Document:

Exhibit 10.13

 

 

Suzhou High & New
Technology Innovation Service Center

 

Property Management and
Tenancy Agreement

 

Tenancy Agreement

 

Party A: Suzhou High
& New Technology Innovation Service Center

 

	
  Legal Address: No. 209
  Zhuyuan Road, Hi-Tech Zone, Suzhou

  	
   

  	
  Phone:

  
	
   

  	
   

  	
   

  
	
  Legal Representative:
  Huang Zhen

  	
   

  	
  Fax:

  

 

 

Party B: Philips
Semiconductors (Shanghai) Co., Ltd.

 

	
  Legal Address: Rooms
  2907-2910, Tower 1, Kerry Everbright City,

  	
   

  	
  Phone:

  
	
  218 Tianmu West Road,
  Zhabei District, Shanghai

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Legal Representative:
  He Jian Gang

  	
   

  	
  Fax:

  

 

 

This Tenancy Agreement is
made and entered into by and between Party A and Party B, through friendly
negotiations, concerning Party A leasing its premises to Party B and providing
services relating thereto under the terms and conditions below:

 

 

I.       Leased objective

 

The position and area of
the Premises leased to Party B are detailed in Forms 1 and 2.

 

 

II.     Tenancy term

 

The tenancy term of this
Agreement shall commence on October 1, 2006 and expire on November 30, 2008.
Upon the expiry of the tenancy term, Party B shall return all the properties
received from Party A in good condition.

 

 

III.    Fees

 

1.      Calculation of rental

 

Form 4:

 

	
  Item/Time

  	
   

  	
  The
  first year

  From Oct 1, 2006 to

  Nov 30, 2006

  	
   

  	
  The
  second year

  From Dec 1, 2006 to

  Nov 30, 2007

  	
   

  	
  The
  third year

  From Dec 1, 2007 to

  Nov 30, 2008

  	
   

  
	
  Address or
  building

  number

  	
   

  	
  No.209 Zhuyuan Road

  	
   

  	
  No.209 Zhuyuan Road

  	
   

  	
  No.209 Zhuyuan Road

  	
   

  
	
  Room number and

  area

  	
   

  	
  C4040-C4041-388 M2

  	
   

  	
  C4040-C4041-388 M2

  	
   

  	
  C4040-C4041-388 M2

  	
   

  
	
  Rental (RMB

  YUAN/month/m2)

  	
   

  	
  9.6

  	
   

  	
  10.4

  	
   

  	
  11

  	
   

  
	
  Quarterly rental

  (RMB YUAN/quarter)

  	
   

  	
  11174.4

  	
   

  	
  12105.6

  	
   

  	
  12804

  	
   

  
	
  Annual rental

  (RMB YUAN/year)

  	
   

  	
  44697.6

  	
   

  	
  48422.4

  	
   

  	
  51216

  	
   

  

 

1

 

2.      Method and time of payment

 

(1)             Within 7 days from the date of the
signature of this Agreement, Party B shall pay the deposit in an amount of RMB
YUAN11174.4. Upon the expiry of this Agreement, Party A shall refund to Party B
all the amount of the deposit within 7 days after Party B has completed the
relevant formalities stipulated in Party A’s management system, provided that
Party B is not in breach of this Agreement.

 

(2)             Party B shall pay one-quarter’s rental on
the date of the signature of this Agreement, and pay the quarter’s fees
specified in From 2 hereunder in the first week (subject to postponement for
another week in case of statutory holidays) of the first month of the current
quarter after it moves in the Premises. In the case of any delay in the
payment, Party B shall pay a penalty specified in Article 3 hereunder.

 

 

IV.            Lease priority and renewal priority

 

1.                  During the tenancy term, Party B shall
have the lease priority for the office premises located in C Area, 4/F, Suzhou
High & New Technology Innovation Service Center.

 

2.                  Upon the expiry of the tenancy term,
Party B shall have the priority for two-year lease renewal, the rental of which
shall refer to the current market price and be determined by through
negotiations between the parties hereto. However, the range of increase Or decrease
of such rental may not exceed 20% of the rental hereunder.

 

 

V.                Party A’s obligations

 

1.                  Party A shall promptly deliver the
Premises to Party B according to the time and standards specified herein.

 

2.                  Party A shall be responsible for
maintenance of the Premises and guarantee the normal use of the Premises,
except for the damage due to Party B’s fault.

 

 

VI.            Party B’s obligations

 

1.                  Party B shall reasonably use and protect
Party A’s properties and maintain the integral structure of the Premises, and may
not dismantle or alter the structure of the Premises without permission. If
Party B desires to make a partition or decoration for the Premises, it must
submit to Party A an application and a construction drawing. After Party B
obtains the consent of Party A, Party A shall be responsible for arranging the
construction at Party B’s cost. Party B shall pay Party A the relevant fees in
advance.

 

After obtaining the
written consent of Party A, Party B may, at its own discretion, entrust a
construction organization to make construction. However, Party B shall submit a
written construction plan (including the commencement and end dates, contents
of the construction, etc.) to Party A seven days prior to the construction.
Without the written consent of Party A, Party B may not start the construction.
Upon the end of the construction, the parties hereto shall make joint
inspection and acceptance. Party B shall require the construction organization
entrusted by it to observe the relevant rules and regulations of Party A and
not to affect the normal work and production of other relevant enterprises when
such organization is

 

2

 

constructing.

 

2.                  If Party B desires to put forward
requirements concerning advertisements, road signs, office signs, etc. in Party
A’s park, Party B shall, under the preconditions that the whole image and
structure of the Premises are not damaged, submit an application to Party A.
After obtaining the consent of Party A, Party A will be responsible for united
planning and construction at Party B’s cost.

 

3.                  Party B may not alter all the
distribution equipment, central air conditioners and various kinds of ancillary
facilities to the Premises without permission. Party B shall be responsible for
repair or compensation for any damage of such facilities due to its fault and
for compensation for all losses incurred to Party A or third party resulting
therefrom.

 

4.                  Party B may not place any combustible or
explosive or other dangerous articles in the Premises. If Party B has any
special requirement, it shall submit a written application to Party A and may
place such articles only after Party A gives its consent and determines the
particular placement place and responsible person. Party B shall guarantee that
Party A may at any time make spot-checks under the preconditions that Party A
doesn’t affect Party B’s work.

 

5.                  Observing the design of bearing capacity
of the Premises

 

(1)             Party B shall observe the design of
bearing capacity of the building specified in Attachment
        . Party B may neither use nor
load the wall, ceiling or architecture of the building lest the architecture,
loading framework, roof, base, joist and external wall should be distorted or
damaged.

 

(2)             Party B shall add appropriate building
base to the facilities in the Premises, if necessary. However, Party B shall
bear all fees relating thereto and obtain the prior written consent of Party A
and relevant organs.

 

(3)             Party B may neither use any partition
between the Premises and other units to support any loading or object, nor
cause or permit any behavior or other similar behavior that may damage such
partition.

 

6.                  Permitting Party A to enter the Premises
for examination

 

(1)             Party B shall permit Party A and person
authorized by Party A to enter the Premises under the preconditions that Party
A doesn’t affect Party B’s work and gives 3 working days prior notice to Party
B:

 

a.                       To provide property management services;

 

b.                      To check and examine the situation and
conditions of the Premises, and devices or buildings of Party A;

 

c.                       To implement any such repair or work for
the Premises as Party A considers proper;

 

d.                      To establish that Party B has abided by
and performed its obligations by means of taking photo (except in work region
subject to Party B’s confidentiality requirement) or by other method.

 

(2)             In order to facilitate the implementation
of Article 6.1 hereunder, Party B shall, according to reasonable requirements
of Party A, remove any device and article in the Premises.

 

(3)             As for the constructions or repairs
within Party B’s responsibility scope hereunder, Party A

 

3

 

shall, if necessary, give
21 days’ prior written notice to Party B to list in detail such constructions
or repairs and to require Party B to carefully complete the same.

 

(4)             If it is necessary to employ an external
professional organization to make evaluation and/or provide professional
services for any damage of the Premises, Party A shall give a prior notice to
Party B. If such organization determines such damage is caused by Party B’s
behavior, Party B shall pay reasonable fees and evaluation fee of such
organization.

 

(5)             Subject to Articles 6.3 and 6.4
hereunder, Party B shall actively implement such work or repair within the
notified period upon receiving the written notice. If Party B cannot implement
the same, Party B shall permit Party A to implement such work or repair (but
Party A has no obligation to do so). The fees incurred thus shall act as the
amount payable by Party B to Party A and shall be repaid to Party A
immediately.

 

(6)             If Party A considers that there is an
emergent or dangerous circumstance, it shall have right to enter the Premises
and take measures by such method as it considers proper, provided that Party A
will not hinder Party B’s normal office or damage Party B’s lawful benefits.

 

7.                  Permitting the examination

 

Within 3 months prior to
termination or expiry hereof, Party B shall permit Party A or person authorized
by Party A to bring a new intended tenant into the Premises for examination in
normal office hours, provided that Party A gives a prior written notice to
Party B and will not affect Party B’s work.

 

8.                  Return of the Premises in original
situation

 

(1)             Upon the termination or expiry hereof
(whichever is earlier), Party B shall restore the Premises and all devices of
Party A to the situation on the date when Party A delivers the Premises to
Party B (except for normal wear and tear and damage of the Premises due to
force majeure).

 

(2)             Notwithstanding the provisions of Clause
1 above, Party A has right, without any cost, to dispose of all facilities left
by Party B inside and outside the Premises with the consent of Party A.

 

(3)             If Party B fails to return the Premises
according to Clause 1 above, Party A has right to require Party B to restore
the Premises to the original situation within the specified period; if Party B
fails to restore the Premises to the original situation within such specified
period, Party A has right to entrust third party to complete such restoration
work and the reasonable fee incurred thus and the management fee (amounting to
15% of such reasonable fee) shall be assumed by Party B.

 

(4)             If Party B is in breach of the provisions
of Clause 1 above, Party A has right to require Party B to pay the rental,
property management fee or other fees payable from the date of termination or
expiry hereof (whichever is earlier) to the date of completion of all the
restoration work.

 

(5)             Subject to Clause 3 above, Party A has
right to deduct the fee of restoration work from the deposit. If the deposit is
not enough, Party A will give a written notice to Party B of the amount payable
by Party B to Party A. Party B shall pay such amount prior to the expiry of
such notified period.

 

9.                  Party B and its employees shall strictly
observe the management system of Party A.

 

4

 

10.            Party A has right to terminate this
Agreement immediately without giving prior written notice to Party B, in the case
of any of the following circumstances during the tenancy term:

 

a)                      Party B fails to use the Premises
according to the purpose agreed herein;

 

b)                     Party B subleases, assigns or sublets the
Premises without permission;

 

c)                      Party B uses the Premises for conducting
illegal activities;

 

d)                     Party B impairs social morality and Party
A’s reputation in the process of Party B’s business;

 

e)                      Party B violates the management system
stipulated by Party A;

 

f)                        Party B delays the payment for
            days;

 

g)                     There is any accident in the Premises due
to Party B’s fault;

 

h)                     Party B is in breach of other obligations
hereunder and fails to remedy the same within 5 working days after receiving
the written notice from Party A.

 

11.            Party B shall keep the Premises and the
outside thereof clear, be responsible for maintaining the environmental health
of Suzhou High & New Technology Innovation Service Center jointly with
Party A, and be responsible for general sanitation, green covering and keeping
good social order in a designated area outside the Premises.

 

VII.        Liability for breach

 

1.                  From the signature hereof, either party
may give six months’ prior notice to the other party to terminate this
Agreement, except for force majeure.

 

2.                  In the case of any delay in payment, Party
B shall pay the penalty to Party A according to the following formula: 1% of
the amount payable for the first 7 days and 1% of the amount payable for each
subsequent 7-day period.

 

VIII.    [ILLEGIBLE]
Force majeure

 

1.                  During the tenancy term, if Party B
cannot enter the Premises or the Premises is not suitable for use by Party B
arising from damage of the Premises or any part thereof due to force majeure
but not due to negligence of either party, the implementation of this Agreement
shall be suspended immediately. Neither party shall be responsible for damage
due to force majeure.

 

2.                  During the period of such suspension:

 

(1)             Party A has right to restore the Premises
to the situation on the date when Party A delivers the Premises to Party B; and

 

(2)             The parties hereto shall make efforts to
reach a friendly resolution.

 

3.                  If either party cannot perform, or delays
to perform, all or part of its obligations hereunder due to force majeure, the
period of performance of this Agreement or any term hereof shall be postponed
correspondingly.

 

4.                  If either party is affected by force
majeure event, it shall give a notice to the other party as soon as possible
after the occurrence of such event and provide, as soon as possible, the other

 

5

 

party with the documents
fully stating the reason, nature and severity scale of such event.

 

5.                  In the case of force majeure, the parties
hereto shall make efforts to reduce the influence of such event on the
performance hereof to the minimum.

 

 

IX.           Miscellaneous provisions

 

1.                  Because the rental and the rate of
property management fee hereunder are formulated by Party A, the taxes or other
problems and legal responsibilities resulting thus shall be assumed by Party A.

 

2.                  Notices

 

The written notices
hereunder shall be delivered personally or sent by registered mail or fax.

 

The written notices sent
from the sender to the receiver according to the contact method specified
hereunder shall be regarded as having been received by the receiver:

 

(1)             If a notice is delivered personally or
sent by registered mail, it shall be regarded as having been received by the
receiver immediately; if a notice is sent by fax, the fax report will display
the receiver’s number and transmission time.

 

The transmission notice
shall be subject to the address or fax number stated on the first page hereof
or another address or fax number notified by the receiver hereunder to the
other party.

 

3.                  This Agreement shall supersede all prior
agreements or oral promises during the negotiations between the parties hereto.
Any matter not provided for herein shall otherwise be negotiated between the
parties hereto.

 

4.                  If Party B has other special requirements
outside the scope hereunder, Party B shall submit a supplementary agreement.
Upon the signature by the parties hereto, such supplementary agreement shall be
regarded as having the same effect as this Agreement.

 

5.                  Any dispute arising from performance
hereof, the parties hereto shall resolve such dispute through negotiation; if
no agreement is reached, the parties hereto may submit such dispute to the
court where the performance place hereof is located.

 

6.                  This Agreement shall come into effect
from the signature by the parties hereto.

 

7.                  This Agreement is made in three
counterparts, one of which Party A holds and two of which Party B holds.

 

 

Party
A: Suzhou High & New Technology Innovation Service Center

 

Signature
of Representative:

 

Sep.
20, 2006

 

 

Party
B: Philips Semiconductors (Shanghai) Co., Ltd.

 

Signature
of Representative:

6Exhibit
10.14

 

Appendix
8 of Joint Venture Contract

 

 

Factory Premises Tenancy
Agreement

 

 

Between

 

 

Jilin
Sino-Microelectronics Co., Ltd.

 

 

and

 

 

Jilin Philips
Semiconductor Co., Ltd.

 

 

 

 

 

 

 

Date: Nov. 25, 2003

 

 

 

 

 

 

 

Page 1 of 11

 

Appendix 8 of Joint
Venture Contract

Landlord (Party A): Jilin Sino-Microelectronics Co., Ltd.

Legal Address: No. 99 Shenzhen Street, Jilin City, Jilin Province,
China

Legal Representative: Xia Zengwen

 

Tenant (Party B): Jilin Philips Semiconductor Co., Ltd.

Legal Address: No. 99 Shenzhen Street, Jilin City, Jilin Province,
China

Legal Representative: Tony Lear

 

This Tenancy Agreement (hereinafter referred to as the “Agreement”) is
made and entered into by and between Party A and Party B, through friendly
negotiations, concerning the lease of the factory premises and the ancillary
facilities thereto that not invested by Party A to Party B (hereinafter
referred to as the “Premises”).

 

Article 1 Standard, location and area of the Premises

1.1.                              Party A shall be responsible for drawing
design and construction of the Premises according to the Construction
Requirements specified in Appendix 1 hereto. The Plane Layout Design Drawing is
specified in Appendix 2 hereto. During the course of construction, Party A
shall observe the provisions of the relevant state laws and regulations. Upon
the Final Acceptance (defined below), Party A shall lease the Premises to Party
B. The total floor area of the Premises is about 12,900 square meters, which
shall be subject to the measurement result issued by the survey organization
approved by the government.

1.2                                 The Premises is on the Plot located at
No. 99 Shenzhen Street, Jilin City, Jilin Province, China, as specified in
Appendix 3 hereto. The area of the Plot is 12,545 square meters.

 

Article 2 Inspection and acceptance of the
Premises

After the Premises passes the inspection and
acceptance by the relevant department (including but not limited to the quality
and fireproofing inspection and acceptance of the Premises), Party A obtains
the document issued by the relevant governmental authority which may prove that
Party A is the owner of land use right of the Plot and the owner of the
Premises and has right to lease the Premises and the Plot to Party B during the
Term specified in Article 4.1 herein, the parties hereto shall respectively
appoint a person to form an inspection and acceptance team to check whether the
Premises ands the Plot conform to the Construction Requirements (hereinafter
referred to as the “Inspection and Acceptance”). Upon the Inspection and
Acceptance are passed, the parties hereto shall sign the “Final Acceptance
Certificate” in duplicate and hold one original thereof (hereinafter referred
to as the “Final Acceptance”). In the case of any defect, Party A shall, at its
cost, promptly make necessary repair, modification and adjustment for the Plot
and/or the Premises until the Plot and/or the Premises conform to the
conditions specified in the Construction Requirements. Upon completion of such
matters, Party A shall provide the Plot and the Premises to Party B according
to the particular circumstances and make the Inspection and Acceptance again
and sign the Final Acceptance Certificate.

 

Article 3 Purpose of the Premises

The Premises shall be used only for
industrial and office purpose. Party B may not use the

 

Page
2 of 11

 

Appendix
8 of Joint Venture Contract

Premises for any purpose without the written
consent of Party A. Party B shall at its cost complete all the formalities
necessary for change of such purpose according to the relevant governmental
regulations.

 

Article 4 Tenancy and term

4.1                                 Party A and
Party B agree that, Party A will lease to Party B, and Party B will lease from
Party A, the Premises and the Plot in acceptance with the provisions hereof
(hereinafter referred to as the “Tenancy”). The Tenancy term for the Premises
and the Plot (hereinafter referred to as the “Term”) shall commence from the
date of signature of the Final Acceptance Certificate (hereinafter referred to
as the “Tenancy Commencement Date”) and end on the date of early termination or
expiry of the joint venture contract entered into by Philips Electronics
(China) Company Limited and Party A concerning the establishment of Party B
(each natural year has 365 days).

4.2                                 During the
Term, Party B may give three months’ prior written notice to Party A to
terminate this Agreement. Upon the termination hereof, Party B shall return the
Premises to Party A and indemnify the direct losses and damages incurred to Party
A arising from delayed return due to Party B’s fault. Upon the expiry hereof,
Party B shall return the Premises whose situation shall conform to the provisions
specified in the Final Acceptance Certificate (or any amendment permitted by
Party A), except for normal wear and tear. Party B shall at its cost make
necessary repair, modification and adjustment for the Plot and/or the Premises
until they conform to the specified conditions upon the return thereof.

 

Article 5 Payment of rental

5.1                                 The annual
rental of the Premises and the Plot shall be 10% of the appraised amount of the
Premises and the Plot, amounting to RMB YUAN ________, five years from the
Tenancy Commencement Date. The annual rental of the Premises and the Plot shall
be 12% of the appraised amount of the Premises and the Plot, amounting to RMB
YUAN ________, from the sixth years from the Tenancy Commencement Date to the
termination hereof. The parties hereto agree that the appraised amount of the
Premises and the Plot shall be the final appraisal value thereof issued by
Zhonghe Assets Appraisal Co., Ltd. The final appraisal report for the Premises
and the Plot issued by such company shall form Appendix A hereto.

5.2                                 Party B shall
pay the rental to Party A from the Tenancy Commencement Date and pay off on or
before the 15th day of each month according to the invoice received
by it. If Party B delays in payment, it shall pay a penalty amounting to two
point five in ten thousand per day according to the delayed amount and period.

5.3                                 If the date due
and payable is Saturday, Sunday or Chinese statutory holiday, such date shall
be postponed to the first working day following such Saturday, Sunday or
Chinese statutory holiday.

5.4                                 The monthly
rental shall be permitted by Party B to the following account appointed by
Party A or paid by other method agreed in writing by the parties hereto.

	
   

  	
   

  	
  Party
  A’s bank account:

  	
   

  	
  Jilin
  Industrial & Commercial Bank Hi-tech

  
	
   

  	
   

  	
   

  	
   

  	
  Industrial
  Development Zone Branch

  
	
   

  	
   

  	
  Account
  number:

  	
   

  	
  0802212409000042560

  

 

Page
3 of 11

 

Appendix
8 of Joint Venture Contract

Article 6 Deposit

6.1                                 Party B shall
pay the amount equal to the three months’ rental as Deposit upon paying the
first rental.

6.2                                 Upon the expiry
of 12 months after the expiry of the Term, the Deposit shall set off three
months’ rental payable by Party B to Party B upon the expiry of such 12 months.

 

Article 7 Party B’s obligations

7.1                                 Party B shall
keep the Premises in good condition, and may neither alter the structure of he
Premises nor make large-scale reconstruction and decoration without the prior
written consent of Party A.

7.2                                 Party B shall
pay the rental hereunder on time.

7.3                                 Party B shall
assume the risks and expenses of its assets located on the Plot and purchase
insurance for such assets. Party B shall be responsible for proper use and maintenance
for the Premises and promptly discuss the resolution program with Party A
concerning the potential failures and dangers.

7.4                                 In the case of
any damage of the Premises arising from Party B’s improper use thereof, Party B
shall, at its cost, be responsible for maintenance thereof to restore the
Premises to good condition.

7.5                                 In the case of
any third party’s damage arising from Party B’s improper use thereof, Party B
shall assume the compensation responsibilities relating thereto.

7.6                                 Party B shall
abide by all the provisions concerning the environments in the Chinese current
laws, perform the relevant terms and conditions of services agreements entered
into by the parties hereto, dispose of chemical waste and other environmental
pollutions arising from the production process, and assume all the responsibilities
arising from breach of such provisions and terms and conditions.

7.7                                 Party B may
give a written notice to Party A to sublease the office part of the Premises to
third party. However, Party B shall be responsible for management for such
subleased part, including collecting the rental from the sub-lessee, etc. The
rights and obligations of the parties hereunder may not be changed due to such
sublease. In addition, Party B shall abide by the following provisions:

(1)                                  The term of the
sublease may not exceed the Term hereunder;

(2)                                  The subleased
part may be used for office purpose;

(3)                                  If Party B
terminates this Agreement prior to the expiry hereof according to Article 4.2
hereof, the sublease agreement between Party B and the sub-lessee shall be
terminated at the same time;

(4)                                  Party B shall
be responsible for settling all the disputes arising from the sublease; and

(5)                                  Party B shall
be responsible for the taxes and fees arising from the sublease.

 

Article 8 Party A’s obligations

8.1                                 Party A shall
be responsible for any ownership claim made by any third party against the Premises
due to Party A’s reason during the Term hereof. Party B’s use right may not be
affected thereby, or else Party A shall indemnify the losses incurred to Party
B resulting therefrom.

8.2                                 Party A shall,
at its cost, be responsible for purchase property insurance and public liability

 

Page
4 of 11

 

Appendix
8 of Joint Venture Contract

                                                insurance for
the Plot and the Premises. In the case of the insurance accident, the insurance
compensation acquired by Party A resulting therefrom shall be paid for the
repair fees. Party A shall assume the risk of inadequate insurance compensation.
Party A shall provide Party B with the reduplicate of the current year
insurance policy in the third quarter of each year.

8.3                                 Party A shall,
at its cost, be responsible for repair and maintenance of the Premises
according the relevant regulations during the Term hereof. Party A has rights
to examine the use and maintenance situation of the Premises at such time as it
considers proper, and Party B shall provide convenience for Party A’s examination.

8.4                                 Party A hereby
agrees that, Party B may give a written notice to Party A to sublease the
office part of the Premises to third party. Party A shall provide assistance
and support for the sublease formalities.

8.5                                 During the Term
hereof, Party A may not sell or assign the Premises wholly or partially to
third party that has the similar business as Party B.

8.6                                 Party A
undertakes that, it will terminate this Agreement only if Party B is in material
breach hereof, including failure to pay the rental hereunder for more than 3
months without any reasonable reasons.

 

Article 9 Representations and warranties:

Party A represents and warrants that:

9.1                                 It has acquired
the approval for lease of the Premises and the Plot from the relevant
department.

9.2                                 It permits
Party B to use the Premises and the Plot for industrial and office purpose
within Party B’s business scope;

9.3                                 It has acquired
the approval for the construction from the relevant Chinese authority which
conforms to all the Chinese applicable laws and regulations concerning safety
and environmental protection.

9.4                                 Party B shall
assume no liability for the land and groundwater pollutions arising prior to
the Final Acceptance. The parties hereto shall employ the qualified environmental
test organization to test the land and groundwater and to issue the report
relating thereto arising prior to the Final Acceptance.

If Party A fails to perform such
representations and warranties, it shall indemnify all the losses, damages,
fees and expenses incurred to Party B resulting therefrom.

 

Article 10 Force majeure

Neither party shall be liable for delay in
performance or default hereunder or damage or loss due to any unpredictable
factor beyond unreasonable control, including act of god, prohibited use of the
Premises and the Plot by the government, war, riot, fire and flood. If a party
hereto delays in performance hereunder or is in breach hereof for more than two
months due to force majeure, either party may give 60 days’ prior written
notice to the other party to terminate this Agreement. 

 

Article 11 Taxes and levy

Party A shall pay all the taxes of the
Premises and the Plot during the Term (including but not limited to business
tax, land use tax, real estate tax and income tax). The parties hereto shall
pay the stamp duty according to law.

 

Page
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Appendix
8 of Joint Venture Contract

Article 12 Applicable law and dispute
resolution

This Agreement shall be governed by and
interpreted in accordance with the laws of the People’s Republic of China. The
parties hereto shall make efforts to resolve all the disputes arising out of or
relating to this Agreement through friendly negotiations. If the parties hereto
fail to resolve any such dispute within 60 days, such dispute shall be
submitted for arbitration.

(a)                                  Any dispute or
claim arising out of or relating to this Agreement, including the existence,
validity or termination of any relevant agreement, shall be finally settled by
arbitration in Hong Kong International Arbitration Centre in accordance with
the Mediation and Arbitration Rules the International Chamber of Commerce (“Rules”)
(hereinafter referred to as the “Arbitration”).

(b)                                 The arbitrator
shall be appointed in accordance with the Rules. The language of the
Arbitration shall be English.

(c)                                  The Arbitration
award shall be final and binding upon the parties. The Arbitration award may be
enforced as a judgment in any court having jurisdiction. Therefore, the parties
shall hereby confirm that they will perform the Arbitration award as an obligation
hereunder and expressly agree to immediately enforce the Arbitration award
without delay.

(d)                                 The arbitrator
will decide that a party or the parties hereto shall assume the Arbitration
fee.

(e)                                  In the course
of settling disputes, this Agreement shall be continuously executed by the
parties except for the part which is under arbitration.

 

Article 13 effectiveness of agreement and
language version

This Agreement is made in Chinese and
English. The Chinese and English versions shall be equally authentic. Each
party holds one original of Chinese version and one original of English
version. This Agreement and appendixes hereto shall from the whole text and
shall come into effect upon signature and seal by the parties hereto.

 

Landlord (Party A): Jilin
Sino-Microelectronics Co., Ltd.

Authorized Representative: Xia Zengwen

Date: Nov. 25, 2003

 

Tenant (Party B): Jilin Philips Semiconductor
Co., Ltd.

Authorized Representative

 

Page
6 of 11

 

Appendix
8 of Joint Venture Contract

 

List of appendixes:

 

Appendix 1: Construction Requirements see
Appendix 1 of Agreement for Service Level of Providing Power Facilities Services

 

Appendix 2: Plane Layout Design Drawing

 

Appendix 3: Red Line Map of the Land Block

 

Appendix 4: Final Appraisal Report for the
Premises and the Plot Issued by Zhonghe Assets Appraisal Co., Ltd.

 

Page
7 of 11

 

Appendix
8 of Joint Venture Contract

Appendix 1: Construction Requirements see
Appendix 1 of Agreement for Service Level of Providing Power Facilities
Services

 

Page
8 of 11

 

Appendix
8 of Joint Venture Contract

Appendix 2: Plane Layout Design Drawing

 

Page
9 of11

 

Appendix
8 of Joint Venture Contract

Appendix 3: Red Line Map of the Land Block

 

Page
10 of 11

 

Appendix
8 of Joint Venture Contract

Appendix 4: Final Appraisal Report for the
Premises and the Plot Issued by Zhonghe Assets Appraisal Co., Ltd.

 

Page
11 of 11

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