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Exhibit 10.5    
    

 
 

FIRST INSTRUMENT OF AMENDMENT    
    

        WHEREAS, J. Crew Group, Inc. (the "Corporation") maintains the J. Crew Group, Inc. 2003 Equity Incentive Plan (the "Plan"); 

        WHEREAS,
Section 8 of the Plan provides that the Plan may be amended by the Compensation Committee of the Board of Directors of the Corporation (the "Committee") at any time, with
exceptions not here material; 

        WHEREAS,
the Committee wishes to amend the Plan to allow the Committee the authority to determine pursuant to Section 4 thereof (in lieu of the Board of Directors) the
(i) maximum number of shares of Common Stock to be reserved for issuance of Options at varying exercise prices and to be reserved for the issuance of shares of Restricted Stock out of the pool
of available Common Stock available for Awards under the Plan and (ii) the Exercise Price of any Award under the Plan. 

        WHEREAS,
all defined terms used herein shall have the meaning set forth in the Plan unless specifically defined herein; 

        NOW,
THEREFORE, the Plan is hereby amended as follows. 

	1.
	The
reference to "Unless the Board determines otherwise" in Section 4 shall be replaced with a reference to "Unless the Committee determines otherwise". 

February 25,
2004 

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Exhibit 10.5

FIRST INSTRUMENT OF AMENDMENTQuickLinks
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Exhibit 4.2.2  

 
 

DATED 28th April 2000    
    
    SKYEPHARMA PLC    
    
    -AND-    
    
    MICHAEL ASHTON    
    

 
 

EXECUTIVE SERVICE AGREEMENT    
    

Arnheim
Tite & Lewis

St Andrew's House

20 St Andrew Street

London EC4A 3TL

Tel: 0171-212-1616

Fax: 0171-212-1570

Ref: CLG 

Copyright
© 1999 Arnheim Tite & Lewis 

 

THIS AGREEMENT is made on                         2000 

BETWEEN:

	(1)
	SKYEPHARMA PLC (registered in England no: 00107582) whose [registered office] is at
105 Piccadilly, London, W1V 9FN ("the Company"); and

	(2)
	MICHAEL ASHTON
of                        ("the Executive"). 

IT IS AGREED as follows.  

1      INTERPRETATION AND DEFINITIONS  

	1.1
	In
this Agreement where the context permits words in the singular shall include the plural and vice versa; references to the masculine gender shall include references to the feminine;
and the following words and expressions shall have the following respective meanings: 

	"Appointment"	 	the employment of the Executive under the terms of this Agreement;
	

"Associated Company"	
 	

any company (wherever incorporated), not being a Subsidiary, of which more than 20 per cent but less than 51 per cent of the equity share capital (as defined in section 744 of the Companies Act 1985) is for the time being beneficially owned by
the Company and/or any other Group Company;
	

"Board"	
 	

the Board of Directors of the Company from time to time or, where the context permits, such other person or persons as the Board may nominate from time to time as its representative for the purposes of this Agreement;
	

"Commencement Date"	
 	

1 January 1999;
	

"Holding Company"	
 	

has the meaning given in section 736 of the Companies Act 1985;
	

"Group"	
 	

the Company, any Holding Company for the time being of the Company, and any Subsidiary for the time being of the Company or any such Holding Company and any Associated Company and "Group Company" means any company in the Group; and
	

"Subsidiary"	
 	

has the meaning given in section 736 of the Companies Act 1985.

	1.2
	References
to any legislation shall be deemed to include any statutory amendment or re-enactment whenever made, any previous enactment consolidated in it and any
regulation or order made under it. References to clauses and the parties are respectively to clauses of and the parties to this Agreement.

	1.3
	The
clause headings are for ease of reference only and shall not affect the construction or interpretation of this Agreement. 

2      APPOINTMENT AND DURATION OF AGREEMENT  

	2.1
	The
Company shall employ the Executive and the Executive shall serve the Company from the Commencement Date as Chief Executive Officer of the Company, reporting to the Board. 

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	2.2
	The
Appointment shall be deemed to have commenced on the Commencement Date and shall continue (subject as provided below) until terminated by the Company giving to the Executive not
less than 12 months' prior written notice, or by the Executive giving to the Company not less than six months' prior written notice, expiring at any time.

	2.3
	The
Company reserves the right to terminate the Appointment at any time by summary written notice and making to the Executive a payment equal to the salary and the value of the other
benefits to which the Executive is entitled under this Agreement for his contractual period of notice or any unexpired portion of his period of notice. 

3      DUTIES AND POWERS  

	3.1
	The
Executive shall carry out such duties appropriate to his status and exercise such powers in relation to the Company or any other Group Company and its or their businesses as may
from time to time be assigned to or vested in him by the Board.

	3.2
	In
the course of the Appointment the Executive shall:

	3.2.1
	subject
to the other provisions of this Agreement, devote the whole of his time, attention and abilities to the business and affairs of the Company and of the Group during such
hours as are necessary for the proper performance of his duties.

	3.2.2
	without
additional remuneration accept such offices in the Company or any other Group Company as the Board may from time to time require;

	3.2.3
	use
his best endeavours to promote the interests and reputation of the Group and be bound by and comply with the general policies adopted by the Board applicable to the Executive;
and

	3.2.4
	keep
the Board informed of his conduct of the business and affairs of the Company and the Group, providing such explanations (in writing if required) as the Board may from time to
time require to such persons as it may nominate.

	3.3
	The
normal place of work of the Executive shall be 105 Piccadilly, London W1V 9FN. However, the Company may require him to work on a temporary or permanent basis at any
location within the United Kingdom and overseas and travel to such places, both inside and outside the United Kingdom, as may be required for the proper performance of his duties.

	3.4
	In
performing his duties, the Executive may be required to work outside the United Kingdom for consecutive periods of one month or more. In that event, the Executive's remuneration
will continue to be paid by the Company as set out below and there will be no changes to his other benefits, save as may be notified to him. 

4      GARDEN LEAVE  

	4.1
	Once
notice of termination has been given by either party the Company may, during a period or periods not exceeding six months, suspend the Executive from the performance of his
duties and/or exclude him from any premises of the Company or any other Group Company. Salary and other contractual benefits shall continue to be paid or provided despite such suspension and/or
exclusion. During any such period of suspension and/or exclusion, the Executive shall not without the prior written consent of the Board contact (either directly or indirectly) any clients, customers,
suppliers or employees of the Company or any other Group Company.

	4.2
	In
the event of the suspension and/or exclusion of the Executive pursuant to clause 4.1, the Company may require the Executive:

	4.2.1
	to
resign from any directorship held by him in the Company or any other Group Company or from any other office held by him by virtue of the Appointment; and 

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	4.2.2
	to
return to the Company all property in his possession or under his control belonging to the Company or any other Group Company with the exception of his company car provided under
clause 7. 

5      OUTSIDE INTERESTS AND DEALINGS  

	5.1
	The
Executive shall disclose to the Company in writing any interests of himself in any trade, business or occupation whatsoever (other than those in which the Executive is properly
engaged on behalf of the Company or any other Group Company) whether or not such trade, business or occupation is conducted for profit or gain.

	5.2
	The
Executive shall not during the continuance of the Appointment without the prior written consent of the Board be directly or indirectly engaged, concerned or interested in any
capacity in any trade, business or occupation (other than the business of the Company or any other Group Company) whether or not of a similar nature to or competing in any material respect with any of
the businesses of the Company or any other Group Company. This sub-clause shall not prevent the Executive from holding or being interested in not more than five per cent of the total
issued share capital in any company whose shares are quoted or dealt in on a recognised stock exchange. 

6      SALARY AND EXPENSES  

	6.1
	During
the Appointment, the Company shall pay or procure to be paid to the Executive an annual salary of £322,500 This salary shall accrue on a daily basis and be payable
by equal monthly instalments in arrears on or about the last day of each month or as otherwise determined by the Company. Salary shall be inclusive of any sums receivable (and abate by any sums
received) by the Executive as director's fees.

	6.2
	The
Executive agrees to indemnify the Company from any liability to United Kingdom income tax and employee's national insurance contributions and/or any other world-wide
tax or social security liabilities which may become due on any of his income in connection with the Appointment (except for the avoidance of doubt the tax and national insurance contributions which
the Company shall have deducted at source).

	6.3
	The
Company shall reimburse or procure reimbursement to the Executive of all reasonable out-of-pocket expenses (including hotel, travelling and other expenses)
wholly properly and necessarily incurred by the Executive on the business of the Company or any other Group Company. The Executive will provide such evidence of expenses as the Company may reasonably
require.

	6.4
	For
the purposes of Part II of the Employment Rights Act 1996, the Executive hereby authorises the Company to deduct from any sums owing to him (including but not limited to
salary and accrued holiday pay) the amount of any sums owing from the Executive to the Company at any time. 

7.     CAR  

	7.1
	For
as long as the Executive is legally entitled to drive during the Appointment, the Company shall provide a car for his use in the performance of his duties under this Agreement and
for private purposes. The car shall be of a make and standard in accordance with the Company's car policy in force from time to time. The Company shall pay for the running expenses including
maintaining, repairing, servicing, taxing and insuring the car and petrol and oil for both business and private use of the car.

	7.2
	The
Executive shall comply with all statements of policy, rules and regulations issued by the Company from time to time with regard to cars provided by the Company for use by
executives 

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and
shall return the motor car to the Company at its place of business in good condition and with all keys and documents relating to it upon termination of the Appointment. 

	7.3
	In
the event of the Executive being barred from driving, he shall cease to be entitled to the benefit of a car forthwith and shall not be entitled to and compensation or allowance in
lieu thereof. 

8      BENEFITS  

	8.1
	The
Company shall pay the premiums for providing the Executive with life assurance cover of four times his salary payable under clause 6.1 subject to any limits imposed by the
Inland Revenue from time to time, to the approval of the Company's insurers to provide such insurance on terms considered reasonable by the Company and any terms and conditions they may impose and to
the rules of the policy from time to time in force.

	8.2
	During
the Appointment the Executive shall be entitled to participate in any private medical expenses insurance, permanent health insurance and critical illness insurance schemes
which the Company may make available to employees of the Executive's status and which the Board may expressly offer to the Executive. Any such participation shall be subject to and in accordance with
the rules of the relevant scheme from time to time in force and participation in any such scheme shall not affect the right of the Company to terminate the Appointment under any other provision of
this Agreement.

	8.3
	The
Company will provide the Executive with a housing allowance of US$40,000. This payment will be subject to any deductions for tax and social security as may be required by law.

	8.4
	The
Company will contribute a maximum in total of £15,000 per year to the United Kingdom school fees for the Executive's dependent children under the age of 18 or who are
still at school or sixth form college. For the avoidance of doubt, the Company will not pay or contribute to any University or further education fees and the amount referred to above represents the
total maximum amount payable by the Company in respect of all of his dependent children.

	8.5
	During
the Appointment the Company shall, at such intervals as it may determine, pay into the Executive Personal Pension Scheme operated by the Company contributions of the lesser of
(i) 12.5 per cent of the Executive's annual salary which is remitted in the United Kingdom; and (ii) the maximum annual amount permitted by the Inland Revenue.

	8.6
	The
Executive may, at the Board's discretion, be entitled to participate in the stock option scheme operated by the Company. Any such participation shall be subject to and in
accordance with the rules of the scheme from time to time in force.

	8.7
	Any
benefits provided by the Company to the Executive and/or the Executive's family which are not expressly referred to in this Agreement shall be regarded as ex gratia and at the
entire discretion of the Company and shall not form part of the Executive's contract of employment with the Company. Such benefits may be varied or discontinued at any time and no compensation shall
be payable in lieu thereof. 

9      INCAPACITY  

	9.1
	Subject
to his compliance with the following sub-clauses of this clause 9 and to clauses 2 and 13, the Executive shall be entitled to receive the remuneration and
benefits due under this Agreement during periods of absence from work caused by illness, injury or accident for a maximum of a total aggregate period of 90 working days in any period of 12 calendar
months. Thereafter, the payment of remuneration and provision of benefits shall be at the absolute discretion of the Company. Any remuneration paid under this sub-clause shall be deemed to
be inclusive of statutory sick pay and the Company shall be entitled to deduct from any such remuneration the amount (if any) which the Executive is entitled to claim in consequence of his incapacity
by way of state sickness related benefits or the Company's permanent health insurance scheme, whether or not a claim is made. 

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	9.2
	The
Executive shall comply with the Company's rules in force from time to time relating to notification of absence, self-certification and the provision of medical certificates.

	9.3
	The
Executive shall, at the request and expense of the Company, undergo a medical examination with a medical practitioner nominated by the Company and the Executive hereby agrees that
if requested by the Company he will give written permission to allow the Company to have access to any medical or health report in its complete form prepared by any health professional on his physical
or mental condition. 

10    HOLIDAYS  

	10.1
	The
Executive shall be entitled to 25 working days' paid holiday per holiday year (in addition to English bank and other public holidays) to be taken at such time or times as may be
approved in advance by the Board. Holiday entitlement shall be deemed to accrue from day to day. The Company's holiday year runs from 1 January to 31 December.

	10.2
	On
termination of the Appointment other than pursuant to clause 12.2 or where the Executive terminates his employment without giving the requisite period of notice under this
Agreement (subject to any statutory entitlement), the Company will pay the Executive one day's holiday pay for each complete day of holiday entitlement for that year which has accrued but remains
untaken at the date of termination. A day's holiday pay for this purpose shall be 1/260 of the Executive's salary under clause 6.1. The Company may deduct from any sums payable to the Executive
one day's holiday pay for each day's holiday taken in excess of the Executive's accrued entitlement at the date of termination which the Executive hereby authorises. The Company may require the
Executive to take outstanding holiday during any period of notice. 

11    CONFIDENTIALITY  

	11.1
	The
Executive shall not, either during the continuance of this Agreement (otherwise than in the performance of his duties) or at any time after its termination use, divulge or
communicate to any person, and shall use his best endeavours to prevent the unauthorised publication, use or disclosure of, any trade secrets or other confidential information relating to the business
or affairs of the Company or any other Group Company. This obligation shall be in addition to and not in substitution for any other express or implied duty of confidentiality owed by the Executive to
the Company or any other Group Company.

	11.2
	Clause 11.1
shall cease to apply to information which is required to be disclosed by the Executive by law or which has come into the public domain otherwise than through the
default of the Executive.

	11.3
	For
the purposes of clause 11.1, trade secrets and confidential information shall include but shall not be limited to: unpublished financial and management accounts and
information; details of customers, prospective customers and employees of the Company and other Group Companies; marketing and product designs and strategies; and any information which is notified to
the Executive as being confidential. 

12    INVENTIONS  

	12.1
	For
the purpose of this clause 12, "Intellectual Property Rights" means any invention, improvement, discovery, system or software and any patents, trade marks (registered,
unregistered or otherwise applied for), registered designs, unregistered designs, copyrights, database rights, technical information, know-how or any changes or any amendments thereto and any similar
rights both in the UK and abroad. 

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	12.2
	Any
Intellectual Property Rights arising in the course of or as a direct or indirect consequence of work undertaken by the Executive whilst in the service of the Company or of any
company in the Group in connection with or in any way affecting or relating to the business of the Company or any other company in the Group, or capable of being used or adapted for use in that
business or in connection with that business, shall belong to and be the absolute property of the Company.

	12.3
	It
is hereby declared and agreed that any copyright and/or design right in any literary, graphic or artistic work and/or broadcast, sound recording, database or design right arising
under the preceding paragraphs shall belong to the Company and to that end the Executive hereby agrees to assign any existing Intellectual Property Rights including copyright and/or design rights in
software and the Executive hereby assign by way of future assignment, all such copyright and/or design right to the Company to hold absolutely unto itself.

	12.4
	At
the request and expense of the Company, the Executive will promptly execute and do all acts, matters, documents and things necessary to vest full legal title to any Intellectual
Property Rights in the Company or its nominee, and/or to enable the Company or its nominee to enforce its Intellectual Property Rights against third parties and apply for registration of the
Intellectual Property Rights where appropriate throughout the world. Without prejudice to the generality of this Subclause 12.4, the Executive hereby irrevocably authorise the Company to appoint some
person to act as his attorney in his stead to do all such things and execute such documents as may be necessary to grant to the Company or its nominee the full benefit of this
sub-clause 12.4.

	12.5
	The
Executive will not do anything, whether by omission or commission, during the duration of his employment or at any time after its termination, to affect or imperil the validity
of any Intellectual Property Rights. In particular (and in addition to any other duty relating to confidentiality), he will not disclose the subject matter of any Intellectual Property Rights which
may be registerable or patentable before the Company has applied for protection for these rights, in the UK or abroad.

	12.6
	It
is agreed for the purpose of Section 2(1) of the Registered Designs Act 1949 (as amended by the Copyrights Design and Patents Act 1988) that the covenants on the part of
the Company in this Agreement shall, as between the Company and he be treated as good consideration and the Company shall for the purpose of that Act be the proprietor of any design.

	12.7
	The
Executive acknowledges that any use of the Intellectual Property Rights by him is with the consent of the Company and that any use shall ensure wholly for the benefit of the
Company and that nothing in this contract will give him any right, interest or title in and to the Intellectual Property Rights except as expressly provided for in this Agreement.

	12.8
	Any
legal proceedings issued by the Company or any other company in the Group in respect of any infringement or dispute or threatened infringement will be conducted at the Company's
discretion and expense and the Executive agrees to give all reasonable assistance in any such legal proceedings. 

13    EARLY TERMINATION  

	13.1
	Notwithstanding
the provisions of clauses 2 and 9 the Executive's employment may be terminated by the Company immediately by written notice if the Executive:

	13.1.1
	commits
any serious breach of his obligations under this Agreement or is guilty of any gross misconduct, negligence or default; or

	13.1.2
	after
written warning repeats or continues any breach of his obligations under this Agreement; or 

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	13.1.3
	is
guilty of conduct tending to bring himself or the Company or any other Group Company into disrepute including but not limited to knowingly making any untrue or misleading
statement in relation to the Company or any other Group Company; or

	
13.1.4
	has
 a bankruptcy order made against him or compounds or attempts to compound with his creditors generally; or

	13.1.5
	becomes
of unsound mind or has an order made in respect of him under the Mental Health Act 1983; or

	13.1.6
	becomes
prohibited from being a director of a company; or

	13.1.7
	is
convicted of any criminal offence other than an offence under road traffic legislation for which the Executive is not sentenced to imprisonment (whether immediate or suspended).

	13.2
	If
the Company considers that it may be entitled to terminate the employment of the Executive pursuant to clause 13.1, it shall be entitled (but without prejudice to its
rights subsequently to terminate such employment on the same or any other ground) to suspend the Executive on full pay for the purposes of investigation. 

14    OBLIGATIONS ON TERMINATION  

	14.1
	Upon
the termination of his employment, the Executive shall:

	
14.1.1
	immediately
 tender his written resignation without claim for compensation from any office the Executive may hold as a director of the Company or any other Group Company and from
all offices held by him in the Group or otherwise by virtue of his employment; and

	14.1.2
	immediately
deliver up to the Company (without retaining any copies) all property belonging to the Company or any other Group Company or any of its or their customers or clients in
his possession or under his control including but not limited to all correspondence, documents, papers, memoranda, notes, records (including any contained in magnetic media or other forms of computer
storage), videos and tapes and shall not permit the same to be used by any party whatsoever before being returned to the Company.

	14.2
	The
Executive shall upon request from the Company confirm in writing that he has fully complied with the obligations contained in clause 14.1. 

15    OBLIGATION AFTER TERMINATION  

The
Executive shall not at any time after the termination of his employment represent himself as being in any way connected with or interested in the business of the Company or any other Group Company
or knowingly make any untrue or misleading statement in relation to the Group. 

16    GENERAL  

	16.1
	This
Agreement shall take effect on and from the Commencement Date, as from which date all other agreements or arrangements (whether written or oral and express or implied) between
the Executive and the Company or any other Group Company relating to the services or employment of the Executive shall be deemed to have been terminated by mutual consent.

	16.2
	The
expiration or termination of this Agreement shall not affect such of the provisions hereof as are expressed to operate or have effect after the termination of this Agreement and
shall be without prejudice to any right of action already accrued to either party in respect of any breach of this Agreement by the other party. 

8

 
	16.3
	All
communications and notices between the parties with respect to any of the provisions of this Agreement shall by letter delivered by hand or sent by pre-paid first
class delivery post, facsimile transmission ("fax") or telex message addressed to the other party at the addresses set out in this Agreement or to such other addresses as may be notified by the
parties for the purpose of this clause 16.

	16.4
	Communications
which are sent or despatched by first class post shall be deemed to have been received by the addressee two business days after despatch and any given by fax or telex
in the ordinary course of transmission.

	16.5
	In
proving service by post it shall only be necessary to prove that the communication was contained in an envelope which was duly addressed, stamped and posted by first class
delivery post and that the post was operating normally during that time.

	16.6
	The
date of commencement of continuous employment of the Executive is 24 March 1997.

	16.7
	The
Executive should refer in writing any grievance he may have about his employment or about disciplinary decisions relating to him to the Board whose decision shall be final.

	16.8
	There
are no disciplinary procedures applicable to the Executive except as specified in this Agreement.

	16.9
	There
are no collective agreements applicable to the Appointment.

	16.10
	This
Agreement shall be governed by the laws of England, and each party submits to the exclusive jurisdiction of the English courts as regards any claim or matter arising under this
Agreement. 

        IN
WITNESS whereof this Agreement has been signed on behalf of the Company and by the Executive: 

	SIGNED on behalf of

  

SKYEPHARMA PLC

  

by	 	)

)

)	 	

	

SIGNED by the said

  

MICHAEL ASHTON

  

in the presence of:	
 	

)

)

)	
 	

 

	

 	
 	

[ILLEGIBLE]
 
 105 Piccadilly

London W1J 7NJ	
 	

 

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DATED 28th April 2000 SKYEPHARMA PLC -AND- MICHAEL ASHTON

EXECUTIVE SERVICE AGREEMENT

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