Document:

Exhibit
10.2

	
  

  	
  GE Capital

  
	
   

  	
  GE Capital Services Pte Ltd

  
	
   

  	
  6 Temasek Boulevard #35-01

  
	
   

  	
  Suntec Tower Four

  
	
   

  	
  Singapore 038986

  
	
   

  	
   

  
	
   

  	
  T +65 6226 3822

  
	
   

  	
  F +65 6222 3681

  
	
   

  	
   

  
	
   

  	
  Co. No. 199307961G

  

 

23 January 2007

CombinatoRx (Singapore) Pte. Ltd.

11 Biopolis Way

Helios #08-05

Singapore 138667

	
  Attn :

  	
  Mr. Ralf Marius Altmeyer

  
	
   

  	
  Director

  	
   

  

 

Dear Sir,

Term Loan Facility

Schedule Number 001 and
002 forming a part of the letter of offer dated 20 November 2006.

Schedule Number 001

	
  Loan limit

  	
  :

  	
  USD778,871.04

  
	
   

  	
   

  	
   

  
	
  Tenure

  	
  :

  	
  48 months for all new laboratory and scientific
  equipment

  
	
   

  	
   

  	
   

  
	
  Interest Rate

  	
  :

  	
  5.44% + COF, (the COF is defined as USA Dollar GE
  Treasury Cost Of Fund, as of January, 2007 is 4.98% for 48 months COF)

  
	
   

  	
   

  	
   

  
	
  Repayment

  	
  :

  	
  The Term Loan shall be repaid over 47 equal monthly
  instalments of USD19,740.24 each and a final instalment of USD19,740.31, the
  first instalment of which is due and payable on commencement of the loan and
  thereafter, on the first day of each succeeding month until the whole of the
  Loan has been paid in full.

  
	
   

  	
   

  	
   

  
	
  Schedule Number 002

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Loan limit

  	
  :

  	
  USD457,331.66

  
	
   

  	
   

  	
   

  
	
  Tenure

  	
  :

  	
  36 months for all other Equipment

  
	
   

  	
   

  	
   

  
	
  Interest Rate

  	
  :

  	
  5.44% + COF, (the COF is defined as USA Dollar GE
  Treasury Cost Of Fund, as of January, 2007 is 5.01% for 36 months COF)

  
	
   

  	
   

  	
   

  
	
  Repayment

  	
  :

  	
  The Term Loan shall be repaid over 35 equal monthly
  instalments of USD14,725.38 each and a final instalment of USD14,725.48, the
  first instalment of which is due and payable on commencement of the loan and
  thereafter, on the first day of each succeeding month until the whole of the Loan
  has been paid in full.

  

 

Save for the above
variation, all other terms and conditions in our previous letter(s) of offer,
as may from time to time be varied or supplemented or otherwise modified, shall
remain binding and in full force.

 1
 

 

Kindly confirm your
acceptance by signing on the duplicate of this letter and returning it within
seven (7) days from the date hereof, unless an extension has been granted.

Yours faithfully,

	
  /s/ Arie Hendradjat

  	
   

  	
  /s/ Evelyn Chia

  	
   

  
	
  Arie Hendradjat

  	
   

  	
  Evelyn Chia

  
	
  Senior Risk Manager

  	
   

  	
  Chief Risk Officer

  

 

/ss

Encl.

	
   

  
	
  To: GE CAPITAL SERVICES PTE LTD

  

 

We accept and agree to
the foregoing terms and conditions stated herein this Schedule Number 001 and
002.

For And On Behalf Of

COMBINATORX (SINGAPORE) PTE. LTD.

	
  /s/ Ralf Altmeyer

  	
   

  	
  February 14, 2007

  	
   

  
	
  Authorised signature and company’s stamp

  	
   

  	
  Date

  

 

 2Exhibit 10.3

DEED OF DEBENTURE

THIS DEED OF DEBENTURE is made the 14th day of February, Two Thousand
Seven (2007) and granted by:

COMBINATORX
(SINGAPORE) PTE. LTD.
(ACRA Registration Number 200511269N) a company incorporated in the Republic of
Singapore and having its registered office at 11 Biopolis Way, #08-05/06
HELIOS, Singapore 138667  (hereinafter
called “the Borrower”);

 

In favour of :                           GE CAPITAL SERVICES PTE LTD
(ACRA Registration Number 199307961G), a company incorporated in Singapore and
having its place of business at 6 Temasek Boulevard, #35-01, Suntec Tower Four,
Singapore 038986 (hereinafter called “the Lender”).

WHEREAS the Lender has agreed to grant or continue to
grant credit to the Borrower up to such limit and/or for such amounts and on such
terms as the Lender may agree with the Borrower from time to time upon the
security and on the terms and conditions hereinafter appearing.

NOW THIS DEBENTURE WITNESSETH as follows:-

1.                                                                                       FACILITIES

In consideration of the Lender
agreeing to grant or continuing to grant credit facilities to the Borrower, the
Borrower hereby covenants and undertakes that:-

(a)                                                                                  It
will on demand or when due pay to the Lender all moneys and discharge all
obligations and liabilities whatsoever whether actual or contingent now or
hereafter due owing or payable by or to be incurred by the Borrower (whether in
the capacity of borrower or otherwise) to the Lender (whether in the capacity
of lender or otherwise) in whatsoever currency denominated whether on the
Borrower’s account (hereinafter called “the said Account”) or otherwise in any
manner whatsoever whether alone or jointly and in whatever style name or form
and whether as principal or surety including without limitation all liabilities
arising out of or in connection with the term loan (the “Term Loan”) granted
pursuant to the terms and conditions of the facility letter dated November 20,
2006, as revised, amended or supplemented from time to time (hereinafter collectively called “the Facility Letters” and
each called “the Facility Letter”) or in respect of any money or
liability whatsoever including (but without prejudice to the generality of the
foregoing) all usual and customary commissions, discounts, credit and/or hire
charges and also stamp duty, legal costs, charges and expenses incurred by the
Lender in relation to the preparation, execution and registration of this
Debenture and also in relation to the realisation or enforcement of this
security such legal costs, charges and expenses to be paid on afull indemnity basis together with interest in all cases
aforesaid to date of full payment;

 

(b)                                                                                 It will pay to the Lender interest (as well after
as before any demand or judgment or the liquidation of the Borrower or the
cessation or closure of the said Account) on principal moneys, commissions,
fees, charges, costs, expenses and all other moneys from time to time owing or
remaining unpaid at the rate or rates and upon such terms and on such basis and
calculated on monthly/annual rests or such other periodic rests as, stated in
the Facility Letters or as is/are
applicable under the terms relating to the Term Loan (hereinafter called “the
relevant prescribed rate” which expression shall include the relevant rates as
varied from time to time under the provisions hereinafter contained) until full
payment is received by the Lender; and

(c)                                                                                  It will perform and observe and be bound by the
terms and conditions of the Facility Letters.

2.                                                                                       CHARGES

(1)                                                                                  For the consideration aforesaid, the Borrower as
beneficial owner hereby charges as continuing security for the payment of all
moneys and the discharge of all obligations and liabilities whatsoever hereby
agreed to be paid or discharged or intended to be paid or discharged by the
Borrower to the Lender (including all commissions, fees, charges, costs and
expenses arising out of or in connection with the provisions of this Debenture)
by way of a FIRST FIXED CHARGE on all and singular the machinery more
particularly described in the Schedule hereto wheresoever situate both acquired
or belonging to the Borrower, together with all accessories, components or
parts whether attached or not attached or affixed thereon, and including any
substitution or replacement thereof (hereinafter called “the Assets”) Provided
Always that if and when all moneys, obligations and liabilities hereby secured
shall have been fully paid and discharged to the satisfaction of the Lender and
the Term Loan is cancelled, the Lender shall at the cost of the Borrower
discharge the security hereby created.

(2)                                                                                  For avoidance of doubt the charges hereby created
shall extend to and secure the Term Loan, and every part thereof, that shall
have been disbursed by the Lender from time to time and interest thereon and
all other sums and liabilities (including contingent liabilities) under the
Facility Letter or this Debenture now or hereafter due and payable by the
Borrower to the Lender.

3.                                                                                       ASSIGNMENT OF ASSETS

In addition to the aforesaid, in
order to provide the Lender’s security, the Borrower will (if and when required
by the Lender and at the cost of the Borrower) at any time execute and deliver
to the Lender an assignment or assignments of all and/or any of the Assets.

4.                                                                                       FURTHER SECURITY

The Borrower will at its own cost
and at any time at the request of the Lender provide such further security as
would be reasonable for the purpose of securing the Term Loan and execute the
relevant security documents in form and substance satisfactory to the Lender
with Borrower’s consent.

 

5.                                                                                       CONTINUING SECURITY

The security hereby created shall
not be considered as satisfied by any intermediate payment, settlement of
account, reduction of payment or satisfaction of the whole or any part of the
Term Loan but shall constitute and be a continuing security to the Lender and
extend to cover all or any part of the Term Loan which shall for the time being
be owing by the Borrower to the Lender under the provisions of this Debenture
and/or the Facility Letters.

6.                                                                                       PROHIBITION AGAINST OTHER CHARGES

The Borrower shall not :-

(a)                                                                                  have power, without the prior written consent of
the Lender (which consent shall not be unreasonably withheld), to and shall not
create any pledge, lien, mortgage, debenture, charge, hypothecation, security
interest or other encumbrance whatsoever or any other agreement or arrangement
having substantially the same economic effect (including without limitation any
“hold-back” or “flawed asset arrangement”) or enter into any agreement or
arrangement to create any of the same (and “security” shall be construed
accordingly) upon the Assets and so that no pledge, lien, mortgage, debenture,
charge, hypothecation, security interest or other encumbrance whatsoever or any
other agreement or arrangement having substantially the same economic effect
(including without limitation any “hold-back” or “flawed asset arrangement”)
shall in any case or in any manner arise or affect any part of the Assets
either in priority to or pari passu with or ranking after the charge(s) hereby
created except for (a) liens arising by operation of law and (b) security
created under or pursuant to this Debenture; nor

(b)                                                                                 in any event without the prior written consent of
the Lender sell, encumber, assign, factor, part with or dispose of any part of
the Assets (which consent shall not be unreasonably withheld).

7.                                                                                       POSITION OF OTHER SECURITY

Nothing contained in this
Debenture shall prejudice or affect any lien to which the Lender is entitled or
any other charge, mortgage or security which the Lender holds or may at any
time hold from the Borrower or others on any account whatsoever.

8.                                                                                       [INTENTIONALLY LEFT BLANK]

9.                                                                                       REPRESENTATIONS, WARRANTIES AND COVENANTS OF
BORROWER

The Borrower represents, warrants
and covenants as of the date of this Debenture and as of the date of each
disbursement under the Facility Letters that:

(a)                                                                                  The Borrower’s exact legal name is as set forth in
the preamble of this Debenture and Borrower is, and will remain, duly
organized, existing and in good standing under the laws of the Republic of
Singapore, has its chief executive offices at the location specified in the
preamble, and is, and will remain, duly qualified and licensed in every
jurisdiction wherever necessary to carry on its business and operations;

 

(b)                                                                                 The Borrower has adequate power and capacity to
enter into, and to perform its obligations under this Debenture and any other
documents evidencing, or given in connection with, any of the obligations,
liabilities, principal moneys, commissions, charges or any other moneys hereby
covenanted to be paid and/or covenanted under the Facility Letters (all of the
foregoing are called the “Debt Documents”);

(c)                                                                                  This Debenture and the other Debt Documents have
been duly authorized, executed and delivered by the Borrower and constitute
legal, valid and binding Debentures enforceable in accordance with their terms,
except to the extent that the enforcement of remedies may be limited under
applicable bankruptcy and insolvency laws or other equitable principals;

(d)                                                                                 No approval, consent or withholding of objections
is required from any governmental authority or instrumentality with respect to
the entry into, or performance by the Borrower of any of the Debt Documents,
except any already obtained;

(e)                                                                                  The entry into, and performance by the Borrower of
the Debt Documents will not (i) violate any of the organizational documents of
the Borrower or any judgment, order, law or regulation applicable to Borrower,
or (ii) result in any breach of or constitute a default under any contract to
which Borrower is a party, or result in the creation of any lien, claim or encumbrance
on any of Borrower’s property (except for liens in favor of Lender) pursuant to
any indenture, mortgage, deed of trust, bank loan, credit debenture, or other
debenture or instrument to which Borrower is a party;

(f)                                                                                    There are no suits or proceedings pending in court
or before any commission, board or other administrative agency against or
affecting Borrower which could, in the aggregate, have a material adverse
effect on the Borrower, its business or operations, or its ability to perform
its obligations under the Debt Documents, nor does Borrower have reason to
believe that any such suits or proceedings are threatened;

(g)                                                                                 All financial statements delivered to the Lender
in connection with the Term Loan have been prepared in accordance with
generally accepted accounting principles, and since the date of the most recent
financial statement, there has been no material adverse change in the Borrower’s
financial condition;

(h)                                                                                 The Borrower shall keep proper books and records
of accounts at all times to enable the Lender’s auditors to inspect and take
extracts from your books and records of accounts at all reasonable times,
subject to obligations of confidentiality;

(i)                                                                                     The Assets are not, and will not be, used by the
Borrower for personal, family or household purposes;

 

(j)                                                                                     The Assets are, and will remain, in good condition
and repair and the Borrower will not be negligent in its care and use, normal
wear and tear excepted;

(k)                                                                                  The Borrower is, and will remain, the sole and
lawful owner, and in possession of, the Assets, and has the sole right and
lawful authority to grant the security interest described in this Debenture;

(l)                                                                                     The Borrower shall keep the Assets insured against
all losses and damages as reasonably required by the Lender and name the Lender
as chargee/mortgagee and loss payee under such insurance.  If Borrower fails to insure the Assets,
Lender may do so and any premia or moneys paid by the Lender for such insurance
shall be repaid by the Borrower with interest at the default rate stated in the
Offer Letter from the date that payment is made by the Lender until the date
that payment is received by the Borrower and until so repaid shall be subject
to the charges herein created;

(m)                                                                               The Assets are, and will remain, free and clear of
all liens, claims and encumbrances of any kind whatsoever, except for (i) liens
in favor of Lender, (ii) liens for taxes not yet due or for taxes being
contested in good faith and which do not involve, in the judgment of Lender,
any risk of the sale, forfeiture or loss of any of the Assets, and (iii)
inchoate materialmen’s, mechanic’s, repairmen’s and similar liens arising by
operation of law in the normal course of business for amounts which are not
delinquent; and

(n)                                                                                 The Borrower is and will remain in material
compliance with all laws and regulations applicable to it.

10.                                                                                 EVENTS OF DEFAULT

(1)                           Each
of the following events shall, after notice provided under Clause 10(2), be an
event of default (hereinafter called “Event of Default”):-

(a)                                                                                  if the Borrower defaults in the due and punctual
payment to the Lender of any interest on the principal moneys disbursed or of
any moneys hereby covenanted to be paid and/or covenanted under the Facility
Letters and continues in such default after written demand has been issued by
the Lender;

(b)                                                                                 if the Borrower shall default in the due and
punctual payment in full of any of its obligations, liabilities, principal
moneys, commissions, charges or any other moneys hereby covenanted to be paid
and/or covenanted under the Facility Letters and continues in such default
after written demand has been issued by the Lender;

(c)                                                                                  if the Borrower ceases to carry on its business
(except for the purposes of amalgamation, merger or reconstruction the terms of
which have been approved by the Lender in writing);

(d)                                                                                 if a distress or execution or writ of seizure and
sale or attachment is levied or

enforced
upon or issued against any of the property or assets of the Borrower and shall not
be discharged or stayed or in good faith contested by action within five (5)
business days thereafter;

(e)                           if
a receiver is appointed of the Borrower’s property, assets, stocks or undertaking
or any part thereof;

(f)                                                                                    if any order shall be made by a competent court or
other appropriate authority or any resolution shall be passed or any step is
taken by any person for bankruptcy, liquidation, winding up or dissolution or
for the appointment of a liquidator, receiver, trustee or similar official of
it or of all or a substantial part of its assets otherwise than for the
purposes of amalgamation or reconstruction the terms of which have previously
been approved in writing by the Lender;

(g)                                                                                 if the Borrower commits a breach of any of the
covenants, undertakings, stipulations, terms, conditions, representations,
warranties or provisions herein contained and/or contained in the Facility
Letters and on its part to be observed and performed and fails to remedy it
within five (5) business days of the service by the Lender on the Borrower of
notice requiring the same to be remedied;

(h)                                                                                 if a notice or proposal for compulsory acquisition
of the Assets or part thereof shall be issued or made under or by virtue of any
Act;

(i)                                                                                     if, in the reasonable good faith opinion of the
Lender, the security hereunder or the business of the Borrower is in jeopardy
such as to have a material adverse effect on the Borrower’s ability to perform
its obligations hereunder;

(j)                                                                                     if the Borrower shall stop payment to creditors
generally or shall be unable to pay its debts within the meaning of any
applicable legislation relating to insolvency, bankruptcy, liquidation or
winding up;

(k)                                                                                  if it shall become unlawful for the Borrower to
fulfil any of its undertakings or obligations contained herein;

(l)                                                                                     if there shall occur a material adverse change in
the business or assets of the Borrower which would in the reasonable opinion of
the Lender materially and adversely affect the ability of the Borrower to
perform its obligations under this Debenture;

(m)                                                                               if any application is made for an order and/or an
interim order for the Borrower to be placed under judicial management and/or
for the appointment of a judicial manager;

(n)                                                                                 if any step is taken by any person with a view to
the seizure, compulsory acquisition, expropriation or nationalisation of all or
a material part of the assets of the Borrower.

(2)                                                                                  The Borrower shall notify the Lender forthwith in
writing of any occurrence of an Event of Default.

(3)                                                                                  (a)           Subject
to Clause 10(3)(b), the Lender may at any time after the happening of any Event
of Default (whether or not any notice pursuant to Clause 10(2) shall have been
given by the Borrower) by notice in writing to the Borrower declare that the
Term Loanand all interest and other sums payable hereunder have become
immediately due and payable, whereupon the same shall become immediately due
and payable and the Term Loan shall automatically be cancelled.

(b)                                 In the event that such Event of Default as is
referred to in Clause 10(3)(a) is capable of being remedied and shall not have
been fully remedied within fourteen (14) days of the date thereof to the
satisfaction of the Lender then the Lender may, upon the expiration of fourteen
(14) days of the occurrence thereof, declare that the Term Loan and all
interest and other sums payable hereunder have become immediately due and
payable, whereupon the same shall become immediately due and payable and the
Term Loan shall automatically be cancelled. For the purpose of this Sub-Clause,
the Lender shall have the sole and absolute discretion to determine whether or
not an Event of Default is capable of being remedied and/or has been
satisfactorily remedied and such determination by the Lender shall be final,
conclusive and binding on the Borrower.

In
the event of failure by the Borrower to pay any sum on the date on which such
sum is expressed to be due and payable hereunder, the Borrower shall pay to the
Lender all losses and expenses reasonably incurred by the Lender as a
consequence of any such failure to pay and/or any Event of Default, as to which
the certificate of the Lender shall, in the absence of manifest error, be
conclusive and binding.

11.                                                                                 POWERS OF THE LENDER

(1)                           In
the event that there are sums due and owing under this Debenture (including but
not limited to contingent liability fees, legal costs, interests, taxes,
repayment and other expenses incurred under this Debenture) the Lender is
entitled to set off at the Lender’s discretion and without reference to the
Borrower, such sums from any reserves held by the Lender on account of Borrower
arising from factoring facilities offered to the Borrower by the Lender.

(2)                           At
any time after the secured obligations and/or arrangements between the Borrower
and Lender, together with the interest thereon, shall have become immediately
payable under this Debenture or any other agreement between the Borrower and
Lender, the Lender shall have the right to demand for repayment of the whole of
the liabilities under this Debenture, or the balance thereof remaining unpaid
and interest charges and all other moneys due and owing (including contingent
liabilities).

(3)                           At
any time after the secured obligations and/or arrangements and interest thereon
shall have become immediately payable under the provisions of this Debenture
after exercise of its rights to demand payment pursuant to Clause 11(2), the
Lender shall forthwith

be entitled to
exercise all or any of the statutory powers of a mortgagee in respect of the
Assets and in particular and without prejudice to the generality of the
foregoing, the power of sale.

(4)                           At
any time after the security hereby constituted has become enforceable the
Lender may without being responsible for any loss or damage which may arise in
connection therewith and without any consent of the Borrower:-

(a)                                                                                  enter into the land or premises belonging to
and/or occupied by the Borrower anywhere without notice and may take possession
and/or control of the Assets or any part thereof;

(b)                                                                                 sell, call in, collect, convert into money or
otherwise deal with the Assets or any part thereof; and

(c)                                                                                  exercise any power which a receiver appointed by it
could exercise.

12.                                                                                 APPOINTMENT OF RECEIVER

At any time after the Term Loan shall have become
payable under Clause 10 hereof, the Lender may appoint by writing, under the
hand of the Manager or a duly authorised officer of the Lender or the Solicitor
for the time being of the Lender, any person to be a Receiver of the Assets and
may in like manner from time to time remove any such Receiver so appointed and
appoint another in his stead.

13.                                                                                 POWERS OF RECEIVER

A Receiver so appointed shall be the agent of the
Borrower and the Borrower shall be solely responsible for his acts, defaults
and remuneration, except where such acts or defaults are due to the Receiver’s
own fraud, negligence or wilful default or that of its agents.  Such Receiver shall have power:-

(a)                                                                                  to enter into the land or premises belonging to
and/or occupied by the Borrower to take possession and/or control of the Assets
comprised in this security and for that purpose to take any proceedings in the
name of the Borrower or otherwise as he may reasonably deem expedient;

(b)                                                                                 forthwith and without restriction to sell or agree
in selling (obtaining only when and where necessary the leave of any court with
relevant jurisdiction) the Assets or any part thereof by public auction or by
private contract subject to such conditions respecting title or evidence of
title or other matter as he or the Lender may deem fit with power to vary any
contract for sale and to resell without being answerable for any loss
occasioned thereby; any such sale may be for cash, shares, stocks, debentures,
debenture stock or other obligations or valuable consideration and may be
payable in a lump sum or by instalments as he or the Lender shall think fit;

(c)                                                                                  to make any arrangements or enter into any compromise
of the rights of the

Borrower or to recover and
receive all or any part of the Assets as he shall think expedient ;

(d)                                                                                 to repair and keep in repair and make and effect
all or any improvements to the Assets and for this purpose apply in the name of
the Borrower for any licences, permission or consent required under any Act and
to take out, maintain and renew all insurances in respect of the Assets against
loss or damage by fire or any other risk and for such sums as he shall think
fit;

(e)                                                                                  to execute and do all such acts, deeds and things
as to him or the Lender may appear necessary or proper for or in relation to
any of the purposes aforesaid and which he lawfully may or can do as agent for
the Borrower;

(f)                                                                                    generally to do or cause to be done such acts or
things the Borrower may have done in the ordinary conduct of its business as
well as for the protection and for the improvement of the Assets comprised in
this Debenture; and

(g)                                                                                 the Lender and every Receiver, attorney or other
person appointed by the Lender hereunder shall be entitled to be indemnified
out of the Assets hereby charged in respect of all liabilities and expenses
incurred directly or indirectly by any of them in the execution or purported
execution of any of the powers, authorities or discretion vested in them or him
hereunder and against all actions, proceedings, costs, claims and demands in
respect of any matter or thing done or omitted in any way relating to the
Assets hereby charged and the Lender and any such Receiver may retain and pay
all sums in respect of the same out of any moneys received under the powers
hereby conferred.

14.                                                                                 APPOINTMENT OF RECEIVER AS ATTORNEY

The Borrower by way of security hereby irrevocably
appoints any and every Receiver appointed as aforesaid and his substitute or
substitutes its attorney or attorneys, where more than one, jointly and
severally and in its name and on its behalf and as its act and deed to execute,
sign, seal and deliver and otherwise perfect any deed, assurance, agreement,
instrument or act which may be required or may be deemed proper or expedient
for any of the purposes set out in the preceding Clause hereof and with power
for such attorney or attorneys to appoint or remove any substitute or
substitutes.

15.                                                                                 APPLICATION OF MONEYS BY RECEIVER

The net proceeds of any sale and all moneys
recovered in the hands of the Receiver shall be applied by the Receiver subject
to the claims of all secured or unsecured creditors (if any) ranking in
priority to this Debenture:-

(a)                                                                                  FIRSTLY in or towards payment of all reasonably incurred costs, charges and expenses
of and incidental to the appointment of the Receiver and the exercise by him of
all or any of the powers aforesaid including the reasonable remuneration of the
Receiver;

(b)                                                                                 SECONDLY in or towards payment to the Lender of all interest remaining

unpaid on the balance sum for the
time being owing to the Lender;

(c)                                                                                  THIRDLY in or towards payment of all principal moneys and other sums due to the
Lender hereby secured (and where such moneys and liabilities are of a contingent
nature, in or towards making full and adequate provisions for payment of such
moneys and liabilities as and when they become due and payable); and

(d)                                                                                 FOURTHLY any surplus shall be paid to the Borrower.

Save as aforesaid the Lender shall be under no liability
whatsoever to the Receiver for his remuneration, costs, charges, expenses or
otherwise.

16.                                                                                 APPOINTMENT OF RECEIVER NOT AFFECTING OTHER POWERS

The powers of appointment of a Receiver hereunder
shall be in addition to and not to the prejudice of any statutory and other
powers (whether of sale, receiving rents or otherwise) of the Lender or
otherwise and so that such powers shall be and remain exercisable by the Lender
in respect of the Assets of which no appointment of a Receiver by the Lender
shall from time to time be subsisting and that notwithstanding that an
appointment under the provisions hereof shall have subsisted and been withdrawn
in respect of the Assets.

17.                                                                                 INTENTIONALLY LEFT BLANK

18.                                                                                 APPOINTMENT OF LENDER AS ATTORNEY

The Borrower by way of security hereby irrevocably
appoints the Lender and any attorney at the time being of the Lender and either
the Lender or its attorney, where more than one, jointly and severally and in
its name and on its behalf and as its act and deed or otherwise to execute,
sign, seal, deliver and otherwise perfect any such legal or other mortgages,
charges, assignments, transfers or agreements as aforesaid or (without
executing any such mortgage) any deed, assurance, agreement, instrument or act
which may be required or may be deemed proper or expedient for the full
exercise of all or any of the powers hereby conferred on the Lender or the
Receiver for the purposes of enforcing or realising this security.

19.                                                                                 CURRENCY INDEMNITY

(1)                           The
Borrower shall on demand indemnify the Lender against any funding or other
cost, loss, expense or liability sustained or incurred by the Lender as a
result of the occurrence or continuance of any Event of Default.

(2)                                 (a)            Any
amount received or recovered by the Lender in respect of any sum expressed to
be due to the Lender from the Borrower hereunder and/or under the Facility
Letters in a currency (“the Relevant Currency”) other than the currency
specified hereunder and/or under the Facility Letters (“the Currency of Account”)
whether as a result of, or of the enforcement of, a judgment or order of a
court or tribunal of any jurisdiction shall only constitute a discharge to the

Borrower
to the extent of the amount in the Currency of Account which the Lender is
able, in accordance with its usual practice, to purchase with the amount so
received or recovered in the Relevant Currency on the date of that receipt or
recovery (or, if it is not practicable to make that purchase on that date, on
the first date on which it is practicable to do so).

(b)                                 If
the amount received or recovered as aforesaid when converted into the Currency
of Account is less than the amount in the Currency of Account due to the Lender
hereunder and/or under the Facility Letters,
the Borrower shall indemnify the Lender against any loss sustained by the
Lender in that event.  In any event, the
Borrower shall indemnify the Lender against the cost of making any such
purchase.

(3)                           The indemnities
contained in Clauses 19(1) and 19(2) constitute separate and independent obligations
from the other obligations hereunder, shall give rise to separate and
independent causes of action, shall apply irrespective of any indulgence
granted by the Lender and shall continue in full force and effect despite any
judgment, order, claim or proof for a liquidated amount in respect of any sum
due hereunder or any judgment or order. 
No proof or evidence of any actual loss may be required other than proof
of the actual amount in the Currency of Account purchased by the Lender as
mentioned in Clause 19(2)(a) and the date upon which such purchase was
effected.

20.                                                                                 AVOIDANCE OF PAYMENT

No assurance, security or payment which may be
avoided under any law relating to bankruptcy or insolvency or under Section 329
or 330 of the Companies Act (Cap. 50), and no release, settlement or discharge
given or made by the Lender on the faith of any such assurance, security or
payment shall prejudice or affect the right of the Lender to enforce the
security created by this Debenture in respect of the full extent of the moneys
hereby secured.  Any such release,
settlement or discharge shall be deemed to be made subject to the condition
that it will be void, if any payment or security which the Lender may
previously have received or may thereafter receive from any person in respect
of the facilities and liabilities as set out in Clause 1 is set aside under any
applicable law or proves to have been for any reason invalid.

21.                                                                                 INTENTIONALLY LEFT BLANK

22.                                                                                 NO ENQUIRY BY THIRD PARTY

Any person dealing with the Lender or the Receiver
shall not be concerned to enquire whether any event has happened upon which any
of the powers contained in these presents are or may be exercisable by the
Lender or the Receiver or otherwise as to the propriety or regularity of any
exercise thereof or of any act purporting or intended to be exercised thereof
or whether any money remains owing upon this security.

23.                                                                                 THE LENDER NOT ANSWERABLE FOR LOSS

The Lender shall not be answerable for any
involuntary loss happening on or about the exercise or execution of the powers
or trusts which may be vested in the Lender by

virtue of this Debenture or by any law or rule of law for
the time being in force.

24.                                                                                 WAIVER NOT TO PREJUDICE RIGHT OF LENDER

The Lender may from time to time and at any time
waive either unconditionally or on such terms and conditions as it may deem fit
any breach by the Borrower of any of the covenants, undertakings, stipulations,
terms and conditions herein contained and any modification thereof PROVIDED
ALWAYS and it is hereby expressly agreed and declared that:-

(a)                                                                                  no neglect or forbearance of the Lender to require
and enforce payment of moneys hereunder or the performance and observance of
any undertakings stipulations terms and conditions herein nor at any time which
may be given to the Borrower shall in any way prejudice or affect any of the
rights, powers or remedies of the Lender at any time afterwards to act strictly
in accordance with the provisions of this Debenture; and

(b)                                                                                 no such waiver of any such breach as aforesaid shall
prejudice the rights of the Lender in respect of any other or subsequent breach
of any of the undertakings, stipulations, terms and conditions aforesaid.

25.                                                                                 RIGHT OF CONSOLIDATION

Section 21(1) of the Conveyancing and Law of
Property Act (Cap. 61) (restricting the right of consolidation) shall not apply
to this security, and in addition and without prejudice to any right of
consolidation, none of the property of the Borrower which at the date hereof is
or which at any time hereafter shall become subject to a mortgage or a charge
in favour of or vested in the Lender shall be redeemed except on payment of not
only moneys thereby secured but also all moneys secured by this Debenture.

26.                                                                                 INDULGENCE OF THE LENDER

The security created by this Debenture shall not
be discharged or affected by (1) any time, indulgence, waiver or consent at any
time given to the Borrower or any other person, (2) any amendment to any of the
Facility Letters or this Debenture or any other agreement, security, guarantee,
indemnity, right, remedy or lien, (3) the making or absence of any demand on
the Borrower or any other person for payment, (4) the enforcement or absence of
enforcement of any of the Facility Letters or this Debenture or any other
agreement, security, guarantee, indemnity, right, remedy or lien, (5) the
release of this Debenture or any other agreement, security, guarantee,
indemnity, right, remedy or lien (including the release of any of the Assets),
(6) the winding-up, amalgamation, reconstruction or reorganisation of the
Borrower or any other person (or the commencement of any of the foregoing), (7)
the illegality, invalidity or unenforceability of or any defect in any
provision of the Facility Letters or this Debenture or any other agreement, security,
guarantee, indemnity, right, remedy or lien or any of the obligations of any of
the parties thereunder or (8) any other matter or thing whatsoever.

27.                                                                                 PAYMENT OF COSTS

The Borrower shall pay:-

(a)                                                                                  all costs, fees, expenses and other charges legal
or otherwise including stamp duty and the Lender’s solicitor’s costs reasonably
incurred in connection with the preparation execution and registration of this
Debenture or any mortgages, pledges, guarantees or other documents required by
the Lender under the provisions of this Debenture, which fees shall not exceed
$7,000.00 US Dollars; and

(b)                                                                                 all legal fees on a full indemnity basis and other
costs and disbursements incurred in connection with demanding and enforcing
payment of moneys due hereunder or otherwise howsoever in enforcing this
security and/or any of the covenants, undertakings, stipulations, terms,
conditions or provisions of this Debenture.

28.                                                                                 SERVICE OF DEMAND OR NOTICE

(1)                           A
demand for payment of moneys or any other demand notice or other communication
under this Debenture may be made in writing by the Secretary, Manager,
Financial Officer, Legal Officer or other authorised officer for the time being
of the Lender or by any person or firm for the time being acting as Solicitor
for the Lender by letter addressed to the Borrower and sent by prepaid
registered post to or delivered at the place hereinafter provided.  Any and every demand notice or communication
sent by post shall be deemed to have been received two (2) days after the day
on which the letter was posted in Singapore and notwithstanding the fact that
the letter may be returned through the post undelivered.

(2)                           For
the purpose of this Clause, the Borrower shall from time to time notify the
Lender in writing of some place in the Republic of Singapore where such demand
notice or other communication as aforesaid can be served. In the absence of
such notification any demand notice or other communication may be sent by post
to or delivered at the Borrower’s registered office for the time being or at
its last known place of business in Singapore.

(3)                           Any
notice or other communication required to be given or made by the Borrower to
the Lender shall (unless the Lender allows otherwise) be sent only by personal
delivery or registered post to the Lender at the address herein mentioned or
such other address as may be notified by the Lender to the Borrower from time
to time for this purpose and will be effective only when actually received by
the Lender.

29.                                                                                 CERTIFICATE OF LENDER CONCLUSIVE

A certificate in writing signed by a duly
authorised officer of the Lender and certifying the total amount due at any
time in respect of the Term Loan and/or interest thereon, owing or payable by
the Borrower to the Lender under or by virtue of any terms, conditions or
stipulations of this Debenture or otherwise and setting out the computation and
basis thereof and any other certificate, determination, notification or opinion
of the Lender pursuant to this Debenture, shall (in the absence of any manifest
error) be conclusive of the matters so certified and binding upon the Borrower.

30.                                                                                 SET OFF

Following an Event of Default, the Lender may
without notice to the Borrower and without prejudice to any other rights it may
have under any applicable law or agreement, combine, consolidate or merge all
or any of the Borrower’s accounts and/or balances in any arrangement in any
currency and at any branch of the Lender (whether at or prior to the maturity
thereof) with liabilities to the Lender and may set off or transfer any sum
standing to the credit of any such accounts and/or balances in or towards the
satisfaction of any of the Borrower’s liabilities to the Lender under this
Debenture, and may do so notwithstanding that the balances on such accounts
and/or balances and the liabilities may not be expressed in the same currency
and the Lender is hereby authorised to effect any necessary conversions at the
Lender’s own rate of exchange(s) then prevailing Provided Always that the
satisfaction of such Borrower’s liabilities to the Lender will only be to the
extent of the amount in the relevant currency which the Lender is able, in
accordance with its usual practice, to purchase with the balances on such
accounts and/or balances on the date of such set off (or, if it is not
practicable to make that purchase on that date, on the first date on which it
is practicable to do so) and the Borrower shall indemnify the Lender against
the cost of making any such purchase aforesaid.

31.                                                                                 INDEMNITY

The Borrower hereby agrees to indemnify on demand
both the Lender and any such Receiver appointed hereunder against all losses,
actions, claims, expenses, demands and liabilities whether in contract tort or
otherwise now or hereafter incurred by it or him or by any manager, agent,
officer or employee for whose liability act or omission it or he may be
answerable for anything done or omitted in the exercise or purported exercise
of the powers herein contained or occasioned by any breach by the Borrower of
any of its covenants or other obligations to the Lender, except where such
losses, actions, claims, expenses, demands and liabilities are due to the
willful default or negligence of the Lender or the Receiver.

32.                                                                                 THIRD PARTY RIGHTS

Nothing in this Deed of Debenture shall confer on
any person who is not a party to this Deed of Debenture a right to enforce any
terms of this Deed of Debenture and the provisions of the Contracts (Rights of
Third Parties) Act 2001 (Cap 53B) which might otherwise be interpreted to
confer such rights to such persons shall not apply and are expressly excluded
from applying to this Deed of Debenture and no consent of any third party is
required for any variation (including any release or compromise of any
liability) or termination of this Deed of Debenture.

33.                                                                                 MISCELLANEOUS

The Lender may at its discretion, but shall not be
under any obligation to do so, pay on behalf of the Borrower any insurance
premia, legal fees, stamp fees, taxes, rates or any cost or expenses in respect
of legal documents and/or the Assets. In such an event, the Lender shall have
the right to charge the Borrower interest on all  such
amounts due until they are repaid by the Borrower at such rate or rates and
upon such terms and on such basis and calculated on monthly/annual rests or
such other periodic rests as the Lender may in its absolute discretion
determine, calculated from the date of payment thereof by the Lender up to the
date of repayment by the Borrower and until so repaid shall be included in and
subject to

the charges herein created.

34.                                                                                 GOODS AND SERVICES TAX

In the event that any goods and services tax or
any taxes, levies or charges  whatsoever
are now or hereafter required by law to be paid on or in respect of any sums
whatsoever payable by the Borrower or any other matters whatsoever under or
relating to the Term Loan, the same shall (except to the extent prohibited by
law) be borne by the Borrower and the Borrower shall indemnify the Lender (to
such extent as shall not be prohibited by law) against all such goods and
services tax or other taxes levies or charges whatsoever and shall from time to
time on demand pay to the Lender the amount certified by the Lender be
necessary to indemnify the Lender.

35.                                                                                 SEVERABILITY

Each of the provisions of this Debenture is
severable and distinct from the others and if at any time one or more of such
provisions is or becomes invalid illegal or unenforceable, the validity
legality and enforceability of the remaining provisions hereof shall not in any
way be affected or impaired thereby.

36.                                                                                 GOVERNING LAW AND JURISDICTION

This Deed shall be governed by and construed in
accordance with the laws of Singapore and all the parties hereto submit to the
non-exclusive jurisdiction of the Courts of the Republic of Singapore.

IN WITNESS WHEREOF the
Borrower has caused its Common Seal to be hereunto affixed.

 

	
  The Common Seal of

  	
  )

  
	
  COMBINATORX
  (SINGAPORE) PTE. LTD.

  	
  )

  
	
  (ACRA
  Registration No. 200511269N)

  	
  )

  
	
  was hereunto
  affixed in the presence of:-

  	
  )

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Ralf Altmeyer

  	
  ) DIRECTOR

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ) DIRECTOR/SECRETARY

  

 

 

I, Ricquier William John Munden,
an Advocate and Solicitor of the Supreme Court in the Republic of Singapore
practising in the Republic of Singapore hereby certify that on the 14th day of February,
A.D. 2007, the Common Seal of COMBINATORX
(SINGAPORE) PTE. LTD. was duly affixed to the within written
instrument at Singapore in my presence in accordance with the regulations of
the said Company (which regulations have been produced and shown to me).

WITNESS my hand this 14th day of
February, 2007.

	
  

  	
  /s/ Ricquier William John Munden

  
	
   

  	
  Advocate & Solicitor Singapore

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