Document:

Employment Agreement

 Exhibit 10.1 
  
 EMPLOYMENT AGREEMENT 
  
 THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made as of April 1, 2004, among Tommy Hilfiger Corporation, a British Virgin Islands corporation
(together with its successors and assigns, “THC”), Tommy Hilfiger U.S.A., Inc. (together with its successors and assigns, “THUSA”), a wholly owned subsidiary of THC, and Joel J. Horowitz (“Executive”). 
  
 1. Employment. THUSA agrees to employ Executive hereunder, and
Executive accepts such employment, for the period beginning as of April 1, 2004 (the “Effective Date”) and ending as set forth in Section 1(c) hereof (the “Employment Period”). 
  
 (a) Position and Duties. 
  
 (i) Effective as of the Effective Date and during the Employment Period,
Executive shall continue in his appointment as a Director of the Board of Directors of THUSA and shall be appointed to serve as the Executive Chairman of THUSA, with the customary duties, responsibilities and authority of the Executive Chairman,
including, without limitation, presiding over all of the meetings of the THUSA Board of Directors, and providing transitional support to the THUSA CEO and President with respect to the business and operations of THUSA. Notwithstanding the foregoing,
at the direction of a majority of the Board of Directors of THC, THUSA may reassign the titles, position, duties, responsibilities and authority of the Executive Chairman during the Employment Period, provided, however, that upon such reassignment,
Executive shall be considered an employee of THUSA through the Employment Period and the terms and conditions of this Agreement shall otherwise continue in full force and effect. 
  
 (ii) Effective as of the Effective Date and during the Employment Period, Executive shall continue in his appointment as a
Director of the Board of Directors of THC (the “THC Board”) and shall be appointed by the THC Board to serve as the Executive Chairman of THC, with the customary duties, responsibilities and authority of the Executive Chairman, including,
without limitation, presiding over all of the meetings of the THC Board of Directors, and providing transitional support to the THC CEO and President with respect to the business and operations of THC and its subsidiaries; provided,
however, the services performed by the Executive within the United States shall be limited to the supervision and oversight of THC’s investment in its subsidiaries. Notwithstanding the foregoing, upon the approval of a majority of the
Board of Directors of THC, THC may reassign the titles, position, duties, responsibilities and authority of the Executive Chairman during the Employment Period, provided, however, that upon such reassignment, Executive shall continue to be
considered an employee of THC through the Employment Period and the terms and conditions of this Agreement shall otherwise continue in full force and effect. It is the intention of the parties that upon the expiration of Executive’s term as a
Director of THC at the THC 2004 Annual Meeting, subject to the vote of the shareholders of THC, Executive shall be elected to and serve as a member of the THC Board for an additional 3-year term (the “New Director Term”), with such New
Director Term to run partially during the Employment Period. Following the Employment Period, Executive may, at his discretion, continue to serve as a Director until the end of the New Director Term. 

 (iii) In his capacity as Executive Chairman of THC, Executive shall report to the THC Board and Executive
shall devote substantially all his business time and attention to the business and affairs of THC and its subsidiaries. In his capacity as Executive Chairman of THUSA, Executive shall report to the THUSA Board of Directors. Anything herein to the
contrary notwithstanding, nothing shall preclude Executive from (A) serving on the boards of directors of a reasonable number of other corporations (as disclosed to and approved by the THC Board) or the boards of a reasonable number of trade
associations and/or charitable organizations, (B) engaging in charitable activities and community affairs, and (C) managing his personal investments and affairs, provided that such activities do not materially interfere with the proper performance
of his duties and responsibilities under this Agreement. 
  
 (b)
Salary, Bonus and Benefits. 
  
 (i) During the Employment Period,
THUSA shall pay Executive base salary at an annualized rate of $1,000,000 in consideration for the performance of services on the behalf of THC and THUSA. Each payment of such base salary is referred to as “Base Salary,” and the annualized
rate thereof is referred to as the “Annual Base Salary Rate.” The Base Salary shall be payable in accordance with THUSA’s regular payroll practices but, in any event, no less frequently than monthly. 
  
 (ii) For the fiscal year of THUSA ending March 31, 2005 (“FY 05”),
Executive shall be eligible to earn an annual cash bonus (the “Annual Bonus”) payable by THUSA, on the terms and conditions set forth below. Any Annual Bonus that becomes due hereunder shall be paid when other bonuses are paid to Senior
Executives (as defined below), but in any event not later than 90 days after the end of FY 05. 
  
 (A) The Annual Bonus shall be payable only (1) if the minimum net revenue goal set forth in clause (B) below (the “Minimum Net
Revenue Goal”) is met, and (2) actual Income Before Taxes for FY 05 is at least 85% of the Budgeted Amount. If these conditions are met, the amount of the Annual Bonus shall be based upon actual Net Revenue and actual Income Before Taxes for FY
05, as compared to the Budgeted Amount of Net Revenue and the Budgeted Amount of Income Before Taxes (as those terms are defined below), and computed as set forth in clauses (B) through (F) below, based upon the amount of the Base Salary actually
earned by Executive for FY 05 or the portion thereof during which he is employed hereunder (the “Earned Base Salary”). For these purposes: (i) “Income Before Taxes” shall mean the income before taxes of THC and its consolidated
subsidiaries for FY 05, as reported in THC’s audited financial statements, provided that there shall be excluded from the calculation of Income Before Taxes (x) except to the extent reflected in the Budgeted Amount of Income Before Taxes, the
cumulative effect of changes in accounting principles, and charges for impairment of goodwill and other intangible assets that were reflected in such audited financial statements as of the Effective Date, (y) the effect of acquisitions and
divestitures that were not contemplated in the Budgeted Amount of Net Income Before Taxes, and (z) the effect of items specifically identified on the face of THC’s audited income statement as “special items” that were not contemplated
in the Budgeted Amount of Net Income Before Taxes (including any benefits resulting from such special items); (ii) the “Net Revenue” means the net revenue of THC and its consolidated subsidiaries for FY 05, as 
  

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 reported in THC’s audited financial statements; and (iii) the “Budgeted Amount” of Income
Before Taxes or of Net Revenue shall mean the budgeted amount of Income Before Taxes or of Net Revenue, as applicable, for FY 05 (calculated on a basis consistent with the calculations used for THC’s audited financial statements), as approved
by the THC Board (after consultation with Executive) before the beginning of FY 05, subject to amendment by the THC Board (after consultation with Executive) within the period of 90 days after the beginning of the fiscal year. 
  
 (B) (i) The “Minimum Net Revenue Goal” shall be
met only if the Net Revenue for FY 05 is at least equal to 90% of the Budgeted Amount of Net Revenue; (ii) if Net Revenue for FY 05 is equal to 90% or more, but less than 95%, of the Budgeted Amount of Net Revenue, the “Net Revenue Achievement
Factor” shall equal 50%; and (iii) if Net Revenue for FY 05 is equal to 95% or more of the Budgeted Amount of Net Revenue, the “Net Revenue Achievement Factor” shall equal 100%. 
  
 (C) If the Minimum Net Revenue Goal is met, and actual
Income Before Taxes for FY 05 equals the Budgeted Amount of Income Before Taxes, the amount of the Annual Bonus shall be (I) 100% of the Earned Base Salary, times (II) the Net Revenue Achievement Factor. 
  
 (D) If the Minimum Net Revenue Goal is met, and actual
Income Before Taxes for FY 05 exceeds the Budgeted Amount of Income Before Taxes, the amount of the Annual Bonus shall equal (I) a percentage of the Earned Base Salary, equal to (x) 100% plus (y) 5% for each 1% of Income Before Taxes in excess of
the Budgeted Amount of Income Before Taxes, up to a maximum of 200% of Earned Base Salary, times (II) the Net Revenue Achievement Factor. 
  
 (E) If the Minimum Net Revenue Goal is met, and actual Income Before Taxes for FY 05 is less than the Budgeted Amount of Income Before
Taxes, but not less than 85% of the Budgeted Amount of Income Before Taxes, the amount of the Annual Bonus shall equal (I) the percentage of the Earned Base Salary based on the table below, times (II) the Net Revenue Achievement Factor: 

 

				
	 Actual Income Before Taxes as a
 percentage
of Budgeted Amount

	  	 Percentage of
 Earned Base Salary

	 
	 At least 95% but less than 100%
	  	75	%
	 At least 90% but less than 95%
	  	50	%
	 At least 85% but less than 90%
	  	25	%

  
 (iii) Except as
provided below, during the Employment Period, Executive shall be entitled to participate in all employee pension and welfare benefit plans and programs made available to the Senior Executives (as defined below) or to employees of THUSA generally, on
a basis no less favorable than the basis provided to the Senior Executives, as such plans or programs may be in effect from time to time, including, without limitation, pension, profit 
  

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 sharing, savings and other retirement plans or programs, medical, dental, hospitalization, short-term and long-term
disability and life insurance plans, accidental death and dismemberment protection, travel accident insurance, and any other pension or retirement plans or programs and any other employee welfare benefit plans or programs that may be sponsored by
THC or any of its affiliates from time to time, including plans that supplement the above-listed types of plans or programs, whether funded or unfunded; provided, however, that during the Employment Period, Executive shall not be eligible to
participate in the Tommy Hilfiger U.S.A., Inc. Supplemental Executive Retirement Plan. For purposes of this Agreement, the “Senior Executives” means other senior executives of THC and THUSA, other than Tommy Hilfiger. 
  
 (iv) Except as provided below, during the Employment Period, Executive shall
participate in all other benefits and perquisites available to the Senior Executives at levels, and on terms and conditions, that are commensurate with his positions and responsibilities hereunder, and shall receive such additional benefits and
perquisites as the THC Board may, at its sole discretion, from time to time provide. 
  
 (v) During the Employment Period, THUSA shall provide Executive with the use of private aircraft in commuting between Nevada and New York, as well as an S-Class Mercedes Benz or comparable automobile for business and
personal use in New York. 
  
 (vi) During the Employment Period,
Executive shall not be eligible to participate in option or restricted stock grants and any other long-term incentive plans of THC and its affiliates, as in effect from time to time, in which the Senior Executives are eligible to participate.

  
 (vii) During the Employment Period, Executive shall keep
records of sufficient detail to permit THC and THUSA to allocate Executive’s compensation between THC and THUSA. 
  
 (c) Separations and Other Terminations. 
  
 (i) Except as hereinafter provided in this Section 1(c)(i), the Employment Period shall continue until, and shall end upon, March 31, 2005.
Notwithstanding the foregoing, the Employment Period shall end early upon Executive’s death, Disability (as defined below) or resignation in writing or at such time as the THC Board determines to cause THUSA to terminate Executive’s
employment prior to March 31, 2005 (a “Separation”). A Separation as a result of a resignation by Executive without Good Reason or a termination of Executive’s employment by THUSA without Cause shall be effective upon written notice
by Executive to THUSA, or by THUSA to Executive, as applicable; provided that any such termination by THUSA must be approved by the THC Board. Executive agrees that he will resign from the THC Board, and from the boards of directors of any
affiliates of THC of which he may be a member, upon a Separation prior to March 31, 2005. A voluntary resignation by Executive shall not be deemed to be a breach of this Agreement by Executive, and a termination of Executive’s employment by
THUSA shall not be deemed to be a breach of this Agreement by THC or THUSA. The date on which any termination of Executive’s employment is effective, including March 31, 2005 if the Employment Period ends on such date without a prior
Separation, is referred to as the “Date of Termination.” 
  

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 (ii) If there is a Separation as a result of the termination of Executive’s employment by THUSA for
Cause or by Executive without Good Reason, Executive shall be entitled to (A) Base Salary through the Date of Termination, (B) the balance of any accrued and vested amounts or benefits under Sections 1(b)(iii), l(b)(iv), and 10(a) hereof which he
would otherwise be entitled to receive as of the Date of Termination, but which have not theretofore been paid or provided, and (C) all other rights and benefits in which Executive is vested or entitled to under the plans, agreements or policies of
THC or any of its affiliates, as applicable, or by law as of the Date of Termination. If the Employment Period ends without a prior Separation, Executive shall be entitled to the payments and benefits described in the preceding sentence, together
with any Annual Bonus for FY 05 to which Executive is entitled and that has not yet been paid. 
  
 (iii) If there is a Separation as a result of Executive’s death, then: (A) his estate or beneficiaries (as the case may be) shall be entitled to (1) the payments and benefits described in the first sentence of
Section 1(c)(ii) hereof and (2) a lump-sum payment equal to the Annual Bonus (if any) for FY 05, calculated based on the Earned Base Salary through the Date of Termination and the Net Revenue and Income Before Taxes for all of FY 05, and payable
following the end of FY 05, all in accordance with Section (1)(b)(ii) (a “Pro-Rata Bonus”); and (B) Executive’s eligible dependents shall be entitled to participate for one year in the medical plans of THUSA to the extent, and on the
same terms and conditions as, such dependents were participating in such plans as of Executive’s death, with continuation coverage thereafter to be provided to the extent required by the continuation coverage requirements of Section 601 et
seq. of the Employee Retirement Income Security Act of 1974, as amended, and Section 4980B of the Code (“COBRA”). 
  
 (iv) “Disability” shall mean Executive’s disability within the meaning of the long-term disability benefit plan of THC and its affiliates
in which he participates, which shall provide him with benefits not less favorable than those that would be available to the Senior Executives upon their disability. If there is a Separation as a result of Executive’s Disability, then in
addition to any benefits provided to Executive under such long-term disability plan: (A) Executive shall be entitled to the payments and benefits described in the first sentence of Section 1(c)(ii) hereof and to a Pro-Rata Bonus; and (B) Executive
and his eligible dependents shall be entitled to participate for one year in the medical plans of THUSA to the extent, and on the same terms and conditions as, Executive and such dependents were participating in such plans as of the Date of
Termination, with benefits thereafter to the extent required by COBRA; provided that Executive and his spouse may continue to participate in THUSA’s or any of its affiliates’ Senior Executive Medical Plan, as such may be in effect at the
time, at Executive’s sole cost and expense, until the earlier of Executive’s becoming eligible to receive such benefits from a new employer or under Medicare, or his death. 
  
 (v) If there is a Separation as a result of the termination of Executive’s employment by THUSA without Cause or by
Executive with Good Reason: 
  
 (A) Executive
shall be entitled to the payments and benefits described in the first sentence of Section 1(c)(ii) above and a lump sum payment equal to the Annual Base Salary Rate calculated from the Date of Termination until March 31, 2005, and the Annual Bonus
(if any) for FY 05, payable following the end of FY 05, all in accordance with Section 1(b)(ii); 
  

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 (B) Notwithstanding the foregoing, following the Date of Termination, Executive shall
continue to adhere to the covenants set forth in Section 2 and Sections 4 through 7 of this Agreement and THUSA shall have no obligation to make or continue to make, as applicable, the payments described in this Section if Executive commits,
following the Date of Termination, any willful, material breach of any of the covenants set forth in Section 2 and Sections 4 through 7. 
  
 (vi) In addition to the other benefits set forth in this Section 1(c), if there is a Separation as a result of the termination of Executive’s
employment by THUSA without Cause or by Executive with Good Reason, then Executive shall be entitled to the following: Until the earlier to occur of (A) Executive becoming eligible to receive such benefits from a new employer or under Medicare, or
(B) 24 months following the Date of Termination, Executive and his spouse may participate, at the same cost and expense as other similarly situated Senior Executives, in THUSA’s or any of its affiliates’ Senior Executive Medical Plan and
life insurance benefit plan, as such may be in effect from time to time, with benefits comparable to benefits provided to the Senior Executives; provided that Executive and his spouse may continue to participate in such Senior Executive Medical
Plan, as such may be in effect at the time, at Executive’s sole cost and expense, until the earlier of Executive’s becoming eligible to receive such benefits from a new employer or under Medicare, or his death. If this Agreement expires by
its terms on March 31, 2005 without a prior Separation, Executive and his spouse may also continue to participate in such Plan, as such may be in effect at the time, at Executive’s sole cost and expense, until the earlier of Executive’s
becoming eligible to receive such benefits from a new employer or under Medicare, or his death. 
  
 (viii) For purposes hereof, “Cause” means: 
  

	 	(1)	Executive is convicted of or enters a plea of nolo contendere to a felony, or a majority of the independent members of the THC Board determines in good faith, based on
reliable and substantial evidence, that Executive has committed a felony; 

  

	 	(2)	Executive commits any willful breach of any of the covenants set forth in Section 2 and Sections 4 through 6 below, provided that such breach has resulted, or the THC Board
determines in good faith in writing that such breach is likely to result, in material harm to THC or any of its affiliates; 

  

	 	(3)	Any of the representations by Executive set forth in Section 8 below shall not have been true as of the Effective Date (determined as if the phrase “to the best of his
knowledge” did not appear in Section 8), provided that such failure to have been true results in material harm to THC or any of its affiliates; 

  

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	 	(4)	Executive’s willful failure or refusal to perform any of his material duties or responsibilities under this Agreement, or to carry out reasonable lawful directions from the THC
Board or from the THUSA Board with the concurrence of the THC Board in writing; provided that THUSA has given Executive notice of such failure or refusal and the steps to be taken to cure such failure or refusal, and Executive has failed to take
reasonable steps to cure such failure or refusal within ten days after receiving such notice; 

  

	 	(5)	Executive engages in conduct that constitutes, theft, misappropriation of funds, embezzlement, material dishonesty or deliberate fraud (other than any violation of law committed in
good faith by Executive and in a manner he reasonably believed to be in or not opposed to the best interests of THC and its affiliates and with respect to which he had no reasonable cause to believe his conduct was unlawful at the time the action
was taken); provided that in any such case, the THC Board determines in good faith in writing that such conduct or violation has resulted, or is likely to result, in material harm to THC or any of its affiliates; or 

  

	 	(6)	Executive commits willful gross neglect of, or willful gross misconduct in carrying out, his duties under this Agreement. 

  
 An action or failure to act by Executive shall not be considered
“willful” for these purposes if Executive believed in good faith that his action or failure to act was in, or not opposed to, the best interests of THC and its affiliates. A termination for Cause shall be effective on the date specified in
a written notice to Executive by THUSA (as approved by a majority of the THC Board other than Executive), but not before Executive has been given written notice describing in detail the grounds on which the proposed termination is based and a
reasonable opportunity to be heard, with his counsel, at a meeting of the THC Board. If THUSA terminates Executive’s employment in a purported termination for Cause, but it is subsequently determined by an arbitrator that the termination was
not for Cause, the termination shall be considered to have been without Cause. A requirement that the THC Board do anything hereunder “in writing” shall be satisfied by a resolution or minutes of the THC Board (without limitation).

  
 (ix) For purposes hereof, “Good Reason” means the
occurrence of any of the following events without the written consent of Executive: 
  

	 	(A)	A reduction of the Annual Base Salary Rate or the target bonus opportunity as set forth in Section 1(b)(ii) above; 

  

	 	(B)	A failure of the shareholders of THC to elect Executive to the THC Board in 2004, unless he is re-appointed to the THC Board within 60 days after such election takes place; or

  

	 	(C)	Any material breach by THC or THUSA of this Agreement. 

  

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 A termination of employment by Executive with Good Reason shall be effective on the date specified in a
written notice to THUSA by Executive, but not before (x) Executive has given written notice to THUSA of his intention to terminate his employment with Good Reason, such notice to describe in detail the grounds on which the proposed termination is
based, and (y) THUSA and THC have failed to cure such grounds within thirty days after the date that such written notice has been given to THUSA. 
  
 (d) No Mitigation; No Offset. In the event of any termination of Executive’s employment, Executive shall be under no obligation to seek other
employment and there shall be no offset against amounts due Executive under this Agreement on account of any remuneration attributable to any subsequent employment that he may obtain. 
  
 (e) Nature of Payments. Any amounts due under Section 1(c) hereof are in the nature of severance payments considered
to be reasonable by THC and THUSA and are not in the nature of a penalty, and are intended as liquidated damages for THUSA’s termination of Executive’s employment without Cause or the action constituting Good Reason, and shall be the sole
remedy therefor. 
  
 2. Inventions and Other Intellectual
Property. Executive agrees that all inventions, innovations, improvements, developments, methods, designs, analyses, drawings, reports, trademarks, slogans, product or other designs, business plans, logos, advertising or marketing programs, and
all similar or related information which relate to THUSA’s or any of its affiliates’ business, research and development being conducted or products or services being sold or under development, at the time Executive’s employment
terminates, and which are conceived, developed or made by Executive, whether alone or jointly with others, while employed hereunder (“Work Product”) belong to THC and THUSA. Executive shall promptly disclose such Work Product to THUSA and
perform, at THUSA’s sole expense, all actions reasonably requested by THUSA (whether during or after the Employment Period) to establish and confirm such ownership (including, without limitation, assignments, consents, powers of attorney and
other instruments). In addition, THUSA shall reimburse Executive for any reasonable fees and expenses of his counsel to review any documentation required pursuant to this Section 2. 
  
 3. Limitation. Section 2 of this Agreement regarding the ownership of inventions and other intellectual property does
not apply to the extent application thereof is prohibited by any law the benefits of which cannot be waived by Executive. Executive hereby waives the benefits of any such law to the maximum extent permitted by law. 
  
 4. Confidential Information. Executive acknowledges that the
information, observations and data obtained by him during the course of his employment hereunder concerning the business and affairs of THC and its affiliates, including without limitation information concerning acquisition opportunities in or
reasonably related to the business or industry of THC and its affiliates, of which Executive becomes aware during his employment hereunder are the property of THC and its affiliates. Therefore, during and following the Employment Period, other than
in the course of performing his duties for THC or any of its affiliates (including pursuant to Section 6 hereof), Executive agrees that he will not intentionally disclose to any unauthorized person or use for his own account any of such information,
observations or data without the THC Board’s written consent, unless and to the extent that (x) 
  

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 he is required to do so by law or by a court, governmental agency, legislative body, or other person (including any
committee of any such agency, body or other entity) with apparent jurisdiction to order him to divulge, disclose or make accessible such information, (y) it is necessary to enforce his rights under this Agreement or any other agreement with THC or
any of its affiliates or (z) the aforementioned matters become generally known to and available for use by the public or within the relevant trade or industry other than as a result of Executive’s violation of this Section 4; provided that
before disclosing any such information, observations and data in reliance on clause (x), Executive shall give notice to THUSA as far in advance of the required disclosure as is lawful and practicable, shall use his best efforts to cooperate with THC
and THUSA, at their sole expense, in their efforts to prevent such disclosure from being compelled, and shall use his best efforts to limit his disclosure to the minimum compelled by law or court order, except to the extent THC or THUSA agrees
otherwise in writing. Executive agrees to deliver to THC at a Separation or any other termination of his employment, or at any other time as THC may reasonably request in writing, all memoranda, notes, plans, records, reports and other documents
(and copies thereof) relating to the business of THC and its affiliates (including, without limitation, all acquisition prospects, lists and contact information) which he may then possess or have under his control; provided that Executive may retain
for his personal use (and not for any use in violation of this Section 4 or Section 5 hereof) his personal papers and other materials of a personal nature, including diaries, calendars and Rolodexes, any information he reasonably believes may be
necessary for tax purposes, any information showing his compensation or relating to reimbursement of expenses and copies of plans, programs and agreements relating to his employment or the termination thereof. 
  
 5. Non-Compete, Non-Solicitation. 
  
 (a) Executive acknowledges that in the course of his employment hereunder,
he will become familiar with trade secrets and customer lists of and other confidential information concerning THC and its affiliates and may become familiar with trade secrets of predecessors of THC and its affiliates, and that his services will be
of special, unique and extraordinary value to THC and THUSA. 
  
 (b) Executive agrees that during the Employment Period, and, thereafter, until September 30, 2005, he shall not directly or indirectly, through any person, firm or corporation, alone or as a member of a partnership or as an officer,
director, stockholder, investor, employee or consultant of or in any other corporation or enterprise or otherwise, engage or be engaged in, or assist any other person, firm, corporation or enterprise in engaging or being engaged in, the wholesale
distribution, licensing or outlet retailing of better designer apparel (consisting of men’s and women’s sportswear, jeanswear and/or children’s wear), accessories, footwear, fragrance and/or home furnishings in any geographic area in
which THC or any of its affiliates is actively conducting such business both during the Employment Period and at the time Executive engages in such conduct (a “Competitive Business”). Anything herein to the contrary notwithstanding,
Executive shall not be deemed to be in violation of this Section 5(b) if he provides services to (i) a subsidiary, division or affiliate of a Competitive Business if such subsidiary, division or affiliate is not itself engaged in a Competitive
Business and Executive does not provide, and continues not to provide, services or assistance to, and does not have, and continues not to have, any responsibilities regarding, the Competitive Business or (ii) a private equity investment or
consulting business that has investments in, or clients which are involved 
  

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 in, a Competitive Business, so long as Executive does not provide, and continues not to provide, services or assistance
to, and does not have, and continues not to have, any responsibilities regarding, such Competitive Business. 
  
 (c) Executive further agrees that during the Employment Period, and, for a period of two years following any Separation or other termination of his
employment hereunder, he shall not directly or indirectly solicit any Covered Employee (as defined below) to quit or abandon his or her employ with THC or such affiliate, for any purpose whatsoever. Anything herein to the contrary notwithstanding,
upon the request of any employee of THC or its affiliates, Executive may provide personal references for such employee, including for employment with another entity with which Executive is not affiliated. For these purposes, a “Covered
Employee” means (1) until the expiration of 180 days following a Separation or other termination of Executive’s employment, any employee of THC or of any of its affiliates, and (2) thereafter, any such employee with the title of vice
president or above. THC and THUSA each acknowledges that its employees may join entities with which Executive is affiliated and that such event shall not constitute a violation of this Section 5(c) if Executive was not involved in soliciting such
employee or directly or indirectly in hiring such employee or identifying such employee as a potential recruit. 
  
 (d) Nothing in this Section 5 shall prohibit Executive from being: (i) a stockholder in a mutual fund or a diversified investment company or (ii) a
passive owner of not more than two percent of the outstanding stock of any class of a corporation, so long as Executive has no active participation in the business of such corporation. 
  
 (e) To the extent permitted by law, if, at the time of enforcement of this Section 5, a court or arbitrator holds that the
restrictions stated herein are unreasonable under circumstances then existing, the parties hereto agree that the maximum period, scope or geographical area reasonable under such circumstances shall be substituted for the stated period, scope or area
and that the court or arbitrator shall be allowed to revised the restrictions contained herein to cover the maximum period, scope and area permitted by law; provided that in no event shall such period, scope or area be broader than as set forth in
this Section 5. 
  
 6. Cooperation. During and following
the Employment Period, Executive shall cooperate with THC and its affiliates in connection with any litigation or governmental or regulatory investigation or proceeding, against or involving THC or any of its affiliates, whether administrative,
civil or criminal in nature, in which and to the extent THC or such affiliate reasonably deems Executive’s cooperation necessary; provided that following the Employment Period, such cooperation shall only be required with respect to matters
relating to his responsibilities for THC or THUSA (or any of their affiliates) or of which Executive has knowledge, and shall be subject to his other personal and business commitments. Executive shall be reimbursed by THUSA for his reasonable
expenses, including without limitation travel and attorneys’ fees if Executive reasonably determines that separate representation is necessary, incurred in providing such cooperation. In addition, Executive shall be compensated for any such
cooperation that occurs after the Relevant Date (as defined below) at the rate of $5,000 per day. For these purposes, the “Relevant Date” means (a) if there is a Separation as a result of the termination of Executive’s employment by
THUSA without Cause or by Executive with Good Reason, the last day of the Salary Continuation Period, and (b) in all other cases, the Date of 
  

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 Termination. Executive agrees that, in the event he or anyone acting on his behalf is served with any subpoena, order,
directive or other legal process involving THC or any of its affiliates, he or his attorney shall use their best efforts promptly to notify THUSA’s Executive Vice President of Human Resources of such service and of the content of any testimony
or information to be provided pursuant to such subpoena, order, directive or other legal process and as soon as reasonably practicable, send to THUSA’s Executive Vice President of Human Resources via overnight delivery (at the THUSA’s
expense) a copy of said documents served upon him or someone acting on his behalf. 
  
 7. Nondisparagement. Following the Employment Period, Executive shall not make any public statements, written or oral, that disparage THC or any of its affiliates, or any of their respective then-current
directors or senior executives. THC and THUSA agree that during and following the Employment Period, they shall not, and each of them shall direct its then-current directors and senior executives not to, make any public statements, written or oral,
that disparage Executive. Notwithstanding the foregoing, nothing in this Section 7 shall prohibit Executive, THC or THUSA or their respective directors and senior executives, from (a) responding publicly to incorrect, disparaging or derogatory
public statements by a party hereto, to the extent reasonably necessary to correct or refute such public statement or (b) making any truthful statement to the extent (i) required by law or by any court, arbitrator, mediator or administrative or
legislative body (including any committee thereof) with actual or apparent jurisdiction to order such party to make such truthful statements or (ii) necessary in any litigation, arbitration or mediation involving this Agreement. In addition, nothing
in this Section 7 shall prohibit THC or THUSA from making any truthful and factual press release or public filing that is approved by a majority of the independent directors of THC. 
  
 8. Executive Representations. Executive represents and warrants to THC and THUSA that to the best of his
knowledge, (a) the execution, delivery and performance of this Agreement by Executive does not and will not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which Executive is
a party or by which he is bound as of the Effective Date, (b) Executive is not a party to or bound by any legally binding contract or agreement as of the Effective Date that would prevent or hinder his performance of his obligations hereunder, and
(c) upon the execution and delivery of this Agreement by the parties, this Agreement shall be the valid and binding obligation of Executive, enforceable in accordance with its terms. 
  
 9. Notices. Any notice provided for in this Agreement must be in writing and must be personally delivered, mailed by
first class mail (postage prepaid and return receipt requested), or sent by reputable overnight courier service (charges prepaid) to the address below indicated, or sent by facsimile to the number below indicated: 
  
 If to THC or THUSA: 
  
 Tommy Hilfiger U.S.A., Inc. 
 25 West 39th Street 
 New York, New York 10018

 Facsimile: 212-548-1818 
 Attention: Chief Executive Officer and President 
  

 11 

 With a copy to: 
  

Tommy Hilfiger U.S.A., Inc. 
 25 West 39th
Street 
 New York, New York 10018 
 Facsimile: 212-548-1660 
 Attention: Executive Vice President of Human Resources 
  
 If to Executive: 
  
 c/o Tommy Hilfiger U.S.A., Inc. 
 25 West 39th Street 
 New York, New York 10018

 Facsimile: 212-548-1660 
  
 or such other address or number or to the attention of such other person as the recipient party shall have specified by prior written notice to the sending party. Any
notice under this Agreement shall be deemed to have been given (a) when personally delivered to the recipient with written acknowledgment of receipt, (b) three days after mailing by first class mail, (c) two days after being sent by a nationally
recognized overnight courier with written acknowledgment of receipt or (d) when sent by facsimile with a printed record of completed transmission being obtained by the sender. 
  
 10. General Provisions. 
  
 (a) Expenses. Executive is authorized to incur reasonable expenses in carrying out his duties and responsibilities under this Agreement and THUSA
shall promptly reimburse him for all legitimate business expenses incurred in connection with carrying out the business of THC and its affiliates, subject to documentation and in accordance with THUSA’s reimbursement polices. 
  
 (b) Severability. Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such
invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had
never been contained herein; provided that any reformation shall be effective only if the economic or legal substance of the transactions contemplated hereby would not thereby be affected in any manner materially adverse to any party hereunder; and
provided, further, that Section 5(e) shall supersede this Section 10(b) with respect to the matters set forth herein, to the extent the two sections are inconsistent. 
  
 (c) Complete Agreement. It is acknowledged and agreed that the Amended and Restated Employment Agreement dated as of
June 30, 1992, by and between THUSA and Executive, as amended as of March 8, 1994, August 7, 1998 and August 3, 2003 (the “Prior Agreement”), has expired as of March 31, 2004. This Agreement embodies the complete agreement and
understanding among the parties with respect to the subject matter hereof and 
  

 12 

 supersedes and preempts any prior understandings, agreements or representations among the parties, written or oral, which
may have related to the subject matter hereof in any way, except for payment of any amounts that became due to Executive under the Prior Agreement before its expiration that remain unpaid. In the event of any inconsistency between any provision of
this Agreement and any provision of any plan, employee handbook, personnel manual, program, policy, arrangement or agreement of THC or any of its affiliates applicable to Executive, the provisions of this Agreement shall control to the extent more
favorable to Executive. 
  
 (d) Counterparts. This
Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement. 
  
 (e) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their
respective successors, heirs (in the case of Executive) and assigns. No rights or obligations of THC or THUSA under this Agreement may be assigned or transferred by them except that such rights or obligations may be assigned or transferred pursuant
to a merger or consolidation, or the sale or liquidation of all or substantially all of the assets of THC or THUSA, as the case may be, provided in either case that the successor, assignee or transferee is the successor to all or substantially all
of the assets of THC or THUSA and such successor, assignee or transferee assumes the liabilities, obligations and duties of THC or THUSA, as contained in this Agreement, either internally or as a matter of law. THC and THUSA each further agrees
that, in the event of a sale of assets or liquidation as described in the preceding sentence, it shall take whatever action it legally can in order to cause such assignee or transferee to assume its liabilities, obligations and duties hereunder. No
rights or obligations of Executive under this Agreement may be assigned or transferred by Executive other than his rights to compensation and benefits which may be transferred only by will, operation of law or as provided below in this Section 10(e)
or in any applicable plan, program, grant or agreement of THC or any of its affiliates. Executive shall be entitled, to the extent permitted under any applicable law, to select and change a beneficiary or beneficiaries to receive any compensation or
benefit payable hereunder following Executive’s death by giving THUSA written notice thereof. In the event of Executive’s death or a judicial determination of his incompetence, references in this Agreement or any other agreement to
Executive shall be deemed, where appropriate, to refer to his beneficiary or beneficiaries, estate or other legal representative. 
  
 (f) Tax Withholding. THC and THUSA may withhold from any and all payments and benefits under this Agreement all federal, state, city, or other
taxes to the extent required pursuant to any law or governmental regulation or ruling; provided that the payment of any such taxes with respect to equity awards shall be governed by the applicable plan or award agreement. 
  
 (g) Choice of Law. All questions concerning the construction, validity
and interpretation of this Agreement and the exhibits hereto shall be governed by and construed in accordance with the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether
of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York. 
  

 13 

 (h) Remedies. Executive acknowledges that the provisions of Section 2 and Sections 4 through 7
above are reasonable and necessary for the protection of THC and its affiliates, and that they may be materially and irrevocably damaged if these provisions are not specifically enforced. Accordingly, Executive agrees that, in addition to any other
relief or remedies available to THC and THUSA, and notwithstanding Section 10(l) below, THC and THUSA shall be entitled to seek an appropriate injunctive or other equitable remedy (including without limitation temporary, preliminary or permanent
injunctive relief), which rights shall be in addition to any damages and any other rights or remedies to which it may be entitled, for the purposes of restraining Executive from any actual or threatened breach of, or otherwise enforcing such
provisions, and no bond or security shall be required in connection therewith. THC and THUSA acknowledge that their covenants under Section 7 above are reasonable and necessary for the protection of Executive, and that he may be materially and
irrevocably damaged if such covenants are not specifically enforced. Accordingly, THC and THUSA each agrees that, in addition to any other relief or remedies available to Executive, and notwithstanding Section 10(l) below, Executive shall be
entitled to seek an appropriate injunctive or other equitable remedy (including without limitation temporary, preliminary or permanent injunctive relief), which rights shall be in addition to any damages and any other rights or remedies to which he
may be entitled, for the purposes of restraining THC or THUSA from any actual or threatened breach of, or otherwise enforcing, such covenants, and no bond or security shall be required in connection therewith. 
  
 (i) Amendment and Waiver. No provision in this Agreement may be
amended unless such amendment is agreed to in writing and signed by Executive and an authorized officer of THC or THUSA. No waiver by either party of any breach by the other party of any condition or provision contained in this Agreement to be
performed by such other party shall be deemed a waiver of a similar or dissimilar condition or provision at the same or any prior or subsequent time. Any waiver must be in writing, must specifically refer to the provision being waived, and must be
signed by Executive or an authorized officer of either THC or THUSA, as applicable. 
  
 (j) Business Days. If any time period for giving notice or taking action hereunder expires on a day which is a Saturday, Sunday or holiday in the state in which THUSA’s main executive offices are located,
the time period shall be automatically extended to the business day immediately following such Saturday, Sunday or holiday. 
  
 (k) Survival. The respective rights and obligations of the parties hereunder shall survive any termination of Executive’s employment, and/or
the expiration of the Employment Period in accordance with Section 1(c) hereof, in each case to the extent necessary to the intended preservation of such rights and obligations. It is specifically acknowledged and agreed between the parties that the
provisions of, and the restrictions and covenants set forth in, Section 2 and Sections 4 through 7 of this Agreement shall survive the termination of this Agreement and/or the termination of the Executive’s employment for any reason.

  
 (l) Resolution of Disputes. Any dispute or claim
between THC or THUSA and Executive arising out of, or, in connection with this Agreement, any other agreement 
  

 14 

 between Executive and THC and/or THUSA or in connection with Executive’s employment or termination thereof shall be
resolved by binding arbitration, except as provided in Section 10(h) above. The arbitration shall take place in New York City and shall be before a neutral arbitrator in accordance with the Commercial Arbitration Rules of the American Arbitration
Association, subject to modification by the National Rules for the Resolution of Employment Disputes to the extent the dispute or claim relates to employment discrimination. To the extent that Executive is the prevailing party in any such
arbitration, as determined by the arbitrator, THUSA shall reimburse him for his reasonable attorneys’ fees, costs and disbursements in such proceeding. All costs of the arbitration shall be borne equally by THC and/or THUSA, on the one hand,
and Executive on the other hand. The decision or award of the arbitrator shall be final and binding upon the parties hereto. The parties shall abide by all awards recorded in such arbitration proceedings, and all such awards may be entered and
executed upon in any court having jurisdiction over the party against whom or which enforcement of such award is sought. In no event shall any party hereto be liable for punitive or exemplary damages in any such dispute. 
  
 (m) Contractual Rights and Obligations. This Agreement establishes
contractual rights and obligations of Executive, THC and THUSA. Nothing herein shall be deemed to require THC or THUSA to segregate, earmark or otherwise set aside any funds or other assets, in trust or otherwise, for any payments that may be
required hereunder. 
  
 11. Indemnification and Directors’
and Officers’ Liability Insurance. 
  
 (a) Executive
shall be covered by directors’ and officers’ liability insurance on the same terms and conditions as the other officers and directors of THC and THUSA. 
  
 (b) Nothing in this Section 11 shall be construed as reducing or waiving any right to indemnification or advancement of
expenses that Executive would otherwise have under THC’s or THUSA’s corporate governance documents or under applicable law. 
  

 15 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

  

			
	TOMMY HILFIGER CORPORATION
	
	 /s/ David F. Dyer

	    By:	 	David F. Dyer
	    Its:	 	Chief Executive Officer and President
	
	TOMMY HILFIGER U.S.A., INC.
	
	 /s/ David F. Dyer

	    By:	 	David F. Dyer
	    Its:	 	Chief Executive Officer and President
	
	 /s/ Joel J. Horowitz

	    Joel J. Horowitz

  

 16Articles relating to the 7.625% Series B Cumltve Redmble Prefd Stock

 Exhibit 4.2 
  

BEDFORD PROPERTY INVESTORS, INC. 
  
 Articles Supplementary 
  
 7.625% Series B Cumulative Redeemable Preferred Stock 
  
 Bedford Property Investors, Inc., a Maryland corporation, (the “Corporation”), hereby certifies to the State Department of Assessments and Taxation of Maryland
that: 
  
 FIRST: Under a power contained in Article V of the Articles of Amendment
and Restatement of the Corporation (the “Charter”), the Board of Directors by duly adopted resolutions classified and designated 2,400,000 shares of authorized but unissued Preferred Stock (as defined in the Charter) as shares of 7.625%
Series B Cumulative Redeemable Preferred Stock, par value $0.01 per share, with the following preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications, and terms and
conditions of redemption, which, upon any restatement of the Charter, shall become part of Article V of the Charter, with any necessary or appropriate renumbering or relettering of the sections or subsections thereof. 
  
 Series B Preferred Stock 
  

	(1)	DESIGNATION AND NUMBER. A series of Preferred Stock, designated the “7.625% Series B Cumulative Redeemable Preferred Stock” (the “Series B Preferred
Stock”), is hereby established. The number of shares of the Series B Preferred Stock shall be 2,400,000. 

  

	(2)	RANK. The Series B Preferred Stock shall rank, with respect to dividend rights and rights upon liquidation, dissolution or winding up of the Corporation, (a) senior to all
classes or series of Common Stock of the Corporation, and to all equity securities the terms of which specifically provide that such equity securities rank junior to such Series B Preferred Stock; (b) on a parity with the Corporation’s 8.75%
Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”) and on a parity with all equity securities issued by the Corporation the terms of which specifically provide that such equity securities rank on a parity with
the Series B Preferred Stock; and (c) junior to all equity securities issued by the Corporation the terms of which specifically provide that such equity securities rank senior to the Series B Preferred Stock. The term “equity securities”
shall not include convertible debt securities. 

  

	(3)	DIVIDENDS. 

  

	 	(a)	Holders of the then outstanding shares of Series B Preferred Stock shall be entitled to receive, when and as authorized by the Board of Directors, out of funds legally available for
the payment of dividends, cumulative preferential cash dividends at the rate of 7.625% of the $25.00 liquidation preference per annum (equivalent to a fixed annual amount of $1.90625 per share). 

 Such dividends shall be cumulative from the first date on which any Series B Preferred Stock is issued
(the “Original Issue Date”) and shall be payable quarterly in arrears on or before January 15, April 15, July 15 and October 15 of each year or, if not a business day, the next succeeding business day (each, a “Dividend Payment
Date”). Any dividend payable on the Series B Preferred Stock for any partial dividend period will be computed on the basis of a 360-day year consisting of twelve 30-day months. A “dividend period” shall mean, with respect to the first
“dividend period,” the period from and including the Original Issue Date to but excluding the first Dividend Payment Date, and with respect to each subsequent “dividend period,” the period from and including a Dividend Payment
Date to but excluding the next succeeding Dividend Payment Date or other date as of which accrued dividends are to be calculated. Dividends will be payable to holders of record as they appear in the stock records of the Corporation at the close of
business on the applicable record date, which shall be the first day of the calendar month in which the applicable Dividend Payment Date falls or on such other date designated by the Board of Directors of the Corporation for the payment of dividends
that is not more than 30 nor less than 10 days prior to such Dividend Payment Date (each, a “Dividend Record Date”). 
  

	 	(b)	No dividends on shares of Series B Preferred Stock shall be declared by the Corporation or paid or set apart for payment by the Corporation at such time as the terms and provisions
of any agreement of the Corporation, including any agreement relating to its indebtedness, prohibit such declaration, payment or setting apart for payment or provide that such declaration, payment or setting apart for payment would constitute a
breach thereof or a default thereunder, or if such declaration or payment shall be restricted or prohibited by law. 

  

	 	(c)	Notwithstanding the foregoing, dividends on the Series B Preferred Stock shall accrue whether or not the terms and provisions set forth in Section 3(b) hereof at any time prohibit
the current payment of dividends, whether or not the Corporation has earnings, whether or not there are funds legally available for the payment of such dividends and whether or not such dividends are authorized or declared. Accrued but unpaid
dividends on the Series B Preferred Stock will accumulate as of the Dividend Payment Date on which they first become payable. 

  

	 	(d)	Except as provided in Section 3(e) below, unless full cumulative dividends on the Series B Preferred Stock have been or contemporaneously are declared and paid or declared and a sum
sufficient for the payment thereof is set apart for payment for all past dividend periods and the then current dividend period, no dividends (other than in shares of Common Stock or in shares of any series of Preferred Stock ranking junior to the
Series B Preferred Stock as to dividends and upon liquidation) shall be declared or paid or set aside for payment nor shall any other distribution be declared or made upon the Common Stock, or any Preferred Stock of the Corporation ranking junior to
or on a parity with the Series B Preferred Stock as to dividends or upon liquidation, nor shall any shares of Common Stock, or any shares of Preferred Stock of the Corporation ranking junior to or on a 

  

 2 

 parity with the Series B Preferred Stock as to dividends or upon liquidation be redeemed, purchased or
otherwise acquired for any consideration (or any moneys be paid to or made available for a sinking fund for the redemption of any such shares) by the Corporation (except by conversion into or exchange for other capital stock of the Corporation
ranking junior to the Series B Preferred Stock as to dividends and upon liquidation and except for transfers made pursuant to the provisions of Article VII of the Charter). 
  

	 	(e)	When dividends are not paid in full (or a sum sufficient for such full payment is not so set apart) on the Series B Preferred Stock and the shares of any other series of Preferred
Stock ranking on a parity as to dividends with the Series B Preferred Stock, all dividends declared upon the Series B Preferred Stock and any other series of Preferred Stock ranking on a parity as to dividends with the Series B Preferred Stock shall
be declared pro rata so that the amount of dividends declared per share of Series B Preferred Stock and such other series of Preferred Stock shall in all cases bear to each other the same ratio that accrued dividends per share on the Series B
Preferred Stock and such other series of Preferred Stock (which shall not include any accrual in respect of unpaid dividends for prior dividend periods if such Preferred Stock does not have a cumulative dividend) bear to each other. No interest, or
sum of money in lieu of interest, shall be payable in respect of any dividend payment or payments on Series B Preferred Stock which may be in arrears. 

  

	 	(f)	Any dividend payment made on shares of the Series B Preferred Stock shall first be credited against the earliest accrued but unpaid dividend due with respect to such shares which
remains payable. Holders of the Series B Preferred Stock shall not be entitled to any dividend, whether payable in cash, property or stock in excess of full cumulative dividends on the Series B Preferred Stock as described above.

  

	(4)	LIQUIDATION PREFERENCE. 

  

	 	(a)	Upon any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Corporation, the holders of shares of Series B Preferred Stock then outstanding are
entitled to be paid out of the assets of the Corporation, legally available for distribution to its stockholders, a liquidation preference of $25.00 per share, plus an amount equal to any accrued and unpaid dividends to the date of payment, before
any distribution of assets is made to holders of Common Stock or any series of Preferred Stock of the Corporation that ranks junior to the Series B Preferred Stock as to liquidation rights. 

  

	 	(b)	In the event that, upon any such voluntary or involuntary liquidation, dissolution or winding up, the available assets of the Corporation are insufficient to pay the amount of the
liquidating distributions on all outstanding shares of Series B Preferred Stock and the corresponding amounts payable on all shares of other classes or series of capital stock of the Corporation ranking on a parity with the 

 

 3 

 Series B Preferred Stock in the distribution of assets upon liquidation, then the holders of the Series B
Preferred Stock and all other such classes or series of capital stock shall share ratably in any such distribution of assets in proportion to the full liquidating distributions to which they would otherwise be respectively entitled. 
  

	 	(c)	After payment of the full amount of the liquidating distributions to which they are entitled, the holders of Series B Preferred Stock will have no right or claim to any of the
remaining assets of the Corporation. 

  

	 	(d)	Written notice of any such liquidation, dissolution or winding up of the Corporation, stating the payment date or dates when, and the place or places where, the amounts
distributable in such circumstances shall be payable, shall be given by first class mail, postage pre-paid, not less than 30 nor more than 60 days prior to the payment date stated therein, to each record holder of the Series B Preferred Stock at the
respective addresses of such holders as the same shall appear on the stock transfer records of the Corporation. 

  

	 	(e)	The consolidation or merger of the Corporation with or into any other corporation, trust or entity or of any other corporation with or into the Corporation, or the sale, lease or
conveyance of all or substantially all of the assets or business of the Corporation, shall not be deemed to constitute a liquidation, dissolution or winding up of the Corporation. 

  

	(5)	REDEMPTION. 

  

	 	(a)	Right of Optional Redemption. Except as set forth below, the Series B Preferred Stock is not redeemable prior to April 6, 2009. However, in order to ensure that the
Corporation remains a qualified real estate investment trust (“REIT”) for federal income tax purposes, the Series B Preferred Stock will be subject to the provisions of Article VII of the Charter. Pursuant to Article VII, and without
limitation of any provisions of such Article VII, the outstanding Capital Stock of the Corporation, including the Series B Preferred Stock, owned by a stockholder in excess of the Aggregate Stock Ownership Limit will automatically be transferred to
a Trust for the benefit of a Charitable Beneficiary and the Corporation will have the right to purchase such transferred shares from the Trust. On and after April 6, 2009, the Corporation, at its option and upon not less than 30 nor more than 60
days’ written notice, may redeem shares of the Series B Preferred Stock, in whole or in part, at any time or from time to time, for cash at a redemption price of $25.00 per share, plus all accrued and unpaid dividends thereon to and including
the date fixed for redemption (except as provided in Section 5(c) below), without interest. If less than all of the outstanding Series B Preferred Stock is to be redeemed, the Series B Preferred Stock to be redeemed shall be selected pro rata (as
nearly as may be practicable without creating fractional shares) or by any other equitable method determined by the Corporation. 

  

 4 

	 	(b)	Limitations on Redemption. Unless full cumulative dividends on all shares of Series B Preferred Stock shall have been, or contemporaneously are, declared and paid or declared
and a sum sufficient for the payment thereof set apart for payment for all past dividend periods and the then current dividend period, no shares of Series B Preferred Stock shall be redeemed unless all outstanding shares of Series B Preferred Stock
are simultaneously redeemed, and the Corporation shall not purchase or otherwise acquire directly or indirectly any shares of Series B Preferred Stock (except by exchange for capital stock of the Corporation ranking junior to the Series B Preferred
Stock as to dividends and upon liquidation); provided, however, that the foregoing shall not prevent the purchase by the Corporation of shares transferred to a Trust pursuant to Article VII in order to ensure that the Corporation remains qualified
as a REIT for federal income tax purposes or the purchase or acquisition of shares of Series B Preferred Stock pursuant to a purchase or exchange offer made on the same terms to holders of all outstanding shares of Series B Preferred Stock.

  

	 	(c)	Rights to Dividends on Shares Called for Redemption. Immediately prior to any redemption of Series B Preferred Stock, the Corporation shall pay, in cash, any accumulated and
unpaid dividends to and including the redemption date, unless a redemption date falls after a Dividend Record Date and prior to the corresponding Dividend Payment Date, in which case each holder of Series B Preferred Stock at the close of business
on such Dividend Record Date shall be entitled to the dividend payable on such shares on the corresponding Dividend Payment Date notwithstanding the redemption of such shares before such Dividend Payment Date. Except as provided above, the
Corporation will make no payment or allowance for unpaid dividends, whether or not in arrears, on Series B Preferred Stock which is redeemed. 

  

	 	(d)	Procedures for Redemption. 

  

	 	(i)	Notice of redemption will be (A) given by publication in a newspaper of general circulation in the City of New York, such publication to be made once a week for two successive weeks
commencing not less than 30 nor more than 60 days prior to the redemption date, and (B) mailed by the Corporation, postage prepaid, not less than 30 nor more than 60 days prior to the redemption date, addressed to the respective holders of record of
the Series B Preferred Stock to be redeemed at their respective addresses as they appear on the stock transfer records of the Corporation. No failure to give such notice or any defect therein or in the mailing thereof shall affect the validity of
the proceedings for the redemption of any shares of Series B Preferred Stock except as to the holder to whom notice was defective or not given. 

  

	 	(ii)	In addition to any information required by law or by the applicable rules of any exchange upon which Series B Preferred Stock may be listed or 

  

 5 

 admitted to trading, such notice shall state: (A) the redemption date; (B) the redemption price; (C) the
number of shares of Series B Preferred Stock to be redeemed; (D) the place or places where the Series B Preferred Stock is to be surrendered for payment of the redemption price; and (E) that dividends on the shares to be redeemed will cease to
accrue on such redemption date. If less than all of the Series B Preferred Stock held by any holder is to be redeemed, the notice mailed to such holder shall also specify the number of shares of Series B Preferred Stock held by such holder to be
redeemed. 
  

	 	(iii)	If notice of redemption of any shares of Series B Preferred Stock has been given and if the funds necessary for such redemption have been set aside by the Corporation in trust for
the benefit of the holders of any shares of Series B Preferred Stock so called for redemption, then, from and after the redemption date, dividends will cease to accrue on such shares of Series B Preferred Stock, such shares of Series B Preferred
Stock shall no longer be deemed outstanding and all rights of the holders of such shares will terminate, except the right to receive the redemption price. Holders of Series B Preferred Stock to be redeemed shall surrender such Series B Preferred
Stock at the place designated in such notice and, upon surrender in accordance with said notice of the certificates for shares of Series B Preferred Stock so redeemed (properly endorsed or assigned for transfer, if the Corporation shall so require
and the notice shall so state), such shares of Series B Preferred Stock shall be redeemed by the Corporation at the redemption price plus any accrued and unpaid dividends payable upon such redemption. In case less than all the shares of Series B
Preferred Stock represented by any such certificate are redeemed, a new certificate or certificates shall be issued representing the unredeemed shares of Series B Preferred Stock without cost to the holder thereof. 

  

	 	(iv)	The deposit of funds with a bank or trust corporation for the purpose of redeeming Series B Preferred Stock shall be irrevocable except that: 

  

	 	(A)	the Corporation shall be entitled to receive from such bank or trust corporation the interest or other earnings, if any, earned on any money so deposited in trust, and the holders
of any shares redeemed shall have no claim to such interest or other earnings; and 

  

	 	(B)	any balance of monies so deposited by the Corporation and unclaimed by the holders of the Series B Preferred Stock entitled thereto at the expiration of two years from the
applicable redemption dates shall be repaid, together with any interest or other earnings thereon, to the Corporation, and after any such repayment, the holders of the shares entitled to the funds so repaid 

  

 6 

 to the Corporation shall look only to the Corporation for payment without interest or
other earnings. 
  

	 	(e)	Application of Article VII. The shares of Series B Preferred Stock are subject to the provisions of Article VII of the Charter, including, without limitation, the provision
for the redemption of shares transferred to the Trust (as defined in such Article). For this purpose, the Market Price of the Series B Preferred Stock shall equal $25.00 per share, plus all accrued and unpaid dividends on the shares of Series B
Preferred Stock. 

  

	 	(f)	Status of Redeemed Shares. Any shares of Series B Preferred Stock that shall at any time have been redeemed or otherwise acquired by the Corporation shall, after such
redemption or acquisition, have the status of authorized but unissued Preferred Stock, without designation as to series until such shares are once more classified and designated as part of a particular series by the Board of Directors.

  

	(6)	VOTING RIGHTS. 

  

	 	(a)	Holders of the Series B Preferred Stock will not have any voting rights, except as set forth below. 

  

	 	(b)	Whenever dividends on any shares of Series B Preferred Stock shall be in arrears for six or more quarterly periods (a “Preferred Dividend Default”), the number of
directors of the Corporation shall be increased by two (the “Preferred Stock Directors”) and the holders of such shares of Series B Preferred Stock (voting separately as a class with the holders of Series A Preferred Stock and all other
series of Preferred Stock ranking on a parity with the Series B Preferred Stock as to dividends or upon liquidation (“Parity Preferred”) upon which like voting rights have been conferred and are exercisable) will be entitled to vote for
the election of the Preferred Stock Directors at a special meeting called by the holders of record of at least 20% of the Series B Preferred Stock or the holders of any other series of Parity Preferred, other than the Series B Preferred Stock, so in
arrears (unless such request is received less than 90 days before the date fixed for the next annual or special meeting of stockholders) or at the next annual meeting of stockholders, and at each subsequent annual meeting until all dividends
accumulated on such shares of Series B Preferred Stock for the past dividend periods and the dividend for the then current dividend period shall have been fully paid or declared and a sum sufficient for the payment thereof set aside for payment.

  

	 	(c)	If and when all accumulated dividends and the dividend for the then current dividend period on the Series B Preferred Stock shall have been paid in full or set aside for payment in
full, the holders of shares of Series B Preferred Stock shall be divested of the voting rights set forth in Section 6(b) hereof (subject to revesting in the event of each and every subsequent Preferred Dividend Default) and, if all accumulated
dividends and the dividend for the current dividend period 

  

 7 

 have been paid in full or set aside for payment in full on all other series of Parity Preferred, other
than the Series B Preferred Stock, upon which like voting rights have been conferred and are exercisable, the term of office of each Preferred Stock Director so elected shall terminate and the number of directors on the Board of Directors shall
decrease by two. Any Preferred Stock Director may be removed at any time with or without cause by the vote of, and shall not be removed otherwise than by the vote of, the holders of record of a majority of the outstanding shares of the Parity
Preferred and the Series B Preferred Stock when they have the voting rights set forth in Section 6(b) (voting separately as a class with the Parity Preferred, upon which like voting rights have been conferred and are exercisable). So long as a
Preferred Dividend Default shall continue, any vacancy in the office of a Preferred Stock Director may be filled by written consent of the Preferred Stock Director remaining in office, or, if none remains in office, by a vote of the holders of
record of a majority of the outstanding shares of Series B Preferred Stock when they have the voting rights set forth in Section 6(b) (voting separately as a class with all other series of Parity Preferred, upon which like voting rights have been
conferred and are exercisable). The Preferred Stock Directors shall each be entitled to one vote per director on any matter. 
  

	 	(d)	So long as any shares of Series B Preferred Stock remain outstanding, the Corporation shall not, without the affirmative vote of the holders of at least two-thirds of the shares of
the Series B Preferred Stock outstanding at the time, given in person or by proxy, either in writing or at a meeting (voting separately as a class), (i) authorize or create, or increase the authorized or issued amount of, any class or series of
capital stock ranking prior to the Series B Preferred Stock with respect to payment of dividends or the distribution of assets upon liquidation, dissolution or winding up, or reclassify any authorized capital stock of the Corporation into any such
shares, or create, authorize or issue any obligation or security convertible into or evidencing the right to purchase any such shares or (ii) amend, alter or repeal the provisions of the Charter, whether by merger, consolidation or otherwise (an
“Event”), so as to materially and adversely affect any right, preference, privilege or voting power of the Series B Preferred Stock or the holders thereof; provided, however, that with respect to the occurrence of any Event, so long as the
Series B Preferred Stock remains outstanding with the terms thereof materially unchanged, the occurrence of any such Event shall not be deemed to materially and adversely affect such rights, preferences, privileges or voting powers of the Series B
Preferred Stock and; provided, further, that any increase in the amount of the authorized Preferred Stock or the creation or issuance of any other series of Preferred Stock, or any increase in the amount of authorized shares of such series, in each
case ranking on a parity with or junior to the Series B Preferred Stock with respect to payment of dividends or the distribution of assets upon liquidation, dissolution or winding up, shall not be deemed to materially and adversely affect such
rights, preferences, privileges or voting powers. 

  
  

 8 

	 	(e)	The foregoing voting provisions will not apply if, at or prior to the time when the act with respect to which such vote would otherwise be required shall be effected, all
outstanding shares of Series B Preferred Stock shall have been redeemed or called for redemption upon proper notice and sufficient funds shall have been deposited in trust to effect such redemption. 

  

	(7)	CONVERSION. The Series B Preferred Stock is not convertible into or exchangeable for any other property or securities of the Corporation. 

  
 SECOND: The shares of Series B Preferred Stock have been classified and designated by the
Board of Directors under the authority contained in the Charter. 
  
 THIRD: These
Articles Supplementary have been approved by the Board of Directors in the manner and by the vote required by law. 
  
 FOURTH: The undersigned President of the Corporation acknowledges these Articles Supplementary to be the corporate act of the Corporation and, as to all matters or facts
required to be verified under oath, the undersigned President acknowledges that, to the best of his knowledge, information and belief, these matters and facts are true in all material respects and that this statement is made under the penalties of
perjury. 
  
 [SIGNATURE PAGE FOLLOWS] 
  
  

 9 

 IN WITNESS WHEREOF, the Corporation has caused these Articles Supplementary to be signed in its name and on its behalf by
its President and attested to by its Secretary on this 5th day of April, 2004. 
  

									
	 ATTEST:
	 	 	 	 BEDFORD PROPERTY INVESTORS, INC.

					
	By:	 	    /s/    Dennis Klimmek        	 	 	 	By:	 	    /s/    James Moore        (SEAL)
	 	 	
	 	 	 	 	 	

	Name:	 	Dennis Klimmek	 	 	 	Name:	 	James Moore
	Title:	 	Secretary	 	 	 	Title:	 	President

  

 10

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