Document:

Amended and Restated 2005 Share Incentive Plan, dated December 11,2008

 EXHIBIT 4.13 
 VIMICRO INTERNATIONAL CORPORATION 
 2005 SHARE INCENTIVE PLAN, 
 AS AMENDED AND RESTATED ON DECEMBER 11, 2008 
 ARTICLE 1 
 PURPOSE 
 The purpose of the Vimicro International Corporation 2005 Share Incentive Plan (the “Plan”) is to promote the success and enhance the value of Vimicro International Corporation, an exempted company
formed under the laws of the Cayman Islands (the “Company”) by linking the personal interests of the members of the Board, Employees, and Consultants to those of Company shareholders and by providing such individuals with an
incentive for outstanding performance to generate superior returns to Company shareholders. The Plan is further intended to provide flexibility to the Company in its ability to motivate, attract, and retain the services of members of the Board,
Employees, and Consultants upon whose judgment, interest, and special effort the successful conduct of the Company’s operation is largely dependent. 
 ARTICLE 2 
 DEFINITIONS AND CONSTRUCTION 
 Wherever the following terms are used in the Plan they shall have the meanings specified below, unless the context clearly indicates otherwise. The
singular pronoun shall include the plural where the context so indicates. 
 2.1 “Applicable Laws” means the legal
requirements relating to the Plan and the Awards under applicable provisions of the corporate and securities laws of the Cayman Islands, the Code, the PRC tax laws, rules, regulations and government orders, the rules of any applicable Share exchange
or national market system, and the laws and the rules of any jurisdiction applicable to Awards granted to residents therein. 
 2.2
“Award” means an Option, a Restricted Share award, a Share Appreciation Right award, a Dividend Equivalents award, a Share Payment award, a Deferred Share award, or a Restricted Share Unit award granted to a Participant pursuant to
the Plan. 
 2.3 “Award Agreement” means any written agreement, contract, or other instrument or document evidencing an
Award, including through electronic medium. 
 2.4 “Board” means the Board of Directors of the Company. 
 2.5 “Board Adoption Date” shall have the meaning set forth in Section 12.1. 

 2.6 “Change in Control” means a change in ownership or control of the Company after the
Registration Date effected through either of the following transactions: 
 (a) the direct or indirect acquisition by any person or related
group of persons (other than an acquisition from or by the Company or by a Company-sponsored employee benefit plan or by a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) of beneficial
ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities pursuant to a tender or exchange offer
made directly to the Company’s shareholders which a majority of the Incumbent Board (as defined below) who are not affiliates or associates of the offeror under Rule 12b-2 promulgated under the Exchange Act do not recommend such
shareholders accept, or 
 (b) the individuals who, as of the Effective Date, are members of the Board (the “Incumbent Board”),
cease for any reason to constitute at least fifty percent (50%) of the Board; provided that if the election, or nomination for election by the Company’s shareholders, of any new member of the Board is approved by a vote of at least fifty
percent (50%) of the Incumbent Board, such new member of the Board shall be considered as a member of the Incumbent Board. 
 2.7
“Code” means the Internal Revenue Code of 1986 of the United States, as amended. 
 2.8 “Committee” means
the committee of the Board described in Article 11. 
 2.9 “Consultant” means any consultant or adviser if: (a) the
consultant or adviser renders bona fide services to a Service Recipient; (b) the services rendered by the consultant or adviser are not in connection with the offer or sale of securities in a capital-raising transaction and do not directly or
indirectly promote or maintain a market for the Company’s securities; and (c) the consultant or adviser is a natural person who has contracted directly with the Service Recipient to render such services. 
 2.10 “Corporate Transaction” means any of the following transactions, provided, however, that the Committee shall determine under
(d) and (e) whether multiple transactions are related, and its determination shall be final, binding and conclusive: 
 (a) an
amalgamation, arrangement or consolidation in which the Company is not the surviving entity, except for a transaction the principal purpose of which is to change the jurisdiction in which the Company is incorporated; 
 (b) the sale, transfer or other disposition of all or substantially all of the assets of the Company; 
 (c) the complete liquidation or dissolution of the Company; 
 (d) any reverse takeover or series of related transactions culminating in a reverse takeover (including, but not limited to, a tender offer followed by a reverse takeover) in which the Company is the surviving entity
but (A) the Ordinary Shares outstanding 

 
immediately prior to such takeover are converted or exchanged by virtue of the takeover into other property, whether in the form of securities, cash or
otherwise, or (B) in which securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities are transferred to a person or persons different from those who held such
securities immediately prior to such takeover or the initial transaction culminating in such takeover, but excluding any such transaction or series of related transactions that the Committee determines shall not be a Corporate Transaction; or

 (e) acquisition in a single or series of related transactions by any person or related group of persons (other than the Company or by a
Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding
securities but excluding any such transaction or series of related transactions that the Committee determines shall not be a Corporate Transaction. 
 2.11 “Deferred Share” means a right to receive a specified number of Shares during specified time periods pursuant to Article 8. 
 2.12 “Disability” means that the Participant qualifies to receive long-term disability payments under the Service Recipient’s long-term disability insurance program, as it may be amended from
time to time, to which the Participant provides services regardless of whether the Participant is covered by such policy. If the Service Recipient to which the Participant provides service does not have a long-term disability plan in place,
“Disability” means that a Participant is unable to carry out the responsibilities and functions of the position held by the Participant by reason of any medically determinable physical or mental impairment for a period of not less than
ninety (90) consecutive days. A Participant will not be considered to have incurred a Disability unless he or she furnishes proof of such impairment sufficient to satisfy the Committee in its discretion. 
 2.13 “Dividend Equivalents” means a right granted to a Participant pursuant to Article 8 to receive the equivalent value (in cash or
Share) of dividends paid on Share. 
 2.14 “Effective Date” shall have the meaning set forth in Section 12.1.

 2.15 “Employee” means any person, including an officer or member of the Board of the Company, any Parent or Subsidiary of
the Company, who is in the employ of a Service Recipient, subject to the control and direction of the Service Recipient as to both the work to be performed and the manner and method of performance. The payment of a director’s fee by a Service
Recipient shall not be sufficient to constitute “employment” by the Service Recipient. 
 2.16 “Exchange Act”
means the Securities Exchange Act of 1934 of the United States, as amended. 

 2.17 “Fair Market Value” means, as of any date, the value of Shares determined as
follows: 
 (a) If the Shares are listed on one or more established Share exchanges or national market systems, including without limitation,
The Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Share Market, its Fair Market Value shall be the closing sales price for such shares (or the closing bid, if no sales were reported) as quoted on the principal exchange or system
on which the Shares are listed (as determined by the Committee) on the date of determination (or, if no closing sales price or closing bid was reported on that date, as applicable, on the last trading date such closing sales price or closing bid was
reported), as reported in The Wall Street Journal or such other source as the Committee deems reliable; 
 (b) If the Shares are regularly
quoted on an automated quotation system (including the OTC Bulletin Board) or by a recognized securities dealer, its Fair Market Value shall be the closing sales price for such shares as quoted on such system or by such securities dealer on the date
of determination, but if selling prices are not reported, the Fair Market Value of an Ordinary Share shall be the mean between the high bid and low asked prices for the Ordinary Shares on the date of determination (or, if no such prices were
reported on that date, on the last date such prices were reported), as reported in The Wall Street Journal or such other source as the Committee deems reliable; or 
 (c) In the absence of an established market for the Shares of the type described in (i) and (ii), above, the Fair Market Value thereof shall be determined by the Committee in good faith by reference to the
placing price of the latest private placement of the Shares and the development of the Company’s business operations and the general economic and market conditions since such latest private placement. 
 2.18 “Incentive Share Option” means an Option that is intended to meet the requirements of Section 422 of the Code or any successor
provision thereto. 
 2.19 “Independent Director” means a member of the Board who is not an Employee of the Company.

 2.20 “Non-Employee Director” means a member of the Board who qualifies as a “Non-Employee Director” as defined
in Rule 16b-3(b)(3) of the Exchange Act, or any successor definition adopted by the Board. 
 2.21 “Non-Qualified Share
Option” means an Option that is not intended to be an Incentive Share Option. 
 2.22 “Option” means a right
granted to a Participant pursuant to Article 5 of the Plan to purchase a specified number of Shares at a specified price during specified time periods. An Option may be either an Incentive Share Option or a Non-Qualified Share Option. 
 2.23 “Participant” means a person who, as a member of the Board, Consultant or Employee, has been granted an Award pursuant to the Plan.

 2.24 “Parent” means a parent corporation under Section 424(e) of the Code.

 2.25 “Plan” means this Vimicro International Corporation 2005 Share Incentive Plan, as amended from time to time.

 2.26 “PRC” means the People’s Republic of China 
 2.27 “Related Entity” means any business, corporation, partnership, limited liability company or other entity which is not a Subsidiary
but is consolidated in the Company’s consolidated financial statements prepared under the United States generally accepted accounting principles. 
 2.28 “Restricted Share” means a Share awarded to a Participant pursuant to Article 6 that is subject to certain restrictions and may be subject to risk of forfeiture. 
 2.29 “Restricted Share Unit” means an Award granted pursuant to Section 8.6. 
 2.30 “Securities Act” means the Securities Act of 1933 of the United States, as amended. 
 2.31 “Service Recipient” means the Company, any Parent or Subsidiary of the Company and any Related Entity to which a Participant
provides services as an Employee, Consultant or as a Director. 
 2.32 “Share” means the ordinary share of the Company, par
value $0.001 per share, and such other securities that may be substituted for Shares pursuant to Article 10. 
 2.33 “Share
Appreciation Right” or “SAR” means a right granted pursuant to Article 7 to receive a payment equal to the excess of the Fair Market Value of a specified number of Shares on the date the SAR is exercised over the Fair
Market Value on the date the SAR was granted as set forth in the applicable Award Agreement. 
 2.34 “Share Payment” means
(a) a payment in the form of Shares, or (b) an option or other right to purchase Shares, as part of any bonus, deferred compensation or other arrangement, made in lieu of all or any portion of the compensation, granted pursuant to
Article 8. 
 2.35 “Subsidiary” means any corporation or other entity of which a majority of the outstanding voting
shares or voting power is beneficially owned directly or indirectly by the Company. 
 2.36 “Trading Date” means the closing
of the first sale to the general public of the Shares pursuant to a registration statement filed with and declared effective by the U.S. Securities and Exchange Commission under the Securities Act. 

 ARTICLE 3 
 SHARES SUBJECT TO THE PLAN 
 3.1 Number of Shares. 
 (a) Subject to the provisions of Article 10 and Section 3.1(b), the maximum aggregate number of Shares which may be issued pursuant to all Awards
(including Incentive Share Options) is 31,065,505 Shares. 
 (b) To the extent that an Award terminates, expires, or lapses for any reason,
any Shares subject to the Award shall again be available for the grant of an Award pursuant to the Plan. To the extent permitted by Applicable Law or any exchange rule, Shares issued in assumption of, or in substitution for, any outstanding awards
of any entity acquired in any form or combination by the Company or any Parent or Subsidiary of the Company shall not be counted against Shares available for grant pursuant to the Plan. Shares delivered by the Participant or withheld by the Company
upon the exercise of any Award under the Plan, in payment of the exercise price thereof or tax withholding thereon, may again be optioned, granted or awarded hereunder, subject to the limitations of Section 3.1(a), If any Restricted Shares are
forfeited by the Participant or repurchased by the Company, such Shares may again be optioned, granted or awarded hereunder, subject to the limitations of Section 3.1(a). Notwithstanding the provisions of this Section 3.1(b), no Shares may
again be optioned, granted or awarded if such action would cause an Incentive Share Option to fail to qualify as an incentive Share option under Section 422 of the Code. 
 3.2 Shares Distributed. Any Shares distributed pursuant to an Award may consist, in whole or in part, of authorized and unissued Shares, treasury
or Shares purchased on the open market. Additionally, in the discretion of the Committee, American Depository Shares in an amount equal to the number of Shares which otherwise would be distributed pursuant to an Award may be distributed in lieu of
Shares in settlement of any Award. If the number of Shares represented by an American Depository Share is other than on a one-to-one basis, the limitations of Section 3.1 shall be adjusted to reflect the distribution of American Depository
Shares in lieu of Shares. 
 ARTICLE 4 
 ELIGIBILITY AND PARTICIPATION 
 4.1 Eligibility. Persons eligible to participate in this Plan
include Employees, Consultants, and all members of the Board, as determined by the Committee. 
 4.2 Participation. Subject to the
provisions of the Plan, the Committee may, from time to time, select from among all eligible individuals, those to whom Awards shall be granted and shall determine the nature and amount of each Award. No individual shall have any right to be granted
an Award pursuant to this Plan. 

 4.3 Jurisdictions. In order to assure the viability of Awards granted to Participants employed in
various jurisdictions, the Committee may provide for such special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy, or custom applicable in the jurisdiction in which the Participant resides or is
employed. Moreover, the Committee may approve such supplements to, or amendments, restatements, or alternative versions of, the Plan as it may consider necessary or appropriate for such purposes without thereby affecting the terms of the Plan as in
effect for any other purpose; provided, however, that no such supplements, amendments, restatements, or alternative versions shall increase the share limitations contained in Section 3.1 of the Plan. Notwithstanding the foregoing, the
Committee may not take any actions hereunder, and no Awards shall be granted, that would violate any Applicable Laws. 
 ARTICLE 5 

 OPTIONS 
 5.1
General. The Committee is authorized to grant Options to Participants on the following terms and conditions: 
 (a) Exercise
Price. The exercise price per Share subject to an Option shall be determined by the Committee and set forth in the Award Agreement which may be a fixed or variable price related to the Fair Market Value of the Shares. The exercise price per
Share subject to an Option may be amended or adjusted in the absolute discretion of the Committee, the determination of which shall be final, binding and conclusive. For the avoidance of doubt, to the extent not prohibited by Applicable Law or any
exchange rule, a repricing of Options mentioned in the preceding sentence shall be effective without the approval of the Company’s shareholders or the approval of the Participants. Notwithstanding the foregoing, the exercise price per Share
subject to an Option shall not be increased without the approval of the Participants. 
 (b) Time and Conditions of Exercise. The
Committee shall determine the time or times at which an Option may be exercised in whole or in part, including exercise prior to vesting; provided that the term of any Option granted under the Plan shall not exceed ten years, except as
provided in Section 11.2. The Committee shall also determine any conditions, if any, that must be satisfied before all or part of an Option may be exercised. 
 (c) Payment. The Committee shall determine the methods by which the exercise price of an Option may be paid, the form of payment, including, without limitation (i) cash or check denominated in U.S.
Dollars, (ii) Shares held for such period of time as may be required by the Committee in order to avoid adverse financial accounting consequences and having a Fair Market Value on the date of delivery equal to the aggregate exercise price of
the Option or exercised portion thereof, (iii) after the Trading Date the delivery of a notice that the Participant has placed a market sell order with a broker with respect to Shares then issuable upon exercise 

 
of the Option, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the Option
exercise price; provided that payment of such proceeds is then made to the Company upon settlement of such sale), and the methods by which Shares shall be delivered or deemed to be delivered to Participants, (iv) other property
acceptable to the Committee with a Fair Market Value equal to the exercise price, or (v) any combination of the foregoing. Notwithstanding any other provision of the Plan to the contrary, no Participant who is a member of the Board or an
“executive officer” of the Company within the meaning of Section 13(k) of the Exchange Act shall be permitted to pay the exercise price of an Option in any method which would violate Section 13(k) of the Exchange Act. 

(d) Evidence of Grant. All Options shall be evidenced by an Award Agreement between the Company and the Participant. The Award Agreement shall
include such additional provisions as may be specified by the Committee. 
 5.2 Incentive Share Options. Incentive Share Options shall
be granted only to Employees of the Company, a Parent or Subsidiary of the Company. Incentive Share Options may not be granted to Employees of a Related Entity. The terms of any Incentive Share Options granted pursuant to the Plan, in addition to
the requirements of Section 5.1, must comply with the following additional provisions of this Section 5.2: 
 (a) Expiration of
Option. An Incentive Share Option may not be exercised to any extent by anyone after the first to occur of the following events: 
 (i)
Ten years from the date it is granted, unless an earlier time is set in the Award Agreement; 
 (ii) One month after the Participant’s
termination of employment as an Employee; and 
 (iii) One year after the date of the Participant’s termination of employment or
service on account of Disability or death. Upon the Participant’s Disability or death, any Incentive Share Options exercisable at the Participant’s Disability or death may be exercised by the Participant’s legal representative or
representatives, by the person or persons entitled to do so pursuant to the Participant’s last will and testament, or, if the Participant fails to make testamentary disposition of such Incentive Share Option or dies intestate, by the person or
persons entitled to receive the Incentive Share Option pursuant to the applicable laws of descent and distribution. 
 (b) Individual
Dollar Limitation. The aggregate Fair Market Value (determined as of the time the Option is granted) of all Shares with respect to which Incentive Share Options are first exercisable by a Participant in any calendar year may not exceed $100,000
or such other limitation as imposed by Section 422(d) of the Code, or any successor provision. To the extent that Incentive Share Options are first exercisable by a Participant in excess of such limitation, the excess shall be considered
Non-Qualified Share Options. 

 (c) Ten Percent Owners. An Incentive Share Option shall be granted to any individual who, at the
date of grant, owns Shares possessing more than ten percent of the total combined voting power of all classes of shares of the Company only if such Option is granted at a price that is not less than 110% of Fair Market Value on the date of grant and
the Option is exercisable for no more than five years from the date of grant. 
 (d) Transfer Restriction. The Participant shall give
the Company prompt notice of any disposition of Shares acquired by exercise of an Incentive Share Option within (i) two years from the date of grant of such Incentive Share Option or (ii) one year after the transfer of such Shares to the
Participant. 
 (e) Expiration of Incentive Share Options. No Award of an Incentive Share Option may be made pursuant to this Plan
after the tenth anniversary of the Effective Date. 
 (f) Right to Exercise. During a Participant’s lifetime, an Incentive Share
Option may be exercised only by the Participant. 
 5.3 Substitution of Share Appreciation Rights. The Committee may provide in the
Award Agreement evidencing the grant of an Option that the Committee, in its sole discretion, shall have to right to substitute a Share Appreciation Right for such Option at any time prior to or upon exercise of such Option, provided that such Share
Appreciation Right shall be exercisable for the same number of shares of Share as such substituted Option would have been exercisable for. 
 ARTICLE 6 
 RESTRICTED SHARES 
 6.1 Grant of Restricted Shares. The Committee is authorized to make Awards of Restricted Shares to any Participant selected by the Committee in such amounts and subject to such terms and conditions as
determined by the Committee. All Awards of Restricted Shares shall be evidenced by an Award Agreement. 
 6.2 Issuance and
Restrictions. Restricted Shares shall be subject to such restrictions on transferability and other restrictions as the Committee may impose (including, without limitation, limitations on the right to vote Restricted Shares or the right to
receive dividends on the Restricted Share). These restrictions may lapse separately or in combination at such times, pursuant to such circumstances, in such installments, or otherwise, as the Committee determines at the time of the grant of the
Award or thereafter. 
 6.3 Forfeiture. Except as otherwise determined by the Committee at the time of the grant of the Award or
thereafter, upon termination of employment or service during the applicable restriction period, Restricted Shares that are at that time subject to 

 
restrictions shall be forfeited; provided, however , that the Committee may (a) provide in any Restricted Share Award Agreement that restrictions
or forfeiture conditions relating to Restricted Shares will be waived in whole or in part in the event of terminations resulting from specified causes, and (b) in other cases waive in whole or in part restrictions or forfeiture conditions
relating to Restricted Shares. 
 6.4 Certificates for Restricted Shares. Restricted Shares granted pursuant to the Plan may be
evidenced in such manner as the Committee shall determine. If certificates representing Restricted Shares are registered in the name of the Participant, certificates must bear an appropriate legend referring to the terms, conditions, and
restrictions applicable to such Restricted Shares, and the Company may, at its discretion, retain physical possession of the certificate until such time as all applicable restrictions lapse. 
 ARTICLE 7 
 SHARE APPRECIATION RIGHTS 
 7.1 Grant of Share Appreciation Rights. 
 (a) A Share Appreciation Right may be granted to any Participant selected by the Committee. A Share Appreciation Right shall be subject to such terms and conditions not inconsistent with the Plan as the Committee shall impose and shall be
evidenced by an Award Agreement. 
 (b) A Share Appreciation Right shall entitle the Participant (or other person entitled to exercise the
Share Appreciation Right pursuant to the Plan) to exercise all or a specified portion of the Share Appreciation Right (to the extent then exercisable pursuant to its terms) and to receive from the Company an amount determined by multiplying the
difference obtained by subtracting the exercise price per share of the Share Appreciation Right from the Fair Market Value of a Share on the date of exercise of the Share Appreciation Right by the number of Shares with respect to which the Share
Appreciation Right shall have been exercised, subject to any limitations the Committee may impose. 
 7.2 Payment and Limitations on
Exercise. 
 (a) Payment of the amounts determined under Section 7.1(b) above shall be in cash, in Shares (based on its Fair Market
Value as of the date the Share Appreciation Right is exercised) or a combination of both, as determined by the Committee in the Award Agreement. 
 (b) To the extent payment for a Share Appreciation Right is to be made in cash the Award Agreements shall to the extent necessary to comply with the requirements to Section 409A of the Code, specify the date of payment which may be
different than the date of exercise of the Share Appreciation right. If the date of payment for a Share Appreciation Right is later than the date of exercise, the Award Agreement may specify that the Participant be entitled to earnings on such
amount until paid. 

 (c) To the extent any payment under Section 7.1(b) is effected in Shares it shall be made subject to
satisfaction of all provisions of Article 5 above pertaining to Options. 
 ARTICLE 8 
 OTHER TYPES OF AWARDS 
 8.1
Dividend Equivalents. Any Participant selected by the Committee may be granted Dividend Equivalents based on the dividends declared on the Shares that are subject to any Award, to be credited as of dividend payment dates, during the period
between the date the Award is granted and the date the Award is exercised, vests or expires, as determined by the Committee. Such Dividend Equivalents shall be converted to cash or additional Shares by such formula and at such time and subject to
such limitations as may be determined by the Committee. 
 8.2 Share Payments. Any Participant selected by the Committee may receive
Share Payments in the manner determined from time to time by the Committee; provided, that unless otherwise determined by the Committee such Share Payments shall be made in lieu of base salary, bonus, or other cash compensation otherwise
payable to such Participant. The number of shares shall be determined by the Committee and may be based upon the Performance Criteria or other specific criteria determined appropriate by the Committee, determined on the date such Share Payment is
made or on any date thereafter. 
 8.3 Deferred Shares. Any Participant selected by the Committee may be granted an award of Deferred
Shares in the manner determined from time to time by the Committee. The number of shares of Deferred Shares shall be determined by the Committee and may be linked to such specific criteria determined to be appropriate by the Committee, in each case
on a specified date or dates or over any period or periods determined by the Committee. Shares underlying a Deferred Share award will not be issued until the Deferred Share award has vested, pursuant to a vesting schedule or criteria set by the
Committee. Unless otherwise provided by the Committee, a Participant awarded Deferred Shares shall have no rights as a Company shareholder with respect to such Deferred Shares until such time as the Deferred Share Award has vested and the Shares
underlying the Deferred Share Award has been issued. 
 8.4 Restricted Share Units. The Committee is authorized to make Awards of
Restricted Share Units to any Participant selected by the Committee in such amounts and subject to such terms and conditions as determined by the Committee. At the time of grant, the Committee shall specify the date or dates on which the Restricted
Share Units shall become fully vested and nonforfeitable, and may specify such conditions to vesting as it deems appropriate. At the time of grant, the Committee shall specify the maturity date applicable to each grant of Restricted Share Units
which shall be no earlier than the vesting date or dates of the Award and may be determined at the election of the grantee. On the maturity date, the Company shall transfer to the Participant one unrestricted, fully 

 
transferable Share for each Restricted Share Unit scheduled to be paid out on such date and not previously forfeited. The Committee shall specify the
purchase price, if any, to be paid by the grantee to the Company for such Shares. 
 8.5 Term. Except as otherwise provided herein,
the term of any Award of Dividend Equivalents, Share Payments, Deferred Share, or Restricted Share Units shall be set by the Committee in its discretion. 
 8.6 Exercise or Purchase Price. The Committee may establish the exercise or purchase price, if any, of any Award of Deferred Share, Share Payments or Restricted Share Units; provided, however, that such
price shall not be less than the par value of a Share, unless otherwise permitted by Applicable Law. 
 8.7 Exercise Upon Termination of
Employment or Service. An Award of Dividend Equivalents, Deferred Share, Share Payments, and Restricted Share Units shall only be exercisable or payable while the Participant is an Employee, Consultant or a member of the Board, as applicable;
provided, however, that the Committee in its sole and absolute discretion may provide that an Award of Dividend Equivalents, Share Payments, Deferred Share, or Restricted Share Units may be exercised or paid subsequent to a termination of
employment or service, as applicable, or following a Change of Control of the Company, or because of the Participant’s retirement, death or Disability, or otherwise. 
 8.8 Form of Payment. Payments with respect to any Awards granted under this Article 8 shall be made in cash, in Shares or a combination of both, as determined by the Committee. 
 8.9 Award Agreement. All Awards under this Article 8 shall be subject to such additional terms and conditions as determined by the Committee and
shall be evidenced by an Award Agreement. 
 ARTICLE 9 
 PROVISIONS APPLICABLE TO AWARDS 
 9.1 Stand-Alone and Tandem Awards. Awards granted pursuant
to the Plan may, in the discretion of the Committee, be granted either alone, in addition to, or in tandem with, any other Award granted pursuant to the Plan. Awards granted in addition to or in tandem with other Awards may be granted either at the
same time as or at a different time from the grant of such other Awards. 
 9.2 Award Agreement. Awards under the Plan shall be
evidenced by Award Agreements that set forth the terms, conditions and limitations for each Award which may include the term of an Award, the provisions applicable in the event the Participant’s employment or service terminates, and the
Company’s authority to unilaterally or bilaterally amend, modify, suspend, cancel or rescind an Award. 

 9.3 Limits on Transfer. No right or interest of a Participant in any Award may be pledged,
encumbered, or hypothecated to or in favor of any party other than the Company or a Subsidiary, or shall be subject to any lien, obligation, or liability of such Participant to any other party other than the Company or a Subsidiary. Except as
otherwise provided by the Committee, no Award shall be assigned, transferred, or otherwise disposed of by a Participant other than by will or the laws of descent and distribution. The Committee by express provision in the Award or an amendment
thereto may permit an Award (other than an Incentive Share Option) to be transferred to, exercised by and paid to certain persons or entities related to the Participant, including but not limited to members of the Participant’s family,
charitable institutions, or trusts or other entities whose beneficiaries or beneficial owners are members of the Participant’s family and/or charitable institutions, or to such other persons or entities as may be expressly approved by the
Committee, pursuant to such conditions and procedures as the Committee may establish. Any permitted transfer shall be subject to the condition that the Committee receive evidence satisfactory to it that the transfer is being made for estate and/or
tax planning purposes (or to a “blind trust” in connection with the Participant’s termination of employment or service with the Company or a Subsidiary to assume a position with a governmental, charitable, educational or similar
non-profit institution) and on a basis consistent with the Company’s lawful issue of securities. 
 9.4 Beneficiaries.
Notwithstanding Section 10.3, a Participant may, in the manner determined by the Committee, designate a beneficiary to exercise the rights of the Participant and to receive any distribution with respect to any Award upon the Participant’s
death. A beneficiary, legal guardian, legal representative, or other person claiming any rights pursuant to the Plan is subject to all terms and conditions of the Plan and any Award Agreement applicable to the Participant, except to the extent the
Plan and Award Agreement otherwise provide, and to any additional restrictions deemed necessary or appropriate by the Committee. If the Participant is married and resides in a community property state, a designation of a person other than the
Participant’s spouse as his or her beneficiary with respect to more than 50% of the Participant’s interest in the Award shall not be effective without the prior written consent of the Participant’s spouse. If no beneficiary has been
designated or survives the Participant, payment shall be made to the person entitled thereto pursuant to the Participant’s will or the laws of descent and distribution. Subject to the foregoing, a beneficiary designation may be changed or
revoked by a Participant at any time provided the change or revocation is filed with the Committee. 
 9.5 Share Certificates.
Notwithstanding anything herein to the contrary, the Company shall not be required to issue or deliver any certificates evidencing shares of Share pursuant to the exercise of any Award, unless and until the Board has determined, with advice of
counsel, that the issuance and delivery of such certificates is in compliance with all Applicable Laws, regulations of governmental authorities and, if applicable, the requirements of any exchange on which the Shares are listed or traded. All Share
certificates delivered pursuant to the Plan are subject to any stop-transfer orders and other restrictions as the Committee deems 

 
necessary or advisable to comply with federal, state, or foreign jurisdiction, securities or other laws, rules and regulations and the rules of any national
securities exchange or automated quotation system on which the Shares are listed, quoted, or traded. The Committee may place legends on any Share certificate to reference restrictions applicable to the Share. In addition to the terms and conditions
provided herein, the Board may require that a Participant make such reasonable covenants, agreements, and representations as the Board, in its discretion, deems advisable in order to comply with any such laws, regulations, or requirements. The
Committee shall have the right to require any Participant to comply with any timing or other restrictions with respect to the settlement or exercise of any Award, including a window-period limitation, as may be imposed in the discretion of the
Committee. 
 9.6 Paperless Administration. Subject to Applicable Laws, the Committee may make Awards, provide applicable disclosure
and procedures for exercise of Awards by an internet website or interactive voice response system for the paperless administration of Awards. 
 9.7 Foreign Currency. A Participant may be required to provide evidence that any U.S. dollars used to pay the exercise price of any Award were acquired and taken out of the jurisdiction in which the Participant resides in accordance
with Applicable Laws, including foreign exchange control laws and regulations. 
 ARTICLE 10 
 CHANGES IN CAPITAL STRUCTURE 
 10.1
Adjustments. In the event of any dividend, share split, combination or exchange of Shares, amalgamation, arrangement or consolidation, spin-off, recapitalization or other distribution (other than normal cash dividends) of Company assets to
its shareholders, or any other change affecting the shares of Shares or the share price of a Share, the Committee shall make such proportionate adjustments, if any, as the Committee in its discretion may deem appropriate to reflect such change with
respect to (a) the aggregate number and type of shares that may be issued under the Plan (including, but not limited to, adjustments of the limitations in Section 3.1); (b) the terms and conditions of any outstanding Awards
(including, without limitation, any applicable performance targets or criteria with respect thereto); and (c) the grant or exercise price per share for any outstanding Awards under the Plan. 
 10.2 Acceleration upon a Change of Control. Except as may otherwise be provided in any Award Agreement or any other written agreement entered into
by and between the Company and a Participant, if a Change of Control occurs and a Participant’s Options, Restricted Share or Share Appreciation Rights settled in Shares are not converted, assumed, or replaced by a successor, such Awards shall
become fully exercisable and all forfeiture restrictions on such Awards shall lapse; and provided such Change of Control is a change in the ownership or effective control of the Company or in the ownership of or a substantial portion of the assets

 
of the Company within the meaning of Section 409A of the Code, then all Restricted Share Units, Deferred Share and Performance Share shall become
deliverable upon the Change of Control. Upon, or in anticipation of, a Change of Control, the Committee may in its sole discretion provide for (i) any and all Awards outstanding hereunder to terminate at a specific time in the future and shall
give each Participant the right to exercise such Awards during a period of time as the Committee shall determine, (ii) either the purchase of any Award for an amount of cash equal to the amount that could have been attained upon the exercise of
such Award or realization of the Participant’s rights had such Award been currently exercisable or payable or fully vested (and, for the avoidance of doubt, if as of such date the Committee determines in good faith that no amount would have
been attained upon the exercise of such Award or realization of the Participant’s rights, then such Award may be terminated by the Company without payment), (iii) the replacement of such Award with other rights or property selected by the
Committee in its sole discretion the assumption of or substitution of such Award by the successor or surviving corporation, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of Shares and prices, or
(iv) provide for payment of Awards in cash based on the value of Shares on the date of the Change of Control plus reasonable interest on the Award through the date such Award would otherwise be vested or have been paid in accordance with its
original terms, if necessary to comply with Section 409A of the Code. 
 10.3 Outstanding Awards – Corporate Transactions.
In the event of a Corporate Transaction, each Award will terminate upon the consummation of the Corporate Transaction, unless the Award is assumed by the successor entity or Parent thereof in connection with the Corporate Transaction. Except as
provided otherwise in an individual Award Agreement, in the event of a Corporate Transaction and: 
 (a) the Award either is (x) assumed
by the successor entity or Parent thereof or replaced with a comparable Award (as determined by the Committee) with respect to shares of the capital stock of the successor entity or Parent thereof or (y) replaced with a cash incentive program
of the successor entity which preserves the compensation element of such Award existing at the time of the Corporate Transaction and provides for subsequent payout in accordance with the same vesting schedule applicable to such Award, then such
Award (if assumed), the replacement Award (if replaced), or the cash incentive program automatically shall become fully vested, exercisable and payable and be released from any restrictions on transfer (other than transfer restrictions applicable to
Options) and repurchase or forfeiture rights, immediately upon termination of the Participant’s employment or service with all Service Recipient within twelve (12) months of the Corporate Transaction without cause; and (b) For each
Award that is neither assumed nor replaced, such portion of the Award shall automatically become fully vested and exercisable and be released from any repurchase or forfeiture rights (other than repurchase rights exercisable at Fair Market Value)
for all of the Shares at the time represented by such portion of the Award, immediately prior to the specified effective date of such Corporate Transaction, provided that the Participant remains an Employee, Consultant or Director on the effective
date of the Corporate Transaction. 

 10.4 Outstanding Awards – Other Changes. In the event of any other change in the
capitalization of the Company or corporate change other than those specifically referred to in this Article 10, the Committee may, in its absolute discretion, make such adjustments in the number and class of shares subject to Awards outstanding on
the date on which such change occurs and in the per share grant or exercise price of each Award as the Committee may consider appropriate to prevent dilution or enlargement of rights. 
 10.5 No Other Rights. Except as expressly provided in the Plan, no Participant shall have any rights by reason of any subdivision or consolidation
of Shares of any class, the payment of any dividend, any increase or decrease in the number of shares of any class or any dissolution, liquidation, merger, or consolidation of the Company or any other corporation. Except as expressly provided in the
Plan or pursuant to action of the Committee under the Plan, no issuance by the Company of shares of any class, or securities convertible into shares of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the
number of shares subject to an Award or the grant or exercise price of any Award. 
 ARTICLE 11 
 ADMINISTRATION 
 11.1
Committee. The Plan shall be administered by the Compensation Committee of the Board; provided, however that the Compensation Committee may delegate to a committee the authority to grant or amend Awards to Participants other than
Independent Directors and executive officers of the Company (such committee being the “Committee”). The Committee shall consist of two or more individuals who are officers and/or directors of the Company. Reference to the Committee shall
refer to the Board if the Compensation Committee ceases to exist and the Board does not appoint a successor Committee. Notwithstanding the foregoing, the full Board, acting by majority of its members in office shall conduct the general
administration of the Plan if required by Applicable Law, and with respect to Awards granted to Independent Directors and executive officers of the Company and for purposes of such Awards the term “Committee” as used in the Plan shall be
deemed to refer to the Board. 
 11.2 Action by the Committee. A majority of the Committee shall constitute a quorum. The acts of a
majority of the members present at any meeting at which a quorum is present, and acts approved in writing by a majority of the Committee in lieu of a meeting, shall be deemed the acts of the Committee. Each member of the Committee is entitled to, in
good faith, rely or act upon any report or other information furnished to that member by any officer or other employee of the Company or any Subsidiary, the Company’s independent certified public accountants, or any executive compensation
consultant or other professional retained by the Company to assist in the administration of the Plan. 

 11.3 Authority of Committee. Subject to any specific designation in the Plan, the Committee has
the exclusive power, authority and discretion to: 
 (a) Designate Participants to receive Awards; 
 (b) Determine the type or types of Awards to be granted to each Participant; 
 (c) Determine the number of Awards to be granted and the number of Shares to which an Award will relate; 
 (d) Determine the terms and conditions of any Award granted pursuant to the Plan, including, but not limited to, the exercise price, grant price, or
purchase price, any restrictions or limitations on the Award, any schedule for lapse of forfeiture restrictions or restrictions on the exercisability of an Award, and accelerations or waivers thereof, any provisions related to non-competition and
recapture of gain on an Award, based in each case on such considerations as the Committee in its sole discretion determines; 
 (e) Determine
whether, to what extent, and pursuant to what circumstances an Award may be settled in, or the exercise price of an Award may be paid in, cash, Shares, other Awards, or other property, or an Award may be canceled, forfeited, or surrendered;

 (f) Prescribe the form of each Award Agreement, which need not be identical for each Participant; 
 (g) Decide all other matters that must be determined in connection with an Award; 
 (h) Establish, adopt, or revise any rules and regulations as it may deem necessary or advisable to administer the Plan; 
 (i) Interpret the terms of, and any matter arising pursuant to, the Plan or any Award Agreement; 
 (j) Amend or adjust the exercise price per Share subject to an Option; and 
 (k) Make all other decisions and determinations that may be required pursuant to the Plan or as the Committee deems necessary or advisable to administer the Plan. 
 11.4 Decisions Binding. The Committee’s interpretation of the Plan, any Awards granted pursuant to the Plan, any Award Agreement and all
decisions and determinations by the Committee with respect to the Plan are final, binding, and conclusive on all parties. 

 ARTICLE 12 
 EFFECTIVE AND EXPIRATION DATE 
 12.1 Effective Date. The Plan is effective as of the date the
Plan is approved by the Company’s shareholders (the “Effective Date”). The Plan will be deemed to be approved by the shareholders if it receives the affirmative vote of the holders of a majority of the share capital of the
Company present or represented and entitled to vote at a meeting duly held in accordance with the applicable provisions of the Company’s Memorandum of Association and Articles of Association. Notwithstanding the foregoing, the Effective Date
shall not be later than the first anniversary of the date on which the Board adopts the Plan (the “Board Adoption Date”). Between the Board Adoption Date and the Effective Date, the Committee may grant Options to any persons pursuant to
the terms of the Plan, provided that none of such persons shall be allowed to exercise the Options prior to the Effective Date. 
 12.2
Expiration Date. The Plan will expire on, and no Award may be granted pursuant to the Plan after, the tenth anniversary of the Effective Date. Any Awards that are outstanding on the tenth anniversary of the Effective Date shall remain in
force according to the terms of the Plan and the applicable Award Agreement. 
 ARTICLE 13 
 AMENDMENT, MODIFICATION, AND TERMINATION 
 13.1 Amendment, Modification, And Termination. With the approval of the Board, at any time and from time to time, the Committee may terminate, amend or modify the Plan; provided, however, that (a) to the extent necessary
and desirable to comply with any applicable law, regulation, or stock exchange rule, the Company shall obtain shareholder approval of any Plan amendment in such a manner and to such a degree as required, and (b) shareholder approval is required
for any amendment to the Plan that (i) increases the number of Shares available under the Plan (other than any adjustment as provided by Article 10), (ii) permits the Committee to grant Options with an exercise price that is below Fair
Market Value on the date of grant, (iii) permits the Committee to extend the exercise period for an Option beyond ten years from the date of grant, or (iv) results in a material increase in benefits or a change in eligibility requirements.

 13.2 Awards Previously Granted. Except with respect to amendments made pursuant to Section 14.14, no termination, amendment,
or modification of the Plan shall adversely affect in any material way any Award previously granted pursuant to the Plan without the prior written consent of the Participant. 

 ARTICLE 14 
 GENERAL PROVISIONS 
 14.1 No Rights to Awards. No Participant, employee, or other person shall
have any claim to be granted any Award pursuant to the Plan, and neither the Company nor the Committee is obligated to treat Participants, employees, and other persons uniformly. 
 14.2 No Shareholders Rights. No Award gives the Participant any of the rights of a Shareholder of the Company unless and until Shares are in fact
issued to such person in connection with such Award. 
 14.3 Taxes. No Shares shall be delivered under the Plan to any Participant
until such Participant has made arrangements acceptable to the Committee for the satisfaction of any income and employment tax withholding obligations under Applicable Laws, including without limitation the PRC tax laws, rules, regulations and
government orders or the U.S. Federal, state or local tax laws, as applicable. The Company or any Subsidiary shall have the authority and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to
satisfy federal, state, local and foreign taxes (including the Participant’s payroll tax obligations) required by law to be withheld with respect to any taxable event concerning a Participant arising as a result of this Plan. The Committee may
in its discretion and in satisfaction of the foregoing requirement allow a Participant to elect to have the Company withhold Shares otherwise issuable under an Award (or allow the return of Shares) having a Fair Market Value equal to the sums
required to be withheld. Notwithstanding any other provision of the Plan, the number of Shares which may be withheld with respect to the issuance, vesting, exercise or payment of any Award (or which may be repurchased from the Participant of such
Award after such Shares were acquired by the Participant from the Company) in order to satisfy the Participant’s federal, state, local and foreign income and payroll tax liabilities with respect to the issuance, vesting, exercise or payment of
the Award shall, unless specifically approved by the Committee, be limited to the number of Shares which have a Fair Market Value on the date of withholding or repurchase equal to the aggregate amount of such liabilities based on the minimum
statutory withholding rates for federal, state, local and foreign income tax and payroll tax purposes that are applicable to such supplemental taxable income. 
 14.4 No Right to Employment or Services. Nothing in the Plan or any Award Agreement shall interfere with or limit in any way the right of the Service Recipient to terminate any Participant’s employment or
services at any time, nor confer upon any Participant any right to continue in the employ or service of any Service Recipient. 
 14.5
Unfunded Status of Awards. The Plan is intended to be an “unfunded” plan for incentive compensation. With respect to any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award
Agreement shall give the Participant any rights that are greater than those of a general creditor of the Company or any Subsidiary. 

 14.6 Indemnification. To the extent allowable pursuant to applicable law, each member of the
Committee or of the Board shall be indemnified and held harmless by the Company from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such member in connection with or resulting from any claim, action, suit,
or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action or failure to act pursuant to the Plan and against and from any and all amounts paid by him or her in satisfaction of judgment in such
action, suit, or proceeding against him or her; provided he or she gives the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing
right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled pursuant to the Company’s Memorandum of Association and Articles of Association, as a matter of law, or otherwise, or
any power that the Company may have to indemnify them or hold them harmless. 
 14.7 Relationship to other Benefits. No payment
pursuant to the Plan shall be taken into account in determining any benefits pursuant to any pension, retirement, savings, profit sharing, group insurance, welfare or other benefit plan of the Company or any Subsidiary except to the extent otherwise
expressly provided in writing in such other plan or an agreement thereunder. 
 14.8 Expenses. The expenses of administering the Plan
shall be borne by the Company and its Subsidiaries. 
 14.9 Titles and Headings. The titles and headings of the Sections in the Plan
are for convenience of reference only and, in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control. 
 14.10 Fractional Shares. No fractional shares of Share shall be issued and the Committee shall determine, in its discretion, whether cash shall be given in lieu of fractional shares or whether such fractional shares shall be
eliminated by rounding up or down as appropriate. 
 14.11 Government and Other Regulations. The obligation of the Company to make
payment of awards in Share or otherwise shall be subject to all Applicable Laws, rules, and regulations, and to such approvals by government agencies as may be required. The Company shall be under no obligation to register any of the Shares paid
pursuant to the Plan under the Securities Act or any other similar law in any applicable jurisdiction. If the Shares paid pursuant to the Plan may in certain circumstances be exempt from registration pursuant to the Securities Act or other
Applicable Laws the Company may restrict the transfer of such shares in such manner as it deems advisable to ensure the availability of any such exemption. 

 14.12 Governing Law. The Plan and all Award Agreements shall be construed in accordance with and
governed by the laws of the Cayman Islands. 
 14.13 Section 409A. To the extent that the Committee determines that any Award
granted under the Plan is or may become subject to Section 409A of the Code, the Award Agreement evidencing such Award shall incorporate the terms and conditions required by Section 409A of the Code. To the extent applicable, the Plan and
the Award Agreements shall be interpreted in accordance with Section 409A of the Code and the U.S. Department of Treasury regulations and other interpretative guidance issued thereunder, including without limitation any such regulation r or
other guidance that may be issued after the Effective Date. Notwithstanding any provision of the Plan to the contrary, in the event that following the Effective Date the Committee determines that any Award may be subject to Section 409A of the
Code and related Department of Treasury guidance (including such Department of Treasury guidance as may be issued after the Effective Date), the Committee may adopt such amendments to the Plan and the applicable Award agreement or adopt other
policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Committee determines is necessary or appropriate to (a) exempt the Award from Section 409A of the Code and
/or preserve the intended tax treatment of the benefits provided with respect to the Award, or (b) comply with the requirements of Section 409A of the Code and related U.S. Department of Treasury guidance. 
 14.14 Appendices. The Committee may approve such supplements, amendments or appendices to the Plan as it may consider necessary or appropriate for
purposes of compliance with applicable laws or otherwise and such supplements, amendments or appendices shall be considered a part of the Plan; provided, however, that no such supplements shall increase the share limitations contained in Sections
3.1 and 3.3 of the Plan. 
 * * * * * 
 I hereby certify that the foregoing Plan (1) was duly adopted by the Board of Directors of Vimicro International Corporation (the “Board”) on July 26, 2005 and was duly approved by the shareholders
of Vimicro International Corporation (the “Shareholders”) on October 29, 2005; and (2) was duly amended and restated by the Board and the Compensation Committee of the Board on January 27, 2008 and was duly amended and
restated by the Shareholders on December 11, 2008. 
 * * * * * 
 Executed on this      day of             ,
2009. 
 Corporate SecretaryCooperative Agreement, dated September 24, 2008

 EXHIBIT 4.14 
 Cooperative Agreement 
 of 
 Tianjin Economic-Technological Development Area 
 Administrative Committee,

 Vimicro Corporation 
 and 
 Beijing Zhongxing Tianshi Investment Center (Limited Partnership) 
 09-24-2008 

 Cooperative Agreement 
 This Cooperative Agreement (hereinafter referred to as the “Agreement”) is executed by the following three Parties on September 24, 2008 in Tianjin City, People’s Republic of China (hereinafter
referred to as “China”). 
 Party A: Tianjin Economic-Technological Development Area Administrative Committee 
 Agency Principal: He Shushan 
 Address: No. 19, Hongda Street, Tianjin Development Area 
 Party B: Vimicro Corporation 
 Legal Representative: Deng Zhonghan 
 Address: 15/F, Shining Tower, No.35, Xueyuan Road, Haidian District, Beijing 
 Party C: Beijing Zhongxing Tianshi
Investment Center (Limited Partnership) 
 Agency Principal: Zhai Jinsheng 
 Address: No.1608A, Shining Tower, No.35, Xueyuan Road, Haidian District, Beijing 
 In this Agreement, Party A, Party B and Party C are respectively called “one Party” and collectively called “three Parties”. 
 Whereas: 
  

	1.	Party A is the Tianjin Municipal Government Dispatched Agency, which enjoys the government administrative authorities and represents the government to execute unified leadership and
management on Tianjin Eco-Tech Development Area; Party A shall, in accordance with the Administrative Provisions of Tianjin TEDA Government Investment Projects, relevant laws and regulations and normative acts, implement the government
investment projects, namely, the government-led, financial fund supported fundamental construction projects that can promote the integrated development of regional economy and society within the government functional area, including the policy
investment projects that provide equity investments on the government encouraged manufacturing, service, and high and new technology industries; 

  

 1 

	2.	Party B is an IC design company founded by overseas returners with PhD. degrees, which has successfully developed the “Starlight China Chip” series chips and entered the
international market. In 2006, it realized the sales revenue of more than RMB 1 billion, and earned more than USD 0.1 billion through export; Party B has applied for more than 1,000 international and domestic patents, and won the first prize of
National Science and Technology Advancement Award in 2004. In November 2005, the Holding Company of Party B successfully complete the initial public offering on Nasdaq Security Market, becoming the first chip design company from China listed in
Nasdaq; 

  

	3.	Party B will industrialized the “Starlight” digital multimedia chips and digital video surveillance products (hereinafter referred to as the “Vimicro Tianjin
Project”) at TEDA and establish Vimicro Electronics Corporation (under preparation) as the Project Company in charge of the Project implementation; Party A intends to regard the Project as a government invested project, to supply with
various financial supports and to provide equity investment to Vimicro Electronics Corporation (under preparation), for the business plan of the Vimicro Tianjin Project, please see Annex I; 

  

	4.	After preliminary demonstration by each Party, before launch of the Vimicro Tianjin Project, Party B has been working with relevant national ministry and commission to formulate the
industrial standards and collaborating with the communication operator to develop the network video monitoring service. 

 Vimicro
Corporation has conducted lots of project negotiations with the TEDA Administrative Committee, and the following investment agreement has been concluded: 
  

	I.	The Project content 

 Party B intends to invest and
establish the Vimicro Tianjin Project at TEDA. The Project mainly consists of IC design of very large scale, development of intelligent video analysis software, development of surveillance service management software, R&D, design, production and
assembling of surveillance camera, and R&D, design, production and assembling of video communication system. 
  

 2 

	II.	The Project construction target 

 An international
top-class industry base of surveillance and digital security including the production, research, marketing and other facilities, which will be set up through the Vimicro Tianjin Project, can create better R&D and production environment in TEDA,
optimize the industrial structure, enhance the regional self-innovation capacity, promote the implementation of Binhai New Area strategy in respect of modern manufacturing and information industrial R&D transformation base, and accelerate the
construction of Tianjin Inforport and information industrial R&D and manufacturing center. 
  

	III.	The Project building area 

 The estimated total
above ground building area of the Project is about 750,000m2. 
  

	IV.	Duties, Rights and Obligations of the Parties 

  

	1.	Party A shall proactively support the development and construction of the Project of Party B, and agree to make special preferential policies for Party B under the precondition that
Party B enjoys the applicable national and local preferential policies. 

  

	2.	Party A shall inform Party B and endeavor for coordination of any adjustment of the State and Tianjin Municipal policies so as to reduce the negative influence to Party B’s
implementing of the Vimicro Tianjin Project to the maximum. 

  

	3.	The three Parties shall incorporate “Vimicro Electronics Corporation“ at Party A’s jurisdiction area within 30 days upon execution of this Agreement (interim, subject
to the approval from the company registration authority) as the investing, constructing, managing and operating company of the Vimicro Tianjin Project. 

  

 3 

	4.	Party A, which shall purchase shares with amount of two hundred and fifty million RMB yuan (hereinafter referred to as “yuan”) in proper way and name, along with Party B
and Party C, both of which will invest cash, altogether to set up a stock limited company (hereinafter referred to as the “Stock Company”), with a registered capital value of five hundred million and one yuan, and total share capital
numbers of 500,000,001 shares. 

  

	5.	All three Parties agree on the number and ratio of shares to be held respectively as follow: 

  

			
	 Name of Initiator
	  	Number of shares
to be held
	 Party A
	  	250,000,000
	 Party B
	  	250,000,000
	 Party C
	  	1
	 Total
	  	500,000,001

  

	6.	The three Parties agree that they shall respectively actuate their own internal and superior competent authority to approve their investment plan on the Stock Company, and
coordinate with the Stock Company to obtain the Corporate Business License issued by the company registration authority. 

  

	7.	Each Party shall understand and agree that since the establishment of the Stock Company, Party B can incorporate the Stock Company into the consolidated financial statements in
accordance with current and applicable Chinese accounting standards and GAAP of USA. If necessary, Party A and Party C shall provide reasonable support and assistance. 

  

	V.	Party A’s exit arrangement 

  

	1.	 In order to reflect Party A’s maximum support of the Tianjin Project, with the principle that Party A’s participating in the Project doesn’t aim to
make profit, the three Parties agree that Party C can select a proper time based on the operations of the 

  

 4 

	 	 
Stock Company according to the requirement and procedure of relevant State regulations to repurchase totally or partially the Initiator’s stock held by
Party A as follow: 

  

	 	(1)	After one year as of the date of the establishment of the Stock Company; 

  

	 	(2)	Party C shall deliver a written notice to Party A to inform that Party A can select to repurchase the Initiator’s stock before launching of the IPO process of the Stock
Company; 

  

	 	(3)	Before Party A withdraw its shares, without approval of other Parties, no Party shall transfer their own initial offerings to any non-initiator, or provide the initial offering as
guarantee of pledge for themselves or any third party. 

  

	 	(4)	Party A promises to take legal and feasible measures to transfer the initial offering to Party C with the maximum support to make the final price of Party C’s repurchasing of
such total or partial stock no more than the sum of Party A’s initial investment cost plus the corresponding bank interest during Party A’s investment correspondingly, which shall be calculated by the continuously-readjusted 1-year term
loan ruling rate of interest concurrently published by the People’s Bank of China, and the computational formula of interest: SI=P*R1%+P* R2%+...... +P* Rn%1), however, it must be conducted in compliance
with the stock transferring procedure stipulated by relevant State laws and regulations. 

  

	1
	 SI represents the initial investment cost corresponding to the number of shares transferred by Party A to Party C (which may be
total or partial of 250,000,000 shares), plus the bank interest owed to Party A during the investment period. 

 n
represents before transferring from Party A to Party C, the number of years of the shares held by Party A, which is calculated as of the establishment date of the Stock Company; during the period between the establishment date to December 31 of
the year, n=1; the period from January 1 of the next year to December 31, n=2, and so forth. The initial day of the last year is January 1 of the year, and the end day is the date when number of stock shares is transferred to Party C.

 P represents the initial investment cost corresponding to the number of stock shares transferred by Party A to Party C, equal to the number
of stock shares transferred. 
 Rn represents the one-year loan ruling rate of interest provided by the People’s Bank of China on December 31 of the year when
the number of stock shares held by Party A is transferred, or the day before the date when stock shares are transferred to Party C. 
  

 5 

	2.	The three Parties agree that the Board of Stock Company consists of 7 directors, Party A has the right to nominate 2 director candidates, Party B has the right to nominate 2
director candidates, Party C has the right to nominate 1 director candidate, and Party A and Party B have the right to jointly nominate 1 director candidate from the new company management and 1 independent director candidate; the Chairman of the
Board and Legal Representative shall be assumed by the Director nominated by Party B then, the Stock Company has a Vice-chairman of the Board that is assumed by the Director nominated by Party A. 

  

	VI.	The Stock Company’s assets and business 

  

	1.	Party A agrees to supply the Stock Company with office place and the Project construction land as of the incorporation of the Stock Company. The Stock Company shall strictly comply
with this Agreement and shall not change the nature and usage of the project land as well as property built above without relevant government approvals. 

  

	2.	Party B agrees to license or transfer free of charge the relevant patents, non-patent technology and other intangible assets which was held by Party B and required for production
and operation to the Stock Company, within one year as of the incorporation of the Stock Company. 

  

	3.	Party A agrees to support the Stock Company to finish necessary procedures of approval and license and assist in duly obtaining of relevant business qualification.

  

	VII.	The Project construction location 

  

	1.	Party A ensures to provide the Stock Company with the following construction land with the standard of “seven connections and one leveling” (infrastructure development in
respect of traffic, electricity, water, drainage, telecommunication, heating and gas) to develop Vimicro Tianjin Project according to Party B’s implementing of the research and development and industrialization of Project at TEDA under the
precondition in accordance with the State, regional and local policies and planning: 

  

	 	(1)	Pursuant to Party B’s implementation of industrialization of the Project in TEDA, Party A shall provide construction land based on the land uses for R&D, office and
production. The land use of Party B or Stock Company shall meet the indices such as plot ratio, intensity of investment, commencement and construction period of TEDA. 

  

 6 

	 	(2)	 Party A will provide the Tianjin Project with about 34 thousand m2 construction land within Party A’s parent-area service outsourcing park, where the Vimicro Tianjin Project is expected to cover
a building area of about 120 thousand m2. The area plot ratio is 3.55 planned
by TEDA. The transfer price of assigned land is RMB 400 yuan/m2 according to land construction area. 

  

	 	(3)	 The Vimicro Tianjin Project totally requires above-ground building area of 750 thousand m2. Excluding the above-mentioned about 120 thousand m2 above-ground building area, to satisfy the Project demand, Party A will provide another around 630 thousand m2 above-ground building area as the project land through the following methods.

  

	 	i.	 Shall be located in the Western region of Development Area and divided into WesternI-phase and Western II-phase. The plot ratio of the land is about 1.35 regulated
by TEDA. Transferred land price shall be decided according to national transferring land regulations. Parties’ recognized the lowest price of land use right to be listed is 302 yuan / m2; 

  

	 	ii.	Above-ground building area of western I-phase is 270,000 square meters. The procedures of planning, site selection, land remise and construction work should be conducted at the same
time with outsourcing park land; 

  

 7 

	 	iii.	The above-ground building area of Western II-phase will be 360,000 square meters. Within 30 days after obtaining the land certification of western I-phase, Party A agrees that Party
B or stock company shall execute a land reservation agreement with the maximum reservation term permitted by law, which shall be extended once. 

  

	 	(4)	Above mentioned land area is subject to staking book, and the final building area and plot ratio shall be subject to the approval of planning and examination.

  

	2.	 Party A undertakes to supply the Stock Company with office place located in east area of TEDA and Tianjin urban covering about 2000 m2 building area free of charge during the construction of the Stock Company and the invested
project, and the term shall be 2 years in commence with Party B or Stock Company’s use of the office place. 

  

	VIII.	The Project construction land 

  

	1.	Development degree: The Party A undertakes to supply the Stock Company with the construction land with the development degree meeting the long-cultivated land standards of
“seven connections and one leveling” for the Project herein, namely, Party A shall be responsible to complete all the work including “municipal pipeline network engineering outside the construction land red line such as the water,
drainage, electricity, telecommunications, gas and heating, the road engineering outside the construction land red line, and land expropriation, housebreaking and field leveling within the construction land red line”. 

 

	2.	Means of transferring: According to relevant State and regional regulations, the Project land will be transferred by means of public bidding. Party A undertakes to support and
coordinate the Stock Company to acquire the use right of the Project construction land in accordance with the applicable laws, regulations and policies. 

  

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	3.	The price of transferred land shall be specifically specified as complete long-cultivated land price, including compensation for demolition for land expropriation, larger municipal
auxiliary engineering cost and land transfer fee. Party A promises to give priority to finish the stated-owned land use transfer procedure for the Stock Company as well as invested project land in accordance with applicable laws regulations and
policies, and give all possible preferential treatments and subsidies to the payment of complete long-cultivated land (including compensation for demolition for land expropriation, larger municipal auxiliary engineering cost and land grant fee).

  

	IX.	Preferential policy 

  

	1.	Under applicable laws and regulations, Party A promises to supply and exercise the Stock Company and advanced talents with various preferential policies and supporting measures that
are applicable to IC design enterprises, high-tech enterprises and various talents introduced by the State, Tianjin City and TEDA, and promises to implement various current or prospective preferential policies and supporting measures granted by
Tianjin City and TEDA and applied and related to the Stock Company, various talents introduced and the project investment. Party A promises to offer the Stock Company with preferential policies and measures that have been given to identical or
similar enterprises in equal or more favorable conditions. Party A promises that Party B will enjoy such new policy automatically with no need of further negotiation in the event that Party A establishes more preferential policies.

  

	2.	Party A promises to take all necessary measures to promote the relevant tax authority to grant or assist the Stock Company and various kinds of talents introduced to get the
following tax preferences: 

  

	 	(1)	 Assist the Stock Company to be entitled as high-tech enterprise and IC design enterprise so as to enjoy the tax preferential policies granted to high-tech
enterprise. As to the enterprise income tax (EIT), any enterprise with high-and-new nature shall, from the year beginning to make profit, be exempted from income tax in the 1st and 2nd years and 

  

 9 

	 	 
allowed a 50% reduction in the 3rd to 5th years. As to the value added tax (VAT), after levy of VAT on software product self-developed and self-produced by
general VAT taxpayers at the legal rate of 17%, the part with the actual VAT burdens exceeding 3% may enjoy the simultaneous levy and refund policy. (promulgated by the Ministry of Finance, the State Administration of Taxation and the General
Administration of Customs with the document No, [2008] No 1 File and No. [2000] No 25 File. 

  

	 	(2)	As the Stock Company is entitled as IC design enterprise, Party A shall grant 100% exemption in the first five years and 50% exemption in the next five years of the VAT retained by
the TEDA from the sales profit of self-developed and self-produced IC products as well as Business Tax collected by the TEDA from the profits of the high-and-new technology enterprise which ratified and registered by the Agreement; as to the EIT,
which was from the profit of the Stock Company and retained by TEDA, Party A shall refund 100% in the first five years from the year beginning to make profit and 50% financial support in the next five years. 

  

	 	(3)	According to the retention part in TEDA of the individual income tax paid for stock bonus and transfer by shareholding scientists, engineers and the managerial staff, As to the
Individual Income Tax (IIT) from the profits of dividends and transfer earning of equities by the technicians and management holding the equities of the enterprise with the nature of high-and-new technology, Party A shall grant 100% exemption in the
first five years. 

  

	 	(4)	Other tax preferential policy that the Stock Company and employees can enjoy in accordance with laws. 

  

	3.	TEDA shall give Party B or the Stock Company reward of resource-intensive use and subsidy of soft soil foundation, which are equivalent to 233 yuan per square meter within 60 days
after the execution of the agreement for the Western I-phase and Western II-phase project. In the event of price adjustment when Party B acquires the construction land, the above-mentioned reward and subsidy shall be adjusted accordingly.

  

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	4.	In order to attract advanced talents to work in Tianjin and to help Vimicro better develop in TEDA, with the approval of labor and personnel department of TEDA, Party A undertakes
to give support in three respects in accordance with the talent policy of TEDA as follow: 

  

	 	(1)	As to the persons in chare of the State Key Laboratory, the persons in chare of the Sate major science and research project and the advanced overseas returners of the project
leaders urgently needed in the high-tech area of TEDA, who will make employment contract with party B for more than five years, Party A will give four hundred thousand yuan household allowance to aforesaid peoples in the event that those people
purchase house in TEDA; 

  

	 	(2)	As to the various talents who meet the motivation policies, Party A will return 80% of the retention part of individual income based on such person’s annual salary in TEDA, in
the case such person purchase houses in TEDA, the above-mentioned returning ratio will increase to 100% for a preferential period of five years. 

  

	 	(3)	Party A will provide the following advanced talents for free with senior talents apartments for a preferential period of 2 years: Senior talents holding no less than 5 % of the
corporate stock; advanced oversea returners engaged in R&D with international leading position; Talents with doctor’s degrees who are working corporate postdoctoral scientific research station or postdoctoral innovation practice base in the
TEDA. 

  

	 	(4)	Party A will provide various talents who are qualified to the requirements of the two Parties free of charge with the White-collar Apartment for a preferential period of two years.

  

 11 

	 	(5)	Party A shall endeavor to provide houses, medical treatment, education and other facilities to various high-leveled talents working in Tianjin. 

  

	 	(6)	Party A shall provide advanced talents of the Stock Company with other preferential policies applicable in Tianjin City and TEDA. 

  

	5.	Party A promises to fund and support the Stock Company by providing R&D subsidies; Party A encourages the Stock Company to apply for the national and Tianjin municipal key
scientific and technological projects and industrialization supported projects. 

  

	 	(1)	Party A will offer a 100% support for the State key scientific technological projects, the amount of supporting fund of which shall not exceed two million yuan principally;

  

	 	(2)	Party A shall offer a support at ratio 50% for the Tianjin municipal key scientific and technological projects, in principle, the amount of support fund of each project shall not
exceed one million yuan; 

  

	 	(3)	The amount of the upper limit in aforesaid (1) & (2) shall be given concrete analysis and consideration. As to the encouraged excellent projects, special treatment
shall be granted and the upper limit shall be broken, based on the negotiation and acceptance of Party A and Party B. 

  

	 	(4)	As to the R&D centre established by the Stock Company, Party A shall grant subsidy in an amount of 10% of R&D expense of the Stock Company in the name of science and
technology foundation with a period of no more than five years. The sum of actual annual subsidy shall not exceed 20 % of actual economic contribution made by the Stock Company to TEDA of the year. 

  

 12 

	6.	Commencing with the date the Stock Company applies for the loan, Party A undertakes to give support by means of subsidizing 50% of loan interest of the Stock Company, and the amount
of the loan supported and assisted by Party A shall not exceed two hundred million yuan, with a term of two years. 

  

	X.	Confidential clause 

  

	1.	The confidential information refers to all conditions and terms herein and information disclosed by one Party (the “Disclosing Party”) to another Party (the
“Receiving Party”), if disclosed in the form of tangible, the information shall be labeled as “confidentiality” and “proprietary”; if disclosed visually or orally, shall be designated as confidential at the time of
disclosure, or is confirmed in writing within 30 days after first disclosure. 

  

	2.	After the Disclosing Party has firstly disclosed the confidential information to the Receiving Party, the Receiving Party shall not disclose to any third party, except that such
third party shall be the employee, consultant or contract partner of the Receiving Party who are necessary to know the confidential information, provided that such employee, consultant or contract partner has shown written approval on protecting the
confidential information in reasonable way. Such obligations provided herein shall survive the expiry or termination of the Agreement. The obligation of confidentiality shall not be relieved due to the expiry or suspension of the Agreement.

  

	3.	Either Party may be free of obligation of confidentiality under the following cases: 

 (1) The Receiving Party has obtained the confidential information before it has the obligation of confidentiality; 
 (2) The confidential information has been available to the public, provided that such disclose through no act of the Receiving Party; 
 (3) The Disclosing Party has agreed in writing that the information shall not be kept confidential; 
 (4) The information was
disclosed by a third party with no obligation of confidentiality; 
  

 13 

 (5) The confidential information was independently developed by the Receiving Party. 
 Once the Agreement is terminated by whatsoever reason, the two Parties shall immediately return confidential information they exclusively owned to the
other Party, or destroy all such confidential information and shall confirm in writing that such information has been returned or destroyed. 
  

	XI.	Liability for breach 

  

	1.	Upon effectiveness of the Agreement, each Party fails to perform, or fails to perform duly and properly, any obligation herein that shall be performed, or breach any warranty or
undertakings herein, all of which shall constitute breach of the Agreement, and such Party shall bear the liability of breach in accordance with laws and regulations. 

  

	2.	if the Stock Company cannot be established in time or the investment project cannot be implemented as the consequence of any Party’s breach of the Agreement, the other party
with no default shall be entitled to terminate the Agreement with thirty (30) days prior notice in writing. 

  

	3.	If the Agreement becomes totally or partially unperformable due to adjustment of the State (regional) laws, regulations and policies or any other force majeure, neither Party herein
shall bear any liability. However the Party who has suffered from force majeure or learnt the change of the situation shall inform the other Parties immediately in avoidance of further expansion of loss of each Party. 

  

	XII.	Resolution of disputes 

  

	1.	The execution, validity, performance, interpretation and resolution of disputes of the Agreement shall be governed and construed in accordance with the laws of People’s
Republic of China. 

  

 14 

	2.	Any disputes arising from or related to this Agreement shall be negotiated in good faith among three Parties immediately. If the dispute cannot be solved through negotiation, any
party shall be entitled to file a suit in the competent court. 

  

	XIII.	Miscellaneous clauses 

  

	1.	Party A ensures that all the preferential policies provided to Party B shall comply with all the current laws, regulations and policies applicable in State and TEDA. In the event
that Party A’s warranty or representation cannot be attained as a result of the change or adjustment of the laws, regulations or policies, Party A endeavors to seek alternatives together with Party B in the aim to reduce the loss suffered by
Party B. 

  

	2.	The Parties shall perform all kinds of works pursuant to this Agreement. The Agreement of Transferring of State-owed Land Use Right shall be executed after Party A prove and ratify
the Vimicro Tianjin Project with project fast evaluation procedure. 

  

	3.	This Agreement enters into effect as of the date by the signatures of authorized representatives from the three Parties and the stamping of the corporate seal.

  

	4.	This Agreement is the further implement and supplement of “Framework Cooperative Agreement”. If “framework cooperative agreement” concluded by the three parties
are inconsistent with the agreement, this agreement shall prevail. 

  

	5.	The three Parties shall sign a supplementary agreement in respect of any subject matters have not been set forth herein, the supplementary agreement shall have the same binding with
this Agreement. 

  

	6.	Any agreements, contracts or documents concluded by three Parties prior to the execution of the Agreement shall be substituted by the Agreement as the date of the signature.

  

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	7.	The Agreement originally is prepared in sextuplicate, and the three Parties shall each hold two copies. 

 Hereby it is to certify that the Agreement has been executed as of the date first written above. 
 (Hereinafter has no text, for signature only.) 
  

 16 

 (This page has no text, signature page of the “Cooperative Agreement of Tianjin Economic-Technological Development
Area Administrative Committee, Vimicro Corporation and Beijing Zhongxing Tianshi Investment Center (Limited partnership)”.) 
 Party A: Tianjin
Economic-Technological Development Area Administrative Committee (Seal) 
  

							
	Authorized Representative:	 	 /s/
	 	(Signature)	 	
	
	Party B: Vimicro Corporation (Seal)
				
	Authorized Representative:	 	 /s/
	 	(Signature)	 	
	
	Party C: Beijing Zhongxing Tianshi Investment Center (Limited Partnership)
				
	Authorized Representative:	 	 /s/
	 	(Signature)	 	

  

 17 

 Annex I 
 Vimicro Tianjin
Project Business Plan 
 I-phase, 2008-2010, digital security, building area above the ground of
0.12 million m2, the amount of total investment of RMB 0.82 billion yuan

 II-phase, 2011-2013, digital security, video communications, building area above ground of
0.27 million m2, the amount of total investment of RMB 1.75 billion yuan

 III-phase, 2013-2015, visual communications, digital security, building area above ground of
0.36 million m2, the amount of total investment of RMB 2.6 billion yuan

 Economy of scale: 
 Within 3 years upon I-phase set up and
running, the anticipated annual production and sales scale will reach to RMB 2.05 billion yuan 
 Within 3 years upon II-phase set up and running, the
anticipated annual production and sales scale will reach to RMB 1.6 billion yuan 
 Within 3 years upon III-phase set up and running, the anticipated annual
production and sales scale will reach to RMB 3.1 billion yuan 
 Upon the completion and running, the anticipated annual production and sales scale will
reach to RMB 6.75 billion yuan 
 The amount of total investment: RMB 5.17 billion yuan 
  

 18

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