EXHIBIT 10.04
HOUSE LEASE AGREEMENT
(ENGLISH TRANSLATION)
The renter Reng Bang Information Co., Ltd. called by A
Xx.Xxxx,Li-Lung
The xxxxxx d-Life Development Co.,Ltd. called by B
Xx.Xxx,Xxxxx-Der
And the conditions of th MIT Technical Business Building is agreed by both
sides as follows
Article 1 Designation of Leased House & Parking Space (hereinafter called the
"Premises"):
1. It includes the piece of land located at 12 Kuang Fu Section,
Hsinchu City along with the building built on the land
[construction permit No.: Xxx Xxxx (89) Kung Shih Tzu No.
0047] of four floors below the ground and fourteen floors
above the ground, which is divided into Building A, Building B
and Building C with a total area of 230.61 Pings (See Appendix
1 for the floor plan of the building.).
2. There are four parking spaces in total at the 4-floor
basement, which are 27A, 28A, 43B and 44B (See Appendix 2 for
the floor plan of the parking spaces.).
3. Accessory Equipment: Ceilings, T-bar lamps and air
conditioner, etc.
Article 2 Lease Term:
It commences on March 16, 2000 and expires on March 15, 2003.
Article 3 Rental:
1. The rental of the house for the first year is NT$288,263 on a
monthly basis and the rental of the parking space is NT$18,000
every month. Consequently, the total monthly rental amounts to
NT$306,263 (excluding business tax).
2. Party A agrees that the monthly rental shall be increased by
5% of that in the previous year on an annual basis starting
from the effective date of this lease agreement.
3. Rentals shall be paid with checks that should be issued once a
year for twelve months with Party B as the beneficiary. Upon
agreement, Party A shall issue the checks as rentals for the
first year to Party B, who should give a receipt to Party A
every time after the check is cashed.
Article 4 Rent Deposit:
1. Party A should give a rental sum of three months to Party B as
a guarantee of performance of this agreement and Party B
should give a receipt to Party A.
2. When the agreement is not to be renewed upon expiration and
Party A returns the Premises without any violations against
the agreement in accordance with the regulations specified
therein, Party B shall return the rent deposit in total
without any interest. Party B should issue an invoice of the
same amount accrued from the interest of the rent deposit to
Party A on a monthly basis.
3. Party A is not entitled to compensate the rent deposit for
rentals, indemnities or any other accounts payable to Party B.
4. Upon terminating or expiring this agreement, Party B is
entitled to subtract the penalty, indemnities, payable but not
received rentals, other expenses, added interest or business
taxes payable by Party A from the rent deposit. Party B shall
return the remaining sum to Party A without any interest;
however, Party A should make up the balance if necessary.
Article 5 Arrear Rent:
When Party A cannot pay the rent on the appointed date or the checks
cannot be cashed, the same party shall be liable to pay 1% of the
monthly rent for the delayed account on a daily basis as deferred
interests, which should be delivered to Party B while making up the
difference. If the amount of the deferred account and interest equals
to a rental of two months, Party B is
entitled to send a reminder letter for receivables on demand.
Nevertheless, if no correction has been made, Party B is entitled to
execute Clause 2 of Article 10.
Article 6 House Delivery & Delivery Deferment:
1. Party B should furnish all major and accessory equipment for
the building and obtain the operation permit within six months
after the permit has been verified and approved. Besides,
necessary public facilities such as water, power, elevators,
fire-fighting equipment and generators, etc. have to be
prepared before informing Party A for house delivery.
2. Party A should complete house delivery within the period
specified by Party B. Party A shall be deemed acceptance of
house delivery if the date of house delivery is changed
without prior consent of Party B or the period has been
overdue for more than fifteen days starting from the notice
date.
3. Prior to completion of house delivery, Party A is not allowed
to enter the house for construction without permit and shall
be liable for the benefit or danger of the Premises from the
date of house delivery (including deemed acceptance).
4. If Party B does not return the Premises upon expiration, the
same party shall be liable to pay 1% of paid rents and rent
deposits (realized portion) on a daily basis as a penalty to
Party A. When it is overdue for two months and the Premises
have not been delivered yet, Party B is regarded as violating
against the agreement and Party A is entitled to execute
Clause 1 of Article 10.
Article 7 Limitations of Use
1. No sublease, lending and sales of the Premises or delivering
the Premises to any other party for use or management in any
different ways are allowed without prior written consent of
Party B.
2. Party A should follow the regulations specified for the
Premises for management and use.
3. When Party A violates the regulations relevant to use of the
Premises and does not correct or correct incompletely within
the period specified by Party B, Party A shall be deemed
default and Party B is entitled to execute Clause 2 of Article
10.
Article 8 Safekeeping & Maintenance:
1. Party A is liable to exert every effort to take proper care of
all facilities of the Premises from the date of house
delivery.
2. For the existing defects recognized by both parties upon
delivery, Party B is liable to finish repair within a
reasonable period.
3. Party A shall not be liable for the natural wear, Force
Majeure or any other damage not attributable to Party A during
the term as follows:
(1) When Party A cannot lease the Premises due to the reasons
not attributable to Party A as aforementioned, Party
A has the right to terminate this agreement and is
not limited to Item 1, Clause 1 of Article 12.
(2) When repair or prevention of hazardous equipment is
required, Party A should notify Party B, which shall
be liable for repair. However, if Party B cannot take
proper action in time due to negligence of Party A,
Party B has the right to claim for the loss and
damage resulted.
(3) When the damage of the Premises is totally
attributable to Party A, Party A shall be responsible
for repair; however, if repair cannot be made or does
not meet application standards, Party B is entitled
to terminate this lease agreement and shall not be
subject to Item 1, Clause 1 of Article 12. In
addition, Party A shall be liable for all
compensations.
Article 9 Guarantee of Rights
Party B guarantees to have legal ownership of the Premises and lease
rights of Party A shall not be breached due to claims of any other
party. In case of violations and correction is required to be made by
Party B within a specified period, Party A is entitled to send a
reminder letter to Party B for improvements on demand fifteen days
after the due date. However, if no correction has been made, Party B is
deemed as the defaulting party and Party A is entitled to execute
Clause 1 of Article 10.
Article 10 Defaulting Penalty:
1. When Party B violates Clause 4 of Article 6 or Article 9,
Party A has the right to terminate the agreement. In addition
to giving the undue rent and rent deposit back to Party A,
Party B shall pay an equal sum of rent deposit to Party A as a
penalty.
2. When Party A violates Article 5, Clause 1 of Article 7, Item
1, Clause 3 of Article 12 or Clause 1 of Article 13, Party B
has the right to terminate the agreement and forfeit the rent
deposit as a penalty.
3. When Party A does not return the Premises upon expiration of
the agreement or after seven days of expiration, in addition
to forfeiting the rent deposit starting from the following day
of expiration, Party A shall pay a double rent as a penalty to
Party B on a daily basis. When it is overdue for fifteen days
and Party B has sent a legal notice to Party A, which still
does not return the Premises, Party A shall be charged with
misappropriation.
Article 11 Expenses:
1. Party B shall afford the house tax, land tax, fire insurance
premium of the building and charges of construction
beneficiary.
2. Party A shall be liable to pay for the management fee of the
building, water, electricity, phone and Internet bills during
the lease term.
Article 12 Termination:
1. Termination Conditions:
(1) This agreement shall not be terminated less than
three years.
(2) When this agreement is not expired and Party A wishes
to terminate, a formal notice should be delivered to
Party B three months earlier. In addition to
returning the Premises as specified, Party A shall
compensate Party B with the rent deposit.
(3) When this agreement is not expired and Party B wishes
to terminate, a formal notice should be delivered to
Party A three months earlier. In addition to
returning undue but paid amount made by Party A,
Party B shall compensate Party A with the amount same
as the rent deposit.
2. When Party A wishes to renew the agreement, a formal notice
should be delivered to Party B three months before the
expiration date. Upon taking the lease requirements made by
Party B into consideration, Party A has the priority of lease.
However, if Party A does not send a notice as aforementioned,
it will be regarded that Party A does not agree to continue
such lease relationship.
3. When the agreement is expired or terminated, Party A should
restore the Premises to their original conditions and clean
them prior to returning to Party B unconditionally without
asking for relocation fees or any other expenses.
(1) If Party A does not clean, Party A should agree to
let Party B enter the Premises and remove the
remaining properties left by Party A in accordance
with Clause 2 of Article 10.
(2) If there are any properties left, they shall be
regarded as wastes and at the discretion of Party B.
If there are any expenses resulted therefrom (such as
penalty for deferred return, handling expense &
disposal fee, etc.), Party A shall be responsible for
them. Besides, Party A will have to be liable for
repair or compensation for any damage in compliance
with Clause 3 of Article 4. For the articles that
Party B has agreed not to restore or remove in a
written form, Party A shall deliver such items
directly to Party B.
Article 13 Other Regulations:
1. When the lease agreement is expired or terminated, Party A
shall move his/her business location to another place
accordingly. If it is not completed within seven work days,
Party A shall be deemed as the defaulting party and Party B
shall be entitled to conform to Clause 3 of Article 10.
2. If any defaulting party breaches the rights of the other
non-defaulting party, the defaulting party shall be liable to
pay for the damage or any other related expenses suffered by
the other party in addition to complying with relevant
regulations.
3. Party B is entitled to sell the Premises to other people
during the lease term; however, the successor will still be
required to lease the Premises to Party A in accordance with
the same articles of the agreement until expiration and Party
B agrees to provide
necessary assistance. When the successor cannot perform the
articles specified in this agreement, Party B will be deemed
as the defaulting party and have to compensate Party A in
compliance with Clause 1 of Article 10.
4. When Party B sells the Premises to other people, Party B
should return the checks payable by Party A but undue back to
Party A, which shall reissue rent checks to the buyer of the
Premises.
Article 14 Special Regulation:
Article 15 Notice & Acceptance:
All written advices, communications or notices between both parties
shall be made to the mail addresses specified in this agreement. A
written notice by register should be sent to the other party for any
changes of mail addresses. In case of rejected or returned letters, the
first delivery date will be regarded as the acceptance date.
Article 16 Validity of Agreement:
This agreement has eighteen pages in total along with the appendixes
and attached drawings. Both parties agree that validity of this
agreement won't be affected even without being sealed on the
perforation.
Article 17 Governing Court:
Any dispute which may arise in connection with this agreement shall be
settled and governed by the first instance local court where the
Premises is situated.
Article 18 Retaining of Agreement:
This agreement is in duplicate and each party shall retain one.
All conditions above are agreed by both sides and keep the document for
each one.
Party A Reng Bang Information Co.,Ltd
No 23788629
President Xx.Xxxx,Li-Lung
Address 6F,No894,Sec4,Xxxxx Xxx Rd.ChuDung Town,
Taiwan.R.O.C.
Phone (00)0000000
Party B Derlee Technical Developt Co.,Ltd
No 22419042
Address 10F,No36,NanJien W Rd.DaTon Xxxx.Xxxxxx
City,Taiwan.R.O.C.
Phone (00)00000000
Date 22,Feb,2000
Payment List
Deposit NT$918,789
House Rental Monthly Car Rental Monthly Total Amount
-------------------- ------------------ ------------
First Year NT$288,268 NT$18,000 NT$306,263
Second Year NT$302,791 NT$180,000 NT$320,791
Third Year NT$318,011 NT$180,000 NT$336,011
