Document:

Exhibit 4.23

 

English Translation for Reference

 

Strategic Cooperation Framework Agreement
on the Project of 

 

“Industrialization Development and Application of Chip System of 

 

Starlight China Chip Internet of Things
Project-SVAC National 

 

Standardized Internet of Things for Security Surveillance”

  

The Economic & Information Commission of
Guangdong Province

 

Vimicro Corporation

 

February 2014

 

    	 

    	 

    

  

Strategic Cooperation Framework Agreement
on the Project of “Industrialization

Development and Application of Chip System of Starlight China Chip Internet of

Things
Project-SVAC National Standardized Internet of Things for Security

Surveillance”

 

Party A: The Economic & Information Commission
of Guangdong Province

Domicile: No. 100, Jixiang Road, Guangzhou,
Guangdong Province

Postal Address: No. 100, Jixiang Road, Guangzhou,
Guangdong Province

Post Code: 510000

Legal Representative: Lai Tiansheng Post: Director

Entrusted Agent:

 

Party B: Vimicro Corporation

Domicile: Shining Tower, No.35, Xueyuan Road,
Haidian District, Beijing

Postal Address: 16/F, Shining Tower, No.35,
Xueyuan Road, Haidian District, Beijing

Post Code: 100191

Tel.: 010-68948888

Fax: 010-68944075

Email: winson@vimicro.com

Legal Representative: Zhonghan (John) Deng
Post: Chairman of Board of Directors

Entrusted Agent:

 

This strategic cooperation framework
agreement is entered into by and between the Economic & Information Commission of Guangdong Province (“Party
A”) and Vimicro Corporation (the core company of Vimicro) (“Party B”) on implementation and construction of
the project of “Industrialization Development and Application of Chip System of Starlight China Chip Internet of Things
Project-SVAC (Surveillance Video and Audio Coding) National Standardized Internet of Things for Security Surveillance”
through friendly consultations in order to implement national and Guangdong Provincial strategic deployment of accelerating
the development of Internet of things, promote independent innovation and technological application of internet of things for
security surveillance and complete the important task of making Guangdong a pilot demonstration province of SVAC national
standard in China.

 

I. Principles of Cooperation

 

1. Complying with principles of “Giving
full play to advantages, mutual promotion, long-term cooperation as well as mutual benefit and win-win”, the Parties will
accelerate to promote the development of industry of internet of things for security surveillance and make Guangdong a pilot demonstration
province of SVAC national standard in China and a “Smart Guangdong”.

 

2. The Parties must, during execution of this
Agreement, comply with all laws, regulations and policies of the People’s Republic of China as well as relevant national
requirements on capital construction and investment procedures.

 

    	 

    	 

    

 

II. Manner of Cooperation

 

1. Upon the signing of this Agreement, the
Parties shall discuss to set up a joint project team on time, establish regular monthly communication high-level mechanism based
on the joint project team, and supervise and promote smooth progress of the strategic cooperation.

 

2. For any problems arising out of the cooperation
process, the Parties shall rebuild a relationship of mutual trust with greatest sincerity.

 

III. Contents of Cooperation

 

(I). Vimicro sets down
in Guangdong Province to implement “Starlight China Chip Internet of Things Project” and set up a regional headquarters
in Southern China, with main tasks as follows:

 

1. This project mainly addresses issues including
lack of core technology and information security risks in China’s existing industry of internet of things for security surveillance.
Combining core technology of SVAC national standards and “Starlight China Chip Project” with electronics manufacturing
industry of Guangdong Province, this project implements innovation-driven strategy to promote upgrading and expanding of Guangdong’s
industry of internet of things for security surveillance, making it a strategic emerging industry, and improve Guangdong’s
competitiveness and voice in the global security market and market of internet of things.

 

2. Vimicro implements the project of “Industrialization
Development and Application of Chip System of Starlight China Chip Internet of Things Project-SVAC National Standardized Internet
of Things for Security Surveillance” in Guangdong Province, with a total investment of RMB 1.6 billion; Vimicro will invest
RMB 1.15 billion in capital and core technology of intellectual property rights including patents valuing RMB 0.15 billion, totaling
RMB 1.3 billion, as well as core talent team and business channels.

 

3. Vimicro sets up “Vimicro Guangdong
Corporation” (Temporary name) registered in Guangdong Province as the executor of the project to carry out R & D of technology,
industrialization of achievements and construction of systems engineering as well as the headquarters of Vimicro in Southern China.

 

4. Vimicro sets up “Chip R & D Center
of Internet of Things for Security Surveillance”, “System R & D Center of Internet of Things for Security Surveillance”
and “Guangdong Provincial Research Institute of State Key Laboratory of Digital Multimedia Chip Technology” in Guangdong
Province in a way of combined construction, R & D, achievements and application. Within one year upon the official launch of
above-mentioned bodies, they shall attract talents at home and abroad to establish a team over one hundred persons, forming R &
D system for chips, system and underlying core technology for internet of things for security surveillance. They shall produce
more than three important R & D achievements and apply over 25 patents at home and abroad each year, with technology reaching
international leading level, supporting the implementation and development of “Starlight China Chip Internet of Things Project”
in Guangdong Province.

 

    	 

    	 

    

 

(1) Vimicro establishes
“Chip R & D Center of Internet of Things for Security Surveillance” in Guangdong Province, forming chip technology
R & D system of internet of things for security surveillance, which shall produce over one significant R & D achievement
in the field of chip technology R & D system of internet of things for security surveillance each year and apply over 10 technological
patents at home and abroad, with technology reaching international leading level, supporting the implementation and development
of “Starlight China Chip Internet of Things Project” in Guangdong Province, with specific contents as follows:

 

—The
“Chip R & D Center of Internet of Things for Security Surveillance” will develop and design intelligent HD video
and audio security surveillance chip supporting SVAC national standard, HD video and audio security surveillance chip (supporting
H.265 and H.264 etc.), Starlight image processing chip for low illumination CMOS image sensor, achieve industrialization of R &
D and design achievements, and participate in SoC R & D of the national CHB (Core electronic devices, High-end general chips
and Basic software products) major science and technology special project: SoC R & D and application of HD Real-time Video
Surveillance.

 

—With
heterogeneous multi-core SoC technology solutions, integrated and embedded microprocessors, video and audio digital signal processors
and processing of encrypted and decrypted digital signal, the R & D work of the “Chip R & D Center of Internet of
Things for Security Surveillance” will conduct optimization and chip implementation of independent video and audio codec
algorithm as well as research and implementation of video pre-processing hardware acceleration technology, support 96dB dynamic
video data processing, achieve hardware acceleration function of video structural description, support high-speed retrieval based
on contents, conduct research and implementation of hardware acceleration for intelligent background removal and face detection
technology, conduct research and implementation of chip architecture for real-time and HD video codec with high frame rate. It
will conduct optimization and chip implementation of encryption and decryption algorithms for high throughput source data based
on digital signal processor, and achieve simultaneous video encoding and data encryption and Starlight image processing for low
illumination CMOS image sensor. Chips developed by the “Chip R & D Center of Internet of Things for Security Surveillance”
will have eight technological innovations meeting with specific requirements of internet of things for security surveillance.

 

—The
“Chip R & D Center of Internet of Things for Security Surveillance” participates in SoC R & D of the national
CHB (Core electronic devices, High-end general chips and Basic software products) major science and technology special project:
SoC R & D and application of HD Real-time Video Surveillance, mainly developing video and audio codec in line with SVAC national
standard, achieving hardware acceleration for video preprocessing, face detection, intelligent background removal and video structural
description, supporting encryption processing of code stream, and develop key technology for real-time HD video surveillance SoC
chips.

 

    	 

    	 

    

 

(2) Vimicro sets up “System
R & D Center of Internet of Things for Security Surveillance” in Guangdong Province, forming systemic technology R &
D system of internet of things for security surveillance, which shall produce over one significant R & D achievement in the
field of systemic technology of internet of things for security surveillance each year and apply over 10 technological patents
at home and abroad, with technology reaching international leading level, supporting the implementation and development of “Starlight
China Chip Internet of Things Project” in Guangdong Province, with specific contents as following:

 

—“System
R & D Center of Internet of Things for Security Surveillance” will develop HD web cameras supporting SVAC national standard,
Starlight low illumination HD web cameras, back-end storage XVR products supporting SVAC national standard, achieve industrialization
of R & D and design achievements, and participate in SoC R & D of the national CHB (Core electronic devices, High-end general
chips and Basic software products) major science and technology special project: SoC R & D and application of HD Real-time
Video Surveillance.

 

—“System
R & D Center of Internet of Things for Security Surveillance” will develop Starlight low illumination HD web cameras,
which will fully excel CCD cameras in several core technical parameters and achieve low illumination (The lowest illumination will
reach 0.001 Lux without any supplementary light, 10 times than 1080P CCD cameras), wide dynamic range (90 dB, 16 times than 1080P
CCD cameras) and high speed (1080P up to 100/sec to the fastest), and will fully excel human (naked) eye in several core technical
parameters.

 

—The
“System R & D Center of Internet of Things for Security Surveillance” will participate in SoC R & D of the
national CHB (Core electronic devices, High-end general chips and Basic software products) major science and technology special
project: SoC R & D and application of HD Real-time Video Surveillance, mainly for product development and product prototype
development based on SoC chip to achieve industrial application of chip and the whole product.

 

—The
“System R & D Center of Internet of Things for Security Surveillance” will delve into algorithms, software, system
platform and system solutions in the core areas of internet of things for security surveillance, develop core chip modules of internet
of things for security surveillance, and support companies of internet of things for security surveillance in quickly establishing
a complete industrial chain from technology R & and product development to system applications.

 

(3) Vimicro sets up “Guangdong
Provincial Research Institute of State Key Laboratory of Digital Multimedia Chip Technology” in Guangdong Province, forming
basic core technology research and development system of internet of things for security surveillance, which shall produce over
one significant R & D achievement in the field of systemic technology of internet of things for security surveillance each
year and apply over five technological patents at home and abroad, with technology reaching international leading level, supporting
the implementation and development of “Starlight China Chip Internet of Things Project” in Guangdong Province.

 

    	 

    	 

    

 

—The
“Guangdong Provincial Research Institute of State Key Laboratory of Digital Multimedia Chip Technology” will carry
out research work focusing on chip and system core technology of internet of things for security surveillance, and will participate
in research work of the project of “perception sensitivity expanding theory and core technology based on DPS architecture”
of National Key Basic Research Program (973 Program).

 

—DPS
(Digital Pixel Sensor), a new optical imaging device developed from CMOS, breaks the limitations of traditional CCD and CMOS image
sensors at the source of the pixel level and introduces intelligent processing capability at the bottom pixel level of the image
sensor by upgrading the simulation pixel to digital pixel, making the device has technology advantages including higher sensitivity,
wider dynamic range, higher frame rates and lower power consumption.

 

—Participating
in research work of the above-mentioned 973 Program, the “Guangdong Provincial Research Institute of State Key Laboratory
of Digital Multimedia Chip Technology” will carry out systematic innovation research on perception sensitivity expanding
theory and core technology based on DPS architecture, which will achieve theoretical innovation and technological breakthroughs
in multi levels including perception sensitivity expanding, representation model and feedback of information efficient structural
features and sensor chip technology and system, significantly improving the perception level and capability of the devices to the
objective world, China’s independent innovation capabilities and international competitiveness in the information perception
field, and making China stay in a leading position in the high-end sensing and computing perception in the world.

 

5. Vimicro establishes “Zhonghan (John)
Deng’s Academician Workstation” and “Enterprise Postdoctoral Workstation” in Guangdong Province to enhance
R & D of core technology and attract academicians, experts, talent for 1000 Talent Plan, returning overseas high-caliber talent
and domestic high-caliber talent to participate in the work.

 

6. It promotes and puts into use SVAC national
standard, actively participates in construction of major projects including security surveillance, intelligent transportation,
emergency management, skynet project, safe city and smart city in Guangdong Province, and completes the important task of making
Guangdong a pilot demonstration province of SVAC national standard in China and building a “Smart Guangdong”.

 

7. It ensures lawful operation and taxation
of companies including “Guangdong Vimicro Electronics Co., Ltd.”, “Chip R & D Center of Internet of Things
for Security Surveillance”, “System R & D Center of Internet of Things for Security Surveillance” and “Guangdong
Provincial Research Institute of State Key Laboratory of Digital Multimedia Chip Technology” established in Guangdong Province.

 

    	 

    	 

    

 

(II). People’s Government
of Guangdong Province actively support Vimicro in implementing “Starlight China Chip Internet of Things Project”.

 

1. People’s Government of Guangdong Province
allocates financial funds of RMB 300 million to support Vimicro in implementing the project of “Industrialization Development
and Application of Chip System of Starlight China Chip Internet of Things Project-SVAC (Surveillance Video and Audio Coding) National
Standardized Internet of Things for Security Surveillance” in Guangdong Province for the construction and R & D of “Chip
R & D Center of Internet of Things for Security Surveillance”, “System R & D Center of Internet of Things for
Security Surveillance” and “Guangdong Provincial Research Institute of State Key Laboratory of Digital Multimedia Chip
Technology”.

 

2. Funds by installments are arranged as the
following as agreed:

 

(1) Within one month upon the signing of this
Agreement, Vimicro will register and set up “Guangdong Vimicro Electronics Co., Ltd.”, and launch implementation of
the project and construction work of “Chip R & D Center of Internet of Things for Security Surveillance”, “System
R & D Center of Internet of Things for Security Surveillance” and “Guangdong Provincial Research Institute of State
Key Laboratory of Digital Multimedia Chip Technology”.

 

Within one month upon registration of “Guangdong
Vimicro Electronics Co., Ltd.”, Department of Finance of Guangdong Province launches procedures of funds by installments
and transmits RMB 100 million to Zhuhai City, who will allocate the money to “Guangdong Vimicro Electronics Co., Ltd.”
in accordance with regulations;

 

(2) Within one month upon the initial launch
of research work of “Chip R & D Center of Internet of Things for Security Surveillance”, “System R &
D Center of Internet of Things for Security Surveillance” and “Guangdong Provincial Research Institute of State Key
Laboratory of Digital Multimedia Chip Technology”, FPGA operation of the first chip of the project and prototype development
of the first products (expected in the fourth quarter of 2014), and after related R & D objectives organized and passed by
organizations including Economic & Information Commission of Guangdong Province, Department of Public Security of Guangdong
Province and Department of Science and Technology of Guangdong Province, Department of Finance of Guangdong Province launches procedures
of funds by installments and transmits RMB 100 million to Zhuhai City, who will grant the money to “Guangdong Vimicro Electronics
Co., Ltd.” in accordance with regulations;

 

(3) Within one month upon the overall launch
of research work of “Chip R & D Center of Internet of Things for Security Surveillance”, “System R &
D Center of Internet of Things for Security Surveillance” and “Guangdong Provincial Research Institute of State Key
Laboratory of Digital Multimedia Chip Technology”, industrialization of successful NRE vilification of the first chip, successful
development of chip module and successful application of products (expected in the second quarter of 2015), and after related R
& D objectives organized and passed by organizations including Economic & Information Commission of Guangdong Province,
Department of Public Security of Guangdong Province and Department of Science and Technology of Guangdong Province, Department
of Finance of Guangdong Province launches procedures of funds by installments and transmits RMB 100 million to Zhuhai City, who
will allocate the money to “Guangdong Vimicro Electronics Co., Ltd.” in accordance with regulations;

 

    	 

    	 

    

 

3. People’s Government of Guangdong Province
promotes and puts into use SVAC national standard in Guangdong Province, and actively puts forward completion of the important
task of making Guangdong a pilot demonstration province of SVAC national standard in China.

 

4. All competent departments at all levels
of Guangdong Province intensively cooperate with “Guangdong Vimicro Electronics Co., Ltd.” in fields including security
surveillance, intelligent transportation, emergency management, skynet project, safe city and smart city in Guangdong Province,
actively deploy technology and products meeting with SVAC national standard in government projects, and accelerate the development
of the industry of internet of things for security surveillance in Guangdong supporting by the above-mentioned project.

 

5. The local government where the project set
down shall provide “Guangdong Vimicro Electronics Co., Ltd.” with land for construction of R & D centers, industry
base, operation headquarters and supporting buildings the project needs in areas with convenient transportation, communication,
living and supporting industries.

 

6. People’s Government of Guangdong Province
provides relevant preferential policies of attracting investment of Guangdong Province and the place where the project sets down
for “Guangdong Vimicro Electronics Co., Ltd.”, projects the Company invested and talent introduced.

IV. Fund Supervision and Liabilities for Breach
of Agreement.

 

1. Party B promises to use funds Department
of Finance of Guangdong Province allocated in accordance with regulatory requirements of Department of Finance of Guangdong Province,
earmarking the fund for its specified purpose only.

 

2. Party A shall be entitled to supervise and
check the use of allocated funds. Party B shall closely cooperate with check Party A organized and provide relevant documents and
proof of special funds Department of Finance of Guangdong Province allocated.

 

3. If, after this Agreement enters into force,
due to Party B’s breach of this Agreement, Party A has the right to recover funds Department of Finance of Guangdong Province
allocated.

 

V. Confidentiality Clause

 

1. If one Party discloses any documents and
information including non-public information about the cooperative project (including business plans, pricing information, financial
information, customer information, etc.) (“Disclosing Party”) before or after the signing of this Framework Agreement,
the other Party receiving such documents or information shall strictly keep them secret, and shall not disclose such documents
or information in any ways and use or take advantage of them for any purposes beyond the cooperative project without written consent
of the Disclosing Party.

 

    	 

    	 

    

 

2. Upon expiration and/or termination of this
Framework Agreement, this confidentiality clause shall still take effect, and the Parties shall still perform confidential obligations
they promised.

 

VI. Force Majeure

 

If, due to unforeseen, unavoidable and insurmountable
events including fire, drought, typhoon, heavy snow, earthquake, war or adjustment of policies and laws and regulations (force
majeure), which make either Party fails to fully or partly perform obligations in this Framework Agreement upon the signing of
this Framework Agreement, all or part liabilities for breach of this Framework Agreement arising out of force majeure can be exempted
in accordance with impact of force majeure.

 

VII. Miscellaneous

 

1. Any dispute arising from or related to this
Framework Agreement shall be first settled through friendly consultation between the Parties. For dispute not settled after 15
days upon occurrence, either Party shall be entitled to submit the dispute to Guangzhou Arbitration Commission for arbitration
in accordance with its arbitration regulations. The arbitral award is final and binding on both Parties.

 

2. The Parties, upon the signing of this Framework
Agreement, shall assume all expenses the Parties shall assumed respectively for the cooperative project.

 

3. This Agreement shall be served in quadruplicate,
with each Party holding two, and shall have the same legal effect, and shall take effect upon the date signatures affixed and sealed
by legal representatives or entrusted representatives of the Parties. The Expiry Date shall be end on the date the Parties terminate
their cooperation with written confirmation.

 

4. For matters not included herein, the Parties
may consult with each other to determine.

 

	Party A:	 	Party B:
	the Economic & Information Commission of Guangdong Province	 	Vimicro Corporation
	Signature: [Chop affixed]	 	Signature: [Chop affixed]
	February 27th, 2014	 	February 27th, 2014Exhibit 4.24

 

English Translation for Reference

 

Zhuhai Hengqin New Area Administrative Committee

 

Vimicro Corporation

 

Cooperation Agreement

  

May 2014

 

    	 

    	 

    

 

Party A: Zhuhai Hengqin New Area Administrative
Committee

Director: Niu Jing

Address: No. 41, Dezheng Street, Hengqin New
Area, Zhuhai City

 

Party B: Vimicro Corporation

Legal Representative: Zhonghan (John) Deng

Address: 16/F, Shining Tower, No.35, Xueyuan
Road, Haidian District, Beijing

 

In accordance with the “Strategic Cooperation
Framework Agreement on the Project of ‘Industrialization Development and Application of Chip System of Starlight China Chip
Internet of Things Project-SVAC National Standardized Internet of Things for Security Surveillance’” (the “Strategic
Cooperation Framework Agreement”) entered into by and between The Economic & Information Commission of Guangdong Province
and Vimicro Corporation in Guangzhou on February 27th, 2014, Vimicro Corporation decides to place the project of “Industrialization
Development and Application of Chip System of Starlight China Chip Internet of Things Project-SVAC National Standardized Internet
of Things for Security Surveillance” (the “Project”) in Hengqin of Zhuhai City. Through friendly consultation
between the Zhuhai Municipal People’s Government and Vimicro Corporation, Zhuhai Hengqin New Area Administrative Committee
and Vimicro Corporation sign this cooperation agreement to specify the implementation, construction and other matters about this
Project.

 

		I.	Principles of Cooperation

 

(I) The Parties cooperate with each other by
complying with principles of “Giving full play to advantages, mutual promotion, long-term cooperation as well as mutual benefit
and win-win”.

 

(II) The Parties’ cooperation project
shall be in accordance with the “Overall Development Plan of Hengqin”, “Controlling Detailed Regulations of Hengqin
New Area”, “Guiding Catalogue of Industrial Development in Hengqin New Area” and other plans.

 

(III) The Parties must, during the execution
of this Agreement, comply with laws, regulations and policies of the People’s Republic of China, Guangdong Province, Zhuhai
City and Hengqin.

 

		II.	Contents of Cooperation

 

(I) Party B invests and constructs the project
of “Industrialization Development and Application of Chip System of Starlight China Chip Internet of Things Project-SVAC
National Standardized Internet of Things for Security Surveillance” in Hengqin New Area, and sets up a regional headquarters
in Southern China.

 

    	 

    	 

    

 

1. Main contents of the Project include but
not limited to: setting up “Chip R & D Center of Internet of Things for Security Surveillance”, “System R
& D Center of Internet of Things for Security Surveillance” and “Guangdong Provincial Research Institute of State
Key Laboratory of Digital Multimedia Chip Technology” in a way of combined construction, R & D, achievements and application.
Party B shall form R & D system for chips, system and underlying core technology for internet of things for security surveillance,
and produce more than three important R & D achievements and apply over 25 patents at home and abroad each year, with technology
reaching international leading level, supporting the implementation and development of “Starlight China Chip Internet of
Things Project” in Guangdong Province.

 

2. Party B registers and sets up Vimicro Guangdong
Corporation, and operates the project of “Industrialization Development and Application of Chip System of Starlight China
Chip Internet of Things Project-SVAC National Standardized Internet of Things for Security Surveillance” to carry out contents
of the Project; Vimicro Guangdong Corporation, as Vimico’s regional headquarters in Southern China, whose business of geographical
scope includes but not limited to Guangdong Province, Guangxi Province, Hainan Province and Macau, and carries out business in
Hong Kong and Taiwan hereto.

 

(II) Party B undertakes to invest a minimum
of investment intensity for the Project in accordance with regulations of “Measures for Hengqin New Area Investment (Land)
Project Access”, formulate implementation plan of project development and construction in accordance with the project planning,
determinate annual investment arrangement, and promote the construction of the project by strictly complying with annual investment
plan. The total amount of investment the Project is RMB 1.6 billion, among which Party B and Vimicro Guangdong Corporation shall
self-raise and invest RMB 1.3 billion (including RMB 1.15 billion in capital and RMB 0.15 billion in core technology of intellectual
property rights including patents), and invest core talent team and business channels. During the implementation of the Project,
Party B and Vimicro Guangdong Corporation will invest and introduce a series of special talent including one academician, four
winners of the first prize of National Science and Technology Advancement Award, two of 1000 Talent Plan (the Recruitment Program
of Global Experts), three leaders of National Science and Technology Major Project of China, three chief scientists and project
leaders of 973 Program (National Program on Key Basic Research Project of China) and three main players formulating SVAC national
standard, etc.

 

(III) Party B undertakes that implementation
schedule of the pilot demonstration project of SVAC national standard in Hengqin shall be made by 2014, 2016 and 2017 as the major
time schedules.

 

(IV) Party B undertakes, within three months
upon the signing of this Agreement, to set up the regional headquarters in Southern China in Hengqin New Area to pool resources
and carry out business in Hengqin New Area. It shall begin to have revenues and pay taxes in 2014 and gain at least 20% annual
growth before 2020.

 

(V) Party A will assist Party B in applying
for pilot demonstration project of SVAC national standard Party B invest and implement in Hengqin New Area, to which relevant projects
in Hengqin New Area in the future will give priority to use technology and equipment of Vimicro, and actively support and participate
in the major program of making Guangdong a pilot demonstration province of SVAC national standard in China.

 

    	 

    	 

    

 

(VI) Party A undertakes to create favorable
investment environment in accordance with the “Overall Development Plan of Hengqin” and 12th Five-Year Plan,
and will present full guidance, assistance and cooperation to the Project in aspects including land transfer, project approval,
feasibility studies and environmental impact assessment, energy assessment, safety evaluation, business tax registration and approval
of fire-fighting.

 

(VII) Party A undertakes that Party B, its
partners and introduced companies that have registered in Hengqin New Area enjoy preferential policies the State and Guangdong
Province endowed to Hengqin New Area, including personal income tax incentives for staff from Hong Kong and Macao and high-caliber
talent working in Hengqin New Area.

 

		III.	Cooperation Matters on Land and Construction

 

(I) Party A actively supports Party B in investing
and constructing the project of “Industrialization Development and Application of Chip System of Starlight China Chip Internet
of Things Project-SVAC National Standardized Internet of Things for Security Surveillance” in Hengqin New Area. The project
site Party A recommended is a block locates between Zhongxin Street and Hong Kong-Macau Street in Hengqin New Area (Please see
location of the block in Annex hereto), with a function of land use as “high-tech industry (R & D office) and staff living
facilities (accommodation)”, and a planned land area of about 66,700 square meters, a plot ratio of 2.0 and total floorage
of about 133,400 square meters, including 298 staff living facilities (accommodation) with each one not over 110 square meters
(floorage) that can be separately divided into different units for Certificate of Real Estate Ownership. The staff living facilities
(accommodation) shall be only available to staff of Vimicro, specific management measures shall be separately formulated by Party
B. The land use planning index regulated in the Land Use Right Transfer Contract shall prevail.

 

(II) Party A will transfer the land in a way
of public listing in accordance with relevant national regulations, and Party B undertakes that Vimicro Guangdong Corporation gains
the land by participating in auction. Party A undertakes that the land price per floor area of the project land shall be RMB 1,200/
sq.m. ( consolidated price by total capacity of the construction area). Party B undertakes that Vimicro Guangdong Corporation participate
in bidding with such price, and land listing time shall be consulted by and between the Parties separately.

 

(III) Party A provides the land according to
the status quo of development and construction of Hengqin New Area. Party A undertakes to meet requirements of water and power
supply for the construction of the project site before the construction of the Project, and complete construction of civil supporting
facilities including road, water (water supply, rainwater and sewage), power, electricity and gas to the red line of the Project
land before completion of this Project (the “Contract for State-Owned Construction Land Use Right Assignment of Zhuhai City”
shall prevail).

 

    	 

    	 

    

 

(IV) Hengqin New Area implements a system of
“performance bond for land assignment”. Upon successful biding of the project land, Party B transfers land bidding
bond totaling 30% of the initial total land price paid by Party B to “performance bond for land assignment”, among
which 10% shall be paid in capital and 20% in performance bond. Party A shall return performance bond for land assignment to Party
B in the following ways: Party A will return 30% of performance bond for land assignment to Party B in case that Party B gains
builder’s license for pile foundation project and begins to construct at agreed time; Party A will return 50% of performance
bond for land assignment to Party B in case that Party B gains builder’s license for main structure and begins to construct
at agreed time and reaches a building elevation over ±0.00; Party A will return 20% of performance bond for land assignment
to Party B in case that Party B complete all single buildings at agreed time.

 

(V) Party B, upon the signing of this Agreement,
shall immediately entrust professional institute to compile project planning in accordance with construction requirements of the
Project, which shall be in accordance with requirements of plans including the “Overall Development Plan of Hengqin”
and “Control Detailed Regulations of Hengqin New Area”, and the site plan of the Project shall be submitted to relevant
agency for approval and be implemented upon such approval. The design of space, building environment and forms within the block
shall be in accordance with planning requirements including “Hengqin New Area Urban Design Guidelines”.

 

(VI) Party B, during the construction of the
Project, shall actively cooperate with Party A on registration of an institution in Hengqin New Area with legal person status and
independent accounting for construction companies not registered in Hengqin New Area, and ensure that units participating in construction
will include construction output of the Project into the GDP statistics of Hengqin by taking effective measures.

 

(VII) Party B, within 12 months after the singing
date of “Contract for State-Owned Construction Land Use Right Assignment of Zhuhai City” (the “Contract for Land
Assignment”), shall officially start construction (Party A must assist Party B in completing all formalities to start construction);
reach a building elevation over ±0.00 within 24 months after the signing date of the Contract for Land Assignment; complete
the main structure within 33 months after the signing date of the Contract for Land Assignment; and compete the construction within
48 months after the signing date of the Contract for Land Assignment. In case delay of the progress due to approval of relevant
government departments or Party A’s late performance of obligations hereby (including delay of land delivery time and delay
of supporting facilities beyond the red line), the above-mentioned official start time and construction progress may be extended
accordingly.

The “official start” in this Agreement
refers that the land project has gained pile foundation construction permit for the main structure and the pile foundation construction
has been started to construct.

 

(VIII) Vimicro Guangdong Corporation, as Vimicro’s
regional headquarters in Southern China, implements economic projects of the headquarters in accordance with “Disposal and
Approval Measures for Limiting Sales of Property on the Land Project in Hengqin New Area”, with 70% non-residential property
limiting sale (does not affect the financing), among which 50% is held by the company won the bidding (registered in Hengqin) who
can apply for approval for sales after five years upon acceptance of the Project; other 20% property can be sold to related units
(including parent company of the company won the bidding, subsidiaries, shareholders’ companies and highly associated companies).

 

    	 

    	 

    

 

		IV.	Support from Zhuhai Municipal People’s Government and Zhuhai Hengqin New Area Administrative
Committee

 

(I) Zhuhai Municipal People’s Government
actively supports Vimicro Corporation in setting down in Hengqin New Area and implementing Starlight China Chip Internet of Things
Project.

 

1. In accordance with the financial funding
of the Project specified in this “Strategic Cooperation Framework Agreement”, Zhuhai Municipal People’s Government
agrees to allocate financial funds of RMB 60 million to the project of “Industrialization Development and Application of
Chip System of Starlight China Chip Internet of Things Project-SVAC National Standardized Internet of Things for Security Surveillance”
in Hengqin New Area.

 

2. Funds by installments are arranged as the
following as agreed:

(1) Upon the first RMB 100 million to Zhuhai
City by Department of Finance of Guangdong Province and the allocation procedures of the first supporting funds of RMB 20 million
by Zhuhai Finance Bureau, Zhuhai Finance Bureau will allocate the first funds and supporting funds to Vimicro Guangdong Corporation
in accordance with regulations;

 

(2) Upon the second RMB 100 million to Zhuhai
City by Department of Finance of Guangdong Province and the allocation procedures of the second supporting funds of RMB 20 million
by Zhuhai Finance Bureau, Zhuhai Finance Bureau will allocate the second funds and supporting funds to Vimicro Guangdong Corporation
in accordance with regulations;

 

(3) Upon the third RMB 100 million to Zhuhai
City by Department of Finance of Guangdong Province and the allocation procedures of the third supporting funds of RMB 20 million
by Zhuhai Finance Bureau, Zhuhai Finance Bureau will allocate the third funds and supporting funds to Vimicro Guangdong Corporation
in accordance with regulations;

 

3. Zhuhai Municipal People’s Government
coordinates and arranges 10 talent apartments to address transition of high-caliber talent during the preparation period of the
Project.

 

4. Zhuhai Municipal People’s Government
actively participates in completion of the important task of making Guangdong a pilot demonstration province of SVAC national standard
in China, and promotes application of SVAC national standard in Zhuhai City.

 

5. All competent departments at all levels
of Zhuhai City intensively cooperate with “Vimicro Guangdong Corporation” in fields including security surveillance,
intelligent transportation, emergency management, skynet project, safe city and smart city in Guangdong Province, actively deploy
technology and products meeting with SVAC national standard in government projects, and accelerate the development of the industry
of internet of things for security surveillance in Zhuhai supporting by the above-mentioned project.

 

    	 

    	 

    

 

6. Zhuhai Municipal People’s Government
provides relevant preferential policies of attracting investment of Zhuhai City and the place where the project sets down for Vimicro
Guangdong Corporation, projects the Company invested and talent introduced.

 

(II) Party A actively provides support including
office and living facilities for the Project upon the establishment of Vimicro Guangdong Corporation

 

1. Party A shall first provide Vimicro Guangdong
Corporation the premises about 2,500 square meters for R &D, manufacturing, operation office and demonstration house for the
transition period; upon the signing date of the lease contract of the above-mentioned premises, Party A shall provide Vimicro Guangdong
Corporation full rent subsidies for two years. Party B shall complete decorations and put it into use and for demonstration before
November 2014.

 

2. Party A coordinates and arranges 10 talent
apartments for the talent team of Vimicro Guangdong Corporation, as well as implementation of talent apartments and studios in
the area to guarantee the launch and implementation of the Project. For the total 20 talent apartments coordinated and arranged
by Zhuhai Municipal People’s Government and Party A, upon the signing date of such lease contract, Party A shall provide
Vimicro Guangdong Corporation full rent subsidies for three years.

 

		V.	Fund Supervision and Liabilities for Breach of Agreement

 

1. Party B undertakes use funds Zhuhai Finance
Bureau allocated in accordance with regulatory requirements of Zhuhai Finance Bureau, earmarking the fund for its specified purpose
only.

 

2. Zhuhai Science, Technology, Industry, Trade
and Information Technology Bureau shall be entitled to supervise and check the use of allocated funds.

 

3. If, after this Agreement enters into force,
due to Party B’s breach of this Agreement, Party A has the right to recover funds allocated by Zhuhai Finance Bureau.

 

		VI.	Cooperation Mechanism

 

(I) Party A sets up a Project Promotion Leading
Group and Party B sets up a Project Preparation Work Group to jointly be responsible for pushing forward daily coordination and
the Parties’ cooperation and consultation work.

 

(II) The Parties shall sets up regular high-level
communication mechanism between Hengqin New Area and Vimicro (Hengqin) to consult settlement of the major issues of cooperation.

 

		VII.	Confidentiality Clause

 

(I) The Parties shall keep the other Party’s
materials gained upon the signing and execution of this Agreement and in secret. Without the need of performing this Agreement
or either Party’s consent, the Parties shall not directly or indirectly disclose such information to any third party.

 

    	 

    	 

    

 

(II) The Parties agree to take all reasonable
efforts to prevent any related staff or other staff from illegally use or disclose any confidential information and materials.

 

		VIII.	Supplementary Clauses

 

(I) This Agreement shall be served in six copies,
with each Party holding three.

 

(II) This Agreement shall take effect upon
the date signatures affixed and sealed by legal representatives or entrusted representatives of the Parties to express the Parties’
contents of cooperation and intents. Upon the signing of this Agreement, the Parties shall actively carry out relevant work and
implement specific clauses.

 

(III) For matters not included herein, the
Parties may consult with each other to sign a supplementary agreement, which shall have the same legal effect with this Agreement.

 

(IV) Within six months upon the signing date
of this Agreement, if Party B fails to get the land, this Agreement will be automatically become invalid; if Party B gets the land,
the Parties shall continue to perform this Agreement.

 

    	 

    	 

    

  

(This page shall be the Signature Page.)

Party A: Zhuhai Hengqin New Area Administrative
Committee (Seal)

Representative: (Signature): [Chop affixed]

Date: May 29th, 2014

 

Party B: Vimicro Corporation (Seal)

Representative: (Signature): [Chop affixed]

Date: May 29th, 2014

 

    	 

    	 

    

  

Annex: Location of the Block

 

Projected site selection of the Project

Zhongxin Street

Hong Kong-Macau Street

 

Covering an area of about 100 mu

Function of land use: office , R & D and
part living facilities

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