Exhibit 4(hh)
Lease Agreement for Public Land Managed by
Export Processing Zone Administration,
Ministry of Economic Affairs
Ref. No. (89) Nan-She-Tzu #002
This lease agreement (hereinafter referred to as the "Agreement") made and
entered into by and between Advanced Semiconductor Engineering Inc., Ase Test
Inc. (hereinafter collectively 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 four plots of public land within
the Nantze Export Processing Zone.
1. Leased Land Designation, Area and Rental Charge:
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Rental
Land Designation Rental Charge
------------------------------------- Area Charge per Rental
Asset Lot Rented per m2 Month Approval
Number District Section Subsection Number (m2) (NT$) (NT$) Document No. Notes
- ------------------------------------------------------------------------------------------------------------------
Nantze Hoping 2nd 442 1,339 33.3 44,588
District Section Subsection 443 176 33.3 5,860
444 1,976 34.8 68,764
557-1 1 48.7 48
- ------------------------------------------------------------------------------------------------------------------
Total 3,492 119,260
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2. Rental Period:
The rental period shall be from October 1, 2000 to September 30, 2010
for a total of ten years.
3. The land covered by this Agreement is available only for rental
and not for sale. The Lessee may not claim any right to establish
superficies on the land, and the use of the land is limited to the
construction of an office building for it own use in accordance with
the plan.
4. The Lessee shall, prior to the 5th day of each month, pay
NT$119,260 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;
(3) An additional 15% of the rental is added for arrears in payment
for over three months and less than four months; and
(4) For every additional month in excess of four months, an
additional charge equivalent to 5% of the rental charge shall be
made.
In the event that the government resets the land value in accordance
with law, the rental referred to in the preceding paragraph (that the
annual rental is equivalent to the rental land area multiplied by the
current reported land value multiplied by the rental rate, with
annual interest on the reported land value calculated at 5% in
accordance with the Land Law) shall be adjusted as of the 1st day of
the following month after the new land price is published to which
the Lessee shall have no objections.
5. The land value tax payable on the leased land shall be paid by
the Lessor. All other taxes, cost of construction of public
facilities and construction benefit fees shall be borne by the
Lessee.
6. If the Lessee terminates the Agreement or if the Agreement is
terminated by the Lessor pursuant to Article 11 of this Agreement,
the Lessee shall not claim any compensation from the Lessor.
7. If the Lessee wishes to sell the building, the Lessor may purchase
the building, either by price negotiation or by compulsory purchase
at the market value.
8. In the event that the Lessee plans to build plant facilities on the
leased land, construction shall commence within three months as of
the date this Agreement is executed and the construction shall be
completed in accordance with planned schedule. The Lessor may
terminate this Agreement and recall the leased land should the Lessee
fail to commence the construction as planned or, after extension is
applied and approved, fail to commence by the deadline or complete
the construction as scheduled. In which case, rental and fees for
public facilities already paid shall not be refunded. With regard to
the uncompleted structure on the leased land, the Lessor may dispose
in accordance with relevant laws or require the Lessee to dismantle
the structure to which the Lessee shall raise no objections.
9. If the Lessee is not using any part or the whole of the leased land,
it shall apply to the Lessor to terminate the Agreement and shall not
transfer or sublet the land, or transfer the rental right to a
substitute. If this provision is violated, not only shall the
Agreement be terminated, but the Lessee shall be required to pay a
breach of contract penalty equivalent to four times of the monthly
rental charge. However, if the party to whom the land is transferred
is another company located in the Export Processing Zone and willing
to pay the outstanding rental charge and breach of contract penalty
for the Lessee, and is willing to continue to perform the Agreement,
the rental may be transferred and a new lease agreement shall be
executed.
10. If the Lessee wishes to sell the buildings on the leased land
pursuant to relevant law, or if the buildings are auctioned off by
court order, the Lessor shall be notified in advance and shall have
the priority right to purchase the buildings. Only if the Lessor
waives its right to purchase may the buildings be sold to another
party. Within 30 days of the date on which the buildings on the land
were sold or auctioned off by court order, an application must be
submitted to the Lessor for transfer of rental and the signing of a
new lease agreement. If this provision is violated, not only shall
the Agreement be terminated, but the Lessee shall be required to pay
a breach of contract penalty equivalent to four times of the monthly
rental charge. However, if the party to whom the land is transferred
is another company located in the Export Processing Zone and is
willing to pay the outstanding rental charge and breach of contract
penalty on behalf of the Lessee, and is willing to continue to
perform the Agreement, the rental may be transferred and a new lease
agreement shall be executed.
11. The Lessor may terminate the Agreement and the Lessee shall raise no
objection thereto in the event that any of the following occurs:
(1) If the Lessor needs to change the use of the land in accordance
with law for the undertaking of a public construction project;
in this case the Lessor shall notify the Lessee at least two
months in advance, and shall purchase the buildings on the land,
either by price negotiation or by compulsory purchase at the
market price;
(2) If the Lessee is in arrears in the payment of the rental charge
for over two years;
(3) If the Lessee uses the land in a manner which violates the law
or is not in conformity with the construction plan;
(4) If the requirements of Article 104 of the Land Law are not
followed prior to the sale of the buildings constructed on the
leased land by the Lessee;
(5) If the Lessee violates any of the provisions of this Agreement;
(6) If the enterprise to which the Lessee belongs is dissolved,
merged or goes out of business; or
(7) If any other circumstances arise which permit the termination of
the Agreement in accordance with the Civil Code, the Land Law or
other relevant laws.
12. During the rental period, the Lessee shall pay due attention to
public safety and the maintenance of environmental hygiene, and shall
carry out the custodial obligations of a bona fide administrator and
the responsibilities of a good neighbor. In the event of a dispute
arising with a neighboring community, the Lessee shall be responsible
for settling the dispute between themselves, and shall bear full
legal responsibility.
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, otherwise it shall be deemed to have no desire to
renew the Agreement. On the expiry of the Agreement, the land shall
be returned. All buildings on the land belonging to the Lessee shall
be sold within six months to another company located within the
Export Processing Zone approved by the Lessor, and compensation for
land use during this period shall be paid in accordance with Article
4 of this Agreement. If the Lessee fails to deal with the matter in
accordance with this Article or fails to complete the necessary
procedures within six months, it shall be deemed to breach the
Agreement.
14. If the Lessee breaches the Agreement or the Agreement is terminated
in accordance with Article 11 of the Agreement, Lessee shall restore
the land to its original condition and return it to the Lessor,
otherwise the Lessor shall have the right to dispose of all buildings
on the land belonging to the Lessee and all facilities within the
buildings as they deem fit, with the costs to be borne by the Lessee;
the Lessee may raise no objection thereto.
15. On the expiry of the rental period, if the Lessee continues to use
the land without having arranged the renewal of the Agreement, it may
not claim the application of Article 451 of the Civil Code, or raise
any other objection.
16. The Lessee shall find two suitable guarantors. The guarantors shall
bear joint liability with the Lessee.
17. Any matters not provided for in this Agreement shall be handled in
accordance with the Regulations Governing the Lease of Public Land
Within the Nantze Export Processing Zone and other relevant
regulations.
18. If the revision of any relevant laws or regulations during the period
of validity of this Agreement causes there to be any inconsistency
with respect to the Agreement, the revised regulations shall govern.
19. This Agreement has been executed in three originals, with five
additional copies. The Agreement shall take effect upon execution.
The parties shall each retain one original and one copy of the
Agreement.
Parties to the Agreement:
Lessee: Advanced Semiconductor Engineering Inc.
Ase Test Inc.
Authorized or legal representative: Jason Chang
Tel. 07-3617131, 07-3636641
Address: 26 Ching San Road, Nantze Export Processing Zone
10 Hsi Wu Street, Nantze Export Processing Zone
Guarantor: Ase Material Inc.
Date of Birth: -
ID Card No.: 22101468
Tel. No.: 07-3658500
Address: 73 Kai Fa Road, Nantze Export Processing Zone
Guarantor: Hung Chin Construction Ltd.
Date of Birth: -
ID Card No.: 22344508
Tel. No.: 02-226915866
Address: 10F, 420 Keelung Road Section One, Taipei City
Lessor: Export Processing Zone Administration, Ministry of
Economic Affairs
Legal representative: Pan Tin-bai
Address: 600 Chiachang Road, Nantze District, Kaohsiung City
Date: September 30, 2000