Proposed Annual Cap Clause Samples
The Proposed Annual Cap clause sets a maximum limit on the total amount that can be paid or incurred under a contract within a given year. This cap typically applies to fees, expenses, or liabilities, ensuring that the financial exposure of one or both parties does not exceed a predetermined threshold during each annual period. By establishing this ceiling, the clause provides predictability and helps manage risk by preventing unexpected or excessive costs.
Proposed Annual Cap. The proposed annual cap for the transactions under the Power Supply Framework Agreement for the year ending 31 December 2017 is expected to be RMB1,200 million (equivalent to approximately HK$1,368 million). The proposed annual cap for the transactions under the Power Supply Framework Agreement has been determined after arm’s length negotiation with reference to
Proposed Annual Cap. The Board proposes to set the proposed annual cap of the products sold to ▇▇▇ ▇▇ for the period commencing on 1 January 2018 and expiring on 31 December 2018 as RMB21,000,000, mainly due to the expected increase in the prevailing market prices for the sales of the Company’s products due to the increase in the costs for the production of the Company’s products, such as the raw materials and labor costs.
Proposed Annual Cap. It is estimated that the maximum aggregate amount of servicing fees payable by SIFS to the service provider under the Master Services Agreement will not exceed the Annual Caps set out below. Financial year ending 2011 Maximum annual value of HK$2,000,000 Financial year ending 2012 Maximum annual value of HK$2,750,000 Financial year ending 2013 Maximum annual value of HK$3,200,000 The Annual Caps are calculated based on the historial amounts and the agreed scope of services to be provided to SIFS, the increasing rental fees for offices in Hong Kong and taking into account the possible office space which may be taken up by SIFS in offices presently occupied by the Group in the PRC. The Group is engaged in providing financial services in Hong Kong and making proprietary investments, including investments in various listed and unlisted assets for short to medium term capital gains. Kingsway Services and Billion On are, primarily engaging in the provision of management services to the Group. SIFS is primarily engaged in private equity investment and the provision of administration services to the SWH Group (excluding the Company). Kingsway Services and Billion On have been providing the Services to SIFS on an annual basis under an arrangement between the parties. As service fee payable under the prior arrangement did not exceed 5% under the applicable percentage ratio and total consideration was less than HK1,000,000, it was exempt from all reporting, announcement and independent shareholders’ approval requirements. Given the increase in lease costs on the Premises and staff costs payable by Kingsway Services and Billion On, the Master Services Agreement has been entered into to record the increased Service Fee. SIFS is an indirect wholly-owned subsidiary of SWH, the ultimate controlling shareholder of the Company. In the circumstances, SIFS is a connected person of the Company and the transactions contemplated under the Master Services Agreement constitute a continuing connected transaction for the Company under the Listing Rules. Given that the annual amount of the service fee payable under the Master Services Agreement is expected to be more than 0.1% but less than 5% under the applicable percentage ratio, the Master Services Agreement is subject to the reporting and announcement requirements but is exempt from the independent shareholders’ approval requirement under the Listing Rules.
Proposed Annual Cap. The proposed annual cap for the continuing connected transactions under the 2020 Supplemental Trademark Licence Agreement is RMB10,000,000 for each of 2021, 2022 and 2022.
Proposed Annual Cap. The proposed annual cap under the Procurement Framework Agreement for the year ending 31 December 2016 is set out below:
Proposed Annual Cap. Set out below is a summary of the proposed annual cap for the year ending 31 December 2021 for the System Services Transactions under the System Services Agreement:
Proposed Annual Cap. The proposed annual cap of the New Material Purchase Framework Agreement for each of the six months and the two financial years ending 31 December 2018, 2019 and 2020, is RMB24,550,000, RMB49,100,000 and RMB49,100,000 (equivalent to approximately HK$28,218,400, HK$56,436,800 and HK$56,436,800) respectively, based on the following factors:
Proposed Annual Cap. It is proposed that the annual cap amounts for the transactions Basis of the proposed annual cap: Reasons For and Benefits of the Supplemental Hoisting Equipment Lease Agreement (2017-2019) Listing Rules Implications
Proposed Annual Cap. The aggregate consideration in connection with the Existing Lease Agreements for the five months ending 31 May 2013 was amounted to approximately RMB8.8 million. And the aggregate consideration in connection with the Existing Lease Agreements and the New Baozehang Lease Agreement for the year ending 31 December 2013 is expected to be approximately RMB16 million. The proposed annual cap under the Existing Lease Agreements and the New Baozehang Lease Agreement for the year ending 31 December 2013 is RMB16 million. It is determined with reference to the historical figures of the monthly consideration paid under the Existing Lease Agreements, together with the consideration to be paid under the New Baozehang Lease Agreement. The Directors (including the independent non-executive Directors) are of the view that the proposed annual cap for the transactions under the Existing Lease Agreements and New Baozehang Lease Agreement is fair and reasonable and in the interests of the Company and the Shareholders as a whole.
Proposed Annual Cap. The proposed annual cap of the New Technical Repair and Maintenance Framework Agreement for each of the nine months and the two financial years ending 31 December 2015, 2016 and 2017, is RMB105,000,000, RMB140,000,000 and RMB140,000,000 (equivalent to approximately HK$132,911,000, HK$177,215,000 and HK$177,215,000), based on the following factors: