EXHIBIT 10.6
LEASE AGREEMENT
This agreement is made on the 2nd July, 2001 between President, Xxxxxxx Xxxx of
Keumkwang (Landlord) and the Tenant, Liquidmetal Technologies (represented by
Xxxxxxx Xxx).
1. PREMISES
Real property commonly known by the street address of 000 XX/ Xxx0, Xxxxxxx
Industrial Complex, 000-0, Xxxxx-Xxxx, Xxxxxxx-Xx, Xxxxxxx, Xxxxx.
Used for Manufacturing Plant approximately 9,000 square feet. (Refer to the
attachment)
Electricity: Industrial high voltage 100 KW
Security deposit: 55,000,000 Won
Monthly base rent: 5,500,000 Won per month (VAT excluded)
Lease term: Commencement date - 07/07/2001
Termination date - 07/06/2002
2. USE
The Premises shall be used and occupied only for product manufacturing and for
no other purpose.
3. EXTENSION OR TERMINATION OF THE AGREEMENT
If both parties don't give any further notice within 3 months ahead of lease
termination, this agreement shall be extended for another year under the same
condition.
4. TERMINATION DURING THE LEASE TERM
Premature termination of the lease shall require at least 3-month advanced
notice in written statement. Otherwise, Tenant shall pay the amount of 3-month
rent for compensation with no objection.
5. BASE RENT
Base rent will be the amount set forth above in the article 1. (VAT excluded)
6. DELIVERY OF BASE RENT
Tenant shall pay the monthly installment of base rent in cash by the last day of
each calendar month succeeding to the commencement date upon signing this
agreement. If Tenant is delinquent in any monthly installment of base rent for
more than 60 days, Landlord can unilaterally terminate the agreement and request
vacation of the Premises.
7. BASE RENT IS DEEMED TO THE AMOUNT BASED ON NUMBER OF DAYS, NOT MONTH,
NO MATTER WHICH DATE OF THE MONTH WAS THE DATE OF COMMENCEMENT.
8. RENT INCREASE
Base rent is subject to the changes of prices and expenses to maintain the
Premises. Landlord may increase base rent unilaterally every year.
9. BASIC DATE OF RENT
In case of delay in commencement, Tenant shall be obligated to pay rent. If
Landlord is unable to deliver possession as agreed, the rent shall be calculated
based on the date of actual possession by Tenant.
10. PAYMENT OF BASE RENT
The security deposit and rent shall be payable in lawful money of the Republic
of Korea in cash.
11. SECURITY DEPOSIT
Tenant shall pay 5,500,000 Won, 10% equal to the security deposit, 55,000,000
Won on signing the agreement, then pay the reminder of the amount by July 7th,
2001 in full. No interest shall be paid to the deposit during the lease term
defined. If Tenant fails to pay rent or other charges due hereunder, Landlord
may use, apply or retain all or any portion of deposit for the payment of any
rent or other charge in default or for the payment of any sum to which Landlord
may become obligated by reason of Tenant's default, or to compensate Landlord
for any loss or damage which Landlord may suffer thereby. Tenant shall also pay
the portion of deposit deducted in 15 days, otherwise Landlord may claim 10%
equal to deposit for compensation.
12. RETURN OF SECURITY DEPOSIT
The deposit shall be returned at the expiration of the term there of, and after
Tenant have vacated the Premises. If Tenant fails to move in as well as pay the
rent in time more than 2 months, the lease can be terminated unilaterally, even
though Tenant holds the mutual agreement in written statement. If any portion of
deposit has been deducted, only the reminder of the amount from deposit shall be
returned. If Tenant infringes the agreement, Landlord can deduct 10 % equal to
deposit for compensation.
13. DELAY IN COMMENCEMENT
If possession is not delivered within 60 days after the commencement date,
Landlord may request unilateral termination of lease and make claim for
compensation.
14. PROHIBITION ON TRANSFER OF RIGHT AND SUBLET
1) Without Landlord's prior consent, Tenant shall not assign this Lease or
sublease the Premises or any part thereof or mortgage, pledge, or hypothecate
its leasehold interest or grant any concession or license within the Premises
and shall be void and of no effect.
2) Tenant shall obtain the prior consent of Landlord, Master Lessor to any
subletting.
3) If Tenant fails to keep the agreement above, the lease shall be automatically
terminated and Tenant shall evacuate the Premises with no objection.
15. ALTERATIONS, ADDITIONS OR IMPROVEMENTS TO THE PREMISES
Any Alterations, additions or improvement made by or on behalf of Tenant to the
Premises shall be subject to Landlord's prior consent and shall be done at
Tenant's expenses. Details of alterations, additions or improvements. 1) through
7)
16. LANDLORD'S LIMITATION OF LIABILITY
1) Landlord shall not be subject to responsibilities in damages caused by
natural disasters or any causes that can't be reverted to its responsibilities.
2) Any damages by Tenant and its occupants during the lease term shall be
repaired by Tenant's own expenses.
3) Any civil or criminal cases involving environmental issues occurred during
the lease term shall be Tenant's responsibility. Landlord shall disclaim all the
responsibility in the matter of legal issues.
17. FIRE PREVENTION
Tenant is subject to insure the Premises against fire valid from the
commencement date as well as furnish the property with fire extinguishers.
Tenant shall train its occupants for fire prevention.
18. EVACUATION OF THE PREMISES
1) If Tenant fails to pay the rental installment, Landlord may terminate the
lease or refuse to extend it. Landlord may request immediate evacuation of the
Premises.
2) Tenant shall vacate the Premises within five days once the lease is
terminated or canceled. The Premises shall be remained in a sound condition when
evacuated.
(handwritten note says) To install partitions, Tenant shall pay 2,000,000 Won at
its expense, and leave as it is when vacating unless Landlord asks to remove.
19. LANDLORD'S RIGHT OF PROPERTY DISPOSAL
1) Tenant's absence from the country shall not be excused from any legal
responsibilities. If the lease terminates while Tenant's out of country without
any notice and rent is not completely paid, Landlord may dispose of the
facilities by auction.
2) Landlord shall obtain the priority to settle default payment from the
disposal.
20. INSPECTION
Landlord, its agents, and contractors may enter the Premises to inspect the
Premises or to show the Premises to prospective tenants and purchasers. Tenant
shall not refuse to get the inspection without appropriate reasons.
21. NOTICE ON ANY CHANGES OF TENANT'S STATUS
Tenant shall give a notice to Landlord regarding any changes of address, name of
business, representative, or the purpose of business in written statement.
22. TAXES
Landlord shall pay all taxes, however, taxes that accrue against the Project
during the Lease Term shall be included as part of the operating expenses
charged to Tenant.
23. TENANT'S REPAIRS
Tenant shall compensate any damages on the Premises caused by Tenant, visitors
or others related at its expenses. It shall cover damages by accident as well as
the ones on purpose.
24. TERMINATION OF LEASE
Landlord can terminate the lease without delay in case of:
1) In case of bankruptcy, provisional attachment, attachment, or any relevant
changes that prove serious menace to the lease based on Landlord's
judgment.
2) If Tenant fails to keep the agreement
3) Even after the termination of the agreement, Landlord may make claim for
compensation.
25. ELECTRICITY
Tenant shall be the operator of the electric facilities on the Premises and have
an independent obligation to ensure the safety from any accident or damages
caused by electric problems.
ADDENDUM (DETAILS NOT TRANSLATED.)
1. Payment of delayed rent and tax
2. Supplement to the article 16-3
3. More about eviction
Both parties shall keep the original copy signed by each representative.
July 2nd, 2001
Landlord: Keumkwang Inc. /s/ Xxxxxxx Xxxx
Tenant: Liquidmetal Technologies /s/ Xxxxxxx Xxx
ATTACHMENT:
1. Floor Plan. (omitted)
2. Certified copy of Building registration issued by District Court of Incheon.
(omitted)
TRANSLATION CERTIFICATE
THE UNDERSIGNED OFFICER OF LIQUIDMETAL TECHNOLOGIES HEREBY CERTIFIES THAT THE
FOREGOING IS A FAIR AND ACCURATE ENGLISH TRANSLATION OF THE ORIGINAL LEASE
AGREEMENT, WHICH IS IN THE KOREAN LANGUAGE.
BY: /s/ XXXX XXXX
---------------------------------
Xxxx Xxxx, President
of Liquidmetal Technologies
