Document:

Exhibit 10.27

 

(93)Nanerjianzi No. 039

 

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.)

  	
   

  	
   

  	
   

  	
  Right

  scope 

  of the 

  lease

  	
   

  	
   

  	
   

  	
  Public 

  facilities 

  	
   

  	
   

  	
   

  
	
  Zone

  	
   

  	
  Section

  	
   

  	
  Sub-section

  	
   

  	
  Number 

  of the 

  land

  	
   

  	
  Leased 

  area

  (m2)

  	
   

  	
   

  	
  Rent 

  (dollar/month)

  	
   

  	
  construction
  

  expense

  (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. 09301033550 on
  November 01, 2004 with an area of 1,346 (m2)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Apportioned public
  facility land

  	
   

  	
  248

  	
   

  	
  1/1

  	
   

  	
  2,852

  	
   

  	
  0

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (The following is blank)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  15,479

  	
   

  	
  0

  	
   

  	
   

  	
   

  

 

2.                    The lease term is totally ten years from
December 20, 2004 to December 19, 2014.

 

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 15,479 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 December 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

 

 

December 20, 2005

 

 

 

Annexed Drawing of (93) Nanerjianzi No. 039

 

Place of factory building land leased out

 

Right scope: 2/16

 

Scale: 1/2000Exhibit 10.28

 

 

(94)Nanerjianzi No. 003

 

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)

  	
   

  	
  Remarks

  
	
  Zone

  	
   

  	
  Section

  	
   

  	
  Sub-section

  	
   

  	
  Number

  of the

  land

  	
   

  
	
  Nanzi
  District

  	
   

  	
  Heping
  section

  	
   

  	
  Second

  	
   

  	
  711

  	
   

  	
  8,781

  	
   

  	
  1/16

  	
   

  	
  6,314

  	
   

  	
  0

  	
   

  	
  Approved
  for lease the land hereunder by the letter of Jingjiachu erjianzi No.
  09301039060 on December 15, 2004 with an area of 673 (m2)

  
	
   

  	
   

  	
  Apportioned
  public facility land

  	
   

  	
   

  	
   

  	
  124

  	
   

  	
  1/1

  	
   

  	
  1,426

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  (The
  following is blank.)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  7,740

  	
   

  	
  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
Part 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 7,740 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 through
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 it 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 with 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 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 a 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 Jiachan Road, Nanzi district, Kaohsiung City

 

January
10, 2005

 

 

Annexed
Drawing of (94) Nanerjianzi No. 003

 

Place
of factory building land leased out

 

Right
scope: 1/16

 

Scale:
1/2000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]