Document:

ex10_46.htm

Exhibit 10.46

 

MEMORANDUM

OF

TENANCY

Biopolis

(Office / Retail)

  

  

  

EASEMENTS, RIGHTS AND PRIVILEGES

	
A

	
The full right and liberty for the Tenant and the persons authorised by him (in common with all other persons entitled to the like right), at all times, by day or night to go, pass and repass over and along the main entrance of the Building and the common passageways, landings and stairways and to use the lifts PROVIDED THAT the Tenant shall not cause or permit any obstruction to the common passageways, landings, stairways and other common parts of and accesses to the Building.

	
B

	
The free and uninterrupted passage and running of water, electricity and gaseous products from and to the Premises through the sewers, drains, water-courses, channels, pipes, shafts, flues, cables and wires which now are or may at any time during the Term be in, under or passing through the Building.

	
C

	
The right of support and protection for the benefit of the Premises as is now enjoyed from the other premises and all other parts of the Building.

EXCEPTIONS AND RESERVATIONS

BUT RESERVING unto the Landlord and all others to whom the Landlord has granted or may grant :

	
D

	
The easements, rights and privileges over, along and through the Premises equivalent to those above.

	
E

	
All other easements, ancillary rights and obligations as are or may be implied by the Land Titles Act.

	
F

	
The free and uninterrupted passage and running of telecommunication facilities from, through and to the Premises.

	
G

	
The right of support and protection for the benefit of the other premises and all other parts of the Building as is now enjoyed from the Premises.

	
H

	
The right to develop, redevelop, erect, alter or in any way deal with or use or let the Building or any other part of Biopolis in such manner as shall be approved by the Landlord, the superior lessor or the Authorities notwithstanding that the access of light or air or any easement granted or appertaining to or enjoyed with the Premises may be obstructed or interfered with or that the Tenant might otherwise be entitled to object.

  

1

  

COVENANTS AND CONDITIONS

Definitions

	
1.1

	
The following expressions shall have the following meanings :

	
(a)

	
"Air-Conditioning

	
:

	
As defined in the Tenancy. Charge"

	  	  	  	  
	
(b)

	
"Authorities"

	
:

	
All relevant governmental and statutory authorities.

	  	  	  	  
	
(c)

	
"Biopolis"

	  	
The estate in which the Building is situated and of which it forms a part, including but not limited to the Carpark, compounds, grounds, gardens, bin centres, structures, other buildings and drains, cables and pipes above or below ground in the estate.

	  	  	  	  
	
(d)

	
"Building"

	
:

	
The building in which the Premises is situated and of which it forms a part, including but not limited to the common parts and other premises in the building.

	  	  	  	  
	
(e)

	
"Carpark"

	
:

	
All parking lots, driveways, roads, ramps and loading bays, whether within or outside any building, in Biopolis.

	  	  	  	  
	
(f)

	
"Commencement Date"

	
:

	
As defined in the Tenancy.

	  	  	  	  
	
(g)

	
"Law"

	
:

	
All laws, statutes, legislation, by-laws, rules, orders or regulations now or hereafter in force.

	  	  	  	  
	
(h)

	
"Landlord"

	
:

	
The Jurong Town Corporation (also known as "JTC Corporation") incorporated under the Jurong Town Corporation Act, its successors-in-title, and assigns.

	  	  	  	  
	
(i)

	
"Premises"

	
:

	
As defined in the Tenancy.

	  	  	  	  
	
(j)

	
"Rent"

	
:

	
As defined in the Tenancy.

	  	  	  	  
	
(k)

	
"Service Charge"

	
:

	
As defined in the Tenancy.

	  	  	  	  
	
(I)

	
"Tenant"

	
:

	
The Tenant as defined in the Tenancy and includes his personal representatives, successors-in-title, and permitted assigns (if any).

	  	  	  	  
	
(m)

	
"Tenancy"

	
:

	
The tenancy offer made by the Landlord to the Tenant in respect of the Premises and duly accepted by the Tenant.

	  	  	  	  
	
(n)

	
"Tenant's Obligations"

	
:

	
Covenants, conditions, terms, stipulations and obligations to be observed or performed by the Tenant.

	  	  	  	  
	
(o)

	
"Term"

	
:

	
As defined in the Tenancy.

  

2

  

Interpretation

	
1.2

	
Unless the context otherwise requires :

	
  

	
(a)

	
words importing the singular include the plural and vice versa;

	
  

	
(b)

	
words importing the masculine gender include the feminine gender and vice versa;

	
  

	
(c)

	
the expression "person" includes a body corporate;

	
  

	
(d)

	
reference to a specific Act of Singapore shall include any amendment, revision or replacement made to it from time to time;

	
  

	
(e)

	
where the Tenant consists of two or more persons all Tenant's Obligations shall be deemed to be binding on such persons jointly and severally;

	
  

	
(f)

	
all marginal notes are for ease of reference only and shall not be taken into account in the construction or interpretation of the clause or paragraph to which they refer.

Tenants Covenants

	
2

	
The Tenant covenants with the Landlord as follows :

Rent & Service Charge

	
2.1

	
To pay without demand and without deduction the Rent, Service Charge, Air-Conditioning Charge and all other sums charged or imposed upon the Premises or the Tenant by the Landlord in accordance with the Tenancy PROVIDED THAT :

	
  

	
(a)

	
the Landlord shall be at liberty from time to time to revise the amount of Service Charge and/or Air-Conditioning Charge upon giving a written notice to the Tenant; and

	
  

	
(b)

	
the revised Service Charge and/or Air-Conditioning Charge shall be payable from the date specified in the said notice.

Interest

	
2.2

	
To pay interest ("Interest") at the rate of 8.5% per annum on any outstanding amount due and payable under the Tenancy from the due dates until payment in full is accepted by the Landlord PROVIDED THAT :

	
  

	
(a)

	
the Landlord may revise the Interest to a higher rate from time to time at its absolute discretion; and

  

3

  

	
  

	
(b)

	
if the Landlord shall refuse to accept the tender of the outstanding amount because of any breach of the Tenant's Obligations, the Interest shall nevertheless remain due and payable.

Taxes

	
2.3

	
To pay the Landlord any increase in property tax, which may be imposed whether by way of an increase in the annual value or an increase in the rate per centum, in the proportion attributable to the Premises as determined by the Landlord in its absolute discretion.

Cost of Documents

	
2.4

	
To pay all costs, disbursements, fees and charges, legal or otherwise, including stamp and registration fees in connection with the preparation, stamping and issue of the Tenancy and any prior, accompanying or future documents or deeds, supplementary, collateral or in any way relating to the Tenancy.

Cost of Performance

	
2.5

	
To perform and observe ail the Tenant's Obligations at his own cost and expense.

Cost of Enforcement

	
2.6

	
To pay all costs and fees, legal or otherwise, including costs as between solicitor and client in connection with the enforcement of the Tenant's Obligations.

GST

	
2.7

	
To pay, in addition to and together with all taxable sums, the Goods And Services Tax ("GST") at the prevailing rate to the Landlord as collecting agent for the Authorities.

Insurance

	
2.8

	
(a)

	
Not to do or suffer to be done anything whereby any insurance for the time being effected on the Premises or the Building may be rendered void or voidable or be in any way affected.

	
  

	
(b)

	
To pay to the Landlord on demand all sums paid by the Landlord by way of increased premium and all costs and expenses incurred by the Landlord in connection with insurance rendered necessary by a breach or non-observance of sub-clause (a) above without prejudice to any other rights and remedies available to the Landlord.

Uniform External Appearance

	
2.9

	
Not to alter in any way the external appearance of the Premises including but not limited to the colour and type of all external parts such as doors, windows, grilles and walls.

Signages

	
2.10

	
Not to affix, paint or otherwise exhibit any name plate, banner, advertisement, flag-staff or any other thing except only the name of the Tenant in such places and manner as approved in writing by the Landlord.

Modifications

	
2.11

	
Not to do, permit or suffer to be done any of the following without the Landlord's prior written consent:

Tenant's Installations

	
  

	
(a)

	
installation of air-conditioning system, ventilation system, air exhaust system, fume hoods, electrical system, telecommunication equipment, plant, machinery, fixtures, fittings or other installations ("Tenant's Installations") in the Premises; and

All installations Fixtures & Fittings

	
  

	
(b)

	
alter, remove, add or in any way interfere or tamper with fixtures, fittings and installations including the Tenant's Installations in the Premises, including but not limited to any existing fire alarm and extinguishing system, ventilation system, air-conditioning system, wails or floor finishes (including any tilings), pipes, wirings, equipment, power and light points and outlets.

  

4

  

Power Surge & Vibration

	
2.12

	
(a)

	
Not to install or use any electrical, mechanical or telecommunication equipment, plant, machinery, fixtures, fittings, appliance or installations ("Equipment") that causes heavy power surge, high frequency voltage and current, noise, vibration or any electrical or mechanical interference or disturbance whatsoever ("Interference") which :

	
  

	
(a1)

	
may prevent or prevents in any way the service or use of any communication system of the Landlord, other lessees, tenants or occupiers; or

	
  

	
(a2)

	
affects the operation of equipment, plant, machinery, fixtures, fittings, appliances or installations of the Landlord, other lessees, tenants or occupiers.

	
  

	
(b)

	
To allow the Landlord or any authorised person to inspect at all reasonable times, the Equipment in the Premises to determine the source of the Interference.

	
  

	
(c)

	
To take suitable measures to eliminate or reduce the Interference to the Landlord's satisfaction, if it is found by the Landlord or such authorised person that the Equipment is causing or contributing to the Interference.

Safety of Building

	
2.13

	
(a)

	
Not to do, permit or suffer to be done anything which  affects the structure or safety of the Building.

Certificate of Statutory Completion

	
  

	
(b)

	
Not to do, permit or suffer to be done nor omit to do anything which may delay or prevent the issuance of the Certificate of Statutory Completion in respect of the Building.

Thermal Insulation

	
2.14

	
Subject to clauses 2.11, 2.12 and 2.13 and the Landlord's prior  written consent, to provide thermal insulation to the floor, ceiling and the walls of the Premises and heat extract systems if the Tenant's activities results or may result in :

	
  

	
(a)

	
moisture condensation on the floors, ceilings or walls of adjoining premises or common parts of the Building; or

	
  

	
(b)

	
the generation of excessive heat or heat which causes or may cause undue discomfort to the Landlord, its lessees or tenants or the occupiers of any adjoining or neighbouring premises.

Maintenance and Repair

	
2.15

	
Subject to clauses 2.11, 2.12 and 2.13, to maintain in good and tenantable repair and condition ;

	
  

	
(a)

	
the ceilings, doors, windows, glass and all the interior of the Premises including but not limited to walls, soffit, false ceiling, floor and all fixtures and fittings;

  

5

  

	
  

	
(b)

	
all fire alarm and extinguishing systems, air conditioning systems, including the grill air diffusers and ductings, and ventilations systems in the Premises;

	
  

	
(c)

	
all exit lighting, exit signs, emergency lighting and other electrical wiring, equipment and installations in the Premises;

	
  

	
(d)

	
the pipes, sumps, grease interceptors and sanitary installations whether in the floor, ceiling, walls or any part of the Premises; and

	
  

	
(e)

	
all party walls, floors and ceilings separating the Premises from other premises in the Building jointly with the adjoining lessees, tenants or occupiers.

Responsibility for Damage

	
2.16

	
If the cause of any damage to Biopolis can be traced directly or indirectly back to the Tenant's activities :

	
  

	
(a)

	
to reinstate Biopolis to the satisfaction of the Landlord as required by the Landlord in its absolute discretion and within such time as the Landlord may stipulate; and

	
  

	
(b)

	
in any event, to pay for all proceedings, costs, expenses, claims, losses, damages, penalties and liabilities arising out of the above including but not limited to administrative charges imposed by the Landlord and the full cost of repairs.

Landlord's Right of Inspection and Repair

	
2.17

	
To permit the Landlord, its employees, agents and all persons authorised by it or them, with or without any necessary materials and appliances, at reasonable times during the day or night, to enter upon the Premises to :

	
  

	
(a)

	
view or examine the state and condition of the Premises or the Building including but not limited to all windows, doors, pipes, ducts, drains, shafts, cables and wires;

	
  

	
(b)

	
execute any repairs or works to or in connection with the Building or the Premises which it or they may think fit, including but not limited to installation or replacement of windows, doors, pipes, ducts, drains, shafts, cables, wires and other apparatus, installation or equipment;

	
  

	
(c)

	
verify, by photographs or other means, that the Tenant's Obligations are observed and performed;

	
  

	
(d)

	
carry out Refurbishment Works referred to in clause 4.5; and

	
  

	
(e)

	
take inventories of equipment, plant, machinery, fixtures, fittings, appliances, installations, goods, materials and articles,

  

6

  

Removal

AND if so required by the Landlord, to remove any equipment, plant, machinery, installation, fixtures, fittings, appliances, installations partitions, goods, materials and articles to facilitate the above.

Emergency

PROVIDED THAT in a situation which in the Landlord's opinion is an emergency or exigency, the Landlord shall have the full right and liberty to enter the Premises immediately, with or without the Tenant's consent, to take such action as the Landlord in its absolute discretion deems fit.

Cease Activities for Repairs

	
2.18

	
To cease activities to such extent and during such hours as the Landlord may specify by written notice to the Tenant for any maintenance or repair work to be executed by the Landlord.

No Assignment, Subletting

	
2.19

	
(a)

	
Not to demise, assign, charge, create a trust or agency, mortgage, let, sublet, grant a licence or part with or share the possession or occupation of the Premises in whole or in part.

Sole-proprietor/Partners

	
  

	
(b)

	
Subject to sub-clause (a) above, if the Tenant is a sole-proprietor or comprises of partners carrying on business under a business name registered under the Business Registration Act, not to effect any change in the constitution or membership of the sole-proprietorship or partnership without the Landlord's prior written consent.

Obstructions

	
2.20

	
Not to place, permit or suffer to be placed any object, article or thing in or obstruct the accesses, stairways, passageways, pipes, drains, and other common parts of Biopolis.

Disposal of Waste

	
2.21

	
To make good and sufficient provision for and to ensure the safe and efficient disposal of all waste, including but not limited to pollutants and refuse, to the requirements and satisfaction of the Landlord.

Yield Up at Termination

	
2.22

	
(a)

	
At the termination of the Term, by expiry or otherwise :

	
  

	
(a1)

	
to yield up the Premises to the Landlord in good and tenantable repair and condition;

	
  

	
(a2)

	
(a2.1)

	
to remove all tenant's fixtures and fittings;

	
  

	
(a2.2)

	
to reinstate the Premises; and

	
  

	
(a2.3)

	
if so required by the Landlord, to redecorate including painting the interior of the Premises,

to the satisfaction of the Landlord,

and in accordance with the Tenant's Obligations.

Permit Viewing

	
  

	
(b)

	
To permit intending tenants and others, authorised by the Landlord or its agents, at reasonable times and by prior appointment with the Tenant, to enter and view the Premises during the three calendar months immediately preceding the determination of the Term.

  

7

  

Compliance with Landlord's Rules & Regulations

	
2.23

	
To observe and comply with and ensure observance and compliance with all rules, notices, regulations and stipulations which may, from time to time, be made by the Landlord in respect of Biopolis.

Compliance with Laws

	
2.24

	
(a)

	
To comply with the Law and all directions and requirements of the Authorities :

	
  

	
(a1)

	
relating to Biopolis (where applicable);

	
  

	
(a2)

	
relating to the use, occupation or otherwise of the Premises; or

	
  

	
(a3)

	
in respect of the observance or performance of the Tenant's Obligations,

whether to be complied with by the Landlord or the Tenant and notwithstanding any consent which the Landlord may grant under any clause in the Tenancy or otherwise.

	
  

	
(b)

	
To immediately inform the Landlord in writing of any notice received in relation to sub-clause (a) above.

Head Lease

	
2.25

	
To perform and observe the express and implied covenants on the Landlord's part in the head lease made between the President of the Republic of Singapore and the Landlord so far as they are not varied herein.

Hazardous Placement of Objects

	
2.26

	
Not to place, permit or suffer to be placed any object, article or thing by any window or balcony or any part of the Premises in a manner which in the Landlord's opinion may cause or is likely to cause any damage or injury to any property or person.

Nuisance

	
2.27

	
Not to do, permit or suffer to be done upon the Premises anything which in the opinion of the Landlord may be or become :

	
  

	
(a)

	
a nuisance, annoyance or cause damage or inconvenience to; or

	
  

	
(b)

	
an interference with the business or quiet or comfort of

the Landlord, its tenants or lessees or the occupiers of any adjoining or neighbouring premises.

Application of Restrictive Covenants

	
2.28

	
To comply with all restrictive covenants relating to the Premises as if they are also restrictive covenants relating to the Building or Biopolis, where the context so admits.

Indemnity

	
2.29

	
To be responsible :

	
  

	
(a)

	
for all loss, injury or damage whatsoever to any person or to the Building or Biopolis, and any moveable or immovable property, arising directly or indirectly out of or in connection with :

  

8

  

	
  

	
(a1)

	
the occupation or use of the Premises; or

	
  

	
(a2)

	
any act or omission (whether with or without the Landlord's consent), neglect or default of the Tenant, the Tenant's employees, agents, authorised persons or visitors; and

	
  

	
(b)

	
in respect of any act, matter or thing done, omitted to be done, permitted or suffered to be done, in contravention of the Tenant's Obligations,

AND to fully indemnify and keep indemnified the Landlord against all proceedings, costs, expenses, claims, losses, damage, penalties and liabilities arising out of the above.

Tenant's Insurance

	
2.30

	
The Landlord shall not be liable to the Tenant for any loss or damage, howsoever caused, to the Tenant's plant and machinery, fixtures and fittings, structures, installations, chattels, things and goods ("chattels"). The Tenant shall therefore insure the chattels against loss or damage.

District Cooling System

	
2.31

	
(a)

	
The Tenant shall allow the District Cooling System ("DCS") service provider, its agents, contractors and sub- contractors and their workmen a right to enter and work upon the Premises free of charge for the purpose of connecting, installing, inspecting, maintaining and refurbishing any chilled water pipes, pumps, valves, valve chambers, heat exchanger, pumps, meeting station, control system and other fittings in relation to DCS, where applicable.

	
  

	
(b)

	
The Tenant shall not move, disconnect, tamper with or in any way cause damage to any of the DCS equipment or fittings.

Landlord's Covenants

	
3

	
The Landlord covenants with the Tenant as follows :

Quiet Enjoyment

	
3.1

	
Subject to the Tenant performing and observing all the Tenant's Obligations, the Tenant may peaceably and quietly hold and enjoy the Premises without any unlawful interruption or disturbance from or by the Landlord.

General Services

	
3.2

	
(a)

	
To keep the exterior and roof of the Building and the lifts, entrances, passageways, staircases, common toilets and other conveniences intended for the use of the Tenant in repair and in sanitary and clean condition.

	
  

	
(b)

	
To keep the stairs and passageways leading to the Premises and the lifts and toilets sufficiently lit.

Property Tax

	
3.3

	
To pay property tax payable in respect of the Premises PROVIDED THAT if the rate of such property tax shall be increased whether by way of an increase in the annual value or an increase in the rate percent, then the Tenant shall pay such increase as provided under Clause 2.3.

  

9

  

 

Insurance of Building

	
3.4

	
To keep the Building insured against loss or damage by fire and insurance in the event of such loss or damage (unless resulting from some of Building act or default of the Tenant, the Tenant's employees, agents, authorised persons or visitors) to rebuild and reinstate the damaged part of the Building PROVIDED THAT such insurance shall not include the contents in the Building nor loss due to the Premises being rendered out of commission.

	
4

	
The Landlord and Tenant agree to the following :

Forfeiture of Tenancy

	
4.1

	
The Landlord is entitled to forfeit the Tenancy by entering the Premises or any part thereof, if:

	
  

	
(a)

	
the Rent, Service Charge, Air-Conditioning Charge or any other sums due under or by virtue of the Tenancy, or any part thereof is unpaid for fourteen (14) days after becoming payable (whether the same is formally demanded or not);

	
  

	
(b)

	
the Tenant is in breach of any of the Tenant's Obligations;

	
  

	
(c)

	
any writ of seizure and sale or its equivalent made in respect of the Premises is enforced by sale or by entry into possession;

	
  

	
(d)

	
the Tenant enters into liquidation, whether compulsory or voluntary (save for the purpose of reconstruction or amalgamation);

	
  

	
(e)

	
a bankruptcy petition is filed or a bankruptcy order is made against the Tenant;

	
  

	
(f)

	
the Tenant makes an assignment for the benefit of the Tenant's creditors;

	
  

	
(g)

	
the Tenant enters into any arrangement with its creditors by composition or otherwise; or

	
  

	
(h)

	
the Tenant suffers any distress, attachment or execution on or against the Tenant's goods,

PROVIDED THAT the above is without prejudice to the Landlord's other rights and remedies in respect of any breach of the Tenant's Obligations.

Service of Notices

	
4.2

	
Any written notice shall be sufficiently served if effected :

	
  

	
(a)

	
on the Landlord by registered post to its business address;

	
  

	
(b)

	
on the Tenant by registered or ordinary post to or by leaving or affixing it at the business address or the Premises NOTWITHSTANDING THAT it is returned by the post office undelivered;

	
  

	
(c)

	
by facsimile to the party to be served and the service shall be deemed to be made on the day of transmission if transmitted before 4 p.m. on a working day or 12 noon on a Saturday, but otherwise on the following working day; or

  

10

  

	
  

	
(d)

	
on the Solicitor for the party in the manner provided in this clause.

Service of Process

	
4.3

	
Any process, by writ, summons or otherwise, shall be sufficiently served if effected on :

	
  

	
(a)

	
the Landlord by registered post to its business address;

	
  

	
(b)

	
the Tenant by registered post to or by leaving or affixing it at the business address or the Premises NOTWITHSTANDING THAT it is returned by the post office undelivered; or

	
  

	
(c)

	
the Solicitor for the party in the manner provided in this clause.

Business Address

	
4.4

	
The business address for the purposes of clauses 4.2 and 4.3 shall be:

	
  

	
(a)

	
the business address of the Solicitor (if any) who is acting for the party in the matter or proceedings in connection with which the service of the notice or process in question is to be effected;

	
  

	
(b)

	
if the Tenant is a sole-proprietor or comprises of partners carrying or formerly carrying on business under a business name registered under the Business Registration Act, the principal or last known place of business; or

	
  

	
(c)

	
in the case of a body corporate, the registered or principal office of the body.

Refurbishment Works

	
4.5

	
(a)

	
The Tenant accepts the Premises with full knowledge that refurbishment and upgrading works are being or may be carried out in Biopolis ("Refurbishment Works").

	
  

	
(b)

	
The Tenant shall remove, relocate or modify, temporarily or permanently, every installation, fixture, fitting, device, equipment and article existing outside the Premises as the Landlord may specify for the purpose of :

	
  

	
(b1)

	
permitting the Landlord, its employees, agents or authorised persons to properly carry out the Refurbishment Works; or

	
  

	
(b2)

	
improving the appearance or aesthetics of the Building.

Consents

	
4.6

	
Wherever it is provided in the Tenancy that the Tenant shall not do an act or thing without the Landlord's prior written consent, the Landlord may in its absolute discretion :

	
  

	
(a)

	
refuse to grant consent without giving any reason, and without refunding any administrative fee paid; or

  

11

  

	
  

	
(b)

	
if it grants consent, in addition to the terms and conditions expressly provided (if any) in the relevant clause, impose terms and conditions including but not limited to any payment of monies, fees or deposit to the Landlord, and the restrictions in Section 17 of the Conveyancing and Law of Property Act shall not apply.

Landlord's Self-Help

	
4.7

	
(a)

	
In the event of any breach of any of the Tenant's  Obligations, the Landlord, in addition to its rights of forfeiture and any other rights and remedies, shall have absolute discretion to :

	
  

	
(a1)

	
repair, rectify or make good anything done or omitted to be done by the Tenant or perform any act which the Tenant is to perform under the Tenancy;

	
  

	
(a2)

	
demolish, remove, relocate or modify and confiscate any equipment, plant, machinery, fixtures, fittings, appliances, installations, obstructions, partitions, goods materials, articles or structures including but not limited to grilles, doors, gates, or tilings erected, constructed or substituted by the Tenant in the Premises or at the stairways, passageways or other common parts of the Building;

	
  

	
(a3)

	
reinstate the Landlord's fixtures or fittings with such materials as the Landlord may elect; or

	
  

	
(a4)

	
carry out such other remedial measures as the Landlord thinks necessary.

Nothing in this clause shall be deemed to place on the Landlord an obligation to exercise the above rights.

	
  

	
(b)

	
For the purpose of enabling the Landlord to exercise the above rights, the Tenant shall grant to the Landlord, its employees, agents and all persons authorised by it or them the right of entry with or without materials and appliances at anytime.

	
  

	
(c)

	
The Tenant shall pay to the Landlord :

	
  

	
(c1)

	
the costs of all such works and materials used by the Landlord together with an administrative charge (which shall be no less than the equivalent of 10% of the said costs) and any other charge prescribed by the Landlord; and

	
  

	
(c2)

	
if the Tenant yields up the Premises at the termination of the Term, by expiry or otherwise without reinstating it to the standard required under the Tenancy, the sum equivalent to the Rent, Service Charge, Air-Conditioning Charge, tax or other sums which the Landlord would have been entitled to receive from the Tenant had the period within which such reinstatement works are effected by the Landlord been added to the Term, and the same shall be recoverable from the Tenant as a debt.

  

12

  

Non-Waiver

	
4.8

	
The following shall not prejudice nor waive the Landlord's rights or remedies in respect of any breach of the Tenant's Obligations :

	
  

	
(a)

	
any failure or omission of the Landlord to exercise any of its rights as Landlord under the Tenancy or Law;

	
  

	
(b)

	
any receipt or acceptance of any Rent, Service Charge, Air-Conditioning Charge or other sums by the Landlord; or

	
  

	
(c)

	
any waiver, expressed or implied by the Landlord of any other breach of the same or any other Tenant's Obligations,

PROVIDED THAT the Landlord shall be under no obligation to enforce or impose any covenants, conditions or terms against any lessees or tenants of any premises comprised in Biopolis.

Landlord's Works

	
4.9

	
If the Landlord undertakes any work under the Tenancy or otherwise affecting the Premises, the Landlord may reinstate the Premises :

	
  

	
(a)

	
to the original state the Premises was in at the Commencement Date so far as possible; or

	
  

	
(b)

	
if it deems fit, with such materials and finishing as the Landlord may elect.

The Tenant shall bear all the costs and expenses for the reinstatement work. If the Landlord deems in its absolute discretion that such costs and expenses are to be borne by more than one person, the Landlord's apportionment shall be binding and conclusive and the Tenant agrees to pay his share as determined by the Landlord.

Exemption of Liability

	
4.10

	
The Landlord shall not be liable to the Tenant or his employees, agents, authorised persons or visitors, or his or their property in respect of any :

	
  

	
(a)

	
interruption in the services provided by the Landlord by reason of any :

	
  

	
(a1)

	
repair, maintenance, damage or Refurbishment Works; or

	
  

	
(a2)

	
mechanical or other defect or breakdown including but not limited to breakdown in electricity, gas, water and de-ionised water supply, pumps, air-conditioning, DCS supply and lifts;

	
  

	
(b)

	
act, omission, default, misconduct or negligence of the Landlord, its employees, agents and all persons authorised by it or them in connection with :

  

13

  

	
  

	
(b1)

	
the performance or purported performance of any service which the Landlord provides;

	
  

	
(b2)

	
the carrying out or purported carrying out of the Refurbishment Works;

	
  

	
(b3)

	
the exercise or purported exercise of the Landlord's rights under clause 2.17 or 4.9 or self-help under clause 4.7; or

	
  

	
(b4)

	
any accident, injury, loss or damage to the Tenant or his employees, agents, authorised persons or visitors, or his or their property;

	
  

	
(c)

	
loss, damage, injury, liability, claim, penalty, proceedings, cost, expense, or inconvenience that may be suffered by the Tenant or his employees, agents, authorised persons or visitors, or his or their property resulting from or in connection with :

	
  

	
(c1)

	
any breakage of or defect in any pipes, wires or other apparatus of the Landlord used in or about the Building;

	
  

	
(c2)

	
any subsidence or cracking of the ground floor slabs, production floor slabs or apron slabs of the Premises or the Building; or

	
  

	
(c3)

	
any defect, inherent or otherwise in the Premises or the Building.

Service Provider

	
4.10A

	
(a)

	
The Landlord shall not be liable to the Tenant or his employees, agents, authorised persons or visitors, or any other party for any loss, damage, cost or expense of any kind whatsoever and howsoever caused, whether arising under contract, tort (including without limitation negligence) or otherwise, with respect to:

	
  

	
(a1)

	
any products, services or information supplied or provided by any service provider or its employees, agents, servants or independent contractors (collectively "Service Provider");

	
  

	
(a2)

	
any act or omission, negligence, wilful default, misconduct or fraud of the Service Provider; and

	
  

	
(a3)

	
any interruption, error, failure or delay in the services provided by the Service Provider.

  

14

  

	
  

	
(b)

	
Without prejudice to sub-clause (a) above, the Landlord makes no representation or warranty, whether express or implied, as to the accuracy, timeliness, completeness, efficiency, suitability, merchantability, fitness for any particular purpose, satisfactory quality or compliance with description of any products, services or information provided by any Service Provider, Under no circumstance shall it be construed that the Landlord endorses, sponsors, certifies or is involved in the provision of such services, products or information and the Landlord shall not be liable in any way for any products obtained and/or purchased from or services rendered by any such Service Provider. The Tenant shall at all times rely on its own judgement and conduct its own investigations on and assessment of the Service Provider before making any decision to appoint or engage the Service Provider. The Tenant hereby warrants that no reliance has been placed by the Tenant on any statements or representations of the Landlord, in making the decision to appoint or engage the Service Provider.

Distress Act

	
4.11

	
For the purpose of the Distress Act, the Service Charge and Air- Conditioning Charge shall be deemed to be rent recoverable in the manner provided in the said Act.

Severability

	
4.12

	
If at any time any provision or any part of a provision of the Tenancy is or becomes illegal, invalid or unenforceable in any respect, the remaining provisions or parts of the provision (to the extent that they are severable from such illegal, invalid or unenforceable provisions or part of the provision) shall in no way be affected or impaired thereby.

Third Party Rights

	
4.13

	
A person who is not a party to the Tenancy shall have no right under the Contracts (Rights of Third Parties) Act to enforce any of the covenants, terms or conditions of the Tenancy.

Governing Jurisdiction and Law

	
4.14

	
The Tenancy shall be interpreted in accordance with the laws of Singapore and any legal proceedings, actions or claims arising from or in connection with the Tenancy shall be commenced in and heard before the courts of Singapore and the Tenant agrees to submit itself to the jurisdiction of the courts of Singapore.

  

15

  

SCHEDULE OF STATUTORY CONTROLS FOR FLATTED, RAMP-UP AND STACK-UP FACTORY CUSTOMERS

Contents

	
A.

	
Introduction

	
B.

	
List of Relevant Authorities

	
C.

	
Submission of Plans

	
D.

	
Guidelines on industrial Safety

	
E.

	
Compliance with Regulatory Requirements

	
F.

	
Application for Utilities

Printed February 2008

Schedule of Statutory Controls (Flatted, Ramp-Up & Slack-Up Factories)/February2008/SC3/ BL(IDG)

  

1

  

	
A.

	
Introduction

This schedule of statutory controls informs our customers of their obligations to the relevant governmental and statutory authorities ("Authorities"). It contains the conditions and requirements under the jurisdiction of the Authorities which our customers are legally bound to comply with, at our customers' own cost and expense.

Please note that the statutory controls listed in this schedule are not exhaustive and serve merely as a guide to help our customers phase in. The responsibility and onus still lies with our tenants or lessees to familiarise themselves with all the requirements of the Authorities.

The information contained in this schedule, which was prepared in June 2007, is subject to change. While every reasonable care has been taken in providing the information, JTC Corporation ("JTC") cannot be held responsible for any errors, inaccuracies or changes arising there-from.

Schedule of Statutory Controls (Flatted, Ramp-Up & Slack-Up Factories)/February2008/SC3/ BL(IDG)

  

2

  

	
B.

	
ist of Relevant Authorities

	
Advertisement Licensing Section (ALS):

Building and Construction Authority

MND Complex

Tower Block

5 Maxwell Road

Singapore 069110

Tel: 63257379/63257364

Fax; 63257150

	  	
Ensures the proper display of advertisements and signs on building facade

	  	  	  
	
Agri-food & Veterinary Authority of Singapore (AVA):

MND Complex

#01-01 Tower Block

5 Maxwell Road

Singapore 069110

Tel: 62221211

Fax: 62206068

	  	
Ensures a resilient supply of safe food as well as safeguards the health of animals and plants, and facilitates agri-trade for the well-being of the nation

	  	  	  
	
Central Building Plan Unit (CBPU):

National Environment Agency

Environmental Building

13th Storey

40 Scotts Road

Singapore 228231

Tel: 67327733

Fax: 67319725

	  	
Ensures environmental pollution is within regulatory limits

	  	  	  
	
Development Control Division (DCD):

Urban Redevelopment Authority

The URA Centre

45 Maxwell Road

Singapore 069118

Tel: 62216666

Fax; 62275069

	  	
Facilitates development by ensuring orderly and rational private sector development in accordance with URA's strategies and planning guidelines

	  	  	  
	
Drainage Department;

Public Utilities Board

Environment Building

17th Storey

40 Scotts Road

Singapore 228231

Tel: 67319988

Fax: 67319967

	  	
Ensures proper management of the drainage system, storm-water collection and water reclamation in Singapore

	  	  	  
	
Energy Market Authority (EMA);

Singapore Power Building

111 Somerset Road #15-05

Singapore 238164

Tel: 68358000

Fax: 68358020

	  	
Regulates the electricity and gas industry and district cooling services in Singapore

Schedule of Statutory Controls (Flatted, Ramp-Up & Slack-Up Factories)/February2008/SC3/ BL(IDG)

  

3

  

 

	
Fire Safety and Shelter Department (FSSD):

Singapore Civil Defence Force

91 Ubi Avenue

Singapore 408827

Tel: 62800000

Fax: 68481488

	  	
Formulates, implements and enforces regulations on fire safety and civil defence shelter matters

	  	  	  
	
Ministry of Health (MOH):

College of Medicine Building

16 College Road

Singapore 169854

Tel: 63259220

Fax: 62241677

	  	
Ensures medical excellence as well as promotes good health and reduce illnesses

	  	  	  
	
Occupational Safety and Health Division:

Ministry of Manpower

#03-02

18 Havelock Road

Singapore 059764

Tel: 64385122

Fax: 63171261

	  	
Formulates and cultivates good safety habits in all individuals, so as to create a strong safety culture at the workplace

	  	  	  
	
Sewerage Department:

Public Utilities Board

Environment Building

15th Storey

40 Scotts Road

Singapore 228231

Tel: 62824336

Fax: 67313023

	  	
Ensures the proper treatment and disposal of wastewater in Singapore

	  	  	  
	
SPRING Singapore:

Information Resource Centre

2 Bukit Merah Central

Singapore 159835

Tel: 6279 3920

Fax: 6377 0669

	  	
Nurtures a pro-business environment that encourages enterprise formation and growth, and facilitates the growth of industries,

	  	  	  
	
Water Department:

Public Utilities Board

Environment Building

15th Storey

40 Scotts Road

Singapore 228231

Tel: 67327733

Fax: 62352118

	  	
Ensures the proper management of water demand in Singapore

Schedule of Statutory Controls (Flatted, Ramp-Up & Slack-Up Factories)/February2008/SC3/ BL(IDG)

  

4

  

	
C.

	
Submission of Plans

	
  

	
C1

	
You are required to submit the floor layout plans of your factory, and plans for air conditioning works and fire automatic system (e.g. heat / smoke detector, sprinkler system) in accordance with the terms of the tenancy or lease. You should proceed with the preparation and submission of the plans in accordance with the procedures stated in the guide on "Submitting Plans for Building and Other Works".

	
  

	
C2

	
You must not install any air-conditioning system, ventilation system, electrical system, telecommunication equipment, plant, machinery, fixtures, fittings or other installations in the Premises until the plans have been endorsed by the Plan Endorsement Unit of JTC (JTC's PEU).

	
  

	
C3

	
You must also obtain prior written consent from JTC's PEU if you intend to carry out alterations, additions, improvements or erections at or in the Premises or any part of the building, regardless of whether they are temporary or permanent structures. These modifications include but are not limited to:

	
  

	
C3.1

	
Repositioning or closing up of openings;

	
  

	
C3.2

	
Demolition, puncturing or hacking of, or hammering, nailing, bolting, drilling, screwing or anchoring on or into walls, floors, ceilings, pillars or flues;

	
  

	
C3.3

	
Relocation of door; and

	
  

	
C3.4

	
Erection of partitions, awnings, dry walls or brick walls.

	
  

	
C4

	
All additions and alterations to the Premises must be endorsed by JTC's PEU, and approved by the relevant Authorities such as the Building and Construction Authority (BCA), Fire Safety and Shelter Department (FSSD), and Urban Redevelopment Authority (URA), before you can commence such works.

Schedule of Statutory Controls (Flatted, Ramp-Up & Slack-Up Factories)/February2008/SC3/ BL(IDG)

  

5

  

	
  

	
C5

	
For works such as reconstruction / extension, additions and alteration works, you may submit plans to JTC's PEU for endorsement under the URA Plan Lodgement Scheme. You are advised to refer to Customer Portal, Krypton Services under eServices on JTC website (www.itc.gov.sq) on the details of the scheme before deciding on the channel of plan submission.

	
  

	
C6

	
You must not commence work until a permit for the commencement of works has been issued by BCA. A Qualified Person as defined under the Building Control Act (a professional engineer or registered architect) must be engaged to assist in the following certification process:

 

	
Qualified Person submits plans to JTC's PEU for endorsement (endorsement docs not amount to approval of plans by JTC)

	

â

	
Qualified Person submits plans to the Authorities (URA BCA, FSSD, etc ) for approval

	

â

	Authorities grant permits on work commencement
	

â

	
Upon completion of works, Qualified Person applies to BCA for CSC/TOP

	

â

	
Qualified Person obtains permit to operate factory

 

	
  

	
C7

	
With regards to CSC or TOP, you are advised not to do, permit or suffer to be done anything which will affect the structure of the building and which may delay or prevent the issuance of CSC or TOP from BCA with respect to the building.

CSC: Certificate of Statutory Completion

TOP: Temporary Occupancy Permit

Schedule of Statutory Controls (Flatted, Ramp-Up & Slack-Up Factories)/February2008/SC3/ BL(IDG)

  

6

  

	
D.

	
Guidelines on Industrial Safety

	
  

	
D1

	
Fire Safety

To safeguard the Premises and ensure that your operations are fire-safe, you must observe the following guidelines of FSSD and submit plans to FSSD for approval:

	
  

	
D1.1

	
Equip the Premises with appropriate fire-fighting equipment, and ensure that you maintain in good and working condition at all times, all fire alarm and extinguishing systems, air conditioning systems, ventilation systems, exit and emergency lighting, signs, and other electrical wiring, equipment and installations installed by JTC.

	
  

	
D1.2

	
If the existing fire alarm and extinguishing system in the Premises does not suit or is inadequate for your activities, or does not comply with the requirements of FSSD due to modifications of the Premises, you must carry out the necessary modification works only after obtaining JTC's consent.

These necessary modification works include but are not limited to:

	
  

	
(i)

	
Addition, replacement or removal of wirings, pipings, fittings and sprinkler heads;

	
  

	
(ii)

	
Adjustment of temperature settings; and

	
  

	
(iii)

	
Connection of heat detectors and fixtures to JTC's common fire alarm system and extinguishing system.

	
  

	
D1.3

	
For premises with additional false ceilings, you must:

	
  

	
(i)

	
Lower the heat / smoke detectors or install an additional layer of heat / smoke detectors below the false ceiling; and

	
  

	
(ii)

	
Install an additional layer of sprinklers by connecting to the tee-off provided at the main distribution pipe.

Schedule of Statutory Controls (Flatted, Ramp-Up & Slack-Up Factories)/February2008/SC3/ BL(IDG)

  

7

  

	
  

	
D1.4

	
Under the Fire Safety Act enforced by FSSD:

	
  

	
(i)

	
All. emergency exits at the Premises must remain unlocked at all times; and

	
  

	
(ii)

	
You must not do nor permit anything that may cause any obstruction in the accesses, stairways, passageways, pipes, drains and other common areas of the building.

	
  

	
D2

	
Exit and Emergency Lightings

In accordance with FSSD's stipulations, you must install:

	
  

	
D2.1

	
Exit lighting and exit signs at exit passageways and exits of the Premises; and

	
  

	
D2.2

	
Emergency lighting in the production area and toilets of the Premises.

	
  

	
D3

	
Certification of Internal Hoist (For Woodlands Spectrum 1 Only)

You are required to obtain certification for your internal hoist from the Ministry of Manpower (MOM) every six months.

	
  

	
D4

	
Transportation of Petroleum and Flammable Materials

You shall ensure that no vehicle containing or carrying any one or more individual containers of petroleum or flammable material exceeding 250 litres enters or is driven into or upon:

	
  

	
(i)

	
The Premises; or

	
  

	
(ii)

	
The building in which the Premises is situated; or

	
  

	
(iii)

	
Any ramp leading to the Premises; or

	
  

	
(iv)

	
Any ramp leading to any building or any part thereof in which the Premises is situated, if such building or part thereof is used as a multi-story car park, multi-story workshop and factory or as a factory within a building.

Schedule of Statutory Controls (Flatted, Ramp-Up & Slack-Up Factories)/February2008/SC3/ BL(IDG)

  

8

  

	
E.

	
Compliance with Regulatory Requirements

	
  

	
E1

	
Preliminary Clearance

You must comply with the requirements of the Central Building Plan Unit (CBPU) of National Environment Agency (NEA), Public Utilities Board (PUB) and other Authorities pursuant to your application for preliminary clearance,

	
  

	
E2

	
Change of Use of Premises

Changing the use of the Premises can render your operations incompatible with your neighbours' and cause a breach of your agreement(s) with JTC and/or violate the regulations and requirements of the Authorities such as CBPU of NEA, the Water Department of PUB and URA.

If you wish to change the use of the Premises, you must submit an application for the change of use for JTC's approval, and seek clearance from the Authorities, such as CBPU of NEA and URA.

	
  

	
E3

	
URA's "60/40 Rule"

URA's guideline specifies that at least 60% of the total gross floor area (GFA) of the Premises should be set aside for industrial / warehousing activities and ancillary stores. The remaining GFA can be used for offices, neutral areas, communal facilities and other such practices endorsed in writing by JTC and the Authorities

You must not use the Premises as a commercial office for purposes unrelated to the authorised / permitted use under your Tenancy / Lease.

You are advised to check URA's website (www.ura.gov.sg) on the latest updates to the "60/40 rule".

	
  

	
E4

	
Drainage and Sewerage Systems

You must undertake the construction of an internal drainage system within the Premises to the reasonable satisfaction of JTC. The Drainage Department and Sewerage Department, both of PUB, require you to ensure that:

	
  

	
E4.1

	
All water collected in the Premises is discharged into the public drains and sewers; and

	
  

	
E4.2

	
No silt, oil, chemicals, debris, etc. is discharged into any public drains, sewers or watercourses.

Schedule of Statutory Controls (Flatted, Ramp-Up & Slack-Up Factories)/February2008/SC3/ BL(IDG)

  

9

  

Before you carry out any connection works, you must obtain the sewerage and drainage interpretation plans from the Drainage Department and Sewerage Department and consult them with regard to the existing sewerage and drainage systems.

	
  

	
E5

	
Discharge of Trade Effluent

To facilitate the commencement of your operations, you must complete the attached form "Application for Written Permission and Permit to Discharge Trade Effluent" for permission to discharge trade affluent into the public sewers, and submit it to the Head, Central Building Plan Unit, National Environment Agency, 12th Storey, Environment Building, 40 Scotts Road, Singapore 228231 (Tel No. 67327733).

	
  

	
E6

	
Fire Alarm System

In accordance with the requirements of the Fire Safety and Shelter Department (FSSD), you must engage a registered electrical consultant or professional engineer to undertake the planning, design, supervision and maintenance of the fire alarm / heat detector, including any alterations of the existing automatic fire alarm and sprinkler system installation.

The electrical consultant or professional engineer must submit one set of the fire alarm drawings to FSSD for approval. A relevant Professional Engineer, registered with the Professional Engineers Board of Singapore, must sign all air-conditioning, fire alarm and sprinkler system plans.

	
  

	
E7

	
Factory Inspectorate

In order to obtain a factory licence before you commence operations, you must complete and submit the attached form, "Particulars to be Submitted by Occupiers or Intending Occupiers of Factories" directly to the Chief Inspector of Factories, Occupational Safety and Health Division, Ministry of Manpower, 18 Havelock Road # 03-02, Singapore 059764 (Tel No. 64385122).

	
  

	
E8

	
Advertisement and Licensing

If you occupy an entire floor of the Building, you may install signboards on the Building's external parapet walls after obtaining prior approval from JTC's PEU and a permit from the Advertisement Licensing Section (ALS) of Building and Construction Authority (BCA).

Schedule of Statutory Controls (Flatted, Ramp-Up & Slack-Up Factories)/February2008/SC3/ BL(IDG)

  

10

  

All company signboards, installed at locations other than those above the doors of the Premises, must be approved by JTC. If you wish to install lighted or normal company signboards, you must submit three copies of the layout plan to JTC's PEU for approval. Advertisement and flickering neon signboards are not allowed.

To assist you in your recruitment efforts, you may display recruitment banners at designated places in the Estate. To do this, you are required to:

	
  

	
E8.1

	
Submit details of the banner and its location plan to the Flatted Factory and Business Parks Department of JTC; and

	
  

	
E8.2

	
Obtain a permit from the ALS of BCA after getting JTC's approval.

Please note that only one banner is allowed at any one time and the dimension of the banner must not exceed 1m x 6m.

	
  

	
E9

	
Research and Development (Medical)

If the authorised / permitted use under your Tenancy / Lease will include medical or biological R&D activities that involves the testing of animals or other research that may have health implications, you must obtain the necessary prior approvals from the Ministry of Health (MOH) and Agri-food & Veterinary Authority of Singapore (AVA).

	
  

	
E10

	
Activities Involving the Use of Explosive and Hazardous Materials

	
  

	
E10.1

	
For activities that involve the use and / or storage of flammable / combustible liquid of less than 250 litres and / or other flammable materials (all classes) not stored in a safety cabinet, you must obtain the in-principle clearances from the Fire Safety and Shelter Department (FSSD) through the Qualified Person (QP) and Registered Inspectors (Rl) before submitting the actual building plan for approval under the Self-Regulation Scheme.

Schedule of Statutory Controls (Flatted, Ramp-Up & Slack-Up Factories)/February2008/SC3/ BL(IDG)

  

11

  

	
  

	
E10.2

	
For activities that involve the use and / or storage of flammable materials of 250 litres or more, you are required to consult FSSD and provide the following information:

	
  

	
(i)

	
Layout plan of the Premises indicating the intended location of storage and type of fire protection system provided;

	
  

	
(ii)

	
Details of production processes that require the use of flammable materials; and

	
  

	
(iii)

	
Types of flammable materials and quantities to be stored in the Premises.

	
  

	
E10.3

	
Once you have obtained in-principle no objection from FSSD, you are required to follow up with the necessary submissions through the QP to get clearances / approvals from the Authorities.

	
  

	
E11

	
Special Conditions (For Food Companies Only)

	
  

	
E11.1

	
The sprinkler heads in the sprinkler system for the Premises are suitable for temperature not exceeding 79 degrees Celsius for the production floor and 68 degrees Celsius for the toilets.

	
  

	
E11.2

	
You must ensure that any waste water discharged from the Premises complies with NEA's regulations, guidelines and limits regarding trade effluent discharge into the sewer system.

	
  

	
E11.3

	
You must separately collect and dispose any concentrated oils, fats, grease and other chemicals, toxic or otherwise, from the Premises in accordance with NEA's guidelines and regulations.

	
  

	
E11.4

	
You must ensure that any odour, fume or smoke discharged from the Premises comply with NEA's guidelines and regulations. In the event that such discharge, notwithstanding compliance with NEA's guidelines and regulations, becomes a nuisance or brings inconvenience to JTC, other tenants or lessees or occupiers of adjoining or neighbouring premises, you must install a proper air filtration system and if necessary, improve your production processes, to the reasonable satisfaction of JTC.

Schedule of Statutory Controls (Flatted, Ramp-Up & Slack-Up Factories)/February2008/SC3/ BL(IDG)

  

12

  

	
  

	
E11.5

	
No washing, preparation or packaging of any raw material, food or final product is allowed in the common area of the Premises.

	
  

	
E12

	
Code of Practices

You must abide by the latest Code of Practices for various industries or usage. The Code of Practices may be obtained from SPRING Singapore.

	
  

	
E13

	
Occupational Safety and Health

The Ministry of Manpower (MOM) has unveiled a new occupational safety and health framework to make possible quantum improvements in the safety and health at work.

Before any work is carried out, you must conduct risk assessments to:

	
  

	
E13.1

	
Identify safety and health hazards associated with work activities;

	
  

	
E13.2

	
Assess the severity or consequences from these hazards and the likelihood of occurrence of accident or ill health;

	
  

	
E13.3

	
Determine the risk level;

	
  

	
E13.4

	
Take measures to prevent or control the hazards; and

	
  

	
E13.5

	
Mitigate the risks as reasonably practicable.

To assist you in conducting the assessment, MOM has published guidance materials on its website (www.mom.qov.sg).

Schedule of Statutory Controls (Flatted, Ramp-Up & Slack-Up Factories)/February2008/SC3/ BL(IDG)

  

13

  

	
F. 

	
Application for Utilities

	
  

	
F1

	
Water Supply

You must approach the Public Utilities Board (PUB) for all plumbing requirements. All plumbing required for additional water supply, including the installation of a water sub-meter, must be carried out by you.

You must submit four copies of sketch plans prepared by a licensed plumber showing the section and layout of the plumbing direct to the Water Department of PUB to assist your application for a water sub-meter. Water supply should not be turned on until a water meter is installed by PUB.

	
  

	
F2

	
Electricity

	
  

	
F2.1

	
For Flatted and Ramp-up Factories Only

	
  

	
(i)

	
You must engage an Energy Market Authority (EMA) licensed electrical worker to submit two sets of electrical single-line diagrams and electrical layout plans to and in accordance with the requirements of JTC's Facilities Management Section, for endorsement before an application is made to SP Services Ltd to open an account for electricity connection.

	
  

	
(ii)

	
Please contact JTC's Facilities Management Section at The JTC Summit, 8 Jurong Town Hall Road Singapore 609434 (Fax No: 6885 4259) for the requirements.

	
  

	
F2.2

	
For Stack-up Factories Only

	
  

	
(i)

	
You must engage an EMA licensed electrical worker to submit two sets of electrical single-line diagrams and electrical layout plans to and in accordance with the requirements of JTC's Facilities Management Section, for endorsement before an application is made to SP Services Ltd to open an account for electricity connection.

 

  

14

  

 

	
  

	
(ii)

	
Please contact JTC's Facilities Management Section at The JTC Summit, 8 Jurong Town Hall Road Singapore 609434 (Fax No: 6885 4259) for the requirements.

	
  

	
(iii)

	
All electrical installations and connections must be carried out by an EMA licensed electrical worker. Such installations may commence only after you have submitted an electricity application to SP Services Ltd and obtained their written approval.

	
  

	
(iv)

	
If you require an electrical design load higher than that already available in the vicinity, you must make an application to SP Services Ltd. Such an application will only be considered by SP Services Ltd if there is excess capacity, and if approved, will be subject to the terms and conditions stipulated by them.

	
  

	
(v)

	
You will tap your electrical supply from Power Grid Ltd's switchboard found on the ground floor of the block in which the Premises is located. There are dedicated electrical risers for you to connect the power cable from Power Grid Ltd's switchboard to the intake switchboard at your factory unit.

Schedule of Statutory Controls (Flatted, Ramp-Up & Slack-Up Factories)/February2008/SC3/ BL(IDG)

  

15

  

 

	Please quote our reference when replying

Our Ref: JTC(L) JTC(L)BV3600/8

	

	
11 January 2010

	
JTC Corporation

	  	
The JTC Summit

	  	
8 Jurong Town Hall Road

	  	
Singapore 609434

	
ES CELL INTERNATIONAL PTE LTD

	  
	
60 Biopolis Street

	
JTC hotline     1800 568 7000

	
Genome #01-03

	
main line          (65) 6560 0056

	
Singapore 138672

	
facsimile          (65) 6565 5301

	
Attention: Ms Susan Lourdes

	
website           www.jtc.gov.sg

Dear Ms Lourdes

RENEWAL OFFER OF TENANCY FOR OFFICE SPACE KNOWN AS PRIVATE LOT A1857102 AT 60 BIOPOLIS STREET GENOME UNIT #01-03 SINGAPORE 138672

	
1

	
We are pleased to offer a tenancy of the Premises subject to the covenants, terms and conditions in the annexed Memorandum of Tenancy Biopolis (Office/Retail) ("the MT") and in this letter (collectively called "the Offer").

	
2

	
2.1           The Premises

Private Lot A1857102 also known as Unit #01-03 ("the Premises") in 11 Biopolis Way, Genome ("The Building") Singapore 138667.

	
2.2

	
Term of Tenancy

1 year ("the Term") with effect from 12 January 2010 ("the Commencement Date").

	
2.3

	
Tenancy

	
  

	
(a)

	
Your due acceptance of the Offer in accordance with paragraph 3 of this letter shall, together with the Offer, constitute a binding tenancy agreement ("the Tenancy").

	
  

	
(b)

	
In the event of any inconsistency or conflict between any covenant, term or condition of this letter and the MT, the relevant covenant, term or condition in this letter shall prevail.

	
2.4

	
Area

Approximately 55.70 square metres ("the Area").

	
LO_TR(FF-Single Site) 30.016+MT 27.09/30 June 09/LGD-GO+yy+CPD-KGS+LGL+CCW

	
Page 1

 

  

  

  

 

 

	
2.5

	
Building Rent1

$35.05 per square metre per month ("Building Rent1") on the Area, to be paid without demand and in advance without deduction on the 1st day of each month of the year (i.e. 1st of January, February, March, etc.). After your first payment is made in accordance with paragraph 3 of this letter and the attached Payment Table, the next payment shall be made on 1 February 2010.

	
2.6

	
Service Charge

$11.60 per square metre per month ("Service Charge") on the Area, as charges for services rendered by us, payable by way of additional and further rent without demand on the same date and in the same manner as the Building Rent1, subject to our revision from time to time.

	
2.7

	
Security Deposit/Banker's Guarantee

Ordinarily we would require a tenant to lodge with us a security deposit equivalent to three (3) months' Building Rent1 and Service Charge. However, as payment by GIRO has been made a condition with which you must comply under paragraph 3 of this letter, you shall, at the time of your acceptance of the Offer, be required to place with us a deposit equivalent to one (1) month's Building Rent1 and Service Charge ("Security Deposit") as security against any breach of the covenants, terms and conditions in the Tenancy, as follows :

	
  

	
(a)

	
The Security Deposit may be in the form of cash or acceptable Banker's Guarantee in the form attached (effective from 12 January 2010 to 11 April 2011), or such other form of security as we may in our absolute discretion permit or accept.

	
  

	
(b)

	
The Security Deposit shall be maintained at the same sum throughout the Term and shall be repayable to you without interest, or returned to you for cancellation, after the termination of the Term (by expiry or otherwise) or expiry of the Banker's Guarantee, as the case may be, subject to appropriate deductions or payment to us for damages or other sums due under the Tenancy.

	
  

	
(c)

	
If the Service Charge is increased or any deductions are made from the Security Deposit, you shall immediately pay the amount of such increase or make good the deductions so that the Security Deposit shall at all times be equal to one (1) month's Building Rent1 and Service Charge.

	
  

	
(d)

	
If at any time during the Term, your GIRO payment is discontinued, then you shall place with us, within two (2) weeks of the dale of discontinuance of your GIRO payment, the additional sum equivalent to two (2) months' Building Rent1 and Service Charge, so that the Security Deposit shall at all limes be equal to three (3) months' Building Rent1 and Service Charge for the remaining period of the Term.

______________________

1 Building Rent in this context refers to rent in the Memorandum of Tenancy.

 

 

	
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Page 2

 

  

  

  

 

 

	
2.8

	
Mode of Payment

	
  

	
(a)

	
Your first payment to be made with your letter of acceptance in accordance with paragraph 3 of this letter and the attached Payment Table shall be by non-cash mode (eg. Cashier's Order, cheque).

	
  

	
(b)

	
Thereafter during the Term, you shall pay Building Rent1, Service Charge and GST at prevailing rate by Interbank GIRO or any other mode to be determined by us.

	
  

	
(c)

	
You have an existing account with us from which we shall deduct the aforesaid payments. You are therefore not required to submit a duly completed GIRO form as part of the Mode of Due Acceptance. But if you wish to have separate GIRO account to meet the aforesaid payments, please complete the GIRO deduction form enclosed.

	
  

	
(d)

	
However, pending finalisation for the GIRO arrangement, you shall pay Building Rent1, Service Charge and GST at prevailing rate as they fall due by cheque or Cashier's Order.

	
2.9

	
Authorised Use

You shall use the Premises for the purpose of Office only and for no other purpose whatsoever ("the Authorised Use").

	
2.10

	
Loading Capacity

	
  

	
(a)

	
Normal (Ground & Non-ground) Floor Premises:

You shall comply and ensure compliance with the following restrictions:

	
  

	
(al)

	
maximum loading capacity of the goods lifts in the Building; and

	
  

	
(a2)

	
maximum floor loading capacity of 10 kiloNewtons per square metre of the Premises on the 1st storey of the Building PROVIDED THAT any such permitted load shall be evenly distributed.

	
  

	
(b)

	
You shall therefore, subject to our prior written consent, provide at your own cost suitable and proper foundation for all machinery, equipment and installation at the Premises.

	
2.11

	
Reinstatement of Premises

You shall reinstate the Premises in accordance with clauses 2.15 and 2.22 of the MT. The required reinstatement works shall be conveyed to you after an inspection of the Premises.

 

 

	
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Page 3

 

  

  

  

 

 

	
2.12

	
Premature Termination

	
  

	
(a)

	
The Landlord may by at least three (3) months' notice in writing, terminate the Tenancy and immediately upon the expiration of such notice as aforesaid and the Tenant's full compliance with such reasonable terms and conditions as may be stipulated in writing in the aforesaid notice (if any), the Tenancy shall cease and determine.

	
  

	
(b)

	
The Tenant may by at least three (3) months' notice in writing, terminate the Tenancy subject to the Landlord's consent. The Landlord's aforesaid consent may be granted upon such reasonable terms and conditions to be stipulated in writing to the Tenant (if any). Immediately upon the expiration of such notice and the Tenant's full compliance with such terms and conditions as aforesaid (if any), the Tenancy shall cease and determine.

	
  

	
(c)

	
The Tenant may instead terminate the Tenancy by giving the Landlord less than 3 months' notice by payment to the Landlord of three (3) months' rental in lieu thereof subject to the Landlord's consent. The Landlord's aforesaid consent may be granted upon such reasonable terms and conditions to be stipulated in writing to the Tenant (if any). Immediately upon the Landlord's receipt of the said notice and said monies and, the Tenant's full compliance with such terms and conditions as aforesaid (if any), the Tenancy shall cease and determine.

	
  

	
(d)

	
In whichever event of sub-clause 2.13 (a), 2.13(b) or 2.13(c) above,

	
  

	
(i)

	
The cessation and determination of the Tenancy is without prejudice to the rights and remedies of either party against the other in respect of any antecedent claim(s) in connection with or, breach of covenant(s)/term(s)/condition(s) of the Tenancy (including this clause).

	
  

	
(ii)

	
At the cessation and determination of the Tenancy, the Security Deposit shall be repayable by the Landlord to the Tenant without interest or, in the case of a Security Deposit placed by way of a Banker's Guarantee, returned by the Landlord to the Tenant for cancellation - in both cases, subject to appropriate deductions by and/or payments to the Landlord for damages or any other sums due under the Tenancy (including this clause).

	
  

	
(iii)

	
At the cessation and determination of the Tenancy, the Premises shall be yielded up to the Landlord forthwith, reinstated and as stipulated under the Tenancy, unless otherwise mutually agreed in writing. Failing which, the Landlord may recover all costs and expenses it incurs in carrying out or causing such decontamination and reinstatement works to be carried out including any tests thereto the Landlord deems necessary.

 

 

	
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2.13

	
Not to:

	
  

	
(a)

	
make any application for conversion under Part IV of the Limited Liability Partnerships Act 2005 (as may be amended or revised from time to time); or

	
  

	
(b)

	
pass any resolution or do any act which may result in the issuance by the Registrar of Companies of a notice of amalgamation under Part VII of the Companies Act (as may be amended or revised from time to time) which may cause the Premises or the tenancy to be transferred to or vested in any amalgamated entity,

without our prior written consent. If we in our absolute discretion grant any such consent, we shall have the absolute discretion to impose terms and conditions. The restrictions in section 17 of the Conveyancing and Law of Property Act (Chapter 61) shall not apply.

	
2.14

	
Without prejudice and in addition to clause 4.10 of the MT :

	
  

	
(a)

	
you shall take the Premises on an "as is where is" basis, including any defects (latent, inherent or otherwise) and are deemed to have full notice and knowledge of its state and condition and shall execute such works as may be required to be done or as you may deem necessary (subject to our prior written consent) in respect of the state and condition;

	
  

	
(b)

	
we shall also not be liable to you or your employees, agents, authorized persons or visitors, or you or their property in respect of any occurrence (including acts of terrorism), or any representations, promises or warranties with respect to the Premises.

	
  

	
(c)

	
you shall also not hold us in any way liable for any loss of peaceful or quiet possession or enjoyment of the Premises in relation to the events or circumstances stipulated in clause 4.10 of the MT or paragraphs (a) or (b) above.

For avoidance of doubt, the word "otherwise" in clause 4.10(c)(c3) of the MT includes latent defects.

	
3

	
Mode of Due Acceptance

	
  

	
(a)

	
The Offer shall lapse if we do not receive the following by 25 January 2010:

	
  

	
(a 1)

	
Duly signed letter of acceptance (in duplicate) of the Offer, in the form set out in the Letter of Acceptance attached.

(Please date as required in your letter of acceptance)

	
  

	
(a2)

	
Payment of the sum set out in the Payment Table attached.

 

 

	
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4

	
You may submit your acceptance and payment by post or if you wish to make a submission personally, you may do so at our Contact Centre at The JTC Summit at 8 Jurong Town Hall Road. Please bring a copy of this letter when making your submission.

	
5

	
Please note that payments made prior to your giving us the other items listed above may be cleared by and credited by us upon receipt. However, if those other items are not forthcoming from you within the time stipulated herein, the Offer shall lapse and there shall be no contract between you and us arising hereunder. Any payments received shall then be refunded to you without interest and you shall have no claim of whatsoever nature against us.

	
6

	
Variation to the Tenancy

Any variation, modification, amendment, deletion, addition or otherwise of the Offer shall not be enforceable unless agreed by both parties and reduced in writing by us. No terms or representation or otherwise, whether expressed or implied, shall form part of the Offer other than what is contained herein.

	
7 

	
Season Parking

The carpark for Biopolis is currently managed by Metro Parking (S) Pte Ltd, and you will have to observe and be bound by all the rules and regulations governing the use and operation of the carpark. You are requested to contact Metro Parking (S) Pte Ltd at 1 Lorong 2 Toa Payoh, #02-01, Singapore 319637 (Tel: 6334 7773 Ext. 820 - 823; Fax: 6334 7787) for information and application of season air-parking.

	
8

	
Please also note that our granting of your request/application herein docs not at any time prejudice or waive any of our rights or remedies for breaches of your obligations to us. Any waiver by us, to be effective, must be clearly and specifically stated in writing.

	
9

	
To guide and assist you, we enclose a Schedule of Statutory Controls for Flatted Factory Occupants.

	
10

	
Should you have any queries in the mean time, please contact me.

Yours sincerely

/s/ Benjamin Tan

Benjamin Tan

Senior Officer

Biomedical Department

Biomedical and Chemicals Cluster

DID: 6885 5443 Fax: 6885 5891

E-mail: tanzrb@jtc.gov.sg

ENCS:  [ Payment Table   Specimen BG        Specimen Acceptance Form

                MT (Biopolis   Office/Retail) Schedule of Statutory Controls (SC2)]

 

 

	
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	Please quote our reference when replying

Our Ref: JTC(L)BV3600/8

	

	
20 January 2010

	  
	  	
JTC Corporation

	  	
The JTC Summit

	  	
8 Jurong Town Hall Road

	  	
Singapore 609434

	
ES CELL INTERNATIONAL PTE LTD

	  
	
60 Biopolis Street

	
JTC hotline     1800 568 7000

	
Genome #01-03

	
main line          (65) 6560 0056

	
Singapore 138672

	
facsimile          (65) 6565 5301

	
Attn: Ms Susan Lourdes

	
website            www.jtc.gov.sg

Dear Ms Susan

AMENDMENT TO THE RENEWAL OFFER OF TENANCY FOR OFFICE SPACE KNOWN AS PRIVATE LOT A1857102 AT 60 BIOPOLIS STREET GENOME UNIT #01-03 SINGAPORE 138672 ("Premises")

	
1.

	
We refer to our letter of renewal offer of tenancy dated 11 January 2010 ("our Offer Letter").

	
2.

	
Clause 2.1 of our Offer Letter shall be amended as follows:

	
  

	
2.1

	
The Premises

Private Lot A1857102 also known as Unit #01-03 ("the Premises") in 60 Biopolis Street, Genome ("The Building") Singapore 138672

	
3.

	
Please note that except as expressly provided in paragraph 2 above, our Offer Letter remains unchanged.

 

 

LoO (Office) - January 2010

 

 

  

  

  

 

 

	
4.

	
Please reference to our Offer Letter and this Amendment Letter in your acceptance letter.

Yours sincerely

/s/ Tan Zhi Rong Benjamin

Tan Zhi Rong Benjamin

Senior Officer

Biomedical Dept

Biomedical & Chemicals Cluster

JTC CORPORATION

DID: 6885 5443

FAX: 6565 5301

E-mail: tanzrb@jtc.gov.sg

LoO (Office) - January 2010

  

  

  

 

25 January 2010

Biomedical Department

Biomedical & Chemicals Cluster

The JTC Summit

8 Jurong Town Hall Road

Singapore 609434

Attention: Mr Tan Zhi Rong Benjamin

Dear Mr Benjamin,

RENEWAL OFFER OF TENANCY FOR OFFICE SPACE ON PTE LOT A1857102 AT 60 BIOPOLIS STREET #01-03 GENOME, SINGAPORE 138672

We refer to your letter of Offer and the e-Statement letter, both dated 11 January 2010 for the tenancy and subsequent amendment letter dated 20 January 2010. We hereby confirm acceptance of the covenants, terms and conditions of the Offer and e-Statement letter, including your email confirmation dated 22 January 2010 regarding the payment table.

We are currently on GIRO and are agreeable to use our existing cash deposit of S$2,598.41 (1 month's deposit) as confirmation of our acceptance.

We understand and agree that we will only be able to view our Statement of Accounts (SA) in Krypton and confirm that the following email addresses are the authorized recipients to receive the email notification to view our SA or e-Statement in Krypton.

Email address 1: aleong@escellinternational.com

Email address 2: slourdes@escellinternational.com

Thank you.

	
For and on behalf of:

	  	
in the presence of:

	 
	  	  	  	 
	/s/ Bruce Davidson	  	/s/ Suzan Lourdes	 
	
ES Cell International Pte Ltd

	  	  	 
	
Bruce Davidson

	  	
Suzan Lourdes

	 
	
General Manager & CSO

	  	
NRIC No: S6942897E

	 

ES Cell International Pte Ltd

60 Biopolis Street, #01-03 Genome, Singapore 138672

Telephone: +65 6774 9533 Facsimile: +65 6774 5077

Web: www.escellinternational.comex10_47.htm

Exhibit 10.47

ORTHOCYTE CORPORATION

2010 STOCK OPTION PLAN

ARTICLE I

GENERAL

	
  

	
1.

	
PURPOSE

This OrthoCyte Corporation 2010 Stock Option Plan (the “Plan”) is intended to increase incentive and to encourage stock ownership on the part of selected key officers, directors, employees, consultants, professionals, and other individuals whose efforts may aid OrthoCyte Corporation, a California corporation (the “Company”) or any other corporations that are or which may become subsidiaries or a parent of the Company.  Except where the context obviously requires otherwise, as used in this Plan, the term “Company” includes OrthoCyte Corporation, a California corporation, and any corporation that is or becomes a parent or subsidiary, as defined in Section 425 of the Internal Revenue Code of 1986, as amended (the “Code”), of OrthoCyte Corporation.  It is intended that certain options granted pursuant to the Plan shall constitute incentive stock options within the meaning of Section 422(b) of the Code and that certain other options granted pursuant to the Plan shall not constitute incentive stock options (“nonqualified stock options”).

	
  

	
2.

	
ADMINISTRATION

The Plan shall be administered by the Company’s Board of Directors (the “Board”) or, in the discretion of the Board, by a committee (the “Committee”) of not less than two members of the Board.  The Committee’s interpretation and construction of any term or provision of the Plan or of any option granted under the Plan shall be final, unless otherwise determined by the Board, in which event such determination by the Board shall be final.  The Committee may from time to time adopt rules and regulations for carrying out this Plan and, subject to the provisions of this Plan, may prescribe the form or forms of the instruments evidencing any option granted under this Plan.  No member of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any option granted, or with respect to any shares sold under any restricted stock purchase agreement, under the Plan.

Subject to the provisions of this Plan, the Board or the Committee shall have full and final authority in its discretion to select the eligible persons to whom options are granted or shares are sold under restricted stock purchase agreements, to grant such options and to sell shares as provided in this Plan, to determine the number of shares to be subject to options or sold pursuant to restricted stock purchase agreements, to determine the exercise prices of options or purchase prices of shares under restricted stock purchase agreements, the terms of exercise of options, expiration dates of options, and other pertinent terms and provisions of options and restricted stock purchase agreements.  The Board may delegate to the Committee the power to make all determinations with respect to the Plan, or may delegate to the Committee only certain aspects of Plan administration, such as selecting the eligible persons to whom options will be granted, or decisions concerning the timing, pricing, and amount of a grant or award of options or sale of shares under restricted stock purchase agreements.

  

  

  

	
  

	
3.

	
ELIGIBILITY

Subject to Section 2 of this Article I, the persons who shall be eligible to receive options or to purchase shares under restricted stock purchase agreements under the Plan shall be such officers, employees, directors, consultants, professionals, and independent contractors of the Company as the Board of Directors or the Committee may select.  Eligible persons who are not also salaried employees of the Company shall be eligible to receive nonqualified stock options (but such persons shall not be eligible to receive incentive stock options).

	
  

	
4.

	
SHARES OF STOCK SUBJECT TO THE PLAN

The shares that may be issued under the Plan shall be authorized and unissued or reacquired common stock, no par value, of the Company (the “Shares”).  The aggregate number of Shares which may be issued under the Plan shall not exceed 4,000,000, unless an adjustment is required in accordance with Article III.

	
  

	
5.

	
AMENDMENT OF THE PLAN

The Board may, insofar as permitted by law, from time to time, suspend or discontinue the Plan or revise or amend it in any respect whatsoever, except that no such amendment shall alter or impair or diminish any rights or obligations under any option theretofore granted or under any restricted stock purchase agreement executed under the Plan, without the consent of the person to whom such option was granted or Shares were sold, except as permitted under Section 8 of this Article I.  Without further shareholder approval, no such amendment shall increase the number of shares subject to the Plan (except as authorized by Article III), change the designation in Section 3 of Article I of the class of persons eligible to receive options or purchase Shares under the Plan, extend the term during which options may be exercised, or extend the final date upon which options under the Plan may be granted or Shares may be sold under restricted stock purchase agreements.

	
  

	
6.

	
APPROVAL OF SHAREHOLDERS

All options granted under the Plan before the Plan is approved by affirmative vote of the holders of a majority of the voting shares of the Company present and eligible to vote at the next meeting of shareholders of the Company, or any adjournment thereof, shall be subject to such approval.  No option granted hereunder may become exercisable unless and until such approval is obtained.

  

  

  

7.           TERM OF PLAN

Options may be granted and Shares may be sold under restricted stock purchase agreements under the Plan until June 1, 2020, the date of termination of the Plan.  Notwithstanding the foregoing, each option granted under the Plan shall remain in effect until such option has been exercised or terminated in accordance with its terms and the terms of the Plan.

	
  

	
8.

	
LISTING, REGISTRATION, QUALIFICATION, AND CONSENTS

All options granted under the Plan shall be subject to the requirement that, if at any time the Board or the Committee shall determine, in its discretion, that the listing, registration or qualification of the shares subject to options granted under the Plan, upon any securities exchange or under any state or federal law, or the consent or approval of any government regulatory body, is necessary or desirable as a condition of, or in connection with, the granting of such option or the issuance, if any, or purchase of shares in connection therewith, such option may not be exercised in whole or in part unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Board or the Committee.  Furthermore, if the Board or the Committee determines that any amendment to any option (including, but not limited to, an increase in the exercise price) is necessary or desirable in connection with the registration or qualification of any of its shares under any state securities or “blue sky” law, then the Board or the Committee shall have the unilateral right to make such changes without the consent of the optionee.

	
  

	
9.

	
NONASSIGNABILITY

Nonqualified options shall be transferable (i) by will, by the laws of descent and distribution, by instrument to an inter vivos or testamentary trust in which the nonqualified options are to be passed to beneficiaries upon the death of the optionee or (ii) to the extent and in the manner authorized by the Board or Committee by gift to members of the optionee’s immediate family.  Immediate family means a transferee as permitted by Rule 260.140.41 of Title 10 of the California Code of Regulations which includes any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law and shall also include adoptive relationships.  Incentive stock options may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the optionee, only by the optionee.  Notwithstanding the preceding two sentences, in conjunction with the exercise of an option, and for the purpose of obtaining financing for such exercise, the option holder may arrange for a securities broker/dealer to exercise an option on the option holder’s behalf, to the extent necessary to obtain funds required to pay the exercise price of the option.

  

3

  

10.           WITHHOLDING TAXES

Whenever Shares are to be issued upon the exercise of any option under the Plan or under any restricted stock purchase agreement, the Company shall have the right to require the optionee or purchaser to remit to the Company an amount sufficient to satisfy federal, state, and local withholding tax requirements prior to the delivery of any certificate or certificates for such Shares.

	
  

	
11.

	
DEFINITION OF “FAIR MARKET VALUE”

For the purposes of this Plan, the term “fair market value,” when used in reference to the date of grant of an option or the date of surrender of Shares in payment for the purchase of Shares pursuant to the exercise of any option, as the case may be, shall mean the amount determined by the Board or the Committee as follows:

(a)           If the Shares are listed or have unlisted trading privileges on a national securities exchange, the Shares shall be valued at their last sale price on the principal national securities exchange (measured by volume of transactions in such Shares) on which such securities shall have traded, or, if available, such sales price as reported on the composite tape, on the last trading day immediately preceding the date of grant or surrender.

(b)           If prices of the Shares are quoted in the Nasdaq Stock Market (but not the National Market System), or the OTC Bulletin Board, the Shares shall be valued at their last sale price as reported on the composite tape, on the last trading day immediately preceding the date of grant or surrender.

(c)           If the Shares are described in either subparagraph (a) or (b) above but were not traded on the last trading day immediately preceding the date of grant or surrender, or if prices of the Shares are published by the National Quotation Bureau, Inc., then the Shares shall be valued at the last price reported on the composite tape or if not so reported the average between the last bid and the last asked prices reported in the Wall Street Journal or published by the National Quotation Bureau within the 30 days prior to the date of grant or surrender.

(d)           If the Shares are not described in and valued under subparagraphs (a) and (b) above, then the Shares shall be valued by the Board or the Committee, in its sole judgment, in good faith.

  

4

  

ARTICLE II

STOCK OPTIONS

	
  

	
1.

	
AWARD OF STOCK OPTIONS

Awards of stock options may be made under the Plan under all the terms and conditions contained herein.  However, in the case of incentive stock options, the aggregate fair market value (determined as of the date of grant of the option) of the Shares with respect to which incentive stock options are exercisable for the first time by such officer or key employee during any calendar year (under all incentive stock option plans of the Company) shall not exceed $100,000.  The date on which any option is granted shall be the date of the Board’s or the Committee’s authorization of such grant or such later date as may be determined by the Board or the Committee at the time such grant is authorized.

	
  

	
2.

	
TERM OF OPTIONS AND EFFECT OF TERMINATION

Notwithstanding any other provision of the Plan, an option shall not be exercisable after the expiration of ten (10) years from the date of its grant.  In addition, notwithstanding any other provision of the Plan, no incentive stock option granted under the Plan to a person who, at the time such option is granted, owns shares possessing more than 10% of the total combined voting power of all classes of shares of the Company or of any parent or subsidiary corporation, shall be exercisable after the expiration of five (5) years from the date of its grant.

In the event that any outstanding option under the Plan expires by reason of lapse of time or otherwise is terminated or canceled for any reason, then the Shares subject to any such option which have not been issued pursuant to the exercise of the option shall again become available in the pool of Shares for which options may be granted under the Plan.

	
  

	
3.

	
CANCELLATION OF AND SUBSTITUTION FOR OPTIONS

The Company shall have the right to cancel any option at any time before it otherwise would have expired by its terms and to grant to the same optionee in substitution therefor a new stock option stating an option price which is lower (but not higher) than the option price stated in the canceled option.  Any such substituted option shall contain all the terms and conditions of the canceled option provided, however, that notwithstanding Section 2 of Article II, such substituted option shall not be exercisable after the expiration of ten (10) years from the date of grant of the canceled option.

  

5

  

	
  

	
4.

	
TERMS AND CONDITIONS OF OPTIONS

Options granted pursuant to the Plan shall be evidenced by agreements in such form as the Board or the Committee shall from time to time determine, which agreements shall comply with the following terms and conditions.

	
  

	
(a)

	
Number of Shares and Type of Option

Each option agreement shall state the number of Shares for which the option is exercisable and whether the option is intended to be an incentive stock option or a nonqualified stock option.

	
  

	
(b)

	
Option Price

Each option agreement shall state the exercise price per share or the method by which such price shall be computed.  The exercise price per share shall be determined by the Board or the Committee at the date such option is granted.  In the case of a nonqualified option, the exercise price may be not less than 85% of the fair market value of the Shares on the date such option is granted.  In the case of an incentive stock option, the exercise price shall be not less than 100% of the fair market value of the Shares on the date such option is granted.  Notwithstanding the foregoing, the exercise price per share of a option granted to a person who, on the date of such grant and in accordance with Section 425(d) of the Code, owns shares possessing more than 10% of the total combined voting power of all classes of shares of the Company or of any parent or subsidiary corporation, shall be not less than 110% of the fair market value of the Shares on the date that the option is granted.

	
  

	
(c)

	
Medium and Time of Payment

The exercise price shall be payable upon the exercise of an option in the lawful currency of the United States of America or, in the discretion of the Board or the Committee, in Shares or in a combination of such currency and such Shares.  Upon receipt of payment, the Company shall deliver to the optionee (or person entitled to exercise the option) a certificate or certificates for the Shares purchased through such exercise.

	
  

	
(d)

	
Exercise of Options

Options granted under the Plan shall vest, and thereby become exercisable, at the time or times, or upon the happening of the events or circumstances, determined by the Board or the Committee.  Options may vest at any time or from time to time upon the satisfaction of reasonable conditions to vesting determined by the Board or Committee.  Without limiting the other events and circumstances upon which vesting may be determined, the Board or Committee may make vesting conditioned upon continued employment by the Company.  The terms under which options shall vest shall be stated in each option agreement.  The Board or the Committee may, in its discretion, accelerate (but not delay or postpone) the time or times at which an option vests.

  

6

  

To the extent that an option has become vested (except as provided in Article III), and subject to the foregoing restrictions, it may be exercised in whole or in such lesser amount as may be authorized by the option agreement.  If exercised in part, the unexercised portion of an option shall continue to be held by the optionee and may thereafter be exercised as herein provided.

	
  

	
(e)

	
Termination of Employment Except By Disability or Death

In the event that an optionee who is an employee of the Company shall cease to be employed by the Company for any reason other than his or her death or disability, his or her option shall terminate on the date (3) months after the date that he ceases to be an employee of the Company.  The Committee or the Board may waive the provisions of this Subsection 4(e) at the date of grant of an option or at a later date.

	
  

	
(f)

	
Disability of Optionee

If an optionee who is an employee of the Company shall cease to be employed by the Company by reason of his or her becoming disabled, such option shall terminate on the date one (1) year after cessation of employment due to such disability.  “Disability” means that an employee is unable to carry out the responsibilities and functions of the position held by the employee by reason of any medically determinable physical or mental impairment.  The Committee or the Board may waive the provisions of this Subsection 4(f) at the time of grant of an option or at a later date if the option is not an incentive stock option.

	
  

	
(g)

	
Death of Optionee and Transfer of Option

If an optionee should die while in the employ of the Company, or within the three-month period after termination of his or her employment with the Company during which he or she is permitted to exercise an option in accordance with Subsection 4(f) of this Article II, such option shall terminate on the date one (1) year after the optionee’s death.  During such one-year period, such option may be exercised by the executors or administrators of the optionee’s estate or by any person or persons who shall have acquired the option directly from the optionee by his or her will or the applicable law of descent and distribution.  During such one year period, such option may be exercised with respect to the number of Shares for which the deceased optionee would have been entitled to exercise it at the time of his or her death.  The Committee or the Board may waive the provisions of this Subsection 4(g) at the date of grant of an option or at a later date if the option is not an incentive stock option.

  

7

  

ARTICLE III

RECAPITALIZATIONS AND REORGANIZATIONS

The number of Shares covered by the Plan, and the number of Shares and price per share of each outstanding option, shall be proportionately adjusted for any increase or decrease in the number of issued and outstanding Shares resulting from a subdivision or consolidation of Shares or the payment of a stock dividend, or any other increase or decrease in the number of issued and outstanding Shares effected without receipt of consideration by the Company.

Upon the dissolution or liquidation of the Company, or upon a reorganization, merger or consolidation of the Company as a result of which the outstanding securities of the class then subject to options hereunder are changed into or exchanged for cash or property or securities not of the Company’s issue, or upon a sale of substantially all the property of the Company to, or the acquisition of shares representing more than eighty percent (80%) of the voting power of the shares of the Company then outstanding by, another corporation or person, the Plan shall terminate, and all options theretofore granted hereunder shall terminate, unless provision can be made in writing in connection with such transaction for the continuance of the Plan and/or for the assumption of options theretofore granted, or the substitution for such options of options covering the shares of a successor corporation, or a parent or a subsidiary thereof, with appropriate adjustments as to the number and kind of shares and prices, in which event the Plan and options theretofore granted shall continue in the manner and under the terms so provided.

To the extent that the foregoing adjustments relate to shares or securities of the Company, such adjustments shall be made by the Board, whose determination in that respect shall be final, binding and conclusive.

The grant of an option pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes or its capital or business structure or to merge or to consolidate or to dissolve, liquidate or sell, or transfer all or any part of its business or assets.

ARTICLE IV

SALE OF RESTRICTED STOCK IN LIEU OF GRANT OF OPTIONS

	
  

	
1.

	
RESTRICTED STOCK

	
  

	
(a)

	
Number of Shares

Each restricted stock purchase agreement shall state the number of Shares sold under such agreement.

  

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(b)

	
Purchase Price

Each restricted stock purchase agreement shall state the purchase price per Share or the method by which such price shall be computed.  The Purchase price per Share shall be determined by the Board or the Committee at the date the sale of the Shares is approved (the “Approval Date”); provided that the purchase price per Share may be not less than 85% of the fair market value per Share on the Approval Date and that if the restricted shares are sold to an individual who owns shares representing more than ten percent of the voting power of all classes of shares of the Company (or any parent or subsidiary of the Company), the purchase price per Share may not be less than 100% of the fair market value per Share on the Approval Date.

	
  

	
(c)

	
Medium and Time of Payment

The purchase price shall be payable at the time the restricted stock purchase agreement is executed by the eligible person.  Payment shall be made in the lawful currency of the United States of America or, in the discretion of the Board or the Committee, by delivery of a promissory note payable to the Company in such lawful currency.  Upon receipt of payment, the Company shall deliver to the eligible person a certificate or certificates for the Shares purchased.

	
  

	
(d)

	
Repurchase Option

Each restricted stock purchase agreement shall provide that the Company shall have the option to repurchase the Shares sold under such agreement in the event the purchaser ceases to be a full time employee of the Company prior to the vesting of such Shares, or if any other condition to the vesting of the Shares stated in the restricted stock purchase agreement is not met (the “Repurchase Option”).  The Repurchase Option may be exercised by the Company during such period as specified in the applicable restricted stock purchase agreement.  The price at which the Company may repurchase the Shares upon the exercise of the Repurchase Option shall be the price at which the Shares were sold to the eligible person, or such greater price as provided in the applicable restricted stock purchase agreement approved by the Board or the Committee.  If the purchaser of Shares under a restricted stock purchase agreement has delivered a promissory note as payment of all or part of the purchase price of his or her Shares, the Company may cancel or reduce the principal balance and interest accrued on that promissory note as payment of all or part of the repurchase price upon exercise of the Repurchase Option.

	
  

	
(e)

	
Vesting of Shares.

Shares sold pursuant to a restricted stock purchase agreement shall vest, and thereby cease to be subject to the Repurchase Option, at the time or times, or upon the happening of the events or circumstances, determined by the Board or the Committee.  Shares may vest at any time or from time to time upon the satisfaction of reasonable conditions to vesting determined by the Board or Committee.  Without limiting the other events and circumstances upon which vesting may be determined, the Board or Committee may make vesting conditioned upon continued employment by the Company.  The terms under which Shares shall vest shall be stated in the restricted stock purchase agreement.  The Board or the Committee may, in its discretion, accelerate (but not delay or postpone) the time or times at which Shares vest under a restricted stock purchase agreement.

  

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2.

	
ESCROW OF UNVESTED SHARES.

The Company may require that all Shares sold under a restricted stock purchase agreement be held in escrow, on terms satisfactory to the Company, until such Shares have vested and have been paid for in full (including the payment of any amount due on any promissory note delivered by the purchaser and secured by such Shares).

	
  

	
3.

	
LEGEND ON STOCK CERTIFICATES.

Shares issued under a restricted stock purchase agreement shall include, in addition to any other legends as may be required by law or by the Board or Committee, a legend to the following effect:

THESE SHARES MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT BETWEEN THE COMPANY AND THE SHAREHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

ARTICLE  V

MISCELLANEOUS PROVISIONS

	
  

	
1.

	
RIGHTS AS A STOCKHOLDER

An optionee or a transferee of an option shall have no rights as a shareholder with respect to any Shares covered by an option until the date of the receipt of payment (including any amounts required by the Company pursuant to Section 10 of Article I) by the Company.  No adjustment shall be made as to any option for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions or other rights for which the record date is prior to such date, except as provided in Article III.

2.           MODIFICATION, EXTENSION AND RENEWAL OF OPTIONS AND RESTRICTED STOCK PURCHASE AGREEMENTS

Subject to the terms and conditions and within the limitations of the Plan, the Board or the Committee may modify, extend, renew, or cancel outstanding options granted under the Plan and restricted stock purchase agreements.  Notwithstanding the foregoing, however, no modification of an option or restricted stock purchase agreement shall, without the consent of the optionee or purchaser, impair or diminish any rights or obligations under any option theretofore granted o restricted stock purchase agreement executed under the Plan, except as provided in Section 8 of Article I.  For purposes of the preceding sentence, the right of the Company pursuant to Section 3 of Article II to cancel any outstanding option and to issue in place of such canceled option a substituted option stating a lower option price shall not be construed as impairing or diminishing an optionee’s rights or obligations.

  

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3.           OTHER PROVISIONS

The option agreements and restricted stock purchase agreements  authorized under the Plan shall contain such other provisions, including, without limitation, restrictions upon the exercise of the option or purchase of Shares, or restrictions required by any applicable securities laws, as the Board or the Committee shall deem advisable.

	
  

	
4.

	
APPLICATION OF FUNDS

The proceeds received by the Company from the sale of Shares pursuant to the exercise of options or under restricted stock purchase agreements will be used for general corporate purposes.

	
  

	
5.

	
NO OBLIGATION TO EXERCISE OPTION

The granting of an option shall impose no obligation upon the optionee or a transferee of the option to exercise such option.

	
  

	
6.

	
FINANCIAL ASSISTANCE

Except as may be prohibited by law, the Company is vested with authority under this Plan to assist any employee to whom an option is granted or to whom Shares are sold pursuant to a restricted stock purchase agreement hereunder (including any director or officer of the Company or any of its subsidiaries who is also an employee) in the payment of the purchase price payable on exercise of that option or under that restricted stock purchase agreement, by lending the amount of such purchase price (including accepting a promissory note executed by the employee as consideration for the sale of the Shares at the time the Shares are issued) to such employee on such terms and at such rates of interest and upon such security (or unsecured) as shall have been authorized by or under authority of the Board or the Committee.

  

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7.           FINANCIAL REPORTS.

The Company shall deliver to each grantee of an option a balance sheet of the Company as at the end of its most recently completed fiscal year, and an income statement of the Company as of the end of such fiscal year.  Such financial statements shall be delivered no less frequently than annually; provided, that such financial statements need not be delivered to any employee whose duties as an employee assure them access to such financial information.

 

 

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