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EXHIBIT 10.51
LEASE AGREEMENT
BETWEEN
REAL ESTATE COMPANY OF CHINA MERCHANTS SHEKOU INDUSTRIAL ZONE
AND
FLEXTRONICS INTERNATIONAL
NO. A6 NANHAI BUILDING HAIBIN GARDEN SHEKOU
REF.: CL9508314
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Parties AN AGREEMENT made the Fifteenth day of August of the year One
Thousand Nine Hundred and Ninety-five between REAL ESTATE
COMPANY OF CHINA MERCHANTS SHEKOU INDUSTRIAL ZONE whose
registered office is situated at the fourth floor of Zhao
Shang Building, Zhao Shang Road, Shekou Industrial Zone,
Shenzhen, Guangdong Province, the People's Republic of China
(hereinafter called "the Landlord") of the one part, and
FLEXTRONICS INTERNATIONAL; (hereinafter called "the Tenant"),
whose registered office in the People's Republic of China is
situated at 5/F, Nan Shan Building Shekou, Shenzhen, Guangdong
Province, the People's Republic of China of the other part.
WHEREBY IT IS HEREBY AGREED AS FOLLOWS:
Premises 1. The landlord shall let and the Tenant shall take the
NO. A6 NANHAI BUILDING OF HAIBIN GARDEN (Subject to
the pink mark in Appendix 1), (hereinafter referred
to as "the said premises") situated in Shekou,
Shenzhen, Guangdong Province, P.R.C. The premises in
this agreement is decorated in accordance with
Appendix 2, will be turned over to the Tenant used
for residence. The gross construction area is 2,906
square foot. The term of the lease is ONE YEAR
commencing from the Commencement Date hereinafter
defined in Clause 3 hereof.
Rent 2. The monthly rent for the said premises for the said
term shall be Hong Kong Dollars Thirty Thousand Only
(HKD30,000.00) which sum(s) shall be inclusive of all
kinds assessed against the building, and insurance on
the building structure, Which said sum(s) shall be
payable in advance on the first day of each and every
calendar month without deduction whatsoever. The rent
shall be paid in Hong Kong Dollar by check or
banker's draft or direct bank transfer payable to
Landlord's account with China Bank, Shekou Branch,
account No. 0111030009661.
Period 3. The term of the Lease shall be ONE YEAR, COMMENCING
ON SEPTEMBER 1, 1995, EXPIRING ON AUGUST 31, 1996,
both days inclusive.
During the term of the lease, the Tenant shall
submitted a written notice to the Landlord one month
in advance, if he desire to early terminate the lease
agreement. In the event that the lease is terminated
during the lease term, the Tenant shall pay in full
the rent for the remaining days within the lease
period.
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If leasing is to be continued after the term
of lease expires, the submission of one month prior
notice shall also be required and a new lease shall
be signed. Then the landlord shall have the right to
terminate the lease or adjust the rental and other
terms and conditions by both parties negotiation.
Deposits 4. Upon executed this agreement, the Tenant shall
deposit an amount of HKD60,000.00 to the Landlord's
account as a deposit for this agreement. This deposit
shall serve as security for the due performance and
observance of the agreements on the part of the
Tenant herein contained. At the expiration or sooner
determination of this Agreement if the Tenant shall
have paid all rent and other sums due thereunder and
if there shall be no breach of any of the agreements
on the Tenant's part to be observed and performed the
Landlord will refund the tenant the said deposit
within thirty (30) days after delivery of vacant
possession of the said premises to the Landlord and
upon settlement of all outstanding payments by the
Tenant but without any interest thereon.
5. THE TENANT AGREES WITH THE LANDLORD as follows:
Rent (a) To pay the rent herein reserved in manner
aforesaid and other charges due thereunder
in manner hereinafter mentioned.
Telephone/ (b) To pay and discharge punctually during the
telex utilities said term all charges for
and other water/electricity/telephone calls/telex
charges rental and other outgoing now or at any time
hereafter consumed by the Tenant and
chargeable in respect of the said premises
which are not included in the rent as set
specified above, and to make all reasonable
and necessary deposits.
Good repair (c) To constantly keep the whole of the interior
of interior of said premises and every part thereof in
proper and tenantable repair and condition
including, but not limited to, all doors,
windows, skylights, locks, hinges, bolts,
floors, partitions and walls, and all the
Landlord's installation fixtures, fittings
and furniture therein at the Tenant's
expense (fair wear and tear excepted).
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Indemnity (d) To be wholly responsible for any damage or injury
against caused to any other person or property directly or
damage/ indirectly through the defective or damaged condition
injury of any part of the interior of the said premises
caused by the negligence of the Tenant and to make
good the same by payment or otherwise and to
indemnify the Landlord against all claims demands
actions and legal proceedings made upon the Landlord
by any person in respect thereof.
Inspection by (e) To permit the Landlord and all persons authorized by
the Landlord him at all reasonable times by prior appointment (and
in case of emergency which may cause severe damage to
the said premises the Landlord or his agents may
enter without notice and forcibly if need be) to
enter into the said premises to view the condition of
the said premises and to carry out routine
maintenance service and to give or leave notice in
writing upon the said premises informing the Tenant
of any proposed work intended to be carried out by
the Landlord.
Pipes and (f) To permit the Landlord to erect use and maintain
conduits pipes and conduits in and through the said premises
in a manner not to interfere with the quiet enjoyment
by the Tenant of the said premises. The Landlord of
[sic] his agents shall have the right to enter the
said premises through prior appointment at reasonable
times by prior appointment to examine the same.
Illegal or (g) Not to use the said premises or any part thereof for
immoral any illegal or immoral purpose.
purpose
User (h) To use the said premises for the purpose of a private
residence only.
Alterations (i) Not to make or permit to be made any alterations in
and additions or additions to the electrical installation or other
Landlord's fixtures or cut or damage or suffer to be
cut or damaged any doors windows walls structural
members or other fabric thereof without having first
obtained the written license and consent of the
Landlord therefor (such consent not to be
unreasonably withheld). In particular, any such
alterations or additions so approved shall be carried
out only by such person or contractor as shall be
approved by the Landlord, such approval not to be
unreasonably withheld. The Tenant shall be liable for
any defects (and any direct damages arising from such
defects) resulting from such alterations or additions
and the Tenant shall
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remedy the said defects within reasonable time. In
the event that the Tenant requires addition or
improvement in the furniture, it shall be at the
Tenant's expense.
Assigning (j) Not to sub-lease or release or assign or transfer the
and benefit of this lease agreement; provided however,
underletting that the Tenant shall be free to change, or
substitute the occupants of the said premises so long
as they are the Tenant's workers, employees,
consultants and their families.
Breach of (k) Not to do or permit to be done any act or thing(s)
insurance (such as, but not limited to, to use electric
policy equipment overloading, over voltage, electric line
contact, leakage of electricity, short circuiting, to
store any material by its natural heating,
spontaneous combustion, heating or drying) whereby
the policy or policies of insurance on the said
premises against damage by fire or against claims by
Third Parties for the time being subsisting may
become void or voidable or whereby the rate of
premium or premiums thereon may be increased and to
repay the Landlord on demand all sums paid by the
Landlord by way of increased premium or premiums
thereon and all expenses incurred by the Landlord in
and about any renewal of such policy or policies
rendered necessary by a breach of this clause.
Obstructions (l) Not to encumber or obstruct or permit to be
in common encumbered or obstructed with any boxes, packaging or
areas other obstruction of any kind or nature any of the
entrances, staircases, landings, passages, lifts,
lobbies or other parts of the said building in common
use and not to leave rubbish or any other article or
thing in any part of the said building not in the
exclusive occupation of the Tenant.
Delivery of (m) At the expiration or sooner termination of this
possession Agreement, the Tenant shall go through release
procedure and return the premises to the Landlord.
Within three days prior to termination of lease, the
Tenant shall check and count to see if the interior
equipment and furniture is complete and in good
condition, and compile a register to delivery such
equipment and furniture to the Management Office
authorized by the Landlord for inspection and
acceptance. Any damage caused by the Tenant's
improper use or negligence shall be compensated for
on the basis of the original cost. All of the
Tenant's personal property shall be removed prior to
the delivery of the premises. The tenant shall
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have no right to delay the termination of this Lease
Agreement or to hinder the Landlord in leasing the
premises to another tenant.
6. THE LANDLORD AGREES WITH THE TENANT as follows:
Quiet (a) To permit the Tenant (duly paying the rent
enjoyment and other payments and observing and
performing the terms and conditions herein
contained) to have quiet possession and
enjoyment of the said premises during the
said term without interruption by the
Landlord and free from any claims against
the Landlord or anyone lawfully claiming
under or through or trust [sic] for the
Landlord save as specifically provided
herein.
Roof and (b) To amend and repair such defects in the roof
main main electricity supply cables main drain
structures pipes main walls and exterior window frames
furniture and interior of equipment and furniture of
the said premises therein as the Landlord
shall discover or as the Tenant or other
authorized person or Authority shall by
notice in writing bring to the attention of
the Landlord and to maintain the same in a
proper state of repair and condition at the
cost of the Landlord provided that the
Landlord shall be entitled to be given a
reasonable period of time wherein to view
any such defects and to amend and repair the
same provided further that the Landlord
shall neither be liable to pay compensation
to the Tenant in respect of any reasonable
period during which due to circumstances
beyond the control of the Landlord.
Maintenance (c) The Shekou Industrial Zone Property
Management Company is authorized to be
responsible for the maintenance and
management of the common parts of the said
Building.
7. IT IS HEREBY EXPRESSLY PROVIDED as follow:
Default (a) If the rent hereby reserved or any part
thereof or any other payments thereunder
shall be in arrears for fifteen days
(whether the same shall have been formally
demanded or not) or in the case of the
breach or non-performance of any of the
stipulations and agreements by the Tenant
hereinbefore contained (after 15 days'
written notice to remedy the same has
expired other than non-payment of rent in
which case no written notice is required) or
if the Tenant shall go into liquidation or
shall have any order made or resolution
passed for its winding up and the same is
not dismissed within a period of sixty (60)
days or shall enter into any composition or
arrangements with its
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creditors it shall be lawful for the Landlord at any
time thereafter to re-enter upon the said premises or
any part thereof in the name of the whole and
thereupon this Agreement shall absolutely determine
but without prejudice to any rights which may have
accrued to the Landlord by reason of any antecedent
breach of any of the obligations on the part of the
Tenant hereinbefore contained AND a written notice
served by the Landlord on the Tenant or left at the
said premises to the effect that the Landlord thereby
exercises the power of reentry shall be a full and
sufficient exercise of such power without actual
entry on the part of the Landlord. The Landlord may
set off against the deposit thereunder its actual
damages sustained as a direct consequence of any of
the events stipulated in the Clause 7(a) which
entitle the Landlord to re-enter the premises and
terminate this Agreement.
Abatement of (b) In case the said premises or any part thereof shall
rent at any time during the said term be destroyed or
damaged by flood, terminate lease fire, typhoon,
earthquake, landslide, termites, Act of God or
subsidence or any cause for which the Tenant shall
not be responsible so as to render the said premises
unfit for use of [sic] occupation the rent hereby
reserved or a fair proportion thereof according to
the nature and extent of the damage sustained shall
be suspended until the said premises shall again be
rendered fit for use provided Always that the
Landlord shall not be required to repair or reinstate
the said premises or any part thereof so destroyed or
damaged if by reason of the condition of the said
premises or any local regulations or other
circumstances beyond the control of the Landlord it
is not practicable or reasonable so to do or in such
circumstances, the Tenant shall be entitled, at his
option, to terminate this Agreement without any
further obligation hereunder or to receive from the
landlord a waiver or an abatement of rent in respect
thereof, but it shall not be entitled to claim
damages from the Landlord.
Interest on (c) Without prejudice to the Landlord's rights under
arrears of Clause 7(a) hereof, the Tenant shall pay interest on
rent all arrears of rent/electricity/water and other
charges due under this Agreement at a rate of 0.5%
per day from the due date to the date of payment.
Acts of (d) Any act default or omission of the agent, servant or
agents, visitor of the Tenant shall be deemed to be the act
servants, etc. default or omission of the Tenant.
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Liability and (e) The Landlord shall not be under any liability to the
indemnity Tenant or to any other person whosoever in respect of
any loss or damage to person or property sustained by
the Tenant or any such other person caused by or
through or in any way owing to the overflow of water
or the escape of fumes smoke fire or any other
substance or thing originating from anywhere within
the said premises unless such loss, damage or injury
is caused by the negligence or default of the
Landlord or its servants, agents or licensees. The
Tenant shall fully and effectually indemnify the
Landlord from and against all claims and demands made
against the Landlord by any person in respect of any
loss damage or injury caused by or through or in any
way owing to the overflow of water or the escape of
fumes smoke fire or any other substance or thing
originating from the said premises (unless such loss,
damage or injury is caused by the negligence or
default of the Landlord or its servants, agents or
licensees) or to the negligence or default of the
Tenant his servants, agents or licensees or to the
defective or damaged condition of the interior of
said premises or any fixtures or fittings the repair
for which the Tenant is responsible hereunder and
against all costs and expenses incurred by the
Landlord in respect of any such claim or demand.
Adjustment (f) If any time during the said term the charges for
of charges water/electricity and telephone calls shall in each
case be increased by the relevant authorities in
Shekou, the Landlord shall be entitled to serve a
notice in writing upon the Tenant increasing the
charges of the said utility by a similar amount and
the Tenant shall from the date specified in the said
notice pay such increased charges as therein
provided.
Reservations (g) The Landlord reserves the right exercisable at any
of Rights time or times to make or caused to be made any
structural or non-structural alteration or
improvement in or addition to entrances landings
staircases or any part of the said building in common
use;
without incurring any liability to make any payment
of the Tenant on any account whatsoever except to the
extent such alterations or improvements substantially
impair Tenant's access to and use of the premises. In
the happening of such alternation [sic] or
improvement hereof the Landlord shall give to the
Tenant not less than three months' notice in writing
of any such change.
Notices (h) Any notice under this Agreement shall be in writing
and any bill statement or notice information writ
statement or claim or any other legal proceeding to
the Tenant shall be sufficiently served if
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left addressed to him/it at the said premises or any part thereof
or sent to him/it or left at his/its last known address in
China/overseas and any notice to the Landlord shall be sufficiently
served if delivered to its registered address or sent to its
registered address in China by registered post or delivered to its
last known business address in China.
Applicable 8. This Agreement shall be governed by and construed in
law and all aspects in accordance with the laws of the
arbitration People's Republic of China. Any dispute under of
[sic] arising out of this Agreement shall be referred
to a single arbitrator mutually agreed and appointed
in accordance with the laws or provisions of the
People's Republic of China relating to arbitration
for the time being in force.
Gender It is hereby declared that (if the context permits or
requires) the singular number shall include the plural and the
masculine gender shall include the feminine and the neuter and
vice versa.
Marginal The marginal notes are inserted for convenience only and shall
Notes be ignored in the interpretation of this Agreement.
WITNESS WHEREOF, the parties have caused the foregoing Agreement to be executed
in their names, the day and year first above written.
LANDLORD TENANT
REAL ESTATE COMPANY OF FLEXTRONICS INTERNATIONAL
CHINA MERCHANTS
SHEKOU INDUSTRIAL ZONE
Representative:_____________________ Representative:_____________________
Date: 95 8 24 Date: August 24, 1995