Document:

Exhibit 10.19

 

(89)Nanerjianzi No. 014

 

Manufacturing and Export Zone Administrative Department,

 

Ministry of Economy     Nanzi Manufacturing and Export Zone

 

Land Lease Contract

 

Philips
Electronic Building Elements Industries (Taiwan) Ltd (the “Lessee”) hereby
leases four 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/m2

  	
   

  	
  Rent

  payable

  per

  month

  	
   

  	
  Public

  facilities

  construction

  expense

  payable per

  	
   

  	
   

  
	
  Number of

  the

  property

  	
   

  	
  Zone

  	
   

  	
  Section

  	
   

  	
  Subsection

  	
   

  	
  Number

  of the

  land

  	
   

  	
  Category

  of this

  zone

  	
   

  	
  Leased

  area

  (m2)

  	
   

  	
  (New

  Taiwan

  Dollars)

  	
   

  	
  (New

  Taiwan

  dollars)

  	
   

  	
  month (New

  Taiwan

  dollars)

  	
   

  	
  Remarks

  
	
  CL102

  	
   

  	
  Nanzi
  

  	
   

  	
  Heping
  

  	
   

  	
   

  	
   

  	
  703

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Approved
  for lease by the letter of Jingjiachu (89) erjianzi No. on May 22, 2000 

  
	
   

  	
   

  	
  District

  	
   

  	
  Section

  	
   

  	
   

  	
   

  	
  704

  	
   

  	
   

  	
   

  	
  2853

  	
   

  	
  11.50

  	
   

  	
  32809

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  705

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  706

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2853

  	
   

  	
  11.50

  	
   

  	
  32809

  	
   

  	
  0

  	
   

  	
   

  

 

2.        The lease term is from May 16, 2000 to May
15, 2010.

 

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. The floor
area shall not be less than 50% and shall not be more than 70% of the area of
the leased base. The following principles shall be observed:

 

6.1      The
setback land around the base will be used for fire prevention, light,
transportation, beautifying environment and so on, and shall not be used for
building.

 

6.2      20% of
the net area of the base after deducting the setback land shall be reserved as
vacant land.

 

7.        The lessee shall automatically pay the
treasury agency as designated by the lessor the rent and expenses 132,820 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:

 

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

 

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

 

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

 

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.

 

8.        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.

 

9.        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 the
lessee shall not raise any objection or resist.

 

 

10.      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 paid by the lessee will be refunded without interest after
restituting the original state; otherwise, the deposit will not be refunded.

 

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

 

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

 

11.2    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.

 

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

 

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

 

12.      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 and shall pay
the land rent for such period according Article 7 hereof. 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 and have no
objection.

 

13.      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 and shall pay
the land rent for such period according Article 7 hereof. 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.

 

14.      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.

 

 

The Parties to the Contract:

 

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

Representative or Legal Representative: Ze Wenbo

 

 

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

Number
of the Business License: Jingjiachuxinzi No. 3407

 

 

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

Ministry
of Economy

Legal
Representative: Pan Dingbai

Address:
600 Jiachang Road, Nanzi District, Kaohsiung City

 

June
10, 2000

 

 

Land
location and area drawing

 

 

Heping
section, Nanzi District, Kaohsiung CityExhibit 10.20

 

(87)Nandizi No. 034

 

Manufacturing and Export Zone Administrative
Department,

Ministry of Economy   Nanzi Manufacturing and Export Zone

Land Lease Contract

 

Philips 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, Area and Rent of the Land

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Public

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  facilities

  	
   

  	
  Number

  	
   

  	
   

  
	
   

  	
   

  	
  Place of the land

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  construction

  	
   

  	
  of the

  	
   

  	
   

  
	
  Number

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Number

  	
   

  	
  Leased

  	
   

  	
  Monthly

  	
   

  	
  Rent payable

  	
   

  	
  expense

  	
   

  	
  letter

  	
   

  	
   

  
	
  of the

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  of the

  	
   

  	
  area

  	
   

  	
  rent/m2

  	
   

  	
  per

  	
   

  	
  payable per

  	
   

  	
  approving

  	
   

  	
   

  
	
  property

  	
   

  	
  Zone

  	
   

  	
  Section

  	
   

  	
  Subsection

  	
   

  	
  land

  	
   

  	
  (m2)

  	
   

  	
  (Dollars)

  	
   

  	
  month (dollars)

  	
   

  	
  month (dollars)

  	
   

  	
  the lease

  	
   

  	
  Remarks

  
	
  CL012

  	
   

  	
  Nanzi District

  	
   

  	
  Peace section

  	
   

  	
  The second subsection

  	
   

  	
  701

  	
   

  	
  3265

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Jingjiachu dizi No. 057884 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  The second subsection

  	
   

  	
  702

  	
   

  	
  3681

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  August

  19, 1998

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  The second subsection

  	
   

  	
  703

  	
   

  	
  3430

  	
   

  	
  11.50

  	
   

  	
  204309

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  The second subsection

  	
   

  	
  704

  	
   

  	
  1127

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  The second subsection

  	
   

  	
  705

  	
   

  	
  2660

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  The second subsection

  	
   

  	
  706

  	
   

  	
  3603

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  17,766

  	
   

  	
  11.50

  	
   

  	
  204309

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  

 

 

2.        The lease term is totally ten years from
October 1, 1998 to September 30, 2008.

 

3.        The land leased hereunder will be only used by
approved enterprise within the zone for constructing factory buildings,
warehouses or the ground for the transportation, handling, packing, repair and
other operation of the enterprise as well as the offices of the branches
established by responsible organ of the enterprise within the zone. In the
event the enterprise within the zone leases the base of the factory due to
purchasing the standard factory buildings within the zone, the area of the
leased base shall be land area that shall be leased as apportioned according to
the area of its factory buildings.

 

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 whole
or any part of land to other persons.

 

5.        The lessee shall automatically pay the treasure
agency as designated by the lessor the rent 204,309 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:

 

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

 

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

 

5.3      If the delay is more than three months but less
than four months, 15% of the amount of the rent a will be additionally charged.

 

5.4      If the lessee fails to pay off the rent and
liquidated damages after four months from the payment day, the lessor may
recover the rent and liquidated damages and immediately terminate the contract.

 

6.        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.

 

7.        Besides paying the rent month, 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 ten years
for each plot.

 

8.        If the lessee leases the land for constructing
factory 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 at its

 

 

discretion or require the lessee to remove
them, and the lessee shall not raise any objection or resist.

 

9.        If the lessee must excavate roads within the
zone, water supply (drainage) pipeline or other public facilities for
constructing factory buildings or other accessory 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. If the lessee fails to
restitute the original state, the lessor may forfeit the deposit paid by the
lessee.

 

10.      The lessor may terminate the contract at any time
by notifying the lessee under any of the following circumstances.

 

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

 

10.2    Accumulated rent defaulted by the lessee reaches
the total amount of the rent for four months.

 

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

 

11.      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 within six months and shall
pay the land rent for such period according to Article 5 hereof. 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
freely dispose of all of lessee’s buildings and all the equipments in such
buildings on the leased land and have no objection.

 

12.      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.

 

The Parties to this Contract:

 

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

 

Representative or Legal Representative:

 

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

 

Number of the Business License: Jingjiachuxinzi No. 3298

 

 

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

 

Legal Representative: Pan Dingbai

 

Address: 600 Jiachang Road, Nanzi District, Kaohsiung City

 

October 12, 1998

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