Document:

Michael Kors Holdings Limited Omnibus Incentive Plan

 Exhibit 10.8 
 MICHAEL KORS HOLDINGS LIMITED 
 OMNIBUS INCENTIVE PLAN 

Michael Kors Holdings Limited (the “Company”), a British Virgin Islands limited liability company, hereby establishes and
adopts the following Omnibus Incentive Plan (the “Plan”). 
  

	1.	PURPOSE OF THE PLAN 

 The
purpose of the Plan is to assist the Company and its Subsidiaries in attracting and retaining selected individuals to serve as employees, directors, consultants and/or advisors who are expected to contribute to the Company’s success and to
achieve long-term objectives that will benefit shareholders of the Company through the additional incentives inherent in the Awards hereunder. 
  

	2.	DEFINITIONS 

 2.1.
“Award” shall mean any Option, Share Appreciation Right, Restricted Share Award, Restricted Share Unit Award, Other Share-Based Award, Performance Award or any other right, interest or option relating to Shares, other property
or cash granted pursuant to the provisions of the Plan. 
 2.2. “Award Agreement” shall mean any
agreement, contract or other instrument or document evidencing any Award hereunder, whether in writing or through an electronic medium. 
 2.3. “Board” shall mean the board of directors of the Company. 
 2.4. “Cause” means, in the case of a Participant who has an employment or service agreement with the Company or any of its Subsidiaries in effect at the time of his termination of
employment or service, the definition of “Cause” set forth in such employment or service agreement. Otherwise, “Cause” means: (i) Participant’s gross negligence or willful misconduct, or willful failure to substantially
perform Participant’s duties as an Employee, Consultant or Director of the Company or any of its Subsidiaries, as applicable, (other than due to physical or mental illness or incapacity), (ii) Participant’s conviction of, or plea of guilty
or nolo contendere to a felony (or the equivalent of a felony in a jurisdiction other than the United States), (iii) Participant’s willful breach of a material provision of the Plan or Award Agreement or any employment, service or other
agreement with the Company or any of its Subsidiaries, (iv) Participant’s willful violation of the Company or any of its Subsidiaries’ written policies that the Committee determines is detrimental to the best interests of the Company or
any of its Subsidiaries; (v) Participant’s fraud or misappropriation, embezzlement or material misuse of funds or property belonging to the Company or any of its Subsidiaries; (vi) Participant’s use of alcohol or drugs that interferes with
the performance of Participant’s duties as an Employee, Consultant, or Director of the Company or any of its Subsidiaries, as applicable; or (vii) any action or conduct of Participant that materially adversely affects the integrity and
reputation of the Company or any of its Subsidiaries, their employees or their products, as determined by the Committee. 

2.5. “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time. 

2.6. “Committee” shall mean the Compensation Committee of the Board or a subcommittee thereof formed by the
Compensation Committee to act as the Committee hereunder or, if no such Compensation Committee or subcommittee thereof exists, the Board. The Committee shall consist of no fewer than two Directors, each of whom is (i) a “non-employee
director” within the meaning of Rule 16b-3 under the Exchange Act, (ii) an “outside director” within the meaning of Section 162(m) of the Code, and (iii) an “independent director” for purpose of the rules of
the principal U.S. national securities exchange on which the Shares are traded, in each case, when and to the extent necessary to satisfy Rule 16b-3, Section 162(m) and the rules of the principal U.S. national securities exchange. 

2.7. “Consultant” shall mean any consultant or advisor, who is a natural person and who provides services to the
Company or any Subsidiary so long as such person (i) renders bona fide services that are not in connection with the offer and sale of the Company’s securities in a capital-raising transaction, (ii) does not directly or indirectly
promote or maintain a market for the Company’s securities and (iii) otherwise qualifies as a consultant under the applicable rules of the SEC for registration of shares on a Form S-8 registration statement. 

 2.8. “Covered Employee” shall mean an employee of the Company or its
Subsidiaries who is a “covered employee” within the meaning of Section 162(m) of the Code. 
 2.9.
“Director” shall mean a member of the Board who is not an employee. 
 2.10. “Dividend
Equivalents” shall have the meaning set forth in Section 12.5. 
 2.11. “Employee” shall
mean any employee of the Company or any Subsidiary and any prospective employee conditioned upon, and effective not earlier than, such person becoming an employee of the Company or any Subsidiary. 

2.12. “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time. 

2.13. “Fair Market Value” shall mean, with respect to Shares as of any date, (i) the closing price of the
Shares as reported on the principal U.S. national securities exchange on which the Shares are listed and traded on such date, or, if there is no closing price on that date, then on the last preceding date on which such a closing price was reported;
(ii) if the Shares are not listed on any U.S. national securities exchange but are quoted in an inter-dealer quotation system on a last sale basis, the final ask price of the Shares reported on the inter-dealer quotation system for such date,
or, if there is no such sale on such date, then on the last preceding date on which a sale was reported; or (iii) if the Shares are neither listed on a U.S. national securities exchange nor quoted on an inter-dealer quotation system on a last
sale basis, or if the Shares are not regularly traded on any such exchange or system, the amount determined by the Committee, in its sole discretion, to be the fair market value of the Shares. The Fair Market Value of any property other than Shares
shall mean the market value of such property determined by such methods or procedures as shall be established from time to time by the Committee. Notwithstanding the foregoing, with respect to Awards made on the consummation date of the initial
underwritten public offering of the Shares pursuant to a registration statement filed under the Securities Act (“IPO”), Fair Market Value shall mean the per Share IPO price. 

2.14. “Incentive Share Option” shall mean an Option which when granted is intended to qualify as an incentive
stock option for purposes of Section 422 of the Code. 
 2.15. “Option” shall mean any right
granted to a Participant under the Plan allowing such Participant to purchase Shares at such price or prices and during such period or periods as the Committee shall determine. 

2.16. “Other Share-Based Award” shall have the meaning set forth in Section 8.1. 

2.17. “Participant” shall mean an Employee, Director or Consultant who is selected by the Committee to receive an
Award under the Plan. 
 2.18. “Performance Award” shall mean any Award of Performance Cash, Performance
Shares or Performance Units granted pursuant to Article 9. 
 2.19. “Performance Cash” shall mean any
cash incentives granted pursuant to Article 9 payable to the Participant upon the achievement of such performance goals as the Committee shall establish. 

  
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 2.20. “Performance Period” shall mean the period established by the
Committee during which any performance goals specified by the Committee with respect to a Performance Award are to be measured. 

2.21. “Performance Share” shall mean any grant pursuant to Article 9 of a unit valued by reference to a
designated number of Shares, which value may be paid to the Participant upon achievement of such performance goals as the Committee shall establish. 
 2.22. “Performance Unit” shall mean any grant pursuant to Article 9 of a unit valued by reference to a designated amount of cash or property other than Shares, which value may be
paid to the Participant upon achievement of such performance goals during the Performance Period as the Committee shall establish. 
 2.23. “Permitted Assignee” shall have the meaning set forth in Section 12.3. 
 2.24. “Prior Plans” shall mean the Amended and Restated Michael Kors (USA), Inc. Stock Option Plan, as amended from time to time, and any other plans pursuant to which equity-based
compensation awards were granted prior to the IPO. 
 2.25. “Restricted Share” shall mean any Share
issued with the restriction that the holder may not sell, transfer, pledge or assign such Share and with such other restrictions as the Committee, in its sole discretion, may impose, which restrictions may lapse separately or in combination at such
time or times, in installments or otherwise, as the Committee may deem appropriate. 
 2.26. “Restricted Share
Award” shall have the meaning set forth in Section 7.1. 
 2.27. “Restricted Share Unit”
means an Award that is valued by reference to a Share, which value may be paid to the Participant in Shares or cash as determined by the Committee in its sole discretion upon the satisfaction of vesting restrictions as the Committee may
establish, which restrictions may lapse separately or in combination at such time or times, in installments or otherwise, as the Committee may deem appropriate. 
 2.28. “Restricted Share Unit Award” shall have the meaning set forth in Section 7.1 
 2.29. “SEC” means the Securities and Exchange Commission. 

2.30. “SHL Fashion Holders” means any of the holders of the outstanding securities of the Company (or its
predecessor company) on April 15, 2008 other than Mr. Michael Kors, and such beneficial owners’ affiliates. 

2.31. “Shares” shall mean the ordinary shares, no par value, of the Company. 

2.32. “Share Appreciation Right” shall mean the right granted to a Participant pursuant to Article 6. 

2.33. “Subsidiary” shall mean any corporation (other than the Company) in an unbroken chain of corporations
beginning with the Company if, at the relevant time each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or 

  
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more of the total combined voting power of all classes of stock in one of the other corporations in the chain. 
 2.34. “Substitute Awards” shall mean Awards granted or Shares issued by the Company in assumption of, or in substitution or exchange for, awards previously granted, or the right or
obligation to make future awards, in each case by a company acquired by the Company or any Subsidiary or with which the Company or any Subsidiary combines. 
 2.35. “Vesting Period” shall mean the period of time specified by the Committee during which vesting restrictions for an Award are applicable. 

 

	3.	SHARES SUBJECT TO THE PLAN 

3.1 Number of Shares. (a) Subject to adjustment as provided in Section 12.2, a total of 15.246 million
(15,246,000) Shares shall be authorized for grant under the Plan. After the effective date of the Plan (as provided in Section 13.13), no awards may be granted under the Prior Plans. 

(b) If (i) any Shares subject to an Award are forfeited, an Award expires or otherwise terminates without issuance of Shares, or an
Award is settled for cash (in whole or in part) or otherwise does not result in the issuance of all or a portion of the Shares subject to such Award (including on payment in Shares on exercise of a Share Appreciation Right), such Shares shall, to
the extent of such forfeiture, expiration, termination, cash settlement or non-issuance, again be available for issuance under the Plan or (ii) after the effective date of the Plan any Shares subject to an award under the Prior Plans are
forfeited, expire or otherwise terminate without issuance of such Shares, or an award under the Prior Plans is settled for cash (in whole or in part), expire or otherwise terminate without issuance of such Shares, or otherwise does not result in the
issuance of all or a portion of the Shares subject to such award (including on payment in Shares on exercise of a share appreciation right), such Shares shall, to the extent of such forfeiture, expiration, termination, cash settlement or
non-issuance, again be available for issuance under the Plan. 
 (c) In the event that (i) any Option or other Award
granted hereunder is exercised through the tendering of Shares (either actually or by attestation) or by the withholding of Shares by the Company, or (ii) withholding tax liabilities arising from such Option or other Award are satisfied by the
tendering of Shares (either actually or by attestation) or by the withholding of Shares by the Company, then the Shares so tendered or withheld shall be available for issuance under the Plan. In the event that after the effective date of the Plan
(i) any option or award granted under the Prior Plans is exercised through the tendering of Shares (either actually or by attestation) or by the withholding of Shares by the Company, or (ii) withholding tax liabilities arising from such
options or awards are satisfied by the tendering of Shares (either actually or by attestation) or by the withholding of Shares by the Company, then the Shares so tendered or withheld shall be available for issuance under the Plan. 

(d) Substitute Awards shall not reduce the Shares authorized for grant under the Plan or the applicable limitations for grant to a
Participant under Section 10.5, nor shall Shares subject to a Substitute Award again be available for Awards under the Plan as provided in paragraphs (b) and (c) above. Additionally, in the event that a company acquired by the Company
or any Subsidiary or with which the Company or any Subsidiary combines has shares 

  
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available under a pre-existing plan approved by stockholders and not adopted in contemplation of such acquisition or combination, the shares available for grant pursuant to the terms of such
pre-existing plan (as adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration payable to the holders of common stock of
the entities party to such acquisition or combination) may be used for Awards under the Plan and shall not reduce the Shares authorized for grant under the Plan; provided that Awards using such available shares shall not be made after the date
awards or grants could have been made under the terms of the pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were not Employees or Directors prior to such acquisition or combination. 

3.2. Character of Shares. Any Shares issued hereunder may consist, in whole or in part, of authorized and unissued shares,
treasury shares or shares purchased in the open market or otherwise. 
  

	4.	ELIGIBILITY AND ADMINISTRATION 

 4.1. Eligibility. Any Employee, Director or Consultant shall be eligible to be selected as a Participant. 
 4.2. Administration. (a) The Plan shall be administered by the Committee. The Committee shall have full power and authority, subject to the provisions of the Plan and subject to such
orders or resolutions not inconsistent with the provisions of the Plan as may from time to time be adopted by the Board, to: (i) select the Employees, Directors and Consultants to whom Awards may from time to time be granted hereunder;
(ii) determine the type or types of Awards to be granted to each Participant hereunder; (iii) determine the number of Shares (or dollar value) to be covered by each Award granted hereunder; (iv) determine the terms and conditions, not
inconsistent with the provisions of the Plan, of any Award granted hereunder; (v) determine whether, to what extent and under what circumstances Awards may be settled in cash, Shares, Restricted Shares or other property; (vi) determine
whether, to what extent, and under what circumstances cash, Shares, other property and other amounts payable with respect to an Award made under the Plan shall be deferred either automatically or at the election of the Participant;
(vii) determine whether, to what extent and under what circumstances any Award shall be canceled or suspended; (viii) interpret and administer the Plan and any instrument or agreement entered into under or in connection with the Plan,
including any Award Agreement; (ix) correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to the extent that the Committee shall deem desirable to carry it into effect;
(x) establish such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; (xi) determine whether any Award, other than an Option or Share Appreciation Right, will have Dividend
Equivalents; (xii) accelerate the vesting or exercisability of any Award; and (xiii) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan. 

(b) Decisions of the Committee shall be final, conclusive and binding on all persons or entities, including the Company, any Participant,
and any Subsidiary. 
 (c) To the extent not inconsistent with applicable law, including Section 162(m) of the Code with
respect to Awards intended to comply with the performance-based 

  
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compensation exception under Section 162(m), or the rules and regulations of the principal U.S. national securities exchange on which the Shares are traded), the Committee may delegate to a
committee of one or more directors of the Company any of the authority of the Committee under the Plan, including the right to grant, cancel or suspend Awards. 
  

	5.	OPTIONS 

 5.1.
Grant of Options. Options may be granted hereunder to Participants either alone or in addition to other Awards granted under the Plan. Any Option shall be subject to the terms and conditions of this Article and to such additional terms
and conditions, not inconsistent with the provisions of the Plan, as the Committee shall deem desirable. 
 5.2. Award
Agreements. All Options shall be evidenced by an Award Agreement in such form and containing such terms and conditions as the Committee shall determine which are not inconsistent with the provisions of the Plan. The terms and conditions of
Options need not be the same with respect to each Participant. Granting an Option pursuant to the Plan shall impose no obligation on the recipient to exercise such Option. Any individual who is granted an Option pursuant to this Article may hold
more than one Option granted pursuant to the Plan at the same time. 
 5.3. Option Price. Other than in connection
with Substitute Awards, the option price per each Share purchasable under any Option granted pursuant to this Article shall not be less than 100% of the Fair Market Value of one Share on the date of grant of such Option; provided, however, that in
the case of an Incentive Share Option granted to a Participant who, at the time of the grant, owns shares representing more than 10% of the voting power of all classes of shares of the Company or any Subsidiary, the option price per share shall be
no less than 110% of the Fair Market Value of one Share on the date of grant. Other than pursuant to Section 12.2, the Committee shall not without the approval of the Company’s shareholders (a) lower the option price per Share of an
Option after it is granted, (b) cancel an Option that has an exercise price that is equal to or greater than the Fair Market Value in exchange for cash or another Award (other than in connection with a Change in Control (as defined in
Section 11.3), as described in Section 11.2) or (c) take any other action with respect to an Option that would be treated as a repricing under the rules and regulations of the principal U.S. national securities exchange on which the
Shares are traded. 
 5.4. Option Term. The term of each Option shall be fixed by the Committee in its sole
discretion; provided that no Option shall be exercisable after the expiration of ten (10) years from the date the Option is granted, except in the event of death or disability; provided, however, that the term of the Option shall not exceed
five (5) years from the date the Option is granted in the case of an Incentive Share Option granted to a Participant who, at the time of the grant, owns shares representing more than 10% of the voting power of all classes of shares of the
Company or any Subsidiary. Notwithstanding the foregoing, in the event that on the last business day of the term of an Option (i) the exercise of the Option, other than an Incentive Share Option, is prohibited by applicable law or
(ii) Shares may not be purchased or sold by certain employees or directors of the Company due to the “black-out period” of a Company policy or a “lock-up” agreement undertaken in connection with an issuance of securities by
the Company, the term shall be extended for a period of thirty (30) days following the end of the legal prohibition, 

  
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black-out period or lock-up agreement to the extent such extension does not cause adverse tax consequences to the Participant under Section 409A of the Code. 

5.5. Vesting and Exercise of Options. (a) Unless otherwise provided in an Award Agreement, any Option granted under
the Plan shall vest and become exercisable as to 25% of the Shares subject thereto on each of the first four anniversaries of the date the Option is granted, in each case so long as the Participant continues to be employed by or provide services to
the Company or any of its Subsidiaries on the relevant vesting date. 
 (b) Vested Options granted under the Plan shall be
exercised by the Participant (or by a Permitted Assignee thereof or the Participant’s executors, administrators, guardian or legal representative, to the extent provided in an Award Agreement) as to all or part of the Shares covered thereby, by
giving notice of exercise to the Company or its designated agent, specifying the number of Shares to be purchased. The notice of exercise shall be in such form, made in such manner, and shall comply with such other requirements consistent with the
provisions of the Plan as the Committee may prescribe from time to time. 
 (c) Unless otherwise provided in an Award Agreement,
full payment of such purchase price shall be made at the time of exercise and shall be made (i) in cash or cash equivalents (including certified check or bank check or wire transfer of immediately available funds), (ii) by tendering
previously acquired Shares (either actually or by attestation) valued at their then Fair Market Value, (iii) with the consent of the Committee, by delivery of other consideration having a Fair Market Value on the exercise date equal to the
total purchase price, (iv) with the consent of the Committee, by withholding Shares otherwise issuable in connection with the exercise of the Option, (v) through any other method specified in an Award Agreement (including same-day sales
through a broker), or (vi) any combination of any of the foregoing. The notice of exercise, accompanied by such payment, shall be delivered to the Company at its principal business office or such other office as the Committee may from time to
time direct, and shall be in such form, containing such further provisions consistent with the provisions of the Plan, as the Committee may from time to time prescribe. In no event may any Option granted hereunder be exercised for a fraction of a
Share. 
 (d) Notwithstanding the foregoing, an Award Agreement may provide that if on the last day of the term of an Option the
Fair Market Value of one Share exceeds the option price per Share, the Participant has not exercised the Option (or a tandem Share Appreciation Right, if applicable) and the Option has not expired, the Option shall be deemed to have been exercised
by the Participant on such day with payment made by withholding Shares otherwise issuable in connection with the exercise of the Option. In such event, the Company shall deliver to the Participant the number of Shares for which the Option was deemed
exercised, less the number of Shares required to be withheld for the payment of the total purchase price and required withholding taxes; provided, however, any fractional Share shall be settled in cash. 

5.6. Form of Settlement. In its sole discretion, the Committee may provide that the Shares to be issued upon an
Option’s exercise shall be in the form of Restricted Shares or other similar securities. 
 5.7. Incentive Share
Options. The Committee may grant Incentive Share Options to any eligible Employee of the Company or any Subsidiary, subject to the requirements of Section 

  
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422 of the Code. Solely for purposes of determining whether Shares are available for the grant of Incentive Share Options under the Plan, the maximum aggregate number of Shares that may be issued
pursuant to Incentive Share Options granted under the Plan shall be 15.246 million (15,246,000) Shares, subject to adjustment as provided in Section 12.2. No Option shall be treated as an Incentive Share Option unless the Plan has been
approved by the shareholders of the Company in a manner intended to comply with the shareholder approval requirements of Section 422(b)(1) of the Code, provided that any Option intended to be an Incentive Share Option shall not fail to be
effective solely on account of a failure to obtain such approval, but rather such Option shall be treated as a nonqualified option unless and until such approval is obtained. 

 

	6.	SHARE APPRECIATION RIGHTS 

6.1. Grant, Vesting and Exercise. The Committee may grant Share Appreciation Rights (a) in tandem with all or part of
any Option granted under the Plan or at any subsequent time during the term of such Option, (b) in tandem with all or part of any Award (other than an Option) granted under the Plan or at any subsequent time during the term of such Award, or
(c) without regard to any Option or other Award in each case upon such terms and conditions as the Committee may establish in its sole discretion. Unless otherwise provided in an Award Agreement, any Share Appreciation Rights granted under the
Plan shall vest and become exercisable as to 25% of such Share Appreciation Rights on each of the first four anniversaries of the date the Share Appreciation Rights are granted, in each case so long as the Participant continues to be employed by or
provide services to the Company or any of its Subsidiaries on the relevant vesting date. 
 6.2. Terms and
Conditions. Share Appreciation Rights shall be subject to such terms and conditions, not inconsistent with the provisions of the Plan, as shall be determined from time to time by the Committee, including the following: 

(a) Upon the exercise of a Share Appreciation Right, the holder shall have the right to receive the excess of (i) the Fair Market
Value of one Share on the date of exercise (or such amount less than such Fair Market Value as the Committee shall so determine at any time during a specified period before the date of exercise) over (ii) the grant price of the Share
Appreciation Right. 
 (b) The Committee shall determine in its sole discretion whether payment on exercise of a Share
Appreciation Right shall be made in cash, in whole Shares, Restricted Shares, other property or any combination thereof. 
 (c)
The terms and conditions of Share Appreciation Rights need not be the same with respect to each recipient. 
 (d) The Committee
may impose such other terms and conditions on the exercise of any Share Appreciation Right, as it shall deem appropriate. A Share Appreciation Right shall (i) have a grant price per Share of not less than the Fair Market Value of one Share on
the date of grant or, if applicable, on the date of grant of an Option with respect to a Share Appreciation Right granted in exchange for or in tandem with, but subsequent to, the Option (subject to the requirements of Section 409A of the Code)
except in the case of Substitute Awards or in connection with an adjustment provided in Section 12.2, and (ii) have a term not 

  
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greater than ten (10) years, except in the event of death or disability. Notwithstanding clause (ii) of the preceding sentence, in the event that on the last business day of the term of
a Share Appreciation Right (x) the exercise of the Share Appreciation Right is prohibited by applicable law or (y) Shares may not be purchased or sold by certain employees or directors of the Company due to the “black-out period”
of a Company policy or a “lock-up” agreement undertaken in connection with an issuance of securities by the Company, the term shall be extended for a period of thirty (30) days following the end of the legal prohibition, black-out
period or lock-up agreement to the extent such extension does not cause adverse tax consequences to the Participant under Section 409A of the Code. 
 (e) An Award Agreement may provide that if on the last day of the term of a Share Appreciation Right the Fair Market Value of one Share exceeds the grant price per Share of the Share Appreciation Right,
the Participant has not exercised the Share Appreciation Right or the tandem Option (if applicable), and the Share Appreciation Right has not expired, the Share Appreciation Right shall be deemed to have been exercised by the Participant on such
day. In such event, the Company shall make payment to the Participant in accordance with this Section, reduced by the number of Shares (or cash) required for withholding taxes; any fractional Share shall be settled in cash. 

(f) Without the approval of the Company’s shareholders, other than pursuant to Section 12.2, the Committee shall not
(i) reduce the grant price of any Share Appreciation Right after the date of grant (ii) cancel any Share Appreciation Right that has a grant price that is equal to or greater than the Fair Market Value in exchange for cash or another Award
(other than in connection with a Change in Control as defined in Section 11.3), or (iii) take any other action with respect to a Share Appreciation Right that would be treated as a repricing under the rules and regulations of the principal
U.S. national securities exchange on which the Shares are traded. 
  

	7.	RESTRICTED SHARE AND RESTRICTED SHARE UNITS 

 7.1. Grants. Awards of Restricted Shares and of Restricted Share Units may be granted hereunder to Participants either alone or in addition to other Awards granted under the Plan (a
“Restricted Share Award” or “Restricted Share Unit Award” respectively), and such Restricted Share Awards and Restricted Share Unit Awards shall also be available as a form of payment of Performance Awards, Options, Share
Appreciation Rights and other earned cash-based incentive compensation. The Committee has absolute discretion to determine whether any consideration (other than services) is to be received by the Company or any Subsidiary as a condition precedent to
the grant of Restricted Share or Restricted Share Units, subject to such minimum consideration as may be required by applicable law. 
 7.2. Award Agreements. The terms of any Restricted Share Award or Restricted Share Unit Award granted under the Plan shall be set forth in an Award Agreement which shall contain provisions
determined by the Committee and not inconsistent with the Plan. The terms of Restricted Share Awards and Restricted Share Unit Awards need not be the same with respect to each Participant. 

7.3. Rights of Holders of Restricted Share and Restricted Share Units. Unless otherwise provided in the Award Agreement,
beginning on the date of grant of the Restricted Share Award and subject to execution of the Award Agreement, the Participant shall become a 

  
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shareholder of the Company with respect to all Shares subject to the Award Agreement and shall have all of the rights of a shareholder, including the right to vote such Shares and the right to
receive distributions made with respect to such Share, except as otherwise provided in this Section. A Participant who holds a Restricted Share Unit Award shall only have those rights specifically provided for in the Award Agreement; provided,
however, in no event shall the Participant have voting rights with respect to such Award. Except as otherwise provided in an Award Agreement, any Shares, other property or cash distributed as a dividend or otherwise with respect to any Restricted
Share Award or Restricted Share Unit Award as to which the restrictions have not yet lapsed shall be subject to the same restrictions as such Restricted Share Award or Restricted Share Unit Award, and the Committee shall have the sole discretion to
determine whether, if at all, any cash-denominated amount that is subject to such restrictions shall earn interest and at what rate. Notwithstanding the provisions of this Section, cash dividends, shares and any other property (other than cash)
distributed as a dividend or otherwise with respect to any Restricted Share Award or Restricted Share Unit Award that vests based on achievement of performance goals shall either (i) not be paid or credited or (ii) be accumulated, shall be
subject to restrictions and risk of forfeiture to the same extent as the Restricted Shares or Restricted Share Units with respect to which such cash, shares or other property has been distributed and shall be paid at the time such restrictions and
risk of forfeiture lapse. 
 7.4. Vesting Period. Unless otherwise provided in an Award Agreement, any
Restricted Shares or Restricted Share Units granted under the Plan shall vest and become exercisable as to 25% of the Shares subject to such Award on each of the first four anniversaries of the date the Award is granted, in each case so long as the
Participant continues to be employed by or provide services to the Company or any of its Subsidiaries on the relevant vesting date. The Committee may, in its sole discretion waive the vesting restrictions and any other conditions set forth in the
Plan and any Award Agreement under such terms and conditions as the Committee shall deem appropriate, subject to the limitations imposed under Section 162(m) of the Code and the regulations thereunder in the case of a Restricted Share Award or
Restricted Share Unit Award intended to comply with the performance-based exception under Code Section 162(m) except as otherwise determined by the Committee to be appropriate under the circumstances. 

7.5 Issuance of Shares. Any Restricted Share granted under the Plan may be evidenced in such manner as the Board may deem
appropriate, including book-entry registration or issuance of a share certificate or certificates, which certificate or certificates shall be held by the Company. Such book entry registration, certificate or certificates shall be registered in the
name of the Participant and shall bear an appropriate legend referring to the restrictions applicable to such Restricted Share. At the request of the Committee, as a condition to any grant of Restricted Shares, a Participant may be required to
execute a stock power in blank. 
  

	8.	OTHER SHARE-BASED AWARDS 

8.1. Grants. Other Awards of Shares and other Awards that are valued in whole or in part by reference to, or are otherwise
based on, Shares or other property (“Other Share-Based Awards”), including deferred share units, may be granted hereunder to Participants either alone or in addition to other Awards granted under the Plan. Other Share-Based Awards shall
also be available as a form of payment of other Awards granted under the Plan and other earned cash-based compensation. 

  
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 8.2. Award Agreements. The terms of Other Share-Based Awards granted under the
Plan shall be set forth in an Award Agreement which shall contain provisions determined by the Committee and not inconsistent with the Plan. The terms of such Awards need not be the same with respect to each Participant. Notwithstanding the
provisions of this Section, Dividend Equivalents with respect to the Shares covered by an Other Share-Based Award that vests based on achievement of performance goals shall be subject to restrictions and risk of forfeiture to the same extent as the
Shares covered by an Other Share-Based Award with respect to which such cash, shares or other property has been distributed. 

8.3. Vesting Period. Unless otherwise provided in an Award Agreement, any Other Share-Based Awards granted under the Plan
shall vest and become exercisable as to 25% of the Shares subject to such Award on each of the first four anniversaries of the date the Award is granted, in each case so long as the Participant continues to be employed by or provide services to the
Company or any of its Subsidiaries on the relevant vesting date. The Committee may, in its sole discretion waive the vesting restrictions and any other conditions set forth in the Plan and any Award Agreement under such terms and conditions as the
Committee shall deem appropriate, subject to the limitations imposed under Section 162(m) of the Code and the regulations thereunder in the case of an Other Share-Based Award intended to comply with the performance-based exception under Code
Section 162(m) except as otherwise determined by the Committee to be appropriate under the circumstances. 
 8.4.
Payment. Except as may be provided in an Award Agreement, Other Share-Based Awards may be paid in cash, Shares, other property, or any combination thereof, in the sole discretion of the Committee. Other Share-Based Awards may be
paid in a lump sum or in installments or, in accordance with procedures established by the Committee, on a deferred basis subject to the requirements of Section 409A of the Code. 

8.5. Deferral of Director Fees. Directors shall, if determined by the Board, receive Other Share-Based Awards in the form
of deferred share units in lieu of all or a portion of their annual retainer. In addition Directors may elect to receive Other Share-Based Awards in the form of deferred share units in lieu of all or a portion of their annual and committee retainers
and annual meeting fees, provided that such election is made in accordance with the requirements of Section 409A of the Code. The Committee shall, in its absolute discretion, establish such rules and procedures as it deems appropriate for such
elections and for payment in deferred share units. 
  

	9.	PERFORMANCE AWARDS 

9.1. Grants. Performance Awards in the form of Performance Cash, Performance Shares or Performance Units, as determined by
the Committee in its sole discretion, may be granted hereunder to Participants, for no consideration or for such minimum consideration as may be required by applicable law, either alone or in addition to other Awards granted under the Plan. The
performance goals to be achieved for each Performance Period shall be conclusively determined by the Committee and may be based upon the criteria set forth in Section 10.2 or such other criteria as determined by the Committee in its discretion.

 9.2. Award Agreements. The terms of any Performance Award granted under the Plan shall be set forth in an Award
Agreement (or, if applicable, in a resolution duly adopted by the 

  
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Committee) which shall contain provisions determined by the Committee and not inconsistent with the Plan, including whether such Awards shall have Dividend Equivalents. The terms of Performance
Awards need not be the same with respect to each Participant. 
 9.3. Terms and Conditions. The performance
criteria to be achieved during any Performance Period and the length of the Performance Period shall be determined by the Committee upon the grant of each Performance Award. The amount of the Award to be distributed shall be conclusively determined
by the Committee. 
 9.4. Payment. Except as provided in Article 11, as provided by the Committee or as may be
provided in an Award Agreement, Performance Awards will be distributed only after the end of the relevant Performance Period. Performance Awards may be paid in cash, Shares, other property, or any combination thereof, in the sole discretion of the
Committee. Performance Awards may be paid in a lump sum or in installments following the close of the Performance Period or, in accordance with procedures established by the Committee, on a deferred basis subject to the requirements of
Section 409A of the Code. 
  

	10.	CODE SECTION 162(m) PROVISIONS 

 10.1. Covered Employees. Notwithstanding any other provision of the Plan, if the Committee determines at the time a Restricted Share Award, a Restricted Share Unit Award, a Performance Award
or an Other Share-Based Award is granted to a Participant who is, or is likely to be, as of the end of the tax year in which the Company would claim a tax deduction in connection with such Award, a Covered Employee, then the Committee may provide
that this Article 10 is applicable to such Award. 
 10.2. Performance Criteria. If the Committee
determines that a Restricted Share Award, a Restricted Share Unit Award, a Performance Award or an Other Share-Based Award is intended to be subject to this Article 10, the lapsing of restrictions thereon and the distribution of cash, Shares or
other property pursuant thereto, as applicable, shall be subject to the achievement of one or more objective performance goals established by the Committee, which shall be based on the attainment of specified levels of one or any combination of the
following: sales (including same store or comparable sales); net sales; return on sales; revenue, net revenue, gross revenue, product revenue or system-wide revenue (including growth of same); operating income (before or after taxes); pre- or
after-tax income or loss (before or after allocation of corporate overhead and bonus); earnings or loss per share (including on a diluted or undiluted basis, before or after taxes); net income or loss (before or after taxes); return on equity;
stockholder return or total stockholder return; return on assets or net assets; price of the Shares or any other publicly-traded securities of the Company; market share; enterprise value; gross profits; gross or net profit margin; gross profit
growth; net operating profit (before or after taxes); operating earnings; earnings or losses or net earnings or losses (including earnings or losses before taxes, before interest and taxes, or before interest, taxes, depreciation and/or
amortization); economic value-added models or “value creation” or similar metrics; comparisons with various stock market indices; reductions in costs; cash flow (including, but not limited to, operating cash flow and free cash flow) or
cash flow per share (before or after dividends); return on capital (including return on total capital or return on invested capital); cash flow return on investment; cash flow return on capital; improvement in or attainment of expense levels or
working capital levels, including cash, inventory and accounts receivable; general and administrative expense savings; inventory 

  
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control; operating margin; gross margin; year-end cash; cash margin; debt reduction; stockholders equity; return on stockholders’ equity; operating efficiencies; cost reduction or savings;
market share; customer satisfaction; client retention; customer growth; employee satisfaction; productivity or productivity ratios; supply chain achievements (including establishing relationships with manufacturers or suppliers of component
materials and manufacturers of the Company’s products); co-development, co-marketing, profit sharing, joint venture or other similar arrangements; financial ratios, including those measuring liquidity, activity, profitability or leverage; cost
of capital or assets under management; financing and other capital raising transactions (including sales of the Company’s equity or debt securities); debt level year-end cash position; book value; factoring transactions; competitive market
metrics; timely completion of new product roll-outs; timely launch of new facilities (such as new store openings, gross or net); sales or licenses of the Company’s assets, including its intellectual property, whether in a particular
jurisdiction or territory or globally, or through partnering transactions; royalty income; implementation, completion or attainment of measurable objectives with respect to research, development, manufacturing, commercialization, products or
projects, production volume levels, acquisitions and divestitures, succession and hiring projects, reorganization and other corporate transactions, expansions of specific business operations and meeting divisional or project budgets; factoring
transactions; and recruiting and maintaining personnel. Such performance goals also may be based solely by reference to the Company’s performance or the performance of a Subsidiary, division, business segment or business unit of the Company, or
based upon the relative performance of other companies or upon comparisons of any of the indicators of performance relative to other companies. The Committee may also exclude charges related to an event or occurrence which the Committee determines
should appropriately be excluded, including (a) restructurings, discontinued operations, extraordinary items, and other unusual or non-recurring charges, (b) an event either not directly related to the operations of the Company or not
within the reasonable control of the Company’s management, or (c) the cumulative effects of tax or accounting changes in accordance with U.S. generally accepted accounting principles. Such performance goals shall be set by the Committee
within the time period prescribed by, and shall otherwise comply with the requirements of, Section 162(m) of the Code, and the regulations thereunder. 
 10.3. Adjustments. Notwithstanding any provision of the Plan (other than Article 11), with respect to any Restricted Share Award, Restricted Share Unit Award, Performance Award or Other
Share-Based Award that is subject to this Section 10, the Committee may adjust downwards, but not upwards, the amount payable pursuant to such Award, and the Committee may not waive the achievement of the applicable performance goals except in
the case of the death or disability of the Participant or as otherwise determined by the Committee in special circumstances. 

10.4. Restrictions. The Committee shall have the power to impose such other restrictions on Awards subject to this
Article as it may deem necessary or appropriate to ensure that such Awards satisfy all requirements for “performance-based compensation” within the meaning of Section 162(m) of the Code. 

10.5. Limitations on Grants to Individual Participants. Subject to adjustment as provided in Section 12.2, no
Participant may (i) be granted Options or Share Appreciation Rights during any 36-month period with respect to more than 3.0 million (3,000,000) Shares; and (ii) earn more than 500,000 Shares for each twelve (12) months in the vesting
period or Performance Period with 

  
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respect to Restricted Share Awards, Restricted Share Unit Awards, Performance Awards and/or Other Share-Based Awards that are intended to comply with the performance-based exception under Code
Section 162(m) and are denominated in Shares. In addition to the foregoing, the maximum dollar value that may be earned by any Participant for each twelve (12) months in a Performance Period with respect to Performance Awards that are
intended to comply with the performance-based exception under Code Section 162(m) and are denominated in cash is $10,000,000. If an Award is cancelled, the cancelled Award shall continue to be counted toward the applicable limitation in this
Section. 
  

	11.	CHANGE IN CONTROL PROVISIONS 

 11.1. Impact on Certain Awards. Unless otherwise provided in an Award Agreement, the Committee shall have the right to provide in the event of a Change in Control of the Company (as defined
in Section 11.3): (i) Options and Share Appreciation Rights outstanding as of the date of the Change in Control shall be cancelled and terminated without payment if the Fair Market Value of one Share as of the date of the Change in Control
is less than the per Share Option exercise price or Share Appreciation Right grant price, and (ii) all Performance Awards shall be (x) considered to be earned and payable based on achievement of performance goals or based on target
performance (either in full or pro rata based on the portion of Performance Period completed as of the date of the Change in Control), and any limitations or other restrictions shall lapse and such Performance Awards shall be immediately settled or
distributed or (y) converted into Restricted Share or Restricted Share Unit Awards based on achievement of performance goals or based on target performance (either in full or pro rata based on the portion of Performance Period completed as of
the date of the Change in Control) that are subject to Section 11.2. 
 11.2. Assumption or Substitution of
Certain Awards. (a) Unless otherwise provided in an Award Agreement, in the event of a Change in Control of the Company in which the successor company assumes or substitutes for an Option, Share Appreciation Right, Restricted Share Award,
Restricted Share Unit Award or Other Share-Based Award (or in which the Company is the ultimate parent corporation and continues the Award), if a Participant’s employment with such successor company (or the Company) or a subsidiary thereof
terminates within 24 months following such Change in Control (or such other period set forth in the Award Agreement, including prior thereto if applicable) and under the circumstances specified in the Award Agreement: (i) Options and Share
Appreciation Rights outstanding as of the date of such termination of employment will immediately vest, become fully exercisable and shall remain exercisable for a two-year period (or if earlier, until the original expiration date set forth in the
Award Agreement), (ii) the restrictions, limitations and other conditions applicable to Restricted Share and Restricted Share Units outstanding as of the date of such termination of employment shall lapse and the Restricted Share and Restricted
Share Units shall become free of all restrictions, limitations and conditions and become fully vested, and (iii) the restrictions, limitations and other conditions applicable to any Other Share-Based Awards or any other Awards shall lapse, and
such Other Share-Based Awards or such other Awards shall become free of all restrictions, limitations and conditions and become fully vested and transferable. For the purposes of this Section 11.2, an Option, Share Appreciation Right,
Restricted Share Award, Restricted Share Unit Award or Other Share-Based Award shall be considered assumed or substituted for if following the Change in Control the Award confers the right to purchase or receive, for each Share subject to the
Option, Share Appreciation Right, Restricted Share Award, 

  
 - 14 -

 
Restricted Share Unit Award or Other Share-Based Award immediately prior to the Change in Control, the consideration (whether shares, cash or other securities or property) received in the
transaction constituting a Change in Control by holders of Shares for each Share held on the effective date of such transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of
the outstanding Shares); provided, however, that if such consideration received in the transaction constituting a Change in Control is not solely common stock of the successor company, the Committee may, with the consent of the successor company,
provide that the consideration to be received upon the exercise or vesting of an Option, Share Appreciation Right, Restricted Share Award, Restricted Share Unit Award or Other Share-Based Award, for each Share subject thereto, will be solely common
stock of the successor company with a fair market value substantially equal to the per Share consideration received by holders of Shares in the transaction constituting a Change in Control. The determination of what fair market value is
substantially equal shall be made by the Committee in its sole discretion and its determination shall be conclusive and binding. 
 (b) Unless otherwise provided in an Award Agreement, in the event of a Change in Control of the Company, to the extent the successor company does not assume or substitute for an Option, Share Appreciation
Right, Restricted Share Award, Restricted Share Unit Award or Other Share-Based Award (or in which the Company is the ultimate parent corporation and does not continue the Award), then immediately prior to the Change in Control: (i) those
Options and Share Appreciation Rights outstanding as of the date of the Change in Control that are not assumed or substituted for (or continued) shall immediately vest and become fully exercisable, (ii) restrictions, limitations and other
conditions applicable to Restricted Share and Restricted Share Units that are not assumed or substituted for (or continued) shall lapse and the Restricted Share and Restricted Share Units shall become free of all restrictions, limitations and
conditions and become fully vested, and (iii) the restrictions, other limitations and other conditions applicable to any Other Share-Based Awards or any other Awards that are not assumed or substituted for (or continued) shall lapse, and such
Other Share-Based Awards or such other Awards shall become free of all restrictions, limitations and conditions and become fully vested and transferable. 
 (c) The Committee, in its discretion, may determine that, upon the occurrence of a Change in Control of the Company, each Option and Share Appreciation Right outstanding shall terminate within a specified
number of days after notice to the Participant, and/or that each Participant shall receive, with respect to each Share subject to such Option or Share Appreciation Right, an amount equal to the excess of the Fair Market Value of such Share
immediately prior to the occurrence of such Change in Control over the exercise price per Share of such Option and/or Share Appreciation Right; such amount to be payable in cash, in one or more kinds of stock or property (including the stock or
property, if any, payable in the transaction) or in a combination thereof, as the Committee, in its discretion, shall determine. 
 11.3. Change in Control. For purposes of the Plan and Awards, unless otherwise provided in an Award Agreement, Change in Control means the occurrence of any one of the following events:

 (a) During any twenty-four (24) month period, individuals who, as of the beginning of such period, constitute the Board
(the “Incumbent Directors”) cease for any reason to constitute at least a majority of the Board, provided that any person becoming a director 

  
 - 15 -

 
subsequent to the beginning of such period whose election or nomination for election was approved by a vote of at least a majority of the Incumbent Directors then on the Board (either by a
specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent Director; provided, however, that no
individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any
person other than the Board shall be deemed to be an Incumbent Director; 
 (b) Any “person” (as such term is defined
in the Exchange Act and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) other than the SHL Fashion Holders is or becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing 30% or more of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of the Board (the “Company Voting Securities”);
provided, however, that the event described in this paragraph (b) shall not be deemed to be a Change in Control by virtue of any of the following acquisitions: (i) by the Company or any Subsidiary, (ii) by any
employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, (iii) by any underwriter temporarily holding securities pursuant to an offering of such securities, (iv) pursuant to a Non-Qualifying
Transaction, as defined in paragraph (c), or (v) by any person of Company Voting Securities from the Company, if a majority of the Incumbent Board approves in advance the acquisition of beneficial ownership of 30% or more of Company Voting
Securities by such person; 
 (c) The consummation of a merger, consolidation, statutory share exchange or similar form of
corporate transaction involving the Company or any of its Subsidiaries that requires the approval of the Company’s shareholders, whether for such transaction or the issuance of securities in the transaction (a “Business Combination”),
unless immediately following such Business Combination: (i) more than 50% of the total voting power of (A) the corporation resulting from such Business Combination (the “Surviving Corporation”), or (B) if applicable, the
ultimate parent corporation that directly or indirectly has beneficial ownership of 100% of the voting securities eligible to elect directors of the Surviving Corporation (the “Parent Corporation”), is represented by Company Voting
Securities that were outstanding immediately prior to such Business Combination (or, if applicable, is represented by shares into which such Company Voting Securities were converted pursuant to such Business Combination), and such voting power among
the holders thereof is in substantially the same proportion as the voting power of such Company Voting Securities among the holders thereof immediately prior to the Business Combination, (ii) no person (other than the SHL Fashion Holders or any
employee benefit plan (or related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation), is or becomes the beneficial owner, directly or indirectly, of 30% or more of the total voting power of the outstanding voting
securities eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) and (iii) at least a majority of the members of the board of directors of the Parent Corporation (or, if there
is no Parent Corporation, the Surviving Corporation) following the consummation of the Business Combination were Incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing for such Business
Combination (any Business Combination which satisfies all of the criteria specified in (i), (ii) and (iii) above shall be deemed to be a “Non-Qualifying Transaction”); or 

  
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 (d) The shareholders of the Company approve a plan of complete liquidation or dissolution of
the Company or the consummation of a sale of all or substantially all of the Company’s assets. 
 Notwithstanding the foregoing, a
Change in Control shall not be deemed to occur solely because any person acquires beneficial ownership of more than 30% of the Company Voting Securities as a result of the acquisition of Company Voting Securities by the Company which reduces the
number of Company Voting Securities outstanding; provided, that if after such acquisition by the Company such person becomes the beneficial owner of additional Company Voting Securities that increases the percentage of outstanding
Company Voting Securities beneficially owned by such person, a Change in Control of the Company shall then occur when the percentages set forth in this section are met. 

 

	12.	GENERALLY APPLICABLE PROVISIONS 

 12.1. Amendment and Termination of the Plan. The Board may, from time to time, alter, amend, suspend or terminate the Plan as it shall deem advisable, subject to any requirement for
shareholder approval imposed by applicable law, including the rules and regulations of the principal U.S. national securities exchange on which the Shares are traded; provided that the Board may not amend the Plan in any manner that would result in
noncompliance with Rule 16b-3 under the Exchange Act; and further provided that the Board may not, without the approval of the Company’s shareholders to the extent required by such applicable law, amend the Plan to (a) increase the number
of Shares that may be the subject of Awards under the Plan (except for adjustments pursuant to Section 12.2), (b) expand the types of awards available under the Plan, (c) materially expand the class of persons eligible to participate
in the Plan, (d) amend Section 5.3 or Section 6.2(f) to eliminate the requirements relating to minimum exercise price, minimum grant price and shareholder approval, (e) increase the maximum permissible term of any Option
specified by Section 5.4 or the maximum permissible term of a Share Appreciation Right specified by Section 6.2(d), or (f) increase any of the limitations in Section 10.5. The Board may not (except pursuant to Section 12.2
or in connection with a Change in Control), without the approval of the Company’s shareholders, cancel an Option or Share Appreciation Right in exchange for cash or take any action with respect to an Option or Share Appreciation Right that
would be treated as a repricing under the rules and regulations of the principal securities exchange on which the Shares are traded, including a reduction of the exercise price of an Option or the grant price of a Share Appreciation Right or the
exchange of an Option or Share Appreciation Right for another Award. In addition, no amendments to, or termination of, the Plan shall impair the rights of a Participant in any material respect under any Award previously granted without such
Participant’s consent. 
 12.2. Adjustments. In the event of any merger, reorganization, consolidation,
recapitalization, dividend or distribution (whether in cash, shares or other property, other than a regular cash dividend), stock split, reverse stock split, spin-off or similar transaction or other change in corporate structure affecting the Shares
or the value thereof, such adjustments and other substitutions shall be made to the Plan and to Awards in a manner that the Committee deems equitable or appropriate taking into consideration the accounting and tax consequences, including such
adjustments in the aggregate number, class and kind of securities that may be delivered under the Plan, the limitations in Section 10.5 (other than to Awards denominated in cash), the maximum number of Shares that may be issued pursuant to
Incentive Share Options 

  
 - 17 -

 
and, in the aggregate or to any Participant, in the number, class, kind and option or exercise price of securities subject to outstanding Awards granted under the Plan (including, if the
Committee deems appropriate, the substitution of similar options to purchase the shares of, or other awards denominated in the shares of, another company) as the Committee may determine to be appropriate; provided, however, that the number of Shares
subject to any Award shall always be a whole number. 
 12.3. Transferability of Awards. Except as provided below,
no Award and no Shares that have not been issued or as to which any applicable restriction, performance or deferral period has not lapsed, may be sold, assigned, transferred, pledged or otherwise encumbered, other than by will or the laws of descent
and distribution, and such Award may be exercised during the life of the Participant only by the Participant or the Participant’s guardian or legal representative. Except in the case of Incentive Share Options, to the extent and under such
terms and conditions as determined by the Committee, a Participant may assign or transfer an Award without consideration (each transferee thereof, a “Permitted Assignee”) (i) to the Participant’s spouse, children or grandchildren
(including any adopted and step children or grandchildren), parents, grandparents or siblings, (ii) to a trust for the benefit of one or more of the Participant or the persons referred to in clause (i), (iii) to a partnership, limited
liability company or corporation in which the Participant or the persons referred to in clause (i) are the only partners, members or shareholders or (iv) for charitable donations; provided that such Permitted Assignee shall be bound by and
subject to all of the terms and conditions of the Plan and the Award Agreement relating to the transferred Award and shall execute an agreement satisfactory to the Company evidencing such obligations; and provided further that such Participant shall
remain bound by the terms and conditions of the Plan. The Company shall cooperate with any Permitted Assignee and the Company’s transfer agent in effectuating any transfer permitted under this Section. 

12.4. Termination of Employment or Services. The Committee shall determine and set forth in each Award Agreement whether
any Awards granted in such Award Agreement will continue to be exercisable, continue to vest or be earned and the terms of such exercise, vesting or earning, on and after the date that a Participant ceases to be employed by or to provide services to
the Company or any Subsidiary (including as a Director), whether by reason of death, disability, voluntary or involuntary termination of employment or services, or otherwise. The date of termination of a Participant’s employment or services
will be determined by the Committee, which determination will be final. Except as otherwise provided in an Award Agreement, unless determined otherwise by the Committee: (i) neither a temporary absence from employment or service due to illness,
vacation or leave of absence (including, without limitation, a call to active duty for military service through a Reserve or National Guard unit) nor a transfer from employment or service with the Company to employment or service with a Subsidiary
or affiliate (or vice-versa) shall be considered a termination of employment or service with the Company or a Subsidiary; and (ii) if a Participant’s employment with the Company and its Subsidiaries terminates, but such Participant
continues to provide services to the Company or its Subsidiaries in a non-employee capacity (including as a Director) (or vice-versa), such change in status shall not be considered a termination of employment or service with the Company or a
Subsidiary for purposes of the Plan. 
 12.5. Deferral; Dividend Equivalents. The Committee shall be
authorized to establish procedures pursuant to which the payment of any Award may be deferred. Subject to the provisions of the Plan and any Award Agreement, the recipient of an Award, if so determined by

  
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the Committee, be entitled to receive, currently or on a deferred basis, amounts equivalent to cash, shares or other property dividends on Shares (“Dividend Equivalents”) with respect
to the number of Shares covered by the Award, as determined by the Committee, in its sole discretion. The Committee may provide that the Dividend Equivalents (if any) shall be deemed to have been reinvested in additional Shares or otherwise
reinvested and may provide that the Dividend Equivalents are subject to the same vesting or performance conditions as the underlying Award. Notwithstanding the foregoing, Dividend Equivalents credited in connection with an Award that vests based on
the achievement of performance goals shall be subject to restrictions and risk of forfeiture to the same extent as the Award with respect to which such Dividend Equivalents have been credited, except in the discretion of the Committee during the
period the Company is a “controlled company” under the rules of the principal U.S. national securities exchange on which the Shares are traded. 
  

	13.	MISCELLANEOUS 

 13.1.
Award Agreements. Each Award Agreement shall either be (a) in writing in a form approved by the Committee and executed by the Company by an officer duly authorized to act on its behalf, or (b) an electronic notice in a form
approved by the Committee and recorded by the Company (or its designee) in an electronic recordkeeping system used for the purpose of tracking one or more types of Awards as the Committee may provide; in each case and if required by the Committee,
the Award Agreement shall be executed or otherwise electronically accepted by the recipient of the Award in such form and manner as the Committee may require. The Committee may authorize any officer of the Company to execute any or all Award
Agreements on behalf of the Company. The Award Agreement shall set forth the material terms and conditions of the Award as established by the Committee consistent with the provisions of the Plan. 

13.2. Tax Withholding. The Company shall have the right to make all payments or distributions pursuant to the Plan to a
Participant (or a Permitted Assignee thereof) net of any applicable federal, state and local taxes required to be paid or withheld as a result of (a) the grant of any Award, (b) the exercise of an Option or Share Appreciation Right,
(c) the delivery of Shares or cash, (d) the lapse of any restrictions in connection with any Award or (e) any other event occurring pursuant to the Plan. The Company or any Subsidiary shall have the right to withhold from wages or
other amounts otherwise payable to a Participant (or Permitted Assignee) such withholding taxes as may be required by law, or to otherwise require the Participant (or Permitted Assignee) to pay such withholding taxes. If the Participant (or
Permitted Assignee) shall fail to make such tax payments as are required, the Company or its Subsidiaries shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to such Participant
(or Permitted Assignee) or to take such other action as may be necessary to satisfy such withholding obligations. The Committee shall be authorized to establish procedures for election by Participants (or Permitted Assignee) to satisfy such
obligation for the payment of such taxes by tendering previously acquired Shares (either actually or by attestation, valued at their then Fair Market Value), or by directing the Company to retain Shares (up to the minimum required statutory tax
withholding rate for the Participant (or Permitted Assignee)) otherwise deliverable in connection with the Award. 
 13.3.
Right of Discharge Reserved; Claims to Awards. Nothing in the Plan nor the grant of an Award hereunder shall confer upon any Employee, Director or Consultant the right to 

  
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continue in the employment or service of the Company or any Subsidiary or affect any right that the Company or any Subsidiary may have to terminate the employment or service of (or to demote or
to exclude from future Awards under the Plan) any such Employee, Director or Consultant at any time for any reason. The Company shall not be liable for the loss of existing or potential profit from an Award granted in the event of termination of an
employment or other relationship. No Employee, Director or Consultant shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of Employees, Directors or Consultants under the Plan.

 13.4. Substitute Awards. Notwithstanding any other provision of the Plan, the terms of Substitute Awards may
vary from the terms set forth in the Plan to the extent the Committee deems appropriate to conform, in whole or in part, to the provisions of the awards in substitution for which they are granted. 

13.5. Cancellation of Award; Forfeiture of Gain. Notwithstanding anything to the contrary contained herein, an Award
Agreement may provide that: 
 (a) In the event of an accounting restatement due to material noncompliance by the Company with
any financial reporting requirement under the securities laws, any mistake in calculations or other administrative error, in each case, which reduces the amount of the Award that would have been earned had the financial results been properly
reported (as determined by the Committee) (i) the Award will be cancelled and (ii) the Participant will forfeit (A) the Shares received or payable on the vesting or exercise of the Award and (B) the amount of the proceeds of the
sale, gain or other value realized on the vesting or exercise of the Award (and the Participant may be required to return or pay such Shares or amount to the Company). 
 (b) If the Participant, without the consent of the Company, while employed by or providing services to the Company or any Subsidiary or after termination of such employment or service, violates a
non-solicitation or non-disclosure covenant or agreement or otherwise engages in activity that is in conflict with or adverse to the interest of the Company or any Subsidiary, as determined by the Committee in its sole discretion, then (i) any
outstanding, vested or unvested, earned or unearned portion of the Award may, at the Committee’s discretion, be canceled without payment therefor and (ii) the Committee, in its discretion, may require the Participant or other person to
whom any payment has been made or Shares or other property have been transferred in connection with the Award to forfeit and pay over to the Company, on demand, all or any portion of the compensation, gain or other value (whether or not taxable)
realized upon the exercise of any Option or Share Appreciation Right and the value realized (whether or not taxable) on the vesting or payment of any other Award during the time period specified in the Award Agreement. 

(c) To the extent required by applicable law (including without limitation Section 302 of the Sarbanes Oxley Act and
Section 954 of the Dodd Frank Act) and/or the rules and regulations of any U.S. national securities exchange or inter-dealer quotation system on which Shares are listed or quoted, or if so required pursuant to a written policy adopted by the
Company (as in effect and/or amended from time to time), Awards shall be subject (including on a retroactive basis) to clawback, forfeiture or similar requirements (and such requirements shall be deemed incorporated by reference into all outstanding
Award agreements). 

  
 - 20 -

 13.6. Stop Transfer Orders. All certificates for Shares delivered under the
Plan pursuant to any Award shall be subject to such stop-transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations and other requirements of the SEC, any stock exchange upon which the Shares are then
listed, and any applicable federal or state securities law, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 

13.7. Nature of Payments. All Awards made pursuant to the Plan are in consideration of services performed or to be
performed for the Company or any Subsidiary, division or business unit of the Company or a Subsidiary. Any income or gain realized pursuant to Awards under the Plan constitutes a special incentive payment to the Participant and shall not be taken
into account, to the extent permissible under applicable law, as compensation for purposes of any of the employee benefit plans of the Company or any Subsidiary except as may be determined by the Committee or by the Board or board of directors of
the applicable Subsidiary as permitted by such plans. 
 13.8. Other Plans. Nothing contained in the Plan shall
prevent the Board from adopting other or additional compensation arrangements, subject to shareholder approval if such approval is required; and such arrangements may be either generally applicable or applicable only in specific cases. 

13.9. Severability. The provisions of the Plan shall be deemed severable. If any provision of the Plan shall be held
unlawful or otherwise invalid or unenforceable in whole or in part by a court of competent jurisdiction or by reason of change in a law or regulation, such provision shall (a) be deemed limited to the extent that such court of competent
jurisdiction deems it lawful, valid and/or enforceable and as so limited shall remain in full force and effect, and (b) not affect any other provision of the Plan or part thereof, each of which shall remain in full force and effect. If the
making of any payment or the provision of any other benefit required under the Plan shall be held unlawful or otherwise invalid or unenforceable by a court of competent jurisdiction, such unlawfulness, invalidity or unenforceability shall not
prevent any other payment or benefit from being made or provided under the Plan, and if the making of any payment in full or the provision of any other benefit required under the Plan in full would be unlawful or otherwise invalid or unenforceable,
then such unlawfulness, invalidity or unenforceability shall not prevent such payment or benefit from being made or provided in part, to the extent that it would not be unlawful, invalid or unenforceable, and the maximum payment or benefit that
would not be unlawful, invalid or unenforceable shall be made or provided under the Plan. 
 13.10. Construction.
As used in the Plan, the words “include” and “including,” and variations thereof, shall not be deemed to be terms of limitation, but rather shall be deemed to be followed by the words “without
limitation.” 
 13.11. Unfunded Status of the Plan. The Plan is intended to constitute an
“unfunded” plan providing incentive compensation to a select group of employees and other individuals. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship
between the Company or any Subsidiary, on the one hand, and a Participant or beneficiary thereof, on the other hand. No provision of the Plan or any Award shall require the Company, for the purpose of satisfying any obligations under the Plan,

  
 - 21 -

 
to purchase assets or place any assets in a trust or other entity to which contributions are made or otherwise to segregate any assets, nor shall the Company maintain separate bank accounts,
books, records or other evidence of the existence of a segregated or separately maintained or administered fund for such purposes. Rather, in its sole discretion, the Committee may authorize the creation of trusts or other arrangements to meet the
obligations created under the Plan to deliver the Shares or payments in lieu of or with respect to Awards hereunder; provided, however, that the existence of such trusts or other arrangements is consistent with the unfunded status of the Plan.
Participants shall have no rights under the Plan other than as unsecured general creditors of the Company. 
 13.12.
Governing Law. The Plan and all determinations made and actions taken thereunder, to the extent not otherwise governed by the Code or the laws of the United States, shall be governed by the laws of the British Virgin Islands, without
reference to principles of conflict of laws that would cause the laws of any other jurisdiction to apply, and construed accordingly. 
 13.13. Effective Date of Plan; Termination of Plan. The Plan shall be effective on the date of the approval of the Plan by the holders of the combined voting power of the then outstanding
securities of the Company entitled to vote generally in the election of directors. The Plan shall be null and void and of no effect if the foregoing condition is not fulfilled and in such event each Award shall, notwithstanding any of the preceding
provisions of the Plan, be null and void and of no effect. Awards may be granted under the Plan at any time and from time to time on or prior to the tenth anniversary of the effective date of the Plan, on which date the Plan will expire except as to
Awards then outstanding under the Plan; provided, however, in no event may Incentive Share Option be granted more than ten (10) years after the earlier of (i) the date of the adoption of the Plan by the Board or (ii) the effective
date of the Plan as provided in the first sentence of this Section. Such outstanding Awards shall remain in effect until they have been exercised or terminated, or have expired. 

13.14. Foreign Employees and Consultants. Awards may be granted to Participants who are foreign nationals or employed or
providing services outside the United States, or both, on such terms and conditions different from those applicable to Awards to Employees or Consultants providing services in the United States as may, in the judgment of the Committee, be necessary
or desirable in order to recognize differences in local law or tax policy. The Committee also may impose conditions on the exercise or vesting of Awards in order to minimize the Company’s obligation with respect to tax equalization for
Employees or Consultants on assignments outside their home country. 
 13.15. Compliance with Section 409A of the
Code. Notwithstanding any provision of the Plan to the contrary, this Plan is intended to comply and shall be administered in a manner that is intended to comply with Section 409A of the Code and shall be construed and interpreted in
accordance with such intent. To the extent that an Award or the payment, settlement or deferral thereof is subject to Section 409A of the Code, the Award shall be granted, paid, settled or deferred in a manner that will comply with
Section 409A of the Code, including regulations or other guidance issued with respect thereto, except as otherwise determined by the Committee. Any provision of this Plan that would cause the grant of an Award or the payment, settlement or
deferral thereof to fail to satisfy Section 409A of the Code shall be amended to comply with Section 409A of the Code on a timely basis, which may be made on a retroactive basis, in 

  
 - 22 -

 
accordance with regulations and other guidance issued under Section 409A of the Code. Each Participant is solely responsible and liable for the satisfaction of all taxes and penalties that
may be imposed on or in respect of such Participant in connection with this Plan or any Award (including any taxes or penalties under Section 409A of the Code), and neither the Company nor any Affiliate shall have any obligation to indemnify or
otherwise hold such Participant (or any beneficiary) harmless from any or all of such taxes or penalties. Notwithstanding anything in the Plan to the contrary, if a Participant is a “specified employee” within the meaning of
Section 409A(a)(2)(B)(i) of the Code, no payments or deliveries in respect of any Awards that are “deferred compensation” subject to Section 409A of the Code shall be made to such Participant prior to the date that is six months
after the date of such Participant’s “separation from service” (as defined in Section 409A of the Code) or, if earlier, the Participant’s date of death. Following any applicable six month delay, all such delayed payments or
deliveries will be paid or delivered (without interest) in a single lump sum on the earliest date permitted under Section 409A of the Code that is also a business day. Unless otherwise provided by the Committee, in the event that the timing of
payments in respect of any Award (that would otherwise be considered “deferred compensation” subject to Section 409A of the Code) would be accelerated upon the occurrence of (A) a Change in Control, no such acceleration shall be
permitted unless the event giving rise to the Change in Control satisfies the definition of a change in the ownership or effective control of a corporation, or a change in the ownership of a substantial portion of the assets of a corporation
pursuant to Section 409A of the Code and any Treasury Regulations promulgated thereunder or (B) a disability, no such acceleration shall be permitted unless the disability also satisfies the definition of “Disability” pursuant to
Section 409A of the Code and any Treasury Regulations promulgated thereunder. 
 13.16. No Registration Rights;
No Right to Settle in Cash. The Company has no obligation to register with any governmental body or organization (including, without limitation, the SEC) any of (a) the offer or issuance of any Award, (b) any Shares issuable upon the
exercise of any Award, or (c) the sale of any Shares issued upon exercise of any Award, regardless of whether the Company in fact undertakes to register any of the foregoing. In particular, in the event that any of (x) any offer or
issuance of any Award, (y) any Shares issuable upon exercise of any Award, or (z) the sale of any Shares issued upon exercise of any Award are not registered with any governmental body or organization (including, without limitation, the
SEC), the Company will not under any circumstance be required to settle its obligations, if any, under this Plan in cash. 

13.17. Data Privacy. As a condition of acceptance of an Award, the Participant explicitly and unambiguously consents to the
collection, use and transfer, in electronic or other form, of personal data as described in this Section by and among, as applicable, the Company and its Subsidiaries for the exclusive purpose of implementing, administering and managing the
Participant’s participation in the Plan. The Participant understands that the Company and its Subsidiaries hold certain personal information about the Participant, including the Participant’s name, home address and telephone number, date
of birth, social insurance number or other identification number, salary, nationality, job title, any shares or directorships held in the Company or any Subsidiary, details of all Awards or any other entitlement to Shares awarded, canceled,
exercised, vested, unvested or outstanding in the Participant’s favor, for the purpose of implementing, managing and administering the Plan (the “Data”). The Participant further understands that the Company and its Subsidiaries may
transfer the Data amongst themselves as necessary for the purpose of implementation, management and administration of the Participant’s 

  
 - 23 -

 
participation in the Plan, and that the Company and its Subsidiaries may each further transfer the Data to any third parties assisting the Company in the implementation, management, and
administration of the Plan. The Participant understands that these recipients may be located in the Participant’s country, or elsewhere, and that the recipient’s country may have different data privacy laws and protections than the
Participant’s country. The Participant understands that he or she may request a list with the names and addresses of any potential recipients of the Data by contacting his or her local human resources representative. The Participant, through
participation in the Plan and acceptance of an Award under the Plan, authorizes such recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the
Participant’s participation in the Plan, including any requisite transfer of such Data as may be required to a broker or other third party with whom the Participant may elect to deposit any Shares. The Participant understands that the Data will
be held only as long as is necessary to implement, manage, and administer the Participant’s participation in the Plan. The Participant understands that he or she may, at any time, view the Data, request additional information about the storage
and processing of the Data, require any necessary amendments to the Data, or refuse or withdraw the consents herein in writing, in any case without cost, by contacting his or her local human resources representative. The Participant understands that
refusal or withdrawal of consent may affect the Optionee’s ability to participate in the Plan. For more information on the consequences of refusal to consent or withdrawal of consent, the Optionee understands that he or she may contact his or
her local human resources representative. 
 13.18. Indemnity. To the extent allowable pursuant to
applicable law, each member of the Committee or of the Board and any person to whom the Committee has delegated any of its authority under the Plan shall be indemnified and held harmless by the Company from any loss, cost, liability, or expense that
may be imposed upon or reasonably incurred by such person in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action or failure to act
pursuant to the Plan and against and from any and all amounts paid by him or her in satisfaction of judgment in such action, suit, or proceeding against him or her; provided he or she gives the Company an opportunity, at its own expense, to handle
and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled pursuant to
the Company’s Certificate of Incorporation or By-laws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 

13.19. Captions. The captions in the Plan are for convenience of reference only, and are not intended to narrow, limit or
affect the substance or interpretation of the provisions contained herein. 
 13.20. Fractional Shares. No
fractional Shares or fractional equity securities may be issued under the Plan. Any fractional Shares or equity securities shall be settled in the form of cash (but may be treated as a fractional share prior to any such settlement). 

13.21 Purchase for Investment. Whether or not Awards under the Plan have been registered under applicable securities laws,
including the Securities Act, each person exercising an Option or Share Appreciation Right under the Plan or otherwise acquiring Shares pursuant to 

  
 - 24 -

 
an Award or receiving an Award, may be required by the Committee to give a representation in writing that such person is acquiring such Shares for investment and not with a view to, or for sale
in connection with, the distribution of any part thereof. 
 13.22 No Section 83(b) Elections Without Consent of
Company. No election under Section 83(b) of the Code or under a similar provision of law may be made unless expressly permitted by the Committee in writing prior to the making of such election or pursuant to an Award Agreement. If a
Participant makes such an election in connection with an Award, the Participant shall notify the Company of such election within ten days of filing notice of the election with the Internal Revenue Service or other governmental authority, in addition
to any filing and notification required pursuant to Section 83(b) of the Code or other applicable provision. 

  
 - 25 -EX-10.1

 Exhibit 10.1 
 EXECUTION VERSION 
 DATED: 30 September 2011 

(1) CLAIRE’S EUROPEAN SERVICES LIMITED 
 (2) BEATRICE LAFON 
  

 
 CONTRACT OF
EMPLOYMENT 
  
  

 

 CONTRACT OF EMPLOYMENT 
 This Contract of Employment is made on 30, September 2011 between: 
  

	(1)	Claire’s European Services Limited (the “Company”) whose registered company number is: 6540979 and whose registered office is 4 Bromford
Gate, Bromford Lane, Birmingham, B24 8DW; and 

  

	(2)	Beatrice Lafon of Townland Farm, 80 Front Road, Woodchurch, Kent TN26 3SA (“you”). 

This Contract sets out the terms on which you are employed by the Company. 
 The final section of this Agreement sets out definitions and general provisions that apply throughout this Agreement. 
  

	1	Start Date Conditionality and Continuous Employment 

  

	1.1	 Your employment will begin on 3rd October 2011 (the “Commencement Date”). 

 

	1.2	Your period of continuous employment with the Company will begin on the “Commencement Date”. 

 

	1.3	Your employment under this Agreement is conditional on the following: 

 

	 	(1)	you must have the right to work in the UK and have provided to the Company the documentary evidence of this that we are required legally to have;

  

	 	(2)	you must not be subject to any restrictive covenants or other contractual obligations that you owe to a third party and which would prevent you from working for the
Company. 

 You warrant that the conditions at 1.3(1) and (2) are met. If any of these conditions are not
satisfied then we have the right to terminate your employment without notice within a reasonable period of us finding that out. You confirm that, before this Agreement comes into force, you have disclosed to us in writing details of any previous
criminal convictions which are not spent. 
  

	2	Job Title 

  

	2.1	Your job title is President, Claire’s Europe. You will report to the Chief Executive Officer of Claire’s Stores Inc. (“CEO”) and/or such
other designee as the Company considers appropriate, provided that this is commensurate with your role and status. 

  

	2.2	The Company can make reasonable changes to your job title or the capacity in which you are employed or your duties and responsibilities. This may include you
having to perform new or additional duties and responsibilities or having you work for other Affiliates providing that these additional duties, responsibilities and work are commensurate with your role and status. 

 

	2.3	The Company currently maintains directors’ and officers’ liability insurance and it is the Company’s current intention to maintain such cover for
the full term of your appointment 

  

	3	Duties 

  

	3.1	During your employment you must:- 

  

	 	3.1.1	devote the whole of your time, attention and abilities to the business of the Company; 

 

	 	3.1.2	faithfully and diligently exercise such powers and perform such duties and hold such offices within the Company and/or any Affiliate as may from time to time be
assigned to you; 

  
 1 

	 	3.1.3	comply with all reasonable and lawful directions given to you, including undertaking additional duties from time to time providing that they are commensurate
with your role and status; 

  

	 	3.1.4	comply with all the Company’s rules, regulations, policies and procedures from time to time in force; 

 

	 	3.1.5	use all reasonable endeavours to promote, protect, develop and extend the business(es) of the Company and of the Affiliates 

 

	 	3.1.6	You must immediately give to the Company (in writing if required) all information, explanations and assistance that the Company may request in connection with
your employment or our business or affairs. 

  

	3.2	You must comply with any restrictions that the Company may impose on you or other executives. In particular, you must not without the CEO’s prior written
consent: 

  

	 	3.2.1	Incur any capital expenditure or liability on the Company or its Affiliates’ behalf in excess of the authorisation limits that have been set for you by the
Company and/or its Affiliates. Authorisation limits will be notified to you after commencement of your employment and further notified as soon as reasonably practicable following any change to those limits; and 

 

	 	3.2.2	Enter into on the Company or its Affiliates’ behalf any commitment, contract or arrangement that is not in the normal course of business or outside the
normal scope of your duties or is of an unusual, onerous or long-term nature. 

  

	3.3	You agree that you will hold any office of director, trusteeship or other position of responsibility in any Affiliate or other body as the Company may reasonably
determine. 

  

	4	Place of Work 

  

	4.1	You will be based at the Company’s principal office in the UK from time to time currently, Unit 4, Bromford Gate, Bromford Lane, Birmingham, England but you
are required to work at such other location(s), whether on a temporary or permanent basis, as may from time to time be necessary or desirable for the proper performance of your duties or as otherwise notified to you in writing.

  

	4.2	You are required to travel, in order fully to perform your duties hereunder, both in the UK and on a worldwide basis and you agree that this travel forms part of
your duties. 

  

	4.3	It is not currently anticipated that you will be required to work outside the UK for continuous periods of more than 1 month and no further particulars are
therefore required to be given to you under s.1 Employment Rights Act 1996 at this time. 

  

	4.4	It is a condition of your employment that you must relocate your main, permanent UK residence to within a reasonable daily commuting distance of the
Company’s aforesaid principal office by no later than 31 August 2012. 

  

	4.5	You agree that you will comply with any reasonable request from the Company to relocate your principal place of business if the Company wishes to vary your
normal place of work. Without limitation to the provisions of clause 4.4, in those circumstances, if you also choose to relocate your principal residence, you will be eligible for any financial or other relocation assistance at a level which is
consistent with the assistance offered to other executives of the Company of comparable seniority. 

  

	5	Hours of Work 

  

	5.1	 The Company’s normal hours of work are 8.30 am to 5.30 pm Monday to Friday but you are required to work such hours together with such
further hours (without additional pay) as may be necessary or desirable for you fully to discharge your duties. You are expected to exercise 

  
 2 

	 	
personal professional judgment in determining the number of hours you need to work and you are overall expected to work such hours as enable you to deliver your obligations to the satisfaction of
the CEO and/or such other person as may be notified to you in writing from time to time 

  

	5.2	As an autonomous decision-maker you agree that the limit on average weekly working hours specified in Regulation 4(1) of the Working Time Regulations 1998 (the
“Regulations”) does not apply to your employment hereunder. Nevertheless, to the extent that the Regulations may govern your working hours, you agree that if the Company needs you to do so that you will work in excess of an average 48 hour
working week and that you therefore agree to opt-out of the 48 hour average limit set out in the Regulations. If the law in future permits, you agree that your average working hours should be measured against whatever reference period that the
Company may reasonably determine should apply. 

  

	6	Salary 

  

	6.1	Your gross basic salary is £380,000 per annum (“Base Salary”), accruing on a daily basis. You are not entitled to any director’s
fees or other payment in addition to your Base Salary as a result of any office, trusteeship or position of responsibility that you may hold in the Company or its Affiliates. Your Base Salary will be reviewed by the Company not less than annually
but there is no obligation on the Company to increase it. 

  

	6.2	Base Salary (less any lawful deductions or withholdings including, without limitation, deductions or withholdings on account of United Kingdom income tax or
national insurance contributions (or equivalent income tax or social security contributions under the laws of any relevant jurisdiction)) will be paid monthly in arrears in accordance with the Company’s normal payroll practice.

  

	6.3	You are eligible to participate in the Company’s non-pensionable annual bonus at the sole and absolute discretion of the Company in accordance with the
terms and conditions of such Claire’s bonus plan (if any) as may from time to time be in force and notified to you in writing as applicable to you. You shall be notified of the performance criteria and/or targets applicable for the relevant
financial year within a reasonable period of the start of such financial year. Any such discretionary bonus shall be paid less any lawful deductions or withholdings including, without limitation, deductions or withholdings on account of United
Kingdom income tax or National Insurance contributions (or equivalent income tax or social security contributions under the laws of any relevant jurisdiction). The maximum amount of such annual bonus that may, subject to the terms and conditions
from time to time of the applicable Claire’s bonus plan (if any), be payable to you hereunder shall not exceed 150% of your Base Salary (less applicable withholdings). 

 

	6.4	For the current fiscal year 2011, you will receive a guaranteed minimum bonus of 50% of your Base Salary, pro rated for 4 months (less any lawful deductions or
withholdings including, without limitation, deductions or withholdings on account of United Kingdom income tax or national insurance contributions (or equivalent income tax or social security contributions under the laws of any relevant
jurisdiction)). Any bonus payable for the current fiscal year 2011 (including any guaranteed minimum bonus) will only be payable on the later of (a) the date when other annual bonuses are paid (or would ordinarily have been paid) to employees
under the Company’s annual bonus plan and (b) when you have permanently relocated your residence to a reasonable daily commuting distance of the Company’s Birmingham office; provided that, if you elect to purchase shares of
Claire’s Inc., your guaranteed minimum bonus will be paid and applied as set forth in the collateral contract governing such purchase. 

  
 3 

	6.5	Any discretionary bonus payable under clause 6.3 shall hereafter be referred to as “Bonus”. 

 

	6.6	Receipt of Bonus (including any guaranteed minimum bonus under clause 6.4) shall be conditional on you being In Employment on the relevant payment date for the
purposes of Bonus in respect of the relevant financial year. 

  

	6.7	The expression “In Employment” in clause 6.6 means that you must be employed by the Company in the role of President, Claire’s Europe on
the relevant payment date for the purposes of Bonus in respect of the relevant fiscal year and at that date you (i) have not given the Company notice of termination of your employment (for any reason); and (ii) have not been given notice
of the termination of your employment by the Company by reason of gross misconduct or otherwise pursuant to clause 14.1.2. For the avoidance of doubt, you will be regarded as ‘In Employment’ and so eligible to receive your bonus if you are
employed by the Company in the role of President, Claire’s Europe on the last day of the fiscal year to which the bonus relates where after that date you have been given notice of the termination of your employment by the Company but it is not
by reason of gross misconduct or otherwise pursuant to clause 14.1.2. 

  

	6.8	Notwithstanding clause 6.6 and 6.7, if you are long term absent from work (including but not limited to by reason of sabbatical or other agreed long term
absence) for a period of ten months or more in the relevant fiscal year you will not be eligible to receive a bonus. In the case of any such absence for less than ten months of the relevant fiscal year, you will be eligible to receive a bonus but
reduced on a pro-rata basis to reflect the period of your long-term absence. 

  

	6.9	If as of the relevant payroll payment date for the purpose of Bonus in respect of the relevant fiscal year, you are reasonably suspected of any of the grounds of
summary termination described in clause 14.1.2, the Company may withhold payment of the Bonus pending the resolution of any disciplinary investigation and/or disciplinary proceedings provided that the period of investigation does not exceed 8 weeks
(other than in circumstances where any delay in investigation is attributable to you). If the outcome of such investigation/proceedings is that the Company gives you summary notice of the termination of your employment in accordance with clause
14.1.2 then no Bonus will be payable. 

  

	6.10	Receipt of Bonus in any one year will not entitle you to Bonus in any subsequent year. Save in relation to the guaranteed minimum bonus for the current financial
year, bonus does not accrue pro rata. 

  

	6.11	At any time during your employment, or upon its termination, the Company shall be entitled to (and you agree that it may) deduct from Base Salary or any other
payment due to you in respect of your employment (including but not limited to your final salary payment and Bonus) any monies due from you to the Company or an Affiliate. For the avoidance of doubt this includes the deduction of any overpayment of
remuneration or other payments, whether made by mistake or through misrepresentation or for any other reason or any monies due from you to the Company or its Affiliates. 

 

	7	Holidays 

  

	7.1	The holiday year runs from 1 January to 31 December (inclusive). 

 

	7.2	You are entitled to 30 days’ paid holiday in each complete holiday year of employment by the company (“Holiday Entitlement”), accruing on a
daily basis. This will be pro-rated according to your period of employment by the Company in such year, in the year of joining and leaving the Company and the resulting entitlement will be rounded up to the nearest whole day.

  

	7.3	You are required to exercise professional judgment with regard to the timing of your holidays, having obtained any necessary approval from the Company in
advance. 

  

	7.4	You cannot carry forward Holiday Entitlement from one holiday year to the next. 

  
 4 

	7.5	Additionally, you are entitled to English bank and public holidays, with pay. 

 

	7.6	On termination of employment you will be paid in respect of any Holiday Entitlement which has then accrued in respect of your final holiday year of employment
but which has not been taken at the date of the termination of your employment. The Company may require you to take any unused Holiday Entitlement during your notice period. If you have taken holiday in excess of your Holiday Entitlement at your
termination date, the Company may deduct from your final salary payment and/or any other amounts it owes to you an amount that is equal to one two hundred and sixtieth of your net Base Salary payable under clause 6.1 multiplied by the number of
excess days of holiday taken. 

  

	8	Other Benefits 

  

	8.1	Expenses 

 The Company
will reimburse you for all reasonable expenses (including any value added tax or equivalent chargeable on those expenses) incurred by you in the performance of your duties under this Contract of Employment, provided that the expenses are incurred
with the approval of the Company; claimed by you in accordance with the Company’s expenses procedure and you produce such evidence of expenditure as the Company may reasonably require. 

 

	8.2	Company Car or Company Car Allowance 

  

	 	8.2.1	Subject as hereinafter provided and provided that you hold and maintain a current driving licence valid in the UK, you shall have the choice of either:

 a) a lease hire car in the Company’s name (“Car”) of a make and model specified by the Company
to reflect your status and seniority. The Company shall bear the cost of the road tax, insurance and maintenance of the Car, up to a maximum annual lease hire cost (inclusive of VAT) of £15,000 per annum; or 

b) a car allowance in the sum of £15,000 per annum payable with and in the same manner as Base Salary. The car allowance shall
not be treated as Base Salary and shall not be pensionable. Using the car allowance, you shall be responsible for the purchase or lease hire of a car of a suitable make and model given your status in the Company and shall be responsible for road
tax, insurance and maintenance costs. 
  

	 	8.2.2	Regardless of your choice of either option a) or b) above (which choice shall be made only once by you and is then irrevocable), the Company shall reimburse you
for the cost of petrol for business and private mileage, subject to its normal reimbursement procedures. 

  

	8.3	Pension Scheme 

 There is
currently no Company pension scheme applicable to you and the Company shall not make any contribution towards any personal pension scheme that you may maintain. 
  

	8.4	Private Medical Insurance 

  

	 	8.4.1	You and your life partner and dependent children shall be eligible to participate in the Company’s private medical insurance scheme, subject to:

  

	 	(i)	the terms of the scheme, as amended from time to time; 

  

	 	(ii)	the rules or insurance policy of the relevant insurance provider, as amended from time to time; and 

 

	 	(iii)	your each satisfying the normal underwriting requirements of the relevant insurance provider of the private medical insurance scheme and the premium being at normal and
reasonable market rates. 

  
 5 

	 	8.4.2	Full details of the Company’s private medical insurance scheme are available from the Company. 

 

	 	8.4.3	If the insurance provider refuses for any reason to provide private medical insurance benefit to you or your life partner or your dependent children or any one
of them (as applicable) the Company shall not be liable to provide you or your life partner or your dependent children or any one of them (as applicable) with any replacement benefit of the same or similar kind or to pay any compensation in lieu of
such benefit. 

  

	 	8.4.4	The Company in its sole and absolute discretion reserves the right to discontinue, vary or amend any scheme (including the level of cover provided) at any time,
without compensation, on reasonable notice to you provided that this right is equally applied to other executives in the same class as you enjoying this benefit. 

 

	8.5	Life Assurance Cover 

  

	 	8.5.1	You are eligible to participate in the Company’s life assurance scheme (which scheme shall provide for a payment equal to 4 times Base Salary) subject to:

  

	 	(i)	the terms of the scheme, as amended from time to time; 

  

	 	(ii)	the rules or assurance policy of the relevant assurance provider, as amended from time to time; and 

 

	 	(iii)	your satisfying the normal underwriting requirements of the relevant assurance provider of the Company’s life assurance scheme and the premium being at normal and
reasonable market rates. 

  

	 	8.5.2	Full details of the Company’s life assurance scheme are available from the Company. 

 

	 	8.5.3	If the assurance provider refuses for any reason to provide life assurance scheme benefit in respect of you the Company shall not be liable to provide you any
replacement benefit of the same or similar kind or to pay any compensation in lieu of such benefit. 

  

	 	8.5.4	The Company in its sole and absolute discretion reserves the right to discontinue, vary or amend any scheme (including the level of cover provided) at any time,
without compensation, on reasonable notice to you provided that this right is equally applied to other executives in the same class as you enjoying this benefit. 

 

	8.6	Permanent Health Insurance Cover 

 The
Company agrees that it will pay to you such amount as (after deduction of applicable tax and national insurance) is equivalent to the price payable by you at normal market rates for a personal permanent health insurance policy (the terms of which
policy and level of cover provided are to be agreed between you and the Company as representing normal terms for an executive of comparable status to you) provided that you use the said payment to purchase that policy. 

 

	8.7	Travel Insurance 

 The Company agrees that
it will pay to you such amount as (after deduction of applicable tax and national insurance) is equivalent to the price payable by you at normal market rates for a personal worldwide travel insurance policy for business travel (the terms of which
policy and level of cover provided are to be agreed between you 

  
 6 

 and the Company as representing normal terms for an executive of comparable status to you) provided that you
use the said payment to purchase that policy. The Company may however elect to provide world-wide travel insurance to you under its own corporate travel insurance policy in which case the provisions of this clause shall not apply to you. 

 

	9	Sickness and Injury 

  

	9.1	If you are absent from work due to sickness or injury, you must inform the Company as soon as possible and ordinarily no later than 8.00am on the first day of
absence. 

  

	9.2	If you are away from work for seven calendar days or less, you must complete a self-certification form. For absences of more than seven calendar days you must
provide a medical certificate from your doctor. Further medical certificates will be required for the remainder of the period of your absence. 

  

	9.3	The Company reserves the right, at any time, to require you to undergo a medical examination at the Company’s expense. You agree that the medical adviser
may disclose and discuss the results of the examination with the Company and, subject to your statutory rights, you further agree that you will provide, at the Company’s request, a copy of any report produced by your doctor on any medical
condition, illness or injury relevant to your continued employment. 

  

	9.4	Without prejudice to its right to terminate your employment at any time, you are eligible to receive discretionary company sick pay, the maximum amount of which
is set out in the non-contractual Company Sick Pay scheme applicable to you. Details of this can be obtained from HR. Any payment of company sick pay in these circumstances is inclusive of statutory sick pay. 

 

	9.5	Any payments to which you are entitled under any social security or national insurance legislation or equivalent legislation in the relevant jurisdiction,
whether or not claimed, may be deducted from any payments to you under clause 9.4, as well as all compensation received by you from a third party in relation to an absence from work due to sickness or injury. 

 

	10	Restrictions on other Activities 

  

	10.1	During your employment you shall not (except with the prior written consent of the CEO and/or such other person as may be notified to you in writing from time to
time) accept any appointment to any office in relation to any body (whether corporate or not) or be directly or indirectly employed, engaged, concerned or interested in any other business or undertaking whatsoever, save for the business(es) of the
Company and/or any Affiliate or on behalf of such company and save for (i) holding a non-executive directorship in the two corporations disclosed to the Company that you currently own that are not active, and which will remain not active during
your employment and (ii) the External Interests defined in clause 10.3 below which have previously been approved in writing by the CEO. 

  

	10.2	Clause 10.1 shall not prohibit the holding (directly or through nominees), for bona fide investment purposes only, of investments in any public company
listed on any Recognised Investment Exchange, provided that not more than 1 per cent of the issued shares or other securities of any class of any one company shall be so held (“a Permitted Investment”). Clause 10.1 shall
further not prohibit the holding (directly or through nominees), for bona fide investment purposes only, of investments in any privately-owned company if the CEO has consented in writing to the investment in question after you have fully disclosed
to the CEO in writing the circumstances, amount and purpose of the investment. 

  

	10.3	 For the avoidance of doubt, clause 10.1 applies to non-executive directorships, offices, appointments, expert consultancies, and other
comparable external interests (‘External Interests’). You may not hold External Interests without the CEO’s prior written consent. This consent may be refused absolutely or granted on such conditions as the CEO considers to be
reasonable at any time. Those conditions may be varied subsequently or any consent 

  
 7 

	 	
withdrawn in the CEO’s absolute discretion. For your guidance but without limitation to the CEO’s discretion, (a) no consent will be granted for External Interests in the first six
to twelve months following the commencement of your employment, the precise duration depending upon the performance of the European Division and (b) any consent which is later granted will be subject to a condition about the amount of time
which the External Interest may occupy, ordinarily an aggregate maximum of 4 to 6 days of your time per annum (regardless of the number of individual External Interests involved). 

 

	10.4	At all times you are required to comply with relevant Company policies and mandatory laws and/or regulations concerning the holding of and dealing with
securities. If, with the prior written consent of the CEO and/or such other person as may be notified to you in writing from time to time, you accept any other appointment, you must keep them accurately informed of the amount of time you spend
working under that appointment. Consent to such appointment may be withdrawn on 1 month’s notice if the CEO and/or such other person as may be notified to you in writing from time to time (in their reasonable discretion) considers such
appointment(s) has or may affect your performance of duties under this Contract of Employment. 

  

	10.5	At all times during your employment (including any period of suspension or while on garden leave) you are subject to a duty of goodwill, trust and confidence,
exclusive service and good faith towards us. These duties in particular require that you must not: 

 10.5.1
compete with the Company and/or its Affiliates; 
 10.5.2 make preparations (during hours when you are required to
work) to compete with the Company and/or its Affiliates after your employment has terminated; 
 10.5.3 solicit business
from customers or potential customers of the Company and/or its Affiliates (except on behalf of the Company and/or its Affiliates); 
 10.5.4 encourage employees to leave employment with the Company and/or its Affiliates against the Company and/or its Affiliates wishes; 

10.5.5 copy information relating to the Company and/or its Affiliates for a purpose other than for the benefit of the Company
and/or its Affiliates. 
  

	10.6	As a senior executive, you must notify the Company immediately if you become aware of or suspect any wrongdoing on your part or the part of the Company’s
and/or its Affiliates’ staff or contractors or any acts or omissions of third parties which might reasonably be expected to be harmful to the Company and/or its Affiliates. 

 

	10.7	You are not entitled to receive any discount, rebate or commission from any third party in respect of business carried out by the Group (whether carried out by
you or not) and you must immediately disclose to and account to us for any such benefit if you do receive it. 

  

	10.8	You must comply with our the Company’s and its Affiliates’ Code of Business Conduct, the Company’s UK anti-bribery policy and its gift policy at
all times, copies of which can be obtained from HR. 

  

	10.9	You confirm that you have informed the Company (and will continue to keep the Company informed) of any conflict that may exist between your (or your immediate
family’s) interests and those of the Company and/or its Affiliates. 

  

	10.10	You must comply with any relevant rules, regulations or procedures applicable to the Company and/or its Affiliates if the Company and/or any of its Affiliates
becomes listed on a Recognised Investment Exchange. 

  
 8 

	11	Confidential Information 

  

	11.1	You agree that you will not use, divulge or disclose to any person, firm, company or organisation whatsoever or whomsoever (except as required by law or to carry
out your employment duties) any trade secrets or other Confidential Information as defined in this Agreement. Disclosure includes publication of Confidential Information to any third party verbally, in writing or by electronic means including social
networking sites (such as Face Book, Twitter, My Space, LinkedIn), the internet (such as blogs or personal websites), by text or by email. 

  

	11.2	This restriction applies during the course of your employment and will continue to apply after your employment ends without limit in time but will not apply to
information which becomes public (except where that results from unauthorised disclosure by you or on your behalf). This obligation of confidentiality is without prejudice to any common law or equitable duty of confidentiality which you may owe to
the Company and/or its Affiliates (including any duty of confidentiality which you may owe under US federal or state law). 

  

	11.3	For the purpose of this contract, 

  

	 	11.3.1	“Confidential Information” shall mean any and all material, information, data, ideas, inventions, formulae, patterns, compilations, programs, devices,
methods, techniques, processes, know how, plans (marketing, business, strategic, technical or otherwise), arrangements, pricing and other data of or relating to any of the Company and/or an Affiliate and/or to customers and/or vendors and/or
suppliers of any of them and/or to the business(es) of any of the foregoing that is confidential, proprietary or trade secret (A) by its nature, or (B) based on how it is treated or designated by the Company and/or Affiliate, or
(C) because the disclosure of the same would have a material adverse effect on the businesses or planned businesses of the Company and/or an Affiliate and/or (D) as a matter of law. 

 

	 	11.3.2	Confidential Information for the purposes of this Agreement shall include, without limitation, all of the following information (including without limitation,
compilations or collections of information or data) relating to any of the Company and/or an Affiliate and/or to the customers, vendors and/or suppliers of any of them and/or to the business(es) of any of the foregoing including (a) the
identity of the Company’s and/or an Affiliate’s suppliers and the terms of trading agreed with them, including prices, payment terms and discounts negotiated; (b) the Company’s and/or an Affiliate’s plans for new business
initiatives and expansion including details of potential new store locations and rental terms and plans in relation to e-commerce; (c) the personal addresses and contact details of the Company’s and/or an Affiliate’s staff together
with their salaries and remuneration packages and details of the Company’s and/or an Affiliate’s assessment of their skills and abilities; (d) the Company’s and/or an Affiliate’s 

 

	 	11.3.3	projections of fashion trends and details of future merchandise to be stocked; (e) the Company’s and/or an Affiliate’s financial information,
results and forecasts (save to the extent these are included in published audited accounts); and (f) the Company’s and/or an Affiliate’s investors, shareholders and stakeholders and the Company’s and/or an Affiliate’s plans
for any flotation, listing, sale, acquisition, merger, financing, borrowing or comparable activity. 

  

	11.4	You must not at any time make any untrue or misleading statement about the Company or its Affiliates, including its and their officers and employees.

  

	12	Protected Disclosures 

Nothing in clause 11 is intended to exclude, restrict or limit in any way any right you may have to make a protected disclosure under the
Public Interest Disclosure Act 1998. The Company has a procedure which you should use in the event of wishing to make a protected disclosure. 

  
 9 

	13	Intellectual Property 

  

	13.1	The parties foresee that you may make inventions or create other intellectual property in the course of your duties and you agree that in this respect you have a
special responsibility to further the interests of the Company and all Affiliates. 

  

	13.2	Any discovery, development, invention, or improvement, design, process, formula, method, data base, information, computer program, copyright work, semi conductor
or other topography, trade mark or trade name or get-up made, created, devised, developed or discovered by you (whether by yourself or with others) during the continuance of your employment (whether capable of being patented or registered or not and
whether or not made or discovered in the course of your employment) connected with or in anyway affecting or relating to the business of the Company or any Affiliate or capable of being used or adapted for use therein or in connection therewith
(“Works”) shall forthwith be disclosed to the Company and shall (subject to sections 39 to 43 of the Patents Act 1977) belong to and be the absolute property of the Company or such Affiliate as the Company may direct.

  

	13.3	If and whenever required so to do by the Company, you shall at the expense of the Company or such Affiliate as the Company may direct: 

 

	 	13.3.1	apply or join with the Company or such Affiliate in applying for letters patent, registered design, design right, trade mark or other protection or registration
in the United Kingdom and/or in any other part of the world for any Works as the Company shall direct; and 

  

	 	13.3.2	execute all instruments and do all things necessary for vesting such Works and/or patents, registered designs, design rights, trade marks or other protection or
registration, when obtained, and all right, title and interest to and in the same absolutely and as sole beneficial owner in the Company or such Affiliate or in such other person as the Company may specify; and 

 

	 	13.3.3	sign and execute all such documents and do all such acts as the Company may reasonably require in connection with any proceedings in respect of such applications
and any publication or application for revocation of such patents, registered designs, design rights, trade marks or other protection. 

  

	13.4	You hereby irrevocably and unconditionally waive all rights under Chapter IV of the Copyright, Designs and Patents Act 1988 and any other moral rights which you
may have in the Works or in connection with the authorship of any existing or future copyright Work, in whatever part of the world such rights may be enforceable, including, without limitation: 

 

	 	13.4.1	the right conferred by section 77 of that Act to be identified as the author of any Work; and 

 

	 	13.4.2	the right conferred by section 80 of that Act not to have any Work subjected to derogatory treatment. 

 

	13.5	Nothing in this clause 13 shall be construed as restricting your rights or those of the Company and/or its Affiliates under sections 39 to 43 of the Patents Act
1977. 

  

	14	Termination of Employment 

  

	14.1	Your employment shall be subject to termination: 

  

	 	14.1.1	at any time by either party giving to the other 12 months’ written notice; or 

 

	 	14.1.2	by the Company giving to you summary notice and terminating your employment with immediate effect and without any payment, if you: 

  
 10 

	 	(i)	commit any serious breach of any of your obligations under this contract or refuse or neglect, following a warning in writing, to comply with any reasonable and lawful
direction of the Company; or 

  

	 	(ii)	act in a manner which in the reasonable opinion of the Company brings or is likely to bring yourself or the Company or an Affiliate or any of its or their officers or
employees into disrepute; or 

  

	 	(iii)	become bankrupt or make any arrangement with or for the benefit of your creditors or are unable to pay your debts as and when they fall due; or

  

	 	(iv)	are guilty of gross misconduct or gross negligence or breach any of the Company’s or an Affiliate’s disciplinary or house rules in respect of which the
penalty for breach is or may be summary dismissal; or 

  

	 	(v)	are prohibited by law from being a director; or 

  

	 	(vi)	are guilty of any material breach of any code of conduct, rule or regulation of the Company which have previously been drawn to your attention or fail or cease to be
registered (where such registration is, in the opinion of the Company, required for the performance of your duties) by any regulatory body in the United Kingdom or elsewhere; or 

 

	 	(vii)	commit or are convicted of a criminal offence other than an offence which does not in the opinion of the Company affect your position under this Agreement. For the
avoidance of doubt, commission or conviction of a road traffic offence which is not capable of being punishable by imprisonment shall not be treated as affecting your position under this Agreement; or 

 

	 	(viii)	cease to be eligible to work in the United Kingdom under Section 8 of the Immigration, Asylum and Nationality Act 2006; or 

 

	 	(ix)	you commit an offence under any statutory enactment or regulation relating to insider dealing (whether that enactment was passed in the UK or USA); or

  

	 	(x)	you are guilty of a deliberate act of discrimination, harassment or victimisation on grounds of age, disability, gender reassignment, marriage or civil partnership,
race, religion or belief, sex or sexual orientation. 

 Any delay by the Company in exercising such right of
summary termination shall not constitute a waiver thereof. 
  

	14.2	The Company reserves the right to suspend you from employment on Base Salary and benefits for whatever period the Company considers while investigating any
misconduct or poor performance or in any circumstances where the termination of your employment is being contemplated provided that the period of suspension shall not exceed 8 weeks unless the delay in investigation is attributable to you.

  

	14.3	This clause applies if you are suspended under clause 14.2 in circumstances where it is alleged that you have carried out gross misconduct involving serious
theft, fraud or dishonesty occasioning material loss to the Company and/or its Affiliates, You will continue to be paid your Base Salary and benefits during that period of suspension but this payment will be treated as an advance of your
remuneration which may be repayable in the circumstances following. If as a result of disciplinary proceedings, the allegations against you are found to be substantiated and you are summarily and lawfully dismissed, the advance of remuneration which
was paid to you during the period of suspension shall immediately be repayable (up to a maximum of 8 weeks’ remuneration) on demand by the Company. Without prejudice to any other rights which the Company may have, the Company shall further be
entitled to set-off and/or deduct that advance from any monies otherwise due and payable to you by the Company. 

  
 11 

	14.4	Nothing in this Agreement shall prevent us from terminating your employment on grounds of ill-health even though the termination of your employment may affect
your entitlement to any life assurance. 

  

	14.5	You will immediately on termination of your employment or at any other time on request of the Company, resign immediately without claim for compensation as a
director of the Company or any Affiliate or from any trusteeship, office or appointment held by you on behalf of the Company or any of its Affiliates. 

  

	14.6	Nothing in this Agreement shall give rise to any right to compensation for loss of any rights or benefits under any share option, long-term incentive plan or
equivalent scheme (including without limitation stock options and/or any diminution in value or losses arising out of loss of options) in which you may be eligible to participate save as otherwise provided in the relevant scheme rules. Any such
rules do not form part of this Agreement. 

  

	15	Garden Leave 

  

	15.1	At any time during the whole or any part of a notice period and whether given by you or the Company, the Company may require you to serve a period of garden
leave (“Garden Leave Period”). During any such period you shall remain an employee of the Company and bound by the terms of this Contract (save in respect of the obligation to work, unless otherwise determined by the Company), and
the Company may require you to comply with all or any of the following: 

  

	 	15.1.1	not to enter or attend any premises of the Company or an Affiliate; 

 

	 	15.1.2	not to contact or have any communication with directors, employees, customers, suppliers, agents or representatives of the Company; 

 

	 	15.1.3	not to carry out all or some of your duties under this Contract of Employment, or be employed or engaged in the conduct of any activity for the Company, an
Affiliate or any third party of a business nature; 

  

	 	15.1.4	to carry out alternative duties, to work from home and/or carry out exceptional duties or special projects outside the normal scope of your duties and
responsibilities provided that these duties or projects are commensurate with your role and status; 

  

	 	15.1.5	(except during any periods taken as holiday in the usual way), ensure that the Company knows how you can be contacted during each working day; 

 

	 	15.1.6	to resign immediately from any offices or trusteeships which you may hold with the Company or the Group; 

 

	 	15.1.7	to return to us all documents, mobile phones, BlackBerry, laptop, computers, computer disks and other property (including summaries, extracts or copies)
belonging to the Group or to its or their customers or suppliers (and to provide any passwords necessary to access these); 

  

	 	15.1.8	to take all or part of any outstanding holiday during your garden leave. 

 

	15.2	During Garden Leave Period the Company shall be under no obligation to provide any work to, or vest any powers in you and you shall have no right to perform any
services for the Company or any Affiliate. 

  

	15.3	Save as otherwise stated in this Contract of Employment, you will be entitled to receive your Base Salary and all contractual benefits during Garden Leave
Period. Any eligibility to receive bonus during the Garden Leave Period will be as set out in clause 6.7. All duties of your employment (express and implied) will continue (save for the obligation to work, unless otherwise required by the Company),
including your obligations of confidentiality, and your fiduciary duties and duties of fidelity, good faith and exclusive service. 

  
 12 

	16	Restrictions after Termination of Employment 

  

	16.1	In this clause 16: 

“Competing Business” means any business that owns or operates a speciality retail chain that derives 15% or more of its
revenue for the preceding 12 months from the sale of costume jewellery and fashion accessories targeted at girls and women in the Company’s or any Affiliate’s target market. For the purposes of this definition only, accessories shall not
be deemed to include footwear because of the low penetration of footwear in the European business; and 
 “Relevant
Date” means the date on which your employment with the Company terminates or, if earlier, the date on which you commence a Garden Leave Period; and 
 “Restricted Period” means the period of one year commencing on the Relevant Date. 
 “Restricted Area” means (i) England, (ii) Scotland, (iii) Wales, (iv) Northern Ireland, (v) Eire, (vi) France, (vii) Spain, (viii) Germany,
(ix) Austria, (x) Belgium, (xi) Netherlands, (xii) Portugal, (xiii) Czech Republic, (xiv) Poland, (xv) Hungary, (xvi) Luxembourg, (xvii) Switzerland or (xviii) Russia (xix) Canada (xx) USA
and (xxi) any other country in the world where on the Relevant Date the Company and/or an Affiliate conducts business and/or you were materially engaged on behalf the Company and/or an Affiliate pursuant to your obligations under this
Agreement. 
  

	16.2	To protect the Company’s and its Affiliate(s)’ legitimate business interests, you agree that you will be bound by each of the following covenants that
you will not directly or indirectly and whether on your own account or on account of any other person: 

  

	 	16.2.1	during the Restricted Period and within the Restricted Area, be employed or engaged in or provide advice or services to a company or business where such
employment, engagement, advice and/or services would require you to perform activities the same or substantially similar to the activities you carried out to a material extent for the Company or any Affiliate during the 12 months prior to the
Relevant Date and the company or business is (or once operational will be) or intends to be a Competing Business at the Relevant Date; 

  

	 	16.2.2	during the Restricted Period and within the Restricted Area, be a director or shadow director of or investor in any company engaged in, or otherwise be concerned
or interested in, any business which is (or which once operational will be) or intends to be a Competing Business at the Relevant Date, save that you may hold a Permitted Investment in such a business provided however, that in the case
of investments otherwise permitted under this Agreement, you shall not be permitted, directly or indirectly, to participate in, or attempt to influence, the management, direction or policies of (other than through the exercise of any voting rights
held by you in connection with such investment), or lend your name in connection with any such investment; 

  

	 	16.2.3	during the Restricted Period for a Competing Business and within the Restricted Area you will not canvass or solicit in competition with the Company or any
Affiliate the custom or business of any person who at any time during the 12 months prior to the Relevant Date was a vendor or supplier of, or in the habit of dealing with, the Company or (as the case may be) any Affiliate and in respect of whom or
which you had access to Confidential Information or with whose custom or business you or employees reporting directly to you were concerned to a material extent at any time during such 12 month period; 

 

	 	16.2.4	 during the Restricted Period for a Competing Business and within the Restricted Area you will not deal with or otherwise accept in competition
with the Company or any Affiliate the custom or business of any person who at any time during the 12 months prior to the Relevant Date was a vendor or supplier of, or in the habit of

  
 13 

	 	
dealing with the Company or (as the case may be) any of its Affiliates and in respect of whom or which you had access to Confidential Information or with whose custom or business you or employees
reporting directly to you were materially concerned at any time during such 12 month period; 

  

	 	16.2.5	during the Restricted Period for a Competing Business and within the Restricted Area you will not (either on your own behalf or for or with any other person
whomsoever or whatsoever, whether directly or indirectly) canvass or solicit in competition with the Company or any Affiliate the custom or business of any person who was negotiating with the Company or any Affiliate for the supply of goods or
services (whether as a potential vendor, supplier, agent, distributor or licensee or other business contact of the Company or (as the case may be) any of its Affiliates) during the 12 months prior to the Relevant Date or who or which was a vendor,
supplier, agent, distributor licensee or other business contact of the Company or (as the case may be) any of its Affiliates and to whom or which you had made a presentation or a pitch for business on behalf of the Company or (as the case may be)
any of its Affiliates and in either case in respect of whom or which you had access to Confidential Information or with whose custom or business you or employees reporting directly to you were materially concerned at any time during such 12 month
period; 

  

	 	16.2.6	during the Restricted Period for a Competing Business and within the Restricted Area you will not (either on your own behalf or for or with any other person
whomsoever or whatsoever, whether directly or indirectly) deal with or otherwise accept in competition with the Company or any Affiliate the custom of any person or entity who was negotiating with the Company or any Affiliate for the supply of goods
or services (and whether as a potential vendor, supplier, agent, distributor, licensee or other business contact of the Company or (as the case may be) any of its Affiliates) during the 12 months prior to the Relevant Date or who or which was a
potential vendor, supplier, agent, distributor, licensee or other business contact of the Company or (as the case may be) any of its Affiliates and to whom or which you had made a presentation or a pitch for business on behalf of the Company or any
Affiliate and in either case, in respect of whom or which you had access to Confidential Information or with whose potential custom or business you or employees reporting directly to you were materially concerned at any time during such 12 month
period; and 

  

	 	16.2.7	during the Restricted Period for a Competing Business and within the Restricted Area you will not (either on your own behalf or for or with any other person
whomsoever or whatsoever, whether directly or indirectly) entice or try to entice away from the Company or any Affiliate any person who was an employee, director, officer, agent, consultant or associate of the Company or any Affiliate at the
Relevant Date and who had been an employee, director, officer, agent, consultant or associate at any time during the 12 months prior to the Relevant Date and with whom you had worked closely at any time during that period or who possesses
Confidential Information. 

  

	16.3	For the purposes of the restrictions contained in this clause 16, acts done outside the Restricted Area for the purposes of a business carried on or otherwise
conducted or once operational intended to be carried on or otherwise conducted within the Restricted Area are regarded as having been done within the Restricted Area. 

 

	16.4	The duration of the restrictive covenants in clause 16 shall be reduced by an equal amount to the time which you may be placed on garden leave by us under clause
15.1.3 where you are required to carry out no duties. 

  
 14 

	16.5	The restrictions in this clause 16 (on which you acknowledge you have had the opportunity to take independent legal advice) are separate and severable
restrictions and are considered by the parties to be reasonable in all the circumstances. If any covenant is found to be invalid this will not affect the validity or enforceability of any of the other covenants. 

 

	16.6	Following the Relevant Date, you will not represent yourself as being in any way connected with the businesses of the Company or of any Affiliate other than as a
former employee or director (if applicable). In particular, but without limitation, you agree that you will not at any time during the course of your employment or after the Relevant Date engage in any trade or business or be associated with any
person, firm or company engaged in any trade or business using the name(s) “Claire’s Accessories”, “Claire’s”, “Icing” or incorporating any or all of those words. 

 

	16.7	Any benefit given or deemed to be given by you to the Company or to any Affiliate under the terms of clause 16 is received and held on trust by the Company for
the relevant entity. You will enter into appropriate restrictive covenants directly with any Affiliate of the Company if asked to do so by the Company. 

  

	16.8	If you receive an offer of employment or engagement during your employment with the Company, or prior to the expiry of the last of the covenants in this clause
16, you shall give the person (whether individual or corporate) making the offer, a copy of this clause 16 and of clauses 11 and 13 and inform the Company of the role and of the identity of the offeror as soon as possible after accepting the offer.
If you fail to do so, the Company reserves the right to treat the matter as gross misconduct and shall itself provide details to the offeror. 

  

	17	Miscellaneous 

  

	17.1	For all purposes in this Contract of Employment, “Affiliate” shall mean any entity controlling the Company, controlled by the Company or any entity
under common control with the Company. 

  

	17.2	You shall at all times observe and comply with any policy and/or protocol of the Company governing communication with any press and you shall always consult with
the CEO and/or General Counsel of Claire’s Stores Inc, prior to making, communicating or publishing any statement, announcement or other communication to any print, broadcast and/or online media entity whatsoever or whomsoever.

  

	18	Obligations on Termination and otherwise 

  

	18.1	When your employment ends howsoever, or at any other time during your employment if you are requested to do so, you must: 

 

	 	18.1.1	on demand return to the Company (i) all property belonging or relating to the Company or any Affiliate or to the business(es) of any of them in good
condition including but not limited to your security pass, mobile telephone, blackberry, computer, laptop and any other mobile communication device and (ii) all Confidential Information and copies thereof (in whatsoever format or medium),
documents and copies of documents and all other material held in whatever medium prepared or received or accessed by you during your employment including but not limited all documents, copies and other material that relate to the Company or to any
Affiliate or to any of their respective businesses or affairs, or to any actual or potential customers, vendors, suppliers or licensors of the Company or any Affiliate. For the avoidance of all doubt no employee is permitted to wipe clean a
Company-provided computer or laptop nor to delete data or text messages from a mobile telephone or BlackBerry prior to its return to the Company (except where that data or those text messages would ordinarily be deleted in the normal course of your
usage of that telephone, BlackBerry, Company-provided computer or laptop); 

  
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	 	18.1.2	immediately resign, without any claim for compensation, from any directorships or other offices in the Company or any Affiliate and from any position which you
hold as a trustee by reason of your employment hereunder; 

  

	 	18.1.3	transfer (without payment) to the Company or as it may direct all shares or other securities held by you in the Company or any Affiliate as a nominee or trustee
for the Company or Affiliate, and deliver to the Company the related certificates; 

  

	 	18.1.4	if so required by the Company’s IT department, irretrievably delete any information relating to the business of the Company or an Affiliate stored in any
media including but not limited to any magnetic or optical disk or memory and all matter derived from such sources which is in your possession or under your control outside the Company’s premises; and 

 

	 	18.1.5	provide a signed statement that you have complied fully with your obligations under this clause 18. 

 

	19	Disciplinary Policy and Grievance Policy 

 You must comply with the Company’s disciplinary rules. These policies do not form part of your contract of employment. The Company’s Disciplinary and Grievance Policies (as may be amended from
time to time) are available from HR on commencement of your employment. 
  

	20	Data Protection Act 1998 

  

	20.1	For the purposes of the Data Protection Act 1998 (the “Act”) you give your consent to the holding, processing, disclosure and transfer outside
the EEA of your personal data (including sensitive personal data within the meaning of the Act) for all purposes relating to the performance of this Contract of Employment including, but not limited to: 

 

	 	20.1.1	administering and maintaining personnel records; 

  

	 	20.1.2	paying and reviewing salary and other remuneration and benefits; 

  

	 	20.1.3	providing and administering benefits (including if relevant, pension, life assurance, permanent health insurance and medical insurance);

  

	 	20.1.4	undertaking performance appraisals and reviews; 

  

	 	20.1.5	maintaining sickness and other absence records; 

  

	 	20.1.6	taking decisions as to your fitness for work; 

  

	 	20.1.7	providing references and information to future employers, and if necessary, governmental and quasi-governmental bodies for social security and other purposes,
Her Majesty’s Revenue & Customs and the Contributions Agency; 

  

	 	20.1.8	equal opportunities monitoring; 

  

	 	20.1.9	transferring information concerning you to a country or territory outside the European Economic Area; 

 

	 	20.1.10	monitoring registrations you have with any regulatory bodies to ensure compliance, training, examination and other requirements are met; and

  

	 	20.1.11	administration of disciplinary and grievance procedures. 

  

	21	Contracts (Rights of Third Parties) Act 1999 

 A person who is not a party to this Contract of Employment has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Contract of Employment save that each and every
Affiliate of the Company may enforce any of the provisions of this Agreement which confer rights or benefits upon that Affiliate. This does not affect any right or remedy of a third party which exists and is available under any separate rules or
provisions. 

  
 16 

	22	Collective Agreements 

There are no collective agreements with trade unions that directly affect your terms and conditions of employment. 

 

	23	Statutory Particulars 

This Contract of Employment together with the Company’s non contractual Disciplinary and Grievance Policies (as amended from time to
time) and the Company’s disciplinary and other Rules (also as amended from time to time) contain the written particulars of employment which you are entitled to receive under the Employment Rights Act 1996. 

 

	24	Whole Agreement 

 This
Contract of Employment and any other collateral contract supersedes any and all previous arrangements or understandings or offers whether oral or in writing, between the Company and you, and all representations (of whatsoever nature) on behalf of
the Company and/or an Affiliate in relation to your employment by the Company. Save as aforesaid this Contract of Employment contains the whole agreement between the Company and you relating to your employment as at the date of this Agreement
(except for those terms implied by law which cannot be excluded by the agreement of the parties). Variation to this Contract of Employment shall not be valid unless in writing and signed by both parties. 

 

	25	Governing Law 

 This
Contract of Employment will be governed by and construed in accordance with the law of England and Wales. The Company and you hereby submit to the jurisdiction of the English Courts in relation to any dispute arising in connection with this Contract
of Employment. 
  

	26	General Provisions 

  

	26.1	Any reference to a statutory provision includes all re-enactments and modifications of that provision and any regulations made under it or them.

  

	26.2	The headings in this Agreement are for convenience only. They do not form part of this Agreement and do not affect its interpretation. 

 

	26.3	Any reference in this Agreement to you, if appropriate, includes your personal representatives. 

 

	26.4	Any reference in this Agreement to the Company includes any Affiliate if the context requires or if we so decide. 

 

	26.5	Any provision in this Agreement which confers any rights or powers means those rights or powers as exercised by the Company from time to time.

  

	26.6	The Company has the right to review, revise, amend or replace the contents of this contract or the company handbook, and introduce new policies and procedures
from time to time reflecting the changing needs of the business. Details of any changes made will be published by HR from time to time, whether on the company network, notice boards, by individual letters or otherwise. You must make sure that you
keep yourself aware of any changes. 

  

	26.7	Any reference to any rule, regulation, policy, procedure or scheme means the rule, regulation, policy, procedure or scheme that is in force and as amended from
time to time. 

  

	26.8	 Subject to clause 8.4 and 8.5, any rule, regulation, policy, procedure or scheme referred to in this Agreement may be varied (in whole or part)
or cancelled or terminated by the Company at any time if the Company has reasonable and proper cause for this. Although the Company 

  
 17 

	 	
will normally consult with you to try to reach your agreement first to the variation, cancellation or termination of any such rule, regulation, policy, procedure or scheme, the Company is not
obliged to give any prior warning before making that variation, cancellation or termination nor is the Company under any obligation to compensate you for that variation, cancellation or termination, even if you are disadvantaged (financially or
otherwise) as a result provided that the Company shall notify you of such variation, cancellation or termination within a reasonable period of it taking effect and the variation, cancellation or termination shall only be effective once it has been
notified to you. The Company cannot commit itself to substituting a replacement rule, regulation, policy, procedure or scheme but, if the Company does provide a substitute, it may be on whatever terms it considers reasonably appropriate.

  

	26.9	If any scheme provider (not limited to an insurance company) or other third party refuses for any reason to provide any benefit which is set out in this
Agreement to you or if applicable to your spouse, civil partner, partner or children then the Company is not liable to provide any replacement benefit or compensation in lieu of that benefit. The Company may in its absolute discretion challenge any
refusal by any scheme provider or other third party to provide benefits but, if the Company does, it is on condition that: 

  

	 	26.9.1	You take all proper measures to appeal against the refusal in accordance with any applicable scheme and meet all costs associated with that appeal;

  

	 	26.9.2	You co-operate fully with the Company and disclose all relevant personal information; 

 

	 	26.9.3	If required, you attend a medical examination with one or medical practitioners selected and instructed by the Company; and 

 

	 	26.9.4	You indemnify the Company fully against all costs, expenses and claims incurred by the Company in connection with challenging that refusal.

  

	26.10	Any provision of this Agreement which says that you must not do something means that you must not do it yourself or in any other way. You must not do it through
others acting on your behalf or on your instructions or with your encouragement. 

  

	26.11	You appoint the Company to be your attorney (in your name and on your behalf) to execute any instrument or do any thing necessary for the purpose of giving to
the Company, its Affiliate or its or their nominee, the full benefit of the provisions of clauses 11, 13 and 14.5 of this Agreement. You acknowledge in favour of any third party that a certificate in writing, which is signed by the CEO or his
nominee, that any instrument or act falls within the authority conferred shall be conclusive evidence that such is the case. 

 [SIGNATURE PAGE FOLLOWS] 

  
 18 

 Signature Page to Contract of Employment 

 

	
	Signed by Beatrice Lafon
	
	 /s/ Beatrice Lafon

 Signed for and on behalf of Claire’s European Services Limited 

 

	
	 /s/ Eugene S. Kahn

  
 19

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