Document:

Exhibit 4.21

 

Safe City Project of Baoding City

 

Shanxi Zhongtianxin Procurement Contract

 

Contract No. FZ20131231 (4)

 

Party A (Buyer): Shanxi Zhongtianxin Science and Technology Co., Ltd.

Party B (Seller): Fuzhou Vimicro Corporation

 

In accordance with the provisions of Company Law of the People’s Republic of China and other relevant laws and regulations, both parties hereby enter this Contract concerning the following items on the basis of consultation and principles of equality, and agree to abide by and implement this Contract.

 

I. Cargo List and Price

 

	
Cargo’s Description
    	
 
    	
Unit Price
    	
 
    	
Unit
    	
 
    	
Total Price
    
	
Video   Surveillance System
    	
 
    	
RMB   67,562,719.62
    	
 
    	
Set
    	
 
    	
RMB   67,562,719.62
    
	
In   Words
    	
 
    	
Sixty-seven   Million Five Hundred and Sixty—two Thousand Seven Hundred and Nineteen Yuan   Six Jiao and Two Fen
    

 

II. Quality and Technical Standard & Product Packaging

 

1.              Quality and technical standard: as per relevant specifications of national standard and cargo instructions.

 

2.              Product packaging:

 

(1)         The product packaging shall comply with the packaging standard of the original manufacturer in case the product is packaged by the original manufacturer.

 

(2)         In case the product is not packaged by the original manufacturer, the product packaging shall comply with the packaging standard of the seller.

 

3.              The products supplied by the seller shall be brand-new devices (including parts and spares, fittings, attached tools etc.) without any trace of scratch or collision with the surface.

 

III. Cargo Delivery

 

1.              Information on cargo delivery:

 

(1)         The full name of the unit (person) appointed by the buyer to receive the cargo hereunder is: Shanxi Zhongtianxin Science and Technology Co., Ltd.

 

(2)         The buyer hereby designates the following address as the detailed place which the cargo hereunder shall be delivered to: 322, 3/F, Complex Building of Vehicle Administration Authority, Traffic Police Detachment of the Public Security Bureau, No. 2601, Changcheng North Avenue, Baoding City.

 

(3)         The name and contact information of the contact person appointed by the buyer: Li Genbing 18050131303.

 

2.              Means of Acceptance:

 

Upon receiving the cargo, the buyer or the person appointed by the buyer to receive the cargo shall check the cargo against acceptance in the way as agreed and shall affix his/her name and official seal or the seal for cargo receipt.

 

 

IV. Date and Means of Delivery & Transportation and Costs

 

1.              Delivery date: before December 31, 2013.

 

2.              All the products and the fittings shall bear certificate of quality issued by the factory.

 

3.              Party B shall furnish Party A with user’s manual, warranty manual, relevant materials and fittings, attached tools, etc. in conjunction with the supplied products.

 

4.              The freight expenses shall be borne by the seller.

 

V. Payment

 

1.              The buyer shall pay for the cargo by T/T. In regard to the transaction and clearing between the buyer and the seller, both parties agree that the payment for the cargo shall not be deemed as having been paid off until the buyer’s payment for the cargo is transferred in entirety to the account designated by the seller; the buyer shall not be reckoned as having paid off the payment for the cargo notwithstanding the invoices having been obtained by the buyer.

 

2.              Means of payment:

 

The buyer shall pay 100% of the total Contract price to the seller after having received all the cargoes and the invoices of the seller.

 

VI. Acceptance and Objection

 

1.              In case the buyer designates a unit/person to receive the cargo, the buyer agrees to bear the responsibilities in connection with such unit’s (person’s) acts as acceptance, rejection against acceptance and rejection against acceptance in writing.

 

2.              Procedures of acceptance: the cargo shall be delivered to the door. When the cargo is handed over by the seller, each of the seller and the buyer shall designate at least one person to jointly check the brand, specification, model, amount and quality of the cargo forthwith. The buyer shall accept the cargoes complying with the items hereof. The buyer may reject to accept the cargoes not complying with the items hereof, but shall present a documentation in writing within 2 days in order to specify the reasons for such rejection above.

 

3.              Others:

 

(1)         In case the cargo quality declines due to improper usage/storage/maintenance etc. by the buyer, the buyer shall not raise any objection.

 

(2)         In case the abovementioned rejection or objection is caused by the seller, the seller shall bear the responsibility to replace or make good within 7 days.

 

VII. After-sale Service and Warranty

 

The seller shall offer a two-year warranty period from the date when the cargo is delivered, and shall render such services as maintenance, related technical support and consulting services.

 

Within the warranty period, quality problems or malfunctions which are not caused by the buyer purposely shall be fixed by the buyer by repairing, replacement and exchanging, with all the expenses thus incurred to be borne by the buyer. When the warranty expires, both parties shall negotiate and sign another contract in terms of warranty renewal.

 

VIII. Breach of Contract

 

1.              Seller’s Liabilities for Breach of Contract

 

(1)         In case the date when the seller delivers the cargo exceeds the time limit, the seller shall pay the buyer 1‰ of the payment for such cargo overdue per day as default fine, which shall not exceed 5% of the payment for such cargo overdue.

 

 

(2)         In case both parties confirm that the specification, model, quantity, quality and packaging of the cargo delivered by the seller fail to meet the standard as agreed herein, both parties shall settle it through another consultation on condition that the buyer agrees to accept; otherwise the seller shall make good, replace or repair in accordance with the actual condition of the cargo, and shall bear the actual expenses for repair and replacement.

 

(3)         In case the buyer furnishes wrong information about the delivery address and the appointed person to receive the cargo, which results in the seller or its entrusted consignee failing to deliver the cargo in time, the seller shall not undertake any default liabilities caused by such late delivery and has the right to order the buyer to compensate for all the losses thus incurred to the buyer.

 

2.              Buyer’s Liabilities for Breach of Contract

 

(1)         In case the payment to be made by the buyer is overdue, the buyer shall pay the seller 1‰ of the overdue payment as default fine per day within 30 days (inclusive) from the date exceeding the time limit, but such default fine shall not exceed 5% of the overdue payment.

 

(2)         Since the cargo hereunder is specially prepared by the seller for the buyer, should the buyer reject to receive the cargo complying with the provisions of the Contract without any justified reason (including the case that the buyer cancel the order halfway), the buyer (i) shall be deemed as unilaterally breaching the Contract; (ii) shall pay the seller 20% of the payment for such part of cargo rejected by the buyer (or the part cancelled halfway) as default fine; and (iii) shall compensate the seller for the losses thus incurred.

 

(3)         In case the buyer fails to arrange for receiving the cargo within 20 work days from the delivery date, the seller has the right to stop the delivery or cancel this Contract.

 

IX. Cargo’s Ownership Retention and Risk Transfer

 

1.              Both parties agree that the ownership shall be transferred to the buyer once the seller has delivered the cargo.

 

2.              Both parties agree that the risk of damage and loss of the cargo hereunder shall not be assumed by the buyer until the seller has delivered the cargo.

 

X. Force Majeure

 

1.              The force majeure herein refers to the objective situations that are unable to forecast, avoid or overcome, including war, fire, flood, typhoon, earthquake, policy change and other act of God. The force majeure may occur in the process of cargo’s manufacturing, transportation, warehousing or delivery; the seller shall notify the buyer of the force majeure above immediately.

 

2.              In case the seller fails to deliver the cargo in time due to force majeure or pandemic acute infectious diseases, the seller shall not undertake any liability therefrom.

 

3.              In case either of the parties fails to fulfill this Contract as a result of force majeure, such party shall notify the other party in time and also provide proofs furnished by the competent authority within 15 days from the date when the aforesaid event is over.

 

XI. Dispute Resolution

 

Any dispute arising from the fulfillment of this Contract shall be settlled through negotiation by both parties in the first place; should any settlement fail to be reached, either party may lodge a lawsuit to the people’s court having the jurisdiction over the place where the buyer lives.

 

 

XII. Contract Validity and Alteration

 

1.              This Contract shall enter into effect once stamped with the official seals or seals for contract by both parties.

 

2.              Once this Contract takes effect, neither party shall amend or rescind this Contract at its own discretion. In case either party requires amendment to this Contract, both parties shall sign a supplementary agreement some other time in order to confirm the amendment to this Contract; and such supplementary agreement shall come into force when stamped with the official seals or seals for contract by both parties. Should such supplementary agreement fail to be reached by both parties, the party which suggests the amendment shall continue to fulfill its obligations hereunder; otherwise it shall be deemed as breaching the Contract.

 

3.              Special provisions: This Contract with Attachments embodies the entire agreement and understanding with regard to the cooperation hereunder between the parties hereto and supersedes all prior verbal communications, statements/agreements or those verbal communications, statements/agreements made during the fulfillment of this Contract. Either party hereto may suggest supplement or amendment to this Contract; such supplement or amendment shall be prepared in written form with affixed seals of both parties hereto and shall constitute the effective part of this Contract.

 

4.              This Contract is in duplicate with both parties holding one copy; both copies have the same legal effect. The faxes of this Contract are valid.

 

(The Contract body ends here)

 

	
Seller (Seal): Fuzhou Vimicro Corporation
    	
Buyer (Seal): Shanxi Zhongtianxin Science and   Technology Co., Ltd.
    
	
 
    	
 
    
	
[Company seal is Affixed]
    	
[Company seal is Affixed]
    
	
 
    	
 
    
	
Representative (Signature):
    	
Representative (Signature):
    
	
 
    	
 
    
	
Address:
    	
Address:
   1806, Guomao Tower, Fuxi Street, Taiyuan City, Shanxi Province
    
	
 
    	
 
    
	
Telephone:
    	
Telephone:
    
	
 
    	
 
    
	
Deposit Bank:
    	
Deposit Bank:
    
	
 
    	
 
    
	
Account No.:
    	
Account No.:
    
	
 
    	
 
    
	
Date:
    	
Date:Exhibit 4.22

 

ENGLISH SUMMARY OF CONSTRUCTION CONTRACT

 

This Contract is entered into by and between Jiangsu Vimicro Electronics Corporation as the owner (hereinafter the “Owner”) and Jiangsu International Economic Technology Cooperation Group Co. Ltd., as the general contractor (hereinafter the “Contractor”) on March 25, 2014. The Contractor agreed to construct the facility according to Owner’s specifications and procure the Owner’s approval for any subcontracting.

 

GENERAL PROVISION

 

1. The Owner owns land-use rights for a parcel of land located in Xuzhuang Software Industrial Park, Nanjing City, Jiangsu Province, China. The Contractor shall construct 16 buildings, with a functional site area of 6,800 square meters and a gross floor area of 114,924 square meters for Owner on aforesaid land (hereinafter the “Project”). The Contractor’s responsibilities include construction and repair of the Project within the warranty period.

 

2. Construction period is from March 25, 2014 to November 20, 2015.

 

3. The Owner shall make payment to the Contractor pursuant to the terms and conditions hereof.

 

PRICE AND PAYMENT

 

4. The total price of this Contract shall be RMB259.6 million. This is a fixed price contract, which means if during the implementation of the Contract there is no change to the construction drawings as included, the total contract price shall not be adjusted.

 

5. The Owner shall have no advance payments to the Contractor in this Contract.

 

6. The Owner will make such payments upon (i) completion of the foundation, (ii) completion of building main structure and passing of quality check, (iii) completion of 50% of the finishing work work and installation, and (iv) completion of all construction work and passing of quality check. Within 14 days after filing of the completed construction and approval of the construction price, The Owner will pay the difference between 95% of the approved construction price and the total amount the Owner will have paid through progress payments.

 

7. The remaining 5% of the construction price will be retained by Owner as a quality assurance fund, which Owner can keep for two years.

 

OBLIGATIONS OF THE CONTRACTOR

 

8. The Contractor shall complete the construction of the Project in accordance with the agreed design and ensure that the completed Project satisfies the designed commercial purposes.

 

 

9. The warranty period of the Project shall be five years for waterproofing (including roof and washroom areas) and anti-leakage for the exterior of the building, and two years for other parts of the Project.

 

10. The Contractor shall provide the necessary equipment, materials, documents, personnel and services in connection with the construction of the Project.

 

11. The Contractor shall ensure that none of its sub-contractors sub-contracts the Project to any third parties without the Owner’s advance consent. The Contractor shall remain liable for all the work completed by any of its sub-contractors or their agents or employees, as if such work were completed by the Contractor on its own. The Contractor shall notify and obtain the consent of the Owner prior to: (i) the proposed hiring of any sub-contractors (the Contractor shall provide the Owner with detailed information of such sub-contractors); (ii) the proposed commencement date of any sub-contractors; and (iii) the proposed commencement date of the site work of the sub-contractors.

 

12. The Contractor shall, subject to the inspection of the Owner, establish a quality control system to ensure the quality of the Project.

 

13. The Contractor shall adopt all necessary measures to comply with all applicable environmental laws and regulations and labor laws.

 

TERMINATION OF THE CONTRACT BY THE OWNER

 

14. In the event that the Contractor fails to perform any of its obligations hereunder, the Owner may notify and request the Contractor to make remedies within a reasonable period of time.

 

15. The Owner may terminate this Contract if: (i) the Contractor fails to make remedies within a reasonable period of time after receipt of the notice; (ii) the Contractor abandons the Project or expressly manifests an intention to abandon the Project; (iii) the Contractor sub-contracts the whole Project or assigns this Contract to a third- party without the Owner’s consent; (iv) any material construction quality accident and/or safety accident occurs. The Owner may terminate this Contract immediately.

 

16. The Owner may terminate this Contract in whole or in part depending on the types of default by the Contractor (for example, the Contractor having received three written warnings from the Owner). Upon receiving the Owner’s notice to terminate this Contract in whole or in part, this Contract or the relevant parts of this Contract shall be terminated immediately. If there is a serious delay of the construction period due to default by the Contractor (delay for more than 30 days with no effective rectification measures), the Owner is entitled to terminate this Contract unilaterally and claim damages from the Contractor, which the Owner may deduct from the progress payments.

 

17. The Owner may also terminate this Contract at any time by giving the Contractor a notice which shall take effect after the Contractor receives the notice.

 

 

LIQUIDATED DAMAGES

 

18. The actual start date of the Project shall be upon the issuance of a start order, and the construction period shall be from the start date to the completion date. Depending on whether the completion dates for different parts of the Project is later than the targeted completion dates for the relevant parts as agreed by both parties, the Contractor shall compensate the Owner RMB20,000 or RMB50,000 per day for the delay, provided that the total amount of compensation for delay shall not exceed 10% of the contract price. If the Project as a whole is completed within the construction period and passes initial completion inspection and fire inspection, the compensation previously paid for delay of relevant parts for the Project shall be returned.

 

19. If the Project fails to meet the quality standard set in the completion inspection, the Contractor shall be subject to the following penalties: pay damages equal to 5% of the construction price for such parts failing the inspection, and if such parts again fail the inspection after improvement, such parts of the Project will not be included in the bill of quantity submitted by the Contractor to the Company and the Contractor shall pay damages equal to 10% of the construction price for such parts.

 

CLAIMS AND DISPUTE RESOLUTION

 

20. The comprehensive unit price of the Project shall not be adjusted, regardless of the magnitude of increase or decrease of construction quantity of the Project. Construction quantity of the Project shall not be adjusted if there is no change to the construction drawings. In case the construction quantity of the Project need to be increased or reduced due to change in the tender drawings, it must be confirmed and verified by the project manager and the Owner, after which the contract price may be increased or reduced accordingly at the settlement of the Project.

 

21. The Owner reserves the rights to adjust the dates for actual start, suspension, resumption and completion of the Project. The Contractor shall bear such risk and submit to the arrangement by the Owner. In case of any suspension or delay of the Project due to the Owner, the construction period shall be extended accordingly, and the Owner shall not be subject to any other liability of default. In case of any dispute between the Owner and the Contractor, the Contractor shall not unilaterally suspend the Project because such dispute is not resolved, which shall otherwise be regarded as a default by the Contractor and there shall be no extension of the construction period for delays resulting thereof.

 

22. In the event of potential disputes, the parties shall try to resolve the disputes through friendly negotiation. In the event that the parties are not able to resolve the disputes through negotiation, either party may bring action with the appropriate people’s courts.

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