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Message: Re: Sandales99 PharamSave

Feb 11, 2010 07:43PM

from the MD&A

The Company has a limited number of customers and is dependent on a few key accounts to maintain its

current levels of sales.

The key customers during the period being reported on are as follows.

• Shoppers Drug Mart Corporation (“Shoppers”) started selling the Company’s T36® Antiseptic Hand

Sanitizer on November 26, 2009. Shoppers operates over 1,170 Shoppers Drug Mart and Pharmaprix

stores across Canada and provides national distribution of the Company’s products to consumers.

• On July 15, 2009, VANOC entered into a letter of intent to establish the Company as the Official

Supplier of the Vancouver 2010 Olympic Winter Games and the Vancouver 2010 Paralympic Winter

Games (collectively “the Winter Games”), the Canadian Olympic Committee, the 2010 Canadian

Olympic Team and the 2012 Canadian Olympic Team for antiseptic hand sanitizer, disinfectant and

disinfectant cleaning products. Under the terms of the letter of intent, VANOC, the Canadian Olympic

Committee and the 2010 and 2012 Canadian Olympic Teams will purchase products from the

Company until December 31, 2012.

• London Drugs entered into a Vendor Agreement with the Company and started selling T36® Antiseptic

Hand Sanitizer and T36® Disinfectant in October, 2009. London Drugs operates 70 stores in the four

Western provinces of Canada.

• AGI entered into a Supplier Agreement with the Company in October, 2009 and will distribute the

Company’s products across Canada. AGI is Canada’s largest distributor of industrial, safety and

fastener products with a comprehensive catalogue, 160 branches and 5 distribution centres across the

country. Acklands-Grainger is the Official Supplier of the Vancouver 2010 Olympic Winter Games,

Vancouver 2010 Paralympic Winter Games, the Canadian Olympic Committee, the 2010 Canadian

Olympic Team and the 2012 Canadian Olympic Team for industrial safety and material handling

supplies.

• Kohl & Frisch Limited distributes to Pharmasave Drugs (National) Ltd. (“Pharmasave”) stores in

Western Canada and Ontario. Pharmasave has over 400 stores across Canada.

• T&T Supermarket Inc. (“T&T”) is a supermarket chain that provides Asian food products that are not

available in other retail outlets with eight stores in Greater Vancouver, two in Calgary, two in

Edmonton and five stores in Greater Toronto, making a total of 17 stores in the chain.

• Marketplace IGA has 42 stores located throughout British Columbia.

• Esthetics Plus, Inc.: A distributor to the beauty market with a contract that renews on an annual basis.

Either party can terminate the contract on 60 days notice or with 30 days notice for any breach of the

contract if the breach is not rectified within the 30 day notice period,

• Sinclair Dental Limited: A distributor to the dental market and a customer of both API and the

Company for 8 years,

• The Stevens Company Limited: A distributor to the scientific and medical markets and a customer of

both API and the Company for 8 years, and

• VWR International: A distributor to the laboratory market and customer of API and the Company for 8

years.

• Product Distribution Centre: A distributor that is owned by the provincial government of BC, supplies

the province’s public sector consumers within BC and a customer of the Company and API for 8 years.


Feb 11, 2010 09:52PM
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