Global Brands Group Holding Limited announced that reference is made to the announcement of the Company dated 17 November 2017 in relation to the continuing connected transactions under the 2017 Master Logistics Agreement between the Company and FH 1937 for the period from 1 January 2018 to 31 March 2020. In view of the forthcoming expiry of the 2017 Master Logistics Agreement, the Directors consider that it is in the interests of the Company to continue such arrangements and to enter into the 2020 Master Logistics Agreement to provide a framework to govern the terms of the Transactions for a term of three years commencing from 1 April 2020 to 31 March 2023. The pricing of each of the Transactions will be determined by the relevant members of the FH 1937 Group and the relevant members of the Group (together, the "Parties") at the time of entry into the relevant Subsequent Agreements for such Transactions based on the applicable market practices and value. In particular: In relation to services relating to management and operation of warehouse facilities (that is, building management, leasing and licensing management, IT support, human resources, administration and related services) and other value-added services, the service fee shall be determined by the Parties at the time of entry into the relevant Subsequent Agreements with reference to the type, size and location of the premises and the relevant party/customers' specific requirements as well as the fees charged by independent third party services suppliers. The Group will make reference to the services provided by independent third parties in similar scope to ensure that the fees and terms offered by the FH 1937 Group to the Group are fair and reasonable and comparable to those offered by independent third parties. In relation to transportation and freight related services, the service fee shall be determined by each of the Parties at the time of entry into the relevant Subsequent Agreements with reference to the weight and type of cargo, mode of shipment and freight rate of the carrier. The Group will make reference to the services provided by independent third parties in similar scope to ensure that the fees and terms offered by the FH 1937 Group to the Group are fair and reasonable and comparable to those offered by independent third parties. When determining the terms of the Transactions, the Group will take into account a number of factors including but not limited to: (i) price, (ii) payment and credit terms, (iii) complexity of the services, (iv) service level, (v) capacity, (vi) delivery schedule, (vii) compliance record, and (viii) quality control capability, and will benchmark these factors with independent third party suppliers so as to ensure that the terms offered by the FH 1937 Group to the Group are normal commercial terms that are fair, reasonable and competitive.