Exhibit 10.1




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##### 



PageARTICLE IDEFINITIONSSection 1.01.
    
    Credit Agreement
    
    
    1Section 1.02.
    
    Other Defined Terms
    
    
    1ARTICLE IIGUARANTEESection 2.01.
    
    Guarantee
    
    
    4Section 2.02.
    
    Guarantee of Payment
    
    
    5Section 2.03.
    
    No Limitations, Etc.
    
    
    5Section 2.04.
    
    Reinstatement
    
    
    6Section 2.05.
    
    Agreement To Pay; Contribution; Subrogation
    
    
    7Section 2.06.
    
    Information
    
    
    7Section 2.07.
    
    Maximum Liability
    
    
    7Section 2.08.
    
    Payment Free and Clear of Taxes
    
    
    7ARTICLE IIIPLEDGE OF SECURITIESSection 3.01.
    
    Pledge
    
    
    8Section 3.02.
    
    Delivery of the Pledged Collateral
    
    
    8Section 3.03.
    
    Representations, Warranties and Covenants
    
    
    9Section 3.04.
    
    Registration in Nominee Name; Denominations
    
    
    11Section 3.05.
    
    Voting Rights; Dividends and Interest, Etc.
    
    
    11ARTICLE IVSECURITY INTERESTS IN OTHER PERSONAL PROPERTYSection 4.01.
    
    Security Interest
    
    
    13Section 4.02.
    
    Representations and Warranties
    
    
    15Section 4.03.
    
    Covenants
    
    
    17Section 4.04.
    
    Other Actions
    
    
    20Section 4.05.
    
    Covenants Regarding Patent, Trademark and Copyright Collateral
    
    
    21Section 4.06.
    
    Intercreditor Relations
    
    
    21ARTICLE VREMEDIESSection 5.01.
    
    Remedies Upon Default
    
    
    23
 i




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##### 



PageSection 5.02.
    
    Application of Proceeds
    
    
    24Section 5.03.
    
    Securities Act, Etc.
    
    
    25ARTICLE VIINDEMNITY, SUBROGATION AND SUBORDINATIONSection 6.01.
    
    Indemnity
    
    
    26Section 6.02.
    
    Contribution and Subrogation
    
    
    26Section 6.03.
    
    Subordination
    
    
    27ARTICLE VIIMISCELLANEOUSSection 7.01.
    
    Notices
    
    
    29Section 7.02.
    
    Security Interest Absolute
    
    
    29Section 7.03.
    
    Limitation By Law
    
    
    29Section 7.04.
    
    Binding Effect; Several Agreement
    
    
    29Section 7.05.
    
    Successors and Assigns
    
    
    30Section 7.06.
    
    Collateral Agents Fees and Expenses; Indemnification
    
    
    30Section 7.07.
    
    Collateral Agent Appointed Attorney-in-Fact
    
    
    30Section 7.08.
    
    GOVERNING LAW
    
    
    31Section 7.09.
    
    Waivers; Amendment
    
    
    31Section 7.10.
    
    WAIVER OF JURY TRIAL
    
    
    32Section 7.11.
    
    Severability
    
    
    32Section 7.12.
    
    Counterparts
    
    
    32Section 7.13.
    
    Headings
    
    
    32Section 7.14.
    
    Jurisdiction; Consent to Service of Process
    
    
    32Section 7.15.
    
    Termination or Release
    
    
    33Section 7.16.
    
    Additional Subsidiaries
    
    
    34Section 7.17.
    
    Right of Set-off
    
    
    34SchedulesSchedule I
    
    Subsidiary PartiesSchedule II
    
    Pledged Stock; Debt SecuritiesSchedule III
    
    Intellectual PropertySchedule IV
    
    Filing JurisdictionsSchedule V
    
    Commercial Tort ClaimsSchedule VI
    
    Matters Relating to Accounts and InventoryExhibitsExhibit I
    
    Form of Supplement to the Guarantee and Collateral Agreement
 ii




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##### 



Agreement Holdings Borrower Administrative Agent
 Credit Agreement
    Credit Agreement.
  Other Defined Terms
 Account Debtor
 Article 9 Collateral
 1




---



##### 



Collateral
 Copyright License
 Copyrights Schedule III
 Credit Agreement
 Federal Securities Laws
 General Intangibles
 Guarantors
 Intellectual Property
 2




---



##### 



Intellectual Property Security Agreement
 IP Agreements Schedule III
 Loan Document Obligations
 New York UCC
 Obligations
 Patent License
 Patents Schedule III Schedule III
 Permitted Liens
 Pledged Collateral
 Pledged Debt Securities
 Pledged Securities
 Pledged Stock
 Pledgor
 3




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##### 



Secured Parties
 Security Interest
 Subsidiary Loan Party
 Trademark License
 Trademarks Schedule III
   Guarantee
 4




---



##### 



Guarantee of Payment
 No Limitations, Etc
       5




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##### 



provided
     Reinstatement
 6




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##### 



Agreement To Pay; Contribution; Subrogation
 Information
 Maximum Liability
 Payment Free and Clear of Taxes mutatis mutandis
 7




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##### 



Pledge Schedule II
 subject however
 Delivery of the Pledged Collateral
 8




---



##### 



Schedule II Schedule II provided
  Representations, Warranties and Covenants
 9




---



##### 



Schedule II
  Schedule II
    10




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##### 



Registration in Nominee Name; Denominations
 Voting Rights; Dividends and Interest, Etc
 11




---



##### 



provided
  provided
 provided
 12




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##### 



provided
   Security Interest
 13




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##### 



14




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##### 



provided
    Representations and Warranties
  15




---



##### 



Schedule IV
  16




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##### 



Intellectual Property Collateral
 Schedule III
   17




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##### 



Covenants
   18




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##### 



Schedule III provided
  provided however
 19




---



##### 



Other Actions
 20




---



##### 



Instruments and Tangible Chattel Paper
 Investment Property Article
III
 Commercial Tort Claims
 Covenants Regarding Patent, Trademark and Copyright Collateral.
  21




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##### 



22




---



##### 



Remedies Upon Default
  23




---



##### 



Application of Proceeds
 24




---



##### 



Securities Act, Etc
 25




---



##### 



Indemnity
 Contribution and Subrogation
 26




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##### 



Subordination;Subrogation
 Prohibited Payments, Etc
 Prior Payment of Guaranteed Obligations
 Turn-Over
 Administrative Agent Authorization
 27




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##### 



28




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##### 



Notices
 Security Interest Absolute
 Limitation By Law
 Binding Effect; Several Agreement
 29




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##### 



Successors and Assigns
 Administrative Agents Fees and Expenses; Indemnification
 provided
  Administrative Agent Appointed Attorney-in-Fact
 30




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##### 



GOVERNING LAW
 Waivers; Amendment
 31




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##### 



WAIVER OF JURY TRIAL
 Severability
 Counterparts
 Headings
 Jurisdiction; Consent to Service of Process
 32




---



##### 



Termination or Release
 provided
   33




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##### 



provided
 Additional Subsidiaries
 Right of Set-off
  34




---



##### 



BAUBLE HOLDINGS CORP.By:
    /s/ Peter P. CopsesName:
    Peter P. CopsesTitle:
    PresidentBAUBLE ACQUISITION SUB, INC.By:
    /s/ Peter P. CopsesName:
    Peter P. CopsesTitle:
    PresidentAFTERTHOUGHTS MERCHANDISING CORP.
CLAIRES BOUTIQUES, INC.
SASSY DOO!, INC.
CLAIRES PUERTO RICO CORP.
CBI DISTRIBUTING CORP.
CLAIRES CANADA CORP.
BMS DISTRIBUTING CORP.By:
    /s/ Rebecca OrandName:
    Rebecca OrandTitle:
    Vice President and SecretaryCREDIT SUISSE, CAYMAN ISLANDS BRANCH,
as Administrative AgentBy:
    /s/ Robert HetuName:
    Robert HetuTitle:
    Managing DirectorCREDIT SUISSE, CAYMAN ISLANDS BRANCH,
as Administrative AgentBy:
    /s/ Denise AlvarezName:
    Denise AlvarezTitle:
    Associate 35




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##### 



Schedules to Guarantee and Collateral Agreement
 36




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##### 



SCHEDULE I
 SUBSIDIARY PARTIES
 
 37




---



##### 



SCHEDULE II  Pledged Securities of the New Subsidiary
 EQUITY INTERESTS
 Number ofShares orCertificate
    
    Class of
    
    OtherName of Owner
    
    Name of Issuer
    
    Number
    
    Stock
    
    InterestsClaires Stores,
Inc.
    
    Sassy Doo!,
Inc.
    
    
    R-1
    
    
    Common
    
    
    100Claires Stores,
Inc.
    
    Claires Puerto
Rico Corp.
    
    
    001
    
    
    Common
    
    
    10Claires Stores,
Inc
    
    CBI
Distributing
Corp.
    
    
    1
    
    
    Common
    
    
    100Claires Boutiques,
Inc.
    
    CBI
Distributing
Corp.
    
    
    2
    
    
    Common
    
    
    80Claires Stores,
Inc.
    
    Claires
Boutiques, Inc.
    
    
    1
    
    
    Common
    
    
    100Claires Stores,
Inc.
    
    Claires Canada
Corp.
    
    
    R-1
    
    
    Common
    
    
    100Claires Stores,
Inc.
    
    Afterthoughts
Merchandising
Corp.
    
    
    R-1
    
    
    Common
    
    
    100Claires Canada
Corp.
    
    Claires Stores
Canada Corp.
    
    
    C-4
    
    
    Common
    
    
    6,500,065Claires Canada
Corp.
    
    CSC Limited
Partnership
    
    GPU-1
    
    GPU
    
    
    6.5Claires Stores,
Inc.
    
    CSC Limited
Partnership
    
    LPU-1
    
    LPU
    
    
    58.5CBI Distributing
Corp.
    
    BMS Distributing
Corp.
    
    
    01
    
    
    Common
    
    
    1,000Claires Stores,
Inc.
    
    Claires Holding
GmbH
    
    UncertificatedClaires Stores,
Inc.
    
    Claires Nippon,
Ltd.
    
    UncertificatedBauble Holdings
Corp.
    
    Bauble
Acquisition Sub,
Inc.
    
    
    1
    
    
    Common
    
    
    100
 38




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##### 



DEBT SECURITIES
  39




---



##### 



SCHEDULE III
 PATENTS, TRADEMARKS AND COPYRIGHTS
 Reg. No.
    
    Reg. DateTrademark
    
    (App. No.)
    
    (App. Date)
    
    Owner
    
    Status9-ON
    
    
    2,521,546
    
    
    12/25/2001
    
    Claires Boutiques, Inc.
    
    RegisteredACCESSORY PLACE
    
    
    1,427,959
    
    
    2/3/1987
    
    Claires Boutiques, Inc.
    
    RegisteredACCESSORY PLACE
(Stylized Letters)
    
    
    1,502,133
    
    
    8/30/1998
    
    Claires Boutiques, Inc.
    
    RegisteredACCESSORY PLACE
(Stylized Letters)
    
    
    1,502,681
    
    
    8/30/1998
    
    Claires Boutiques, Inc.
    
    RegisteredAFTER THOUGHTS
    
    
    1,883,162
    
    
    3/7/1995
    
    CBI Distributing Corp.
    
    RegisteredAFTERTHOUGHTS
    
    
    1,343,617
    
    
    6/19/1985
    
    CBI Distributing Corp.
    
    RegisteredBEE WHO YOU 
WANNA BE
    
    
    2,888,867
    
    
    9/28/2004
    
    CBI Distributing Corp.
    
    RegisteredBOTTLED ENERGY
    
    
    2,576,419
    
    
    6/4/2004
    
    CBI Distributing Corp.
    
    RegisteredCARIMAR
    
    
    1,600,052
    
    
    6/5/1990
    
    CSL, Inc.
    
    RegisteredCLAIRE
    
    
    2,813,344
    
    
    2/10/2004
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES CLUB
    
    
    2,908,863
    
    
    12/7/2004
    
    CSL, Inc.
    
    RegisteredCLAIRES CLUB
    
    
    2,908,864
    
    
    12/7/2004
    
    CSL, Inc.
    
    RegisteredCLAIRES CLUB
    
    
    2,908,865
    
    
    12/7/2004
    
    CSL, Inc.
    
    RegisteredCLAIRES CLUB
    
    
    2,908,866
    
    
    12/7/2004
    
    CSL, Inc.
    
    RegisteredCLAIRES CLUB
    
    
    2,908,867
    
    
    12/7/2004
    
    CSL, Inc.
    
    RegisteredCLAIRES CLUB
    
    
    2,908,868
    
    
    12/7/2004
    
    CSL, Inc.
    
    RegisteredCLAIRES CLUB
    
    
    2,992,613
    
    
    9/6/05
    
    CSL, Inc.
    
    RegisteredCLAIRES
    
    
    2,908,861
    
    
    12/7/2004
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES
    
    
    2,925,470
    
    
    2/8/2005
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES
    
    
    2,900,024
    
    
    11/2/2004
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES
    
    
    2,967,212
    
    
    7/12/2005
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES
    
    
    2,919,171
    
    
    1/18/2005
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES
    
    
    2,908,860
    
    
    12/7/2004
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES
    
    
    2,908,859
    
    
    12/7/2004
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES
    
    
    2,996,103
    
    
    9/13/2005
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES
    
    
    2,908,858
    
    
    12/7/2004
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES
    
    
    2,908,857
    
    
    12/7/2004
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES
    
    
    2,951,866
    
    
    5/17/2005
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES
    
    
    2,974,652
    
    
    7/19/2005
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES
    
    (78-589,527)
    
    (3/17/2005)
    
    CBI Distributing Corp.
    
    PendingCLAIRES
    
    
    2,978,984
    
    
    7/26/2005
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES
    
    
    3,190,840
    
    
    1/2/2006
    
    CBI Distributing Corp.
    
    Registered
 40




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##### 



Reg. No.
    
    Reg. DateTrademark
    
    (App. No.)
    
    (App. Date)
    
    Owner
    
    StatusCLAIRES
    
    
    3,190,839
    
    
    1/2/2007
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES
    
    
    1,929,317
    
    
    10/24/1995
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES
    
    
    1,891,172
    
    
    4/25/1995
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES(Stylized
Letters)
    
    
    1,925,359
    
    
    10/10/1995
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES (Stylized
Letters)
    
    
    1,890,335
    
    
    4/18/1995
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES
ACCESSORIES
    
    
    2,294,937
    
    
    7/28/1997
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES
ACCESSORIES
    
    
    1,956,047
    
    
    2/13/1996
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES
ACCESSORIES
    
    
    1,946,557
    
    
    1/9/1996
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES and Design
    
    
    2,623,039
    
    
    9/24/2002
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES BOUTIQUES
and Design
    
    
    1,514,045
    
    
    11/22/1988
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES CLUB
    
    
    2,908,862
    
    
    12/7/2004
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES CLUB
    
    (78-557,873)
    
    (2/1/2005)
    
    CBI Distributing Corp.
    
    PendingCLAIRES CLUB
    
    (78-557,856)
    
    (2/1/2005)
    
    CBI Distributing Corp.
    
    PendingCLAIRES CLUB
    
    (78-554,003)
    
    (1/26/2005)
    
    CBI Distributing Corp.
    
    PendingCLAIRES CLUB
    
    
    2,908,191
    
    
    12/7/2004
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES ETC.
    
    
    2,065,959
    
    
    5/27/1997
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES ETC.
(Stylized Letters)
    
    
    2,064,149
    
    
    5/20/1997
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES FOLLY
    
    
    2,424,626
    
    
    1/30/2001
    
    CBI Distributing Corp.
    
    RegisteredCLAIRES GARDEN
FILLED WAX CANDLE

and Design
    
    
    2,856,777
    
    
    6/22/2004
    
    
    
    RegisteredCLAIRES TREASURES
    
    (78-442,351)
    
    6/28/2004
    
    CBI Distributing Corp.
    
    PendingD LUX
    
    
    2,611,306
    
    
    8/27/2002
    
    Claires Boutiques, Inc.
    
    RegisteredD LUX
    
    
    2,435,990
    
    
    3/13/2001
    
    Claires Boutiques, Inc.
    
    RegisteredDARA MICHELLE
and Design
    
    
    1,483,331
    
    
    4/6/1988
    
    Claires Boutiques, Inc.
    
    RegisteredDESIGN ONLY
    
    (78-718,197)
    
    (9/22/2005)
    
    CBI Distributing Corp.
    
    PendingDRIVING DIVA
    
    
    2,657,124
    
    
    12/3/2002
    
    CBI Distributing Corp.
    
    RegisteredHANDY HANDBAG 
HOLDER
    
    
    2,645,328
    
    
    11/5/2002
    
    CBI Distributing Corp.
    
    RegisteredICING BY CLAIRES
    
    
    3,050,863
    
    
    1/24/2006
    
    CBI Distributing Corp.
    
    RegisteredICING ICE
    
    (78-861,879)
    
    (4/14/2006)
    
    CBI Distributing Corp.
    
    PendingJUST NIKKI
    
    
    2,507,329
    
    
    11/13/2001
    
    CSL, Inc.
    
    Registered
 41




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##### 



Reg. No.
    
    Reg. DateTrademark
    
    (App. No.)
    
    (App. Date)
    
    Owner
    
    StatusLOOP IT
    
    
    2,580,796
    
    
    6/18/2002
    
    CBI Distributing Corp.
    
    RegisteredMAGIKAL 
TRINKETS
    
    
    2,768,698
    
    
    9/30/2003
    
    Claires Boutiques, Inc.
    
    RegisteredPRINCESS MINTS
    
    
    2,583,525
    
    
    6/18/2002
    
    CBI Distributing Corp.
    
    RegisteredPRINCIE
    
    
    2,517,987
    
    
    12/11/2001
    
    CSL, Inc.
    
    RegisteredPRINCIE
    
    
    2,517,986
    
    
    12/11/2001
    
    CSL, Inc.
    
    RegisteredSENSITIVE 
SOLUTIONS
    
    
    1,951,435
    
    
    1/23/1996
    
    CBI Distributing Corp.
    
    RegisteredSTICK SNAPPY
    
    
    2,486,550
    
    
    9/11/2001
    
    Claires Boutiques, Inc.
    
    RegisteredTHE ICING
    
    
    2,762,642
    
    
    9/9/2003
    
    CBI Distributing Corp.
    
    RegisteredTHE ICING
    
    
    1,466,727
    
    
    11/24/1987
    
    CBI Distributing Corp.
    
    RegisteredTHE ICING
ACCESSORIES and
Design
    
    
    2,234,841
    
    
    3/23/1999
    
    CBI Distributing Corp.
    
    RegisteredTOPKAPI
    
    
    1,425,700
    
    
    1/20/1987
    
    Claires Boutiques, Inc.
    
    RegisteredTWIST N CLIP
    
    (77-060,053)
    
    (12/8/2006)
    
    CBI Distributing Corp.
    
    PendingVELVET PIXIES
    
    
    2,507,719
    
    
    11/13/2001
    
    Claires Boutiques, Inc.
    
    RegisteredWHERE GETTING
READY IS HALF THE
FUN
    
    
    2,664,513
    
    
    12/17/2002
    
    CSL, Inc.
    
    RegisteredWHERE THROWING A
PARTY IS ALL THE
FUN
    
    
    3,136,920
    
    
    8/29/2006
    
    CBI Distributing Corp.
    
    RegisteredWIPE OUT
    
    (78-630,648)
    
    (5/16/2005)
    
    CBI Distributing Corp.
    
    PendingZITZ BEGON!
    
    
    2,602,133
    
    
    7/30/2002
    
    Claires Boutiques, Inc.
    
    Registered
 42




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##### 



SCHEDULE IV
 FILING JURISDICTIONS
 Grantor
    
    JurisdictionClaires Stores, Inc.
    
    FloridaBauble Holdings Corp.
    
    DelawareBauble Acquisition Sub, Inc.
    
    FloridaSassy Doo!, Inc.
    
    DelawareClaires Puerto Rico Corp.
    
    DelawareCBI Distributing Corp.
    
    DelawareClaires Boutiques, Inc.
    
    ColoradoClaires Canada Corp.
    
    DelawareAfterthoughts Merchandising Corp.
    
    DelawareBMS Distributing Corp.
    
    Delaware
 43




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##### 



SCHEDULE V
 COMMERCIAL TORT CLAIMS
  44




---



##### 



SCHEDULE VI
 MATTERS RELATING TO ACCOUNTS AND INVENTORY
  45




---



##### 



Exhibit I to Guarantee and Collateral Agreement
 46




---



##### 



Exhibit I
 Supplement Guarantee and Collateral
Agreement Holdings Borrower Administrative Agent
 Credit Agreement
  New Subsidiary
   47




---



##### 



Schedule I Schedule II Schedule III
  SECTION 6. THIS SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS SUPPLEMENT
SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.
  48




---



##### 



[Name of New Subsidiary]By:Name:Title:Legal Name:
Jurisdiction of Formation:
Location of Chief Executive Office:
CREDIT SUISSE,

as Administrative AgentBy:Name:Title: 49




---



##### 



Schedule I
 Pledged Securities of the New Subsidiary
 EQUITY INTERESTS
 Number of Issuer
    
    
    
    Number and Class of
    
    Percentage ofCertificate
    
    Registered Owner
    
    Equity Interest
    
    Equity Interests
 DEBT SECURITIES
 Issuer
    
    Principal Amount
    
    Date of Note
    
    Maturity Date
 50




---



##### 



Schedule II
 PATENTS, TRADEMARKS AND COPYRIGHTS
 51




---



##### 



Schedule III
 COMMERCIAL TORT CLAIMS
 52