Terms and Conditions

1. OCBC Interest-Free Loan
2. OCBC Option
3. SPRING Singapore grant
4. RSM Chio Lim consulting package
5 .NUS Extension educational package

OCBC Interest-Free Loan

1. How long is the term of the prize money?
A: The loan is over a 5-year term.

2. How much is the prize money?
A: The loan amount is S$150k.

3. Will the prize money be provided as a lump sum disbursement?
A: Yes, it will be a one-time disbursement.

4. What can I use the prize money for?
A: It should be used to expand and grow your business according to the business plan submitted for the application.

5. When is the maturity of the prize money?
A: This is a 5-year loan and it will mature from the time of fund disbursement.

6. Where will be money be credited to?
A: The money will be credited to an OCBC Bank Current Account. If you do not have an existing account, an account can be opened within 1 working day.

7. If the Bank exercises the Option prior to the maturity of the Facility, do we have to prepay the Facility?
A: The facility and the Option are 2 separate arrangements. If the Option is exercised, the Facility can remain outstanding until its maturity.

8. Do I have an option of not taking up the prize money?
A: No. As a winner, you will have to sign the Letter of Offer and the Option Agreement. But you may choose not to utilize the prize money.

Processes

9. If the prize money is provided only upon request, how long will the disbursement take?
A: It will take 3 working days for the loan to be disbursed.

10. Must I still submit documents to obtain the prize money?
A: You will need to submit the following documents:
(i) Deed of Guarantee
(ii) Board Resolution
(iii) I/C
(iv) Income Statement.

Charges

11. How much is the interest rate for this prize money?
A: This is an interest-free 5-year term loan.

12. Will there be any processing fee?
A: No. The processing fee of 1% which is equivalent to S$1,500 will be waived.

13. Will there be any other charges?
A: There will not be any out of pocket expenses.

Personal Guarantors

14. Do we need to provide a guarantee?
A: Yes, as the Facility is a loan to the company.
A: For Pte Ltd, all directors have to be the guarantor.

15. Can a guarantor be a foreigner?
A: Yes, the guarantor can be a foreigner.

16. Will we need to pledge any assets?
A: No, you do not need to pledge any collateral.

17. What if the company is unable to pay up the loan in 5 years?
A: The bank will evaluate the company’s financial status and work out a suitable repayment scheme.

18. If one of my shareholders is a company, do you require its guarantee?
A: Yes.

OCBC Option
By accepting the [loan/prize money], these are the main terms and conditions.

OCBC Bank will have the right to purchase up to 5% stake in the company at a lower of 1) 30% discount to IPO price or 2) five times of Profit After Tax of the year of exercise of the option. The option has to be exercised within 5 years.

1. What is the Option?
A: A legal arrangement that gives the bank the right, but not the obligation, to buy shares in a company at a specific price within a specific time.

2. Can I disagree to the Option?
A: The granting of these options is part of the terms and conditions for the Bank to grant the Facility. In order to be a winner, you will have to grant the Option to the Bank.

3. Why is OCBC Bank keen to purchase the company shares?
A: To support emerging businesses in Singapore and to participate in their growth potential.

4. Does purchasing of the company share means that OCBC Bank will have control over the business?
A: OCBC Bank will not control the way the business is managed.

5. Can I pay up the loan before 5 years? Does it mean that the Option is not valid?
A: Yes, you may prepay the loan prior to its legal maturity. The Facility and the Option are 2 separate arrangements. Even if the Facility is repaid in full, the Option remains valid.

6. What are the benefits to the company when OCBC Bank buys the Company’s shares?

• OCBC Bank can potentially become a shareholder in the company. This shows an endorsement and commitment by the bank to the business fundamentals of the company.

• When OCBC Bank exercised the Option, new additional funds are injected into the company. The company can use the funds to repay its loans, for working capital or purchase new assets.

• When the Option is exercised, the company’s share capital is increased and the overall gearing ratio is reduced. Thus, the company will have capacity to borrow more.

7.  When will the shares be issued to OCBC Bank?
A: The new shares in the Company will be issued to OCBC Bank only upon the exercise of the Option.

8. Will OCBC bank sell all its shares at IPO?
A: OCBC Bank will analyze the future potential and industry outlook of the investment before deciding on our exit strategy.

9. Is it compulsory for OCBC to exercise the option?
A: No, it is not compulsory for OCBC to exercise the option.

10. Am I allowed to have any other investors when OCBC Bank has options in my company?
A: Yes, there may be other investors in the company when OCBC Bank has valid options, however, OCBC should be consulted prior to the introduction of new shareholders.

11. Do the existing shareholders have first right to acquire any shares of the Company from OCBC after OCBC has exercised the Option?
A: No

12. Can the option period be shortened from 5 years to 3 years?
A: No

13. Can the option amount be reduced from 5% to 3%?
A: No

14. Numerical example

16. Who shall provide the Option to OCBC?
A: Only companies limited by shares (i.e private limited and public limited companies) shall provide the Option.

17. How do I provide the Option if my business is a sole proprietorship or partnership?
A: Sole proprietorship and partnership will have to register their business as a Private or Public Limited company and transfer their existing business into the new Company prior to providing and signing the Option and drawing down on the loan..

SPRING Singapore grant

1.  What kind of support is provided under the development grant from SPRING Singapore?

A: The grant will support up to 50% of the eligible cost of new developmental projects incurred by the SME. The project should enable the SMEs to upgrade their capabilities and lead to significant improvements in products/services, processes, applications, practices or operations. The grant will be disbursed on a reimbursement basis.

RSM Chio Lim 'Planning for Growth' consulting package

1. What is RSM Chio Lim’s role in this award?

 A: As official auditor of the award, we will verify if the applicants meet the qualifying criteria and review their business plans, grade and short-list ten (10) applicants based on the judging criteria set out by the organizers. These ten (10) applicants will be invited to give a short presentation to the panel of judges who will select the three (3) winners.

As a sponsor of the award, RSM Chio Lim is offering our 'Planning for Growth' consulting programme worth $30,000.

2. What is the 'Planning for Growth' Programme?

A: "Planning for Growth" is a consulting programme run by affiliate companies of RSM Chio Lim LLP. It seeks to help the entrepreneur appreciate the business fundamentals that must be in place before it can successfully grow to the next level. We will help the entrepreneur chart the growth plan and roadmap of the business towards achieving its plans. An assessment of the existing 'health' of the company from the financial and IT perspectives will be undertaken. The corporate financial health check will illustrate how the entity can more efficiently track its financial performance and position, while the IT health check will illustrate how it can optimize its IT resources to meet its business objectives. Areas for improvements in the company's IT asset, security and storage management will also be identified.

In the course of the consulting, the experts will also share their expertise on how the entrepreneur can successfully grow his business, avoid common business pitfalls, and acquire IT best practices to improve data confidentiality, integrity and availability. At the end of the consulting, the entrepreneur will have a clear understanding of what he needs to do to reach his goals, using IT as an enabler.

3. What are the deliverables? What will the winners get at the end of the consulting?

A: The deliverables include the following:  
- a financial diagnostic review report that gives the entrepreneur an in-depth understanding of the revenue model and working capital needs of the business.  
- an IT asset documentation report  
- advice on corporate and IT best practices  
- one Payday! payroll software  
- MS Excel 2007 for Business full-day training for 5 persons  
- an IBM Tower Server with Intel Dual-Core Processor (Windows Server Operating System not included)  
- installation and configuration services for the IBM Tower

NUS Extension educational package

Terms & Conditions

1) What is NUS Extension sponsoring for Emerging Enterprise 2009?

NUS Extension is sponsoring education grant of S$30,000 per winner. Through this grant, the winners will be able to send their staff for training programs conducted by NUS Extension.

2) How would the education grant be administered?

The education grant would be administered by NUS Extension and staff selected by the companies would be required to attend a series of training programs. These training programs would be pre-determined by NUS Extension. Proposed areas of training include sales & marketing, human resource, finance, communication and interpersonal skills, innovation and project management. Upon completion of each training program, a Certificate of Attendance will be awarded.

3) Are there any entry requirements for the training programs?

Yes. staff selected for the training programs should preferably have min 5 years of work experience or is in a managerial position, preferably with a bachelor degree or its equivalence. NUS Extension will review on a case by case basis for staff selected by the company that do not have the required pre-requisite.

4) Can the education grant be exchanged for cash?

No. The education grant can only be used by staff selected by the winning companies to attend the training programs conducted by NUS Extension. Exchange of education grant for cash is strictly not allowed.

5) Is there an expiry date for the use of the education grant?

Yes. The education grant must be utilized within a year from date of award. Any unconsumed grant would be forfeited and exchange for cash is strictly not allowed.

6) What is the structure of the program like?

Staff selected would be required to attend 6 modules (1 module = 1 training program) of the Professional Certificate in Business program. Out of these 6 modules, 4 are common modules and 2 are electives. NUS Extension would pre-determine the 4 common modules and the list of electives. NUS Extension reserves the right to replace pre-determined modules with other modules of equivalent content.

7) How long is the duration of the training programs? When are they conducted, i.e. morning or evening classes?

The training programs could range from 2 – 3 days in duration. Majority of the training programs are conducted in the morning, and would last for 8 hours per day. There are some programs that are conducted on Saturdays.

8) How many staff can we send for each training program?

A max of 6 staff for each training program.

9) If the staff cannot attend the training programs on the designated training dates, can we defer the training?

No deferment is allowed, thus, companies are encouraged to make provision to allow the staff selected to attend the training programs. Alternatively, another staff can be selected to attend the training as well.

10) How can we register for the training programs?

An acceptance letter would be provided to each winning company. Registration form together with an information sheet on registration procedures would be attached to the letter. The registration form must be completed and sent to NUS Extension via fax at least 2 weeks prior to the commencement of the training programs.

11) Are there any attendance requirements for the training programs?

Yes. 75% attendance must be achieved before the Certificate of Attendance will be awarded.