Exhibit 4(ff)
Lease Agreement for Public Land Managed by
Export Processing Zone Administration,
Ministry of Economic Affairs
Ref. No. (89) Nan-Her-Chien-Tzu #015
This lease agreement (hereinafter referred to as the "Agreement") made and
entered into by and between Advanced Semiconductor Engineering Inc.
(hereinafter referred to as the "Lessee") and the Export Processing Zone
Administration, Ministry of Economic Affairs (hereinafter referred to as the
"Lessor") for the lease of one plot of public land within the Nantze Export
Processing Zone.
1. Leased Land Designation, Area and Rental Charge:
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Rental Public
Land Designation Rental Charge Facilities
------------------------------------- Area Charge per Construction
Asset Lot District Rented per m2 Month Charge Per
Number District Section Subsection Number Classification (m2) (NT$) (NT$) Month (NT$) Notes
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CL046 Nantze Hoping 2nd 626 2,307.00 11.50 26,530 0 Approval for rental
District Section Subsection per letter of Jing-
Chia-Chu (89)
Her-Chien-Tzu
#005423 (dated June
5, 2000)
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Total 2,307.00 11.50 26,530 0
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2. The rental period shall be from July 1, 2000 to June 30, 2010.
3. The leased land may be used only by enterprises permitted to operate
in the Export Processing Zone for the construction of offices, plant
buildings, warehouses or workplaces or by the regulatory authorities
for the establishment of branch offices within the Nantze Export
Processing Zone.
4. If, during the period of validity of the Agreement, the Lessee ceases
to use all or part of the leased land, it shall immediately apply to
terminate the Agreement; it shall not transfer, sublet or lend the
land to a third party.
5. If the Lessee rents the land for the construction of a plant building
or other building, besides leaving setback of 3 meters between the
building and land rented by other parties, it shall also leave
setback of 6 meters on any side facing onto a main road, 5 meters on
any side facing onto an inner ring road or secondary road, and 4
meters on any side facing onto a tertiary road. The Lessee shall pay
for and undertake the putting in order and greening of the land
reserved for setback.
6. If the Lessee rents the land for the construction of a plant building
or other building, in principle the building shall have at least two
stories. The building area shall not be less than 50% or more than
70% of the total area rented and shall be handled according to the
following rules:
(1) No buildings shall be erected on the land reserved for setback
on the four sides of the land based on the needs of fire
prevention, lighting, transportation, beautification etc.
(2) At least 20% of the land area remaining after the deduction of
the land reserved for setback must be left vacant and not built
thereon.
7. The Lessee shall pay NT$26,530 for rental charge as specified in
Article 1 of the Agreement at the appointed agency of national
treasury. A penalty of fines shall be levied for arrears in payment
as follows:
(1) An additional 5% of the rental is added for arrears in payment
for over one month and less than two months;
(2) An additional 10% of the rental is added for arrears in payment
for over two months and less than three months; and
(3) An additional 15% of the rental is added for arrears in payment
for over three months and less than four months.
If payment of the rental charge, other fees and breach of contract
penalty is overdue by more than four months, in addition to
continuing to press for payment, the Lessor may also terminate the
Agreement.
8. If the government adjusts the land value in accordance with
relevant law, the rental charge shall be adjusted according to the
new land value beginning on the first day of the month following the
month in which the new land value was announced, and the Lessee shall
raise no objection thereto.
9. If the Lessee leases the land for construction of a plant building or
other building, the Lessee shall complete the construction within
three months of the execution of this Agreement, and shall complete
construction of the building in accordance with the plan. If the
Lessee does not begin construction of the building on schedule, or
if, after applying for an extension, the Lessee still fails to begin
construction within the new time limit, or if the Lessee fails to
complete construction in accordance with the plan, the Lessor may
terminate the Agreement and take back the land. Any rental charges
and public utilities construction charges already paid will not be
returned to the Lessee. If there are any uncompleted buildings on the
land, the Lessor may dispose of these in accordance with the law, or
may require the Lessee to remove them; the Lessee shall raise no
objection to this, and may not refuse to remove the buildings if
asked to do so.
10. If, in order to construct a plant building or other building, the
Lessee needs to dig up the roads, drainage pipes (or water supply
pipes) or other public facilities in the Export Processing Zone, it
shall apply to the Lessor for approval in advance and shall pay a
deposit. Once the work has been completed and the public facilities
restored to their original condition, the deposit will be returned,
without interest; the deposit will not be returned if the above
requirements are violated.
11. The Lessor may terminate the Agreement by notifying the Lessee in the
event that any of the following occurs:
(1) If the Lessee uses the land in a way which violates any of the
provisions of this Agreement;
(2) If the buildings belonging to the Lessee are purchased by price
negotiation or compulsory purchase in accordance with Article 12
of the Regulations Governing the Establishment and Management of
Export Processing Zones;
(3) If the Lessee is in arrears in the payment of the rental charge
and other charges by four months or more; or
(4) If any other circumstances arise which permit the termination of
the Agreement in accordance with the Civil Code or with the Land
Law.
12. If the Agreement is terminated in accordance with the preceding
Article, the land shall be returned immediately. If there are any
buildings belonging to the Lessee on the land, the buildings shall be
sold within two years to another enterprise operating in the Export
Processing Zone approved by the Export Processing Zone Administration
or its branch office; the land rental charge for the period up until
sale of the buildings shall be paid in accordance with Article 7 of
this Agreement. If the Lessee fails to dispose of the buildings in
accordance with this Article, or if the disposal procedures have not
been completed after two years, the Lessor may handle the matter in
accordance with the law, or may purchase by price negotiation all
facilities and goods belonging to the Lessee within the buildings on
the rented land; the Lessee shall raise no objection thereto.
13. If, on the expiry of this Agreement, the Lessee wishes to renew the
Agreement, it shall submit a written application for renewal of the
Agreement to the Lessor at least three months prior to the expiration
of the Agreement. If the Lessee does not apply to renew the Agreement
by the expiry of the Agreement, the Lessee shall return the land
immediately on the expiry of the Agreement. Any buildings belonging
to the Lessee on the leased
land shall be sold within six months to another enterprise operating
in the Export Processing Zone approved by the Export Processing Zone
Administration or its branch office; the land rental charge for the
period up until sale of the buildings shall be paid in accordance
with Article 7 of this Agreement. If the Lessee fails to dispose of
the buildings in accordance with this Article, or if the disposal
procedures have not been completed after six months, it shall be
deemed to breach the Agreement. The Lessor may dispose or purchase
all buildings belonging to the Lessee on the leased land and all
facilities and goods within the buildings in accordance with the law;
the Lessee shall raise no objection thereto.
14. This Agreement has been executed in two originals and shall take
effect upon execution. The Lessor and Lessee shall each retain one
original. In the event of a dispute arising with respect to this
Agreement, the court of first instance shall be determined by the
Lessor.
Parties to the Agreement:
Lessee: Advanced Semiconductor Engineering Inc.
Authorized or legal representative:Jason Chang
Address: 26 Ching San Road, Nantze Export Processing Zone
Company registration number: Jing Chia Chu Hsin Tzu #3413
Lessor: Export Processing Zone Administration,
Ministry of Economic Affairs
Legal representative: Pan Tin-bai
Address: 600 Chiachang Road, Nantze District, Kaohsiung City
Date: June 26, 2000