Document:

Exhibit
10.23

 

(93)
Nanerjianzi No. 023

 

Manufacturing
and Export Zone Administrative Department,

Ministry of Economy Nanzi Manufacturing and Export Zone

Land Lease Contract

 

Phillips Electronic Building Elements
Industries (Taiwan) Ltd. (the “Lessee”) hereby leases two plots of public land
in Nanzi Manufacturing and Export Zone from Manufacturing and Export Zone
Administrative Department, Ministry of Economy (the “Lessor”). The lessee and
the lessor enter into the lease contract as follows:

 

1.             Place,
Rent and expenses of the Land

 

	
  Number of the property

  	
  Place of the land

  	
  Leased area (m3)

  	
  Monthly rent/m3
  (new Taiwan Dollars

  	
  Rent payable per month (New
  Taiwan dollars)

  	
  Public facilities
  construction expense payable per month (New Taiwan dollars)

  	
  Remarks

  
	
  Zone

  	
  Section

  	
  Subsection

  	
  Number
  of the land

  
	
  ALO82

  	
  Nanzi district

  	
  Helping section

  	
  The second subsection

  	
  711

  	
  514

  	
  11.5

  	
  9,143

  	
  0

  	
  Approved for lease the land
  hereunder by the letter of Jingjiachu erjianzi No. 09301019020 on June 24,
  2004 with an area as listed in this table. The land is the apportioned base
  area for purchasing standard factory building

  
	
  The second subsection

  	
  712

  	
  281

  	
   

  	
   

  	
   

  
	
  Total

  	
  795

  	
  11.5

  	
  9,143

  	
  0

  

 

2.                                       The lease term
is totally ten years from July 8, 2004 to July 7, 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
and the offices of the branches established by responsible organ of the
enterprise within the zone.

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

5.                                       If the lessee
applies for leasing land for constructing factory buildings or other buildings
by itself, the following land shall be reserved as setback land:  three meters between and behind adjoining
lands leased by other persons; six meters facing a side of main road, five
meters facing a side of inner ring and branch road, and four meters facing a
side of sub-branch road. The lessee shall clean up and green the setback land
at its own expense.

6.                                       If the lessee
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, the administrative department will
administer the land as a whole, and the lessee shall not claim that the land
shall be used for building or other purpose.

8.                                       The lessee
shall automatically pay the treasury agency as designated by the lessor the
rent and expenses 9,143 New Taiwan Dollars as set forth in Article 1 hereof
before the fifth day of each month. If the lessee 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 the lessee
fails to pay off the rent, expenses and liquidated damages after four months
from the payment day, the lessor may recover the rent, expenses and liquidated
damages and immediately terminate the contract.

 

9.                                       Besides paying
the rent monthly, the lessee shall pay the public facility construction
expenses as provided for in Article 11 of Manufacturing and Export
Zone Setup and Administrative Ordinance at ...New Taiwan Dollars per
square meter per month based on the area of the leased land for up to twenty years
for each plot. The twenty years period of the public facility constructions
expenses set forth in this contract will expire on              (date).

 

10.                                 In the event
the government prescribes the land price over again according to law;

 

 

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 the lessee
leases the land for constructing factory buildings or other buildings by
itself, it shall commence the construction within three months from the
execution of the contract and complete the construction according to the plan.
If the lessee fails to commence the construction within the stipulated period
or though the lessee 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, the lessor may terminate the
contract and withdraw the land, and the rent and public facility construction
expenses already paid will not be refunded. If there are uncompleted buildings
on the land, the lessor can dispose them according to law or require the lessee
to remove them and restitute the original state, and the lessee shall not raise
any objection or resist.

 

12.                                 If the lessee
must excavate roads within the zone, water supply (drainage) pipeline or other
public facilities for construction factory buildings or other buildings, it
shall apply to the lessor for approval and pay the deposit in advance and shall
restitute the original state after the completion of the construction. The
deposit paid by the lessee will be refunded without interest after restituting
the original state; otherwise, the deposit will not be refunded.

 

13.                                 The lessor may
terminate the contract by notifying the lessee under any of the following
circumstances.

13.1                           The use of the
land by the lessee breaches the provisions of this contract.

13.2                           The buildings
owned by the lessee are purchased or requisitioned for value according to
Article 12 of Manufacturing and Export Zone Setup and
Administration Ordinance.

13.3                           Accumulated
rent and expenses defaulted by the lessee reaches the total amount of the rent
and expenses for four months.

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

13.5                           The investment scheme
is withdrawn after approved.

 

14.                                 If the contract
is terminated according to the foregoing Article, the lessee 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 the lessee fails to
conduct such treatment or fails to complete such treatment within two years,
the lessor may dispose of or purchase all the equipments and materials in or
out of all the lessee’s buildings on the land according to law.

 

15.                                 If the lessee
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
the lessee does not apply for reletting upon expiration of the foregoing 

 

 

                                                three months
period, it shall return the land upon expiration of the lease term. The lessee
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. If the lessee fails to conduct such
treatment or fails to complete such treatment within six months, it shall be
deemed breached the contract, and the lessor may dispose of or purchase all the
lessee’s buildings and all the equipments and materials in or out of such
buildings on the land according to law.

 

16.                                 Upon
termination of this contract, impairment money will be charged monthly
according to the standard of long-term land rent for the period during which
the land is occupied by the original lessee. In the event of overdue payment,
additional interest will be charged at the annual interest rate 5% till the
payment day.

 

17.                                 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.

 

18.                                 This contract
is made in duplicate and will take effect as of the date signed by the Parties.
Each Party holds one copy. In the event of any litigation arising from this
contract, the competent court shall be designated by the lessor.

 

19.                                 The place and
area drawing of the land hereunder is as set forth in the Annex.

 

The Parties to this Contract:

 

The Contractor (Lessee):  Phillips Electronic Building Elements
Industries (Taiwan) Ltd.

Representative or Legal Representative: 
Zhuang Junyuan

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

Number of the Business License: 89002500

 

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

Ministry of Economy

Legal Representative:

Address:  600 Jiachang Road, Nanzi
district, Kaohsiung City

July 8, 2004

 

 

Annexed Drawing of (93) Nanerjianzi No. 023

 

Heping section, Nanzi district, Kaohsiung
CityExhibit
10.24

 

(93) Nanerjianzi No. 022

 

Manufacturing and Export Zone Administrative
Department,

Ministry of Economy Nanzi Manufacturing and Export Zone

Land Lease Contract

 

Philips Electronics Building Elements Industries (Taiwan) Ltd. (the “Lessee”)
hereby leases two plots of public land in Nanzi Manufacturing and Export Zone
from Manufacturing and Export Zone Administrative Department, Ministry of
Economy (the “Lessor”). The lessee and the lessor enter into the lease contract
as follows:

 

1.                                       Place,
Rent and expenses of the Land

 

	
   

  	
   

  	
  Place of the Land

  	
   

  	
   

  	
   

  	
  Monthly

  rent/(m(1))

  	
   

  	
  Rent
  payable

  per month

  	
   

  	
  Public facilities

  construction expense

  payable per month

  	
   

  	
   

  
	
  Number 

  of the 

  Property

  	
   

  	
  Zone

  	
   

  	
  Section

  	
   

  	
  Subsection

  	
   

  	
  Number 

  of the 

  land

  	
   

  	
  Leased area

  (m3)

  	
   

  	
  (New 

  Taiwan Dollars)

  	
   

  	
  (New

  Taiwan

  dollars)

  	
   

  	
  (New 

  Taiwan

  dollars)

  	
   

  	
  Remarks

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AL081

  	
   

  	
  Nanzi District

  	
   

  	
  Heping section

  	
   

  	
  The second subsection

  	
   

  	
  711

  	
   

  	
  795

  	
   

  	
  11.5

  	
   

  	
  9,143

  	
   

  	
  0

  	
   

  	
  Approved for lease the land hereunder by
  the letter of Jingjiachu erjianzi No. 09301019020 on June 24, 2004
  with an area as listed in this table. The land is the apportioned base area
  for purchasing standard factory building. 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  795

  	
   

  	
  11.5

  	
   

  	
  9,143

  	
   

  	
  0

  	
   

  	
   

  

 

 

2.                                       The
lease term is from July 8, 2004 to July 7, 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
and the offices of the branches established by responsible organ of the
enterprise within the zone.

 

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

 

5.                                       If the lessee
applies for leasing land for constructing factory buildings or other buildings
by itself, the following land shall be reserved as setback land: three meters
between and behind adjoining lands leased by other persons; six meters facing a
side of main road, five meters facing a side of inner ring and branch road, and
four meters facing a side of sub-branch road. The lessee shall clean up and
green the setback land at its own expense.

 

6.                                       If the lessee
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, the administrative department will
administer the land as a whole, and the lessee shall not claim that the land
shall be used for building or other purpose.

 

8.                                       The lessee
agrees to automatically pay the treasury agency as designated by the lessor the
rent and expenses 9,143 New Taiwan Dollars as set forth in Article 1
hereof before the fifth day of each month. If the lessee 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 the lessee fails to
pay off the rent, expenses and liquidated damages after four months from the
payment day, the lessor may recover the rent, expenses and liquidated damages
and immediately terminate the contract.

 

9.                                       Besides paying
the rent monthly, the lessee shall pay the public facility construction
expenses as provided for in Article 11 of Manufacturing
and Export Zone Setup and Administration Ordinance at ...New Taiwan
Dollars per square meter per month based on the area of the leased land for up
to twenty years for each plot. The twenty years period of the public facility
constructions expenses set forth in this contract will expire
on          (date).

 

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 the lessee leases
the land for constructing factory buildings or other buildings by itself, it
shall commence the construction within three months from the execution of the
contract and complete the construction according to the plan. If the lessee
fails to commence the construction within the stipulated period or through the
lessee 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, the lessor may terminate the contract and
withdraw the land, and the rent and public facility construction expenses already
paid will not be refunded. If there are uncompleted buildings on the land, the
lessor can dispose them according to law or require the lessee to remove them
and restitute the original state, and the lessee shall not raise any objection
or resist.

 

12.                                 If the lessee must
excavate roads within the zone, water supply (drainage) pipeline or other
public facilities for constructing factory buildings or other buildings, it
shall apply to the lessor for approval and pay the deposit in advance and shall
restitute the original state after the completion of the construction. The
deposit will be refunded without interest after restituting the original state;
otherwise, the deposit will not be refunded.

 

13.                                 The
lessor may terminate the contract by notifying the lessee under any of the
following circumstances.

 

13.1                           The
use of the land by the lessee breaches the provisions of this contract.

 

13.2                           The buildings owned by the
lessee are purchased or requisitioned for value according to Article 12 of
Manufacturing and Export Zone Setup and
Administration Ordinance.

 

13.3                           Accumulated rend and
expenses defaulted by the lessee reaches the total amount of the rent and
expenses for four months.

 

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

 

13.5                           The
investment scheme is withdrawn or is withdrawn after approved.

 

14.                                 If the contract is
terminated according to the foregoing Article, the lessee 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 the lessee fails to conduct such
treatment or fails to complete such treatment within two years, the lessor may
dispose of or purchase all the equipments, materials in or out of all the
lessee’s buildings on the land according to law.

 

15.                                 If the lessee needs
reletting the land upon expiration of the lease term, it shall apply to
reletting in writing three months prior to the expiration of the lease term. If
the lessee does not apply for reletting upon expiration of the foregoing three

 

 

months period, it shall return the land upon expiration of the lease
term. The lessee 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. If the lessee fails to
conduct such treatment or fails to complete such treatment within six months,
the lessee shall be deemed breached the contract, and the lessor may dispose of
or purchase all the lessee’s buildings and all the equipments, materials in or
out of such buildings on the land according to law.

 

16.                                 Upon termination of
this contract, impairment money will be charged monthly according to the
standard of long-term land rent for the period during which the land is
occupied by the original lessee. In the event of overdue payment, additional
interest will be charged at the annual interest rate 5% till the payment day.

 

17.                                 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.

 

18.                                 This contract is made
in duplicate and will take effect as of the date signed by the Parties. Each
Party holds one copy. In the event of any litigation arising from this
contract, the competent court shall be designated by the lessor.

 

19.                                 The
place and area drawing of the land hereunder is as set forth in the Annex.

 

The Parties to this Contract:

The Contractor (Lessee): Philips Electronic Building Elements Industries
(Taiwan) Ltd.

Representative or Legal Representative: Zhuang Junyuan

 

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

Number of the Business License: 89002500

 

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

Ministry of Economy

Legal Representative: Pan Dingbai

Address: 600 Jiachang Road, Nanzi district, Kaohsiung City

 

July 8, 2004

 

 

Annexed Drawing (93) Nanerjianzi No. 22

 

 

Heping section, Nanzi District, Kaohsiung City

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