Unless otherwise defined, all abbreviations and definitions used herein shall have the same meaning as defined in the Company’s announcement made on 8th February 2024.

Further to the announcement made on 8th February 2024, KKB Engineering Berhad (“KKBEB”) wishes to further announce that the salient terms of the MOU are as follows:

The MOU was made and entered into on 26th January 2024 (the “Effective Date”)

(1)  SECL is an experienced main contractor for the execution of certain engineering, procurement and construction projects worldwide and intends to participate in tenders for such projects (hereinafter referred to as a “Project” or “Projects” as the context requires).

1.  General Agreement

1.1   The Parties shall, in close collaboration with each other, use best efforts for the successful award of certain Projects and, if awarded, for the development and implementation of the said Projects. For the avoidance of doubt, such collaboration shall include the preparation of tenders by SECL (“Tender”) with input of necessary information or data from OMSB (“Proposal”), as may be agreed to between the Parties.

1.2   If requested by SECL, OMSB agrees to provide SECL with its most competitive price for the Proposal on the item/unit basis, which shall serve as the basis for SECL’s Tender and execution of all future Projects the Parties may collaborate on. For sake of clarity, nothing contained herein imposes an obligation on SECL to invite OMSB to submit a Proposal for any particular Project.

1.3   If a Tender is successful and the relevant Project is awarded to SECL, the Parties shall negotiate in good faith and execute a Purchase Order (“PO”) for such Project for the work and services contemplated to be provided by OMSB for the Project.

1.4   The Parties acknowledge that it is not feasible to adequately foresee and address every issue involving the collaboration of the Parties until a definitive agreement has been entered into. The Parties shall therefore use their best endeavors to further their mutual interest under this MOU in accordance with the spirit of close cooperation and mutual assistance.

2.  Term and Termination

2.1  The MOU shall take effect on the Effective Date and shall continue in force and effect for twenty-four (24) months from the Effective Date unless the Parties agree in writing to extend it.

The Board is of the opinion that the above understanding, once formalized, will be in the best interest of KKB Group of Companies.

This Announcement is dated 16th February 2024.