continued - The Lion Group

OTHER INFORMATION
(I) MATERIAL CONTRACTS INVOLVING DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS
Conditional Option Agreement dated 30 September 2009 entered into between Megasteel Sdn Bhd (“Megasteel”),
a 79% owned subsidiary of the Company, and Tan Sri William H.J. Cheng (“TSWC”), the Chairman and Managing
Director of the Company having a substantial interest in the Company and Megasteel, whereby TSWC grants an
option to Megasteel to put to him 102,000,000 ordinary shares of RM1.00 each representing approximately 14.31%
equity interest in Lion Industries Corporation Berhad (“LICB”) on any market day within the period commencing
on the later of 1 October 2009 or the date of the receipt by the security trustee, who is acting for the benefit of
Megasteel’s lenders, of a notice from Megasteel that the last of the conditions precedent in the Conditional Option
Agreement has been obtained and ending at 5.00 pm on 31 December 2009 or ten (10) market days from the
unconditional date, whichever is the later, at the exercise price, to be determined based on the 10-day weighted
average price of LICB shares preceding the exercise date of the put option, to be paid in 2 equal tranches, i.e. by
31 March 2010 and 30 June 2010.
(II) NON-AUDIT FEES
The amount of non-audit fees paid or payable to external auditors for the financial year was RM Nil (2009 :
RM55,000).
(III) RECURRENT RELATED PARTY TRANSACTIONS
The aggregate value of transactions conducted during the financial year ended 30 June 2010 were as follows:
Nature of Recurrent Transactions Related Parties Amount
RM’000
(a) Steel related
(i) The sale of hot rolled coils, steel Lion Industries Corporation Berhad Group 846,231
bars, steel plates, billets, (“LICB Group”) (1)
scrap iron, gases and other Lion Holdings Pte Ltd Group 3,347
related products and services (“LHPL Group”) (2)
Lion Diversified Holdings Berhad Group 87,160
(“LDHB Group”) (1)
Lion Forest Industries Berhad Group 14,861
(“LFIB Group”) (1)
Megasteel Sdn Bhd Group 22,382
(“Megasteel Group”) (3)
128
973,981
(ii) The purchase of hot briquetted LICB Group (1) 1,190,389
iron, scrap iron and other LHPL Group (2) 670,877
related products and services Ributasi Holdings Sdn Bhd Group (2) 43,843
LDHB Group (1) 1,196,598
Lion Asiapac Limited Group (4) 30,570
LFIB Group (1) 1,146
Mitsui & Co., Ltd (5) 34,983
Megasteel Group (3) 352,910
3,521,316
(iii) The purchase of machinery, LFIB Group (1) 3,385
spare parts, lubricants, tools
and dies and other related
products and services