EXHIBIT 10.18
EXHIBIT B
LEASE AGREEMENT
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This Agreement is made on this 4th day of June 1997, by and between:
ITALADE TECHNOLOGY (THAILAND) LIMITED, with its office located at Xx. 000/000
Xxxxxxxxxxxx Xxxx, Xxxxxxx Xxxxx, Amphur Lumloogka, Pathumthani Province,
Thailand (hereinafter referred to as "the Lessor"), and
ITALADE - PEMSTAR LIMITED, with its office located at Xx. 000/000 Xxxxxxxxxxxx
Xxxx, Xxxxxxx Xxxxx, Amphur Lumloogka, Pathumthani Province, Thailand
(hereinafter referred to as "the Lessee").
WHEREAS the Lessor is the legal and real owner of a factory building located at
No. 000/000 Xxxxxxxxxxxx Xxxx, Xxxxxxx Kukof, Amphur Lumloogka, Pathumthani
Provice.
WHEREAS the Lessor agrees to let and the Lessee agrees to lease a portion of the
factory building mentioned above, covering an approximate area of 1,861.07
square metres or approximately 20,025 square feet, the details of which are as
shown in the chart and floor plans attached hereto and which shall be deemed an
integral part hereof, which has access and is sufficient for the conduct of the
Lessee's business as now conducted or as presently proposed to be conducted, to
public roads and to all utilities, including electricity, sanitary, potable
wate, and other utilities used in the operation of the Lessee's business
(hereinafter referred to as "the Premises")
NOW, THEREFORE, both parties hereby agree as follows:
1. The Purpose of the Lease
The lessee shall use the Premises for the manufacturing of the flex circuit
assemblies, precision electro-mechanical assemblies, micro component
assemblies and other electronic circuit assemblies manufacuring.
2. Term of the Lease
The lease shall be 3 (three) years commencing from the execution date
hereof.
LEASE AGREEMENT
Between : Italade Technology (Thailand) Limited
: Italade - Pemstar Limited
Page 2
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3. Rent and Rental Payment
3.1 During the initial 18 (eighteen) months of the lease term mentioned
under the above Clause 2;
a) the Lessor agrees to let the Lessee take on lease of the certain
area of 10,000 square feet in the Premises on a free rent basis,
and
b) the Lessee agrees to pay to the Lessor the monthly rental for the
remaining 10,025 square feet of the Premises at the rate of Baht
25 per square feet, or totaling Baht 250,625 per month.
3.2 After the 18 (eighteen) months period mentioned in the above 3.1, the
Lessee shall pay the rent for the total area of 20,025 square feet of
said Premises to the Lessor on monthly instalment basis and at the
rental rate as mentioned in the above 3.1(b).
3.3 If, in any particular time after the date of this Agreement, the
Lessee requires more area in the Lessor's factory building for its
business operation in addition to the certain area of the Premises
under this Agreement, and the Lessor agrees to let the Lessee take on
lease of the requested additional area in its factory building for
such purpose. Then, both parties will come into an agreement on the
details of such additional area in the Lessor's factory building to be
leased and let by and between them (the "Additional Lease").
Said Additional Lease shall be subject to the terms and conditions of
this Agreement, except where the rent-free basis is referred under the
above 3.1(a). Any chart or floor plan relating to said Additional
Lease shall be attached hereto and shall accordingly be deemed an
integral part hereof.
4. Renewal
Upon the expiration of the lease term mentioned under Clause 2 of this
Agreement, the parties hereto may, by mutual agreement, renew this lease
term for another 3 years under the terms and conditions and at the rate of
rental as to be subsequently renegotiated by both parties.
LEASE AGREEMENT
Between : Italade Technology (Thailand) Limited
: Italade - Pemstar Limited
Page 3
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5. Utilities
The Lessee shall be responsible for the payment of water, electricity and
telephone consumed or installed at the leased Premises at the rate
prescribed by the authority concerned.
6. Assignment
The Lessee shall not assign or sublet the Premises to any third party
without receiving prior written consent or approval from the Lessor,
provided that the purpose of such assignment or sublet shall be consistent
with the purpose of this Agreement.
7. Taxes
The Lessor shall be responsible for the payment of the household and land
tax or any other tax incurred or to be incurred in connection with the
leased Premises, while the Lessee shall be responsible for any tax incurred
or to be incurred in connection with its business operation as prescribed
by the law.
8. Ownership Transfer
During the term of this Agreement, the Lessor shall not transfer the
ownership of the leased Premises without receiving prior consent from the
Lessee.
9. Termination
9.1 Each party hereto is entitled to terminate this Agreement with
immediate effect at any time by giving 90 (ninety) days prior written
notice to the other party, whereby both parties agree not to claim any
damages incident thereto.
9.2 Should the Lessor breach any material terms or conditions of this
Agreement and fail to remedy such breach within 15 (fifteen) days
commencing from the date of receipt of the written notification from
the Lessee, the Lessee is entitled to terminate this Agreement and
claim any damages incurred therefrom as prescribed by the law.
9.3 Should the Lessee breach the material terms or conditions of this
Agreement and fail to remedy such breach within 15 (fifteen) days
commencing from the date of receipt of the
LEASE AGREEMENT
Between : Italade Technology (Thailand) Limited
: Italade - Pemstar Limited
Page 4
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written notification from the Lessor, the Lessor is entitled to
terminate this Agreement and claim any damages incurred therefrom as
prescribed by the law.
This Agreement is made in duplicate of the same tenor and meaning; one copy is
kept by the Lessor, and the other is kept by the Lessee.
LEASE AGREEMENT
Between : Italade Technology (Thailand) Limited
: Italade - Pemstar Limited
Page 5
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IN WITNESS WHEREOF the parties have executed this Agreement on the day, month
any year first above written.
The Lessor: The Lessee:
ITALADE TECHNOLOGY ITALADE-PEMSTAR LIMITED
(THAILAND) LIMITED
By: /s / By: / s / Xx Xxxxxxx
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( ) (Xx Xxxxxxx )
By:________________________________ By:_____________________________________
( ) ( )
Witness ____________________________ Witness: ________________________________
( ) ( )
