California Proposition 65 Settlement Establishes Cadmium Limit for Jewelry

Recently, Proposition 65 settlement to set cadmium limits in jewelry has been reached, which regulated
cadmium concentration in any component of a Covered Product, or in any material used in a Covered
Product can not be more than 0.03 percent (300parts per million (“ppm”)), the detailed information as below：

Covered Products：
An anklet, arm cuff, bracelet, charm, brooch, chain, crown, cuff link, watch (excluding the timepiece itself if removable), decorated hair accessory, earring, necklace, pin, ring; similar clothing or shoe ornaments which are detachable; and body piercing jewelry; or (b) any bead, chain, link, pendant, or other component of such an ornament.

Exempt Materials：
cubic zirconia (sometimes called cubic zirconium, CZ), glass, rhinestones or vitrified ceramics（intended for 6 years and younger of age exempt）

Effective Date：
1、Inventory Cutoff/Shipping Restriction Date. As of August 15, 2011,Settling Defendant shall not manufacture, purchase, import, or supply to an unaffiliated third party any Covered Product for sale in California that exceeds the Cadmium Limit.

2、Final Retail Compliance Date. Commencing on December 31, 2011,Settling Defendant shall not sell or offer for sale, or authorize any customer (including merchandise liquidator) to sell or offer for sale in California, any Covered Product that exceeds the Cadmium Limit.