  In the event that
Party B uses its current and future manufacturing equipment, raw materials,
work-in-progress inventory, or finished goods as collateral, then such
collateral shall be determined upon occurrence of any of the following events:

 

6

 

A.  Party A’s right as creditor is not realized
at the maturity of the debt;

 

B.  Party B is declared bankrupt or
its business is suspended;

 

C.  The mortgage is foreclosed pursuant to
provisions of Article 7.1;

 

D.  There occurs other situation that materially
affects realization of the rights of Party A as a creditor.

 

Article 6.2  In the event that
Party B uses the above-mentioned properties as collateral to provide guaranty
to Party A, provisions of this and other Articles of this Agreement shall
apply.

 

Article VII   
Foreclosure of the Mortgage

 

Article 7.1  Party A is
entitled to foreclose the mortgage in case of any of the following
circumstances:

 

A.  The Debtor fails to pay off the debt upon
maturity of the master creditor’s right (including accelerated maturity);

 

B.  In case of the circumstances as set forth in Article 3.9,
Party B fails to restore the value of the mortgaged properties, or to
provide additional guaranties equal to the amount of decrease;

 

C.  Party B or the Debtor is
petitioned for bankruptcy or closes the business, dissolves, liquidates, is
suspended for restructuring, or when the business license is voided or revoked;

 

D.  Party B fails to comply with fair dealing
principles in the course of its business, and disposes of the chattels that
have been put as

 

7

 

collateral;

 

E.  Other circumstances as stipulated by laws and
regulations where Party A may realize its right to the mortgage.

 

Article 7.2  In the event Party A forecloses the mortgage,
it may, through negotiation with Party B, be paid out of the proceeds from the
auction or sale of the mortgaged properties, or keep the mortgaged properties
to offset the debt owed by the Debtor. If Party A and Party B fail to reach an
agreement on the manner of mortgage settlement, Party A may directly petition
to the People’s Court to have the mortgaged properties auctioned off or sold.

 

Article 7.3  When the proceeds
from the disposal of the mortgaged properties are in a different currency from
that specified in the Master Agreement, such proceeds shall be converted into
the currency as denominated in the Master Agreement for repayment to Party A,
using the applicable exchange rate as published by Party A.

 

Article VIII   
Representations and Warranties of Party B

 

Party
B hereby makes the following representations and warranties to Party A:

 

Article 8.1  Party B is the owner or state-authorized
manager of the mortgaged properties, and has full power and right to dispose of
the mortgaged properties. The mortgaged properties are free and clear of
disputes concerning the ownership, right of use or operation and management
rights. The mortgage guaranty to Party A has been duly authorized or approved
in accordance with relevant procedures and authorities under the corporate bylaws,
and not against the laws and regulations and other relevant provisions.

 

8

 

Article 8.2  If Party B is a listed company or a
subsidiary of a listed company, it promises to fulfill its obligation to timely
disclose the information regarding the mortgage guaranty pursuant to the
Securities Law, the Stock Exchange Share Listing Rules and other relevant
laws, regulations and rules.

 

Article 8.3  Party B fully
understands the purposes of the loan under the Master Agreement, and
voluntarily provides the mortgage guaranty, and all representations made under
this Agreement are true and genuine.

 

Article 8.4  The mortgage of
the properties under this Agreement is lawful and not subject to any other
restrictions.

 

Article 8.5  Party B has fully
disclosed the defects of the mortgaged properties under this Agreement, and
provided reasonable explanations to Party A.

 

Article 8.6  The mortgaged
properties are not subject to any sequestration, seizure or held in custody
under the law.

 

Article 8.7  If the mortgaged
properties are leased in part or in whole, Party B has informed the lessee of
the mortgage, and informed Party A in writing of the relevant leasing status.

 

Article 8.8  There are no other
liens on the mortgaged properties for other creditors, or if such lien exists,
Party B has informed Party A in writing.

 

Article 8.9  The mortgaged
properties are not jointly owned, or if jointly owned, Party B has obtained
written consent from the joint owner(s) for the mortgage.

 

Article IX   
Undertaking of Party B

 

Party
B hereby makes the following undertakings to Party A:

 

9

 

Article 9.1  In any of the following
situations, Party B agrees to remain responsible for its guaranty obligations
under this Agreement, with no need to obtain its consent:

 

A.  Party A agrees with the Debtor to amend the
Master Agreement, without increasing the burden or obligations on the Debtor;

 

B.  The amount of the master creditor’s right is
changed due to floating interest rate adopted by the Master Agreement, or due
to interest rate policy adjustment made by People’s Bank of China;

 

C.  Party A assigns the master creditor’s right
and the mortgage.

 

Article 9.2  Without Party A’s written
consent, Party B undertakes to not create further mortgage or pledge in any
manner on the mortgaged properties, nor to lease, transfer or give away the
mortgaged properties to any third party, and Party B shall protect the
mortgaged properties from any damage.

 

Article 9.3  Party B agrees to bear all the
expenses in connection with the execution and performance of this Agreement,
including but not limited to insurance, authentication, appraisal, registration
and other relevant fees.

 

Article 9.4  In case Party A’s right to the
mortgage is harmed or likely to be harmed by any third party, Party B commits
to timely notify Party A and assist Party A in avoiding such harm.

 

Article 9.5  Party B agrees to actively
cooperate with Party A in the mortgage foreclosure, and not create any obstacle
for Party A in its exercise of mortgage right.

 

Article 9.6
Party B agrees to timely notify Party A in the event of any of the
following:

 

A.  changes to corporate bylaws, business scope,
registered capital, legal representative or equity interest;

 

B.  business closure, dissolution, liquidation,
closing down for

 

10

 

restructuring, business license
being cancelled, being revoked, or filed for bankruptcy;

 

C.  involvement or possible involvement of
material economic dispute, litigation, arbitration, or when its properties are
sequestered, seized or held in custody according
to laws;

 

D.
 where Party B is a natural person,
changes to the place of domicile, working place, contact information, etc.

 

Article 9.7  Party B agrees to timely accept
the written notice sent by Party A.

 

Article 9.8  Where there is (are) other
guaranty(ies) on Party A’s master creditor’s right, no matter whether such
guaranty is provided by the Debtor or a third party, Party A is entitled to
determine in its sole discretion the sequence of guaranty realization, and
Party B undertakes to not dispute such determination. Waiver, modification or
forfeiture of Party A’s rights and interests to the other guaranty(ies) under
the Master Agreement does not void or diminish Party B’s obligations of the
mortgage guaranty.

 

Article X  
Undertaking of Party A

 

Party A hereby makes the
following undertakings to Party B:

 

Article 10.1  Party A agrees to maintain in
confidence the confidential information in the documents, financial and other
relevant materials furnished by Party B in performing its obligations under
this Agreement, unless otherwise stipulated by laws, regulations and rules;

 

Article 10.2  If, after the debts
covered by the mortgage guaranty are paid off, there is still a balance of the
proceeds from the disposition of the mortgaged properties, the balance will be
returned to Party B in a timely

 

11

 

manner.

 

Article XI   
Default

 

Article 11.1  After the this Agreement is
effective, failure of either party to perform any of its obligations under this
Agreement, or breach of any representation, warranty and undertaking under this
Agreement, shall constitute a default. The defaulting party shall compensate
the other party for the damages caused thereto.

 

Article 11.2  Except as otherwise provided in this
Agreement, if either party is in default, the other party shall have the right
to take any measure afforded by laws, regulations and rules of the People’s
Republic of China.

 

Article XII   
Effect, Amendment and Cancellation

 

Article 12.1  This Agreement shall take effect upon
execution, and terminate when the debts owed to Party A under the Master
Agreement are fully paid off.

 

Article 12.2
 Any amendment to this Agreement
shall be made in writing upon consensus of both Party A and Party B. The
amended provisions or covenants shall constitute a part of this Agreement, and
have the same legal force as this Agreement. Except for the parts amended, the
remaining parts of this Agreement shall continue to be effective, and the
original provisions of this Agreement shall remain valid until the amended
parts take effect.

 

Article 12.3  Invalidity or unenforceability
of any provision of this

 

12

 

Agreement shall not affect the
validity and enforceability of other provisions of this Agreement, nor shall
affect the effectiveness of the entire agreement.

 

Article 12.4  The amendment and cancellation
of this Agreement shall not affect each party’s right to claim for damages. The
cancellation of this Agreement shall not affect the validity of relevant
dispute resolution provisions under this Agreement.

 

Article XIII 
Dispute Resolution

 

The execution, validity,
interpretation, performance and dispute resolution of this Agreement shall be
governed by the laws of the People’s Republic of China. All disputes arising
out of or related to this Agreement shall be resolved through negotiation
between the parties. Where the negotiation fails, such disputes shall be
settled according to Item B below:

 

A.  Through arbitration, at the _______
Arbitration Commission according to the arbitration rules of such
commission effective at the time of the arbitration petition. The arbitration
shall be conducted at _______ (arbitration place), and the arbitration award
shall be final and binding upon the both parties.

 

B.  Through litigation at the People’s Court
where Party A is located.

 

13

 

Article XIV   
Miscellaneous

 

Article 14.1  Without Party A’s written
consent, Party B shall not transfer in whole or in part its rights or
obligations under this Agreement.

 

Article 14.2
Non-exercise, partial or tardy exercise by Party A of any right under
this Agreement shall not constitute its waiver or modification of such right or
any other right, nor impair its ability to further exercise such right or any
other right.

 

Article 14.3  Party A shall have the right to
provide the information of this Agreement and other pertinent information in
accordance with the relevant laws and regulations or other regulatory documents
or as required by financial regulators to the credit information database at
the People’s Bank of China, or to other credit database legally set up, to be
available for inquiries and uses by appropriately qualified agencies or
individuals. For the purpose of executing and performing this Agreement, Party
A shall also be entitled to check Party B’s relevant information via the credit
information database at the People’s Bank of China and via other credit
database legally set up.

 

Article 14.4  This Agreement shall be made in
six originals. Party A, Party B and other parties involved shall
hold one copy each, all copies of which shall have the same legal force.

 

Article XV   
Other Matters Agreed by Both Parties

 

Article 15.1  Both parties hereby confirm that the mortgaged
properties under this Agreement are the land use right and the project under
construction, instead of chattel mortgage. Therefore, all the provisions under Article VI
“Chattel Mortgage” and the provision regarding chattel mortgage in Article 7.1
(D) under Article VII “Foreclosure of the Mortgage” are not
applicable to this Agreement. In addition, there is no

 

14

 

other guaranty on the master creditor’s right under
this Agreement other than this mortgage, and therefore, Article 9.8 under Article IX
“Undertaking of Party B” is not applicable to this Agreement.

 

Article 15.2  The parties agree that the Loan under the Master Agreement may only be used
for the development and construction of the land located at Local 61/1,
Xinsheng Village, Zhang Jiang Town (No. 88 Shang Ke Road, Zhang Jiang).

 

Article 15.3  The Bank (i.e., Party A of this Agreement) shall exercise control and
management over the use of the Loan.

 

Article 15.4  The costs of the Land that have been paid off (inclusive of payments for
the land-use right purchase, the relocation and municipal preliminary
infrastructure development, and land compensation fees) are RMB 28,944,102.32 Yuan.

 

Article 15.5  The costs of the project are RMB 111,991,669 Yuan.

 

Article 15.6  The value of the Mortgage
Property is at least 25% of the cost of the project under construction.

 

Appendix: List of Mortgaged Properties

 

15

 

Party A : Industrial and Commercial Bank of China
Limited, Shanghai Pudong Development Zone Sub-Branch (Official Seal)

 

 

Authorized Representative : Wu Yanfen (personal stamp)   (Signature/Seal)

 

(Industrial and Commercial Bank of China Limited,
Shanghai Pudong Development Zone Sub-Branch) (Seal Affixed)

 

Party B : OmniVision Technologies (Shanghai)
Co., Ltd. (Official
Seal)

 

 

Legal Representative (Authorized Agent) :  He
Xinping  (personal stamp) (Signature/Seal)

 

(OmniVision Technologies (Shanghai) Co., Ltd.) (Seal
Affixed)

 

 

Date: August 27, 2009

 

16

 

Appendix to the Mortgage
Agreement numbered 53092100927201:

 

List of Mortgaged Properties

 

	
  Certificate

  	
   

  	
  Hu Real Estate Pu
  No. (2009) 049568

  
	
  Location

  	
   

  	
  Local 61/1, Xinsheng Village,
  Zhang Jiang (No. 88 Shang Ke Road, Zhang Jiang, Pudong New District)

  

 

	
  Building

  Number

  	
   

  	
  Unit and Location

  	
   

  	
  Type

  	
   

  	
  Structure

  	
   

  	
  Floor

  	
   

  	
  Purpose

  	
   

  	
  Construction

  Area (m2)

  	
   

  	
  Underground

  Area

  	
   

  	
  Remarks

  
	
  #1

  	
   

  	
  Whole Building

  	
   

  	
  Industrial

  	
   

  	
  Reinforce Concrete

  	
   

  	
  8/1

  	
   

  	
  Factory

  	
   

  	
  45681.61

  	
   

  	
   

  	
   

  	
  Building #1

  
	
  #2

  	
   

  	
  Whole Building

  	
   

  	
  Industrial

  	
   

  	
  Reinforce Concrete

  	
   

  	
  5

  	
   

  	
  Factory

  	
   

  	
  5606.22

  	
   

  	
   

  	
   

  	
  Building #2

  
	
  #3

  	
   

  	
  Whole Building

  	
   

  	
  Industrial

  	
   

  	
  Reinforce Concrete

  	
   

  	
  1

  	
   

  	
  Factory

  	
   

  	
  423.76

  	
   

  	
   

  	
   

  	
  Power facility room

  
	
  Total Construction Area:  51711.59 m2

  	
   

  	
  Total Land Area: 

  	
   

  	
  Value of the Real Property
  Rights: 140 Million Yuan

  

 

	
  Mortgagor:

  	
  Mortgagee:

  
	
  OmniVision Technologies
  (Shanghai) Co., Ltd. (seal added)

  	
  Industrial and Commercial
  Bank of China Ltd., Shanghai Pudong Development Zone Sub-Branch (seal added)

  
	
   

  	
   

  
	
  Principal: He Xinping (personal stamp)

  	
  Principal: Wu Yanfen (personal stamp)

  
	
   

  	
   

  
	
  Date:
                    
       2009

  	
   

  

 

17

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