Further to our announcement made on 12 April 2010 on the entering of Joint Development Agreement between Timberion and TESB, the Company wishes to announce that Timberion, a wholly owned subsidiary of the Company had on 12 November 2010 entered into a SDA with TESB to vary terms and conditions in the Joint Venture Development Agreement as follows:-
(a) Timberion shall pay to TESB the sum of RM10,000.00 being Agreed Transfer Sum. Upon the payment of the Agreed Transfer Sum, TESB shall cause the development land to be transferred to Timberion.
(b) The bridging loan facility ("BL") of RM5.5 million granted by United Overseas Bank (M) Berhad ("UOB") obtained by TESB shall be novated to Timberion to be secured by the relevant Legal Charge.
(c) Timberion shall assume all liabilities and obligations of TESB to pay to UOB:-
(i) The outstanding payable by TESB to UOB under and pursuant to the facilities ("TESB payment sum")
(ii) The BL facility as may be drawn down by TESB under the facilities granted by UOB
(d) The Development Rights Consideration shall be adjusted by reducing the same by an amount equivalent to the TESB payment sum and the Agreed Transfer Sum
This announcement is dated 12 November 2010