Exhibit 4(h)
Land Lease Agreement
(86)-Nan-Di-Zi-No. 005
This Lease Agreement made and entered into by and between the Lessor, Xxxxxx
Export Processing Zone Administration of Ministry of Economic Affairs
(hereinafter referred to as "Party A") and the Lessee, ASE Test Inc.
(hereinafter referred to as "Party B").
Whereas, it is mutually agreed between the parties that a parcel of public land
inside the Xxxxxx Export Processing Zone ("Zone") managed by Party A is to be
leased to Party B on the terms and conditions as follows:
1. Land markings, rent and fees:
---------------------------------------------------------------------------------------------------
Leased Public facility
No. Area rent/m2 rent/month construction
Markings of Land (m2) (NTD) (NTD) fee/month (NTD) Note
---------------------------------------------------------------------------------------------------
District District Land
& of the Lot.
Section Zone No.
---------------------------------------------------------------------------------------------------
5 720 4030 11.50 46,345.00 0
Xxxxxx
Xxxxxxxx
CL026 Heping
Section
Sub-Section
2
---------------------------------------------------------------------------------------------------
Total 4030 11.50 46,345.00 0
---------------------------------------------------------------------------------------------------
2. The term of this lease shall start from January 1, 1997 and end on December
31, 2006, for a total of ten years.
3. The use of the leased land shall be limited to the construction of a plant,
warehouse, or work site for transportation, loading and unloading,
packaging and repair by the approved enterprises engaging in export
business ("Enterprises"), or to the establishment of a branch office by the
competent authority. In the event that the Enterprises lease the plant base
due to the purchase of the standard plant inside the Zone, the area of
leased land shall be the area of the plant base.
4. During the validity of this lease, Party B shall, on its own initiative,
apply for return of the leased land when the lease is no longer desired.
Party B shall not sub-let or loan part or whole of the land to a third
party.
5. Party B shall pay Party A NT$46,345 as specified under Article 1 of this
Agreement before the fifth date of each month to the national treasury
agent appointed by Party A. In the event of arrears in payment for the
rent, Party B agrees to pay, in addition to the rent, fines for penalty as
calculated per the formulae below:
a. an additional 5% of the annual rental for arrears in payment for over
one month and less than two months;
b. an additional 10% of the annual rental for arrears in payment for over
two months and less than three months;
c. an additional 15% of the annual rental for arrears in payment for over
three months and less than four months; and
d. in the event that arrears in payment for the rental, fees and penalty
of fines have exceeded four months, in addition to pursuing the
arrears, Party A may terminate this Agreement and demand Party B to
move out of the Zone.
6. During the term of this Agreement, should the government announce any
adjustment of land value, Party B agrees to adjust the rent accordingly
from the 1st date of following month. Party B shall not raise any
objection.
7. In addition to effecting rental payment each month, Party B shall also
4(h)-2
pay NT$2.79 per square meter as the public facilities construction fee each
month for a 10-year period according to Article 11 of the Establishment and
Management of the Export Processing Zone Act.
8. In the event that Party B applies to lease this parcel of land for the
construction of plant or other buildings, Party B shall commence the
fabrication within three months after the execution of this Agreement and
shall complete the construction on schedule. Party A may immediately
terminate this Agreement and recall the leased property should it occur
that Party B has not commenced the fabrication after the deadline or, where
the delay of the construction is agreed by Party A, Party B has failed to
commence the fabrication or to complete the construction on schedule. In
which case, the rent and the public facility construction fee already paid
by Party B shall not be refunded. In addition, Party A may have the right
to dispose at its discretion the uncompleted structure on the leased
property or demand Party B to remove the uncompleted structure according to
the applicable laws, and Party B shall not raise any objection.
9. When it is necessary for Party B to excavate the road, the drainage system,
the piping lines or other public facilities inside the Zone for the
construction of the plant or building, Party B must obtain prior approval
from Party A and shall pay a security deposit to Party A. Upon completion
of the construction, the site must be resumed to its original condition by
Party B. Party A may forfeit the security deposit if Party B is in breach
of its liabilities provided in this Article.
10. Party A may notify Party B to terminate this Agreement should any of the
following events occur:
a. Party B has breached this Agreement in the use of the leased property;
b. Party B is in arrears of rental payment amounting to four months; and
c. the Agreement is terminated in compliance with the Civil Code or Land
Act.
11. In the event that Party B wishes to renew this Agreement upon expiry, Party
B may file an application with Party A three months prior to the expiry of
this Agreement. Should Party B fail to file for renewing this Agreement,
Party B shall surrender the land upon expiry of this Agreement. All
structures on the leased land that belong to Party B
4(h)-3
shall, within six months, be resold to the qualified assignee that engages
in export business as approved by Party A or its sub-department. In
addition, Party B shall effect the rental payment in accordance with
Article 5 of this Agreement within the six-month period. In the event that
Party B fails to comply with this Article 11 or fails to complete the
required procedure within six months, Party A may dispose, at its sole
discretion, all the equipment and facilities inside or outside the building
on the leased land according to the applicable laws, and Party B shall not
raise any objection.
12. This Agreement is executed in duplicate with each party holding one copy.
This Agreement shall be effective upon execution. All disputes which may
arise in connection to or out of this Agreement shall be referred to the
courts appointed by Party A as the court of first instance.
The Contracting Parties:
Party A: Xxxxxx Export Processing Zone Administration (with seal)
By: Ding-bai Pan
Add: 000, Xxx-xxxxx Xxxx, Xxxxxx Xxxxxxxx, Xxxxxxxxx
Party B: ASE Test Inc. (with seal)
By: Chen-xxxxx Xxxxx
Add: 0X, Xx.00, Xxxxx Xxxx, Xxxxxx Export Processing Zone, Kaohsiung
Corporate License No.: Xxxx-Xxx-Xxx-Xxxxx-Zi-3139
Dated: January 3, 1997
(With Official Seal)
4(h)-4
