Document:

Exhibit 10.21

 

(93)Nanerjianzi No. 024

 

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

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  construction

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Monthly

  	
   

  	
  Rent

  	
   

  	
  expense

  	
   

  	
   

  
	
   

  	
   

  	
  Place of the land

  	
   

  	
   

  	
   

  	
  rent/m2

  	
   

  	
  payable per

  	
   

  	
  payable per

  	
   

  	
   

  
	
  Number

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Number

  	
   

  	
  Leased

  	
   

  	
  (New

  	
   

  	
  month (New

  	
   

  	
  month (New

  	
   

  	
   

  
	
  of the

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  of the

  	
   

  	
  area

  	
   

  	
  Taiwan

  	
   

  	
  Taiwan

  	
   

  	
  Taiwan

  	
   

  	
   

  
	
  property

  	
   

  	
  Zone

  	
   

  	
  Section

  	
   

  	
  Subsection

  	
   

  	
  land

  	
   

  	
  (m2)

  	
   

  	
  Dollars)

  	
   

  	
  dollars)

  	
   

  	
  dollars)

  	
   

  	
  Remarks

  
	
  Al071

  	
   

  	
  Nanzi District

  	
   

  	
  Heping section

  	
   

  	
  The second subsection

  	
   

  	
  712

  	
   

  	
  734

  	
   

  	
  11.5

  	
   

  	
  8,441

  	
   

  	
  0

  	
   

  	
  Approved for lease the land hereunder by the letter of Jingjiachu
  erjianzi No. 09301021110 on July 13, 2004 with an area as listed in
  this table. The land is the apportioned base area for purchasing standard
  factory building. 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  The second subsection

  	
   

  	
  715

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  734

  	
   

  	
  11.5

  	
   

  	
  8,441

  	
   

  	
  0

  	
   

  	
   

  

 

 

2.                         The lease term is from
August 1, 2004 to July 31, 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 8,441 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 month
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
month 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       (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 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 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 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 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 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, 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 of 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

 

August 1, 2004

 

 

Annexed Drawing (93) Nanerjianzi No. 024

 

Heping section, Nanzi District, Kaohsiung CityExhibit
10.22

 

 

(94)Nanerjianzi No. 028

 

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

  (m3)

  	
  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

  	
  Approval for lease the
  land hereunder  by the letter of Jingjiachu
  erjianzi No. 09401021070 on June 29, 2005 with an area of 795 (m3).
  The land is the apportioned base area for purchasing standard factory building.

  
	
  Apportioned public

  facility land

  	
  246

  	
  1/1

  	
  2,829

  	
  0

  
	
  (The following is

  blank)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
  9,143

  	
  0

  

 

 

2.       The lease term is totally ten years from
August 16, 2005 to August 15, 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 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 9,143
New Taiwan Dollars as set forth in Article I 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 thee 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
thee 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 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 Jiachang Road, Nanzi District,
Kaohsiung City

 

August 16, 2005

 

 

 

Annexed Drawing of (94) Nanerjianzi No. 028

 

Place of factory building land leased out

 

Right scope: 1/16

 

Scale: 1/2000

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