Exhibit 4(k)
Land Lease Agreement
(89)-Xxx-Xx-Xxxx-No. 013
This Lease Agreement is made and entered into by and between the Lessor, Xxxxxx
Export Processing Zone Administration of Ministry of Economic Affairs
(hereinafter referred to as "Party A") and Lessee ASE Test Inc. (hereinafter
referred to as "Party B").
Whereas, it is mutually agreed between the parties that a parcel of public land
inside the Xxxxxx Export Processing Zone ("Zone") managed by Party A is to be
leased to Party B on the terms and conditions as follows:
1. Land markings, rent and fees:
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Public
facility
No. District Leased construction
Markings of Land of the Area rent/m2 rent/month fee/month Note
Zone (m2) (NTD) (NTD) (NTD)
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District Section Sub-Section Land
Lot.
No.
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Sub-Section 722 5 2,842 11.50 32,683 0 Approved
2 to lease
By the
letter of
Party A
(Gin-Jya-
Chu-89-2-
Jian-Zi-
3131 of
April 13,
2000)
CL041 Nanzih Heping
District Section
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Total 2842 11.50 32,683 0
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2. The term of this lease shall start from May 1, 2000 and end on April 30,
2010.
3. The use of the leased land shall be limited to construction of office,
plant, warehouse or work site by the enterprises which have been approved
to operate in the Zone or establishment of a branch office by the competent
authority.
4. During the term of this lease, Party B shall, on its own initiative, apply
for return of the leased land when the whole or party of it is no longer
desired. Party B shall not sub-let or loan part or whole of the land to a
third party.
5. In the event that Party B applies to lease this parcel of land for the
construction of plant or other buildings on its own initiative, the
distance between the plant or building and the adjacent land leased by
other persons shall be three meters, the distance between the plant or
building and the main route of transportation shall be six meters, the
distance between the plant or building and the internal or branch route of
transportation shall be five meters, the distance between the plant or
building and the divided route of transportation shall be four meters. The
space saved from the aforesaid distance shall be reserved as a "set back
area". Party B shall be responsible for the costs and expenses incurred
from the arrangement and virescence of the set back area.
6. In the event that Party B applies to lease this parcel of land for the
construction of plant or other buildings, the principal construction should
be a building of two or more stories. The plane area of the construction
shall not be less than 50% or exceed 70% of the total leased area. In
addition, the construction of the plant or building shall follow the
principles as set forth below:
a. the set back area around the leased land shall be reserved as a vacant
lot for the purpose of fireproofing, lighting, evacuation and
virescence.
b. 20% of the net area out of the leased land after deducting the set
back area shall also be reserved as a vacant lot.
7. Party B shall pay Party A NT$32,683 as specified under Article 1 of this
Agreement before the fifth date of each month to the national treasury
agent appointed by Party A. In the event of arrears in payment for the
rent, Party B agrees to pay, in addition to the rent, fines for penalty as
calculated per the formulae below:
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a. an additional 5% of the annual rental is added for arrears in payment
over one month and less than two months;
b. an additional 10% of the annual rental is added for arrears in payment
over two months and less than three months; and
c. an additional 15% of the annual rental is added for arrears in payment
over three months and less than four months;
in the event that arrears in payment for the rental, fees and penalty of
fines have exceeded four months, in addition to pursuing the same, Party A
may also terminate this Agreement.
8. During the term of this lease Agreement, should the government announce any
land value adjustment, Party B agrees to adjust the rent accordingly from
the 1st date of following month after the adjusted land value is announced.
9. In the event that Party B applies to lease this parcel of land for the
construction of plant or other buildings, Party B shall commence the
fabrication within three months after the execution of this Agreement and
shall complete the construction on schedule. Party A may immediately
terminate this Agreement and recall the leased property should it occur
that Party B has not commenced the fabrication after the deadline or, where
the delay of the construction is agreed by Party A, Party B has failed to
commence the fabrication or complete the construction on schedule. In which
case, the rent and the public facility construction fee already paid by
Party B shall not be refunded, and Party A may have the right to dispose at
its discretion the uncompleted structure on the leased property or demand
Party B to remove the uncompleted structure according to the applicable
laws, and Party B shall not raise any objection.
10. When it is necessary that Party B must excavate the road, the drainage
system, the piping lines or any other public facilities inside the Zone for
the construction of the plant or building, Party B must obtain prior
approval from Party A and shall pay security deposit to Party A. Upon
completion of the fabrication, the site must be resumed to its original
condition by Party B. The security deposit will be refunded to Party B
without interest accrued. However, Party A may forfeit the security deposit
if Party B is in breach of its liabilities provided in this Article.
11. Party A may notify Party B to terminate this Agreement should any of the
following events occur:
a. Party B has breached this Agreement in the use of the leased property;
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b. the building owned by Party B is purchased or expropriated according
to Article 12 of the Establishment and Management of the Export
Processing Zone Act;
c. Party B is in arrears of rental payment and fees amounting to four
months.
d. the Agreement is terminated in compliance with the Civil Code or Land
Act.
12. In the event that the Agreement is terminated according to the preceding
Article, Party B shall return the leased land immediately. All structures
on the leased land that belong to Party B shall, within two years, be
resold to the qualified assignee that is located in the Zone as approved by
Party A or its sub-department. In addition, Party B shall effect the
payment according to Article 7 of the Agreement within the two-year period.
In the event that Party B fails to comply with this Article 12 or fails to
complete required procedure exceeding two years, Party A may purchase all
the equipment and facilities inside or outside the building on the leased
land according to the applicable laws, and Party B shall not raise any
objection.
13. In the event that Party B wishes to renew this Agreement upon expiration,
Party B shall file an application with Party A three months prior to the
expiry of this Agreement. Should Party B fail to file in renewing this
Agreement, Party B shall surrender the land upon expiry of this Agreement.
All structures on the leased land that belong to Party B shall, within six
months, be resold to the qualified assignee that is located in the Zone as
approved by Party A or its sub-department. In addition, Party B shall
effect the payment according to Article 7 of this Agreement within the
six-month period. In the event that Party B fails to comply with this
Article 13 or fails to complete required procedure exceeding six months,
Party A may purchase all the equipment and facilities inside or outside the
building on the leased land according to the applicable laws, and Party B
shall not raise any objection.
14. This Agreement is executed in duplicate with each party holding one copy.
This Agreement shall be effective upon execution. All disputes which may
arise in connection to or out of this Agreement shall be referred to the
courts appointed by Party A as the court of first instance.
The Contracting Parties:
Party A: Xxxxxx Export Processing Zone Administration (with seal)
By: Ding-bai Pan
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Add: 000, Xxx-xxxxx Xxxx, Xxxxxx Xxxxxxxx, Xxxxxxxxx
Party B: ASE Test Inc. (with seal)
By: Chen-xxxxx Xxxxx
Add: Xx.00, Xxxx xxxxx Xxxxxx, Xxxxxx Export Processing Zone, Kaohsiung
Corporate License No.: Xxxx-Xxx-Xxx-Xxxxx-Zi-3418
Dated: May 1, 2000
(With Official Seal)
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