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Discount price Original
CONTRACT FOR TRANSFER THE RIGHT OF UTILIZATION OF LAND
IN SHENZHEN
Document Ref. No. shen-di-he-zi (1999) 4-030
Land ref.# A116-18
Red Line ref.# 99-10
1. Parties to this contract:
Transferor: Shenzhen National Land Planning Bureau (hereinafter called
"Party A") Legal representative: Jia Sheng, Liu
Position: Director
Address: No. 6, Zhen Xing Road, Fu Tian District, Shenzhen Telephone:
3231590
Transferee: Namtai Electronic (Shenzhen) Co., Ltd. (hereinafter called
"Party B")
Legal representative: T. Murakami
Position: Chairman
Address: Gu Su Industrial Estate, Xin An, Bao An District, Shenzhen
Telephone: 7495818
2. Pursuant to the national laws, rules as well as provisions of Shenzhen
Municipality, Party A and Party B entered into this contract.
3. Under this contract, it is only the right of utilization of land that is
to be transferred by Party A. The title of the land belongs to the
country. Any underground natural resources and hidden properties are not
included in the transferred right of land utilization.
4. Within 30 days after signing this contract, Party A shall transfer to
Party B the land of reference no. A116-18 with an area of 26,313.9
square meters. (see the area bound by red line on the property map)
5. The term of utilization of the aforesaid piece of land is 50 years
commencing April 26, 1999 until April 25, 2049.
6. The land shall be for industrial use.
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7. Requirements on land utilization:
1) The nature of main buildings: Factory site 44.9%; office area 20.5%;
dormitory and dinning place 34.6%
2) The total area of the land: 26,313.9 square meters,
3) Building density ( building vs. land): < 23%
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4) Building area ratio ( Floor area density ): < 1.4
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5) Total floor area: < 37,600 square meters
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6) Number of floors: < 7 floors
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7) Requirements regarding retreat of red boundary of the building and
overall layout: Follow the requirements of the Planning Permit for Use
of constructional land in Shenzhen City", document ref. No.
shen-gui-tu-gui-xu-zi 05-1999-0016
8) Green belt ratio Same as 7).
9) Grade elevation of the construction site Same as 7).
10) Distance between buildings Same as 7).
8. (deleted)
9. Party B shall pay to Party A (RMB) 421,022, the amount payable for
transferring the right of utilization of land (hereinafter called
"Transfer Fee"), as proceeds for acquisition of the right of utilization
of the land.
10. After negotiation, Party A and Party B agree that Transfer Fee can be
paid by either of the following two alternative methods:
1) Party B must pay, by cash cheque, at the same time of signing this
contract, 10% of the total amount of the Transfer Fee, which equals to
(RMB) 42,102. This amount shall be regarded as execution deposit to this
contract. Within 60 days after this contract is signed, full payment of
the Transfer Fee should be fulfilled.
2) (2nd option is deleted)
11. If, within the time schedule stated on this contract, Party B has not
paid the full amount of the Transfer Fee, 0.05% overdue interest of the
total payable amount shall
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be calculated on daily basis. Overdue after 60 days, Party A may cancel
the contract and retrieve the right of utilization of the land.
If Party B has only paid the deposit, this amount is non-refundable. If
Party B has used the amount of deposit to set off the total payable
amount of the Transfer Fee, Party A will deduct, from the amount
(already) paid (by Party B), 10% of the total payable amount (of the
Transfer Fee) as penalty, and will reimburse the balance to Party B.
Buildings and auxiliary facilities erected on the aforesaid land will be
retrieved by the government without compensation (to Party B).
If Party A's mistake causes Party B's delay of utilization of the land,
Party A shall be responsible for the relevant economic losses occurred
to Party B.
12. On top of the Transfer Fee, in accordance with regulations, every year
Party B shall also pay fee payable on land utilization. At the time when
this contract is signed, both Parties shall go through the registration
formalities of land utilization.
13. During the term of utilization of the said piece of land, in compliance
with the laws, rules and the relevant regulations of Shenzhen
Municipality and in accordance with the provisions of this contract,
Party B may transfer, lease or mortgage its right of utilization of the
land. Party B may also use its right of utilization of the land for
other commercial activities. Party B's legal rights and interests are
protected by laws. Party B is not allowed to damage the social and
public interests and benefits while developing, utilizing or operating
the transferred piece of land.
14. When the term of utilization of the land stated on this contract is due,
Party A may retrieve the right of utilization of the land without any
compensation. Party A will also take over the possession of the
buildings and auxiliary facilities erected on the said piece of land
without compensation. Party B undertakes to hand over to Party A on
April 25, 2049 the said piece of land, buildings, and auxiliary
facilities erected on the land without being compensated. Within 10 days
after the term is due, Party B should go through the formalities to
cancel the registration of right of real estate, otherwise Party A will
cancel it.
If Party B needs to continue to utilize the said piece of land, Party B
may apply for renewal six months before the term is due. Party A and
Party B shall again sign the contract for transfer the right of
utilization of land after confirming the new terms of transfer the right
of utilization of land, land Transfer Fee and other terms and
conditions. Party A shall pay the Transfer Fee and go through the
registration formalities of right of utilization of land.
15. "Land Utilization Rules" forms an integrated part of this contract. It
has equal legal binding as this contract. Party B must follow the "Land
Utilization Rules".
16. The establishment, validity, explanation, execution and arbitration of
this contract are under the jurisdiction of the laws of the People's
Republic of China.
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17. Any disputes during the execution of this contract shall be firstly
solved by negotiation. In failing to reach a compromise, the case can be
presented to arbitration organizations or the court.
18. This contract shall be effective from the date of signing.
19. This contract comprises of 15 copies, 3 copies for Party B, and the rest
of copies shall be for the custody of Party A and for distribution by
Party A to the relevant departments/units.
20. Any unclarified or unsettled matters in this contract can be confirmed
by signing agreements upon negotiations between Party A and Party B.
21. The aforesaid piece of land can not be used for commercial buildings.
22. Party B is solely responsible for the development of the said piece of
land, and making it form and support the city construction system and
transportation.
Party A: Shenzhen National Land Planning Bureau (seal)
Legal Representative:
Agent: (signature)
Party B: Namtai Electronic (Shenzhen) Co. Ltd. (seal)
Legal Representative: T. Murakami (signature)
Agent:
Sign Date: April 26, 1999
Sign Place: New Town, BaoAn