Document:

Exhibit 10.37

 

Tenancy Agreement

 

Classification:

Agreement No.:

 

Landlord: Midelan Corporation

Tenant: Optronics International
Corporation

Parking Space Number:

Room Number: Rooms 8 and 12
of Floor 8, Rooms 1, 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16 and 17 of 

Floor 9 and Rooms 1, 3 and 5 of
Floor 10

Rent Period: From January 1,
2009 to December 31, 2009

 

 

Tenancy Agreement

 

Landlord: Midelan Corporation
(seal) (hereinafter referred to as “Party A”)

Legal representative: Wang Qing
Ting (seal)

 

Tenant: Optronics International
Corporation (seal) (hereinafter referred to as “Party B”)

Legal representative: Dr. Near
(seal)

 

In faith whereof, it is agreed
between the parties hereto as follows:

 

Article 1    Subject matter of rent

 

Party A shall lease Rooms 8 and
12 of Floor 8, Rooms 1, 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16 and 17 of
Floor 9 and Rooms 1, 3 and 5 of Floor 10, twenty rooms in total (hereinafter
referred to the “Premises”), at No. 81 Shueili Road, Hsinchu City on an as
is basis to Party B to be used as office. The total area of the Premises is
1,677.39 Ping including public space. The location of the said premises is
shown in Attached Drawing.

 

Article 2    Rent period

 

The rent period is from January 1,
2009 to December 31, 2009. This agreement shall be terminated
automatically upon the expiration date hereof and shall not be extended without
written consent of Party A.

 

Article 3    Rent

 

1.     The monthly rent shall be One Million Two Hundred Thousand New Taiwan
Dollars (including tax).

 

2.     Party B shall pay the rent for the current month to Party A by check
dated the first day of each month. In case Party B becomes delinquent in the
payment of any rent, Party B shall pay to Party A interest on the monthly rent
at the rate of 1% each day plus a penalty for delay. In case any month rent is
ten days overdue, Party A is entitled to terminate this agreement and
immediately stop water and power supply to the Premises; Party B should not
raise any objection to such action and should vacate the Premises immediately
and pay off all the rent, penalty and other charges due or payable.

 

Article 4    Security deposit

 

1.     The security deposit shall be Three Million Three Hundred Eighteen
Thousand New Taiwan Dollars, which shall be paid by Party B to Party A on the
execution date hereof and returned to Party B without interest after deducting
all the charges due and payable by Party B hereunder on the expiration date
hereof and after Party B has vacated the Premises, restored the Premises to
their former state and changed its registered address.

 

2.     Party B should not request to use the security deposit to offset its
rent during the period of this agreement or create any encumbrance on the
receipt of the security deposit.

 

Article 5    Public space and facilities

 

1.     Public space and facilities include corridors, elevators, stair hall,
toilets, tea room, electric room, air conditioning machine room and etc. Party
B is entitled to pass through and use such facilities, but should not stack any
articles upon or add any equipment to such facilities without authorization or
do any thing that will affect the view or common use of such facilities.

 

 

2.     Party B shall be held responsible for any damages to public space and
facilities due to Party B’s improper use of public space and facilities.

 

3.     Party B is responsible for applying to the Telecommunications Bureau for
connecting line from Party A’s pre-laid pipeline and outlets to its telephones
within the Premises at its own expenses.

 

4.     Party B shall abide by the Regulations of Xujia Economic &
Trade Park in its use of the Premises. Party A is entitled to terminate this
agreement in case Party B breaches the foregoing provision and fails to correct
such breach after being notified or advised by Party A.

 

Article 6    Water and electricity charges, tax and management
fee

 

1.     Party B shall pay water, electricity, telephone and utility charges,
business tax and other expenses arising from its use of the Premises during the
period of this agreement.

 

2.     Party A shall pay house tax and rental income tax.

 

3.     Party B shall pay management fee to the Building Management Committee.
The management fee shall be calculated from the date of fitting-out.

 

4.     The management fund shall be One Hundred New Taiwan Dollars per Ping.
Party B shall pay a management fund of One Hundred Sixty Seven Thousand Seven
Hundred Thirty Nine New Taiwan Dollars to the Building Management Committee via
Party A at the execution hereof as working capital for building management. The
said management fund will be returned to Party B without interest after Party B
vacates the Premises upon the expiration of this agreement.

 

Article 7    Decoration and fitting-out

 

1.     In case Party B wants to decorate or fit out the Premises, it shall get
prior written consent of Party A and bear all expenses arising therefrom. Upon
the expiration of this agreement, Party B shall restore the Premises to their
former state without any damages to the Premises. In case Party B fails to
restore the Premises to their former state within ten days after the expiration
of this agreement, Party B agrees that Party A is entitled to restore the
Premises to their former state and Party B shall bear the expenses of
demolishment, waste disposal, clearing and restoration arising therefrom and
pay rent for the days delayed.

 

2.     Definition of former state of the Premises: ceiling: as shown in the
Attached Drawing of Layout of Ceiling Light; wall: original materials of
fireproof partition wall; floor: polished cement floor.

 

3.     Party B shall ensure that its fitting-out materials comply with the
provisions of fire control laws and regulations and obtain fireproof,
[illegible], heat resistance and other relevant certificates and nameplate of
such fitting-out materials issued by competent authorities from the fitting-out
contractor for future reference. Party B shall be held responsible for and hold
Party A harmless against any non-compliance of the fitting-out works of Party B
found by any competent authorities or any damages and losses arising therefrom.

 

Article 8    Restrictions on the use of the Premises

 

In its use of the Premises, Party
B shall exercise due care of a good administrator and shall not do the
following businesses or acts:

 

1.     Not to use the Premises as residence or kitchen or do any thing which
will affect the hygiene, security, public order or tranquility.

 

2.     Not to store any prohibited articles or do any illegal business in the
Premises.

 

3.     Not to use excessive electric appliances, install high-voltage electric
apparatus or neon tubes, or alter originally designed electric equipment and
line without authorization.

 

 

4.     Not to conduct any business of, test or store hazardous goods in the
Premises or take any prohibited articles into the Premises.

 

5.     Party B shall not post or hang any advertisement or signboard onto the
exterior wall or inner or outer glasses of the Premises, in order to maintain
the overall beauty of the building.

 

6.     Unless otherwise agreed by Party A, Party B should not underlet, sublet,
transfer, assign or otherwise offer to use the Premises or any part or parts
thereof to any third party, except to its subsidiary or affiliate.

 

Article 9 Compensation

 

Party B shall keep intact the
Premises and public facilities and repair or make compensation for the damages
to the Premises or any public facilities caused by Party B or any of Party B’s
affiliates intentionally or due to negligence.

 

Article 10  Return of the Premises

 

1.     Upon the expiration or termination of this agreement, Party B shall
vacate and restore the Premises to their former state and then return the
Premises to Party A after being checked and accepted by Party A. Party B shall
not claim any removal expense, fitting-out expense or any other expenses
against Party A.

 

2.     After the expiration or termination of this agreement, Party B shall
change its registered address.

 

3.     In case Party B’s vehicles still occupy the parking space provided to it
hereunder after the expiration or termination of this agreement, Party A is
entitled to tow such vehicles out of the parking lot. The expenses arising
therefrom shall be deducted from the security deposit and Party A shall not be
responsible for any damages or loss of such vehicles during the period that
such vehicles are towed out of the parking lot.

 

Article 11  Early termination

 

In case any party wishes to
terminate this agreement prior to the expiration date of this agreement, Party
B shall notify Party A in writing two months before the date that this
agreement is about to be terminated and unconditionally allow Party A to deduct
half of the security deposit as withdrawal penalty. Party B still needs to pay
all the charges due and carry out its obligations hereunder before the date
that it vacates the Premises. After Party B returns the Premises in good
conditions to Party A, Party A shall pay back the monthly rent to Party B after
deducting all the charges payable by Party B.

 

Article 12 Breach of this
agreement

 

1.     In case Party B breaches any provisions of this agreement, Party A shall
have right to terminate this agreement immediately and confiscate the security
deposit; Party B shall return the Premises to Party A according to the
provisions of Article 10.

 

2.     In case Party B fails to return the Premises after the expiration or
termination of this agreement, Party A is entitled to impose a punitive penalty
on Party A at the amount of three times of original rent from the date of the
expiration or termination of this agreement to the date that Party B completely
vacates the Premises.

 

Article 13  Adjustment of rent

 

Party B agrees that during the
period of this agreement, Party A is entitled to adjust the monthly rent by the
end of each year, provided that the range of such adjustment shall not exceed
10% of the previous monthly rent.

 

 

Article 14  Advance notice of rent period

 

1.     Party B shall notify Party A two months before the expiration date of
this agreement whether it wishes to extend this agreement. In case Party B
wishes to and Party A also agrees to extend this agreement, both parties shall
enter into a new tenancy agreement 15 days before the expiration date of this
agreement.

 

2.     Any notice given under this agreement shall be in writing and delivered
to the address provided herein.

 

Article 15  Both parties shall strictly adhere to this
agreement during the rent period. All disputes arising in connection with this
agreement shall be settled amicably through negotiations. The parties elect the
Hsinchu Local Court as the court of first instance to decide on any question
arising here from.

 

Article 16  This agreement is made in two originals, one copy
to be held the parties hereto respectively..

 

Remark: In case Party A intends
to lease the Premises to any third party upon the expiration of this agreement,
Party B shall have the priority to lease the Premises under same conditions provided
that the provisions of Article 14 have been satisfied.

 

 

Party A (Landlord): Midelan
Corporation (seal)

Legal representative: Wang Qing
Ting (seal)

Unified code: [illegible]

Address: 2 Floor 10, No. 81
Shueili Road, Hsinchu City

Telephone: (03) 5721305

 

Party B (Tenant): Optronics
International Corporation (seal)

Legal representative: Dr. Near
(seal)

Unified code: 84149792

Address: No. 81 Second Park
Road, Hsinchu Science Park

Telephone: (03) 5169222

 

January 1, 2009

 

 

Attached Drawing: Layout of
Lights

 

[see source for the drawing]

 

 

List of Indoor Facilities

 

Floor: 8F, Room: 8, 12

 

Note: The amount and position of
facilities shall be checked according to this list when the client leases the
Premises and terminates lease of the Premises.

 

1.     Items not to be altered:

a)      Exterior wall and indoor aluminum windows;

b)      Walls and floor of the lobby; and

c)      Indoor security control system and intercom.

 

2.     In case of any alteration to any other facilities, the client shall
submit the drawing to the management office for review and put down related
issues in meeting minutes (which effect shall be equal to the tenancy
agreement).

 

3.     Upon the expiration or termination of the tenancy agreement, the client
shall restore the following equipment to their former position subject to the
finished plan of this project (including internal pipelines of water,
electricity, fire control and communications).

 

4.     A water meter is installed at each of Rooms 5, 7, 10 and 12 of each
floor.

 

5.     Other regulations on construction shall be subject to the Detailed Rules and
Regulations on Fitting-out Works at Xujia Economic & Trade Park.

 

Five facility points are
delivered this time (four pages).

 

Received by:

 

 

Xujia Economic & Trade
Park

 

One. Fitting-out facilities

 

	
  No.

  	
   

  	
  Description of facility

  	
   

  	
  Specification

  	
   

  	
  Brand

  	
   

  	
  Remark

  
	
  1

  	
   

  	
  Aluminum &
  light steel joist ceilings

  	
   

  	
  9*603*603mm (cherry
  blossom pattern)

  	
   

  	
  Jiabao base gypsum
  board (GB-L)

  	
   

  	
  If the indoor partition
  wall cuts the ceiling, the ceiling should be leveled or re-constructed when
  the tenancy is terminated.

  
	
  2

  	
   

  	
  Wall paint

  	
   

  	
  Cement paint

  	
   

  	
  Hong 450

  	
   

  	
  One undercoat and one
  top coat

  
	
  3

  	
   

  	
  Aluminum windows

  	
   

  	
  BUW100# (green powder
  coating)

  	
   

  	
  Yali Curtain

  	
   

  	
  Refer to the contract
  of this project XGH No. 019 for detailed specifications.

  
	
  4

  	
   

  	
  Aluminum window glass

  	
   

  	
  5mm green half-reflecting
  tempered glass

  	
   

  	
  Taiwan Glass

  	
   

  	
  Gray Dow Corning
  silicone

  
	
  5 

  	
   

  	
  Light steel joist
  gypsum board 

  	
   

  	
  4-point Grade A gypsum
  board

  	
   

  	
  Global gypsum board

  	
   

  	
  Galvanized framework,
  7.5cm wide, space 45cm

  
	
   

  	
  R8 sound insulating
  glass wool 

  	
   

  	
  / 

  	
   

  	
  Corridor partition wall
  

  
	
  6 

  	
   

  	
  Stainless steel door 

  	
   

  	
  223*180 (cm) 180o
  double door (top and bottom bolt)

  	
   

  	
  Refer to the remark for
  details

  	
   

  	
  Stainless steel door:
  material: stainless steel plate #034, door frame 1.5mm (thickness of steel plate),
  door leaf 1.5mm (thickness of steel plate), 5mm tempered transparent glass
  embedded (refer to XGH No. 031 contract for related [illegible])  

  
	
   

  	
  Two top hinges

  	
   

  	
  R510

  	
   

  
	
   

  	
  One set of horizontal
  lock

  	
   

  	
  WALES 406-26D

  	
   

  
	
   

  	
  One set of reversible
  handle (H Type- Copper head) 

  	
   

  	
  /

  	
   

  

 

Five facility points are
delivered this time (four pages).

 

Received by:

 

 

Xujia Economic &
Trade Park

 

Two. Electrical and water supply &
drainage facilities

 

	
  No.

  	
   

  	
  Description of facility

  	
   

  	
  Specification

  	
   

  	
  Brand

  	
   

  	
  Unit

  	
   

  	
  Quantity

  	
   

  	
  Remark

  
	
   

  	
   

  	
   

  	
   

  	
  NFB (no-fuse breaker)

  	
   

  	
  125 A/3p

  	
   

  	
  Taian

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
  Including one set of command
  control lights for air conditioner

  
	
  1 

  	
   

  	
  Master switch box 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (380V/ 220V)

  	
   

  	
  NFB (no-fuse breaker)

  	
   

  	
  75 A/3p

  	
   

  	
  Taian

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NFB (no-fuse breaker)

  	
   

  	
  20 A/3p

  	
   

  	
  Taian

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NFB (no-fuse breaker)

  	
   

  	
  20 A/1p

  	
   

  	
  Taian

  	
   

  	
  PC

  	
   

  	
  11

  	
   

  	
   

  
	
  2

  	
   

  	
  Master switch box (190V/ 110V)

  	
   

  	
  NFB (no-fuse breaker)

  NFB (no-fuse breaker)

  	
   

  	
  40 A/3p

  20 A/1p

  	
   

  	
  Taian

  Taian

  	
   

  	
  PC

  PC

  	
   

  	
  1

  8

  	
   

  	
   

  
	
  3

  	
   

  	
  Transformer

  	
   

  	
   

  	
   

  	
  380V converted into 11V (10KVA)

  	
   

  	
  Yudong

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
   

  
	
  4

  	
   

  	
  Light switch

  	
   

  	
   

  	
   

  	
  Single break switch

  	
   

  	
  International

  	
   

  	
  PC

  	
   

  	
  6

  	
   

  	
   

  
	
  5

  	
   

  	
  Outlet

  	
   

  	
   

  	
   

  	
  Duplex receptacle (grounded)

  	
   

  	
  International

  	
   

  	
  PC

  	
   

  	
  22

  	
   

  	
   

  
	
  5

  	
   

  	
  Light

  	
   

  	
   

  	
   

  	
  2 chi * 4 chi (220V)

  	
   

  	
  Xuguang

  	
   

  	
  PC

  	
   

  	
  24

  	
   

  	
   

  
	
  6

  	
   

  	
  Temperature control switch for
  air conditioner

  	
   

  	
  Temperature control three-speed
  (13*8.5*3.5cm)

  	
   

  	
  Xintai

  	
   

  	
  PC

  	
   

  	
  6

  	
   

  	
   

  
	
  7

  	
   

  	
  Cooling fan (CF)

  	
   

  	
  800 minutes /cubic feet
  (individual 220V 60HZ)

  	
   

  	
  Tianji SR

  	
   

  	
  Unit

  	
   

  	
  2

  	
   

  	
  Hidden high static pressure
  (including SUS defrosting tray)

  
	
   

  	
  1000 minutes /cubic feet
  (individual 220V 60HZ)

  	
   

  	
   

  	
   

  	
  4

  	
   

  
	
  8

  	
   

  	
  Air outlet for air conditioner

  	
   

  	
  60*60cm

  	
   

  	
  Qunlong

  	
   

  	
  PC

  	
   

  	
  12

  	
   

  	
   

  
	
  9

  	
   

  	
  Air inlet for air conditioner

  	
   

  	
  60*60cm

  	
   

  	
  Qunlong

  	
   

  	
  PC

  	
   

  	
  6

  	
   

  	
   

  
	
  10

  	
   

  	
  Air supply

  	
   

  	
  1 inch

  	
   

  	
  South Asia or Pacific

  	
   

  	
  Set

  	
   

  	
  1

  	
   

  	
  One water meter on the top
  floor (belonging to the water corporation)

  
	
  11

  	
   

  	
  Air drainage

  	
   

  	
  2 inches

  	
   

  	
   

  	
   

  	
  Set

  	
   

  	
  1

  	
   

  	
   

  

 

Three. Telecommunication
facilities

 

	
  No.

  	
   

  	
  Description

  	
   

  	
  Specification

  	
   

  	
  Brand

  	
   

  	
  Unit

  	
   

  	
  Quantity

  	
   

  	
  Remark

  
	
  1

  	
   

  	
  Telecommunication box

  	
   

  	
  10 pairs of terminals

  	
   

  	
  None

  	
   

  	
  Set

  	
   

  	
  1

  	
   

  	
  Box size: 35*40*10

  
	
  2

  	
   

  	
  Telephone connection box

  	
   

  	
  Duplex receptacle (6-42H)

  	
   

  	
  Pacific

  	
   

  	
  PC

  	
   

  	
  13

  	
   

  	
  Duplex receptacle * 1; single
  receptacle *12

  

 

Five facility points are
delivered this time (four pages).

Received by:

 

 

Xujia Economic &
Trade Park

 

Four. Fire-fighting facilities

 

	
  No.

  	
   

  	
  Description
  of facility

  	
   

  	
  Specification

  	
   

  	
  Brand

  	
   

  	
  Unit

  	
   

  	
  Quantity

  	
   

  	
  Remark

  
	
  1

  	
   

  	
  Air exhaust gate

  	
   

  	
  220V

  	
   

  	
  Shangde

  	
   

  	
  Set

  	
   

  	
  1

  	
   

  	
  Size of exhaust outlet: 120*30
  cm

  
	
  2

  	
   

  	
  Manual smoke exhausting device
  (fire alarm)

  	
   

  	
  Indoor embedded type
  DC240/100mA

  	
   

  	
  Meihua (MH-112T)

  	
   

  	
  Set

  	
   

  	
  1

  	
   

  	
   

  
	
  3

  	
   

  	
  Smoke detector

  	
   

  	
  Local photoelectric type

  	
   

  	
  Changlong (PHOTO)

  	
   

  	
  PC

  	
   

  	
  2

  	
   

  	
   

  
	
  4

  	
   

  	
  Differential detector

  	
   

  	
  Local

  	
   

  	
  Meihua

  	
   

  	
  PC

  	
   

  	
  3

  	
   

  	
   

  
	
  5

  	
   

  	
  Emergency exit indicator light

  	
   

  	
  White lettering on green
  background 38*14*6cm

  	
   

  	
  EL-615

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
  220V/ 0.22A, tube FL-10W*2

  Battery: 6V/2.3AH

  
	
  6

  	
   

  	
  Emergency light

  	
   

  	
  PL-type emergency light

  	
   

  	
  Apollo

  	
   

  	
  PC

  	
   

  	
  2

  	
   

  	
  220V/13*1 fluorescent lamp

  
	
  7

  	
   

  	
  Dry chemical fire extinguisher

  	
   

  	
  ABC 10 type

  	
   

  	
  ABC 10 type

  	
   

  	
  PC

  	
   

  	
  2

  	
   

  	
  Including direction board and
  hook

  
	
  8

  	
   

  	
  Fire alarm speaker

  	
   

  	
  DV-501-5WL grade

  	
   

  	
  Risheng

  	
   

  	
  PC

  	
   

  	
  2

  	
   

  	
  Speaker: 8, 5W/AC,
  above 100V; volume: above 95Db

  
	
  9

  	
   

  	
  Slowly descending device

  	
   

  	
  Mechanical brake type (10kg)

  	
   

  	
  Andaxing

  	
   

  	
  Set

  	
   

  	
  None

  	
   

  	
   

  
	
  10

  	
   

  	
  Slowly descending device
  indicator light

  	
   

  	
  Black lettering on white
  background 38*14*6cm

  	
   

  	
  EL-615

  	
   

  	
  PC

  	
   

  	
  None

  	
   

  	
  220V/ 0.22A, tube FL-10W*2

  Battery: 6V/2.3AH

  

 

Five. Security control facilities
(the facilities listed under this item should not be altered)

 

	
  No.

  	
   

  	
  Description
  of facility

  	
   

  	
  Specification

  	
   

  	
  Brand

  	
   

  	
  Unit

  	
   

  	
  Quantity

  	
   

  	
  Remark

  
	
  1

  	
   

  	
  Anti-theft imprinter

  	
   

  	
  PG-878M-TFO

  	
   

  	
  PEGASUS

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
   

  
	
  2

  	
   

  	
  Indoor intercom

  	
   

  	
  DH-306

  	
   

  	
  Ruiyan

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
   

  
	
  3

  	
   

  	
  Indoor security control system

  	
   

  	
  SA-309

  	
   

  	
  Ruiyan

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
   

  
	
  4

  	
   

  	
  Ceiling infrared sensor

  	
   

  	
  PA-370 (diameter: 11.5cm)

  	
   

  	
  PUNIX

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
   

  
	
  5

  	
   

  	
  Pushbutton and single break
  switch

  	
   

  	
  /

  	
   

  	
  International

  	
   

  	
  Set

  	
   

  	
  1

  	
   

  	
   

  

 

Five facility points are delivered
this time (four pages).

Received by:

 

 

Xujia Economic & Trade Park

List of Indoor Facilities

 

Floor: 8F, Room: 1, 2, 3, 5, 6, 7, 8, 9, 10, 11, 12,
13, 15, 16, 17

 

Note: The amount and position of facilities shall be
checked according to this list when the client leases the Premises and terminates
lease of the Premises.

 

1.               Items not to be altered:

 

a)                  Exterior wall and indoor aluminum windows;

b)                 Walls and floor of the lobby; and

c)                  Indoor security control system and intercom.

 

2.               In case of any alteration to any other facilities, the
client shall submit the drawing to the management office for review and put
down related issues in meeting minutes (which effect shall be equal to the
tenancy agreement).

 

3.               Upon the expiration or termination of the tenancy
agreement, the client shall restore the following equipment to their former
position subject to the finished plan of this project (including internal
pipelines of water, electricity, fire control and communications).

 

4.               A water meter is installed at each of Rooms 5, 7, 10
and 12 of each floor.

 

5.               Other regulations on construction shall be subject to
the Detailed Rules and Regulations on Fitting-out Works at Xujia Economic &
Trade Park.

 

Five facility points are delivered this time (four
pages).

 

Received by:

 

 

Xujia Economic & Trade Park

 

One. Fitting-out facilities

 

	
  No.

  	
   

  	
  Description
  of facility

  	
   

  	
  Specification

  	
   

  	
  Brand

  	
   

  	
  Remark

  
	
  1

  	
   

  	
  Aluminum & light steel joist ceilings

  	
   

  	
  9*603*603mm (cherry blossom pattern)

  	
   

  	
  Jiabao base gypsum board (GB-L)

  	
   

  	
  If the indoor partition wall cuts the ceiling, the
  ceiling should be leveled or re-constructed when the tenancy is terminated.

  
	
  2

  	
   

  	
  Wall paint

  	
   

  	
  Cement paint

  	
   

  	
  Hong 450

  	
   

  	
  One undercoat and one top coat

  
	
  3

  	
   

  	
  Aluminum windows

  	
   

  	
  BUW100# (green powder coating)

  	
   

  	
  Yali Curtain

  	
   

  	
  Refer to the contract of this project XGH No. 019
  for detailed specifications.

  
	
  4

  	
   

  	
  Aluminum window glass

  	
   

  	
  5mm green half-reflecting tempered glass

  	
   

  	
  Taiwan Glass

  	
   

  	
  Gray Dow Corning silicone

  
	
  5

  	
   

  	
  Indoor skirting board

  	
   

  	
  10cm PVC foam skirting board

  	
   

  	
  /

  	
   

  	
   

  
	
  6

  	
   

  	
  Light steel joist gypsum board

  	
   

  	
  4-point Grade A gypsum board

  	
   

  	
  Global gypsum board

  	
   

  	
  Galvanized framework, 7.5cm wide, space 45cm

  
	
   

  	
  R8 sound insulating glass wool

  	
   

  	
  /

  	
   

  	
  Corridor partition wall

  
	
  7

  	
   

  	
  Stainless steel door

  	
   

  	
  223*180 (cm) 180° double door (top and bottom bolt) 

  	
   

  	
  Refer to the remark for details

  	
   

  	
  Stainless steel door: material: stainless steel plate
  #034, door frame 1.5mm (thickness of steel plate), door leaf 1.5mm (thickness
  of steel plate), 5mm tempered transparent glass embedded (refer to XGH
  No. 031 contract for related [illegible])

  
	
   

  	
  Two top hinges 

  	
   

  	
  R510

  	
   

  
	
   

  	
  One set of horizontal lock 

  	
   

  	
  WALES 406-26D

  	
   

  
	
   

  	
  One set of reversible handle (H Type- Copper head)

  	
   

  	
  /

  	
   

  

 

Five facility points are delivered this time (four
pages).

 

Received by:

 

 

Xujia Economic & Trade Park

 

Two. Electrical and water supply & drainage
facilities

 

	
  No.

  	
   

  	
  Description of facility

  	
   

  	
  Specification

  	
   

  	
  Brand

  	
   

  	
  Unit

  	
   

  	
  Quantity

  	
   

  	
  Remark

  
	
  1

  	
   

  	
  Master switch box

  	
   

  	
  NFB (no-fuse breaker)

  	
   

  	
  125 A/3p

  	
   

  	
  Taian

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
  Including one set of command control lights for air
  conditioner

  
	
   

  	
   

  	
  (380V/ 220V)

  	
   

  	
  NFB (no-fuse breaker)

  	
   

  	
  50 A/3p

  	
   

  	
  Taian

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NFB (no-fuse breaker)

  	
   

  	
  20 A/3p

  	
   

  	
  Taian

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NFB (no-fuse breaker)

  	
   

  	
  20 A/1p

  	
   

  	
  Taian

  	
   

  	
  PC

  	
   

  	
  10

  	
   

  	
   

  
	
  2

  	
   

  	
  Master switch box (190V/ 110V)

  	
   

  	
  NFB (no-fuse breaker)

  NFB (no-fuse breaker)

  	
   

  	
  40 A/3p

  20 A/1p

  	
   

  	
  Taian

  Taian

  	
   

  	
  PC

  PC

  	
   

  	
  1

  8

  	
   

  	
   

  
	
  3

  	
   

  	
  Transformer

  	
   

  	
   

  	
   

  	
  380V converted into 11V (10KVA)

  	
   

  	
  Yudong

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
   

  
	
  4

  	
   

  	
  Light switch

  	
   

  	
   

  	
   

  	
  Single break switch

  	
   

  	
  International

  	
   

  	
  PC

  	
   

  	
  5

  	
   

  	
   

  
	
  5

  	
   

  	
  Outlet

  	
   

  	
   

  	
   

  	
  Duplex receptacle (grounded)

  	
   

  	
  International

  	
   

  	
  PC

  	
   

  	
  17

  	
   

  	
   

  
	
  5

  	
   

  	
  Light

  	
   

  	
   

  	
   

  	
  2 chi * 4 chi (220V)

  	
   

  	
  Xuguang

  	
   

  	
  PC

  	
   

  	
  18

  	
   

  	
  Total of E, F, M, N and O

  
	
  6

  	
   

  	
  Temperature control switch for air conditioner

  	
   

  	
  Temperature control three-speed (13*8.5*3.5cm)

  	
   

  	
  Xintai

  	
   

  	
  PC

  	
   

  	
  4

  	
   

  	
   

  
	
  7

  	
   

  	
  Cooling fan (CF)

  	
   

  	
  1400 minutes /cubic feet (individual 220V 60HZ)

  	
   

  	
  Tianji SR

  	
   

  	
  Unit

  	
   

  	
  2

  	
   

  	
  Hidden high static pressure (including SUS defrosting
  tray) 

  
	
   

  	
  1000 minutes /cubic feet (individual 220V 60HZ)

  	
   

  	
  2

  
	
  8

  	
   

  	
  Air outlet for air conditioner

  	
   

  	
  60*60cm

  	
   

  	
  Qunlong

  	
   

  	
  PC

  	
   

  	
  10

  	
   

  	
   

  
	
  9

  	
   

  	
  Air inlet for air conditioner

  	
   

  	
  60*60cm

  	
   

  	
  Qunlong

  	
   

  	
  PC

  	
   

  	
  4

  	
   

  	
   

  
	
  10

  	
   

  	
  Air supply

  	
   

  	
  1 inch

  	
   

  	
  South Asia or Pacific

  	
   

  	
  Set

  	
   

  	
  1

  	
   

  	
  One water meter on the top floor (belonging to the
  water corporation)

  
	
  11

  	
   

  	
  Air drainage

  	
   

  	
  2 inches

  	
   

  	
   

  	
   

  	
  Set

  	
   

  	
  1

  	
   

  	
   

  

 

Three. Telecommunication facilities

 

	
  No.

  	
   

  	
  Description

  	
   

  	
  Specification

  	
   

  	
  Brand

  	
   

  	
  Unit

  	
   

  	
  Quantity

  	
   

  	
  Remark

  
	
  1

  	
   

  	
  Telecommunication box

  	
   

  	
  10 pairs of terminals

  	
   

  	
  None

  	
   

  	
  Set

  	
   

  	
  1

  	
   

  	
  Box size: 35*40*10

  
	
  2

  	
   

  	
  Telephone connection box

  	
   

  	
  Duplex receptacle (6-42H)

  	
   

  	
  Pacific

  	
   

  	
  PC

  	
   

  	
  11

  	
   

  	
   

  

 

Five facility points are delivered this time (four
pages).

Received by:

 

 

Xujia Economic & Trade Park

 

Four. Fire-fighting facilities

 

	
  No.

  	
   

  	
  Description of facility

  	
   

  	
  Specification

  	
   

  	
  Brand

  	
   

  	
  Unit

  	
   

  	
  Quantity

  	
   

  	
  Remark

  
	
  1

  	
   

  	
  Air exhaust gate

  	
   

  	
  220V

  	
   

  	
  Shangde

  	
   

  	
  Set

  	
   

  	
  1

  	
   

  	
  Size of exhaust outlet: 120*30 cm

  
	
  2

  	
   

  	
  Manual smoke exhausting device (fire alarm)

  	
   

  	
  Indoor embedded type DC240/100mA

  	
   

  	
  Meihua (MH-112T)

  	
   

  	
  Set

  	
   

  	
  1

  	
   

  	
   

  
	
  3

  	
   

  	
  Smoke detector

  	
   

  	
  Local photoelectric type

  	
   

  	
  Changlong (PHOTO)

  	
   

  	
  PC

  	
   

  	
  2

  	
   

  	
   

  
	
  4

  	
   

  	
  Differential detector

  	
   

  	
  Local

  	
   

  	
  Meihua

  	
   

  	
  PC

  	
   

  	
  2

  	
   

  	
   

  
	
  5

  	
   

  	
  Emergency exit indicator light

  	
   

  	
  White lettering on green background 38*14*6cm

  	
   

  	
  EL-615

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
  220V/ 0.22A, tube FL-10W*2

  Battery: 6V/2.3AH

  
	
  6

  	
   

  	
  Emergency light

  	
   

  	
  PL-type emergency light

  	
   

  	
  Apollo

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
  220V/13*1 fluorescent lamp

  
	
  7

  	
   

  	
  Dry chemical fire extinguisher

  	
   

  	
  ABC 10 type

  	
   

  	
  ABC 10 type

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
  Including direction board and hook

  
	
  8

  	
   

  	
  Fire alarm speaker

  	
   

  	
  DV-501-5WL grade

  	
   

  	
  Risheng

  	
   

  	
  PC

  	
   

  	
  2

  	
   

  	
  Speaker: 8, 5W/AC, above 100V; volume: above 95Db

  
	
  9

  	
   

  	
  Slowly descending device

  	
   

  	
  Mechanical brake type (10kg)

  	
   

  	
  Andaxing

  	
   

  	
  Set

  	
   

  	
  None

  	
   

  	
   

  
	
  10

  	
   

  	
  Slowly descending device indicator light

  	
   

  	
  Black lettering on white background 38*14*6cm

  	
   

  	
  EL-615

  	
   

  	
  PC

  	
   

  	
  None

  	
   

  	
  220V/ 0.22A, tube FL-10W*2 

  Battery: 6V/2.3AH

  

 

Five. Security control facilities (the facilities
listed under this item should not be altered)

 

	
  No.

  	
   

  	
  Description
  of facility

  	
   

  	
  Specification

  	
   

  	
  Brand

  	
   

  	
  Unit

  	
   

  	
  Quantity

  	
   

  	
  Remark

  
	
  1

  	
   

  	
  Anti-theft imprinter

  	
   

  	
  PG-878M-TFO

  	
   

  	
  PEGASUS

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
   

  
	
  2

  	
   

  	
  Indoor intercom

  	
   

  	
  DH-306

  	
   

  	
  Ruiyan

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
   

  
	
  3

  	
   

  	
  Indoor security control system

  	
   

  	
  SA-309

  	
   

  	
  Ruiyan

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
   

  
	
  4

  	
   

  	
  Ceiling infrared sensor

  	
   

  	
  PA-370 (diameter: 11.5cm)

  	
   

  	
  PUNIX

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
   

  
	
  5

  	
   

  	
  Pushbutton and single break switch

  	
   

  	
  /

  	
   

  	
  International

  	
   

  	
  Set

  	
   

  	
  1

  	
   

  	
   

  

 

Five facility points are delivered this time (four
pages).

Received by:

 

 

Xujia Economic & Trade Park

List of Indoor Facilities

 

Floor: 10F, Room: 1, 3, 5

 

Note: The amount and position
of facilities shall be checked according to this list when the client leases
the Premises and terminates lease of the Premises.

 

1.               Items not to be altered:

a)                  Exterior wall and indoor aluminum windows;

b)                 Walls and floor of the lobby; and

c)                  Indoor security control system and intercom.

2.               In case of any alteration to any other
facilities, the client shall submit the drawing to the management office for
review and put down related issues in meeting minutes (which effect shall be
equal to the tenancy agreement).

3.               Upon the expiration or termination of the
tenancy agreement, the client shall restore the following equipment to their
former position subject to the finished plan of this project (including
internal pipelines of water, electricity, fire control and communications).

4.               A water meter is installed at each of Rooms 5,
7, 10 and 12 of each floor.

5.               Other regulations on construction shall be subject
to the Detailed Rules and Regulations on Fitting-out Works at Xujia
Economic & Trade Park.

 

Five facility points are
delivered this time (four pages).

 

Received by:

 

 

Xujia Economic & Trade Park

 

One. Fitting-out facilities

 

	
  No.

  	
   

  	
  Description of facility

  	
   

  	
  Specification

  	
   

  	
  Brand

  	
   

  	
  Remark

  
	
  1

  	
   

  	
  Aluminum & light
  steel joist ceilings

  	
   

  	
  9*603*603mm (cherry blossom
  pattern)

  	
   

  	
  Jiabao base gypsum board
  (GB-L)

  	
   

  	
  If the indoor partition wall
  cuts the ceiling, the ceiling should be leveled or re-constructed when the tenancy
  is terminated.

  
	
  2

  	
   

  	
  Wall paint

  	
   

  	
  Cement paint

  	
   

  	
  Hong 450

  	
   

  	
  One undercoat and one top coat

  
	
  3

  	
   

  	
  Aluminum windows

  	
   

  	
  BUW100# (green powder coating)

  	
   

  	
  Yali Curtain

  	
   

  	
  Refer to the contract of this
  project XGH No. 019 for detailed specifications.

  
	
  4

  	
   

  	
  Aluminum window glass

  	
   

  	
  5mm green half-reflecting
  tempered glass

  	
   

  	
  Taiwan Glass

  	
   

  	
  Gray Dow Corning silicone

  
	
  5

  	
   

  	
  Light steel joist gypsum board

  	
   

  	
  4-point Grade A gypsum board

  R8 sound insulating glass wool

  	
   

  	
  Global gypsum board

  /

  	
   

  	
  Galvanized framework, 7.5cm
  wide, space 45cm

  Corridor partition wall

  
	
  6

  	
   

  	
  Stainless steel door

  	
   

  	
  223*180 (cm) 180° double door
  (top and bottom bolt)

  	
   

  	
  Refer to the remark for
  details

  	
   

  	
  Stainless steel door:
  material: stainless steel plate #034, door frame 1.5mm (thickness of steel
  plate), door leaf 1.5mm (thickness of steel plate), 5mm tempered transparent
  glass embedded (refer to XGH No. 031 contract for related [illegible])

  
	
   

  	
  Two top hinges

  	
   

  	
  R510

  	
   

  
	
   

  	
  One set of horizontal lock

  	
   

  	
  WALES 406-26D

  	
   

  
	
   

  	
  One set of reversible handle
  (H Type- Copper head)

  	
   

  	
  /

  	
   

  

 

Five facility points are
delivered this time (four pages).

 

Received by:

 

 

Xujia Economic & Trade Park

 

Two. Electrical and water
supply & drainage facilities

 

	
  No.

  	
   

  	
  Description of facility

  	
   

  	
  Specification

  	
   

  	
  Brand

  	
   

  	
  Unit

  	
   

  	
  Quantity

  	
   

  	
  Remark

  
	
  1

  	
   

  	
  Master switch box (380V/ 220V)

  	
  NFB (no-fuse breaker)

  	
   

  	
  125 A/3p

  	
   

  	
  Taian

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
  Including one set of command
  control lights for air conditioner

  
	
  NFB (no-fuse breaker)

  	
   

  	
  50 A/3p

  	
   

  	
  Taian

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
   

  
	
  NFB (no-fuse breaker)

  	
   

  	
  20 A/3p

  	
   

  	
  Taian

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
   

  
	
  NFB (no-fuse breaker)

  	
   

  	
  20 A/1p

  	
   

  	
  Taian

  	
   

  	
  PC

  	
   

  	
  10

  	
   

  	
   

  
	
  2

  	
   

  	
  Master switch box (190V/ 110V)

  	
  NFB (no-fuse breaker)

  	
   

  	
  40 A/3p

  	
   

  	
  Taian

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
   

  
	
  NFB (no-fuse breaker)

  	
   

  	
  20 A/1p

  	
   

  	
  Taian

  	
   

  	
  PC

  	
   

  	
  8

  	
   

  	
   

  
	
  3

  	
   

  	
  Transformer

  	
   

  	
  380V converted into 11V
  (10KVA)

  	
   

  	
  Yudong

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
   

  
	
  4

  	
   

  	
  Light switch

  	
   

  	
  Single break switch

  	
   

  	
  International

  	
   

  	
  PC

  	
   

  	
  5

  	
   

  	
   

  
	
  5

  	
   

  	
  Outlet

  	
   

  	
  Duplex receptacle (grounded)

  	
   

  	
  International

  	
   

  	
  PC

  	
   

  	
  17

  	
   

  	
   

  
	
  5

  	
   

  	
  Light

  	
   

  	
  2 chi * 4 chi (220V)

  	
   

  	
  Xuguang

  	
   

  	
  PC

  	
   

  	
  60

  	
   

  	
  Total of E, F, M, N and O

  
	
  6

  	
   

  	
  Temperature control switch for
  air conditioner

  	
   

  	
  Temperature control three-speed
  (13*8.5*3.5cm)

  	
   

  	
  Xintai

  	
   

  	
  PC

  	
   

  	
  4

  	
   

  	
   

  
	
  7

  	
   

  	
  Cooling fan (CF)

  	
   

  	
  1400 minutes /cubic feet
  (individual 220V 60HZ)

  	
   

  	
  Tianji SR

  	
   

  	
  Unit 

  	
   

  	
  2

  	
   

  	
  Hidden high static pressure
  (including SUS defrosting tray)

  
	
   

  	
  1000 minutes /cubic feet
  (individual 220V 60HZ)

  	
   

  	
   

  	
   

  	
  2

  	
   

  
	
  8

  	
   

  	
  Air outlet for air conditioner

  	
   

  	
  60*60cm

  	
   

  	
  Qunlong

  	
   

  	
  PC

  	
   

  	
  10

  	
   

  	
   

  
	
  9

  	
   

  	
  Air inlet for air conditioner

  	
   

  	
  60*60cm

  	
   

  	
  Qunlong

  	
   

  	
  PC

  	
   

  	
  4

  	
   

  	
   

  
	
  10

  	
   

  	
  Air supply

  	
   

  	
  1 inch

  	
   

  	
  South Asia or Pacific

  	
   

  	
  Set

  	
   

  	
  None 

  	
   

  	
  One water meter on the top
  floor (belonging to the water corporation)

  
	
  11

  	
   

  	
  Air drainage

  	
   

  	
  2 inches

  	
   

  	
   

  	
   

  	
  Set

  	
   

  	
  None 

  	
   

  	
   

  

 

Three. Telecommunication
facilities

 

	
  No.

  	
   

  	
  Description

  	
   

  	
  Specification

  	
   

  	
  Brand

  	
   

  	
  Unit

  	
   

  	
  Quantity

  	
   

  	
  Remark

  
	
  1

  	
   

  	
  Telecommunication box

  	
   

  	
  10 pairs of terminals

  	
   

  	
  None

  	
   

  	
  Set

  	
   

  	
  1

  	
   

  	
  Box size: 35*40*10

  
	
  2

  	
   

  	
  Telephone connection box

  	
   

  	
  Duplex receptacle (6-42H)

  	
   

  	
  Pacific

  	
   

  	
  PC

  	
   

  	
  11

  	
   

  	
   

  

 

Five facility points are
delivered this time (four pages).

Received by:

 

 

Xujia Economic & Trade Park

 

Four. Fire-fighting facilities

 

	
  No.

  	
   

  	
  Description of facility

  	
   

  	
  Specification

  	
   

  	
  Brand

  	
   

  	
  Unit

  	
   

  	
  Quantity

  	
   

  	
  Remark

  
	
  1

  	
   

  	
  Air exhaust gate

  	
   

  	
  220V

  	
   

  	
  Shangde

  	
   

  	
  Set

  	
   

  	
  1

  	
   

  	
  Size of exhaust outlet:
  120*30 cm

  
	
  2

  	
   

  	
  Manual smoke exhausting
  device (fire alarm)

  	
   

  	
  Indoor embedded type
  DC240/100mA

  	
   

  	
  Meihua (MH-112T)

  	
   

  	
  Set

  	
   

  	
  1

  	
   

  	
   

  
	
  3

  	
   

  	
  Smoke detector

  	
   

  	
  Local photoelectric type

  	
   

  	
  Changlong (PHOTO)

  	
   

  	
  PC

  	
   

  	
  2

  	
   

  	
   

  
	
  4

  	
   

  	
  Differential detector

  	
   

  	
  Local

  	
   

  	
  Meihua

  	
   

  	
  PC

  	
   

  	
  2

  	
   

  	
   

  
	
  5

  	
   

  	
  Emergency exit indicator
  light

  	
   

  	
  White lettering on green
  background 38*14*6cm

  	
   

  	
  EL-615

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
  220V/ 0.22A, tube FL-10W*2

  Battery: 6V/2.3AH

  
	
  6

  	
   

  	
  Emergency light

  	
   

  	
  PL-type emergency light

  	
   

  	
  Apollo

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
  220V/13*1 fluorescent lamp

  
	
  7

  	
   

  	
  Dry chemical fire
  extinguisher

  	
   

  	
  ABC 10 type

  	
   

  	
  ABC 10 type

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
  Including direction board and
  hook

  
	
  8

  	
   

  	
  Fire alarm speaker

  	
   

  	
  DV-501-5WL grade

  	
   

  	
  Risheng

  	
   

  	
  PC

  	
   

  	
  2

  	
   

  	
  Speaker: 8, 5W/AC, above 100V; volume: above 95Db

  
	
  9

  	
   

  	
  Slowly descending device

  	
   

  	
  Mechanical brake type (10kg)

  	
   

  	
  Andaxing

  	
   

  	
  Set

  	
   

  	
  None

  	
   

  	
   

  
	
  10

  	
   

  	
  Slowly descending device
  indicator light

  	
   

  	
  Black lettering on white
  background 38*14*6cm

  	
   

  	
  EL-615

  	
   

  	
  PC

  	
   

  	
  None

  	
   

  	
  220V/ 0.22A, tube FL-10W*2

  Battery: 6V/2.3AH

  

 

Five. Security control
facilities (the facilities listed under this item should not be altered)

 

	
  No.

  	
   

  	
  Description of facility

  	
   

  	
  Specification

  	
   

  	
  Brand

  	
   

  	
  Unit

  	
   

  	
  Quantity

  	
   

  	
  Remark

  
	
  1

  	
   

  	
  Anti-theft imprinter

  	
   

  	
  PG-878M-TFO

  	
   

  	
  PEGASUS

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
   

  
	
  2

  	
   

  	
  Indoor intercom

  	
   

  	
  DH-306

  	
   

  	
  Ruiyan

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
   

  
	
  3

  	
   

  	
  Indoor security control
  system

  	
   

  	
  SA-309

  	
   

  	
  Ruiyan

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
   

  
	
  4

  	
   

  	
  Ceiling infrared sensor

  	
   

  	
  PA-370 (diameter: 11.5cm)

  	
   

  	
  PUNIX

  	
   

  	
  PC

  	
   

  	
  1

  	
   

  	
   

  
	
  5

  	
   

  	
  Pushbutton and single break
  switch

  	
   

  	
  /

  	
   

  	
  International

  	
   

  	
  Set

  	
   

  	
  1

  	
   

  	
   

  

 

Five facility points are
delivered this time (four pages).

Received by:Exhibit
10.41

 

FIRST AMENDMENT TO
LOAN AND SECURITY AGREEMENT

 

THIS FIRST AMENDMENT
(this “Amendment”) to that certain Loan and Security Agreement dated April 7,
2008, by and between Silicon Valley Bank (“Bank”) and SOURCE PHOTONICS, INC., a
Delaware corporation, FIBERXON, INC., a Delaware corporation and LUMINENTOIC,
INC., a Delaware corporation (collectively, “Existing Borrowers”), each with
its principal place of business at 20550 Nordhoff Street, Chatsworth, CA 91311
(FAX 818-349-9258) (as the same may from time to time be further amended,
modified, supplemented or restated, the “Loan Agreement”), is entered into this
     day of July, 2008, by and between Bank, Existing
Borrowers and FIBERXON (MACAO COMMERCIAL OFFSHORE) LIMITED, an entity organized
under the laws of Macao, registered with the Commercial and Movable Assets
Registry of Macau under No. 24468 (SO) (“New Borrower” and together with
Existing Borrowers, each a “Borrower” and collectively “Borrowers”).

 

RECITALS

 

A. Bank has extended
credit to Existing Borrowers for the purposes permitted in the Loan Agreement.

 

B. Existing Borrowers
have requested that Bank amend the Loan Agreement to (i) add New Borrower
as a “Borrower” therunder and (ii) make certain other revisions to the
Loan Agreement as more fully set forth herein.

 

C. Bank has agreed to so
amend certain provisions of the Loan Agreement, but only to the extent, in
accordance with the terms, subject to the conditions and in reliance upon the
representations and warranties set forth below.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the foregoing recitals and other good and valuable
consideration, the receipt and adequacy of which is hereby acknowledged, and
intending to be legally bound, the parties hereto agree as follows:

 

1. New
Borrower. New Borrower is hereby added as a “Borrower” under the Loan
Documents. All references in the Loan Documents to “Borrowers” shall include
New Borrower.

 

2.
Definitions. Capitalized terms used but not defined in this Amendment shall
have the meanings given to them in the Loan Agreement.

 

3.
Amendments to Loan Agreement.

 

3.1 Section 11.
(CHOICE OF LAW, VENUE, JURY TRIAL WAIVER AND JUDICIAL REFERENCE). The first
paragraph of Section 11 of the Loan Agreement is hereby amended and
restated as follows:

 

“California law the Loan
Documents without regard to principles of conflicts of law except the laws of
Macao govern any enforcement against the assets of Fiberxon Macao. Borrowers
and Bank each submit to the exclusive jurisdiction of the State and Federal courts
in Santa Clara County, California or, if applicable, the courts of Macao;
provided, however, that nothing in this Agreement shall be deemed to operate to
preclude Bank from bringing suit or taking other legal action in any other
jurisdiction to realize on the Collateral or any other security for the
Obligations, or to enforce a judgment or other court order in favor of Bank.
Each Borrower expressly submits and consents in advance to such jurisdiction in
any action or suit commenced in any such court, and each Borrower hereby waives
any objection that it may have based upon lack of personal jurisdiction,
improper venue, or forum non conveniens and hereby consents to the granting of
such legal or equitable relief as is deemed appropriate by such court. Each Borrower
hereby waives personal service of the summons, complaints, and other process
issued in such action or suit and agrees that service of such summons,
complaints, and other process may be made by registered or certified mail
addressed to such Borrower at the address set forth in Section 10 of this
Agreement and that service so made shall be deemed completed upon the earlier
to occur of such Borrower’s actual receipt thereof or three (3) days after
deposit in the U.S. mails, proper postage prepaid.”

 

3.2 Section 13
(Definitions). The following terms and their respective definitions are amended
or added to Section 13.1 of the Loan Agreement as follows:

 

“Fiberxon
Macao” means Borrower FIBERXON (MACAO COMMERCIAL OFFSHORE) LIMITED, an entity
organized under the laws of Macao, registered with the Commercial and Movable
Assets Registry of Macau under No. 24468 (SO).

 

 

“Loan
Documents” are, collectively, this Agreement, the Perfection Certificate, the
Macao Law Documents, any note, or notes or guaranties executed by Borrowers,
and any other present or future agreement between Borrowers and/or for the
benefit of Bank in connection with this Agreement, all as amended, restated, or
otherwise modified.

 

“Macao
Law Documents” means that certain Pledge Over Bank Accounts, Livranca,
Authorization Letter and Floating Charge Agreement executed by Fiberxon Macao
in favor or Bank and any other present or future agreement between Fiberxon
Macao and/or for the benefit of Bank in connection with this Agreement, all as
amended, restated, or otherwise modified.

 

3.3 Section 13
(Definitions). Subsection (b) of the defined term “Eligible Accounts” set
forth in Section 13.1 of the Loan Agreement is amended in its entirety and
replaced with the following:

 

“(b) Accounts billed
and payable outside of the United States unless the Bank has a first priority,
perfected security interest or other enforceable Lien in such Accounts and
provided further than any such Accounts of Fiberxon Macao shall be billed in US
Dollars and payments shall be remitted to the Lockbox;”

 

4. Limitation of
Amendments.

 

4.1 The amendments set
forth in Section 3, above, are effective for the purposes set forth herein
and shall be limited precisely as written and shall not be deemed to (a) be
a consent to any amendment, waiver or modification of any other term or
condition of any Loan Document, or (b) otherwise prejudice any right or
remedy which Bank may now have or may have in the future under or in connection
with any Loan Document.

 

4.2 This
Amendment shall be construed in connection with and as part of the Loan
Documents and all terms, conditions, representations, warranties, covenants and
agreements set forth in the Loan Documents, except as herein amended, are
hereby ratified and confirmed and shall remain in full force and effect.

 

5.
Representations and Warranties. To induce Bank to enter into this Amendment,
each Borrower hereby represents and warrants to Bank as follows:

 

5.1 Immediately after
giving effect to this Amendment (a) the representations and warranties
contained in the Loan Documents are true, accurate and complete in all material
respects as of the date hereof (except to the extent such representations and
warranties relate to an earlier date, in which case they are true and correct
as of such date), and (b) no Event of Default has occurred and is
continuing;

 

5.2 Borrower has the
power and authority to execute and deliver this Amendment and to perform its
obligations under the Loan Agreement, as amended by this Amendment;

 

5.3 The organizational
documents of Borrower delivered to Bank on the Effective Date (or on the date
hereof with respect to New Borrower) remain true, accurate and complete and
have not been amended, supplemented or restated and are and continue to be in
full force and effect;

 

5.4 The execution and
delivery by Borrower of this Amendment and the performance by Borrower of its
obligations under the Loan Agreement, as amended by this Amendment, have been
duly authorized;

 

5.5 The execution and
delivery by Borrower of this Amendment and the performance by Borrower of its
obligations under the Loan Agreement, as amended by this Amendment, do not and
will not contravene (a) any law or regulation binding on or affecting
Borrower, (b) any contractual restriction with a Person binding on
Borrower, (c) any order, judgment or decree of any court or other
governmental or public body or authority, or subdivision thereof, binding on
Borrower, or (d) the organizational documents of Borrower;

 

5.6 The execution and
delivery by Borrower of this Amendment and the performance by Borrower of its
obligations under the Loan Agreement, as amended by this Amendment, do not
require any order, consent, approval, license, authorization or validation of,
or filing, recording or registration with, or exemption by any governmental or
public body or authority, or subdivision thereof, binding on either 

 

 

Borrower, except as already has been obtained or made;
and

 

5.7 This
Amendment has been duly executed and delivered by Borrower and is the binding
obligation of Borrower, enforceable against Borrower in accordance with its
terms, except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, liquidation, moratorium or other similar laws of general
application and equitable principles relating to or affecting creditors’
rights.

 

6.
Counterparts. This Amendment may be executed in any number of counterparts and
all of such counterparts taken together shall be deemed to constitute one and
the same instrument.

 

7.
Effectiveness. This Amendment shall be deemed effective upon (a) the due
execution and delivery to Bank of this Amendment by each party hereto, (b) Borrowers’
payment of an amendment fee in an amount equal to $5,000, (c) the due
execution and delivery to Bank of the Macao Law Documents.

 

[Signature page follows.]

 

 

IN WITNESS WHEREOF, the
parties hereto have caused this Amendment to he executed as of the Effective
Date.

 

SOURCE PHOTONICS, INC.

	
  By

  	
  /s/
  Brett Chloupek

  	
   

  
	
   

  	
   

  
	
  Name: Brett Chloupek

  	
   

  
	
   

  	
   

  
	
  Title: CFO

  	
   

  
	
   

  	
   

  
	
  FIBERXON, INC.

  	
   

  
	
  By

  	
  /s/
  Brett Chloupek

  	
   

  
	
   

  	
   

  
	
  Name: Brett Chloupek

  	
   

  
	
   

  	
   

  
	
  Title: CFO

  	
   

  
	
   

  	
   

  
	
  LUMINENTOIC, INC.

  	
   

  
	
  By

  	
  /s/
  Brett Chloupek

  	
   

  
	
   

  	
   

  
	
  Name: Brett Chloupek

  	
   

  
	
   

  	
   

  
	
  Title: CFO

  	
   

  
	
   

  	
   

  
	
  FIBERXON (MACAO
  COMMERCIAL OFFSHORE) LIMITED,

  	
   

  
	
   

  	
   

  
	
  By

  	
  /s/

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  Administrator

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  BANK:

  	
   

  
	
   

  	
   

  
	
  SILICON VALLEY BANK

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]