UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): September 21, 2006
(September 15, 2006)
CONCORD CAMERA CORP.
(Exact name of registrant as specified in its charter)
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New Jersey 13-3152196
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(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification Number)
0-17038
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(Commission File Number)
4000 Hollywood Boulevard, North Tower, Hollywood, Florida 33021
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (954) 331-4200
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
|_| Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 1.01. ENTRY INTO A MATERIAL AGREEMENT.
On September 15, 2006, the local governmental authorities in Shenzhen province,
People's Republic of China ("PRC"), extended for an additional ten-year term the
validity of the business license held by Concord Camera Heng Gang Electronic
Factory, the operating unit in the PRC of Concord Camera HK Limited ("CCHK"), a
wholly owned subsidiary of Concord Camera Corp. ("Concord"). The business
license, which was issued on October 28, 1991 and renewed in October 1996, is
now valid until October 26, 2016.
The extension of the business license constituted the required governmental
approval of the Agreement for Contract Processing (the "Agreement") dated July
11, 2006 among CCHK, Shenzhen Henggang Investment Co. Ltd. ("Investment
Company") and Shenzhen Longgang Xietiao Electronics Factory (the "Factory" and
together with the Investment Company, the "Henggang Factory"). The Agreement
extends for an additional ten-year term the Master Processing Contract No.
(86)507 (the "Master Processing Contract") that was to have expired on October
28, 2006.
As previously disclosed in reports filed with the Commission, Concord's
operations are substantially dependent on its manufacturing and assembly
activities in the PRC. The Agreement permits Concord to continue to manufacture
and assemble its products in the PRC under the Master Processing Contract until
October 28, 2016, unless the Agreement is earlier terminated by the parties.
The Agreement requires the Henggang Factory to (a) provide to CCHK all necessary
assistance in obtaining the required import and export customs declarations and
clearances for process manufacturing; (b) take all necessary measures under, and
comply with, all regulatory requirements in order to maintain the operating
permits and licenses necessary to perform its obligations under the Agreement;
and (c) take all other actions necessary for it to engage in contract processing
on behalf of CCHK.
CCHK's responsibilities under the Agreement include, without limitation, (a)
providing all the materials and equipment necessary for processing and
manufacturing goods under the Agreement; and (b) paying for (i) all utilities at
the Factory, (ii) the wages for the Factory workers, including payment of
overtime and employment benefits, (iii) insurance to cover the risk of loss of
the materials and equipment on the Factory premises and (iv) insurance and
freight charges in connection with the delivery of the processed goods to CCHK
from the PRC.
A copy of the English translation of each of the extended business license and
the Agreement is filed as an exhibit to this current report and is incorporated
by reference into this Item 1.01. The descriptions set forth herein of the terms
and conditions of the exhibits are qualified in their entirety by reference to
the full text of such exhibits.
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ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
10.1 Special Permitted Business License No. 06999 issued to Concord
Camera Heng Gang Electronic Factory (listed as "Concord Camera
H.G. Limited" on the license), Longgang, Shenzhen, on
September 15, 2006 by Commerce and Industry Management Bureau,
Shenzhen, valid from October 28, 1991 to October 26, 2016
(English translation)
10.2 Agreement for Contract Processing among Shenzhen Henggang
Investment Co. Ltd., Shenzhen Longgang Henggang Xietiao
Electronics Factory and Concord Camera HK Limited dated July
11, 2006 (English translation)
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CONCORD CAMERA CORP.
Date: September 21, 2006 By: /s/ Scott L. Lampert
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Scott L. Lampert, Vice President,
General Counsel and Secretary