Common use of ANNUAL CAPS Clause in Contracts

ANNUAL CAPS. Under the Simona Framework Purchase Agreement, for each of the two years ended 31 December 2008, the Group purchased tannery from ▇▇▇▇▇▇ in the total amount of approximately US$25,975,000 (equivalent to approximately HK$202.61 million) and US$29,612,000 (equivalent to approximately HK$230.97 million), which did not exceed the annual cap of US$32,800,000 (equivalent to approximately HK$255.84 million) and US$40,700,000 (equivalent to approximately HK$317.46 million) for the corresponding period respectively. For the nine months ended 30 September 2009, the Group purchased tannery from ▇▇▇▇▇▇ in the total amount of approximately US$22,795,000 (equivalent to approximately HK$177.80 million). It is expected that the annual cap of US$50,600,000 (equivalent to approximately HK$394.68 million) for the year ending 31 December 2009 will not be exceeded. By reference to the historical transaction amount of tannery purchased by the Group from ▇▇▇▇▇▇ for the two years ended 31 December 2008 and nine months ended 30 September 2009, the anticipated demand of the Group’s footwear products from the Group’s customers, the estimated production capacity and the projected rate of sales growth of the Group, and the capability of ▇▇▇▇▇▇ for the production of leather and tannery products for women fashion footwear so as to meet the Group’s demand for shorter “concept-to-store” lead time for women fashion footwear, the Group expects that the maximum aggregate annual consideration payable by the Group for the purchase of tannery by the Group pursuant to the Simona Framework Purchase Agreement for each of the three years ending 31 December 2012 will not exceed US$35,000,000 (equivalent to approximately HK$273.00 million), US$45,000,000 (equivalent to approximately HK$351.00 million) and US$50,000,000 (equivalent to approximately HK$390.00 million) respectively.

ANNUAL CAPS. Under the Simona Sincerely Framework Purchase Agreement, for each of the two years ended 31 December 2008, the Group purchased tannery molds from ▇▇▇▇▇▇ Sincerely in the total amount of approximately US$25,975,000 3,383,000 (equivalent to approximately HK$202.61 HK$26.39 million) and US$29,612,000 3,164,000 (equivalent to approximately HK$230.97 HK$24.68 million), which did not exceed the annual cap of US$32,800,000 3,900,000 (equivalent to approximately HK$255.84 HK$30.42 million) and US$40,700,000 4,500,000 (equivalent to approximately HK$317.46 HK$35.10 million) for the corresponding period respectively. For the nine months ended 30 September 2009, the Group purchased tannery molds from ▇▇▇▇▇▇ Sincerely in the total amount of approximately US$22,795,000 2,792,000 (equivalent to approximately HK$177.80 HK$21.78 million). It is expected that the annual cap of US$50,600,000 5,300,000 (equivalent to approximately HK$394.68 HK$41.34 million) for the year ending 31 December 2009 will not be exceeded. By reference to the historical transaction amount of tannery molds purchased by the Group from ▇▇▇▇▇▇ Sincerely for the two years ended 31 December 2008 and nine months ended 30 September 2009, the anticipated demand of the Group’s footwear products from the Group’s customers, the estimated production capacity and the projected rate of sales growth of the Group, Group and the capability trend of ▇▇▇▇▇▇ smaller batch production of footwear products which calls for the production of leather and tannery products needs for women fashion footwear so as to meet the Group’s demand for shorter “concept-to-store” lead time for women fashion footwearmolds, the Group expects that the maximum aggregate annual consideration payable by the Group for the purchase of tannery molds by the Group pursuant to the Simona Sincerely Framework Purchase Agreement for each of the three years ending 31 December 2012 will not exceed US$35,000,000 4,500,000 (equivalent to approximately HK$273.00 HK$35.10 million), US$45,000,000 5,500,000 (equivalent to approximately HK$351.00 HK$42.90 million) and US$50,000,000 6,000,000 (equivalent to approximately HK$390.00 HK$46.80 million) respectively.