Document:

Exhibit 10.17

 

GUARANTEE

 

by

 

MURRAY INTERNATIONAL METALS PTE. LIMITED

 

in favour of

 

STEELS (UK) QRS 16-58, INC

 

of the obligations of

 

MURRAY INTERNATIONAL

METALS LIMITED

 

in relation to

 

Lease of Premises at Newbridge,

Midlothian, Scotland

 

 

GUARANTEE by

 

MURRAY INTERNATIONAL METALS PTE. LIMITED
(Company No. 200201097M) and having its Registered Office at 31 Tuas View
Close, Singapore 637469 (herein called the Guarantor)

 

in favour of

 

STEELS (UK) QRS 16-58, INC., a Company
incorporated under the laws of the State of Delaware and having an address care
of W P Carey & Co LLC, 50 Rockefeller Plaza, Second Floor, New York, New
York 10020, USA (who, and, where the context so requires or admits, their
successors as landlord under the Lease aftermentioned are herein called the
Landlord)

 

of the obligations of

 

MURRAY IN1ERNATIONAL METALS LIMITED (Company
No. 1241058) and having its Registered Office at 95 High Street, Edgeware,
Middlesex HA8 7BD (together with its successors as tenant under the Lease
aftermentioned herein called the Tenant)

 

in relation to

 

the Tenant’s obligations under the Lease of
office premises and two warehouses at Newbridge Industrial Estate, Midlothian,
Scotland.

 

1.             The Guarantor MURRAY INTERNATIONAL METALS
PTE. LIMITED (Company No.200201097M) HEREBY UNDERTAKES to the Landlord, (STEELS
(UK) QRS 16-58, INC., a Company incorporated under the laws of the State of
Delaware and having an address care of W P Carey & Co LLC, 50 Rockefeller
Plaza, Second Floor, New York, New York 10020, USA and its successors as
landlord under the Lease aftermentioned) as guarantor, cautioner, co-obligant
and principal debtor that the Tenant (MURRAY INTERNATIONAL METALS LIMITED
(Company No. 1241058) having its Registered Office at 95 High Street, Edgeware,
Middlesex HA8 7BD and its successors as Tenant under the said Lease) will
observe and perform the obligations and conditions whatsoever (present and
future) undertaken by or binding on the Tenant directly or indirectly under or
by virtue of the Lease between the Landlord and the Tenant dated 16 December
2005 (which Lease, as the same may be or may hereafter be amended or
supplemented by agreement between the Landlord and the Tenant is herein called
the Lease) relative to office premises and two warehouses (all with associated
land and rights) at Newbridge Industrial Estate, Midlothian and that if the
Tenant shall make any default in observing and performing the said obligations
and conditions or any of them, then and in every such case the Guarantor will
pay and make good to the Landlord on demand anything whatsoever which ought to
be or have been paid, observed or performed as aforesaid as well as all
damages, losses, and costs properly sustained by the Landlord through the
default of the Tenant or the Guarantor PROVIDED ALWAYS that any neglect, delay
or forbearance of the Landlord in enforcing observance of the Tenant’s
obligations against the Tenant or the Guarantor or against any other guarantors
of the Tenant’s obligations or the unenforceability of the obligations of the
Tenant or any other guarantor (or the Tenant or any other such guarantor acting
outwith their respective powers either in the entering into of the Lease or of
the relevant Guarantee) or the giving of time by the Landlord to in relation
thereto or any other act, matter or thing whereby, (but for this provision) the
Guarantor would be exonerated either in whole or in part from its obligations
to the Landlord (other than a discharge of the Guarantor’s obligations executed
by

 

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the Landlord in writing) shall not release or
in any way lessen or affect the liability of the Guarantor hereunder.

 

2.             This Guarantee will apply not only to the
obligations of the Tenant under the Lease but also to the obligations arising
under any variation of the Lease executed by the Tenant and the Guarantor
agrees, if requested (but without prejudice to the Guarantor’s obligations in
the event that no such request is made), to be a party to any such variation as
consentor.

 

3.             The Guarantor HEREBY FURTHER UNDERTAKES
with the Landlord that if:-

 

(a)           The Tenant shall go into liquidation or
administration or receivership and the Liquidator or Administrator or Receiver
shall disclaim the Lease either expressly or by reason of failing to provide to
the Landlord the personal undertaking required by Clause 13.1.2 of the Lease
within the fourteen day period referred to in that Clause; or

 

(b)           The Tenant shall be wound up or cease to
exist; or

 

(c)           an event shall occur which shall entitle the
Landlord to irritate the Lease following due notice;

 

then, at the option of the Landlord, the
Guarantor will:-

 

(i)            procure that the Tenant renounces its right
to the Lease; and

 

(ii)           accept a new lease of the property leased by
the Lease for a period equal to the remainder (which if there had been no
disclaimer or if the Lease had continued to have had effect as aforesaid would
have remained) of the period of the Lease at the same rent and subject to the like
obligations and conditions as are, provided for and contained in the
Lease (subject to any variation which may then have occurred and to the
provisions for further review of the rental provided for in the Lease); which
new lease will take effect as from the date of the said disclaimer or entitlement
to irritate; and

 

(iii)          pay all costs properly and reasonably
incurred by the Landlord in connection with the grant of the new lease and the
renunciation.

 

(and the Guarantor will continue, whether or
not such option is exercised and notwithstanding such renunciation, to be
responsible for all outstanding obligations and conditions in respect of the
Lease so renounced in respect of the period up to the date of commencement of
the new Lease and for all damages and others referred to in Condition 1 of this
Guarantee).

 

4.             Nothing herein contained shall prevent the
Landlord from exercising its rights in full under the Lease relative to any
default by the Tenant and nothing herein contained will grant to the Guarantor
any right of occupancy or other right to the leased subjects other than
pursuant to a request by the Landlord under Condition 3 of this Guarantee.

 

5.             The Guarantor in so far as it is not or
may in the future not be subject to the jurisdiction of the Scottish Courts and
the English Courts hereby prorogates and binds itself to submit to the non
exclusive jurisdiction of both the Scottish Courts and the English Courts in
relation to all actions at the instance of the Landlord arising out of or in
connection with the Lease and this Guarantee and also in relation to all lawful
execution which may follow as a result of the registration of the Lease and/or
this Guarantee for execution and accepts that the choice of jurisdiction
(Scotland or England) in which to bring or defend any proceedings or

 

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to take any enforcement steps shall in
relation to each of such proceedings (and without prejudice to the use of the
other jurisdiction for other proceedings or steps) be at the discretion of the
Landlord.

 

6.             The Landlord shall have the right to
assign this Guarantee to its successors as landlords under the Lease.

 

7.             The Guarantor accepts that it shall not be
entitled to rank in the liquidation, bankruptcy or receivership of the Tenant
in respect of any payment made by it under the Lease, the new Lease or this
Guarantee nor to have any benefits of any securities held by the Landlord or of
any payments dividends or composition which the Landlord may receive until the
whole claims of the Landlord against the Tenant are satisfied.

 

8.             The Guarantor hereby waives any right to
require the Landlord to a proceed first (or at all) against the Tenant or any
of its assets or against any other Guarantor or any of its assets and neither
the non-exercise of nor any delay in exercising on the part of the Landlord any
right power or privilege shall operate as a waiver of this Guarantee nor shall
any single or partial exercise of any right power or privilege preclude the
further exercise of such right or any other right power or privilege.

 

9.             The Guarantor shall, within seven days of
demand, pay to the Landlord the amount of all costs and expenses (including
legal fees) properly incurred by the Landlord in connection with the
enforcement of, or the preservation of any rights under, this Guarantee.

 

10.           All amounts payable to the Landlord are
payable in Sterling or, on that ceasing to be the lawful currrency in Scotland,
in the lawful currency which replaces it. If, for the purpose of obtaining in
any judgment in any court, it is necessary to convert into lawful currency of
Singapore (herein called Singapore Dollars) a sum due hereunder in Sterling or
the lawful currency of Scotland, the rate of exchange used shall be that at
which in accordance with normal banking procedures, the Landlord could purchase
Sterling or the lawful currency of Scotland with Singapore Dollars at the spot
exchange rate available in New York, New York (USA) on the business day on
which a final judgment is given. The obligation of the Guarantor in respect of
any such sum due hereunder shall, notwithstanding any judgment in Singapore
Dollars, be discharged only to the extent that on the business day following
receipt by the Landlord of any sum adjudged to be so due in Singapore Dollars
at the spot exchange rate available in New York, New York (USA), the Landlord
may, in accordance with normal banking procedures, purchase Sterling or the
lawful currency of Scotland with Singapore Dollars; if the Sterling or the
lawful currency of Scotland so purchased are less than the sum originally due
in Sterling or the lawful currency of Scotland, the Guarantor agrees, as a
separate obligation and notwithstanding any such judgment, to indemnify the
Landlord against such loss and if Sterling or the lawful currency of Scotland
so purchased exceeds the sum originally due to the Landlord in Sterling or the
lawful currency of Scotland, the Landlord agrees to remit such excess to the
Guarantor or its assigns.

 

11.           The Guarantor makes (as at the date of this
Guarantee only) the warranties set out in this Clause 11 to the Landlord.

 

11.1         (a)           It is a company, duly
incorporated and validly existing under the law of its jurisdiction of
incorporation.

 

(b)           It has the power to own its assets and carry
on its business as it is being

 

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conducted.

 

11.2         Subject to any general principles of law
limiting its obligations and referred to in any legal opinion issued on behalf
of the Guarantor with respect to this Guarantee on the date hereof, the
obligations expressed to be assumed by it in this Guarantee are legal, valid,
binding and enforceable obligations.

 

11.3         Subject to any general principles of law
limiting its obligations and referred to in any legal opinion issued on behalf
of the Guarantor with respect to this Guarantee on the date hereof, the entry
into and performance by it of this Guarantee do not and will not conflict with:

 

(a)           any law or regulation applicable to it;

 

(b)           its constitutional documents; or

 

(c)           the Indenture executed by and between the
Tenant, Pipe Acquisition Limited and The Bank of New York, as trustee, dated 16
December, 2005 and the Supplemental Indenture to be entered into by the
Guarantor in favour of The Bank of New York under which the Guarantor agrees to
be bound by the terms, conditions and other provisions of the Indenture with
all attendant rights, duties and obligations stated therein.

 

11.4         It has the power to enter into, perform and
deliver, and has taken all necessary action to authorise its entry into, performance
and delivery of this Guarantee.

 

11.5         All authorisations, consents, approvals,
resolutions, licences, exemptions, filings, notarisations and registrations
required:

 

(a)           to enable it lawfully to enter into,
exercise its rights and comply with its obligations in this Guarantee; and

 

(b)           to make this Guarantee admissible in
evidence in its jurisdiction of incorporation,

 

have been obtained or effected and are in
full force and effect.

 

11.6         Its payment obligations under this Guarantee
rank at least pari passu with the claims of all its other unsecured and
unsubordinated creditors, except for obligations mandatorily preferred by law
applying to companies generally.

 

11.7         Subject to any general principles of law
limiting its obligations and referred to in any legal opinion issued on behalf
of the Guarantor with respect to this Guarantee on the date hereof:

 

(a)           the choice of Scottish law as the governing
law of this Guarantee will be recognised and enforced in its jurisdiction of
incorporation.

 

(b)           any judgment obtained in Scotland or England
in relation to this Guarantee will be recognised and enforced in its
jurisdiction of incorporation.

 

12.           The Guarantor shall supply to the Landlord
all documents required to be supplied by the Tenant and the Guarantor pursuant
to Clause 2 of Part 5 of the Schedule to the Lease.

 

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13.           (a)           The
Guarantor shall make all payments to be made by it without any deduction,
withholding or set off whatsoever for or on account of any present and future
taxes levies imposts duties fees charges or withholdings of whatever nature and
wherever levied charged or assessed, together with any interest thereon and any
fines surcharge or penalties in respect thereof (herein called a Tax Deduction),
unless a Tax Deduction is required by law.

 

(b)           The Guarantor shall promptly upon becoming
aware that it must make a Tax Deduction (or that there is any change in the
rate or the basis of a Tax Deduction) notify the Landlord accordingly. Similarly
the Landlord shall notify the Guarantor on becoming so aware in respect of a
payment payable to it.

 

(c)           If a Tax Deduction is required by law to be
made by the Guarantor, the amount of the payment due from the Guarantor shall
be increased to an amount which, after making any Tax Deduction) leaves an
amount equal to the payment which would have become due if no Tax Deduction had
been required. PROVIDED THAT the Guarantor shall not be liable to pay any such
increase to the extent to which the Tax Deduction in question arises by reason
of the Landlord’s failure in (a) completion of procedural formalities necessary
to achieve the ability for non-resident Landlords to receive rents gross of
deduction of tax at source under a scheme then capable of allowing the Landlord
to achieve that on completion of such formalities (including, for the avoidance
of doubt, an application to HM Revenue & Customs for a certificate that the
Landlord may receive rents gross of deduction at source) or (b) the provision
to the Tenant and/or the Guarantor of a certificate or other suitable evidence
that these formalities have been completed in reasonable time before the
payment was required to be made under this Guarantee.

 

(d)           If the Guarantor is required to make a Tax
Deduction, it shall make that Tax Deduction and any payment required in
connection with that Tax Deduction within the time allowed and in the minimum
amount required by law.

 

(e)           Within thirty days of making either a Tax
Deduction or any payment required in connection with that Tax Deduction, the
Guarantor shall deliver to the Landlord evidence that the Tax Deduction has
been made or (as applicable) any appropriate payment paid to the relevant
taxing authority.

 

14.           The Guarantor shall not, in a single
transaction or series of transactions (including any merger or consolidation),
sell or convey, transfer or lease all or substantially all of its assets
(excluding (a) the disposal of stock or cash on an arm’s length basis in the
ordinary course of trading, (b) disposals of obsolete or redundant assets which
are no longer required for the business of the Guarantor, (c) disposals of
assets (other than any shares, heritable or leased properties in Scotland or
any trade or business) in exchange for replacement assets comparable or
superior as to type, value and quality) (herein called a Guarantor Asset
Transfer) to any Person (as such term is defined in the Lease) unless this
Guarantee is assigned to and assumed by such Person as a part of such Guarantor
Asset Transfer, including all the obligations of the Guarantor hereunder,
actual or contingent, and which may have arisen on or prior to the date of such
assignation by a written instrument delivered to Landlord at the time of such
Guarantor Asset Transfer. Upon any such assignation and assumption by any
Person as a part of such Guarantor Asset Transfer in accordance with the
foregoing sentence, the Guarantor hereunder shall, on the date of such assignation
and assumption, be discharged from all liability under this Guarantee, but
entirely without prejudice to the Landlord’s right and any assignee’s
obligations hereunder, including those assumed by virtue of the instrument
specified in this clause 14. Notwithstanding the foregoing, if in connection
with such

 

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Guarantor Asset Transfer other than to a
member of the Guarantor’s Group (i) immediately after such transaction or
transactions, taken in the aggregate, the Tenant has on a consolidated basis
(or would, on a consolidated pro forma basis, have) for the Applicable Period
(x) a Fixed Charge Coverage Ratio of parties by not less than 10 days’ notice.
All notices or communications under or in connection with this Agreement shall
be in English.

 

17.           This Guarantee shall be governed by and
construed and enforced in accordance with the laws of Scotland

 

[REMAINDER OF
PAGE INTENTIONALLY LEFT BLANK.]

 

18.           The Guarantor consents to registration of
this Guarantee for preservation and execution.

 

	
  IN WITNESS WHEREOF

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  The Common Seal of MURRAY

  	
  )

  	
   

  	
   

  
	
  INTERNATIONAL METALS PTE.

  	
  )

  	
   

  	
   

  
	
  LIMITED was hereunto affixed
  in the

  	
  )

  	
   

  	
   

  
	
  presence of

  	
  ),

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  	
   

  	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title: Director

  	
   

  	
  Title: Director/Secretary

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ACKNOWLEDGED AND AGREED TO
  WITH RESPECT TO CLAUSE 14 ABOVE:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  MURRAY INTERNATIONAL METALS
  LIMITED

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  incorporated under the
  Companies Acts

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  with Company Number 1241058

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
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  Title:

  	
   

  	
   

  	
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6Exhibit 10.18

 

Dated
this 21st day of February 2004

 

 

TUAS HI-TECH PARK PTE LTD

(hereinafter
called “the Vendor”)

....of the one part

 

 

And

 

 

MURRAY INTERNATIONAL METALS PTE. LTD

(hereinafter
called “the Purchaser”)

....of
the other part

 

 

****************************************

 

SALE AND PURCHASE
AGREEMENT

 

****************************************

 

 

THIS AGREEMENT
is made the 21st day of February 2004 between:

 

I                                            TUAS HI-TECH PARK PTE LTD, a company incorporated in the Republic of
Singapore and having its registered office at No. 14 Scotts Road #06-01 Far
East Plaza Singapore 228213 (hereinafter
referred to as “the
Vendor’°) of the one part and

 

II                                        MURRAY INTERNATIONAL METALS
PTE. LTD, a company
incorporated In the Republic of Singapore and having its registered office
at No. 438 Alexandra Road
#04-01 Alexandra Point Singapore
119958 (hereinafter referred to as “the Purchaser”) of the other part.

 

WHEREAS:-

 

A                                      By the Budding Agreement (defined
hereinafter):

 

(a)                                  the Lessor agreed to grant to the Vendor a
lease for the industrial estate (defined hereinafter) for a term of sixty (60)
years commencing from 9 July 1996.

 

(b)                                 in consideration of the Lessor’s said
agreement, inter alia, the Vendor agreed at the Vendor’s own costs and expenses
to build on the industrial estate a substantial building or buildings for
General/Light Industrial development in accordance with the terms and
conditions set out in the Building Agreement;

 

(c)                                  the Lessor agreed that as an exception to the
Vendor’s obligation referred to in Recital A(b), the Vendor may sec certain
portions of the industrial estate in whole or in part in its vacant or
undeveloped state provided that certain conditions set out in the Building
Agreement are complied with and observed and subject to such terms and conditions
that may be imposed by the relevant Authority, including the condition that
notwithstanding the sale of any portion of the Industrial estate in its vacant
or undeveloped state it will remain the liability of the Vendor to the Lessor
to ensure that the purchaser duly develops
a building for General Industrial
development thereon and obtains Temporary Occupation Permit and Certificate of Statutory Completion for the building
within a certain time frame and the requirement that the purchaser shall develop the subdivided plot at such permissible
gross plot ratio. A related condition is that a purchaser of vacant land
must not sell the land in its vacant or undeveloped state.

 

B                                        The Vendor has agreed to sell and the
Purchaser has agreed to purchase, upon the terms and conditions hereinafter set out, the residue of the leasehold estate of a term of 60 years commencing 9 July 1996 in the Property (defined hereinafter), being one of
building plots comprised in the industrial estate, in its vacant and undeveloped
state for the purpose of constructing and building thereon by and at the
Purchaser’s own cost and expense a detached factory budding in accordance with
the terms and conditions set out in this Agreement.

 

NOW IT IS HEREBY AGREED by and between the parties hereto as follows:-

 

1                                         DEFINITIONS AND
INTERPRETATION

 

1.1           In
this Agreement, unless the context otherwise requires:

 

(a)                                  “Building Agreement” means the Building
Agreement dated 9 July 1996 made between the Lessor and the Vendor, as from
time to time amended, modified or supplemented, and shall be deemed to include
Lease No: 22205,
the Technical Conditions of Tender and the annexures, schedules
and attachments to all of the said documents;

 

(b)                                 “completion” means the completion of the sale
and purchase of the Property;

 

(c)                                  “Completion Date” means the date within
fourteen (14) days from the date of receipt by the Purchaser or its solicitors
of the Notice to Complete of the Vendor or of its Solicitors;

 

(d)                                 “Completion Notice” means the notice in writing to
complete within fourteen (14) days after
the day of receipt of. notice given by the Vendor or its solicitors to the Purchaser or its solicitors;

 

1

 

(e)                                  “CSC” means the certificate of statutory
completion issued under the Building Control Act;

 

(f)                                    “Dollars” refers to the legal currency of the
Republic of Singapore;

 

(g)                                 “goods and services tax” refers to the goods
and services tax charged pursuant to the Goods and Services Tax Act or such
similar tax or duty charged by law;

 

(h)                                 “industrial estate” means a parcel of land
known as Lot 2900X of Mukim 7;

 

(i)                                     “Lessor” means the President of the Republic of Singapore and
his successors-in-title in office;

 

(j)                                     “Property” means the portion of the
industrial estate more particularly described in the First Schedule;

 

(k)                                  “Purchase Price” means the purchase price of
the Property;

 

(l)                                     “Purchase Price Rate” means the rate for each
square metre of the Property and shall be the amount obtained by dividing the
Purchase Price with the Scheduled Area and rounded off to two decimal places;

 

(m)                               “Purchaser” means Murray International Metals Pte. Limited and shall
include their successors-in-title and assigns;

 

(n)                                 “Purchaser’s Development” means the
development to be built by the Purchaser on the Property;

 

(o)                                 “Resurveyed Area” means the area of the
Property as ascertained by the Government survey or resurvey;

 

(p)                                 “Scheduled Area” means the area of the
Property as set out in the First Schedule;

 

(q)                                 “Site Plan” means the plan referred to in the
First Schedule and annexed hereto;

 

(r)                                    “Termination Notice” means the notice in
writing of not less than twenty-one (21) days;

 

(s)                                  “TOP” means
the temporary occupation permit issued under the Building Control Act;

 

(t)                                    “URA” means Government and/or Urban
Redevelopment Authority;

 

(u)                                 “Vendor” Means Tuas Hi-Tech Park Pte Ltd and
shall include their successors-in-title and assigns;

 

2              SALE AND PURCHASE

 

2.1                                 Subject
to the prior written approval of the Lessor and the Competent Authority, the
Vendor shall sell and the Purchaser shall
purchase free from encumbrances
all that the residue of the leasehold
estate of a term of sixty (60) years commencing from the 9 July 1996 in the
Property being six of the building plots comprised in the industrial estate,
subject to the terms and conditions hereinafter contained and also subject to
the general conditions of sale known as “The Singapore Law Society’s Conditions
of Sale 1999” so far as the same are applicable to a sale by private treaty and
are not varied by or inconsistent with the terms and conditions herein contained. The Vendor hereby undertakes to observe, perform and comply with all terms and conditions
that may be imposed on it by the Lessor or the competent authority in granting
their approval to the sale and purchase of the Property save for those terms
and conditions imposed that have been assigned and/or delegated to the
Purchaser by the provisions of this Agreement or which can only be carried out
by the Purchaser vis-à-vis the Property.

 

2.2                                 The Site Plan
indicates the present proposed layout of the industrial estate and of the
Property. Ingress and egress to the Property shall be taken via the path marked
“X” on the Site Plan, which path shall be constructed at the cost and expense
of the Vendor in good time to enable the Purchaser to, at the Purchaser’s
option, apply for TOP on or before 30 April 2005. However, during the time of
development of the Property, the said path shall be a single width gravel road
approximately six (6) metres
wide for temporary ingress and
egress.

 

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The Vendor hereby warrants that the said path will
be completed on or before the date of delivery of vacant possession of the
Property. The Vendor hereby undertakes to ensure that the path marked “X” at
all times remain unobstructed, except where the same has been vested in the
State and/or when the obstruction is caused by the Purchasers’
contractors, workmen and agents.

 

2.3                                 The Vendor
will on or before 30 April
2005 at its own cost and expense plan and construct all
infrastructure within the industrial estate such as roads, drains and other
services necessary for the whole of the industrial estate in accordance with
the requirements of the Lessor and all relevant Competent Authorities to the
extent that the Purchaser may not be prevented from obtaining the TOP for the
Property. Further, the Vendor will, at its own cost and expense, plan and
construct or procure the planning and construction of all sewerage services
and, water services, to the boundary of
the Property. In respect of.
the power cables. the Vendor
shall reimburse on a full indemnity basis the Purchaser for the Purchaser’s
costs, in laying such power cables as are sufficient to transmit 700 amps of
electricity from the 22 KV substation to the
proposed substation that will be built by the Purchaser on the Property. The Vendor
may at the Vendor’s cost and expense amend the proposed layout of
the industrial estate and of any infrastructure
thereto, including but not
limited to roads, road reserves,
sewerage and water drains, drainage reserves or electrical substations,
in the following situations:

 

(a)                                  as the Vendor In its sole and absolute
discretion deems fit and the Purchaser shall not object thereto provided that
the Purchaser’s ingress and egress to the Property via the path marked “X”
on the Site Plan is unchanged and unobstructed at all times, except
where the same has been vested in the State and/ or when the obstruction is caused by the Purchasers’
contractors, workmen and agents and the infrastructure (including but
not limited to roads, road reserves, sewerage and water drains, drainage
reserves or electrical substations of the building(s)) constructed on the
Property is not affected nor the business or activities carried on in the said
building(s) disrupted; or .

 

(b)                                 as may be required by any competent authority
at any time and the Purchaser shall not object thereto provided that the
Purchaser receives a written notice from the Vendor informing the Purchaser of such
requirement and enclosing a copy of the competent authority’s written request
no later than 7 days from the date of the Vendor’s receipt of such competent
authority’s written request.

 

3                                         PURCHASE PRICE

 

3.1                                 The Purchase Price shall be Dollars Three
Million Six Hundred and Sixty Three Thousand Only (S$3,663,000.00) or where
applicable, such price as adjusted pursuant to Clause 17.5 of this Agreement.

 

3.2                                 The Purchase Price shall be paid by the
Purchaser to the Vendor in the following manner:-

 

(a)                                  immediately upon the signing of this Agreement, a sum equal to twenty per cent (20%)
of the Purchase Price;

 

(b)                                 within 14
days after the Purchaser receives the
notice of vacant possession from the Vendor, a sum equal to fifty five
per cent (55%) of the Purchase Price;

 

(c)                                  on completion of the infrastructure as set
out in Clause 2.3 herein and upon certification by the Vendor’s Project
Architect, a sum equal to fifteen per cent (15%) of the Purchase Price; and

 

(d)                                 on completion of the sale and purchase herein
a sum equal to ten per cent (10%) of the Purchase Price.

 

3.3                                 In the event that there has been change in
the Purchase Price, the following shall apply:-

 

(a)                                  If the Purchase Price has been lowered, the
balance payable on completion shall be adjusted accordingly, or if it is after
completion and the excess amount has already been paid to the Vendor, the
excess amount shall be refunded to the Purchaser in one lump sum without
interest whatsoever;

 

(b)                                 If the Purchase Price has been increased, the
additional amount payable shall be paid in one lump sum without interest
whatsoever within fourteen (14) days of the date of the Vendor’s notice to the
Purchaser to such effect provided always that if the said notice to pay is given more than 14 days before the date for payment of the sum set out In Clause 3.2(b),
the said additional amount payable need only be paid on the same date as the
date

 

3

 

for
payment of the sum set out in Clause 3.2(b).
In the event that the. Purchaser shall. fait to comply with
the said notice to pay, the Vendor shall have the right and be entitled to
treat the Purchaser’s failure as a breach of the terms and conditions of this
Agreement and further to interest as if such non-payment is an unpaid
instalment.

 

3.4                                 Time shall be of the essence of the contract
in relation to all the provisions of this Agreement as shall relate to the
payment of any instalment of the Purchase Price or part thereof.

 

3.5                                 All instalments of the Purchase Price and the
goods and services tax thereon, shall be paid by the Purchaser by way of
cashier’s order made in favour of the Vendor unless otherwise agreed by the
Vendor.

 

3.6                                 If any of the instalments of the Purchase
Price is not paid on the due date thereof, then without prejudice to the other
rights and remedies of the Vendor, interest on any such unpaid instalment shall
commence from the due date and shall be payable by the Purchaser until:-

 

(a)                                  the date of payment by the Purchaser of the
unpaid instalment; or

 

(b)                                 the expiration of the Termination Notice
given by the Vendor pursuant to Clause 8.1, whichever is the earlier.

 

3.7                                 The interest payable by the Purchaser shall
be calculated on a daily basis at the rate per annum of two (2%) above the
average of the prevailing prime
rates of the three major local banks (i.e. DBS, OCBC and UOB) rounded downwards
to the nearest one eighths of one per cent (1%).

 

4                                         GST

 

4.1                                 The Purchaser shall bear and pay to the
Vendor all goods and services tax on the supply of the Property and any other
goods or services which the Vendor may be required to supply under this
Agreement.

 

4.2                                 The
goods and services tax in respect of each of the instalments of the Purchase
Price referred to in Clause 3.2 shall be due and payable at the same time as
the instalment and in the case of other (if any) goods and services tax as
mentioned in Clause 4.1, the Purchaser shall on demand pay to the Vendor such
tax.

 

4.3                                 If any goods and service tax remains unpaid
by the Purchaser after it has become due and payable, without prejudice to the
other rights and remedies of the Vendor, interest at the rate stated in Clause
3.7 shall commence from the due date until the date of payment by the Purchaser
of the unpaid tax.

 

5                                         VACANT POSSESSION

 

5.1                                 Notice of vacant possession shall be given
within sixteen (16) weeks from the date of this Agreement.

 

5.2                                 Vacant possession of the Property shall be delivered by the Vendor to the Purchaser upon the Purchaser’s
payment of the sum stated in
Clause 3.2(b).

 

6                                         PURCHASER’S UNDERTAKING

 

6.1                                 The Purchaser hereby covenants with the
Vendor that the Purchaser will comply with the conditions enumerated in the Second Schedule hereto.

 

6.2                                 The sale herein shall also be subject to the restrictive and
other covenants and conditions as
set out in the Third Schedule hereto
and any further covenants and conditions (if any) as may be required by the
Government and/or the URA and/or any other authorities as and when they are imposed and shall be deemed to
have been fully incorporated herein
and the Purchaser shall fully observe and comply with each of such
undertakings, terms and provisions notwithstanding that the Restriction has not
been formally executed and registered by the parties. Such restrictive
covenants shall take effect from the date of this Agreement.

 

4

 

6.3                                 Sale, Sublease or disposal
by the Purchaser

 

(a)                                  The Purchaser shall not sell, sublease or
dispose of the Property or any part thereof in its vacant or undeveloped state. The Purchaser
acknowledges that he has read the Building Agreement and is fully aware of the
contents thereof and undertakes with the Vendor that the Purchaser shall at all
times agree to perform and observe such of the provisions contained in the
Building Agreement as are applicable to the Property and which are expressly
stated in this Agreement.

 

(b)                                 The Purchaser may sell, sublease or dispose
of the strata units to be developed by the Purchaser and comprised in the
Purchaser’s Development, subject to the following conditions:-

 

(i)                                     no option shall be issued and no sale shall
be effected until after the Purchaser has obtained the approvals from the
relevant authorities to sell the Purchaser’s Development; and

 

(ii)                                  the purchaser shall incorporate all the terms
and conditions prescribed in Form D of the Sale of Commercial Properties Rules,
to regulate the terms of each sale, irrespective of whether the Purchaser’s
Development would fall within the application of Sale of Commercial Properties Act;
and

 

(iii)                               the sale, sublease or disposal of strata
units by the Purchaser shall not in any way prejudice or affect the exercise of
the Vendor’s rights under this Agreement, including but not limited to the
Vendor’s rights of termination under Clause 8.1 and upon the Vendor’s exercise
of its rights of termination under Clause 8.1 the Purchaser shall
forthwith at its own costs and expense, procure the withdrawal or cancellation
of all caveats, notifications of charges and other claims (if any) filed in any
register against the Building Plot by the Purchaser and all parties claiming
under, through or in trust for the Purchaser.

 

6.4                                 TOP/CSC

 

(a)                                  The Purchaser shall procure the issue of the
TOP for the whole of the Purchaser’s Development by 31 December 2005 and the
Purchaser shall furnish a certified true copy thereof to the Vendor within
seven (7) days of receipt thereof.

 

(b)                                 The Purchaser shall procure the issue of the CSC for the whole of the Purchaser’s Development and furnish a certified
true copy thereof to the Vendor within seven (7) days of receipt thereof.

 

6.5                                 ENCROACHMENT

 

(a)                                  The Purchaser shall not encroach on any land
outside of the Property, whether by its boundary hoarding, wall, fence or
otherwise whatsoever. For avoidance of doubt, the boundary hoarding, wall,
fence or otherwise shall always be within the Property only. In the event that
there is any encroachment found (as certified by independent surveyors duly
appointed by or agreed to by both parties, whose certification shall be final and
conclusive, save for manifest error), the Purchaser shall within twenty-one
(21) days of the written notice from the Vendor to the Purchaser remove the
encroachment to the satisfaction of the Vendor, failing which:

 

(i)                                     the Vendor shall have the right and be
entitled to treat the Purchaser’s failure as a breach of the terms and
conditions of this Agreement and avail itself to its rights and remedies provided
in this Agreement, without prejudice to any other rights available to him
at law or in equity and/or,

 

(ii)                                  the Vendor shall at the Vendor’s sole and absolute discretion remove the encroachment, and require the costs and expense of such removal to
be paid by the Purchaser as if it were
an instalment payable under this Agreement. The Purchaser or any third
party claiming under it shall have no right whatsoever to compensation whatsoever due to any damage that may be incurred to the Purchaser’s Development or its possessions or belongings whatsoever
due to such removal of the encroachment by the Vendor or its agents or
contractors.

 

5

 

(b)                                 The Vendor and its
agents, servants and assigns shall not encroach on the Property, whether by its
boundary hoarding wall, fence or otherwise whatsoever. For the avoidance of
doubt, the boundary hoarding, wall, fence or otherwise shall always be within
its property only. In the event that there is any encroachment found (as
certified by independent surveyors duly appointed by or agreed to by both
parties, whose certification shall be
final and conclusive), the Vendor
shall within twenty-one (21) days of the written notice from the Purchaser to the Vendor remove the encroachment to the satisfaction of the
Purchaser, failing which:

 

(i)                                     the Purchaser shall have the right and be
entitled to treat the Vendor’s failure as a breach of the terms and conditions
of this Agreement and avail itself to its rights and remedies provided in
this Agreement, without prejudice to any other rights available to it at law or in
equity and/or;

 

(ii)                                  the Purchaser shall at the Purchaser’s sole
and absolute discretion remove the encroachment,
and require the costs and
expense of such removal to be
paid by the Vendor and the Vendor hereby indemnifies on a fully Indemnity basis
the Purchaser for the same.

 

7                                         VENDOR’S WARRANTIES

 

The
Vendor hereby represents and warrants to the Purchaser that the Vendor has
performed, observed and complied with, and will continue (notwithstanding the
grant of CSC in respect of the whole of the Purchaser’s Development by the
relevant authorities) to perform, observe and comply with, all its duties and
obligations under the Building .Agreement (including without
limitation the obligations under Clauses 2(iii)(a), (b) and 2(x) of the
Building Agreement) and that no event has
occurred which entities the Lessor to terminate the Lease No. 22205 in respect of the
Industrial estate.

 

8                                         VENDOR’S REMEDIES

 

8.1                                 Termination Notice

 

(a)                                  In the event of any material breach (save and
except for a breach resulting from or consequential of any act or omission of
the Vendor, its servants or agents) by the Purchaser prior to completion, the
Vendor shall be entitled at its option on giving to the Purchaser or its
solicitors a Termination Notice specifying such material breach of the
Purchaser to treat this Agreement as having been repudiated by the Purchaser
and (unless in the meanwhile the Purchaser has rectified the said breach completely) this
Agreement shall at the expiration of such notice (and in this respect time
shall be of the essence) be annulled and in such an event, the Vendor shall
forfeit and retain absolutely for its own benefit all sums previously paid by
the Purchaser hereunder, whereupon the Vendor shall have no other claim against
the Purchaser.

 

For the purposes of this Clause
8.1(a), “material breach” means either of the following:

 

(i)                                     a breach
of the provisions of the Building Agreement which are to be observed or performed by the Purchaser pursuant to this
Agreement and which causes the Lessor to re-enter and re-possess the Property
pursuant to Clause 5 of Lease No. 22205;

 

(ii)                                  wholly suspending
work on the Property without justification or failing to proceed with diligence and due expedition with the building
and construction of building(s) or otherwise on the Property according to the
approved plans.

 

(b)                                 Upon the annulment
and cancellation of this Agreement pursuant to Clause 8.1(a), the Purchasers’
rights, title and interest in respect of the Property shall cease and
determine, and the Purchaser shall forthwith withdraw or cancel or procure the
withdrawal or cancellation of all caveats, notifications of charges and other
claims (if any) filed in any register against the Property by the Purchaser and
all parties claiming under, through or in trust for the Purchaser.

 

(c)                                  If the Property has been mortgaged or charged and written notice of such mortgage or
charge has forthwith after the creation of such mortgage or charge been served
on the Vendor by the Mortgagee,
this agreement shall not be annulled under the provision of Clause 8.1 and the Vendor shall not exercise its
rights under Clause 8.1(a) and (b)
unless the Vendor shall have first served upon the

 

6

 

mortgagee a notice in writing that the Purchaser’s breach(es) has
occurred and the mortgagee has failed to remedy the same within twenty-one (21)
days after the date of service of such notice in writing.

 

(d)                                 If the Purchaser has contracted to sell the
Property to a Sub-purchaser and written notice of such sale has forthwith after
the creation of such sale contract been served on the Vendor by the Purchaser this Agreement shall not be annulled under the provision of
Clause 8.1 and the Vendor shall’
not exercise its rights under Clause 8.1(a) and (b) unless the Vendor shall have first served upon the Sub-purchaser a notice in writing that the
Purchaser’s breach(s) has occurred and the Sub-purchaser has failed to remedy the same within twenty-one
(21) days after the date of service of such notice to writing.

 

8.2                               TOP/CSC

 

(a)                                  If the Purchaser fails to obtain the TOP by
the date specified hereinbefore in Clause 6.4 stated, the Vendor may (but shall
not be obliged to) in the Vendor’s absolute discretion enter upon the Property
or any part thereof and if all or any building works thereon shall remain unfinished or uncompleted, to complete the same in
accordance with the specifications, development and building plans approved by
the competent authorities and for the purposes aforesaid, the Vendor shall be
at liberty to employ managers, consultants, specialists, contractors, builders,
workmen or others and to purchase all materials and equipment as the Vendor may
in the Vendor’s absolute discretion deem fit, and all moneys expended by the
Vendor in completing the Purchaser’s Development shall on demand be repaid by
the Purchaser with interest thereon at the rate stated in Clause 3.7 PROVIDED ALWAYS
that the Vendor shall only be entitled to demand for repayment of and the
Purchaser shall only be liable to repay such moneys expanded by the Vendor if
the Purchaser’s failure to obtain TOP is not a result of or contributed by the
Vendor’s or its agent’s or servant’s or sub-purchaser’s or permitted assign’s
breach of any of the provisions of the Building Agreement and/or this
Agreement.

 

(b)                                 In connection with the aforesaid, the
Purchaser hereby irrevocably appoints the Vendor or any person(s) nominated by
the Vendor to be the Attorney of the Purchaser to apply for and procure on the
Purchaser’s behalf any licence, permits or other approvals from any competent
authority and do all acts necessary for the execution and completion of the
Purchaser’s Development and to obtain the issue of the TOP and the CSC thereof.
The Purchaser shall indemnify the Vendor against all costs and expenses
incurred by the Vendor in so completing the Purchaser’s Development. The remedy given
to the Vendor in this Clause is additional to and without prejudice to
the Vendor’s other rights and remedies.

 

9                                         PURCHASER’S REMEDIES

 

9.1                                 In the event of any
material breath (save and except for a breach resulting from or consequential
of any act or omission of the Purchaser, its servants or agents) by the Vendor prior to completion the Purchaser
shall be entitled at its option on
giving to the Vendor or its solicitors
a Termination Notice to treat this Agreement as having been repudiated by the
Vendor and (unless in the meanwhile the Vendor has rectified the said breach
completely) this Agreement shall at the expiration of such notice (and in this
respect time shall be of the essence) be annulled and in such an event, without
prejudice to any other rights available to it at taw or in equity, the
Purchaser shall be entitled to:

 

(a)                                  a full refund of all sums previously paid by
the Purchaser hereunder free of
interest on such sums within 30 days of
such repudiation; and

 

(b)                                 a reimbursement of all cost and expense
incurred by the Purchaser in the development of the Property and the
construction of any buildings or structures on the Property up to the time of such
repudiation,

 

whereupon
the Purchaser shall have no other claims against the Vendor.

 

For
the purposes of this Clause 9.1, “material breach” means a breach on or before
the date of this Agreement of the provisions of the Building Agreement which
are to be observed or performed by the
Vendor or a breach after
the date of this Agreement
of the provisions of the Building Agreement which

 

7

 

are
to be observed or performed by the Vendor (and which are not delegated and/or
assigned to the Purchaser pursuant to this Agreement) and which causes the Lessor to re-enter and re-possess the Property pursuant to Clause 5 of Lease No. 22205.

 

9.2                                 Upon the payment by the Vendor to the
Purchaser of all monies stated in Clause 9.1,

 

(a)                                  the Purchasers’ rights, title and interest in
respect of the Property shall cease and determine, and the Vendor shall be entitled to take possession of the Property and any building’s or other
structure and materials on the Property 7 days after such payment, and such building’s
or structures and materials on the Property at the time of the Vendor’s
possession of the Property shall belong to the Vendor absolutely; and

 

(b)                                 the Purchaser shall within 7 days thereof procure the withdrawal or cancellation of all caveats, notifications of charges and other
claims (if any) filed in any register against the Property by the Purchaser and
all parties claiming under, through or in trust for the Purchaser.

 

9.3                                 In the event the Purchaser has completed its
development on the Property and is ready to apply for TOP but is so prevented
by the Vendor’s failure to comply with or perform all its obligations under
this Agreement (including, without limitation, its obligations under Clause
2.3), the Vendor shall pay the Purchaser liquidated damages calculated from the day on which the Purchaser was ready
to apply for TOP provided that
such day shall not be earlier than 1 May 2005 to the day on which the Vendor
has complied with or performed all its obligations under this Agreement to
enable the Purchaser to apply for TOP (both days inclusive) (the “Period”) as
follows:

 

(R x N)

 

where

 

R
is the daily rental the Purchaser has to pay to its present landlords or to its
new landlords upon the termination of the lease of the premises out of which it presently operates;
and

 

N
is the number of days in the Period.

 

10                                  BUILDING AGREEMENT

 

10.1                           A copy of the Building Agreement has been
provided by the Vendor to the Purchaser as the Purchaser hereby acknowledges.

 

10.2                           The Purchaser also
acknowledges that he has read the Building Agreement and is fully aware of the
contents thereof.

 

10.3                           The Purchaser
undertakes and agrees to abide by, observe and perform all the terms and
conditions and covenants of the Building Agreement in so far as these relate to
the Property and are expressly delegated or assigned to the Purchaser in this
Agreement, including but without limiting the generality of the foregoing, the
condition that the Purchaser must develop the Property itself and
obtain TOP within the prescribed time, and accordingly must not sell, sublease or otherwise dispose of its interest
under this Agreement or the possession or occupation of the Property or any
part thereof in its vacant or undeveloped state.

 

11                                  INSURANCE

 

11.1                           The Purchaser shall as soon as the building(s)
forming part of the Purchaser’s Development have reached a height two metres
above the ground level insure the same to the full value thereof in the joint
names of the Lessor, the Vendor and the Purchaser against loss or damage by
fire or such other risks as the Vender considers desirable to be insured
against with an insurance company approved by the Vendor and shall increase
such Insurance to the satisfaction of the Vendor as the said building(s)
approach completion and shall keep the
same so insured from time to time and make all payments necessary for the above
purpose within fourteen (14) days after the same respectively become payable
and shall whenever required produce to the vendor the policy or
policies of such insurance and
the receipt or receipts for each
payment and shall cause all moneys received by virtue of any such insurance to
be forthwith laid out in rebuilding or reinstating

 

8

 

the
said building(s) and make up any deficiency out of its own moneys PROVIDED
ALWAYS that the Purchaser’s obligations under this clause shaft not exceed a
total insurance coverage of $10,000,000.00 and if the Purchaser shall at any
time fail to keep the said building(s) insured as aforesaid, the Vendor may (but shall not be under any obligation to) do all things necessary to effect or maintain such insurance and any moneys expended by it
for that purpose shall be repayable by the Purchaser on demand (together with interest
thereon at the rate specified in Clause 3.7 calculated from the date such expenditure is
incurred by the Vendor
until repayment thereof to the
Vendor) and be recoverable forthwith from the Purchaser.

 

12                                  PROPERTY TAX/OUTGOINGS

 

12.1                           The Purchaser shall be responsible for all
outgoings (including property tax), rates, taxes, assessments, impositions whatsoever which may be imposed from the date of receipt of the notice to take possession from
the Vendor shall on demand forthwith reimburse the Vendor in respect thereof.

 

13                                  SURVEY FEES AND OTHER COSTS

 

13.1                           The Purchaser
shall forthwith pay on demand:-

 

(a)                                  any resurvey fee and all related expenses
relating to survey for the issuance of separate Certificate of Title whether
payable to government or otherwise and the costs for the supply of electricity
and water to the Property;

 

(b)                                 all legal costs as between solicitor and
client incurred by the Vendor in connection with the preparation and
negotiation of this Agreement; and

 

(c)                                  all costs and fees including legal costs as
between solicitor and client incurred by the Vendor in connection with the
enforcement of the terms and conditions of this Agreement and in respect of all
matters incidental thereto or arising therefrom.

 

14                                  UTILITIES/SERVICES

 

14.1                           The Purchaser shall
pay for all charges for the supply of water, sanitation and electricity or power which may be imposed or
charged on the Property. The electricity supply will be provided at 400V, 50Hz,
3 phase, 4 wire with a maximum current of 700 amperes. For demand greater than
the stipulated amperes, the Purchaser shall make separate arrangement for
electricity supply with the relevant authorities at the Purchaser’s own costs
and expense and subject also to the Technical Conditions of Tender in the
Building Agreement and any conditions required by the M & E
Consultant. Subject to Clause 2.3, the Purchaser will bear all cost
in connecting the water, sanitation and electricity supply to the Property.

 

14.2                           All government
statutory board local authority or other notices claims and demands of whatever
nature relating or otherwise attributable to the Property served after the date
of receipt of the notice of vacant possession to the Purchaser shall be
complied with by and at the Purchaser’s expense.

 

15                                  INDEMNITY

 

15.1                           The Purchaser hereby indemnifies the Vendor
against all claims, liabilities, damages, losses, proceedings, legal costs and
any expenses whatsoever which the Vendor actually suffers as a direct result of
the Purchaser’s breach of the provisions of Clause 10 hereof due to the payment of liquidated
damages (or any other scheme of payment of damages) payable by the Vendor to the Lessor under the Building Agreement
as a result of any delay in the issuance of the TOP PROVIDED ALWAYS that:-

 

(a)                                  such breach on the part of the Purchaser is
not caused (directly or indirectly) by the Vendor or its servants or agents or sub-purchasers or permitted assigns; and

 

(b)                                 in the event such breach on the part of the
Purchaser is caused (directly or indirectly) by the Lessor or its servant or
agents, the Vendor undertakes to assist the Purchaser in its claim against the
Lessor or its servants or agents.

 

15.2                           The Purchaser shall also indemnify the Vendor
and or the Lessor against all claims in respect of damage loss or injury of
every description arising
directly or indirectly out of the development use and occupation of the

 

9

 

Property
and the building/s constructed thereon PROVIDED ALWAYS that such damage loss or
injury was incurred or suffered as a result of the gross negligence on the part
of the Purchaser.

 

16                                  COMPLETION

 

16.1                           The sale herein shall be completed and the
balance ten per cent (10%) of the Purchase Price shall be paid at the office of the Vendor’s solicitors, Central Chambers Law Corporation,
Singapore on or before the Completion Date.

 

16.2                           The Completion Notice shall be given by the
Vendor as soon as is practicable after the separate Certificate of Title
relating to the Property is issued. The Vendor hereby undertakes to submit, within
thirty (30) days of obtaining TOP for the infrastructure works, on the Vendor’s
cost and expense an application in the approved form to the Registrar of Titles
for the issuance of a separate Certificate of Title relating to the Property
and obtain the same no later than 6 months from 30 April 2005. The Vendor
further undertakes to forward a copy of its application and all subsequent
correspondence to and from the authorities in respect of such application to
the Purchaser forthwith upon despatch or receipt.

 

16.3                           On completion, the Vendor shall make and
execute to the Purchaser an assurance of the Property such assurance to be
prepared by and at the expense of the Purchaser and shall contain such
restrictive and other covenants and conditions substantially in the form set
out in the Third Schedule hereto
with such amendments (if any) as may be required by the URA as well as the
following:-

 

(a)                                  in favour of the Purchaser, and as
appurtenant to the Property, easements for the passage or provision of water,
electricity, drainage and sewerage through or by means of any sewers, pipes,
wires, cables or ducts to the extent to which those sewers, pipes, wires,
cables or ducts are capable of
being used in connection with the enjoyment of the
Property;

 

(b)                                 as against the
Purchaser, and to which the Property shall be subject, easements for the
passage or provision of water, electricity, drainage and sewerage through or by
means of any sewers, pipes, wires, cables or ducts, as appurtenant to
every other land forming part of the Vendor’s industrial estate capable
of enjoying such easements;

 

(c)                                  a reservation to the Vendor of the right to enter
into and upon the Property or any
part thereof at any time and from time to time for the purpose of constructing and making necessary repairs and replacements to the aforesaid
sewers, pipes, wires, cables or ducts on the Vendor’s undertaking to not damage any part of
the Property or
any building or buildings constructed thereon and in the event of damage, to
reinstate the Property or the building or buildings constructed thereon or any
part thereof to its original condition to the satisfaction of the
Purchaser at the Vendor’s cost and expense provided always that such damage to
the Property is not caused directly or indirectly by the breach of the
Purchaser’s obligations under this Agreement
or defects caused by the Purchaser’s
default, negligence or omission
of the Purchaser or its servants, agents or contractors in the building and
construction of the Property, such breach, default, negligence or omission not
being a result of, or contributed by, the Vendor’s or its servants’ or agents’
breach, default, negligence or omission.

 

(d)                                 The Vendor’s
undertaking to complete all roads leading to the Property by 30 April 2005.

 

17                                  DESCRIPTION CONDITION AND
AREA OF LAND

 

17.1                           The Property is believed and shall be taken
to be correctly described and shall be subject to Government resurvey.

 

17.2                           No error or mis-statement as to the Scheduled
Area shall annul the sale or entitle the Purchaser to be discharged from the
purchase.

 

17.3                           Any error or
mis-statement as to the Scheduled Area shall give the Purchaser an entitlement to an adjustment of
the Purchase Price in accordance with this Clause only.

 

17.4                           If on completion of the Government survey or
resurvey it is found that the difference between the Resurveyed Area and the
Scheduled Area is less than three percent (3%) of the Scheduled Area, there
shall be no adjustment of the Purchase Price for the difference between the
Scheduled Area and the Resurveyed Area.

 

10

 

17.5                           If on completion of the Government survey or
resurvey it is found that the difference between Resurveyed Area and the
Scheduled Area is more than three percent (3%) of the Scheduled Area, there
shall be an adjustment of the Purchase Price for the difference between the Scheduled
Area and the Resurveyed Area (in square
metres) at the Purchase Price Rate.

 

18                                  NOTICES AND OTHER MATTERS

 

18.1                           The Lessor and or the URA shall in no way be
liable for any default in complying with any of the terms and conditions herein
contained on the part of either the Vendor or the Purchaser.

 

18.2                           The Property is
sold subject to:-

 

(a)                                  air roads, buffer’s, back lane and other
improvement schemes whatever affecting the Property and to the
proposals contained in the Master Plan including any amendments thereto.

 

(b)                                 all notices (if
any) of the Government authorities affecting the Property, served on or before
the date of completion on the Vendor or Purchaser shall be complied with by and
at the expense of the party served.

 

(c)                                  the risk of
compulsory acquisition, which shall be borne by the Vendor for every notice of
such compulsory acquisition received on or before the date of completion and by
the Purchaser for every notice
of such compulsory acquisition received after the date of completion. In the
event a notice of acquisition is received on or before the date of completion, the Purchaser shall be entitled at the Purchaser’s option
to (a) rescind the agreement,
whereupon all monies paid by the Purchaser
shall be repaid by the Vendor within 30 days of the Purchaser’s notice of
rescission; or (b) a reduction in the Purchase Price by the difference between
the actual area of the Property pre-acquisition and the Resurveyed Area
post-acquisition calculated at the Purchase Price Rate. For the avoidance of
doubt, the Lessor’s re-entry and re-occupation of the Property in accordance
with the provisions of the Building Agreement does not constitute compulsory
acquisition.

 

(d)                                 the rights of the
Vendor, its agents and contractors to enter into and upon the Property for
purpose of construction, installation and maintenance of sewage lines,
manholes, ancillary installations, and any
other services including but
not limited to water,
gas electrical and telecom services, as may be required by the relevant
authorities, in, under or through the Property, serving the Property and/or the
rest of the industrial estate upon the Vendor’s undertaking to not damage any
part of the Property and in the event of damage, to reinstate the Property and
any part thereof to its original condition to the satisfaction of the Purchaser
at the Vendor’s cost and expense provided always that such damage to the
Property is not caused directly or indirectly by the breath of the Purchaser’s
obligations under this Agreement or defects caused by the Purchaser’s default,
negligence or omission of the Purchaser or its servants, agents or contractors in the building and construction
of the Property, such breach, default, negligence or omission not being a
result of, or contributed by,
the Vendor’s or its servants’ or agents’ breach, default, negligence or
omission.

 

18.3                           Any notice of document required or authorised
by this Agreement to be given to or served on the Purchaser shall be in writing
and shall be sufficiently served if: -

 

(a)                                  it is addressed to the Purchaser and served
in the manner by which a notice may be served under Section 72 of the
Conveyancing and Law of Property Act (Chapter 61);

 

(b)                                 effected on the solicitor for the Purchaser
by telegraphic facsimile transmission or by hand.

 

19                                  APPROVAL OF PLANS

 

19.1                           All building plans for the Purchasers
Development shall be approved by the Vendor (which approval cannot be withheld
save in respect of such part(s) of the building plans that contravene any
statute or bye-law of the competent authority) before the same is submitted to
the competent authority for their approval.

 

11

 

20                                  NON-MERGER

 

20.1                           Notwithstanding the completion of the sale
and purchase under this Agreement, the conditions and obligations on the part
of the parties hereto be observed in this Agreement shall continue and remain in full force and
effect in regard to anything remaining
to be done performed or observed
hereunder on the part of the parties
hereto.

 

21                                  WAIVER

 

21.1                           Unless otherwise
expressly specified or agreed
no failure or delay on the part of either party to exercise any right power authority or remedy under this
Agreement and no indulgence or forbearance
or giving of extension of time on
the part of either party to the
other party shall operate as a
waiver or will in any way affect or preclude the subsequent exercise by the said party of the said right power
authority or remedy or any other right power authority or remedy.

 

22                                  CONFLICT

 

22.1                           For the avoidance of doubt, insofar
as the obligations of the Vendor and Purchaser under this
Agreement are concerned, in the event of conflict between this Agreement and
the Building Agreement, the provisions of
this Agreement will prevail.

 

23                                  EXCLUSION OF THIRD PARTIES’
RIGHTS

 

23.1                           A person who is
not a party to this Agreement has no right under the
Contracts (Rights of Third
Parties) Act 2001 to enforce any term of this Agreement.

 

24                                  GOVERNING LAW

 

24.1                           This Agreement shall be governed by the laws
of the Republic of Singapore.

 

THE FIRST
SCHEDULE ABOVE REFERRED TO

 

ALL THAT
piece or parcel of land provisionally known as Lot numbers, 3572P (Plot 32),
3573T (Plot 33), 3574A (Plot 34); 3583M (Plot 43), 3584W (Plot 44) and 3585V
(Plot 45) and situated in the District of Tuas in the Republic of Singapore as
delineated and edged red on the Site Plan for identification purposes only and
estimated accordingly to private survey to contain an area of 6,660 square
metres (subject to government survey).

 

THE SECOND
SCHEDULE ABOVE REFERRED TO

 

The
Purchaser undertakes to do the following: -

 

1                                          To construct and complete upon the Property a
building or buildings for a general light industrial development as defined under the Planning (Use Classes) Rules 1981
or any statutory modification or reenactment thereof with a permissible gross
plot ratio of 0.7 (minimum) and 2.5 (maximum).

 

2                                          To submit, on a best efforts basis, plans for
Vendor’s endorsement (and the Vendors
hereby undertake to endorse
the same forthwith save where the plans contravene any statute or bye-law of the competent authority
within fourteen (14) weeks from the date of this Agreement and thereafter make
planning submission to the competent authorities within one (1) week from the
date of the Vendors endorsement and to verify item No.1 of the Second Schedule.

 

3                                          To commence work or ensure the commencement
of work on the foundation of the Purchaser’s Development either after the plans
elevations and specifications have been
approved by the Lessor, if applicable and the relevant authorities or
after written consent to commence such work has been given by the relevant
authorities, but in any event, such work to be commenced within ten (10) months
from the date of vacant possession of the Property.

 

4                                          To construct and complete or ensure the
completion of the Purchaser’s Development at the Purchaser’s

 

12

 

own cost and expense, which shall
be deemed completed only after
the grant of CSC in respect of
the whole of the Purchaser’s Development by the relevant authorities and shall be undertaken in every way in accordance with the plans elevations and
specifications approved by
the Lessor, where applicable, and the relevant authorities.

 

5                                          To apply
and obtain TOP for all the building(s) on the Property on or before 31
December 2005. To forward a copy of the TOP and CSC to the Vendor within seven (7) days of receipt.

 

6                                          To construct temporary boarding within the
site boundary before commencement of
work.

 

7                                          To have building/s setback in accordance with
the buffer requirement under the Technical Conditions of Tender.

 

8                                          To obtain prior approval/consent of the Head (Pollution Control Department)
Ministry of the Environment or any other relevant competent authority for the
specific intended use of the building.

 

9                                          To obtain prior clearance from the Head
(Pollution Control Department) Ministry of the Environment for the
goods/materials to be kept in the building.

 

10                                    Not to conduct any manufacturing whatsoever
in the building.

 

11                                    Not to use for tin-smelting or the production
of tin by other processes including electrolysis.

 

12                                    To render a quarterly report of the progress
of its development to the Vendor.

 

13                                    Not to further resell sublease or dispose of
the Property in its vacant or undeveloped state but only the whole or part of
the Purchaser’s Development.

 

14                                    Before completion of the Purchaser’s
Development, not to go into liquidation or be placed under judicial management
or without the prior written consent of the Vendor amalgamate or merge with any other company corporation firm or any other party or
go into reconstruction of its
company and shall also not without the said prior written consent allot or
allow the sale, transfer, assignment or exchange of any of its shares to any
other company corporation firm or party and if such consent is granted, it
shall be subject to such terms and conditions as the Vendor may think fit to
impose.

 

15                                    Not at any time deposit make up or
manufacture or permit or suffer to be deposited or made up or manufactured upon
the Property any building or other materials except such as shall be required
for the Purchaser’s Development to be constructed thereon in accordance with
this Agreement and as soon as the Purchaser’s Development shall be completed
the Purchaser shall at its own expense remove from the Property all such
building and other materials and rubbish whatsoever.

 

16                                    Not to allow permit or suffer any person
shall occupy, reside in or make use of the Purchaser’s Development unless with
the approval of all relevant authorities.

 

17                                    Prior to the completion of the Purchaser’s
Development, to allow the Lessor, the Vendor or their officers or agents or any
person or persons authorised by the Lessor or the Vendor with or without
workmen and others at all reasonable times
to enter upon the Property or any
parts thereof to view the state
and progress of the Purchaser’s Development and to inspect and test the
materials, workmanship and building finishes for the Purchaser’s Development
and for any other reasonable purpose including the construction repair or
cleansing by or on behalf of the Lessor or the Vendor of any sewer or drain on or leading from any adjoining or neighboring land of the
Lessor or the Vendor and also to carry out any works in relation to the supply
of utilities and/or services for any of the adjoining properties.

 

18                                    In the event that there are existing utility
services such as pipes, cables, etc within the Property, to divert or protect
such existing utility services and the costs of diversion repair or protection
(if any) shall be borne by the Purchaser and shall be paid by him forthwith on
demand to the Public Utilities Board or other relevant authorities, agencies, bodies or corporations having the authority
over or being in charge of the
matter.

 

PROVIDED ALWAYS that nothing herein contained shall impose or be deemed to impose on the Vendor any

 

13

 

obligation to enforce or effectuate the said
restrictions covenants or conditions or any of them against the Purchaser, his
successors, assigns and personal representatives.

 

THE THIRD
SCHEDULE ABOVE REFERRED TO

 

The Purchaser for himself and his executors,
administrators and assigns with the intent and so that the covenants hereinafter
contained shall run with and be binding upon the Property sold into the hands of whomsoever the Property may come, and shall ensure for the benefit of the whole or any part
or parts of the lands
comprised in the industrial estate and so that the covenants and conditions shall so far as
practicable be enforced by the Vendor or the owners, occupiers for the time
being of the lands comprised in the industrial estate or any part or parts
thereof but not so as to render the Purchaser or owners other than the owner for the time being of the Property hereby conveyed personally liable in damages for any breach of any of the covenants and conditions which are restrictive of the
user of the Property after he, she or they have parted with all interest
therein hereby covenants with the Vendor its executors, administrators and
assigns to observe and perform the following restrictive and other covenants and conditions namely: -

 

(a)                                  That until all roads or road reserves in the
industrial estate providing access to the Property and also the open space, the electrical substation
and all culverts, pipes, cables, sewerage and water drains or drainage reserves and septic tank or tanks now or hereafter erected
made or constructed on, over or under the industrial estate are taken over and
maintained by the Building & Construction Authority, the National Parks,
Power Supply and the Ministry of the Environment,
the Purchaser will from time to time contribute a
fair and rateable proportion of the cost of maintaining and keeping
in a proper state of repair and condition the roads or road reserves, open space, electricity substation,
culverts, pipes, cables, sewerage and water drains or drainage reserves and septic tank or tanks or sewerage plant or plants such proportion in case of difference
to be ascertained at the option of the Vendor by a qualified surveyor appointed
for that purpose in terms of the Arbitration Act (Chapter 10) or any statutory
modifications or re-enactment thereof for the time being in force;

 

(b)                                 That the Purchaser shall observe, maintain
and keep in a proper state of repair and condition the roads and road reserves
in the Building Project providing
access to the building unit
and also the open space, the
electrical substation and all culverts, pipes, cables, sewerage and
water drains or drainage reserves and
septic tank or tanks or other sewerage plant or plants now or hereafter erected made or constructed on, over or under the Building Project are taken over and
maintained by the Land Transport Authority, the National Parks, Power Supply,
the Ministry of Environment and such other relevant authorities;

 

(c)                                  Not to do or suffer on the Property or in or
upon any building erected thereon any
matter or thing of any kind whatsoever which may be or become a nuisance or
annoyance to the Vendor or the person or persons for the time being owing or
occupying any lands comprised on
the development or any other lands or premises which may be
adjacent or adjoining to or in
the neighbourhood of Property;

 

(d)                                 Not to display on any part of the Property any signboard save and except one designating the
number of the building, the name of the street and name of the occupier thereof
and until Certificates of Statutory Completion for all buildings in the
industrial estate has been issued, to submit all proposed signage to the Vendor
for its prior consent;

 

(e)                                  The Purchaser shall
surrender to the relevant Government Authority free of charge any part or parts
of the Property as may be required by them from time to time for roads,
drainage, or any other public purpose as may be declared or notified to the Vendor or the Purchaser in a Notice by the Lessor or the
relevant Government Authority and the Purchaser shall accept as conclusive evidence that such part
or parts of the Property
is or are required for the
purpose declared or notified in the said Notice and that such purpose is a
public purpose;

 

(f)                                    The Purchaser shall bear and pay for all
liability in respect of all rates, taxes, assessments, property tax impositions and outgoings whatsoever which may be
imposed, charged, or assessed on or in
respect of the Property or any part
thereof and shall on demand forthwith reimburse the
Vendor or the Lessor in respect thereof;

 

(g)                                 The Purchaser shall pay all charges for the
supply of water, gas, sanitation and electricity and for removal of refuse in
respect of the Property or any part thereof.

 

(h)                                 When such annual rent is not waived by the
Minister, the Purchaser shall pay the annual rent of Dollars Twelve ($12.00)
without demand on the 10 day of January of each year or at such time
as may be

 

14

 

required
by the Lessor;

 

(i)                                     The Purchaser shall at all times maintain and
keep the Property (including the buildings and appurtenances erected or to be erected on the land) in good and tenantable condition and repair and in clean and sanitary order
and condition;

 

(j)                                     Not at anytime without the previous consent
in writing of the Vendor or Lessor to demolish or make any alteration or
addition to any building or any part thereof erected on the land and not
without the same consent to erect or put up any building or erection whatsoever
in addition to the buildings already erected on the said land;

 

(k)                                  Not to use or permit or suffer the Property
or any building thereon to be used otherwise than for General/light industry in
accordance with the approval granted by the Government Authority appointed
under the provisions of the
Planning Act (Chapter 232) and
without prejudice to the foregoing restriction, not to carry on, or permit or
suffer to be carried on in or upon the Property or any building.
thereon or any part thereof any noisome
dangerous or offensive trade or business which may be or become a
nuisance or annoyance to the owners tenants or occupiers of the premises
adjoining or adjacent thereto or to the Vendor or the Lessor;

 

(l)                                     The Purchaser shall
permit the Vendor and/or the Collector of Land Revenue or any officer
authorised by him in writing on behalf of the Lessor without workmen and others
at all reasonable time to enter into and upon the land and into and upon any
building thereon to view the state and condition thereof and the Vendor and/or
the Collector of Land Revenue may thereupon serve upon the Purchaser notice in
writing specifying any breaches of convenant and require the Purchaser forthwith
to remedy such breaches and if the Purchaser shall not within ten (10) days
after the receipt of such notice proceed diligently to remedy such breaches
then to permit the Vendor and/or the Collector of Land Revenue to enter upon
the Property and take steps as
may be necessary to remedy such breaches and the cost thereof shall be a debt clue from the Purchaser to the
Vendor or the Lessor (as the case may be) and be forthwith recoverable by
actions;

 

(m)                               The Purchaser shad insure and keep insured against loss or damage by fire and
other causes of destruction to
the Property to the full value thereof with an insurance
company approved by the Vendor and/or the Lessor and to pay all premiums
necessary for that purpose within fourteen (14) days after the same shall become due and to produce and to show
to the Vendor and/or the Lessor whenever required the policy of such
insurance and the receipt of every such premium and to cause all moneys
received by virtue of any such insurance to be forthwith laid out in rebuilding
or reinstating the Property erect thereon and to make up any deficiency out of
the Purchaser’s own moneys;

 

(n)                                 The Purchaser shall indemnify the Vendor
and/or the Lessor against all claims in respect of damage loss or injury of
every description arising directly or indirectly out, of the use and occupation
of the Property by the Purchaser;

 

(o)                                 At the expiry or earlier determination of the
term hereby granted to yield up to the Lessor
without charge the said land together with the buildings
and appurtenances thereon in
good and tenantable condition and state of repair and in clean and sanitary
order and condition;

 

(p)                                 The Purchaser shall pay all costs and fees
legal or otherwise including costs on a full indemnity basis in connection with
the enforcement of covenants and conditions herein;

 

(q)                                 The Purchaser is deemed to have full
knowledge of the provisions of the Building Agreement dated 9 July 1996 between
the Lessor and his successors-in-office of the one part and the Vendor of the
other part and the Conditions of Tender and Technical Conditions of Tender and
the Purchaser agrees to abide by, perform and observe the same and to observe and perform all covenants conditions
and other terms therein
on the part of the Vendor to observe and perform where the context permits
insofar as they relate to the Property and the Purchaser agrees to indemnify
the Vendor against all liabilities, damages, losses, legal costs and all
expenses which the Vendor may suffer or incur as a result directly or
indirectly of the Purchaser’s breach of the provisions contained in this paragraph;

 

(r)                                    The purchaser shall permit all relevant
competent authorities, their servants or agents, at all times free and
unconditional access to services located within the industrial estate for the purpose
of maintenance repair and improvement works and all other work and activities incidental thereto;

 

15

 

(s)                                  The Purchaser shall pay on demand whatever
amount(s) of tax charged or chargeable under the Goods and Services Tax Act in
relation to the sale of the Property to the Purchaser;

 

(t)                                    Not to store or use or cause or permit to be stored
or used any toxic chemicals/hazardous substances or oil within the Property and
to carry out or permit to be carried out only dry, clean and non-pollutive
activities within the Property;

 

(u)                                 Where the bin centre for the Property is
constructed or otherwise located within the building and is not directly or
conveniently accessible from any of the roads in the development, the Purchaser
shall ensure that all refuse is securely wrapped in plastic bags or other
similar materials or similarly packed and placed in a bin or bins and put
outside the Property at the place or places designated and or agreed by the
authorities and at the times and on the days of collection;

 

(v)                                 Not at any time of alienate any estate or
interest in the Property or any part thereof without imposing the covenants and
conditions contained in the preceding paragraphs and the covenants contained in
this paragraph upon all or any
person or persons to whom he shall so alienate the estate or interest in the
Property or any part thereof.

 

PROVIDED ALWAYS that nothing herein contained shall place or
be deemed to place on the Vendor any obligations to enforce or effectuate the
said covenants and conditions or any of them against the Purchaser or
purchasers of any other land or lands forming part of the industrial estate or
to impose the same or any of them on the Purchaser or purchasers.

 

 

	
  SIGNED BY ANG KHENG HONG
  for and on

  	
  )               /s/ ANG KHENG HONG

  
	
  behalf of the Vendor in the presence of:-

  	
  )               /s/ CHAN KUN-MING WINSTON

  
	
   

  	
   

  
	
   

  	
   

  
	
  SIGNED BY MICHAEL CRAIG
  for and on

  	
  )               /s/ MICHAEL CRAIG

  
	
  behalf of the Purchaser in the presence
  of:-

  	
  )               /s/ HUANG SHOOU-CHEE CHLOE

  

 

16

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