Document:

Exhibit 10.3

                                  CLAIRE'S INC.
                              AMENDED AND RESTATED
                              STOCK INCENTIVE PLAN

Section 1.        Purpose

      The Plan authorizes the Committee to provide employees or directors of the
Company or its Affiliates,  who are in a position to contribute to the long-term
success of the  Company  or its  Affiliates,  with  Shares or Options to acquire
Shares in the Company.  The Company  believes that this  incentive  program will
cause those individuals to increase their interest in the welfare of the Company
and its Affiliates, and aid in attracting,  retaining and motivating individuals
of outstanding ability.

Section 2.        Definitions

      Capitalized  terms used herein  shall have the  meanings set forth in this
Section.

      (a)   "Affiliate" of any specified Person means any other Person,  whether
            now or hereafter  existing,  directly or indirectly  controlling  or
            controlled by, or under direct or indirect common control with, such
            specified Person.  For purposes hereof,  "control" or any other form
            thereof,  when used with  respect to any Person,  means the power to
            direct the  management  and  policies  of such  Person,  directly or
            indirectly,  whether through the ownership of voting securities,  by
            contract or otherwise;  and the terms "controlling" and "controlled"
            shall have meanings correlative to the foregoing.

      (b)   "Claire's  Investor"  shall mean any of Apollo  Investment  Fund VI,
            L.P., Apollo Investors Claire's A LLC, and Apollo Investors Claire's
            B LLC, and each of their successors or assigns.

      (c)   "Board" means the Board of Directors of the Company.

      (d)   "Cause"  shall have the meaning  ascribed  thereto in any  effective
            employment  agreement  between  the  Company or  Affiliates  and the
            Grantee, or if no employment  agreement is in effect that contains a
            definition  of  cause,  then  Cause  shall  mean  a  finding  by the
            Committee  that the  Grantee  has (i)  committed a felony or a crime
            involving  moral   turpitude,   (ii)  committed  any  act  of  gross
            negligence  or  fraud,   (iii)  failed,   refused  or  neglected  to
            substantially perform his duties (other than by reason of a physical
            or mental  impairment) or to implement the reasonable  directives of
            the Company  (which,  if curable,  is not cured within 30 days after
            notice  thereof to the Grantee by the  Committee),  (iv)  materially
            violated any policy of the Company (which, if curable,  is not cured
            within  30  days  after  notice   thereof  to  the  Grantee  by  the
            Committee),  or (v) engaged in conduct that is materially  injurious
            to the Company, monetarily or otherwise.

      (e)   "Committee"  shall  mean the  committee  appointed  by the  Board to
            administer the

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            Plan, or if no such committee is appointed, the Board.

      (f)   "Company"  shall mean Claire's Inc., a corporation  organized  under
            the laws of the State of Delaware.

      (g)   "Disability"   shall  have  the  meaning  ascribed  thereto  in  any
            effective employment agreement between the Company or its Affiliates
            and the  Grantee,  or if no  employment  agreement is in effect that
            contains a definition of disability,  then Disability shall mean any
            physical  or mental  incapacitation  which  results  in a  Grantee's
            inability to perform his duties and responsibilities  hereunder,  as
            determined by the Committee in its good faith judgment, for a period
            of 180 consecutive days.

      (h)   "Employee"  shall mean any individual that is providing  services to
            the Company or any of its Affiliates as an employee or director.

      (i)   "Grant Letter" shall mean a letter,  certificate or other  agreement
            accepted by the Grantee, evidencing the grant of an Option hereunder
            and containing such terms and conditions,  not inconsistent with the
            express provisions of the Plan, as the Committee shall approve.

      (j)   "Grantee" shall mean an Employee granted an Option under the Plan.

      (k)   "ISO"  shall  mean any  Option or  portion  thereof  that  meets the
            requirements  of an incentive  stock option under Section 422 of the
            Internal  Revenue  Code  of  1986,  and  that is  designated  by the
            Committee to be an ISO.

      (l)   "Nonqualified  Option" shall mean any Option or portion thereof that
            is not an ISO.

      (m)   "Options"  shall  refer to options  issued  under and subject to the
            Plan.

      (n)   "Person" means any  individual,  corporation,  partnership,  limited
            liability  company,  joint  venture,  association,  business  trust,
            joint-stock company,  estate,  trust,  unincorporated  organization,
            government or other agency or political  subdivision  thereof or any
            other legal or commercial entity.

      (o)   "Plan" shall mean this Stock  Incentive Plan as set forth herein and
            as amended from time to time.

      (p)   "Qualified  IPO" means a sale by the Company of Shares in an initial
            underwritten (firm commitment) public offering  registered under the
            Securities  Act of 1933,  with gross  proceeds to the Company of not
            less than $300 million,  resulting in the listing of the Shares on a
            nationally  recognized stock exchange,  including without limitation
            the Nasdaq Stock Market.

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      (q)   "Share" shall mean a share of common stock of the Company, or of any
            class of  security,  if any,  into  which such  common  stock may be
            converted or for which such common stock may be exchanged.

      (r)   "Specified Conduct" means a Grantee's (i) unauthorized disclosure of
            confidential  information relating to the Company or its Affiliates,
            (ii)  engaging,  directly or  indirectly,  as an employee,  partner,
            consultant,  director,  stockholder,  owner,  or agent in any retail
            business  that  derives  20% or more of its  business  from sales of
            jewelry, accessories and/or cosmetics targeted to girls and women (a
            "Competing  Business"),  (iii)  inducing or attempting to induce any
            customer,  vendor, supplier,  licensor or other Person in a business
            relationship  with the Company or any  Affiliate,  for or with which
            the Grantee or employees working under the Grantee's supervision had
            any  direct  or  indirect   responsibility  or  contact  during  the
            Grantee's  employment with the Company or its Affiliates,  (A) to do
            business  with a  Competing  Business  or (B)  to  cease,  restrict,
            terminate  or  otherwise  reduce  business  with the  Company or its
            Affiliates  for the benefit of a Competing  Business,  regardless of
            whether the Grantee initiates contact,  or (iv) hiring,  directly or
            indirectly, any individual who was an employee of the Company or its
            Affiliates  within  the six month  period  prior to  termination  of
            Grantee's  employment,  or  soliciting  or  inducing,   directly  or
            indirectly,  any such  individual to terminate his or her employment
            with the Company or its Affiliates.

Section 3.        Shares Available under the Plan

      Subject to the  provisions  of Section 7, the total  number of Shares that
may be issued under the Plan shall not exceed 6,860,000.  If, prior to exercise,
any awards are forfeited,  lapse or terminate for any reason without issuance of
Shares,  the Shares  covered  thereby may again be available  for Option  grants
under the Plan.

Section 4.        Administration of the Plan

      (a)  Authority of the  Committee.  The Plan shall be  administered  by the
Committee.  The  Committee  shall  have  full and  final  authority  to take the
following actions, in each case subject to and consistent with the provisions of
the Plan:

            (i) to  select  the  Employees  to whom  Options  or  Shares  may be
      granted;

            (ii) to  determine  the  number of Shares  awarded  or subject to an
      Option;

            (iii) to determine the terms and  conditions of any Shares or Option
      granted  under  the  Plan,  including  the  purchase  or  exercise  price,
      conditions relating to exercise, and termination of the right to exercise;

            (iv)  to  determine  whether  any  Option  shall  be  an  ISO  or  a
      Nonqualified Option;

            (v) to  determine  the  restrictions  or  conditions  related to the
      delivery, holding and

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      disposition of Shares;

            (vi) to prescribe the form of each Grant Letter;

            (vii) to adopt,  amend,  suspend,  waive and rescind  such rules and
      regulations and appoint such agents as the Committee may deem necessary or
      advisable to administer the Plan;

            (viii) to correct any defect or supply any omission or reconcile any
      inconsistency  in the Plan and to construe and  interpret the Plan and any
      Option or award of Shares, or Grant Letter or other instrument  hereunder;
      and

            (ix)  to make  all  other  decisions  and  determinations  as may be
      required  under  the  terms  of the  Plan  or as the  Committee  may  deem
      necessary or advisable for the administration of the Plan.

      (b) Manner of Exercise of Committee Authority. Any action of the Committee
with respect to the Plan shall be final,  conclusive and binding on all Persons,
including the Company,  its  Affiliates,  Grantees,  or any Person  claiming any
rights  under the Plan from or  through  any  Grantee,  except to the extent the
Committee may subsequently  modify,  or take further action not consistent with,
its prior action.  If not specified in the Plan, the time at which the Committee
must or may make any determination shall be determined by the Committee, and any
such  determination  may  thereafter be modified by the  Committee.  The express
grant of any specific  power to the  Committee,  and the taking of any action by
the Committee,  shall not be construed as limiting any power or authority of the
Committee.  The Committee may delegate to officers or managers of the Company or
any  Affiliate  of the  Company  the  authority,  subject  to such  terms as the
Committee  shall  determine,  to perform  such  functions as the  Committee  may
determine, to the extent permitted under applicable law.

      (c)  Limitation  of  Liability.  Each  member  of the  Committee  shall be
entitled  to, in good  faith,  rely or act upon any report or other  information
furnished  to him by any officer or other  employee of the Company or any of its
Affiliates,  the  Company's  independent  certified  public  accountants  or any
executive compensation consultant,  legal counsel or other professional retained
by the  Company  to assist in the  administration  of the Plan.  To the  fullest
extent permitted by applicable law, no member of the Committee,  nor any officer
or  employee  of the  Company  acting  on  behalf  of the  Committee,  shall  be
personally liable for any action,  determination or interpretation taken or made
in good faith with respect to the Plan, and all members of the Committee and any
officer or  employee of the Company  acting on its behalf  shall,  to the extent
permitted by law, be fully indemnified and protected by the Company with respect
to any such action, determination or interpretation.

Section 5.        Option Termination.

      Unless  otherwise  determined  by the  Committee  and set forth in a Grant
Letter, Options shall terminate on the earliest of:

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            (a) the 91st day  following  the date the  Grantee  ceases  to be an
      Employee for any reason  (except if such  cessation is on account of death
      or Disability, the 181st day following such cessation); provided, however,
      that (i) in all cases the portion of any Option that did not vest prior to
      or upon the date of  termination  of  employment  or  engagement  with the
      Company or its Affiliates for any reason shall terminate  immediately upon
      such  termination,  and (ii) if such  termination is for Cause, the vested
      portion shall terminate as well;

            (b) the seventh anniversary of the date of grant as set forth in the
      Grant Letter; and

            (c) cancellation,  termination or expiration of the Options pursuant
      to action taken by the Committee in accordance with Section 7.

Section 6.        Exercise of Options

      (a) Only the vested  portion of any  Option  may be  exercised.  A Grantee
shall  exercise an Option by delivery of written  notice to the Company  setting
forth the number of Shares with respect to which the Option is to be  exercised,
together with cash, a certified  check or bank draft payable to the order of the
Company,  in amount equal to the sum of the  exercise  price for such Shares and
any  withholding tax obligation  arising in connection  with such exercise.  The
Committee may, in its sole discretion,  permit other forms of payment, including
notes or  other  contractual  obligations  of a  Grantee  to make  payment  on a
deferred basis.

      (b) Before the  Company  issues  any Shares to a Grantee  pursuant  to the
exercise  of an Option,  the  Company  shall have the right to require  that the
Grantee  make  such  provision,  or  furnish  the  Company  such  authorization,
necessary  or  desirable  so that the Company may satisfy its  obligation  under
applicable  tax laws to withhold  for income or other taxes due upon or incident
to such exercise. The Committee, may, in its discretion, permit such withholding
obligation  to be  satisfied  through  the  withholding  of  Shares  that  would
otherwise be delivered upon exercise of the Option.

      (c) As a  condition  to the grant of an Option or  delivery  of any Shares
upon exercise of an Option, the Company shall have the right to require that the
Grantee become party to any stockholders agreement then in effect.

Section 7.        Adjustment Upon Changes in Capitalization

      In  the  event   any   recapitalization,   forward   or   reverse   split,
reorganization,   merger,  consolidation,   spin-off,  combination,  repurchase,
exchange or issuance of Shares or other securities,  any stock dividend or other
special and nonrecurring  dividend or distribution (whether in the form of cash,
securities  or other  property),  liquidation,  dissolution,  or  other  similar
transactions or events,  affects the Shares,  then the Committee shall make such
equitable  adjustment as it determines in its discretion is appropriate in order
to prevent  dilution or  enlargement  of the rights of Grantees  under the Plan,
including adjustment in (i) the number and kind of Shares deemed to be available
thereafter  for grants of Options or Shares under Section 3, (ii) the number and
kind of Shares that may be delivered or deliverable in respect of outstanding

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Options, and (iii) the exercise price. In addition,  the Committee is authorized
to make  such  adjustments  as it  shall in its sole  discretion  determine  are
appropriate  in the terms and  conditions  of,  and the  criteria  included  in,
Options and Shares (including,  without  limitation,  cancellation of Options in
exchange for the  in-the-money  value,  if any, of the vested  portion  thereof,
cancellation of unvested and/or  out-of-the-money  Options for no consideration,
substitution  of  Options  using  securities  of a  successor  or other  entity,
acceleration  of the time that Options  expire,  or  adjustment  of  performance
targets or the manner in which they are calculated) in recognition of unusual or
nonrecurring events (including,  without  limitation,  an event described in the
preceding sentence)  affecting the Company,  the Claire's Investors or any other
Affiliate  of the  Company  or the  financial  statements  of the  Company,  the
Claire's Investors or any Affiliate of the Company, or in response to changes in
applicable laws, regulations or accounting principles.

Section 8.        Restrictions/Rights on Shares.

      (a)  Restrictions  on  Issuing  Shares.  No  Shares  shall  be  issued  or
transferred to an Employee under the Plan unless and until all applicable  legal
requirements  have been complied with to the satisfaction of the Committee.  The
Committee  shall have the right to condition  the  acquisition  of Shares on the
Grantee's  undertaking  in  writing  to  comply  with such  restrictions  on any
subsequent  disposition  of the Shares issued or  transferred  thereunder as the
Committee  shall deem necessary or advisable as a result of any applicable  law,
regulation, official interpretation thereof, or any underwriting agreement.

      (b) ISO Notice.  A Grantee shall notify the Company of any  disposition of
Shares  acquired upon exercise of an ISO if such  disposition  occurs within one
year of the date of such  exercise  or within  two years of the date of grant of
such ISO.  The  Company  may impose  such  procedures  as it  determines  may be
necessary to ensure that such notification is made.

      (c) Transfer Restrictions.  Except for transfers made pursuant to Sections
8(d), (e) or (f) below,  Shares issued to a Grantee pursuant to the Plan may not
be sold, pledged, encumbered or otherwise transferred, other than by the laws of
decent and  distribution  (but such Shares shall in any event remain  subject to
the terms of the Plan and Grant Certificate).

      (d) Repurchase Right.  Unless otherwise  determined in a Grant Letter, the
Company shall have the right (but not the  obligation)  to repurchase any or all
of the Shares acquired upon exercise of the Options upon a Grantee's  ceasing to
be an Employee for any reason.  Such right shall be  exercisable  by the Company
during the one year period  following the later of the date of such cessation or
the date the Option is exercised.  The price per Share to be paid by the Company
should it choose to exercise  its  repurchase  right shall equal the fair market
value per share, as determined by the Board in good faith; provided, however, if
the Shares are to be repurchased following a termination for Cause, or if, prior
to such repurchase the Grantee engages in Specified Conduct,  then the price per
Share to be paid by the Company shall not exceed the price per Share paid by the
Grantee,  less any  distributions  paid in respect of such Share.  The price per
Share to be paid by the  Company  should it choose to  exercise  its  repurchase
right shall be paid in cash or by plain check against  delivery of  certificates
representing the repurchased Shares; provided that, if such payment would result
in a default or

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breach  on the part of the  Company  or any  subsidiary  under any loan or other
agreement,  then payment shall be deferred  until the first business day that it
may occur  without any such default or breach  existing or  resulting  (and such
deferral  shall be credited  with a market rate of interest as determined by the
Committee),  provided,  further that if such  payment  cannot be made within two
years of the date of such  repurchase,  the  Grantee  may elect to  cancel  such
repurchase  and  receive a return of the  repurchased  Shares.  The  Company may
offset  against the  payment of the  repurchase  price any  amounts  owed by the
Grantee to the  Company or any  Affiliate  of the  Company.  Should the  Company
choose not to exercise its repurchase  right, or is otherwise  prohibited by law
or contract from doing so, any Claire's  Investor or its controlling  Affiliates
may exercise such right as if it were the Company.

      (e) Drag-Along Right. If one or more Claire's  Investors notifies a holder
of  Shares  issued  under  the  Plan  that it or  they  desires  to sell  Shares
representing  at least a majority of the  outstanding  Shares of the Company and
specifies the terms and conditions of such proposed  transfer,  then such holder
shall take all  necessary  and desirable  actions  reasonably  requested by such
Claire's  Investors in connection with the consummation of such sale, and within
ten (10)  business  days of the receipt of such notice (or such longer period of
time as such  Claire's  Investors  shall  designate  in such notice) such holder
shall  cause a pro  rata  number  of his  Shares  to be  sold to the  designated
purchaser on the same terms and conditions for the same per share  consideration
and at the same time as the Shares  being sold by such  Claire's  Investors.  In
furtherance,  and not in limitation, of the foregoing, in connection with such a
sale, such holder will, (i) consent to and raise no objections  against the sale
or the process  pursuant to which it was  arranged,  (ii) waive any  dissenter's
rights and other similar rights and (iii) execute all documents  containing such
terms and conditions as those executed by such Claire's Investors as directed by
such Claire's Investors.

      (f) Tag-Along  Right.  If one or more Claire's  Investors  desires to sell
Shares representing at least a majority of the outstanding Shares of the Company
(disregarding  any sale to Affiliates of such  Claire's  Investor),  the Company
shall  notify a holder of Shares in  writing.  After  such  notice,  a holder of
Shares issued under the Plan may, but is not  obligated  to, by written  notice,
request that such Claire's Investor cause such designated  purchaser to purchase
on the same terms and conditions as are  applicable to such Claire's  Investor's
Shares,  the number of such holder's Shares to be sold, which as a percentage of
such Holder's Shares shall not exceed the percentage of such Claire's Investor's
Shares to be sold.  The  Company  shall cause such  Claire's  Investor to agree,
within ten (10)  business  days of the  receipt of such  notice (or such  longer
period of time as such  Claire's  Investor  shall  designate  in such notice) to
cause such holder's  Shares to be purchased by the  designated  purchaser on the
same terms and conditions for the same per share  consideration  and at the same
time as the sale of the Claire's  Investor's Shares. In furtherance,  and not in
limitation,  of the foregoing, in connection with such a sale, such holder will,
(i) consent to and raise no objections  against the sale or the process pursuant
to which it was arranged,  (ii) waive any  dissenter's  rights and other similar
rights and (iii) execute all documents  containing  such terms and conditions as
those executed by such Claire's Investor as directed by such Claire's Investor.

      (g) Voting. Each holder of Shares issued under the Plan shall be deemed to
have  irrevocably  appointed  Apollo  Management  VI,  L.P. on behalf of certain
affiliated co-investment

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partnerships  (with  full power of  substitution),  as such  holder's  proxy and
attorney-in-fact  (in such  capacity,  the "Proxy  Holder")  to vote and give or
withhold  consent,  with respect to all Shares held by such  stockholder  at any
time,  for all  matters  subject to the vote of such holder from time to time in
such  manner  as the  Proxy  Holder  shall  determine  in its sole and  absolute
discretion, whether at any meeting (whether annual or special and whether or not
an adjourned meeting) of the Company or by written consent or otherwise,  giving
and  granting  to the Proxy  Holder  all powers  such  holder  would  possess if
personally present and hereby ratifying and confirming all that the Proxy Holder
shall lawfully do or cause to be done by virtue  hereof.  The Proxy Holder shall
not have any  liability  to any holder of Shares as a result of any action taken
or failure to take action  pursuant to the foregoing proxy except for any action
or failure to take  action not taken or omitted in good faith or which  involves
intentional  misconduct or a knowing  violation of  applicable  law. The Company
acknowledges  the validity of the  foregoing  irrevocable  proxy,  and agrees to
recognize  the Proxy Holder as the sole  attorney and proxy for each such holder
of Shares at all times.

      (g) Qualified  IPO. The rights and  restrictions  contained in subsections
(d), (e) and (f) above shall lapse upon a Qualified IPO, and the restrictions in
paragraph (c) shall lapse on the first anniversary of a Qualified IPO; provided,
however,  that unless otherwise determined by the Committee,  each Grantee shall
enter into such  standstill  agreements  and related  agreements as the managing
underwriters of such Qualified IPO may request.

      (h) Certificates for Shares. Shares issued under the Plan may be evidenced
in such manner as the Committee shall  determine.  If certificates  representing
Shares are registered in the name of a Grantee,  such  certificates  may bear an
appropriate  legend  referring  to  the  terms,  conditions,   and  restrictions
applicable to such Shares, and the Company may retain physical possession of the
certificates,  in which case the Grantee  shall be required to have  delivered a
power of transfer to the Company, endorsed in blank, relating to the Shares.

      (i) Third Party  Beneficiaries  Rights.  The Claire's  Investors and their
Affiliates shall be third party beneficiaries under subsections (d) and (e), and
Apollo  Management VI, L.P. shall be a third party  beneficiary under subsection
(g), and they each shall be entitled to enforce  their rights  thereunder  as to
any Grantee.

Section 9.        General Provisions

      (a) Grant Letter.  Each award under the Plan shall be evidenced by a Grant
Letter.  The terms and  provisions of such Grant Letters may vary among Grantees
and among different awards granted to the same Grantee.

      (b) No Right to  Employment.  The grant of an award  under the Plan in any
year shall not give the Grantee any right to similar grants in future years, any
right to continue such Grantee's employment relationship with the Company or its
Affiliates,  or, with respect to an Option,  until the Option is  exercised  and
Shares are issued,  any rights as a  stockholder  of the  Company.  All Grantees
shall remain  subject to discharge to the same extent as if the Plan were not in
effect. For purposes of the Plan, a Grantee shall cease to be an Employee upon a
sale of any  subsidiary  of the Company that  employs or engages  such  Grantee,
unless the Grantee shall

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otherwise  continue to provide services to the Company or another  subsidiary of
the Company as an employee or director.

      (c) No Funding.  No Grantee,  and no beneficiary or other Persons claiming
under or through the Grantee,  shall have any right, title or interest by reason
of any  award  under  the  Plan  to any  particular  assets  of the  Company  or
Affiliates of the Company,  or any Shares allocated or reserved for the purposes
of the Plan or subject to any Option  except as set forth  herein.  The  Company
shall not be required to  establish  any fund or make any other  segregation  of
assets to assure satisfaction of the Company's obligations under the Plan.

      (d) No Transfers. No Option may be sold, transferred, assigned, pledged or
otherwise  encumbered,  except by will or the laws of descent and  distribution,
and an Option shall be  exercisable  during the  Grantee's  lifetime only by the
Grantee.  Upon a  Grantee's  death,  the  estate  or other  beneficiary  of such
deceased  Grantee  shall be subject to all the terms and  conditions of the Plan
and Grant Letter,  including the provisions  relating to the  termination of the
right to exercise an Option.

      (e)  Governing  Law;  Jurisdiction.  The  Plan  shall be  governed  by and
construed in accordance  with the laws of the State of Illinois,  without giving
effect to any choice of law or conflict of law provision or rule (whether of the
State of Illinois or any other jurisdiction) that would cause the application of
the laws of any  jurisdiction  other than the State of  Illinois,  except to the
extent  that the  Delaware  General  Corporation  Law applies as a result of the
Company being incorporated in the State of Delaware,  in which case the Delaware
General Corporation Law shall apply. Each Grantee, and each beneficiary or other
Person claiming under or through the Grantee by accepting the grant of an Option
consents to the  exclusive  jurisdiction  of any state or federal  court located
within the State of Illinois, agrees that all actions or proceedings relating to
the Plan shall be  litigated  in such  courts,  waives any  defense of forum non
conveniens,  and  agrees  to be bound by any final  and  nonappealable  judgment
rendered  thereby in  connection  with the Plan.  To the extent the Grantee is a
party to an employment  agreement with the Company or any of its Affiliates that
provides  for binding  arbitration  of  employment  disputes,  then any disputes
between the Company and such Grantee  arising under the Plan shall be arbitrated
in accordance with the procedures set forth in such employment agreement.

      (f) Currency. The Committee, in its discretion,  may permit payment of any
exercise  price or  purchase  price for Shares in any  currency  other than U.S.
dollars,  based on  prevailing  exchange  rates,  as  determined  by  procedures
established by the Committee.

Section 10.       Amendment or Termination

      In addition to its authority  elsewhere in the Plan, the Committee may, at
any time,  amend or terminate the Plan or any Grant Letter;  provided,  however,
that, no such action shall adversely  affect the rights of Grantees with respect
to Options or other  awards  previously  granted  hereunder  or under such Grant
Letter.

                                       9Exhibit 10.4

                                  CLAIRE'S INC.
                               2400 W. Central Rd.
                            Hoffman Estates, IL 60192

[date]

[name]
[address]

Re:   Grant of Stock Options

Dear [first name]:

We are  pleased to inform  you that you have been  granted  options to  purchase
_________(1) shares of common stock of Claire's Inc. (the "Company"), the parent
company of Claire's  Stores,  Inc. As further  described below, the options have
varying  features  relating to vesting and are denominated as a "Time Option," a
"Target Performance  Option," and a "Stretch  Performance Option." These options
are collectively referred to as the "Options," and the Target Performance Option
and  the  Stretch  Performance  Option  are  collectively  referred  to  as  the
"Performance  Options."  The Time Option and the  Performance  Options have been
granted  pursuant to the Company's Stock Incentive Plan (the "Plan"),  a copy of
which is  attached  as  Exhibit A, and the  Options  and  underlying  Shares are
subject  in all  respects  to the  provisions  of the Plan  (including,  without
limitation,  Section 8), except as  specifically  modified  hereby.  Capitalized
terms not  otherwise  defined in the text or in  paragraph  7 are defined in the
Plan.

1.    Time Option: The key terms of the Time Option are as follows:

      (a)   Number of Shares. __________

      (b)   Exercise Price per Share. $10.00

      (c)   Vesting.  The Time Option will vest and become  exercisable  in four
            equal annual  installments on May 29 of each of 2008, 2009, 2010 and
            2011,  provided  that the Time Option will become  fully  vested and
            exercisable immediately prior to a Change of Control.

2.    Target Performance  Option: The key terms of the Target Performance Option
      are as follows:

      (a)   Number of Shares. ___________

      (b)   Exercise Price per Share. $10.00

      (c)   Vesting.  If on any Measurement  Date, the Value Per Share equals or
            exceeds the Target Stock Price (the "Target Performance Goal"), then
            (1)

----------
(1)   total of 1(a), 2(a), and 3(a)

<PAGE>

            if such  Measurement  Date is  other  than  the  date of a  Claire's
            Investors  Liquidity Event, the Target  Performance Option will vest
            and become  exercisable in two equal annual  installments on each of
            the first two anniversaries of such Measurement Date,  provided that
            if a Change of Control occurs after any such  Measurement  Date, any
            unvested  installment shall become fully vested immediately prior to
            the Change of Control,  and (2) if such Measurement Date is the date
            of a Claire's  Investors  Liquidity  Event,  the Target  Performance
            Option will become fully vested and immediately  exercisable at such
            time.

3.    Stretch  Performance  Option:  The key  terms of the  Stretch  Performance
      Option are as follows:

      (a)   Number of Shares. ____________

      (b)   Exercise Price per Share. $10.00

      (c)   Vesting.  If on any Measurement  Date, the Value Per Share equals or
            exceeds the Stretch  Target  Stock Price (the  "Stretch  Performance
            Goal"),  then (1) if such Measurement Date is other than the date of
            a Claire's Investors Liquidity Event, the Stretch Performance Option
            will vest and become exercisable in two equal annual installments on
            each  of the  first  two  anniversaries  of such  Measurement  Date,
            provided  that  if  a  Change  of  Control  occurs  after  any  such
            Measurement Date, any unvested installment shall become fully vested
            immediately  prior  to the  Change  of  Control,  and  (2)  if  such
            Measurement  Date is the  date  of a  Claire's  Investors  Liquidity
            Event, the Stretch  Performance  Option will become fully vested and
            immediately exercisable at such time.

4.    Termination of the Options. The Options shall terminate pursuant to the
      provisions of Section 5 of the Plan, provided that Performance Options
      shall terminate no later than the date of a Claire's Investors Liquidity
      Event to the extent the Target Performance Goal or the Stretch Performance
      Goal, as applicable, is not achieved at such time, or was not previously
      achieved.

5.    Representations. By accepting this award of Options, you represent to the
      following, and understand that the Company would not have granted this
      award to you but for your representations and acknowledgements below.

      (a)   Shares Unregistered; Investor Knowledge. You acknowledge and agree
            that (i) neither the grant of the Options nor the offer to acquire
            Shares upon exercise thereof has been registered under applicable
            securities laws; (ii) there is no established market for the Shares
            and it is not anticipated that there will be any such market for the
            Shares in the foreseeable future; and (iii) your knowledge and
            experience in financial and business matters are such that you are
            capable of evaluating the merits and risks of any investment in the
            Shares.

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<PAGE>

      (b)   Acknowledgement. You acknowledge and agree that: (i) this award is a
            one-time benefit, which does not create any contractual or other
            right to receive future awards, or benefits in lieu of awards; (ii)
            all determinations with respect to any such future awards,
            including, but not limited to, the times when awards shall be
            granted, the number of shares subject to each award, the exercise or
            purchase price, and the time or times when each award shall vest,
            will be at the sole discretion of the Company; (iii) this award is
            not part of normal or expected compensation for purposes of
            calculating any severance, resignation, redundancy, end of service
            payments, bonuses, long-service awards, pension or retirement
            benefits or similar payments; and (iv) THAT THIS AWARD SHALL NOT
            CREATE A RIGHT TO FURTHER EMPLOYMENT WITH THE COMPANY OR ITS
            AFFILIATES AND SHALL NOT INTERFERE WITH THE ABILITY OF THE COMPANY
            OR ANY OF ITS AFFILIATES TO TERMINATE YOUR EMPLOYMENT RELATIONSHIP
            AT ANY TIME, AND UPON TERMINATION OF YOUR EMPLOYMENT FOR ANY REASON
            WHATSOEVER, ANY RIGHTS IN RESPECT OF THE OPTIONS OR THE UNDERLYING
            SHARES TO WHICH YOU WOULD HAVE BEEN ENTITLED HAD YOUR EMPLOYMENT NOT
            TERMINATED SHALL LAPSE UPON THE DATE OF TERMINATION UNLESS EXPRESSLY
            STATED OTHERWISE HEREIN OR THE PLAN, AND YOU SHALL NOT BE ENTITLED
            TO ANY COMPENSATION IN RESPECT OF LOSS OF ALL OR ANY OF THE OPTIONS
            OR UNDERLYING SHARES.

      (c)   Employee Data Privacy. You consent to the collection, use and
            transfer of personal data as described in this paragraph 5(c). You
            understand that the Company and its Affiliates hold certain personal
            information about you including, but not limited to, your name, home
            address and telephone number, date of birth, social security number,
            salary, nationality, job title, common shares or directorships held
            in the Company, details of all other entitlement to common shares
            awarded, cancelled, exercised, vested, unvested or outstanding in
            your favor, for the purpose of managing and administering this award
            ("Data"). You further understand that the Company and/or its
            Affiliates will transfer Data among themselves as necessary for the
            purposes of implementation, administration and management of this
            award, and that the Company and/or any of its Affiliates may each
            further transfer Data to any third parties assisting the Company in
            such implementation, administration and management. You authorize
            them to receive, possess, use, retain and transfer Data in
            electronic or other form, for the purposes of implementing,
            administering and managing this award, including any requisite
            transfer of such Data as may be required for the administration of
            this award and/or the subsequent holding common shares on your
            behalf to a broker or other third party with whom the shares
            acquired on exercise may be deposited. You understand that he or she
            may, at any time, view the Data, require any

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<PAGE>

            necessary amendments to it or withdraw the consent herein in writing
            by contacting the local human resources representative.

      (d)   Confidentiality. You agree not to disclose or discuss in any way the
            terms of this award to or with anyone other than members of your
            immediate family, or your personal counsel or financial advisors
            (and you will advise such persons of the confidential nature of this
            offer).

6.    Vesting upon Death/Disability. As to the Time Option, as well as the
      Performance Options where the Target Performance Goal or Stretch
      Performance Goal, as applicable, had previously been achieved, a portion
      of each such Option will become vested and exercisable upon termination of
      your employment with the Company and its Affiliates by reason of your
      death or Disability, such portion to equal the portion of each such Option
      that would have vested on the next scheduled vesting date had your
      employment not so terminated, multiplied by a fraction, the numerator of
      which is the number of days that elapsed from the most recent vesting date
      to the date of such termination, and the denominator of which is 365.

7.    Definitions. For purposes of this letter:

      (a)   "Apollo" means Apollo Management VI, L.P. and its Affiliates or any
            entity controlled thereby or any of the partners thereof.

      (b)   "Board" means the board of directors of the Company, or any
            committee thereof duly authorized to act on behalf of the Board.

      (c)   "Capital Stock" of any Person means any and all shares, interests,
            rights to purchase, warrants, options, participations or other
            equivalents of or interests in, however designated, equity of such
            Person, including any Preferred Stock, but excluding any debt
            securities convertible into such equity.

      (d)   "Change of Control" means:

            (i)   any event occurs the result of which is that any "Person," as
                  such term is used in Sections 13(d) and 14(d) of the Exchange
                  Act, other than one or more Permitted Holders or their Related
                  Parties, becomes the beneficial owner, as defined in Rules
                  l3d-3 and l3d-5 under the Exchange Act (except that a Person
                  shall be deemed to have "beneficial ownership" of all shares
                  that any such Person has the right to acquire within one year)
                  directly or indirectly, of more than 50% of the Voting Stock
                  of the Company or any successor company thereto, including,
                  without limitation, through a merger or consolidation or
                  purchase of Voting Stock of the Company; provided that none of
                  the Permitted Holders or their Related Parties have the right
                  or ability by voting power, contract or otherwise to elect or
                  designate for election a majority of the Board;

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<PAGE>

                  provided further that the transfer of 100% of the Voting Stock
                  of the Company to a Person that has an ownership structure
                  identical to that of the Company prior to such transfer, such
                  that the Company becomes a wholly owned Subsidiary of such
                  Person, shall not be treated as a Change of Control;

            (ii)  after an initial public offering of Capital Stock of the
                  Company during any period of two (2) consecutive years,
                  individuals who at the beginning of such period constituted
                  the Board, together with any new directors whose election by
                  such Board or whose nomination for election by the
                  stockholders of the Company was approved by a vote of a
                  majority of the directors of the Company then still in office
                  who were either directors at the beginning of such period or
                  whose election or nomination for election was previously so
                  approved, cease for any reason to constitute a majority of the
                  Board then in office;

            (iii) the sale, lease, transfer, conveyance or other disposition, in
                  one or a series of related transactions other than a merger or
                  consolidation, of all or substantially all of the assets of
                  the Company and its Subsidiaries taken as a whole to any
                  Person or group of related Persons other than a Permitted
                  Holder or a Related Party of a Permitted Holder; or

            (iv)  the adoption of a plan relating to the liquidation or
                  dissolution of the Company.

      (e)   "Claire's Investors Liquidity Event" means any transaction
            (including, without limitation, a stock sale, redemption or buy
            back, merger, consolidation or otherwise) immediately following
            which all of the Shares held by all Claire's Investors have been
            exchanged for or converted into consideration, all or substantially
            all of which consists of cash or readily marketable securities that
            the Claire's Investors can immediately resell for cash at prevailing
            quoted prices without legal, contractual or market restrictions.

      (f)   "Exchange Act" means the Securities Exchange Act of 1934, as
            amended.

      (g)   "Investor Sale" means of sale of Shares by a Claire's Investor in
            connection with or following a Qualified Public Offering.

      (h)   "Investor Percentage" means the percentage derived by dividing (i)
            the number of Shares of Common Stock held by all Claire's Investors
            immediately following the applicable Investor Sale, by (ii) the
            number of Shares held by all Claire's Investors as of the date
            hereof (subject to adjustment for stock splits etc.).

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<PAGE>

      (i)   "Fully Diluted Shares" means, on any Measurement Date, the number of
            Shares outstanding, plus the number of Shares subject to all
            outstanding options, warrants and rights to acquire Shares, whether
            or not exercisable.

      (j)   "Measurement Date" means (1) prior to a Qualified IPO, the last day
            of any fiscal quarter, starting with the last day of the eighth full
            fiscal quarter after May 29, 2007, (2) following a Qualified IPO,
            each trading day, starting with the 90th trading day following the
            Qualified IPO, or (3) the date of a Claire's Investors Liquidity
            Event, whether before or after a Qualified IPO.

      (k)   "Net Equity Value" means (1) 8.5 multiplied by the Company's
            consolidated earnings, before interest, income taxes, depreciation
            and amortization ("EBITDA") for the four fiscal quarters ending upon
            a Measurement Date, plus (2) the sum of cash, cash equivalents, and
            the aggregate exercise price of all outstanding options or warrants
            to purchase Shares, whether or not exercisable, in each case as of
            the Measurement Date, less (3) all debt and capital leases
            outstanding as of the Measurement Date. EBITDA, cash and debt shall
            be determined by the Committee based on the Company's financial
            statements for such period, subject to such adjustments to reflect
            unusual, nonrecurring or extraordinary events as the Committee shall
            deem equitable and appropriate.

      (l)   "Permitted Holder" means Apollo.

      (m)   "Preferred Stock" as applied to the Capital Stock of any corporation
            means Capital Stock of any class or classes, however designated,
            that is preferred as to the payment of dividends, or as to the
            distribution of assets upon any voluntary or involuntary liquidation
            or dissolution of such corporation, over shares of Capital Stock of
            any other class of such corporation.

      (n)   "Related Party" means:

            (i)   any controlling stockholder, 50% (or more) owned Subsidiary,
                  or immediate family member (in the case of an individual) of
                  any Permitted Holder; or

            (ii)  any trust, corporation, partnership, limited liability company
                  or other entity, the beneficiaries, stockholders, partners,
                  members, owners or Persons beneficially holding an 50% or more
                  controlling interest of which consist of any one or more
                  Permitted Holders and/or such other Persons referred to in the
                  immediately preceding clause (1).

      (o)   "Stretch Target Stock Price" means $10.00, accumulated at an
            effective annual rate of 32% from May 29, 2007 to the Measurement
            Date, provided

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<PAGE>

            that the Committee shall make such adjustment to the Stretch Target
            Stock Price as it reasonably determines is equitable and appropriate
            to reflect changes to the outstanding Shares or capital structure of
            the Company, including contributions and distributions of capital.

      (p)   "Subsidiary" means, with respect to any specified Person:

            (i)   any corporation, association or other business entity of which
                  more than 50% of the total voting power of shares of Capital
                  Stock entitled (without regard to the occurrence of any
                  contingency and after giving effect to any voting agreement or
                  stockholders' agreement that effectively transfers voting
                  power) to vote in the election of directors, managers or
                  trustees of the corporation, association or other business
                  entity is at the time owned or controlled, directly or
                  indirectly, by that Person or one or more of the other
                  Subsidiaries of that Person (or a combination thereof); and

            (ii)  any partnership (a) the sole general partner or the managing
                  general partner of which is such Person or a Subsidiary of
                  such Person or (b) the only general partners of which are that
                  Person or one or more Subsidiaries of that Person (or any
                  combination thereof).

      (q)   "Target Stock Price" means $10.00, accumulated at an effective
            annual rate of 22.5% from May 29, 2007 to the Measurement Date,
            provided that the Committee shall make such adjustment to the Target
            Stock Price as it determines is equitable and appropriate to reflect
            changes to the outstanding Shares or capital structure of the
            Company, including contributions and distributions of capital.

      (r)   "Value Per Share" means (1) prior to a Qualified IPO, the Net Equity
            Value divided by the Fully Diluted Shares, (2) following a Qualified
            IPO, the average closing price of a Share for the period of 90
            consecutive trading days ending on the Measurement Date, or (3) upon
            a Claire's Investors Liquidity Event, the price per Share realized
            by the Claire's Investors.

      (s)   "Voting Stock" of an entity means all classes of Capital Stock of
            such entity then outstanding and normally entitled to vote in the
            election of directors or all interests in such entity with the
            ability to control the management or actions of such entity.

8.    Federal  Taxes:  The Options  granted to you are treated as  "nonqualified
      options" for federal tax purposes, which means that when you exercise, the
      excess of the value of the Shares  issued on  exercise  over the  exercise
      price  paid  for the  Shares  is  income  to you,  subject  to  wage-based
      withholding and reporting. When you

                                       7
<PAGE>

      sell the Shares acquired upon exercise,  the excess (or shortfall) between
      the  amount you  receive  upon the sale and the value of the shares at the
      time of  exercise  is treated as capital  gain (or loss).  State and local
      taxes may also apply.  You should  consult  your  personal tax advisor for
      more information concerning the tax treatment of your Options. The Company
      is not making any  representations  concerning  the tax  treatment  of the
      Options,  and is not responsible for any taxes,  interest or penalties you
      incur in  connection  with your  Options,  even if the taxing  authorities
      successfully  challenge  any  position  taken by the Company in respect of
      wage withholding and reporting or otherwise.

We are  excited to give you this  opportunity  to share in our  future  success.
Please  indicate your  acceptance of this option grant and the terms of the Plan
by signing and returning a copy of this letter.

Sincerely,

CLAIRE'S INC.

By:
   -----------------------------
Name:  Eugene S. Kahn
Title: Chief Executive Officer

Agreed to and Accepted by:

--------------------------------

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