Document:

exv10w24

 

 EXHIBIT 10.24

Science and Industry Park Administration Factory Lease Agreement

(one year)

			
	 	 	 
	Lessor: Science and Industry Park Administration
	 	(hereinafter referred to as “Party A”)
	Enters into a Lease Agreement with:	 	 
	Lessee: Optronics International Corporation

A0327
	 	(hereinafter referred to as “Party B”) 

As Party B is a park enterprise, research organization, business center, or administrative
mechanism branch as stipulated in Article 4 or Article 8 of the Science and Industry Park
administrative regulations or an industry service enterprise approved by Party A, and as agreed
upon by both Parties, Party A hereby leases its factory located within the Xinzhu Science and
Industry Park at the address stipulated in Article 1 of this Agreement (hereinafter referred to as
the Factory) to Party B. The leasing conditions are as follows:

	 	 	 
	Article 1

	 	The Factory in this agreement is located at Xinzhu Science and
Industry Park, Xinzhu county, 46 Yuanqu Second Road, Building 1,
which has an area of 877 square meters.
	 
	 	 
	Article 2

	 	This Agreement runs from January 1, 2008 to December 31, 2008.
	 
	 	 
	 

	 	When the lease term expires, this Agreement will be terminated automatically,
unless the Parties conclude a new lease agreement in accordance with Article 4
of this Agreement. Party B may not for any reason claim a continuation of the
leasing relationship or the right to irregular leasing.
	 
	 	 
	Article 3

	 	During the period and continuation period of this
Agreement, Party B shall act as a park enterprise,
research organization, business center, or
administrative mechanism branch as stipulated in
Article 4 or Article 8 of the Science and Industry
Park administrative regulations or an industry
service enterprise approved by Party A. If Party B
does not have the above qualifications, this
Agreement becomes invalid; If Party B subsequently
loses these mentioned qualifications, then the
Parties agree to immediately terminate this Agreement
on the date when the qualifications are lost. In such
a case, Party A does not have to notify Party B of
the loss of validity of this Agreement.
	 
	 	 
	Article 4

	 	Party A shall send a written lease agreement for the
continuation of the leasing relationship one month
before this Agreement expires.
	 
	 	 
	 

	 	Party B shall respond within fifteen (15) days of receiving this lease agreement as
to whether they will continue leasing after the expiration of the lease. If the
agreement is to be continued, then it should be stamped and related documents should
be examined before Party B sends them to Party A within the aforementioned period.
If Party B violates this Agreement during the continuation period, then upon
continuation of the agreement, Party A shall request that Party B notarize the
continuation agreement, and the notarization fee shall be paid by Party B.
	 
	 	 
	Article 5

	 	If Party B decides to terminate this Agreement before it has expired, Party B shall
notify Party A in writing two months in advance. During these two months, Party B shall
continue to pay rent whether or not they have already moved out of the Factory.
	 
	 	 
	 

	 	Party A shall, due to revisions of laws or changes in government policies, notify
Party B two months in advance in writing of the termination of this Agreement.
	 
	 	 
	Article 6

	 	The monthly rent for the Factory shall be NTD 110,502. Beginning on this Agreement’s
rental starting date, Party B shall download the subsequent month’s rent from Party A’s
website (website: www.sipa.gov.tw), and follow the payment procedures stipulated by Party A to
make a one-time payment of the aforementioned rent before the fifteenth day of each month, and
separately pay the business tax. Party

 

 

	 	 	 
	 

	 	B shall be responsible for utility fees, and pay public utility fees at the same
time as the rent.
	 
	 	 
	 

	 	Party A shall abide by relevant laws and regulations, and upon adjustments in the
publicly declared Factory land price or rental price for national lands approved by
the Taiwan government, adjust at any time the amount of the rent. Party B shall pay
attention on said public declarations of land prices and rental prices for national
lands.
	 
	 	 
	 

	 	Any adjustments in the rent shall enter into force since the month after said
adjustments in public declarations of land prices and rental prices for national
lands are made. If the rent has already been paid before Party A’s website could be
updated, the remaining balance shall be sought or returned.
	 
	 	 
	Article 7

	 	Party B shall pay the following penalty fees for not paying rent or utility fees owed

during the agreed period:
	 
	 	 
	 

	 	1.    If the payment is less than one month late, then the total
amount due plus a fee of two percent shall be collected.

	 
	 	 
	 

	 	2.    If the payment is between one and two months late, then the
total amount due plus a fee of five percent shall be collected.

	 
	 	 
	 

	 	3.    If the payment is between two and three months late, then the
total amount due plus a fee of ten percent shall be collected.

	 
	 	 
	 

	 	4.    If the payment is over three months late, then the total amount
due plus a fee of fifteen percent shall be collected.

	 
	 	 
	Article 8

	 	Party B shall pay a Rental Deposit of NTD 238,106 based on the cost of three months’ rent
at the time of signing this Agreement, to ensure Party B follows each Article of this
Agreement. The Rental Deposit shall be paid in full at the time when Party B signs this
Agreement, and Party A shall issue a receipt proof. If the rent is adjusted, or this Agreement
is continued or extended, the amount of the Rental Deposit shall not be changed.
	 
	 	 
	 

	 	If this Agreement is terminated or the lease term expires, and Party B has returned
the Factory as agreed, does not owe any rent or public utility fees, and has not
made any other violations, Party A shall return the Rental Deposit without interest.
	 
	 	 
	 

	 	Party B may not use the deposit for the payment of rent.
	 
	 	 
	Article 9

	 	Party B’s use of the Factory is limited to Party B’s own
research, production, and operations. The entire Factory or any
portion of it may not be subleased, loaned to another party for
use, or given to any other party for use in any other way, and
may not be used in any illegal way. However, with written
permission from Party A, Party B may sublease a part of the
Factory to an enterprise or organization agreed upon by Party
A.
	 
	 	 
	Article 10

	 	Party B shall take an administrator’s care in maintaining the
Factory and its public facilities, and be responsible for
maintaining the cleanliness of its environment.
	 
	 	 
	 

	 	Party B may not store objects on the Factory building roofs, stairwells, basements,
or other public areas or engage in any other behavior that endangers public safety.
If such storage takes place, Party B shall arrange for cleanup within the time
period specified by Party A, or, if Party A carries out the cleanup, Party B shall
be responsible for the cost. If it is unknown who stored such objects, the cleanup
fee shall be paid by Party B based on the proportion of the area to the area of the
entire Factory.
	 
	 	 
	 

	 	If the Factory or its public facilities are damaged or destroyed, Party B shall be
responsible for returning them to their original condition and for compensating for
the damages, unless the damage or destruction was caused by a natural disaster or
force majeure events.
	 
	 	 
	 

	 	For damage or destruction as caused by the preceding proviso or natural factors,
Party B shall fill out the repair form and notify Party A to deal with the
situation.
	 
	 	 
	 

	 	Upon taking over management of the Factory, Party B shall immediately inspect all of
the Factory’s facilities. If any pre-existing defects exist, Party A shall be
notified

 

 

	 	 	 
	 

	 	immediately to make repairs. One month after Party B’s taking over management of the
Factory, Party B may not request a decrease in rent due to Factory defects.
	 
	 	 
	Article 11

	 	If any of Party B’s employees, users or any other persons
authorized by Party B to use the Factory cause damage to or
destruction of the Factory or its facilities, Party B shall be
jointly liable for restoring them to their original condition
and for compensating for the damages.
	 
	 	 
	Article 12

	 	Party B shall be responsible for maintaining the environmental
cleanliness of the Factory and its recesses, docks, and parking
lots (tents).
	 
	 	 
	Article 13

	 	Party B may not make any additions or changes to the Factory on
its own. However, it may do so with Party A’s prior written
consent.
	 
	 	 
	 

	 	Party B may install water, electricity, telephone, and other facilities within the
Factory, so long as they do not affect or change the structure of the Factory and
its bathrooms.
	 
	 	 
	 

	 	Party B shall comply with construction, fire safety and other regulations when
making installations in the Factory.
	 
	 	 
	Article 14

	 	Party A may send someone carrying Party A’s identification at any time to inspect Party B’s use of the Factory, and
Party B may not refuse them and shall cooperate in full.
	 
	 	 
	Article 15

	 	Party A is responsible for the land and property taxes of the Factory.
	 
	 	 
	 

	 	Party B shall take out the insurance needed on all machinery, equipment, and
facilities that it places within the Factory. If these are damaged in any way, Party
A will not undertake any liability.
	 
	 	 
	Article 16

	 	If any of the following situations occur, Party A may at any time notify Party B of the
termination of this Agreement, take back the Factory, and not be obligated to return any rent
already paid:
	 
	 	 
	 

	 	1.    Party B loses its qualifications to operate or provide service
within the park or is removed from the park by Party A in accordance with the
law.

	 
	 	 
	 

	 	2.    Party B has not begun to use the Factory after two months from
the start of the lease term, or has stopped using the Factory or using the
Factory in accordance with this Agreement for at least two months, and, after
written notification from Party A, has not remedied the situation on time.

	 
	 	 
	 

	 	3.    Party B is late in paying rent for two consecutive months or
more.

	 
	 	 
	 

	 	4.    Party B violates Article 9 or Article 14 of this Agreement.

	 
	 	 
	 

	 	5.    Party B violates Article 10, Article 12, Article 13, Article
19, Article 20, Article 22 Clause 1, Article 22 Clause 4, Article 22 Clause 5,
or Article 23 Clause 2 of this Agreement, and, after written notification from
Party A, has not remedied the situation on time.

	 
	 	 
	Article 17

	 	When the lease term expires or is terminated, Party B shall return the Factory to its
original condition and return it empty to Party A.
	 
	 	 
	 

	 	When, according to the above stipulation, Party B returns the Factory, Party B shall
be responsible for its cleaning and all related fees. If Party B is negligent in
cleaning the Factory and its public facilities, Party A may hire cleaners and the
fees will be deducted from Party B’s Rental Deposit. If the Rental Deposit cannot
cover all of the fees, Party B shall be responsible for the remainder. 

Any items left in the Factory at the time when it is returned shall be considered as
discarded, and Party B may not demand any compensation if Party A deals with them.
Any costs paid by Party A to clean up said items shall be deducted from Party B’s
Rental Deposit. If the Rental Deposit cannot cover all of the costs, Party B shall
be responsible for the remainder.
	 
	 	 
	 

	 	After the lease term expires or is terminated, if Party B has not yet completed the
procedures for returning the Factory as stipulated in this article, and if Party A
has performed three consecutive days’ inspections within 10 days and finds no
personnel or users of Party B, Party B unequivocally agrees that Party A may open
and change

 

 

	 	 	 
	 

	 	the locks on the Factory, enter the Factory, clean the Factory and return it to its
original condition. Any items left within the Factory shall be considered discarded.
Party B agrees to be responsible for any costs paid by Party A as stipulated above
relating to opening and changing locks, cleaning, restoring the Factory to its
original condition, and dealing with discarded items in accordance with Clauses 2
and 3.
	 
	 	 
	Article 18

	 	After the lease term expires or is terminated, if Party B is
late in returning the Factory to Party A as stipulated in this
Agreement, for each day late, Party B shall pay Party A double
rent for each delayed day as penalty fee, and shall compensate
Party A for the losses incurred.
	 
	 	 
	Article 19

	 	Party B shall file reports on time for the Factory based on
public building safety inspection certificates and reporting
methods and maintenance and reporting standards for fire safety
equipment at each location.
	 
	 	 
	Article 20

	 	The weight-bearing load of the building design is 500 kg per
square meter. In order to ensure the safety of the building’s
structure, Party B shall take note of the weight-bearing load
when using the Factory, and consult technicians or architects.
The weight-bearing load limit shall never be exceeded.
	 
	 	 
	Article 21

	 	All requests and notices related to this Agreement should be
made in written Chinese, and delivered in person or by mail
according to the addresses provided by the Parties in this
agreement.
	 
	 	 
	 

	 	If either Party changes its address, it shall notify the other Party in writing
within seven days of the change.
	 
	 	 
	 

	 	Said notice shall be seen as legally being delivered even if the notice is still in
the delivering process.
	 
	 	 
	Article 22

	 	Party B shall strictly fulfil all obligations of all articles of this Agreement, and
shall independently seek a joint Guarantor. After assisting the Guarantor in reading this
Agreement, the Guarantor shall stamp and sign this Agreement in the proper space, and leave
two copies of the Guarantor’s identification card that shall serve as appendices to this
Agreement. The copies shall be made of the original identification card, and Party B and the
Guarantor shall ensure that the appearance of the copy is exactly the same as the original,
and that no falsification has been made.
	 
	 	 
	 

	 	If Party B violates any of the Articles of this Agreement, the Guarantor shall
unconditionally undertake joint liabilities with Party B, and agrees to forfeit the
right of discussion given in Article 745 of the Civil Law.
	 
	 	 
	 

	 	Party A must first agree for the Guarantor to withdraw during the Agreement period.
The Guarantor’s liabilities may not be exempted unless agreed to by Party A.
Apart from the Guarantor’s obligations, Party B also may guarantee the fulfilment of
payment through written bank guarantee, joint guarantee insurance form from an
insurance company, fixed deposit form pledged by a finance organization, or other
methods authorized by Party A, and the guarantee period shall begin before or on the
starting date of this Agreement.
	 
	 	 
	 

	 	For those that guarantee the fulfilment of payment through written bank guarantee,
joint guarantee insurance form from an insurance company, fixed deposit form pledged
by a finance organization, or other methods authorized by Party A, their guarantee
liabilities and contents coincide with those of the Guarantor. For those for which
related business administration mechanisms or financial laws require written
registrations of the expiration date, the expiration date shall be at least sixty
days after the date of expiration date of this Agreement.
	 
	 	 
	Article 23

	 	Parties that sign this Agreement shall ensure that they have full authorization to do
so, and that they have the power to act as signing representatives to this Agreement.
	 
	 	 
	 

	 	The company stamp and seal used by Party B for this Agreement must be the same as
the ones used by Party B in its registration procedures with Party A.
	 
	 	 
	Article 24

	 	If this Agreement is involved in litigation, the Parties agree to follow Republic of China laws and to fall within
the Taiwan Xinzhu local court’s jurisdiction.
	 
	 	 
	Article 25

	 	This rental Agreement consists of two copies and each Party holds one.

 

 

Agreement made between:

Party A: Science and Industry Park Administration

Representative: Huang Derui

Address: No. 2 Xin’an Road, Xinzhu City

Party B:
Optronics International Corporation

Representative:

Address: No. 46 Yuangqu Second Road, Xinzhu Science Park

Party B’s Guarantor: Qiu Mingji

Guarantor’s identification number: Q120811843

Republic of China January 1, 2008

 

 

Science and Industry Park Administration Factory Lease Agreement

(one year)

			
	 	 	 
	Lessor: Science and Industry Park Administration
	 	(hereinafter referred to as “Party A”)
	Enters into a Lease Agreement with:	 	 
	Lessee: Optronics International
Corporation

 A0327
	 	(hereinafter referred to as “Party B”)

As Party B is a park enterprise, research organization, business center, or administrative
mechanism branch as stipulated in Article 4 or Article 8 of the Science and Industry Park
administrative regulations or an industry service enterprise approved by Party A, and as agreed
upon by both Parties, Party A hereby leases its factory located within the Xinzhu Science and
Industry Park at the address stipulated in Article 1 of this Agreement (hereinafter referred to as
the Factory) to Party B. The leasing conditions are as follows:

	 	 	 
	Article 1

	 	The Factory in this agreement is located at Xinzhu Science and
Industry Park, Xinzhu county, No. 46 Yuanqu Second Road,
Building 2, which has an area of 879 square meters.
	 
	 	 
	Article 2

	 	This Agreement runs from January 1, 2008 to December 31, 2008.
	 
	 	 
	 

	 	When the lease term expires, this Agreement will be terminated automatically,
unless the Parties conclude a new lease agreement in accordance with Article 4
of this Agreement. Party B may not for any reason claim a continuation of the
leasing relationship or the right to irregular leasing.
	 
	 	 
	Article 3

	 	During the period and continuation period of this
Agreement, Party B shall act as a park enterprise,
research organization, business center, or
administrative mechanism branch as stipulated in
Article 4 or Article 8 of the Science and Industry
Park administrative regulations or an industry
service enterprise approved by Party A. If Party B
does not have the above qualifications, this
Agreement becomes invalid; If Party B subsequently
loses these mentioned qualifications, then the
Parties agree to immediately terminate this Agreement
on the date when the qualifications are lost. In such
a case, Party A does not have to notify Party B of
the loss of validity of this Agreement.
	 
	 	 
	Article 4

	 	Party A shall send a written lease agreement for the
continuation of the leasing relationship one month
before this Agreement expires.
	 
	 	 
	 

	 	Party B shall respond within fifteen (15) days of receiving this lease agreement as
to whether they will continue leasing after the expiration of the lease. If the
agreement is to be continued, then it should be stamped and related documents should
be examined before Party B sends them to Party A within the aforementioned period.

If Party B violates this Agreement during the continuation period, then upon
continuation of the agreement, Party A shall request that Party B notarize the
continuation agreement, and the notarization fee shall be paid by Party B.
	 
	 	 
	Article 5

	 	If Party B decides to terminate this Agreement before it has expired, Party B shall
notify Party A in writing two months in advance. During these two months, Party B shall
continue to pay rent whether or not they have already moved out of the Factory.
	 
	 	 
	 

	 	Party A shall, due to revisions of laws or changes in government policies, notify
Party B two months in advance in writing of the termination of this Agreement.
	 
	 	 
	Article 6

	 	The monthly rent for the Factory shall be NTD 104,601. Beginning on this Agreement’s
rental starting date, Party B shall download the subsequent month’s rent from Party A’s
website (website: www.sipa.gov.tw), and follow the payment procedures stipulated by Party A to
make a one-time payment of the aforementioned rent before the fifteenth day of each month, and
separately pay the business tax. Party

 

 

	 	 	 
	 

	 	B shall be responsible for utility fees, and pay public utility fees at the same
time as the rent.
	 
	 	 
	 

	 	Party A shall abide by relevant laws and regulations, and upon adjustments in the
publicly declared Factory land price or rental price for national lands approved by
the Taiwan government, adjust at any time the amount of the rent. Party B shall pay
attention on said public declarations of land prices and rental prices for national
lands.
	 
	 	 
	 

	 	Any adjustments in the rent shall enter into force since the month after said
adjustments in public declarations of land prices and rental prices for national
lands are made. If the rent has already been paid before Party A’s website could be
updated, the remaining balance shall be sought or returned.
	 
	 	 
	Article 7

	 	Party B shall pay the following penalty fees for not paying rent or utility fees owed

during the agreed period:
	 
	 	 
	 

	 	5.    If the payment is less than one month late, then the total
amount due plus a fee of two percent shall be collected.

	 
	 	 
	 

	 	6.    If the payment is between one and two months late, then the
total amount due plus a fee of five percent shall be collected.

	 
	 	 
	 

	 	7.    If the payment is between two and three months late, then the
total amount due plus a fee of ten percent shall be collected.

	 
	 	 
	 

	 	8.    If the payment is over three months late, then the total amount
due plus a fee of fifteen percent shall be collected.

	 
	 	 
	Article 8

	 	Party B shall pay a Rental Deposit of NTD 220,189 based on the cost of three months’ rent
at the time of signing this Agreement, to ensure Party B follows each Article of this
Agreement. The Rental Deposit shall be paid in full at the time when Party B signs this
Agreement, and Party A shall issue a receipt proof. If the rent is adjusted, or this Agreement
is continued or extended, the amount of the Rental Deposit shall not be changed.
	 
	 	 
	 

	 	If this Agreement is terminated or the lease term expires, and Party B has returned
the Factory as agreed, does not owe any rent or public utility fees, and has not
made any other violations, Party A shall return the Rental Deposit without interest.
	 
	 	 
	 

	 	Party B may not use the deposit for the payment of rent.
	 
	 	 
	Article 9

	 	Party B’s use of the Factory is limited to Party B’s own
research, production, and operations. The entire Factory or any
portion of it may not be subleased, loaned to another party for
use, or given to any other party for use in any other way, and
may not be used in any illegal way. However, with written
permission from Party A, Party B may sublease a part of the
Factory to an enterprise or organization agreed upon by Party
A.
	 
	 	 
	Article 10

	 	Party B shall take an administrator’s care in maintaining the
Factory and its public facilities, and be responsible for
maintaining the cleanliness of its environment.
	 
	 	 
	 

	 	Party B may not store objects on the Factory building roofs, stairwells, basements,
or other public areas or engage in any other behavior that endangers public safety.
If such storage takes place, Party B shall arrange for cleanup within the time
period specified by Party A, or, if Party A carries out the cleanup, Party B shall
be responsible for the cost. If it is unknown who stored such objects, the cleanup
fee shall be paid by Party B based on the proportion of the area to the area of the
entire Factory.
	 
	 	 
	 

	 	If the Factory or its public facilities are damaged or destroyed, Party B shall be
responsible for returning them to their original condition and for compensating for
the damages, unless the damage or destruction was caused by a natural disaster or
force majeure events.
	 
	 	 
	 

	 	For damage or destruction as caused by the preceding proviso or natural factors,
Party B shall fill out the repair form and notify Party A to deal with the
situation.
	 
	 	 
	 

	 	Upon taking over management of the Factory, Party B shall immediately inspect all of
the Factory’s facilities. If any pre-existing defects exist, Party A shall be
notified

 

 

	 	 	 
	 

	 	immediately to make repairs. One month after Party B’s taking over management of the
Factory, Party B may not request a decrease in rent due to Factory defects.
	 
	 	 
	Article 11

	 	If any of Party B’s employees, users or any other persons
authorized by Party B to use the Factory cause damage to or
destruction of the Factory or its facilities, Party B shall be
jointly liable for restoring them to their original condition
and for compensating for the damages.
	 
	 	 
	Article 12

	 	Party B shall be responsible for maintaining the environmental
cleanliness of the Factory and its recesses, docks, and parking
lots (tents).
	 
	 	 
	Article 13

	 	Party B may not make any additions or changes to the Factory on
its own. However, it may do so with Party A’s prior written
consent.
	 
	 	 
	 

	 	Party B may install water, electricity, telephone, and other facilities within the
Factory, so long as they do not affect or change the structure of the Factory and
its bathrooms.
	 
	 	 
	 

	 	Party B shall comply with construction, fire safety and other regulations when
making installations in the Factory.
	 
	 	 
	Article 14

	 	Party A may send someone carrying Party A’s identification at any time to inspect Party B’s use of the Factory, and
Party B may not refuse them and shall cooperate in full.
	 
	 	 
	Article 15

	 	Party A is responsible for the land and property taxes of the Factory.
	 
	 	 
	 

	 	Party B shall take out the insurance needed on all machinery, equipment, and
facilities that it places within the Factory. If these are damaged in any way, Party
A will not undertake any liability.
	 
	 	 
	Article 16

	 	If any of the following situations occur, Party A may at any time notify Party B of the
termination of this Agreement, take back the Factory, and not be obligated to return any rent
already paid:
	 
	 	 
	 

	 	6.    Party B loses its qualifications to operate or provide service
within the park or is removed from the park by Party A in accordance with the
law.

	 
	 	 
	 

	 	7.    Party B has not begun to use the Factory after two months from
the start of the lease term, or has stopped using the Factory or using the
Factory in accordance with this Agreement for at least two months, and, after
written notification from Party A, has not remedied the situation on time.

	 
	 	 
	 

	 	8.    Party B is late in paying rent for two consecutive months or
more.

	 
	 	 
	 

	 	9.    Party B violates Article 9 or Article 14 of this Agreement.

	 
	 	 
	 

	 	10.  Party B violates Article 10, Article 12, Article 13, Article
19, Article 20, Article 22 Clause 1, Article 22 Clause 4, Article 22 Clause 5,
or Article 23 Clause 2 of this Agreement, and, after written notification from
Party A, has not remedied the situation on time.

	 
	 	 
	Article 17

	 	When the lease term expires or is terminated, Party B shall return the Factory to its
original condition and return it empty to Party A.
	 
	 	 
	 

	 	When, according to the above stipulation, Party B returns the Factory, Party B shall
be responsible for its cleaning and all related fees. If Party B is negligent in
cleaning the Factory and its public facilities, Party A may hire cleaners and the
fees will be deducted from Party B’s Rental Deposit. If the Rental Deposit cannot
cover all of the fees, Party B shall be responsible for the remainder.
	 
	 	 
	 

	 	Any items left in the Factory at the time when it is returned shall be considered as
discarded, and Party B may not demand any compensation if Party A deals with them.
Any costs paid by Party A to clean up said items shall be deducted from Party B’s
Rental Deposit. If the Rental Deposit cannot cover all of the costs, Party B shall
be responsible for the remainder.
	 
	 	 
	 

	 	After the lease term expires or is terminated, if Party B has not yet completed the
procedures for returning the Factory as stipulated in this article, and if Party A
has performed three consecutive days’ inspections within 10 days and finds no
personnel or users of Party B, Party B unequivocally agrees that Party A may open
and change

 

 

	 	 	 
	 

	 	the locks on the Factory, enter the Factory, clean the Factory and return it to its
original condition. Any items left within the Factory shall be considered discarded.
	 
	 	 
	 

	 	Party B agrees to be responsible for any costs paid by Party A as stipulated above
relating to opening and changing locks, cleaning, restoring the Factory to its
original condition, and dealing with discarded items in accordance with Clauses 2
and 3.
	 
	 	 
	Article 18

	 	After the lease term expires or is terminated, if Party B is
late in returning the Factory to Party A as stipulated in this
Agreement, for each day late, Party B shall pay Party A double
rent for each delayed day as penalty fee, and shall compensate
Party A for the losses incurred.
	 
	 	 
	Article 19

	 	Party B shall file reports on time for the Factory based on
public building safety inspection certificates and reporting
methods and maintenance and reporting standards for fire safety
equipment at each location.
	 
	 	 
	Article 20

	 	The weight-bearing load of the building design is 500 kg per
square meter. In order to ensure the safety of the building’s
structure, Party B shall take note of the weight-bearing load
when using the Factory, and consult technicians or architects.
The weight-bearing load limit shall never be exceeded.
	 
	 	 
	Article 21

	 	All requests and notices related to this Agreement should be
made in written Chinese, and delivered in person or by mail
according to the addresses provided by the Parties in this
agreement.
	 
	 	 
	 

	 	If either Party changes its address, it shall notify the other Party in writing
within seven days of the change.
	 
	 	 
	 

	 	Said notice shall be seen as legally being delivered even if the notice is still in
the delivering process.
	 
	 	 
	Article 22

	 	Party B shall strictly fulfil all obligations of all articles of this Agreement, and
shall independently seek a joint Guarantor. After assisting the Guarantor in reading this
Agreement, the Guarantor shall stamp and sign this Agreement in the proper space, and leave
two copies of the Guarantor’s identification card that shall serve as appendices to this
Agreement. The copies shall be made of the original identification card, and Party B and the
Guarantor shall ensure that the appearance of the copy is exactly the same as the original,
and that no falsification has been made.
	 
	 	 
	 

	 	If Party B violates any of the Articles of this Agreement, the Guarantor shall
unconditionally undertake joint liabilities with Party B, and agrees to forfeit the
right of discussion given in Article 745 of the Civil Law.
	 
	 	 
	 

	 	Party A must first agree for the Guarantor to withdraw during the Agreement period.
The Guarantor’s liabilities may not be exempted unless agreed to by Party A.
	 
	 	 
	 

	 	Apart from the Guarantor’s obligations, Party B also may guarantee the fulfilment of
payment through written bank guarantee, joint guarantee insurance form from an
insurance company, fixed deposit form pledged by a finance organization, or other
methods authorized by Party A, and the guarantee period shall begin before or on the
starting date of this Agreement.
	 
	 	 
	 

	 	For those that guarantee the fulfilment of payment through written bank guarantee,
joint guarantee insurance form from an insurance company, fixed deposit form pledged
by a finance organization, or other methods authorized by Party A, their guarantee
liabilities and contents coincide with those of the Guarantor. For those for which
related business administration mechanisms or financial laws require written
registrations of the expiration date, the expiration date shall be at least sixty
days after the date of expiration date of this Agreement.
	 
	 	 
	Article 23

	 	Parties that sign this Agreement shall ensure that they have full authorization to do
so, and that they have the power to act as signing representatives to this Agreement.
	 
	 	 
	 

	 	The company stamp and seal used by Party B for this Agreement must be the same as
the ones used by Party B in its registration procedures with Party A.
	 
	 	 
	Article 24

	 	If this Agreement is involved in litigation, the Parties agree to follow Republic of China laws and to fall within
the Taiwan Xinzhu local court’s jurisdiction.
	 
	 	 
	Article 25

	 	This rental Agreement consists of two copies and each Party holds one.

 

 

Agreement made between:

Party A: Science and Industry Park Administration

Representative: Huang Derui

Address: No. 2 Xin’an Road, Xinzhu City

Party B:
Optronics International Corporation

Representative:

Address: No. 46 Yuangqu Second Road, Xinzhu Science Park

Party B’s Guarantor: Qiu Mingji

Guarantor’s identification number: Q120811843

Republic of China January 1, 2008

 

 

Science and Industry Park Administration Factory Lease Agreement

(one year)

			
	Lessor: Science and Industry Park Administration
	 	(hereinafter referred to as “Party A”)
	Enters into a Lease Agreement with:	 	 
	Lessee: Optronics International
Corporation

A0327
	 	(hereinafter referred to as “Party B”) 

As Party B is a park enterprise, research organization, business center, or administrative
mechanism branch as stipulated in Article 4 or Article 8 of the Science and Industry Park
administrative regulations or an industry service enterprise approved by Party A, and as agreed
upon by both Parties, Party A hereby leases its factory located within the Xinzhu Science and
Industry Park at the address stipulated in Article 1 of this Agreement (hereinafter referred to as
the Factory) to Party B. The leasing conditions are as follows:

	 	 	 
	Article 1

	 	The Factory in this agreement is located at Xinzhu Science and
Industry Park, Xinzhu county, No. 40 Yuanqu Second Road,
Building 1, which has an area of 877 square meters.
	 
	 	 
	Article 2

	 	This Agreement runs from January 1, 2008 to December 31, 2008.
	 
	 	 
	 

	 	When the lease term expires, this Agreement will be terminated automatically,
unless the Parties conclude a new lease agreement in accordance with Article 4
of this Agreement. Party B may not for any reason claim a continuation of the
leasing relationship or the right to irregular leasing.
	 
	 	 
	Article 3

	 	During the period and continuation period of this
Agreement, Party B shall act as a park enterprise,
research organization, business center, or
administrative mechanism branch as stipulated in
Article 4 or Article 8 of the Science and Industry
Park administrative regulations or an industry
service enterprise approved by Party A. If Party B
does not have the above qualifications, this
Agreement becomes invalid; If Party B subsequently
loses these mentioned qualifications, then the
Parties agree to immediately terminate this Agreement
on the date when the qualifications are lost. In such
a case, Party A does not have to notify Party B of
the loss of validity of this Agreement.
	 
	 	 
	Article 4

	 	Party A shall send a written lease agreement for the
continuation of the leasing relationship one month
before this Agreement expires.
	 
	 	 
	 

	 	Party B shall respond within fifteen (15) days of receiving this lease agreement as
to whether they will continue leasing after the expiration of the lease. If the
agreement is to be continued, then it should be stamped and related documents should
be examined before Party B sends them to Party A within the aforementioned period.
	 
	 	 
	 

	 	If Party B violates this Agreement during the continuation period, then upon
continuation of the agreement, Party A shall request that Party B notarize the
continuation agreement, and the notarization fee shall be paid by Party B.
	 
	 	 
	Article 5

	 	If Party B decides to terminate this Agreement before it has expired, Party B shall
notify Party A in writing two months in advance. During these two months, Party B shall
continue to pay rent whether or not they have already moved out of the Factory.
	 
	 	 
	 

	 	Party A shall, due to revisions of laws or changes in government policies, notify
Party B two months in advance in writing of the termination of this Agreement.
	 
	 	 
	Article 6

	 	The monthly rent for the Factory shall be NTD 110,502. Beginning on this Agreement’s
rental starting date, Party B shall download the subsequent month’s rent from Party A’s
website (website: www.sipa.gov.tw), and follow the payment procedures stipulated by Party A to
make a one-time payment of the aforementioned rent before the fifteenth day of each month, and
separately pay the business tax. Party

 

 

	 	 	 
	 

	 	B shall be responsible for utility fees, and pay public utility fees at the same
time as the rent.
	 
	 	 
	 

	 	Party A shall abide by relevant laws and regulations, and upon adjustments in the
publicly declared Factory land price or rental price for national lands approved by
the Taiwan government, adjust at any time the amount of the rent. Party B shall pay
attention on said public declarations of land prices and rental prices for national
lands.
	 
	 	 
	 

	 	Any adjustments in the rent shall enter into force since the month after said
adjustments in public declarations of land prices and rental prices for national
lands are made. If the rent has already been paid before Party A’s website could be
updated, the remaining balance shall be sought or returned.
	 
	 	 
	Article 7

	 	Party B shall pay the following penalty fees for not paying rent or utility fees owed

during the agreed period:
	 
	 	 
	 

	 	9.    If the payment is less than one month late, then the total
amount due plus a fee of two percent shall be collected.

	 
	 	 
	 

	 	10.   If the payment is between one and two months late, then the
total amount due plus a fee of five percent shall be collected.

	 
	 	 
	 

	 	11.   If the payment is between two and three months late, then the
total amount due plus a fee of ten percent shall be collected.

	 
	 	 
	 

	 	12.   If the payment is over three months late, then the total amount
due plus a fee of fifteen percent shall be collected.

	 
	 	 
	Article 8

	 	Party B shall pay a Rental Deposit of NTD 284,148 based on the cost of three months’ rent
at the time of signing this Agreement, to ensure Party B follows each Article of this
Agreement. The Rental Deposit shall be paid in full at the time when Party B signs this
Agreement, and Party A shall issue a receipt proof. If the rent is adjusted, or this Agreement
is continued or extended, the amount of the Rental Deposit shall not be changed.
	 
	 	 
	 

	 	If this Agreement is terminated or the lease term expires, and Party B has returned
the Factory as agreed, does not owe any rent or public utility fees, and has not
made any other violations, Party A shall return the Rental Deposit without interest.
	 
	 	 
	 

	 	Party B may not use the deposit for the payment of rent.
	 
	 	 
	Article 9

	 	Party B’s use of the Factory is limited to Party B’s own
research, production, and operations. The entire Factory or any
portion of it may not be subleased, loaned to another party for
use, or given to any other party for use in any other way, and
may not be used in any illegal way. However, with written
permission from Party A, Party B may sublease a part of the
Factory to an enterprise or organization agreed upon by Party
A.
	 
	 	 
	Article 10

	 	Party B shall take an administrator’s care in maintaining the
Factory and its public facilities, and be responsible for
maintaining the cleanliness of its environment.
	 
	 	 
	 

	 	Party B may not store objects on the Factory building roofs, stairwells, basements,
or other public areas or engage in any other behavior that endangers public safety. If such storage takes place, Party B shall arrange for cleanup within the time
period specified by Party A, or, if Party A carries out the cleanup, Party B shall
be responsible for the cost. If it is unknown who stored such objects, the cleanup
fee shall be paid by Party B based on the proportion of the area to the area of the
entire Factory.
	 
	 	 
	 

	 	If the Factory or its public facilities are damaged or destroyed, Party B shall be
responsible for returning them to their original condition and for compensating for
the damages, unless the damage or destruction was caused by a natural disaster or
force majeure events.
	 
	 	 
	 

	 	For damage or destruction as caused by the preceding proviso or natural factors,
Party B shall fill out the repair form and notify Party A to deal with the
situation.
	 
	 	 
	 

	 	Upon taking over management of the Factory, Party B shall immediately inspect all of
the Factory’s facilities. If any pre-existing defects exist, Party A shall be
notified

 

 

	 	 	 
	 

	 	immediately to make repairs. One month after Party B’s taking over management of the
Factory, Party B may not request a decrease in rent due to Factory defects.
	 
	 	 
	Article 11

	 	If any of Party B’s employees, users or any other persons
authorized by Party B to use the Factory cause damage to or
destruction of the Factory or its facilities, Party B shall be
jointly liable for restoring them to their original condition
and for compensating for the damages.
	 
	 	 
	Article 12

	 	Party B shall be responsible for maintaining the environmental
cleanliness of the Factory and its recesses, docks, and parking
lots (tents).
	 
	 	 
	Article 13

	 	Party B may not make any additions or changes to the Factory on
its own. However, it may do so with Party A’s prior written
consent.
	 
	 	 
	 

	 	Party B may install water, electricity, telephone, and other facilities within the
Factory, so long as they do not affect or change the structure of the Factory and
its bathrooms.
	 
	 	 
	 

	 	Party B shall comply with construction, fire safety and other regulations when
making installations in the Factory.
	 
	 	 
	Article 14

	 	Party A may send someone carrying Party A’s identification at any time to inspect Party B’s use of the Factory, and
Party B may not refuse them and shall cooperate in full.
	 
	 	 
	Article 15

	 	Party A is responsible for the land and property taxes of the Factory.
	 
	 	 
	 

	 	Party B shall take out the insurance needed on all machinery, equipment, and
facilities that it places within the Factory. If these are damaged in any way, Party
A will not undertake any liability.
	 
	 	 
	Article 16

	 	If any of the following situations occur, Party A may at any time notify Party B of the
termination of this Agreement, take back the Factory, and not be obligated to return any rent
already paid:
	 
	 	 
	 

	 	11.   Party B loses its qualifications to operate or provide service
within the park or is removed from the park by Party A in accordance with the
law.

	 
	 	 
	 

	 	12.   Party B has not begun to use the Factory after two months from
the start of the lease term, or has stopped using the Factory or using the
Factory in accordance with this Agreement for at least two months, and, after
written notification from Party A, has not remedied the situation on time.

	 
	 	 
	 

	 	13.   Party B is late in paying rent for two consecutive months or
more.

	 
	 	 
	 

	 	14.   Party B violates Article 9 or Article 14 of this Agreement.

	 
	 	 
	 

	 	15.   Party B violates Article 10, Article 12, Article 13, Article
19, Article 20, Article 22 Clause 1, Article 22 Clause 4, Article 22 Clause 5,
or Article 23 Clause 2 of this Agreement, and, after written notification from
Party A, has not remedied the situation on time.

	 
	 	 
	Article 17

	 	When the lease term expires or is terminated, Party B shall return the Factory to its
original condition and return it empty to Party A.
	 
	 	 
	 

	 	When, according to the above stipulation, Party B returns the Factory, Party B shall
be responsible for its cleaning and all related fees. If Party B is negligent in
cleaning the Factory and its public facilities, Party A may hire cleaners and the
fees will be deducted from Party B’s Rental Deposit. If the Rental Deposit cannot
cover all of the fees, Party B shall be responsible for the remainder.
	 
	 	 
	 

	 	Any items left in the Factory at the time when it is returned shall be considered as
discarded, and Party B may not demand any compensation if Party A deals with them.
Any costs paid by Party A to clean up said items shall be deducted from Party B’s
Rental Deposit. If the Rental Deposit cannot cover all of the costs, Party B shall
be responsible for the remainder.
	 
	 	 
	 

	 	After the lease term expires or is terminated, if Party B has not yet completed the
procedures for returning the Factory as stipulated in this article, and if Party A
has performed three consecutive days’ inspections within 10 days and finds no
personnel or users of Party B, Party B unequivocally agrees that Party A may open
and change

 

 

	 	 	 
	 

	 	the locks on the Factory, enter the Factory, clean the Factory and return it to its
original condition. Any items left within the Factory shall be considered discarded.
	 
	 	 
	 

	 	Party B agrees to be responsible for any costs paid by Party A as stipulated above
relating to opening and changing locks, cleaning, restoring the Factory to its
original condition, and dealing with discarded items in accordance with Clauses 2
and 3.
	 
	 	 
	Article 18

	 	After the lease term expires or is terminated, if Party B is
late in returning the Factory to Party A as stipulated in this
Agreement, for each day late, Party B shall pay Party A double
rent for each delayed day as penalty fee, and shall compensate
Party A for the losses incurred.
	 
	 	 
	Article 19

	 	Party B shall file reports on time for the Factory based on
public building safety inspection certificates and reporting
methods and maintenance and reporting standards for fire safety
equipment at each location.
	 
	 	 
	Article 20

	 	The weight-bearing load of the building design is 500 kg per
square meter. In order to ensure the safety of the building’s
structure, Party B shall take note of the weight-bearing load
when using the Factory, and consult technicians or architects.
The weight-bearing load limit shall never be exceeded.
	 
	 	 
	Article 21

	 	All requests and notices related to this Agreement should be
made in written Chinese, and delivered in person or by mail
according to the addresses provided by the Parties in this
agreement.
	 
	 	 
	 

	 	If either Party changes its address, it shall notify the other Party in writing
within seven days of the change.
	 
	 	 
	 

	 	Said notice shall be seen as legally being delivered even if the notice is still in
the delivering process.
	 
	 	 
	Article 22

	 	Party B shall strictly fulfil all obligations of all articles of this Agreement, and
shall independently seek a joint Guarantor. After assisting the Guarantor in reading this
Agreement, the Guarantor shall stamp and sign this Agreement in the proper space, and leave
two copies of the Guarantor’s identification card that shall serve as appendices to this
Agreement. The copies shall be made of the original identification card, and Party B and the
Guarantor shall ensure that the appearance of the copy is exactly the same as the original,
and that no falsification has been made.
	 
	 	 
	 

	 	If Party B violates any of the Articles of this Agreement, the Guarantor shall
unconditionally undertake joint liabilities with Party B, and agrees to forfeit the
right of discussion given in Article 745 of the Civil Law.
	 
	 	 
	 

	 	Party A must first agree for the Guarantor to withdraw during the Agreement period.
The Guarantor’s liabilities may not be exempted unless agreed to by Party A.
	 
	 	 
	 

	 	Apart from the Guarantor’s obligations, Party B also may guarantee the fulfilment of
payment through written bank guarantee, joint guarantee insurance form from an
insurance company, fixed deposit form pledged by a finance organization, or other
methods authorized by Party A, and the guarantee period shall begin before or on the
starting date of this Agreement.
	 
	 	 
	 

	 	For those that guarantee the fulfilment of payment through written bank guarantee,
joint guarantee insurance form from an insurance company, fixed deposit form pledged
by a finance organization, or other methods authorized by Party A, their guarantee
liabilities and contents coincide with those of the Guarantor. For those for which
related business administration mechanisms or financial laws require written
registrations of the expiration date, the expiration date shall be at least sixty
days after the date of expiration date of this Agreement.
	 
	 	 
	Article 23

	 	Parties that sign this Agreement shall ensure that they have full authorization to do
so, and that they have the power to act as signing representatives to this Agreement.
	 
	 	 
	 

	 	The company stamp and seal used by Party B for this Agreement must be the same as
the ones used by Party B in its registration procedures with Party A.
	 
	 	 
	Article 24

	 	If this Agreement is involved in litigation, the Parties agree to follow Republic of China laws and to fall within
the Taiwan Xinzhu local court’s jurisdiction.
	 
	 	 
	Article 25

	 	This rental Agreement consists of two copies and each Party holds one.

 

 

Agreement made between:

Party A: Science and Industry Park Administration

Representative: Huang Derui

Address: No. 2 Xin’an Road, Xinzhu City

Party B:
Optronics International Corporation

Representative:

Address: No. 46 Yuangqu Second Road, Xinzhu Science Park

Party B’s Guarantor: Qiu Mingji

Guarantor’s identification number: Q120811843

Republic of China January 1, 2008

 

 

Science and Industry Park Administration Factory Lease Agreement

(one year)

			
	Lessor: Science and Industry Park Administration
	 	(hereinafter referred to as “Party A”)
	Enters into a Lease Agreement with:	 	 
	Lessee: Optronics International Corporation

 A0327
	 	(hereinafter referred to as “Party B”)

As Party B is a park enterprise, research organization, business center, or administrative
mechanism branch as stipulated in Article 4 or Article 8 of the Science and Industry Park
administrative regulations or an industry service enterprise approved by Party A, and as agreed
upon by both Parties, Party A hereby leases its factory located within the Xinzhu Science and
Industry Park at the address stipulated in Article 1 of this Agreement (hereinafter referred to as
the Factory) to Party B. The leasing conditions are as follows:

	 	 	 
	Article 1

	 	The Factory in this agreement is located at Xinzhu Science and
Industry Park, Xinzhu county, No. 44 Yuanqu Second Road,
Building 1, which has an area of 877 square meters.
	 
	 	 
	Article 2

	 	This Agreement runs from January 1, 2008 to December 31, 2008.
	 
	 	 
	 

	 	When the lease term expires, this Agreement will be terminated automatically,
unless the Parties conclude a new lease agreement in accordance with Article 4
of this Agreement. Party B may not for any reason claim a continuation of the
leasing relationship or the right to irregular leasing.
	 
	 	 
	Article 3

	 	During the period and continuation period of this
Agreement, Party B shall act as a park enterprise,
research organization, business center, or
administrative mechanism branch as stipulated in
Article 4 or Article 8 of the Science and Industry
Park administrative regulations or an industry
service enterprise approved by Party A. If Party B
does not have the above qualifications, this
Agreement becomes invalid; If Party B subsequently
loses these mentioned qualifications, then the
Parties agree to immediately terminate this Agreement
on the date when the qualifications are lost. In such
a case, Party A does not have to notify Party B of
the loss of validity of this Agreement.
	 
	 	 
	Article 4

	 	Party A shall send a written lease agreement for the
continuation of the leasing relationship one month
before this Agreement expires.
	 
	 	 
	 

	 	Party B shall respond within fifteen (15) days of receiving this lease agreement as
to whether they will continue leasing after the expiration of the lease. If the
agreement is to be continued, then it should be stamped and related documents should
be examined before Party B sends them to Party A within the aforementioned period.
	 
	 	 
	 

	 	If Party B violates this Agreement during the continuation period, then upon
continuation of the agreement, Party A shall request that Party B notarize the
continuation agreement, and the notarization fee shall be paid by Party B.
	 
	 	 
	Article 5

	 	If Party B decides to terminate this Agreement before it has expired, Party B shall
notify Party A in writing two months in advance. During these two months, Party B shall
continue to pay rent whether or not they have already moved out of the Factory.
	 
	 	 
	 

	 	Party A shall, due to revisions of laws or changes in government policies, notify
Party B two months in advance in writing of the termination of this Agreement.
	 
	 	 
	Article 6

	 	The monthly rent for the Factory shall be NTD 110,502. Beginning on this Agreement’s
rental starting date, Party B shall download the subsequent month’s rent from Party A’s
website (website: www.sipa.gov.tw), and follow the payment procedures stipulated by Party A to
make a one-time payment of the aforementioned rent before the fifteenth day of each month, and
separately pay the business tax. Party B shall be responsible for utility fees, and pay public
utility fees at the same time as the rent.

 

 

	 	 	 
	 

	 	Party A shall abide by relevant laws and regulations, and upon adjustments in the
publicly declared Factory land price or rental price for national lands approved by
the Taiwan government, adjust at any time the amount of the rent. Party B shall pay
attention on said public declarations of land prices and rental prices for national
lands.
	 
	 	 
	 

	 	Any adjustments in the rent shall enter into force since the month after said
adjustments in public declarations of land prices and rental prices for national
lands are made. If the rent has already been paid before Party A’s website could be
updated, the remaining balance shall be sought or returned.
	 
	 	 
	Article 7

	 	Party B shall pay the following penalty fees for not paying rent or utility fees owed

during the agreed period:
	 
	 	 
	 

	 	13.    If the payment is less than one month late, then the total
amount due plus a fee of two percent shall be collected.

	 
	 	 
	 

	 	14.    If the payment is between one and two months late, then the
total amount due plus a fee of five percent shall be collected.

	 
	 	 
	 

	 	15.    If the payment is between two and three months late, then the
total amount due plus a fee of ten percent shall be collected.

	 
	 	 
	 

	 	16.   If the payment is over three months late, then the total amount
due plus a fee of fifteen percent shall be collected.

	 
	 	 
	Article 8

	 	Party B shall pay a Rental Deposit of NTD 331,506 based on the cost of three months’ rent
at the time of signing this Agreement, to ensure Party B follows each Article of this
Agreement. The Rental Deposit shall be paid in full at the time when Party B signs this
Agreement, and Party A shall issue a receipt proof. If the rent is adjusted, or this Agreement
is continued or extended, the amount of the Rental Deposit shall not be changed.
	 
	 	 
	 

	 	If this Agreement is terminated or the lease term expires, and Party B has returned
the Factory as agreed, does not owe any rent or public utility fees, and has not
made any other violations, Party A shall return the Rental Deposit without interest.
	 
	 	 
	 

	 	Party B may not use the deposit for the payment of rent.
	 
	 	 
	Article 9

	 	Party B’s use of the Factory is limited to Party B’s own
research, production, and operations. The entire Factory or any
portion of it may not be subleased, loaned to another party for
use, or given to any other party for use in any other way, and
may not be used in any illegal way. However, with written
permission from Party A, Party B may sublease a part of the
Factory to an enterprise or organization agreed upon by Party
A.
	 
	 	 
	Article 10

	 	Party B shall take an administrator’s care in maintaining the
Factory and its public facilities, and be responsible for
maintaining the cleanliness of its environment.
	 
	 	 
	 

	 	Party B may not store objects on the Factory building roofs, stairwells, basements,
or other public areas or engage in any other behavior that endangers public safety. If such storage takes place, Party B shall arrange for cleanup within the time
period specified by Party A, or, if Party A carries out the cleanup, Party B shall
be responsible for the cost. If it is unknown who stored such objects, the cleanup
fee shall be paid by Party B based on the proportion of the area to the area of the
entire Factory.
	 
	 	 
	 

	 	If the Factory or its public facilities are damaged or destroyed, Party B shall be
responsible for returning them to their original condition and for compensating for
the damages, unless the damage or destruction was caused by a natural disaster or
force majeure events.
	 
	 	 
	 

	 	For damage or destruction as caused by the preceding proviso or natural factors,
Party B shall fill out the repair form and notify Party A to deal with the
situation.
	 
	 	 
	 

	 	Upon taking over management of the Factory, Party B shall immediately inspect all of
the Factory’s facilities. If any pre-existing defects exist, Party A shall be
notified immediately to make repairs. One month after Party B’s taking over
management of the Factory, Party B may not request a decrease in rent due to Factory
defects.

 

 

	 	 	 
	Article 11

	 	If any of Party B’s employees, users or any other persons
authorized by Party B to use the Factory cause damage to or
destruction of the Factory or its facilities, Party B shall be
jointly liable for restoring them to their original condition
and for compensating for the damages.
	 
	 	 
	Article 12

	 	Party B shall be responsible for maintaining the environmental
cleanliness of the Factory and its recesses, docks, and parking
lots (tents).
	 
	 	 
	Article 13

	 	Party B may not make any additions or changes to the Factory on
its own. However, it may do so with Party A’s prior written
consent.
	 
	 	 
	 

	 	Party B may install water, electricity, telephone, and other facilities within the
Factory, so long as they do not affect or change the structure of the Factory and
its bathrooms.
	 
	 	 
	 

	 	Party B shall comply with construction, fire safety and other regulations when
making installations in the Factory.
	 
	 	 
	Article 14

	 	Party A may send someone carrying Party A’s identification at any time to inspect Party B’s use of the Factory, and
Party B may not refuse them and shall cooperate in full.
	 
	 	 
	Article 15

	 	Party A is responsible for the land and property taxes of the Factory.
	 
	 	 
	 

	 	Party B shall take out the insurance needed on all machinery, equipment, and
facilities that it places within the Factory. If these are damaged in any way, Party
A will not undertake any liability.
	 
	 	 
	Article 16

	 	If any of the following situations occur, Party A may at any time notify Party B of the
termination of this Agreement, take back the Factory, and not be obligated to return any rent
already paid:
	 
	 	 
	 

	 	16.  Party B loses its qualifications to operate or provide service
within the park or is removed from the park by Party A in accordance with the
law.

	 
	 	 
	 

	 	17.  Party B has not begun to use the Factory after two months from
the start of the lease term, or has stopped using the Factory or using the
Factory in accordance with this Agreement for at least two months, and, after
written notification from Party A, has not remedied the situation on time.

	 
	 	 
	 

	 	18.  Party B is late in paying rent for two consecutive months or
more.

	 
	 	 
	 

	 	19.  Party B violates Article 9 or Article 14 of this Agreement.

	 
	 	 
	 

	 	20.  Party B violates Article 10, Article 12, Article 13, Article
19, Article 20, Article 22 Clause 1, Article 22 Clause 4, Article 22 Clause 5,
or Article 23 Clause 2 of this Agreement, and, after written notification from
Party A, has not remedied the situation on time.

	 
	 	 
	Article 17

	 	When the lease term expires or is terminated, Party B shall return the Factory to its
original condition and return it empty to Party A.
	 
	 	 
	 

	 	When, according to the above stipulation, Party B returns the Factory, Party B shall
be responsible for its cleaning and all related fees. If Party B is negligent in
cleaning the Factory and its public facilities, Party A may hire cleaners and the
fees will be deducted from Party B’s Rental Deposit. If the Rental Deposit cannot
cover all of the fees, Party B shall be responsible for the remainder.
	 
	 	 
	 

	 	Any items left in the Factory at the time when it is returned shall be considered as
discarded, and Party B may not demand any compensation if Party A deals with them.
Any costs paid by Party A to clean up said items shall be deducted from Party B’s
Rental Deposit. If the Rental Deposit cannot cover all of the costs, Party B shall
be responsible for the remainder.
	 
	 	 
	 

	 	After the lease term expires or is terminated, if Party B has not yet completed the
procedures for returning the Factory as stipulated in this article, and if Party A
has performed three consecutive days’ inspections within 10 days and finds no
personnel or users of Party B, Party B unequivocally agrees that Party A may open
and change the locks on the Factory, enter the Factory, clean the Factory and return
it to its original condition. Any items left within the Factory shall be considered
discarded.

 

 

	 	 	 
	 

	 	Party B agrees to be responsible for any costs paid by Party A as stipulated above
relating to opening and changing locks, cleaning, restoring the Factory to its
original condition, and dealing with discarded items in accordance with Clauses 2
and 3.
	 
	Article 18

	 	After the lease term expires or is terminated, if Party B is
late in returning the Factory to Party A as stipulated in this
Agreement, for each day late, Party B shall pay Party A double
rent for each delayed day as penalty fee, and shall compensate
Party A for the losses incurred.
	 
	 	 
	Article 19

	 	Party B shall file reports on time for the Factory based on
public building safety inspection certificates and reporting
methods and maintenance and reporting standards for fire safety
equipment at each location.
	 
	 	 
	Article 20

	 	The weight-bearing load of the building design is 500 kg per
square meter. In order to ensure the safety of the building’s
structure, Party B shall take note of the weight-bearing load
when using the Factory, and consult technicians or architects.
The weight-bearing load limit shall never be exceeded.
	 
	 	 
	Article 21

	 	All requests and notices related to this Agreement should be
made in written Chinese, and delivered in person or by mail
according to the addresses provided by the Parties in this
agreement.
	 
	 	 
	 

	 	If either Party changes its address, it shall notify the other Party in writing
within seven days of the change.
	 
	 	 
	 

	 	Said notice shall be seen as legally being delivered even if the notice is still in
the delivering process.
	 
	 	 
	Article 22

	 	Party B shall strictly fulfil all obligations of all articles of this Agreement, and
shall independently seek a joint Guarantor. After assisting the Guarantor in reading this
Agreement, the Guarantor shall stamp and sign this Agreement in the proper space, and leave
two copies of the Guarantor’s identification card that shall serve as appendices to this
Agreement. The copies shall be made of the original identification card, and Party B and the
Guarantor shall ensure that the appearance of the copy is exactly the same as the original,
and that no falsification has been made.
	 
	 	 
	 

	 	If Party B violates any of the Articles of this Agreement, the Guarantor shall
unconditionally undertake joint liabilities with Party B, and agrees to forfeit the
right of discussion given in Article 745 of the Civil Law.
	 
	 	 
	 

	 	Party A must first agree for the Guarantor to withdraw during the Agreement period.
The Guarantor’s liabilities may not be exempted unless agreed to by Party A.
Apart from the Guarantor’s obligations, Party B also may guarantee the fulfilment of
payment through written bank guarantee, joint guarantee insurance form from an
insurance company, fixed deposit form pledged by a finance organization, or other
methods authorized by Party A, and the guarantee period shall begin before or on the
starting date of this Agreement.
	 
	 	 
	 

	 	For those that guarantee the fulfilment of payment through written bank guarantee,
joint guarantee insurance form from an insurance company, fixed deposit form pledged
by a finance organization, or other methods authorized by Party A, their guarantee
liabilities and contents coincide with those of the Guarantor. For those for which
related business administration mechanisms or financial laws require written
registrations of the expiration date, the expiration date shall be at least sixty
days after the date of expiration date of this Agreement.
	 
	 	 
	Article 23

	 	Parties that sign this Agreement shall ensure that they have full authorization to do
so, and that they have the power to act as signing representatives to this Agreement.
	 
	 	 
	 

	 	The company stamp and seal used by Party B for this Agreement must be the same as
the ones used by Party B in its registration procedures with Party A.
	 
	 	 
	Article 24

	 	If this Agreement is involved in litigation, the Parties agree to follow Republic of China laws and to fall within
the Taiwan Xinzhu local court’s jurisdiction.
	 
	 	 
	Article 25

	 	This rental Agreement consists of two copies and each Party holds one.

 

 

Agreement made between:

Party A: Science and Industry Park Administration

Representative: Huang Derui

Address: No. 2 Xin’an Road, Xinzhu City

Party B: Optronics International Corporation

Representative:

Address: No. 46 Yuangqu Second Road, Xinzhu Science Park

Party B’s Guarantor: Qiu Mingji

Guarantor’s identification number: Q120811843

Republic of China January 1, 2008exv10w27

 

EXHIBIT 10.27

	 	 	 
	 

	 	Region:                           
	 

	 	Agreement No.              

House Lease Agreement

Lease term: From January 1st, 2008 till December 1st, 2008

The premise’s number: Room No. 8 and No. 12 (two rooms) on the 8th floor, Room Nos. 1,
3, 5 (three rooms) on the 10th floor and Nos. 1, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15,
16, 17 (ten rooms) on the 9th floor

Garage No.:

Lessee: Optronics International Corporation

Lessor: Midland Stock Co., Ltd.

 

 

House Lease Agreement

Lessor: Midland Stock Co., Ltd.

Legal representative: Wang Qingting (hereinafter referred to as “Party A”)

Lessee:
Optronics International Corporation

Legal representative: Manier (hereinafter referred to as “Party B”)

WHEREAS,

The parties conclude this agreement that shall be abided by on the issues of house lease.

Article 1: Premise

     Party A leases some rooms that are located at No. 81 Shuili Road, Xinzu City to Party B for
use as a factory office. The leased rooms include Room No. 8 and No. 12 on the 8th
floor, Room Nos. 1, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17 (ten rooms) on the 9th
floor as well as Room Nos. 1, 3, 5 (three rooms) on the 10th floor. The leased area
including public areas is 1677.39 pyeong. Please refer to the attached picture for the location.
The indoor situation is the same as current one.

Article 2: Term of Lease

     The lease term of this agreement will be from January 1, 2008 till December 1, 2008. This
agreement will automatically be terminated upon the expiration of this lease term. Without the
written approval of Party A, the term lease may not be renewed.

Article 3: Rent

	 	1.	 	The rent per month is NTD1,230,000 (tax included).
	 
	 	2.	 	Party B shall issue a check to Party A for the rent on the first day of each month.
In case Party B doesn’t pay the rent on time, Party B shall be charged with a late payment
penalty. Method of calculating late payment penalty: 0.1% of the total amount due per day.
However, the delay in payment cannot be more than ten days; otherwise, Party A is entitled
to terminate the agreement unilaterally. Party A may also stop electricity and water
supply inside the premises. Party B shall not raise any objection and shall move out of
the premises immediately. Additionally, Party B shall pay off all the rent as well as the
other expenses that Party B shall undertake.

Article 4: Deposit

	 	1.	 	The deposit of lease is NTD3,318,000 that Party B shall pay to Party A when signing
this agreement. When the lease term expires and Party B moves out of the building, return
the rooms to the original state and

 

 

	 	 	 	finishes going through the procedures of the registration of the company’s address change,
Party A shall pay back the deposit to Party B without any interest deducted. However, Party
A is entitled to deduct from the deposit the fees that Party B is entitled to pay and
didn’t pay.
	 
	 	2.	 	Within the lease term, Party B shall not propose to balance the deposit against the
rent. Additionally, the receipt proof of the deposit shall not be used as a guarantee for
any debt.

Article 5: Public areas and equipment

	 	1.	 	Public areas cover the building’s corridor, elevator, stairs, toilet, tearoom,
electronic control room and air conditioner control room. Party B is entitled to pass
freely and to use this equipment. However, it is forbidden to place any articles that
influence the appearance and impede the usage of the public areas.
	 
	 	2.	 	Party B shall be liable for any damages or losses caused by Party B’s inappropriate
use of the public areas and equipment.
	 
	 	3.	 	Party B shall apply for telephone lines that will be connected though pre-built
pipes, lines and outlets.
	 
	 	4.	 	When using the premises, Party B shall comply with the regulations stipulated by
Xujia Economic and Trade Park. In case Party B violates the regulations and doesn’t
correct actions with Party A’s notification and persuasion, Party A is entitled to
terminate this agreement.

Article 6: Water supply fee, tax and management fee

	 	1.	 	Within the term of the lease, Party B shall undertake the water supply fee,
telephone fee, public facilities fee, and business tax as well as other expenses caused
by Party B’s activities.
	 
	 	2.	 	Party A shall pay for the house tax and lease income tax.
	 
	 	3.	 	Party B shall pay the management fee to the building management committee as of the
date of Party B’s moving into the building.
	 
	 	4.	 	The management fund is calculated on the basis of NTD100 per pyeong. When signing
this agreement, Party B shall pay the management fund of NTD167,830 to Party A, who
obtains this payment for the building management committee. The management fund will be
used as a circulating fund for the building’s management. And the fund shall be returned
to Party B without any interest deducted when the agreement is terminated and Party B
moves out of the building.

Article 7: Design and Decoration

	 	1.	 	If Party B plans to design or decorate within the area of the premises, Party B
shall get Party A’s written approval first. Party B shall pay all the expenses caused by
the design and decoration. When the lease term ends, Party B shall restore the premises
to its original state and

 

 

	 	 	 	shall not cause any damages to the premises. In case Party B doesn’t restore the premises
to its original state in ten days from the end of the lease term, Party B agrees that
Party A is entitled to complete the restoration. In this case, Party B shall pay the
expenses for tearing down, moving, cleaning, and restoration as well as the rent for the
extended days caused by the restoration.
	 
	 	2.	 	Here is the definition for the original state of the premises: please refer to the
attached pictures of lamps configured in the ceiling for such flat places. Wall surface
is fireproof and has insulation space. The group surface is plastered with cement.
	 
	 	3.	 	The decoration materials that Party B uses for decoration shall comply with the
firefighting inspection regulations. That is to say, Party B shall ask the manufacturers
of decoration materials for the proof of fire resistance and flame retardant certificates
and marks that are approved and distributed by the administrative bureaus. If the
examination of the administrative bureaus proves that the materials do not comply with
the regulations and any accident happens because of this, Party B shall undertake the
caused losses and Party A has no any liability.

Article 8: Restrictions on use of premises

     Party B shall fulfill its obligations while using the premises and shall not do the following:

	 	1.	 	The premises shall not be used as a residence, kitchen or anything else that can
influence sanitation, security, public order and tranquility.
	 
	 	2.	 	Prohibited products shall not be stored on the premises. And any illegal business
shall not be operated on the premises.
	 
	 	3.	 	It is forbidden to use high-voltage electronic devices and to install high-voltage
electronic devices or neon lights without permission. Additionally, Party B shall not
change the designed electronic devices and lines without permission.
	 
	 	4.	 	On the premises, it is forbidden to do business, perform experiments or store
prohibited products. It is also forbidden to bring prohibited products onto the premises.
	 
	 	5.	 	The lessee shall not post or hang various advertisements or boards on the outside
wall of the building or on either side of the windows in order to maintain the overall
appearance of the building.
	 
	 	6.	 	Party B shall not partially or completely transfer, share, or lend the premises to
any third parties in any way. However, with Party A’s permission, Party B’s sub-companies
or partner companies will not be included in this paragraph.

Article 9: Compensation for damages or losses

     Party B shall keep the premises as well as public facilities in perfect order.

 

 

In case Party B or Party B’s correlative persons cause any damages or losses, whether
intentionally or unintentionally, Party B shall undertake the caused liabilities of renovation or
compensation.

Article 10: Return of the premises

	 	1.	 	Upon expiration of the lease term and termination of agreement, Party B shall
restore the premises to its original state immediately. With Party A’s examination or
acceptance, the premises shall be returned to Party A. Party B shall not demand
compensation for the expenses incurred for moving, decoration or other things.
	 
	 	2.	 	Upon expiration of the lease term and termination of agreement, Party B shall go
through the procedures to move the registration address outside of the premises.
	 
	 	3.	 	Upon expiration of the lease term, if vehicles still occupy the places in the
garage, Party A is entitled to pull the vehicles out of the garage directly, and the
resulting expenses will be deducted from the deposit. Additionally, Party A will not take
any liabilities of damages or losses caused in this process to Party B.

Article 11: Termination before expiration of the lease term

     In case either party plans to terminate this agreement before expiration of the lease term,
Party B shall notify Party A in writing two months in advance of the termination date.
Additionally, Party B shall, without any condition, agree to give half of the total amount of the
deposit to Party A as the penalty for early termination. Party B shall be liable for all the
payable expenses and fulfill all duties before moving out of the premises, when Party B gives the
premises back to Party A completely. After all the payable expenses are deducted from the paid
rent, Party A shall return the surplus part of the rent that Party B didn’t use to Party B.

Article 12: Breach penalty

	 	1.	 	In case Party B breaches any article in this agreement, Party A is entitled to
terminate this agreement immediately and to confiscate the deposit. Additionally, Party B
shall move out of the premises and give it back to Party A for checks in accordance with
article 10 of this agreement.
	 
	 	2.	 	Upon termination of this agreement as well as expiration of the lease term, if Party
B doesn’t move out of the premises and give it back to Party A within the time limit,
Party B shall pay triple rent to Party A from the second date of this agreement as penalty
compensation.

Article 13: Rent adjustment

     Party B agrees that, for each completion of a one-year lease, Party A is entitled to adjust
the monthly rent. However, the rent adjustment shall be less

 

 

than or equal to 10% of the rent of the previous year.

Article 14: Renewal of lease term

	 	1.	 	Upon expiration of the lease term, Party B shall notify Party A in writing two
months in advance whether Party B plans to renew the lease term. If Party B plans to
renew this agreement and Party A agrees to continue leasing, the parties will conclude a
new agreement 15 days before expiration of the lease term.
	 
	 	2.	 	The notification to the Parties shall be in writing and be delivered to the
addresses mentioned in this agreement.

Article 15: Within the lease term, the Parties shall comply with this agreement. When any dispute
arises, the Parties shall try to solve the problems through friendly negotiation. If the dispute
cannot be solved through negotiation, the Parties agree to submit the dispute to Xinzu First Court
for the first legislation procedure.

Article 16: This agreement has two original copies and each party holds one.

Remark: Upon expiration of the lease term, if Party A still plans to lease the premises, on equal
conditions, Party B has preference right over the lease of the premises. However, please refer to
article 14 of this agreement for the conditions and requirements.

 

 

Lessor: Midland Stock Co., Ltd.

Lessee: Optronics International Corporation

Original premise: No. 81 Shuili Road, Room No. 8 and No. 12 on the 8th floor, Room Nos.
1, 3, 5 on the 10th floor and Nos. 1, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17 on
the 9th floor (20 rooms in total)

Original lease term: from January 1, 2008 till December 1, 2008

Original rent: NTD1,230,000 (tax included)

Original deposit: NTD3,318,000

Original management fund: NTD167,739

Because of the following causes, the Parties agree on the amendments for this agreement:

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Seal and	 	Seal and
	 	 	 	 	Original	 	Amended	 	Signature	 	Signature
	Cause	 	 	 	Agreement	 	Agreement	 	by Lessor	 	by Lessee
	 	 	Premises
	 	 	 	 	 	 	 	 
	 	 	Lease term
	 	 	 	 	 	 	 	 
	 	 	Rent
	 	 	 	 	 	 	 	 
	 	 	Deposit
	 	 	 	 	 	 	 	 
	 	 	Management fund
	 	 	 	 	 	 	 	 
	 	 	Premises
	 	 	 	 	 	 	 	 
	 	 	Lease term
	 	 	 	 	 	 	 	 
	 	 	Rent
	 	 	 	 	 	 	 	 
	 	 	Deposit
	 	 	 	 	 	 	 	 
	 	 	Management fund
	 	 	 	 	 	 	 	 
	 	 	Premises
	 	 	 	 	 	 	 	 
	 	 	Lease term
	 	 	 	 	 	 	 	 
	 	 	Rent
	 	 	 	 	 	 	 	 
	 	 	Deposit
	 	 	 	 	 	 	 	 
	 	 	Management fund
	 	 	 	 	 	 	 	 
	 	 	Premises
	 	 	 	 	 	 	 	 
	 	 	Lease term
	 	 	 	 	 	 	 	 
	 	 	Rent
	 	 	 	 	 	 	 	 
	 	 	Deposit
	 	 	 	 	 	 	 	 
	 	 	Management fund
	 	 	 	 	 	 	 	 
	 	 	Premises
	 	 	 	 	 	 	 	 
	 	 	Lease term
	 	 	 	 	 	 	 	 
	 	 	Rent
	 	 	 	 	 	 	 	 
	 	 	Deposit
	 	 	 	 	 	 	 	 
	 	 	Management fund
	 	 	 	 	 	 	 	 

 

 

Party A (Lessor)

Company Name: Midland Stock Co., Ltd.

Legal Representative: Wang Qingting

Universal code: 47286625

Address: Room No. 2, 10th floor, No.81, Shuili Road, Xinzu City

Telephone: (03)5721305

Party B (Lessee)

Company name: Optronics International Corporation

Legal Representative: Manier

Universal code: 84149792

Address: No.46, Park Road 2, Science Park, Xinzu City

Telephone: (03)5169222

January 1, 2008

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}]]