Document:

EX-10.1

BANCINSURANCE CORPORATION 2002 STOCK INCENTIVE PLAN

AWARD AGREEMENT

The Bancinsurance Corporation (“Company”) believes that its business interests are best served
by ensuring that you have an opportunity to share in the Company’s business successes. To this
end, the Company adopted the Bancinsurance Corporation 2002 Stock Incentive Plan (“Plan”) as a
means through which you may share in the appreciation of the Company’s stock. This is done by
granting “Awards” to key employees, like you. If you meet the conditions described in this
Agreement (and the Plan), these Awards will mature into an equity interest in the Company.

There is no guarantee that the value of your Award will increase. This is because the value of the
Company’s stock is affected by many factors. However, the Company believes that your efforts
affect the value of its stock and that this Plan (and the Awards made through the Plan) are an
appropriate means of sharing with you the value of your contribution to the Company’s business
success.

This Agreement describes the type of Award that you have been granted and the conditions that must
be met before you may realize the value associated with your Award. To ensure you fully understand
these terms and conditions, you should:

	 	•	 	Read this Award Agreement carefully; and

	 	•	 	Contact us at 614-228-2800 if you have any questions about your Award or if you want
a copy of the Plan.

1

Description of Your Incentive Stock Options

Your Award Consists of Incentive Stock Options: You have been awarded Incentive Stock Options (or
“ISOs”) through which you may purchase shares of Company stock. Special (and favorable) tax rules
apply to ISOs but only if certain conditions are met. These special conditions and other terms
affecting your ISOs are described in this Agreement.

Your ISOs are subject to the following terms and to some general rules discussed later in this
Agreement.

Grant Date: Your ISOs were issued on:      .

This is the date your ISOs were granted and the date on which your ISOs begin to vest.

Award: You have been granted      ISOs.

You may purchase one share of Company stock for each ISO granted, but only if you meet the terms
and conditions described in this Agreement.

Exercise Price: You may exercise each ISO by paying $     to purchase one share of Company
stock.

When you purchase a share of Company stock by exercising an ISO, the option exercised is cancelled.

Expiration Date: You must exercise all these ISOs no later than      .

If you do not exercise your ISOs by this date they will expire and may not be exercised at a later
date.

Limits on Exercising Your ISOs

Vesting: Normally, you may not exercise your ISOs until they “vest.” Your ISOs will vest (and may
be exercised) at the following times:

20% ISOs, anytime on or after      ;

40% ISOs, anytime on or after      ;

60% ISOs, anytime on or after      ;

80% ISOs, anytime on or after      ; and

100% ISOs, anytime on or after      .

This does not mean that you must exercise your ISOs on these dates; these are merely the first
dates that you may do so. However, your ISOs will expire unless they are exercised before the
Expiration Date.

Also, there are some special situations in which your options may vest earlier. These are
described later in this Agreement.

2

Minimum Number of ISOs That You May Exercise: The smallest number of ISOs that you may exercise at
any one time is one or, if fewer, the total number of your remaining ISOs.

Also, normally you may not exercise any ISO to purchase a fractional share of Company stock.

Tax Treatment of Your ISOs

This brief discussion of the federal tax rules that affect your ISOs is provided as general
information (not as personal tax advice) and is based on the Company’s understanding of federal tax
laws and regulations in effect as of the Grant Date.

You should consult with a tax or financial adviser to ensure you fully understand the tax
ramifications of your Award.

Normally ISOs are subject to favorable tax rules. Under these rules, you will not be required to
pay ordinary income taxes on the value of an ISO when it is issued, when it becomes exercisable (or
vests) or when you buy Company stock by exercising an ISO (there are no tax consequences if an ISO
expires before being exercised). Also, if you comply with certain rules (discussed below), you
will not have ordinary income when you sell the Company stock you purchased through an ISO.
Instead, capital gains taxes will apply, but only when you sell the stock you bought by exercising
an ISO. Also, these taxes will be applied only to the difference between the price you paid for
the stock (i.e., the Exercise Price) and the amount you receive when you sell the Company stock.
Because capital gains tax rates normally are lower than ordinary income tax rates, this rule should
minimize your total tax liability. However, this favorable capital gains tax treatment is
available only if you do not sell the Company stock any earlier than two years after the Grant Date
and one year after you exercise the ISO.

If you do not comply with the rule just described, you must pay income tax, at ordinary income tax
rates, on the difference between the Exercise Price and the fair market value of Company stock on
the date the ISO is exercised. Any additional gain (i.e., the difference between the fair market
value of the stock on the date the ISO is exercised and the amount you receive when you sell the
stock) would be taxed at capital gains rates.

You also should know that ISOs are subject to an “alternative minimum tax,” which is a special tax
rate imposed on tax preference items. Generally, the alternative minimum tax structure requires
that you calculate your taxes, at a special rate, by including all items of tax preference,
including the difference between the Exercise Price and the value of the Company stock you purchase
when you exercise an ISO. This is done for the year in which you exercise an ISO. Then, you
compare the tax calculated under the alternative minimum tax rates with the tax you owe under the
ordinary method of calculating your taxes for that year and pay the higher of the two tax amounts.

You may avoid application of the “alternative minimum tax” by making a special election [known as a
Code §83(b) election] within 30 days of the Grant Date. However, there are important tax and
investment issues that you must consider before making a Code §83(b) election. These should be
discussed with your personal tax and investment adviser,

This is a very brief and general description of the very complex alternative minimum tax structure.
You should discuss this tax with a tax adviser before you exercise your ISOs and as you calculate
your taxes for the year in which you exercise an ISO.

3

Description of Your Nonqualified Stock Options

Your Award Consists of Nonqualified Stock Options: You have been awarded Nonqualified Stock
Options (or “NSOs”) through which you may purchase shares of Company stock.

Your NSOs are subject to the following terms and to some general rules discussed later in this
Agreement.

Grant Date: Your NSOs were issued on:      .

This is the date your NSOs were granted and the date on which your NSOs begin to vest.

Award: You have been granted      NSOs.

You may purchase one share of Company stock for each NSO granted, but only if you meet the terms
and conditions described in this Agreement.

Exercise Price: You may exercise each NSO by paying $     to purchase one share of Company
stock.

When you purchase a share of Company stock by exercising an NSO, the option exercised is cancelled.

Expiration Date: You must exercise all these NSOs no later than      .

If you do not exercise your NSOs by this date they will expire and may not be exercised at a later
date.

Limits on Exercising Your NSOs

Vesting: Normally, you may not exercise your NSOs until they “vest.” Your NSOs will vest (and may
be exercised) at the following times:

     NSOs, anytime on or after      ;

     NSOs, anytime on or after      ;

     NSOs, anytime on or after      ; and

     NSOs, anytime on or after      .

This does not mean that you must exercise your NSOs on these dates; these are merely the first
dates that you may do so. However, your NSOs will expire unless they are exercised before the
Expiration Date.

Also, there also are some special situations in which your options may vest earlier. These are
described later in this Agreement.

Minimum Number of NSOs That You May Exercise: The smallest number of NSOs that you may exercise at
any one time is      or, if fewer, the total number of your remaining NSOs.

Also, normally you may not exercise any NSO to purchase a fractional share of Company stock.

Tax Treatment of Your NSOs

This brief discussion of the federal tax rules that affect your NSOs is provided as general
information (not as personal tax advice) and is based on the Company’s understanding of federal tax
laws and regulations in effect as of the Grant Date.

You should consult with a tax or financial adviser to ensure you fully understand the tax
ramifications of your Award.

You are not required to pay ordinary income taxes on the value of an NSO when it is issued.
However, you are required to pay income tax when you buy Company stock by exercising an NSO. This
tax is calculated by applying ordinary income tax rates to the difference between the value of
Company stock when the NSO is exercised and the Exercise Price (there are no tax consequences if an
NSO expires with being exercised). Any gain you realize when you sell the Company stock you
purchased through an NSO (i.e., the difference between the sales price and the value of the Company
stock on the date the NSO was exercised) normally will be taxed at favorable capital gains rates.

You may increase the portion of your Award’s value that is subject to capital gains tax rates by
making a special election [known as a Code §83(b) election] within 30 days of the Grant Date.
However, there are important tax and investment issues that you must consider before making a
Code §83(b) election. These should be discussed with your personal tax and investment adviser.

4

Tandem Stock Appreciation Rights

Your Award Consists of Tandem Stock Appreciation Rights: You have been awarded Tandem Stock
Appreciation Rights (or “TSARs”). These TSARs are associated with stock options and enable you to
receive the difference between the value of Company stock when the TSAR is exercised and the value
of Company stock on the Grant Date (“Exercise Price”).

Your TSARs are subject to the following terms and to some general rules discussed later in this
Agreement.

Grant Date: Your TSARs were issued on      .

This is the date your TSARs were granted and the date on which your TSARs begin to vest.

Award: You have been granted      TSARs.

If you exercise a TSAR, you will receive an amount equal to the difference between the value of
Company stock on the Grant Date (“Exercise Price”) and the date you exercise the TSAR. And you
may realize this appreciation without actually paying the Exercise Price. This means you have a
choice to make when the TSARs (and the associated options) become exercisable. That is:

	 	•	 	You may exercise a TSAR without actually spending any money and realize the amount
Company stock has appreciated between the Grant Date and the date you exercise the
TSAR; or

	 	•	 	You may exercise the option associated with your TSAR, in which case you will
receive one share of stock for each option exercised, although you will be required to
actually pay the Exercise Price associated with the option.

Also, if you decide to exercise a TSAR, the associated option will automatically expire and if you
exercise the option, the associated TSAR will expire automatically.

Exercise Price:      .

This is the value of a share of Company stock on the Grant Date.

Expiration Date: You must exercise your TSARs no later than           .

If you do not exercise your TSARs by this date they (and each associated option) will expire and
may not be exercised at a later date.

Exercising TSARs: If you exercise a TSAR, you will receive the difference between the value of a
share of Company stock on the exercise date and the Exercise Price. This amount will be paid
either in cash or Company stock (or some of each) at the Company’s discretion.

5

Limits on Exercising Your TSARS

Vesting: Normally, you may not exercise your TSARs until they “vest.” Your TSARs will vest (and
may be exercised) at the following times which correspond to the date the related options may be
exercised:

     TSARs, anytime on or after      ;

     TSARs, anytime on or after      ;

     TSARs, anytime on or after      ; and

     TSARs, anytime on or after      .

This does not mean that you must exercise your TSARs on these dates; these are merely the first
dates that you may do so. However, your TSARs will expire unless they are exercised before the
Expiration Date.

Also, there also are some special situations in which your TSARs may vest earlier. These are
described later in this Agreement.

Minimum Number of TSARs That You May Exercise: The smallest number of TSARs that you may exercise
at any one time is      or, if fewer, the total number of your remaining TSARs.

Also, normally you may not exercise any TSAR associated with a fractional share of Company stock.

Tax Treatment of Your TSARs

This brief discussion of the federal tax rules that affect your TSARs is provided as general
information (not as personal tax advice) and is based on the Company’s understanding of federal tax
laws and regulations in effect as of the Grant Date.

You should consult with a tax or financial adviser to ensure you fully understand the tax
ramifications of your Award.

You are not required to pay ordinary income taxes on the value of a TSAR when it is issued or when
it vests. However, you are required to pay income tax (at ordinary income tax rates) when you
exercise your TSAR (there are no tax consequences if a TSAR expires without being exercised). If
your TSAR is paid in shares of Company stock, your taxes are calculated by applying ordinary income
tax rates to the value (on the date your TSAR is exercised) of the Company stock you receive. Any
subsequent appreciation in the value of this stock will be taxed at capital gains rates when the
stock is sold. If your TSAR is paid in cash, your taxes are calculated by applying ordinary income
tax rates to the amount of cash you receive.

6

Freestanding Stock Appreciation Rights

Your Award Consists of Freestanding Stock Appreciation Rights: You have been awarded Freestanding
Stock Appreciation Rights (or “FSARs”). These FSARs enable you to receive the difference between
the value of Company stock when the FSAR is exercised and the value of Company stock on the Grant
Date (“Exercise Price”).

Your FSARs are subject to the following terms and to some general rules discussed later in this
Agreement.

Grant Date: Your FSARs were issued on      .

This is the date your FSARs were granted and the date on which your FSARs begin to vest.

Award: You have been granted      FSARs.

If you exercise a FSAR, you will receive an amount equal to the difference between the value of
Company stock on the Grant Date (“Exercise Price”) and the date you exercise the FSAR. And you
may realize this appreciation without actually paying the Exercise Price.

Exercise Price:      .

This is the value of a share of Company stock on the Grant Date.

Expiration Date: You must exercise your FSARs no later than      

If you do not exercise your FSARs by this date they will expire and may not be exercised at a later
date.)

Exercising FSARs: If you exercise a FSAR, you will receive the difference between the value of a
share of Company stock on the exercise date and the Exercise Price. This amount will be paid
either in cash or Company stock (or some of each) at the Company’s discretion.

Limits on Exercising Your FSARS

Vesting: Normally, you may not exercise your FSARs until they “vest.” Your FSARs will vest (and
may be exercised) at the following times:

     FSARs, anytime on or after      ;

     FSARs, anytime on or after      ;

     FSARs, anytime on or after      ; and

     FSARs, anytime on or after      .

This does not mean that you must exercise your FSARs on these dates; these are merely the first
dates that you may do so. However, your FSARs will expire unless they are exercised before the
Expiration Date.

Also, there also are some special situations in which your FSARs may vest earlier. These are
described later in this Agreement.

Minimum Number of FSARs That You May Exercise: The smallest number of FSARs that may be exercised
at any one time is      or, if fewer, the total number of your remaining FSARs.

Also, normally you may not exercise any FSAR associated with a fractional share of Company stock.

Tax Treatment of Your FSARs

This brief discussion of the federal tax rules that affect your FSARs is provided as general
information (not as personal tax advice) and is based on the Company’s understanding of federal tax
laws and regulations in effect as of the Grant Date.

You should consult with a tax or financial adviser to ensure you fully understand the tax
ramifications of your Award.

You are not required to pay ordinary income taxes on the value of a FSAR when it is issued or when
it vests. However, you are required to pay income tax (at ordinary income tax rates) when you
exercise your FSAR (there are no tax consequences if your FSAR expires without being exercised).
If your FSAR is paid in shares of Company stock, your taxes are calculated by applying ordinary
income tax rates to the value (on the date your FSAR is exercised) of the Company stock you
receive. Any subsequent appreciation in the value of this stock will be taxed at capital gains
rates when the stock is sold. If your FSAR is paid in cash, your taxes are calculated by applying
ordinary income tax rates to the amount of cash you receive.

7

Description of Your Restricted Stock

Your Award Consists of Restricted Stock: You have been awarded Restricted Stock. Restricted Stock
is shares of Company stock that you will receive if the restrictions and conditions described below
are met.

Your Restricted Stock is subject to the following terms and to some general rules described later
in this Agreement.

Grant Date: Your Restricted Stock was issued on:      .

This is the date your shares of Restricted Stock were granted.

Award: You have been granted      shares of Restricted Stock.

If all the restrictions and conditions described below are met, these shares of Restricted Stock
will be distributed to you.

Expiration Date: Your right to receive shares of Restricted Stock will mature on      .

If you are actively employed on this date (and have met all other Program conditions), all
restrictions imposed on your Restricted Stock will lapse and you will become the owner of the
Company stock granted as Restricted Stock under this Agreement.

Your Rights in Restricted Stock Before The End of the Expiration Period

Until the restrictions and conditions described in this Agreement are met, the Restricted Stock
certificates will be held in escrow. Or, the Company may distribute these certificates before the
Expiration Date, although you will not be able to sell the shares until all the terms and
conditions described in this Agreement lapse.

Also, the Company may either distribute to you any dividends that are declared on your Restricted
Stock before the Expiration Date or may hold these dividends until the Expiration Date and
distribute them only if all the restrictions and conditions just described are met.

However, you may vote your Restricted Shares before all the terms and conditions described in this
Agreement are met. This is the case whether or not your Restricted Shares are distributed to you
before the Expiration Date.

Tax Treatment of Your Restricted Stock

This brief discussion of the federal tax rules that affect your Restricted Stock is provided as
general information (not as personal tax advice) and is based on the Company’s understanding of
federal tax laws and regulations in effect as of the Grant Date.

(You should consult with a tax or financial advisor to ensure you fully understand the tax
ramifications of your Award.)

You are not required to pay income taxes on your Restricted Stock at this time. However, you will
be required to pay income taxes (at ordinary income tax rates) when (and if) the restrictions and
conditions described in this Agreement are met. The amount of ordinary income you will recognize
is the value of your Restricted Stock when the terms and conditions described in this Agreement
lapse. If these restrictions and conditions are not met before the Expiration Date, your
Restricted Stock will expire and no taxes will be due. Any subsequent appreciation of the stock
will be taxed at capital gains rates when you sell the stock.

You may increase the portion of your Award’s value that is subject to capital gains tax rates by
making a special election [known as a Code §83(b) election] within 30 days of the Grant Date.
However, there are important tax and investment issues that you must consider before making a
Code §83(b) election. These should be discussed with your personal tax and investment adviser.

If you receive any dividends on your Restricted Stock before the Expiration Date:

	 	•	 	You will be taxed on the value of any cash dividend you receive in the year it is
paid; but

	 	•	 	Any dividend paid in shares of Company stock will not be taxed until all the
conditions and restrictions described in this Agreement have been met. In this case,
your tax will be calculated by applying ordinary income tax rates to the value of these
 shares of Company stock on the date the restrictions and conditions described in this
Agreement have been met. However, if these conditions and restrictions are not met, no
tax will be due because these shares will be forfeited.

8

GENERAL TERMS AND CONDITIONS

These terms and conditions apply to all Awards under this Award Agreement

1.00 Conduct Leading to Forfeiture of Unexercised Awards or Unmatured Restricted Stock: You may
forfeit any unexercised Award or unmatured Restricted Stock if, at any time, you:

	 	•	 	Agree to or actually serve in any capacity for a business or entity that competes with
the Company or any Subsidiary or provides services to an entity that competes with the
Company or any Subsidiary;

	 	•	 	Refuse or fail to consult with, supply information to, or otherwise cooperate with the
Company after having been requested to do so; or

	 	•	 	Deliberately engage in any action that the Company decides has caused substantial harm
to its interests or the interests of any Subsidiary.

2.00 Effect of Terminating Employment: Subject to Section 1.00, if you terminate employment any
unexercised Awards will expire on the earlier of:

	 	•	 	The Award’s Expiration Date, even if you are employed on that date;

	 	•	 	If your employment terminates for any reason other than death or disability, the date
your employment ends; or

	 	•	 	If you terminate because you are disabled or you die, 12 months after your employment
ends.

Note, it is your responsibility to keep track of when your Awards expire.

3.00 Buy Out of Awards by Company: The Company may decide at any time to buy out your Award. This
may happen without your consent and at any time. If the Company decides to buy out your Awards, it
will pay you the difference between the value of Awards that are exercisable (or vested) at that
time and that are being bought out and the Exercise Price associated with that Award.

4.00 Acceleration of Vesting: All Awards will be fully vested (and be exercisable) and all
restrictions will lapse if the Company enters into a plan or agreement that results in a merger or
consolidation or if there is a reclassification of Stock or the exchange of Stock for the
securities of another entity (other than a Subsidiary) that has acquired the Company’s assets or
which is in control of an entity that has acquired the Company’s assets and the terms of that plan
or agreement are binding on all holders of Stock (except to the extent that dissenting shareholders
are entitled to relief under applicable law). Upon payment of the exercise price, you will receive
the applicable securities or cash equal to those you would have received prior to the events listed
in this section.

5.00 Transferring Awards: Normally Awards may not be transferred except by will or applicable laws
of descent and distribution and, during your lifetime, may be exercised only by you or your
guardian or legal representative. However, the Company may allow you to place your NSOs into a
trust established for your benefit or the benefit of your family. Contact us at the number shown
below if you are interested in doing this.

6.00 Restrictions on Transfers of Stock: The Company may impose restrictions on any shares of
Company stock you acquire by exercising an Option, including restrictions related to applicable
securities laws, the rules of any national securities exchange or system on which Company stock is
listed or traded.

7.00 Section 16 of the Securities Exchange Act: If you are subject to the requirements of Section
16 of the Securities Exchange Act, you are responsible for ensuring that all requirements of
Section 16 are met, including the holding of securities purchased under this Agreement for a
minimum of six months before disposition.

8.00 Beneficiary Designation: You may name a Beneficiary or Beneficiaries to receive or to
exercise any vested Award that is unpaid or unexercised if you die. If you have not made an
effective Beneficiary designation, your Beneficiary will be your surviving spouse or, if you do not
have a surviving spouse, your estate. A Beneficiary form may be completed for each Award and will
be effective only when in writing and filed with the Committee.

9.00 Tax Withholding: In some cases, income taxes must be withheld on the value of your Award.
These taxes may be paid in one of several ways, including:

	 	•	 	The Company may withhold this amount from other amounts owed to you (e.g., your
salary);

	 	•	 	You may pay these taxes by giving the Company cash equal to the amount that must be
withheld or by giving the Company other shares of Company stock (that you have owned
for at least six months) with a value equal to the taxes due; or

	 	•	 	The Company may withhold a portion of the Award having a value equal to the taxes
that must be withheld.

You may choose the approach you prefer when the Award is payable, although the Company may reject
your preferred method for any reason (or for no reason). If this happens, you must pay these taxes
in the way the Company specifies. However, if you do not select one of these methods, the Company
will retain a portion of the Award (i.e., the last alternative just described will be applied).

10.00 Exercising Awards: Awards may be exercised by contacting the Company at the address shown
below. Options may be exercised by paying cash or a personal check immediately payable to the
Company. The Exercise Price due on an option also may be paid by directing the Company to withhold
shares of Company stock having a value equal to the Exercise Price due or by giving the Company
other shares of Company stock having a value equal to the Exercise Price due (but only if you have
owned those shares for at least six months).

11.00 Governing Law: This agreement will be construed in accordance with and governed by the laws
(other than laws governing conflicts of laws) of the United States and of the State of Ohio.

12.00 Other Agreements: Also, your Awards will be subject to the terms of any other agreements
between you and the Company.

13.00 Adjustments to Awards: The number of your Awards will be adjusted to reflect any change to
the Company’s capital structure (e.g., a stock split).

You must sign this Agreement; if you do not your Award will be cancelled. By signing this
Agreement you acknowledge that this Award is granted under and is subject to the terms and
conditions described above and in the Bancinsurance Corporation 2002 Stock Incentive Plan.

OPTIONEE/GRANTEE

     

BANCINSURANCE CORPORATION

     

9EX-10.1

  

 

Repurchase Plan 

 

Repurchase Plan, dated as of June 3, 2006 (this “Repurchase Plan”), between Claire’s Stores,
Inc. (the “Issuer”) and Brean Murray, Carret & Co., LLC (“BMUR”), to be effective as of June 5,
2006 (the “Effective Date”).

 

WHEREAS, the Issuer desires to establish this Repurchase Plan to repurchase shares of its
common stock (the “Stock”); and

 

WHEREAS, the Issuer desires to engage BMUR to effect repurchases of shares of Stock in
accordance with this Repurchase Plan;

 

NOW, THEREFORE, the Issuer and BMUR hereby agree as follows:

 

1. (a) Subject to the Issuer’s continued compliance with Section 2 hereof, BMUR shall effect a
purchase or purchases (each, a “Purchase”) of up to:

[Please indicate your selection by filling in the appropriate blank(s)]

	 	(i)	 	     shares; or

	 	(ii)	 	$65,000,000 worth of shares

of the Stock (the “Total Plan Shares”) as set forth in Annex 1. If both blanks above are filled
in, the Total Plan Shares shall mean the lesser of the amounts in clauses (i) and (ii) as of the
date of this Plan.

 

(b) Purchases may be made in the open market or through privately negotiated transactions. 
BMUR shall comply with the requirements of paragraphs (b)(2), (b)(3) and (b)(4) of Rule 10b-18
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), in connection with
Purchases of Stock in the open market pursuant to this Repurchase Plan.  The Issuer agrees not to
take any action that would cause Purchases not to comply with Rule 10b-18 or Rule 10b5-1.

 

2. The Issuer shall pay to BMUR a commission of $.015 per share of Stock repurchased pursuant
to this Repurchase Plan. In accordance with BMUR’s customary procedures, BMUR will deposit shares
of Stock purchased hereunder into an account designated by the Issuer against payment to BMUR of
the purchase price therefor and commissions and other amounts in respect thereof payable pursuant
to this Section.  The Issuer will be notified of all transactions pursuant to customary trade
confirmations.

   

3. (a) This Repurchase Plan shall become effective immediately and shall terminate upon the
first to occur of the following:

 

(1) the ending of the Trading Period, as set forth in Annex 1;

 

(2) the purchase of the number of Total Plan Shares pursuant to this Repurchase Plan;

 

(3) the end of the second business day following the date of receipt by BMUR of notice of
early termination substantially in the form of Appendix A hereto, delivered by telecopy,
transmitted to BMUR, Attention: Chris Moger, and confirmed by telephone to Chris Moger at (212)
702-6581;

 

(4) the commencement of any voluntary or involuntary case or other proceeding seeking
liquidation, reorganization or other relief under any bankruptcy, insolvency or similar law or
seeking the appointment of a trustee, receiver or other similar official, or the taking of any
corporate action by the Issuer to authorize or commence any of the foregoing;

 

(5) the public announcement of a tender or exchange offer for the Stock or of a merger,
acquisition, recapitalization or other similar business combination or transaction as a result of
which the Stock would be exchanged for or converted into cash, securities or other property; or

 

(6) the failure of the Issuer to comply with Section 2 hereof.

 

(b) Sections 2 and 13 of this Repurchase Plan shall survive any termination hereof.  In
addition, the Issuer’s obligation under Section 2 hereof in respect of any shares of Stock
purchased prior to any termination hereof shall survive any termination hereof.

 

4. The Issuer understands that BMUR may not be able to effect a Purchase due to a market
disruption or a legal, regulatory or contractual restriction or internal policy applicable to BMUR
or otherwise.  If any Purchase cannot be executed as required by Section 1 due to a market
disruption, a legal, regulatory or contractual restriction or internal policy applicable to BMUR or
any other event, such Purchase shall be cancelled and shall not be effected pursuant to this
Repurchase Plan.

 

5. The Issuer represents and warrants, on the date hereof and on the date of any amendment
hereto, that: (a) it is not aware of material, nonpublic information with respect to the Issuer or
any securities of the Issuer (including the Stock), (b) it is entering into or amending, as the
case may be, this Repurchase Plan in good faith and not as part of a plan or scheme to evade the
prohibitions of Rule 10b5-1 under the Exchange Act or other applicable securities laws and (c) its
execution of this Repurchase Plan or amendment hereto, as the case may be, and the Purchases
contemplated hereby do not and will not violate or conflict with the Issuer’s certificate of
incorporation or by-laws or, if applicable, any similar constituent document, or any law, rule
regulation or agreement binding on or applicable to the Issuer or any of its subsidiaries or any of
its of their property or assets.

 

6. It is the intent of the parties that this Repurchase Plan comply with the requirements of
Rule 10b5-1(c)(1)(i)(B) and  Rule 10b-18 under the Exchange Act, and this Repurchase Plan shall be
interpreted to comply with the requirements thereof.

 

7. As of the Effective Date of this Repurchase Plan, the Issuer has not entered into a similar
agreement with respect to the Stock.  The Issuer agrees not to enter into any such agreement while
this Repurchase Plan remains in effect.

 

8. Except as specifically contemplated hereby, the Issuer shall be solely responsible for
compliance with all statutes, rules and regulations applicable to the Issuer and the transactions
contemplated hereby, including, without limitation, reporting and filing requirements.

 

9. This Repurchase Plan shall be governed by and construed in accordance with the laws of the
State of New York and may be modified or amended only by a writing signed by the parties hereto.

 

10. The Issuer represents and warrants that the transactions contemplated hereby are
consistent with the Issuer’s publicly announced stock repurchase program (“Program”) and said
Program has been duly authorized by the Issuers’ board of directors.

 

11. The number of Total Plan Shares, other share amounts and prices, if applicable, set forth
in section 1(a) shall be adjusted automatically on a proportionate basis to take into account any
stock split, reverse stock split or stock dividend with respect to the Stock or any change in
capitalization with respect to the Issuer that occurs during the term of this Repurchase Plan.

 

12. Except as contemplated by Section 3(a)(3) of this Repurchase Plan, the Issuer acknowledges
and agrees that it does not have authority, influence or control over any Purchase effected by BMUR
pursuant to this Repurchase Plan and the Issuer will not attempt to exercise any authority,
influence or control over Purchases.  BMUR agrees not to seek advice from the Issuer with respect
to the manner in which it effects Purchases under this Repurchase Plan.

 

13. The Issuer agrees to indemnify and hold harmless BMUR and its affiliates and their
officers, directors employees and representatives against any loss, claim, damage or liability,
including reasonable legal fees and expenses, arising out of any action or proceeding relating to
this Repurchase Plan or any Purchase, except to the extent that any such loss, claim, damage or
liability is determined to be the result of the indemnified person’s willful misconduct or gross
negligence.

 

14. This Repurchase Plan may be executed in any number of counterparts, all of which, taken
together, shall constitute one and the same agreement.

 
 

IN WITNESS WHEREOF, the undersigned have signed this Repurchase Plan as of the date first
written above.

 
 

	 	 	 	 	 	 	 	 	 
	BREAN MURRAY, CARRET & CO., LLC
	 	 	 	CLAIRE’S STORES, INC.

	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Kenneth J. Kirsch
	 	 
	 	By:
	 	/s/ Ira D. Kaplan
	
 
	 	 
	 	 	 	 	 	 
	Name:

	 	Kenneth J. Kirsch
	 	 
	 	Name:
	 	Ira D. Kaplan
	Title:

	 	Chief Financial Officer
	 	 
	 	Title:
	 	Senior Vice President and

Chief Financial Officer
	 
	 	 	 	 	 	 	 	 

1

Appendix A

 

Request for Early Termination of Repurchase Plan

 

To:                                                             

As of the date hereof, Claire’s Stores, Inc. hereby requests termination of the Repurchase
Plan, dated as of      , 2006, in good faith and not as part of a plan or scheme to evade
the prohibitions of Rule 10b5-1 or other applicable securities laws.

 

IN WITNESS WHEREOF, the undersigned has signed this Request for Early Termination of Plan as
of the date specified below.

 
 

CLAIRE’S STORES, INC. 

 

By:                                                         
Date:                                                       

Name:

Title:

ANNEX 1

 

TRADING PARAMETERS

 

Trading Period: From and including June 5, 2006 through August 18, 2006.

 

Daily Share Purchase Amount:   Lesser of (a) Rule 10b-18(b)(4) limit (25% of prior 4 weeks ADTV);
and (b) 10 % of current trading day’s volume.

 

Maximum Price: $30.00 per share

 
 

TRADE ORDER

 

Subject to Paragraph 4 and Paragraph 6 of the Repurchase Plan dated June 3, 2006, (the
“Repurchase Plan”) to which this Annex I is attached, each day during the Trading Period on which
the NASDAQ National Market System is open for business, BMUR shall use its best efforts to effect a
purchase or purchases (each, a “Purchase”) of the Daily Share Purchase Amount, such Purchases
cumulatively not to exceed the Total Plan Shares and, in no case, will the market price per share,
excluding commissions, of any Purchase exceed the Maximum Price.  Capitalized terms used but not
otherwise defined herein shall have the meaning assigned thereto in the Repurchase Plan.

2

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