Document:

Exhibit 10.25

 

(94) Nanerjianzi No. 027

 

Manufacturing and Export Zone Administrative Department,

Ministry of Economy Land Lease Contract

 

Phillips Electronic Building Elements
Industries (Taiwan) Ltd (“Party B”) leases the public land in Nanzi Manufacturing
and Export Zone from Manufacturing and Export Zone Administrative Department,
Ministry of Economy (“Party A”). Party A and Party B hereby enter in the lease
contract as follows:

 

1.      Place, Rent and expenses of the Land

 

	
  Place of
  the land

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Public

  	
   

  	
   

  
	
  (Place
  drawing is annexed hereinafter.)

  	
   

  	
   

  	
   

  	
  Right

  	
   

  	
   

  	
   

  	
  facilities

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Number

  	
   

  	
  Leased

  area

  (m3)

  	
   

  	
  scope

  	
   

  	
   

  	
   

  	
  construction

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  of the

  	
   

  	
   

  	
  of the

  	
   

  	
  Rent

  	
   

  	
  expense

  	
   

  	
   

  
	
  Zone

  	
   

  	
  Section

  	
   

  	
  Sub-section

  	
   

  	
  land

  	
   

  	
   

  	
  lease

  	
   

  	
  (dollar/month)

  	
   

  	
  (dollar/month)

  	
   

  	
  Remarks

  
	
  Nanzi District

  	
   

  	
  Heping section

  	
   

  	
  Second

  	
   

  	
  711

  	
   

  	
  8,781

  	
   

  	
  2/16

  	
   

  	
  12,627

  	
   

  	
  0

  	
   

  	
  Approved for

  lease the land

  hereunder by the letter of

  Jingjiachu

  erjianzi No.

  09401019340 on

  June 16, 2005

  with an area of

  1,468 (m2). 

  
	
   

  	
   

  	
   

  	
   

  	
  Apportioned public facility
  land

  	
   

  	
   

  	
   

  	
  370

  	
   

  	
  1/1

  	
   

  	
  4,255

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (The following is blank.)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  16,882

  	
   

  	
  0

  	
   

  	
   

  

 

2       The lease term is totally ten years from August 16, 2005 to August 15,
2015.

3.      The land leased hereunder will be only used by approved enterprise
operating businesses within the zone for constructing offices, factory
buildings, warehouses or premises. Party B shall not request to set surface
rights on the leased land.

4.      Within the period of the contract, if Party B does not continue using
the whole or part of the land leased by it, it shall apply to Party A for canceling
the lease, but shall not sublease or lend the land to other persons.

5.      If Party B applies for leasing land for constructing factory buildings
or other buildings by itself, it shall set back the buildings according to the
relevant provisions of the Manufacturing and Export Zone. The greening,
maintenance and management of the setback land shall be conducted by Party B at
its own expense.

6.      If Party B applies for leasing land for constructing factory buildings
or other

 

 

buildings
by itself, such construction shall be based on the principle of constructing
storied buildings and necessary accessory buildings of the storied
buildings.  The building coverage and
plot ratio shall be in compliance with the relevant buildings laws.

7.      If the leased land currently is used as public facilities, Party A will
administer the land as a whole, and Party B shall not claim that the land shall
be used for building or other purpose.

8.      Party B shall automatically pay the treasury agency as designated by
Party A the rent and expenses totally 16,882 New Taiwan Dollars as set forth in
Article I hereof before the fifth day of each month.  If Party B fails to make the payment after
the payment day, liquidated damages will be additionally charged as follows:

8.1    If the delay is more than one month but less than two months, 5% of the
total amount of the rent and expenses will be additionally charged.

8.2    If the delay is more than two months but less than three months, 10% of
the total amount of the rent and expenses will be additionally charged.

8.3    If the delay is more than three months but less than four months, 15%
of the total amount of the rent and expenses will be additionally charged.

8.4.   If Party B fails to pay off the rent, expenses and liquidated damages
after four months from the payment day, Party A may recover the rent, expenses
and liquidated damages and immediately terminate the contract.

 

9.      Besides paying the rent monthly, Party B shall pay the public facility
construction expenses as provided for in Article II of Manufacturing
and Export Zone Setup and Administration Ordinance for up to twenty
years for each plot.  If there are additionally
increased facility construction expenses during the lease term, Party B also
shall pay such expenses according to the relevant provisions.

 

10.    In the event the government prescribes the land price over again, the rent
hereunder will be adjusted according to the new land price from the 1st day of
the month following the proclamation of new land price.

 

11.    If Party B leases the land for constructing factory buildings or other
buildings by itself, it shall pay the completion deposit according to Key Points of the Payment of Completion Deposit for Leasing Land to
Construct Buildings in Manufacturing and Export Zone before commencing
the construction and shall apply for the construction license within three months
from the execution of the contract. 
After obtaining the license, Party B shall commence the
construction.  If Party B fails to
commence the construction within the stipulated period or though Party B
applies for postponing the commencement but fails to commence the construction
upon expiration of the postponed period or fails to complete the construction
according to the plan, Party A may terminate the contract, withdraw the land
and cancel the construction license.  The
rent and public facility construction expenses already paid will not be
refunded.  If there are uncompleted
buildings or works on the land, Party B shall remove them and restitute the
original state within three months after

 

 

Party
A notified that the contract is terminated by Party A.  If Party B fails to complete such treatment
on schedule, Party A may forfeit the completion deposit.

 

The
completion deposit will be refunded according to the progress of the project
and proportion without interest pursuant to the aforesaid Key Points after
Party B commences the construction.

 

12.    Party A may terminate the contract by notifying Party B and withdraw
the land under any of the following circumstances during lease term:

12.1  The investment scheme of the Manufacturing and Export Zone is
cancelled.

12.2  The buildings owned by Party B are purchased or requisitioned for value
according to the relevant provisions of Manufacturing and Export
Zone Setup and Administration Ordinance.

12.3  The use of the land by Party B breaches the provisions of this
contract.

12.4  Party A needs withdrawing all or part of the land for its own use.

12.5  The contract may be terminated according to the Civil Law and
Land Law.

 

13.    If the contract is terminated according to the foregoing Article, Party
B shall promptly return the land and transfer its buildings on the land to
other enterprises operating businesses within the zone as approved by the
administrative department or branch department within two years.  If Party B fails to conduct such treatment or
fails to complete such treatment within two years, Party A may dispose of such
buildings according to the law.

 

14.    If Party B needs reletting the land upon expiration of the lease term,
it shall apply for reletting in writing three months prior to the expiration of
the lease term.  If Party B does not apply
for reletting upon expiration of the foregoing three months period, it shall
immediately return the land upon expiration of the lease term.  Party B shall transfer its buildings on the
land to other enterprises operating businesses within the zone as approved by
the administrative department or branch department within six months.

 

15.    Upon termination of this contract or if Party B does not relet the land
upon expiration of this contract, impairment money will be charged according to
the standard of land rent and expense of the Manufacturing and Export Zone for
the period during which the land is occupied by original Party B.  In the event of overdue payment, additional
interest will be charged at the annual interest rate 5% till the payment day.

 

16.    In the event the relevant laws are amended during the period of the
contract and the provisions of this contract are affected by such amendment,
the amended provisions shall prevail from the promulgation date of such
amendment.

 

17.    The matters not covered herein shall be handled according to the
relevant decrees

 

 

enacted
by the Manufacturing and Export Zone.

 

18.    During the period of this contract, if Party B needs surveying the
boundary due to the ambiguity of the boundary of the leased land or any boundary
dispute, the relevant expenses shall be borne by Party B.

 

19.    Party B shall exercise its care as a good administrator to prevent the
contamination of soil and ground water. 
In the event of any contamination, Party B shall pay the penalty
according to the relevant laws and conduct the investigation and appraisal of
the contaminated site, countermeasures and remedy.  Party B shall be solely liable for the expenses
and any damage arising therefrom.  In
addition, Party B shall provide the land contamination testing materials at its
own expense when it transfers the factory buildings.

 

20.    Party B shall not endanger the public security, sanitation or construct
illegal buildings within the zone by leasing the land.

 

21.    In the event the land leased by Party B involves the adjustment of plot
ratio, if the plot ratio exceeds the legal plot ratio, Party B shall apply for
the construction only after it handles the matters relating to feedback burden
according to the relevant provisions.

 

22.    This contract is made in duplicate and will take effect as of the
commencement date of the lease term as set forth in Article 2 hereof after
signed by the Parties.  Each Party holds
one copy.  In the event of any litigation
arising from this contract, the competent court shall be Kaohsiung Local Court.

 

23.    If Party B does not apply for canceling the lease before January of
each year, it shall be deemed that the contract is renewed to the expiration
date of the contract.

 

The
Parties to this Contract:

 

The
Contractor (Party B): Philips Electronic Building Elements Industries (Taiwan)
Ltd

Legal
Representative:

Address:
10 Jingwu Road, Nanzi Manufacturing and Export Zone, Kaohsiung City

 

The
Contractor (Party A): Manufacturing and Export Zone Administrative Department,
Ministry of Economy

Legal
Representative: Zeng Canbao, Director

Address:
600 Jiachang Road, Nanzi District, Kaohsiung City

 

August
16, 2005

 

 

Annexed
Drawing of (94) Nanerjianzi No. 027

 

Place
of factory building land leased out

 

Right
scope: 2/16

 

Scale:
1/2000Exhibit 10.26

 

(94) Nanerjianzi No. 002

 

Manufacturing and Export Zone Administrative
Department,

 

Ministry of Economy Land Lease Contract

 

Philips Electronic Building Elements Industries (Taiwan) Ltd (“Party B”)
leases the public land in Nanzi Manufacturing and Export Zone from
Manufacturing and Export Zone Administrative Department, Ministry of Economy (“Party
A”). Party A and Party B hereby enter into the lease contract as follows:

 

1.        Place, Rent and expenses of the Land

 

	
  Place of the land

  (Place drawing is annexed hereinafter.)

  	
   

  	
  Leased

  area

  (m2)

  	
   

  	
  Right

  scope

  of the

  lease

  	
   

  	
  Rent

  (dollar/month)

  	
   

  	
  Public

  facilities

  construction

  expense

  (dollar/month)

  	
   

  	
   

  
	
  Zone

  	
   

  	
  Section

  	
   

  	
  Sub-section

  	
   

  	
  Number

  of the

  land

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Remarks

  
	
  Nanzi
  District

  	
   

  	
  Heping
  section

  	
   

  	
  Second

  	
   

  	
  711

  	
   

  	
  8,781

  	
   

  	
  2/16

  	
   

  	
  12,627

  	
   

  	
  0

  	
   

  	
  Approved
  for lease the land hereunder by the letter of Jingjiachu erjianzi No.
  09301039060 on December 15, 2004 with an area of 1,468 (m2)

  
	
   

  	
   

  	
   

  	
   

  	
  Apportioned
  public facility land

  	
   

  	
  370

  	
   

  	
  1/1

  	
   

  	
  4,255

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (The
  following is blank.)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  16,882

  	
   

  	
  0

  	
   

  	
   

  

 

2.        The lease term is totally ten years from
January 10, 2005 to January 09, 2015.

 

3.        The land leased hereunder will be only used by
approved enterprise operating business within the zone for constructing
offices, factory buildings, warehouses or premises. Party B shall not request
to set surface rights on the leased land.

 

4.        Within the period of the contract, if Party B
does not continue using the whole or part of the land leased by it, it shall
apply to Party A for canceling the lease, but shall not sublease or lend the
land to other persons.

 

5.        If Party B applies for leasing land for
constructing factory buildings or other buildings by itself, it shall set back
the buildings according to the relevant provisions of the Manufacturing and
Export Zone. The greening, maintenance and management of the setback land shall
be conducted by Party B at its own expense.

 

6.        If Party B applies for leasing land for
constructing factory buildings or other buildings by itself, such construction
shall be based on the principle of constructing storied buildings and necessary
accessory buildings of the storied

 

 

 

buildings. The building coverage and plot ratio shall be in compliance
with the relevant building laws.

 

7.        If the leased land currently is used as public
facilities, Party A will administer the land as a whole, and Party B shall not
claim that the land shall be used for building or other purpose.

 

8.        Party B shall automatically pay the treasury
agency as designated by Party A the rent and expenses totally 16,882 New Taiwan
Dollars as set forth in Article 1 hereof before the fifth day of each month. If
Party B fails to make the payment after the payment day, liquidated damages
will be additionally charged as follows:

 

8.1      If the delay is more than one month but less than
two months, 5% of the total amount of the rent and expenses will be
additionally charged.

 

8.2      If the delay is more than two months but less
than three months, 10% of the total amount of the rent and expenses will be
additionally charged.

 

8.3      If the delay is more than three months but less
than four months, 15% of the total amount of the rent and expenses will be
additionally charged.

 

8.4      If Party B fails to pay off the rent, expenses
and liquidated damages after four months from the payment day, Party A may
recover the rent, expenses and liquidated damages and immediately terminate the
contract.

 

9.        Besides paying the rent monthly, Party B shall
pay the public facility construction expenses as provided for in Article 11 of Manufacturing and Export Zone Setup and Administration Ordinance for
up to twenty years for each plot. If there are additionally increased facility construction
expenses during the lease term, Party B also shall pay such expenses according
to the relevant provisions.

 

10.      In the event the government prescribes the land
price over again, the rent hereunder will be adjusted according to the new land
price from the 1st day of the month following the proclamation of
new land price.

 

11.      If Party B leases the land for constructing
factory buildings or other buildings by itself, it shall pay the completion
deposit according to Key Points of the Payment
of Completion Deposit for Leasing Land to Construct Buildings in Manufacturing
and Export Zone before commencing the construction and shall apply
for the construction license within three months from the execution of the
contract. After obtaining the license, Party B shall commence the construction.
If Party B fails to commence the construction within the stipulated period or
though Party B applies for postponing the commencement but fails to commence
the construction upon expiration of the postponed period or fails to complete
the construction according to the plan, Party A may terminate the contract,
withdraw the land and cancel the construction license. The rent and public
facility construction expenses already paid will not be refunded. If there are
uncompleted buildings or works on the land, Party B shall remove them and restitute
the original state within three months after Party A notified it that the
contract is terminated by Party A. If Party B fails to complete such treatment
on schedule, Party A may forfeit the completion deposit.

 

 

 

The completion deposit will be refunded according to the progress of
the project and proportion without interest pursuant to the aforesaid Key Points after Party B commences the construction.

 

12.      Party A may terminate the contract by notifying
Party B and withdraw the land under any of the following circumstances during
the lease term:

 

12.1    The investment scheme of the Manufacturing and
Export Zone is cancelled.

 

12.2    The buildings owned by Party B are purchased or
requisitioned for value according to the relevant provisions of Manufacturing and Export Zone Setup and Administration Ordinance.

 

12.3    The use of the land by Party B breaches the
provisions of this contract.

 

12.4    Party A needs withdrawing all or part of the land
for its own use.

 

12.5    The contract may be terminated according to the Civil Law and Land Law.

 

13.      If the contract is terminated according to the
foregoing Article, Party B shall promptly return the land and transfer its
buildings on the land to other enterprises operating businesses within the zone
as approved by the administrative department or branch department within two
years. If Party B fails to conduct such treatment or fails to complete such
treatment within two years, Party A may dispose of such buildings according to
law.

 

14.      If party B needs reletting the land upon
expiration of the lease term, it shall apply for reletting in writing three
months prior to the expiration of the lease term. If Party B does not apply for
reletting upon expiration of the foregoing three months period, it shall
immediately return the land upon expiration of the lease term. Party B shall
transfer its buildings on the land to other enterprises operating businesses
within the zone as approved by the administrative department or branch
department within six months.

 

15.      Upon termination of this contract or if Party B
does not relet the land upon expiration of this contract, impairment money will
be charged according to the standard of land rent and expense of the
Manufacturing and Export Zone for the period during which the land is occupied
by original Party B. In the event of overdue payment, additional interest will
be charged at the annual interest rate 5% till the payment day.

 

16.      In the event the relevant laws are amended during
the period of the contract and the provisions of this contract are affected by
such amendment, the amended provisions shall prevail from the promulgation date
of such amendment.

 

17.      The matters not covered herein shall be handled
according to the relevant decrees enacted by the Manufacturing and Export Zone.

 

 

 

18.      During the period of this contract, if Party B
needs surveying the boundary due to the ambiguity of the boundary of the leased
land or any boundary dispute, the relevant expenses shall be borne by Party B.

 

19.      Party B shall exercise its care as a good
administrator to prevent the contamination of soil and ground water. In the
event of any contamination, Party B shall pay the penalty according to the
relevant laws and conduct the investigation and appraisal of the contaminated
site, countermeasures and remedy. Party B shall be solely liable for the
expenses and any damage arising therefrom. In addition, Party B shall provide
the land contamination testing materials at its own expense when it transfers
the factory buildings.

 

20.      Party B shall not endanger the public security,
sanitation or construct illegal buildings within the zone by leasing the land.

 

21.      In the event the land leased by Party B involves
the adjustment of plot ratio, if the plot ratio exceeds the legal plot ratio,
Party B shall apply for the construction only after it handles the matters
relating to feedback burden according to the relevant provisions.

 

22.      This contract is made in duplicate and will take
effect as of the commencement date of the lease term as set forth in Article 2
hereof after signed by the Parties. Each Party holds one copy. In the event of
any litigation arising from this contract, the competent court shall be
Kaohsiung Local Court.

 

23.      If Party B does not apply for canceling the lease
before January of each year, it shall be deemed that the contract is renewed to
the expiration date of the contract.

 

The Parties to this Contract:

The Contractor (Party B): Philips Electronic Building Elements
Industries (Taiwan) Ltd

Legal Representative:

Address: 10 Jingwu Road, Nanzi Manufacturing and Export Zone, Kaohsiung
City

 

The Contractor (Party A): Manufacturing and Export Zone Administrative
Department,

Ministry of Economy

Legal Representative: Zeng Canbao, Director

Address: 600 Jiachang Road, Nanzi district, Kaohsiung City

 

January 10, 2005

 

 

 

Annexed Drawing of (94) Nanerjianzi No. 002

 

Place of factory building land leased out

 

Right scope: 2/16

 

Scale: 1/2000

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