Arrangements for Adjustment of Esprit Holdings Futures and Options

Market Operations

07 Sep 2009

Hong Kong Exchanges and Clearing Limited (HKEx) has announced the arrangements for the adjustment to the contract terms of all open Esprit Holdings Limited (ESP) futures and options contracts in existence after the market close on 25 November 2009, the business day immediately before the ex-date, which is 26 November 2009, to account for ESP’s proposed special dividend of $1.33 per share.

Highlights of the adjustment arrangements to ESP futures and options contracts are set forth below. Investors should consult their brokers for further details, or if they have any questions regarding the adjustment.

Underlying Stock of the Stock Futures and Stock Options	Esprit Holdings Limited
Stock Code	330
Corporate Action	Special dividend of $1.33 per share
Ex-date	26 November 2009

ESP Futures

Adjustment Procedures

Adjustment will be made to the open positions of ESP futures contracts which exist after the market close on 25 November 2009, the business day immediately before the ex-date. The details of the adjustment procedures are as follows:

Adjustment Term	Formula	Remark
Adjustment Ratio (AR)	(Underlying stock closing price – ordinary dividend – special dividend) / (Underlying stock closing price – ordinary dividend)	Rounded to the nearest four decimal places
Adjusted Contracted Prices (ACP)	Contracted prices of outstanding stock futures contract x AR	Rounded to the nearest two decimal places
Adjusted Contract Multiplier (ACM)	(Contracted prices of outstanding stock futures contract x 100 shares) / ACP	Rounded to the nearest four decimal places

Adjustment Term	Formula	Remark

Parallel Trading

After the market close on 25 November 2009, the business day immediately before the ex-date, the open positions will be transferred to the adjusted futures contracts. In addition, new contracts based on the standard contract multiplier will be introduced for trading on the ex-date, 26 November 2009. Details of the parallel trading on and after the ex-date are shown below:

Contract	Trading Symbol	Contract Multiplier (Shares)	Available for Trading	Addition of New Contract Months on and after the Ex-date
Adjusted	ESA	ACM	From the ex-date to 29 June 2010	No
Standard	ESP	100	From the ex-date onwards	Yes

Contract	Trading Symbol	Contract Multiplier (Shares)	Available for Trading	Addition of New Contract Months on and after the Ex-date

Investors should note that the cash settlement amount of adjusted and standard futures contracts on the last trading day will be calculated using their respective contract multipliers. There will not be any changes to the number of open positions and other contract terms after the transfer of positions.

ESP Options

Adjustment Procedures

Adjustment will be made to the open positions of ESP option series which exist after the market close on 25 November 2009, the business day immediately before the ex-date. The details of the adjustment procedures are as follows:

Adjustment Term	Formula	Remark
Adjustment Ratio (AR)	(Underlying stock closing price – ordinary dividend – special dividend) / (Underlying stock closing price – ordinary dividend)	Rounded to the nearest four decimal places
Adjusted Exercise Price (AEP)	Exercise price of outstanding option series x AR	Rounded to the nearest two decimal places
Adjusted Contract Size (ACS)	(Exercise price of outstanding option series x 100 shares) / AEP	Rounded to the nearest four decimal places

Adjustment Term	Formula	Remark

Parallel Trading

After the market close on 25 November 2009, the business day immediately before the ex-date, the open positions will be transferred to the adjusted option series. In addition, new option series based on the standard contract size will be introduced for trading on the ex-date, 26 November 2009. Details of the parallel trading on and after the ex-date are shown below:

Contract	Trading Symbol	Contract Size (Shares)	Available for Trading	Addition of New Option Series on and after the Ex-date
Adjusted	ESA	ACS	From the ex-date to 29 June 2010	No
Standard	ESP	100	From the ex-date onwards	Yes

Contract	Trading Symbol	Contract Size (Shares)	Available for Trading	Addition of New Option Series on and after the Ex-date

Investors should note that the cash settlement amount of adjusted and standard option series on the expiry day will be calculated using their respective contract sizes. There will not be any changes to the number of open positions and other contract terms after the transfer of positions.

Updated 07 Sep 2009