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Licensed brands. We have entered into multi-year, worldwide exclusive license agreements for the manufacture, distribution and sale of bearing the brand names of certain globally recognized companies. The following table sets forth information with respect to our primary licensed products:

Suggested Retail Price Expiration Brand Point Range Date Primary Distribution Channels ...... $50 - 195 3/31/2017 Department stores, major sports stores, specialty retailers, adidas outlets, adidas boutiques worldwide and www.watchstation.com EXCHANGE...... $100 - 295 12/31/2023 Department stores, specialty retailers, duty free stores worldwide, Armani Exchange boutiques worldwide, www.armaniexchange.com and www.watchstation.com ...... $395 - 3,995 12/31/2017 Department stores, specialty retailers, Burberry boutiques worldwide and www.watchstation.com CHAPS...... $95 - 200 12/31/2020 Department stores, specialty retailers, Chaps boutiques worldwide and www.watchstation.com

DIESEL ...... $100 - 495 12/31/2025 Department stores, specialty retailers, boutiques worldwide, www.diesel.com and www.watchstation.com DKNY ...... $95 - 275 12/31/2019 Department stores, jewelry stores, specialty retailers, DKNY boutiques worldwide and www.watchstation.com EMPORIO ARMANI...... $175 - 2,995 12/31/2023 Department stores, specialty retailers, major jewelry and watch stores, Emporio Armani boutiques worldwide, duty free stores worldwide, www.emporioarmaniwatches.com and www.watchstation.com KARL LAGERFELD...... $125 - 300 12/31/2017 Department stores, Karl Lagerfeld boutiques, watch and jewelry specialty stores, and www.watchstation.com KATE SPADE NEW YORK.. $150 - 350 12/31/2025 Department stores, consumer electronics retailers (Best Buy and AT&T), specialty retailers, major jewelry and watch stores, Kate Spade boutiques worldwide, duty free stores worldwide, www.katespade.com and www.watchstation.com MARC JACOBS ...... $150 - 300 12/31/2020 Department stores, specialty retailers, Marc Jacobs boutiques worldwide, www.watchstation.com, and www.marcjacobs.com MICHAEL KORS...... $195 - 550 12/31/2024 Department stores, consumer electronics retailers (Best Buy), specialty retailers, jewelry stores, duty free stores, retail websites, Michael Kors boutiques worldwide and www.watchstation.com TORY BURCH...... $295 - 895 12/31/2018 Department stores, specialty retailers, jewelry stores, duty free stores, retail websites, Tory Burch boutiques worldwide.

Sales of our licensed watch products accounted for 43.4% of our consolidated net sales for fiscal year 2016. Our MICHAEL KORS product sales, including jewelry, accounted for 22.7% of our consolidated net sales for fiscal year 2016. The licensing agreements with ADIDAS and BURBERRY will not be renewed upon their expiration in the first quarter of fiscal year 2017 and the fourth quarter of fiscal year 2017, respectively.

Private label and other. We design, market and source of certain retailers' private label and owned brand watches or as premium and incentive items for use in various corporate events. Under these arrangements, we perform design and product development functions, as well as act as a sourcing agent for our customers by contracting for and managing the manufacturing process, purchasing and inspecting the finished product and arranging for shipment. Participation in the private label and premium businesses provides us with certain advantages, including increased assembly volume, which may reduce the costs of assembling our other products, and the strengthening of business relationships with our manufacturing sources.

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