Ann: Change of Director's Interest Notice, page-7

Not quite, he did have to agree to certain conditions. Whilst I'm not confident that Li will do anything in China I am hopeful that the highlighted text in yellow below refers to his removal along with the other Careline bench sitters. In my opinion letting Li of the hook was also at the price of the chair and he has been told.

• All performance-based shares and options remaining in the agreement are relinquished.

• Dr Norman Li / Careline will escrow all of their shares for 12 months as a sign of their commitment to growing the company and expanding Asian sales for the company’s products. Dr Norman Li has expressed to the Board that he and Careline are committed for the long term.

• Dr Norman Li / Careline will transfer any shares not directly owned and controlled by Dr Norman Li or Careline to the ultimate beneficial owners. These are mainly co-investors and distribution groups that are assisting with Careline’s FOD distribution execution. The shares are being separated from Dr Norman Li / Careline’s holding as Dr Norman Li / Careline will be escrowing their FOD shares.

• Dr Norman Li and Careline have committed their resources and that of C-mart (ecommerce platform) to manage and sell FOD’s brands into Asia and China. Careline has substantial infrastructure in China and has made these resources available to FOD. Some of the previous forays into the China market have been hampered by quality issues, with the products not surviving shipping to China. This has now been rectified with a new ambient line of products which will now be promoted into Careline’s distribution partners in China along with the functional health products from the new clean room. The quality of products and Export strategy are now aligned with FOD having the manufacturing capability to supply Chinese and other Asian markets where Careline has distribution capabilities.

• Regarding the Board structure, all parties have agreed to the appointment of independent directors to assist in the corporate governance and assisted management of the business. The intent is for new Board appointments to have FMCG as well as public company experience. The Board restructure will involve the possible retirement of some directors and will include a review of the leadership of the Board.Outlook