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The Level 5 Lease is effective from 1 September 1999 and is for a period of two years. The aggregate
monthly rental payable on the first day of each calendar month by us for the Level 5 Lease is
$26,052.00. This is calculated on a $3.00 per square foot basis comprising a rental fee of $1.053
per square foot and a service charge of $1.947 per square foot. The office space under the Level 5
Lease has an area of 8,684 square foot.
The Level 3 Lease is effective from 1 January 2000 and is for a period of one year and eight
months. The aggregate monthly rental payable on the first day of each calendar month by us for the
Level 3 Lease is $7,728.00. This is calculated on the same basis as the Level 5 Lease. The office
space under the Level 3 Lease has an area of 2,576 square foot.
SNPL may re-enter and re-possess any of the premises under the Leases or any part thereof and
absolutely determine the tenancy if we (i) fail to pay the rent for 14 days after the rent becomes
payable; (ii) breach any of our covenants under the Lease Agreement; or (iii) enter into any composition
with our creditors or suffer any distress or execution to be levied on our goods or shall go into
liquidation (save for purposes of amalgamation or reconstruction). On the other hand, we may terminate
the Leases by giving SNPL a three-month notice in writing of our intention to do so.
SNPL is a wholly-owned subsidiary of SPH.
Memorandum of Understanding for Collaboration in Electronic Classified Advertisements
On 27 March 2000, we entered into a Memorandum of Understanding (“MOU”) with our shareholder,
SPH, whereby we set out our intention to collaborate with each other to, amongst others, (i) establish
state-of-the-art electronic classified advertisements to be accessible on our websites; (ii) enhance
classified advertisements so as to provide consumers with a seamless and convenient service; and
(iii) repackage classified advertisements with content and services from our websites to facilitate
completion of transactions.
We will provide the necessary technical resources and expertise to provide an electronic platform to
facilitate the above purposes while SPH will tap on its network of customers and its experience in
the procurement and administration of classified advertisement bookings.
The sharing of revenue resulting from this collaboration will be negotiated between ourselves and
SPH.
Media Representative Agreement
INTERESTED PERSON TRANSACTIONS
We have also entered into an advertising media representative agreement (“Media Representative
Agreement”) with SPH on 12 April 2000. Under the Media Representative Agreement, we appointed
SPH as our electronic advertisement media representative in Singapore on an exclusive basis and
in Asia (East of India) on a non-exclusive basis.
As consideration for this appointment, SPH shall be entitled to retain 35% of all advertising revenue
generated by it through the sale of our advertisements pursuant to the Media Representative
Agreement.
The Media Representative Agreement is for a period of 24 months and may, amongst others, be
terminated by 90 days’ written notice served by either ourselves or SPH.
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