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1. INTRODUCTION
The Board of Directors wishes to announce that the Company and its wholly-owned subsidiary, Focus Point Vision Care Group Sdn Bhd ("FPVCG") had on 22 November 2010 entered into a Further & Supplemental Agreement (the "Supplemental Agreement") to the Main Lens Supply Agreement dated 1 January 2008 (the "Original Agreement") with Hoya Lens Manufacturing Malaysia Sdn Bhd and iLens Sdn Bhd (formerly known as Focus Preference Sdn Bhd).
2. SALIENT TERMS OF THE SUPPLEMENTAL AGREEMENT
2.1 The Supplemental Agreement varies the supply arrangement of the ophthalmic lenses from an initial period of 5 years in the Original Agreement to a period of 7 years and 3 months ending on 31 December 2017 ("Contact Period");
2.2 The aggregate minimum amount of purchases by FPVCG shall amount to at least RM120,100,000 over the Contract Period;
2.3 All entitlements of FPVCG to the business incentives and rebates as provided for in the Original Agreement are waived and discontinued immediately. However, Hoya Lens Manufacturing Malaysia Sdn Bhd shall make a cumulative payment of RM25,000,000 to FPVCG as marketing and promotional support payment over the Contract Period for the sole and exclusive purposes of promoting, marketing and advertising Hoya products and creating brand presence of Hoya products; and
2.4 If FPVCG fails to achieve a minimum of 80% of the aggregate minimum amount of purchases set for any one year, Hoya Lens Manufacturing Malaysia Sdn Bhd shall retain the right to terminate the entire arrangement with FPVCG and FPVCG being liable to make payment of liquidated damages as provided for in the Supplemental Agreement.
3. DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS
None of the Directors, major shareholders of the Company and/or persons connected with them has any interest, direct and/or indirect in the transaction.
4. FINANCIAL EFFECTS
The transaction is expected to have positive financial impact on the earnings and net assets of the Company for the financial ending 31 December 2010.
5. DIRECTORS' STATEMENT
The Board of Directors of Focus Point is of the opnion that the transaction is in the best interest of the Company.
The announcement is dated 22 November 2010.
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