Document:

Exhibit 10.1

 

2015 INCENTIVE PLAN

OF 3D SYSTEMS CORPORATION

As Amended and Restated Effective May 24, 2022

 

Section 1. Purpose; Effective Date; Definitions

 

The purpose of the 3D Systems Corporation 2015 Incentive Plan (the “Plan”)
is to assist the Company and its Subsidiaries and Affiliates in attracting and retaining employees and consultants of outstanding competence
by providing an incentive that permits the persons responsible for the Company’s growth to share directly in that growth and to
further the identity of their interests with the interests of the Company’s stockholders.

 

For purposes of the Plan, the following terms shall be defined as set forth
below:

 

	(a)	“Affiliate” means any current or future entity other than the Company and its Subsidiaries that is designated by the Board as a participating employer under the Plan.

        

	 	 
	(b)	“Award” means a grant of a Stock Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, a Performance Award or an Incentive Award under the Plan.
	 	 
	(c)	“Award Agreement” means a written agreement between the Company and a Participant or a written notice from the Company to a Participant specifically setting forth the terms and conditions of an Award granted under the Plan.
	 	 
	(d)	“Beneficiary” means the person designated by the Participant prior to the Participant’s death in a form acceptable to the Committee to exercise Awards or receive benefits pursuant to the terms of this Plan. If no beneficiary is designated by the Participant, the Beneficiary shall be the Participant’s estate. 
	 	 
	(e)	“Board” means the Board of Directors of the Company. 
	 	 
	(f)	“Cause” means, but is not limited to, any of the following actions: embezzlement; fraud; nonpayment of any obligation owed to the Company, a Subsidiary or an Affiliate; breach of fiduciary duty; deliberate disregard of the Company’s rules resulting in loss, damage or injury to the Company; unauthorized disclosure of any trade secret or confidential information; conduct constituting unfair competition; and the inducement of any customer of the Company to breach a contract with the Company. The determination of whether Cause exists shall be made in the Company’s sole discretion. 
	 	 
	(g)	“Code” means the Internal Revenue Code of 1986, and the regulations promulgated thereunder, as amended from time to time, and any successor thereto. 
	 	 
	(h)	“Committee” means the Committee referred to in Section 2 of the Plan. 
	 	 
	(i)	“Common Stock” means the common stock, $0.001 par value per share, of the Company. 
	 	 
	(j)	“Company” means 3D Systems Corporation, a corporation organized under the laws of the State of Delaware, or any successor corporation.
	 	 
	(k)	“Date of Grant” means the date as
of which the Committee grants an Award. If the Committee contemplates an immediate grant to a Participant, the Date of Grant shall be
the date of the Committee’s action. If the Committee contemplates a date on which the grant is to be made other than the date of
the Committee’s action, the Date of Grant shall be the date so contemplated and set forth in or determinable from the records of
action of the Committee; provided, however, that the Date of Grant shall not precede the date of the Committee’s action. 

 

     

     

    

 

	(l)	“Detrimental Activity” means: (i) the rendering of services for any organization or engaging directly or indirectly in any business which is or becomes competitive with the Company, or which organization or business, or the rendering of services to such organization or business, is or becomes otherwise prejudicial to or in conflict with the interests of the Company; (ii) the disclosure to anyone outside the Company, or the use in other than the Company’s business, without prior written authorization from the Company, of any confidential information or material relating to the business of the Company, acquired by the Participant either during or after employment with the Company; (iii) the failure or refusal to disclose promptly and to assign to the Company all right, title and interest in any invention or idea, patentable or not, made or conceived by the Participant during employment by the Company, relating in any manner to the actual or anticipated business, research or development work of the Company or the failure or refusal to do anything reasonably necessary to enable the Company to secure a patent where appropriate in the United States and in other countries; (iv) a violation of any rules, policies, procedures or guidelines of the Company; (v) any attempt directly or indirectly to induce any employee of the Company to be employed or perform services elsewhere or any attempt directly or indirectly to solicit the trade or business of any current or prospective customer, supplier or partner of the Company; (vi) the Participant being convicted of, or entering a guilty plea with respect to, a crime, whether or not connected with the Company; or (vii) any other conduct or act determined in the sole discretion of the Committee or the Board to be injurious, detrimental or prejudicial to any interest of the Company.
	 	 
	(m)	“Disability” means disability as determined under procedures established by the Committee for purposes of this Plan. 
	 	 
	(n)	“Dividend Equivalent Account” means a bookkeeping account in accordance with Section 18 and related to a grant of Restricted Stock Units that is credited with the amount of any ordinary cash dividends or stock distributions that would be payable with respect to the shares of Common Stock subject to such Awards had such shares been outstanding shares of Common Stock.
	 	 
	(o)	“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and any successor thereto. 
	 	 
	(p)	“Fair Market Value” means, as of any given date, unless otherwise determined by the Committee in good faith, the closing price of the Common Stock on the principal stock exchange on which the Company’s shares are listed on such date. 
	 	 
	(q)	“Incentive Award” means an Award granted under Section 8 that, subject to such terms and conditions as may be prescribed by the Committee, entitles the Participant to receive a payment in Common Stock and/or cash from the Company or a Subsidiary or Affiliate. 
	 	 
	(r)	“Incentive Stock Option” means any Stock Option designated as an “incentive stock option” within the meaning of Section 422 of the Code. No Stock Option that is intended to be an Incentive Stock Option shall be invalid for failure to qualify as an Incentive Stock Option. 
	 	 
	(s)	“Nonqualified Stock Option” means any Stock Option that is not an Incentive Stock Option. 
	 	 
	(t)	“Participant” means a member of the Board, an employee or a consultant who receives an Award under this Plan. 
	 	 
	(u)	“Performance Award” means an Award under Section 8 that is based on the level of attainment of performance goals related to objective business criteria. 
	 	 
	(v)	“Person” means “person” as defined in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) of the Exchange Act but excluding the Company, any Subsidiary or any Affiliate, and any employee benefit plan sponsored or maintained by the Company or any Subsidiary or Affiliate (including any trustee of such plan acting in the capacity of trustee). 
	 	 
	(w)	“Plan” means this 3D Systems Corporation 2015 Incentive Plan, and any successor thereto, as amended from time to time.

 

     

     

    

 

	(x)	“Plan Year” shall mean the calendar year. 
	 	 
	(y)	“Restricted Stock” means shares of Common Stock subject to restrictions imposed in connection with an Award granted under Section 7. 
	 	 
	(z)	“Restricted Stock Unit” means a notional bookkeeping entry representing the equivalent of a share of Common Stock, subject to restrictions imposed in connection with an Award granted under Section 7. 
	 	 
	(aa)	“Retirement” means the Termination of the Participant on or after the Participant’s attainment of age 65. 
	 	 
	(bb)	“Section 409A” means Section 409A of the Code.
	 	 
	(cc)	“Stock Appreciation Right” or “SAR” means a right granted under Section 6 to receive payment, in cash and/or Common Stock, equal in value to the excess of the Fair Market Value of the specified number of shares of Common Stock on the date the Stock Appreciation Right is exercised over the grant price of the Stock Appreciation Right, as determined in accordance with Section 6(a). 
	 	 
	(dd)	“Stock Option” or “Option” means any option to purchase shares of Common Stock (including Restricted Stock, if the Committee so determines) granted pursuant to Section 5. 
	 	 
	(ee)	“Subsidiary” means those corporations fifty percent (50%) or more of whose outstanding voting stock is owned or controlled, directly or indirectly, by the Company and those partnerships and joint ventures in which the Company owns directly or indirectly a fifty percent (50%) or more interest in the capital account or earnings. 
	 	 
	(ff)	“Termination” means the complete cessation of services with the Company, a Subsidiary, or an Affiliate with no anticipated resumption of services by the Company, a Subsidiary, or an Affiliate in the capacity as an employee or independent contractor. A Participant’s employment or services relationship with the Company shall be treated as continuing intact while the individual is on military leave, sick leave, or other bona fide Company-approved leave of absence if the period of leave does not exceed three (3) months, or if longer, so long as the individual retains a right to reemployment with the Company under an applicable statute or by agreement. If the period of leave exceeds three (3) months, and the Participant’s right to reemployment is not provided either by statute or by contract, the Participant shall be treated for purposes of this Plan as having experienced a Termination of the Participant’s employment or services relationship with the Company on the first day immediately following such three-month period.

 

Section 2. Administration

 

The Plan shall be administered by the Compensation Committee, or a subcommittee
thereof (the “Committee”), which consists of two or more members of the Board, each of whom shall be a “Non-Employee
Director,” as that term is defined in Rule 16b-3(b)(3)(i) of the Exchange Act, but the failure of a Committee member to satisfy
such requirements shall not affect any actions taken by the Committee.

 

The Committee shall have full authority to grant, pursuant to the terms of
the Plan, Awards to employees and consultants eligible under Section 4. The Board shall have full authority to grant, pursuant to the
terms of the Plan, Awards to members of the Board.

 

In particular the Committee shall have the authority, without limitation:

 

	(i)	to select the employees and consultants to whom Awards may be granted hereunder, separately or in tandem, from time to time; 
	 	 
	(ii)	subject to the provisions of Sections 3 and 9, to determine the number of shares of Common Stock to be covered by each such Award granted hereunder; 

 

 

     

     

    

 

	(iii)	to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder, which terms and conditions are not required to be the same in respect of each Participant; 
	 	 
	(iv)	to designate the Corporate Secretary of the Company, other officers or employees of the Company or competent professional advisors to assist the Committee in the administration of the Plan, and to grant authority to such persons to execute agreements or other documents on its behalf;
	 	 
	(v)	as it pertains to Awards granted to employees and consultants residing in foreign jurisdictions, to adopt such supplements or subplans to the Plan as may be necessary or appropriate to comply with the applicable laws of such foreign jurisdictions and to afford Participants favorable treatment under such laws; 
	 	 
	(vi)	to approve forms of agreements for use under the Plan; 
	 	 
	(vii)	to correct administrative errors; and
	 	 
	(viii)	to allow Participants to satisfy Withholding Tax Obligations as such manner as may be determined by the Committee in accordance with the terms of the Plan.

 

The Committee shall have the authority to adopt, alter, and repeal such rules,
guidelines and practices governing the Plan as it shall, from time to time, deem advisable; to interpret the terms and provisions of the
Plan and any Award issued under the Plan (and any Award Agreement relating thereto); and to otherwise supervise the administration of
the Plan.

 

All decisions made by the Committee pursuant to the provisions of the Plan
shall be made in the Committee’s sole discretion and shall be final and binding on all persons, including the Company and Participants.

 

The Committee may delegate to officers of the Company its duties, powers,
and authority under this Plan pursuant to such conditions and limitations as the Committee may establish, except that only the Committee
may administer the Plan and Awards to Participants who are subject to Section 16 of the Securities Exchange Act of 1934 or to officers
who are or reasonably may become Covered Employees. In the event of such delegation of authority, any reference in this Plan to Committee
shall be to the officer(s) to whom the Committee has delegated authority to administer the Plan.

 

The Company agrees to indemnify and to defend to the fullest extent permitted
by law each member of the Committee against all liabilities, damages, costs and expenses (including attorney’s fees and amounts
paid in settlement of any claims approved by the Company) occasioned by any act or omission to act in connection with the Plan or any
Award Agreement, if such act or omission is in good faith and not due to willful misconduct or gross negligence. The foregoing right of
indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s
Articles of Incorporation, Bylaws, by contract, as a matter of law, or otherwise, or under any power that the Company may have to indemnify
them or hold them harmless.

 

Section 3. Common Stock Subject to Plan

 

	(a)	Number of Shares Available for Award. The total number of shares of Common Stock reserved and available for distribution under the Plan and the total number of shares of Common Stock that can be issued under Stock Options shall be twenty-five million two hundred thirty-five thousand eleven (25,235,011) shares. 

 

If any Award is cancelled, forfeited, expires or otherwise terminates without the issuance or
delivery of nonforfeitable shares of Common Stock, or if any Award is settled for cash or otherwise does not result in the issuance of
all or a portion of the shares of Common Stock subject to such Award, then the shares of Common Stock subject to the Award shall, to the
extent of such cancellation, forfeiture, expiration, termination, cash settlement or non-issuance, again be available for issuance under
the Plan.

 

 

     

     

    

 

In the event of any change in the outstanding shares of Common Stock or other securities then
subject to the Plan by reason of any stock split, reverse stock split, stock dividend, recapitalization, merger, consolidation, combination
or exchange of shares or other similar corporate change, or if the outstanding securities of the class then subject to the Plan are exchanged
for or converted into cash, property or a different kind of security, or if cash, property or securities are distributed in respect of
such outstanding securities (other than a regular cash dividend), then, unless the terms of such transaction shall provide otherwise,
such equitable adjustments shall be made in the Plan and the Awards thereunder (including, without limitation, appropriate and proportionate
adjustments in (i) the number and type of shares or other securities that may be acquired pursuant to Awards theretofore granted
under the Plan; (ii) the maximum number and type of shares or other securities that may be issued pursuant to Awards thereafter granted
under the Plan; (iii) the number of shares of Restricted Stock and shares of Common Stock under Restricted Stock Units that are outstanding
and the terms thereof; and (iv) the maximum number of shares or other securities with respect to which Awards may thereafter be granted
to any Participant in any Plan Year) as the Committee determines are necessary or appropriate, including, if necessary, any adjustment
in the maximum number of shares of Common Stock available for distribution under the Plan as set forth in this Section 3. Such adjustments
shall be conclusive and binding for all purposes of the Plan.

 

In the event that (i) any Stock Option granted under the Plan is exercised through the
tendering of shares of Common Stock (either actually or by attestation) or by the withholding of shares of Common Stock by the Company
or (ii) withholding tax liabilities resulting from an Award are satisfied by the withholding of shares of Common Stock, then the
number of shares tendered or withheld shall not be available for future grants of Awards. If Common Stock is issued in settlement of a
Stock Appreciation Right, the number of shares of Common Stock available under the Plan shall be reduced by the number of shares of Common
Stock for which the Stock Appreciation Right is exercised rather than the number of shares of Common Stock issued in settlement of the
Stock Appreciation Right.

 

	(b)	Limitation on Shares Subject to Stock Options and Stock Appreciation Rights. Subject to adjustment from time to time pursuant to Section 3(a) above, not more than five-hundred thousand (500,000) shares of Common Stock, in the aggregate, may be made subject to Stock Options or Stock Appreciation Rights under the Plan in respect of any one Participant during any Plan Year. 
	 	 
	(c)	Limitation on Awards to Members of the Board. The maximum aggregate number of shares of Common Stock that may be made subject to Awards granted to any one non-employee member of the Board during any Plan Year is equal to that number of shares of Common Stock that has a Fair Market Value on the Date of Grant equal to U.S. $250,000.

 

Section 4. Eligibility

 

Any person who is member of the Board, an employee of or consultant to the
Company, a Subsidiary or an Affiliate shall be eligible to be considered for the grant of an Award under the Plan other than an Incentive
Stock Option. Any person who is a common law employee of the Company shall be eligible to be considered for the grant of an Incentive
Stock Option.

 

Each Award granted under the Plan shall be evidenced by a written Award Agreement
in such form as the Committee shall approve from time to time. Award Agreements shall comply with the terms and conditions of the Plan.
In the case of an Incentive Stock Option, the Award Agreement shall contain all of the required provisions and otherwise conform to the
requirements under Code Section 422. Award Agreements may be evidenced by an electronic transmission (including an e-mail or reference
to a website) sent to the Participant. As a condition to receiving an Award, the Committee may require the proposed Participant to affirmatively
accept the Award and agree to the terms and conditions set forth in the Award Agreement by physically and/or electronically executing
the Award Agreement or by otherwise physically and/or electronically acknowledging acceptance and agreement. With or without such affirmative
acceptance, however, the Committee may prescribe conditions (including the exercise or attempted exercise of any benefit conferred by
the Award) under which the proposed Participant may be deemed to have accepted the Award and agreed to the terms and conditions set forth
in the Award Agreement.

 

 

     

     

    

 

Section 5. Stock Options

 

Stock Options granted under the Plan may be of two types: Incentive Stock
Options that, in addition to being subject to applicable terms, conditions and limitations established by the Committee, comply with Section 422
of the Code and Nonqualified Stock Options. Any Stock Option shall be in such form as the Committee may from time to time approve; shall
be subject to the following terms and conditions; and shall contain such additional terms and conditions, not inconsistent with the terms
of the Plan, that are set forth in the Award Agreement as the Committee shall deem desirable:

 

	(a)	Exercise Price. The exercise price per share of Common Stock purchasable under a Stock Option shall be determined by the Committee on the Date of Grant but shall be not less than one hundred percent (100%) of the Fair Market Value of the Common Stock on the Date of the Grant, provided, however, that the exercise price per share of Common Stock purchasable under an Incentive Stock Option that is granted to an individual who, on the Date of Grant, owns or is deemed to own stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any of its Subsidiaries, shall not be less than one hundred and ten percent (110%) of the Fair Market Value of the Common Stock on the Date of Grant. Except as provided in Section 3, without the approval of stockholders (i) the Committee may not reduce, adjust or amend the exercise price of an outstanding Stock Option, whether through amendment, cancellation, replacement grant or any other means and (ii) no payment may be made to cancel an outstanding Stock Option if on the date of such amendment, cancellation, replacement grant or payment the exercise price exceeds Fair Market Value.
	 	 
	(b)	Option Term and Exercisability. The term of each Stock Option shall be fixed by the Committee, but no Stock Option shall be exercisable more than ten (10) years after the Date of Grant; provided, however, that no Incentive Stock Option that is granted to an individual who, on the Date of Grant, owns or is deemed to own Common Stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any of its Subsidiaries, shall be exercisable more than five (5) years after the Date of Grant of such Incentive Stock Option. Stock Options shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Committee and set forth in the applicable Award Agreement. 
	 	 
	(c)	Method of Exercise. Stock Options may be exercised in whole or in part subject to the terms of the applicable Award Agreement by giving written notice of exercise to the Company, or its designated representative, specifying the number of shares to be purchased. 

 

Such notice shall be accompanied by payment in full of the exercise price by check, note or
such other instrument as the Committee may accept and, in the case of Nonstatutory Stock Options, payment in full of the Withholding Tax
Obligation. As determined by the Committee, in its sole discretion, payment of the exercise price in full or in part also may be made
through (a) a “cashless exercise” (which will be conducted in a manner acceptable to the Company through a third party broker,
and otherwise in compliance with Section 402 of the Sarbanes-Oxley Act) or in which the exercise price (and any interest thereon) is subtracted
from the number of shares of Common Stock received by the Participant upon exercise of the Stock Option (based on the Fair Market Value
of the Common Stock on the date the Option is exercised); or (b) the surrender of other Common Stock which (i) in the case of Common
Stock acquired upon the exercise of an Award, has been owned by the Participant for more than six months on the date of surrender; and
(ii) has a Fair Market Value on the date of surrender that, together with any cash paid, is equal to the aggregate exercise price
of the Common Stock as to which said Stock Option shall be exercised.

 

No shares of Common Stock shall be issued until full payment has been made. No Participant shall
have interest in or be entitled to voting rights or dividends or other rights or privileges of stockholders of the Company with respect
to shares of Common Stock granted pursuant to the Plan unless, and until, shares of Common Stock actually are issued to such person and
then only from the date such person becomes the record owner thereof and, if requested, has given the representation described in Section
15.

 

	(d)	Termination by Reason of Death or Disability. Except as otherwise expressly approved by the Committee and set forth in the applicable Award Agreement, if a Participant has a Termination of employment by or service with the Company, a Subsidiary or an Affiliate by reason of death or Disability, any Stock Option held by such Participant thereafter may be exercised by the Participant or the Participant’s Beneficiary in the case of death, for the number of shares that the Participant was eligible to exercise on the date of Termination, until the expiration of twelve (12) months after the date of such Termination, provided such Stock Option was exercisable on such date of Termination, but no later than the expiration date of the Stock Option. 

 

 

     

     

    

 

	(e)	Termination by the Company without Cause, Retirement, Resignation. Except as otherwise expressly approved by the Committee and set forth in the applicable Award Agreement, if a Participant has a Termination of employment by or service with the Company, a Subsidiary or an Affiliate (other than as provided in subsection (d) above) by the Company without Cause, by reason of Retirement, or on account of voluntary resignation provided that it is determined by the Committee that Cause did not exist as of the time of resignation, any Stock Option held by such Participant thereafter may be exercised, for the number of shares that the Participant was eligible to exercise on the date of Termination, until the expiration of ninety (90) days after the date of such Termination, provided such Stock Option was exercisable on such date of Termination, but no later than the expiration date of the Stock Option. 
	 	 
	(f)	Other Termination. Unless otherwise determined by the Committee, if a Participant’s employment by or service with the Company, a Subsidiary or an Affiliate is terminated for any reason other than as specified in subsections (d) and (e) above, including Termination with Cause, any unexercised Stock Option granted to such Participant shall be cancelled on the date of such termination, whether or not exercisable on such date. 
	 	 
	(g)	Incentive Stock Options. Anything in the Plan to the contrary notwithstanding, no term of this Plan relating to Incentive Stock Options shall be interpreted, amended or altered, nor shall any discretion or authority granted under the Plan be so exercised, without the consent of the Participant(s) affected, to disqualify any Incentive Stock Option under Section 422 of the Code. If an Incentive Stock Option is exercised other than in accordance with the exercise periods that apply for purposes of Section 422 of the Code or if the aggregate Fair Market Value of the Common Stock with respect to which the Incentive Stock Options are exercisable for the first time during any calendar year (under all plans of the Company and any Subsidiary) exceeds U.S. $100,000, such Stock Option thereafter will be treated as a Nonqualified Stock Option, notwithstanding the “Incentive Stock Option” designation in the Award Agreement. 

 

Section 6. Stock Appreciation Rights

 

The Committee may, in its discretion, grant a Stock Appreciation Right either
singly or in combination with an underlying Stock Option granted hereunder. Such Stock Appreciation Right shall be subject to the following
terms and conditions and such other terms and conditions as the Committee may prescribe in the Award Agreement:

 

	(a)	Exercise Price. The exercise price per share of Common Stock under a Stock Appreciation Right shall be determined by the Committee on the Date of Grant but shall be not less than the greater of (a) one hundred percent (100%) of the Fair Market Value of the Common Stock on the Date of the Grant or (b) the exercise price per share of Common Stock purchasable under a underlying Stock Option with respect to which the Stock Appreciation Right is granted. Except as provided in Section 3, without the approval of stockholders (i) the Committee may not reduce, adjust or amend the exercise price of an outstanding Stock Appreciation Right, whether through amendment, cancellation, replacement grant or any other means and (ii) no payment may be made to cancel an outstanding Stock Appreciation Right if on the date of such amendment, cancellation, replacement grant or payment the exercise price exceeds Fair Market Value.
	 	 
	(b)	Time and Period of Grant. If a Stock Appreciation Right is granted with respect to an underlying Stock Option, it must be granted at the time of the Stock Option grant or, if granted on a later date than the underlying Stock Option, then the exercise price per share of Common Stock under the Stock Appreciation Right must not be less than the greater of: (i) one hundred percent (100%) of the Fair Market Value on the Date of Grant of the Stock Appreciation Right and (ii) the exercise price of the underlying Stock Option. If a Stock Appreciation Right is granted with respect to an underlying Stock Option, at the time the Stock Appreciation Right is granted, the Committee may limit the exercise period for such Stock Appreciation Right, after which period the Stock Appreciation Right shall not be exercisable. In no event shall the exercise period for a Stock Appreciation Right granted with respect to an underlying Stock Option exceed the exercise period for such Stock Option. If a Stock Appreciation Right is granted without an underlying Stock Option, the Stock Appreciation Right shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Committee and set forth in the applicable Award Agreement but the Stock Appreciation Right shall not be exercisable more than ten years after its Date of Grant. No Stock Appreciation Right may provide that, upon the exercise of the Stock Appreciation Right, a new Stock Appreciation Right automatically will be granted.

 

     

     

    

 

	(c)	Value of Stock Appreciation Right. If a Stock Appreciation Right is granted with respect to an underlying Stock Option, the grantee will be entitled to surrender the Stock Option which is then exercisable and receive in exchange therefore and on account of the exercise of the Stock Appreciation Right an amount equal to the excess of the Fair Market Value of the Common Stock on the date the election to surrender is received by the Committee in accordance with exercise procedures established by the Committee over the Stock Appreciation Right exercise price (the “Spread”) multiplied by the number of shares covered by the Stock Option which is surrendered. If a Stock Appreciation Right is granted without an underlying Stock Option, the grantee will receive upon exercise of the Stock Appreciation Right the Spread multiplied by the number of shares covered by the exercise of the Stock Appreciation Right. Notwithstanding the foregoing, at the time it grants a Stock Appreciation Right, the Committee, in its sole discretion, may provide that the Spread covered by such Stock Appreciation Right may not exceed a specified amount. At the Committee’s discretion, the amount payable as a result of the exercise of a Stock Appreciation Right may be settled in cash, Common Stock or a combination of cash and Common Stock. A fractional share shall not be deliverable upon the exercise of a Stock Appreciation Right but a cash payment will be made in lieu thereof.
	 	 
	(d)	Method of Exercise. Stock Appreciation Rights may be exercised in whole or in part subject to the terms of the applicable Award Agreement by giving written notice of exercise to the Company, or its designated representative, specifying the number of shares that are subject to exercise. 

 

No Participant shall have interest in or be entitled to voting rights or dividends or other
rights or privileges of stockholders of the Company with respect to shares of Common Stock subject to a Stock Appreciation Right unless,
and until, shares of Common Stock actually are issued to such person and then only from the date such person becomes the record owner
thereof and, if requested, has given the representation described in Section 15.

 

	(e)	Termination by Reason of Death or Disability. Except as otherwise expressly approved by the Committee and set forth in the applicable Award Agreement, if a Participant has a Termination of employment by or service with the Company, a Subsidiary or an Affiliate by reason of death or Disability, any Stock Appreciation Right held by such Participant thereafter may be exercised by the Participant or the Participant’s Beneficiary in the case of death, for the number of shares that the Participant was eligible to exercise on the date of Termination, until the expiration of twelve (12) months after the date of such Termination, provided such Stock Appreciation Right was exercisable on such date of Termination, but no later than the expiration date of the Stock Appreciation Right. 
	 	 
	(f)	Termination by the Company without Cause, Retirement, Resignation. Except as otherwise expressly approved by the Committee and set forth in the applicable Award Agreement, if a Participant has a Termination of employment by or service with the Company, a Subsidiary or an Affiliate (other than as provided in subsection (e) above) by the Company without Cause, by reason of Retirement, or on account of voluntary resignation provided that it is determined by the Committee that Cause did not exist as of the time of resignation, any Stock Appreciation Right held by such Participant thereafter may be exercised, for the number of shares that the Participant was eligible to exercise on the date of Termination, until the expiration of ninety (90) days after the date of such Termination, provided such Stock Appreciation Right was exercisable on such date of Termination, but no later than the expiration date of the Stock Appreciation Right. 
	 	 
	(g)	Other Termination. Unless otherwise determined by the Committee, if a Participant’s employment by or service with the Company, a Subsidiary or an Affiliate is terminated for any reason other than as specified in subsections (e) and (f) above, including Termination with Cause, any unexercised Stock Appreciation Right granted to such Participant shall be cancelled on the date of such termination, whether or not exercisable on such date. 

 

Section 7. Restricted Stock and Restricted Stock Units

 

	(a)	Grant of Restricted Stock and Restricted Stock Units. The Committee may grant to any Participant one or more Awards of
    Restricted Stock or Restricted Stock Units on such terms and subject to such conditions as may be established by the Committee that
    are set forth in the Award Agreement. Restricted Stock or Restricted Stock Units may be granted subject to such restrictions and
    provisions, whether based on performance standards, periods of service, retention by the Participant of ownership of specified shares
    of Common Stock or other criteria, not inconsistent with the terms of this Plan, as may be established by the Committee. Each Award
    of Restricted Stock or Restricted Stock Units may be subject to a different restricted period and additional restrictions; however,
    a Participant’s Restricted Stock or Restricted Stock Unit Award shall not be contingent on any payment by or consideration
    from the Participant other than the rendering of services, except as the Committee may otherwise expressly determine. Neither Restricted
    Stock nor Restricted Stock Units may be sold, transferred, assigned, pledged or otherwise encumbered or disposed of during the restricted
    period or prior to the satisfaction of any other applicable restrictions.

 

     

     

    

 

	(b)	Recordkeeping of Award; Lapse of Restrictions. As soon as practicable after the Date of Grant of Restricted Stock or a Restricted Stock Unit by the Committee, the Company shall:

                    

	 	 
	 	(i)	for Restricted Stock Awards, cause to be transferred on the books of the Company or its agent, shares of Common Stock, registered on behalf of the Participant, evidencing the Restricted Stock covered by the Award, subject to forfeiture to the Company as of the Date of Grant if an Award Agreement with respect to the Restricted Stock covered by the Award is not duly executed by the Participant and timely returned to the Company. Until the lapse or release of the restrictions applicable to the shares subject to an Award of Restricted Stock, the share certificates representing such Restricted Stock may be held in custody by the Company or its designee, in physical or book entry form, or, if the certificates bear a restrictive legend, by the Participant. Upon the lapse or release of all restrictions with respect to an Award as described in Section 7(e)(i), one or more share certificates, registered in the name of the Participant, for an appropriate number of shares as provided in Section 7(e)(i), free of any restrictions set forth in the Plan and the related Award Agreement, or a statement from the Company representing such shares in book entry form free of any restrictions set forth in the Plan and the related Award Agreement, shall be delivered to the Participant as provided in Section 7(e);
	 	 	 
	 	(ii)	for Restricted Stock Unit Awards, cause to be entered upon its books a notional account for the Participant’s benefit indicating the number of Restricted Stock Units awarded, subject to forfeiture as of the Date of Grant if an Award Agreement with respect to the Restricted Stock Units covered by the Award is not duly executed by the Participant and timely returned to the Company. Until the lapse or release of the restrictions applicable to the shares subject to a Restricted Stock Unit Award, no shares of Common Stock shall be issued in respect of such Awards and, as further described in Section 7(d), no Participant shall have any rights as a stockholder of the Company with respect to the shares of Common Stock covered by such Restricted Stock Unit Award.
	 	 	 
	(c)	Rights of Holders of Restricted Stock. Beginning on the Date of Grant of a Restricted Stock Award and subject to execution of the related Award Agreement as provided in Section 7(b)(i), and except as otherwise provided in such Award Agreement, the Participant shall become a stockholder of the Company with respect to all shares subject to a Restricted Stock Award Agreement and shall have all of the rights of a stockholder, including, but not limited to, the right to vote such shares and the right to receive dividends; provided, however, that any shares of Common Stock or other securities distributed as a dividend or otherwise with respect to any Restricted Stock as to which the restrictions have not yet lapsed, shall be subject to the same restrictions as such Restricted Stock and held or restricted as provided in Section 7(b)(i), and provided further that any cash dividends payable on any such Restricted Stock shall be distributed only when, and to the extent that, such restrictions have lapsed and the Committee may provide that such cash dividends shall be deemed to have been reinvested in additional shares of Common Stock.

 

 

     

     

    

 

	(d)	Rights of Holders of Restricted Stock Units.
	 	 

	 	(i)	Settlement of Restricted Stock Units. Restricted Stock Units may be settled in
    cash or Common Stock, as determined by the Committee and set forth in the Award Agreement. The Award Agreement shall also set forth
    whether the Restricted Stock Units shall be settled (1) within the time period specified for “short-term deferrals” under
    Section 409A or (2) in compliance with the requirements of Section 409A, in which case the Award Agreement shall specify the date
    (or event) upon which such Restricted Stock Units shall be settled.
	 	 	 
	 	(ii)	Voting and Dividend Rights. Holders of Restricted Stock Units shall not have rights as stockholders of the Company with respect to the shares of Common Stock covered by such Restricted Stock Unit Award, including the right to vote such shares and the right to receive dividends; provided, however, that the Committee may, in its sole discretion, award a Participant dividend equivalents with respect to a Restricted Stock Unit Award in accordance with Section 18 of the Plan. 
	 	 	 
	 	(iii)	Creditor’s Rights. A holder of Restricted Stock Units shall have no rights other than those of a general creditor of the Company. Restricted Stock Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Award Agreement. 
	 	 	 
	(e)	Delivery of Award
	 	 
	 	(i)	Restricted Stock. Upon expiration or earlier termination of the restricted period without a forfeiture and the satisfaction of or release from any other conditions prescribed by the Committee, or at such earlier time as provided under Section 7(g), the restrictions applicable to the Restricted Stock shall lapse. As promptly as administratively feasible thereafter, subject to the requirements of Section 13 (regarding tax withholding), the Company shall deliver to the Participant or, in case of the Participant’s death, to the Participant’s Beneficiary, one or more share certificates for the appropriate number of shares of Common Stock, or a statement from the Company representing that such shares have been issued, are in book entry form and are free of all such restrictions, except for any restrictions that may be imposed by law. 
	 	 	 
	 	(ii)	Restricted Stock Units. Upon expiration or earlier termination of the restricted period without a forfeiture and the satisfaction of or release from any other conditions prescribed by the Committee, or at such earlier time as provided under Section 7(g), the restrictions applicable to the Restricted Stock Units shall lapse. As promptly as administratively feasible thereafter, subject to the requirements of Section 13 (regarding tax withholding), but no later than ninety (90) days following such event the Company shall deliver to the Participant or, in case of the Participant’s death, to the Participant’s Beneficiary, (1) a cash payment equal to the number of Restricted Stock Units as to which such restrictions have lapsed multiplied by the Fair Market Value of a share of Common Stock as of the date the restrictions lapsed, (2) solely in the Committee’s discretion, one or more share certificates registered in the name of the Participant, for the appropriate number of shares of Common Stock, or a statement from the Company representing that such shares have been issued, are in book entry form and are free of all restrictions, except for any restrictions that may be imposed by law, or (3) any combination of cash and shares of Common Stock. 
	 	 	 
	(f)	Forfeiture. Restricted Stock shall be forfeited and returned to the Company, and Restricted Stock Units shall be forfeited, and all rights of the Participant with respect to such Restricted Stock or Restricted Stock Units shall terminate unless the Participant continues in the service of the Company, a Subsidiary or an Affiliate until the expiration of the restricted period for such Restricted Stock or Restricted Stock Unit Award and satisfies any and all other conditions set forth in the Award Agreement. The Committee shall determine the restricted period (which may, but need not, lapse in installments) and any other terms and conditions applicable with respect to any Restricted Stock or Restricted Stock Unit Award, which shall be set forth in the Award Agreement.
	 	 
	(g)	Committee Discretion. Notwithstanding anything contained in this Section 7 to the contrary, the Committee may, in its sole discretion, waive the forfeiture period and any other conditions set forth in any Award Agreement under appropriate circumstances (including, but not limited to, the death, Disability or Retirement of the Participant or a material change in circumstances arising after the date of an Award) and subject to such terms and conditions (including forfeiture of a proportionate number of the Restricted Stock or Restricted Stock Units) as the Committee shall deem appropriate.

 

 

     

     

    

 

Section 8. Performance Awards and Incentive Awards 

 

	(a)	Performance Goals. Notwithstanding anything else contained in the Plan to the contrary, the Committee may determine on the Date of Grant, that any Restricted Stock or Restricted Stock Unit granted to a Participant shall be a Performance Award and shall vest only upon the determination by the Committee that Performance Goals established by the Committee have been attained, in whole or in part. Such performance goals, the business criteria upon which they are based, and the weights or other formulas to be applied to any such business criteria shall be set forth in writing by the Committee. A “Performance Goal” means a performance objective that is stated with respect to one or more of the following business criteria, either individually or in combination, applied to the Participant or to the Company, a Subsidiary or an Affiliate as a whole or to individual units thereof, and measured either absolutely or relative to a designated group of comparable companies: (i) cash flow, (ii) earnings per share, (iii) earnings before interest, taxes, depreciation, and amortization (EBITDA), (iv) return on equity, (v) total stockholder return, (vi) return on capital, (vii) return on assets or net assets, (viii) revenue, (ix) income or net income, (x) operating income or net operating income, (xi) operating profit or net operating profit, (xii) operating margin, (xiii) return on operating revenue, (xiv) customer satisfaction, (xv) market share, (xvi) expenses, (xvii) credit rating, (xviii) mergers and acquisitions or divestitures, (xix) product development, (xx) intellectual property, (xxi) manufacturing, production or inventory, (xxii) price/earnings ratio, (xxiii) liquidity, (xxiv) financings, (xxv) cash, (xxvi) cost of goods sold, (xxvii) economic value added, (xxviii) accounts receivable, (xxix) number of customers and (xxx) gross profit margin. The Participant’s rights in the Performance Award shall become exercisable, transferable or nonforfeitable only to the extent that the Committee certifies in writing that such objectives have been achieved. A Performance Goal may be expressed on an absolute basis or relative to the performance of one or more similarly situated companies or a published index. When establishing Performance Goals, the Committee may exclude any or all special, unusual or extraordinary items as determined under U.S. generally accepted accounting principles, including, without limitation, the charges or cost associated with restructurings of the Company, discontinued operations, other unusual or non-recurring items and the cumulative effects of accounting changes. The Committee may also adjust Performance Goals as it deems equitable in recognition of unusual or non-recurring events affecting the Company, changes in applicable tax laws or accounting principles or such other factors as the Committee may determine.
	 	 
	(b)	Maximum Performance Award. The maximum, aggregate amount that can be awarded to any one Participant pursuant to Performance Awards in one (1) Plan Year is five hundred thousand (500,000) shares of Common Stock. 
	 	 
	(c)	Incentive Awards. The Committee shall designate Participants to whom Incentive Awards are made for incentive compensation opportunities. All Incentive Awards shall be finally determined exclusively by the Committee under the procedures established by the Committee.
	 	 
	(d)	Terms And Conditions Of Incentive Awards. The Committee, at the time an Incentive Award is made, shall specify the terms and conditions which govern the award. Such terms and conditions may include, by way of example and not of limitation, requirements that the Participant complete a specified period of employment with the Company or a Subsidiary or Affiliate, or that the Company, a Subsidiary or Affiliate, or the Participant attain stated objectives or goals, including objectives stated with respect to Performance Goals as a condition to earning an Incentive Award. The period for determining whether such requirements are satisfied shall be at least one year. The maximum, aggregate amount that can be awarded to any one Participant for Incentive Awards denominated in shares of Common Stock in one Plan Year is five hundred thousand (500,000) shares of Common Stock and the maximum, aggregate amount that can be awarded to any one Participant under one or more Incentive Awards denominated in cash in one Plan Year is three million five hundred thousand dollars ($3,500,000). 
	 	 
	(e)	Incentive Awards not subject to Liability. No right or interest of a Participant in an Incentive Award shall be liable for, or subject to, any lien, obligation, or liability of such Participant.

 

 

     

     

    

 

	(f)	Settlement of Incentive Awards. An Incentive Award that is earned shall be settled with a single lump sum payment which may be in cash, shares of Common Stock or a combination of cash of Common Stock, as determined by the Committee.
	 	 
	(g)	Stockholder Rights. No Participant shall, as a result of receiving an Incentive Award, have any rights as a stockholder of the Company until the date that the Incentive Award is settled and then only to the extent that the Incentive Award is settled by the issuance of Common Stock. 
	 	 
	(h)	Employee Status for Performance Awards and Incentive Awards. Notwithstanding Section 1(ff), if the terms of an Incentive Award or a Performance Award provide that a payment will be made thereunder only if the Participant completes a stated period of employment or continued service the Committee may decide to what extent leaves of absence for governmental or military service, illness, temporary disability or other reasons shall not be deemed interruptions of continuous employment or service.

 

Section 9. Change in Control

 

	(a)	“Change in Control” means: 
	 	 
	 	(i)	the Company is merged into or consolidated with another corporation or other entity and as a result of such merger or consolidation less than seventy percent (70%) of the combined voting power of the outstanding voting securities of the surviving or resulting corporation or other entity shall, after giving effect to such merger or consolidation, be “beneficially owned” (within the meaning of Sections 13(d) and 14(d) of Exchange Act) in the aggregate, directly or indirectly, by the former stockholders of the Company (excluding from such computation any such securities beneficially owned, directly or indirectly, by “affiliates” of the Company as defined in Rule 12b-2 under the Exchange Act and such securities so beneficially owned, directly or indirectly, by a party to such merger or consolidation), provided however, that Company securities acquired directly from the Company shall be disregarded for this purpose, 
	 	 	 
	 	(ii)	the Company shall sell all or substantially all of its assets to any other person or entity (other than a wholly owned subsidiary),
	 	 	 
	 	(iii)	any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act, other than the Company, any trustee or other fiduciary holding securities under an employee benefit plan of the Company, or any Company owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) directly or indirectly, of securities of the Company representing thirty percent (30%) or more of the combined voting power of the Company’s then outstanding securities, provided however, that Company securities acquired directly from the Company shall be disregarded for this purpose, 
	 	 	 
	 	(iv)	during any period of two consecutive years, individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in clause (i), (ii), (iii) or (v) of this Section 9(a) and other than a director initially elected or nominated as a result of an actual or threatened election contest with respect to directors) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of a majority of the directors then still in office who either (x) were directors at the beginning of such period or (y) were so elected or nominated with such approval, cease for any reason to constitute at least a majority of the Board, or
	 	 	 
	 	(v)	the Company shall become subject for any reason to a voluntary or involuntary dissolution or liquidation. 

 

 

     

     

    

 

In addition, if a Change in Control (as defined in clauses (i), (ii), (iii), (iv) or (v) above)
constitutes a payment event with respect to any Stock Option, Stock Appreciation Right, Performance Award, Restricted Stock Unit award,
Incentive Award or Restricted Stock that provides for the deferral of compensation and is subject to Section 409A of the Code, no payment
will be made under that award on account of a Change in Control unless the event described in clause (i), (ii), (iii), (iv) or (v) above,
as applicable, constitutes a “change in control event” as defined in Treasury Regulation Section 1.409A-3(i)(5).

 

	(b)	“Control Change Date” means the date on which a Change in Control occurs. If a Change in Control occurs on account of a series of transactions, the Control Change Date is the date of the last of such transactions.
	 	 
	(c)	Impact Of Change In Control. Unless an outstanding award is assumed in accordance with Section 9(d) and notwithstanding any other provision of the Plan, upon a Control Change Date, the Committee is authorized to, and in its discretion, may provide that (i) a Stock Option and Stock Appreciation Right shall be fully exercisable thereafter, (ii) Restricted Stock will become transferable and nonforfeitable thereafter, (iii) Restricted Stock Units shall be earned in their entirety and converted into transferable and nonforfeitable Restricted Stock, (iv) the performance goals to which the vesting of Performance Awards are subject shall be deemed to be met at target, such that Performance Awards immediately become fully vested, and (v) an Incentive Award shall be earned, in whole or in part, in accordance with the terms of the applicable Agreement.
	 	 
	(d)	Assumption Upon Change In Control. In the event of a Change in Control the Committee, in its discretion and without the need for a Participant’s consent, may provide that an outstanding Stock Option, Stock Appreciation Right, award of Restricted Stock, Restricted Stock Unit, Performance Award or Incentive Award shall be assumed by, or a substitute award granted by, the surviving entity in the Change in Control. Such assumed or substituted award shall be of the same type of award as the original Stock Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Performance Award or Incentive Award being assumed or substituted. The assumed or substituted award shall have a value, as of the Control Change Date, that is substantially equal to the value of the original award (or the difference between the Fair Market Value and the exercise price in the case of Stock Options and Stock Appreciation Rights) as the Committee determines is equitably required and such other terms and conditions as may be prescribed by the Committee.
	 	 
	(e)	Cash-Out Upon Change In Control. Unless an outstanding award is assumed in accordance with Section 9(d), in the event of a Change in Control the Committee, in its discretion and without the need of a Participant’s consent, may provide that each Stock Option, Stock Appreciation Right, Performance Award, Incentive Award, award of Restricted Stock and Restricted Stock Unit shall be cancelled in exchange for a payment. The payment may be in cash, shares of Common Stock or other securities or consideration received by Company stockholders in the Change in Control transaction. The amount of the payment shall be an amount that is substantially equal to (i) the amount by which the price per share received by Company stockholders in the Change in Control exceeds the Stock Option exercise price in the case of a Stock Option and Stock Appreciation Right, or (ii) the price per share received by stockholders for each share of Common Stock subject to an award of Restricted Stock or Restricted Stock Units or an Incentive Award.

 

Section 10. Transferability; Successors

 

Awards granted under the Plan may not be sold, pledged, assigned, hypothecated,
transferred or disposed of in any manner other than by will or the laws of descent or distribution and may be exercised, during the lifetime
of the Participant, only by the Participant. Any act in violation of this Section 10 shall be void. Notwithstanding the foregoing, the
Committee may permit further transferability of Awards other than Incentive Stock Options, on a general or specific basis, and may impose
conditions and limitations on any permitted transferability.

 

The provisions of the Plan shall be binding upon and inure to the benefit
of all successors of any person receiving Common Stock of the Corporation pursuant to the Plan, including, without limitation, the estate
of such person and the executors, administrators or trustees thereof, the heirs and legatees of such person, and any receiver, trustee
in bankruptcy or representative of creditors of such person.

 

 

     

     

    

 

Section 11. Amendments and Termination

 

The Board may amend, alter or discontinue the Plan at any time, provided
that (i) no amendment, alteration or discontinuation shall be made which would materially impair the rights of a Participant in respect
of any outstanding Award hereunder without such Participant’s prior consent; and (ii) an amendment shall be contingent on approval
of the Company’s stockholders to the extent stated by the Committee or required by applicable law or stock exchange listing requirements.

 

Subject to the above provisions, the Board shall have broad authority to
amend the Plan to take in to account changes in applicable securities and tax laws and accounting rules, as well as other developments.

 

Section 12. Company’s Right to Terminate Retention; Exclusivity

 

Nothing contained in the Plan shall prevent the Board from adopting other
or additional compensation arrangements or modifying existing compensation arrangements for Participants, subject to stockholder approval
if such approval is required by applicable statute, rule or regulation; and such arrangements either may be generally applicable or applicable
only in specific cases. Neither the adoption of the Plan nor a grant to a Participant of any Award shall confer upon any Participant any
right to continued employment or service with the Company.

 

Section 13. Tax Withholding

 

The Company shall have the power and the right to deduct or withhold, or
require a Participant to remit to the Company, an amount sufficient to satisfy federal, state, local or other applicable taxes (including
the Participant’s FICA obligation or other social taxes) required by law to be withheld (collectively, the “Withholding Tax
Obligation”) (i) with respect to the vesting of or other lapse of restrictions applicable to an Award, (ii) upon the exercise
of a Stock Option or Stock Appreciation Right, or (iii) otherwise due in connection with an Award.

 

At the time of such vesting, lapse, or exercise, the Participant shall pay
to the Company any amount that the Company may reasonably determine to be necessary to satisfy the Withholding Tax Obligation. The Committee,
in its sole discretion and pursuant to such procedures as it may specify from time to time, may permit the Participant to elect to satisfy
the Withholding Tax Obligation, in whole or in part, by (a) paying the Company cash; (b) having the Company withhold shares of Common
Stock having a Fair Market Value on the date the tax is to be determined equal to the minimum statutory total tax which could be imposed
on the transaction; and/or (c) tendering previously acquired, unencumbered shares of Common Stock having an aggregate Fair Market Value
equal to the minimum statutory total tax which could be imposed on the transaction. All such elections shall be irrevocable, made in writing
(including by electronic mail), and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems
appropriate.

 

If the Participant fails to make an election with respect to the method by
which the Withholding Tax Obligation shall be satisfied or fails to pay the Withholding Tax Obligation, in whole or in part, by means
of the elected method, the Company may cause the Withholding Tax Obligation to be satisfied by the Company withholding shares of Common
Stock otherwise deliverable in connection with the Award that have a Fair Market Value on the date the tax is to be determined equal to
the minimum statutory total tax that could be imposed on the transaction.

 

Section 14. Choice of Law

 

The Plan and all Awards made and actions taken thereunder shall be governed
by and construed in accordance with the laws of the State of Delaware.

 

Section 15. Governmental and Other Regulations and Restrictions

 

	(a)	In General. The issuance by the Company of any shares of Common Stock pursuant to the Plan shall be subject to all applicable laws, rules and regulations and to such approvals by governmental agencies as may be required. 
	 	 
	(b)	Registration of Shares. The Company shall use its reasonable commercial efforts to cause the shares of Common Stock issuable in connection with this Plan to be registered under the Securities Act of 1933, as amended (the “Securities Act”), but shall otherwise be under no obligation to register any shares of Common Stock issued under the Plan under the Securities Act or otherwise. If, at the time any shares of Common Stock are issued pursuant to the Plan, there shall not be on file with the Securities and Exchange Commission an effective Registration Statement under the Securities Act covering such shares of Common Stock, the Participant to whom such shares are to be issued will execute and deliver to the Company upon receipt by him or her of any such shares an undertaking, in form and substance satisfactory to the Company, that (i) such Participant has had access or will, by reason of such person’s employment or service with the Company, or otherwise, have access to sufficient information concerning the Company to enable him or her to evaluate the merits and risks of the acquisition of shares of the Company’s Common Stock pursuant to the Plan, (ii) such Participant has such knowledge and experience in financial and business matters that such person is capable of evaluating such acquisition, (iii) it is the intention of such Participant to acquire and hold such shares for investment and not for the resale or distribution thereof, (iv) such Participant will comply with the Securities Act and the Exchange Act with respect to such shares, and (v) such Participant will indemnify the Company for any cost, liability and expense that the Company may sustain by reason of any violation of the Securities Act or the Exchange Act occasioned by any act or omission on his or her part with respect to such shares. 

 

 

     

     

    

 

	(c)	Resale of Shares. Without limiting the generality of Section 10, shares of Common Stock acquired pursuant to the Plan shall not be sold, transferred or otherwise disposed of unless and until (i) such shares shall have been registered by the Company under the Securities Act, (ii) the Company shall have received either a “no action” letter from the Securities and Exchange Commission or an opinion of counsel acceptable to the Company to the effect that such sale, transfer or other disposition of the shares may be effected without such registration, or (iii) such sale, transfer or disposition of the shares is made pursuant to Rule 144 of the General Rules and Regulations promulgated under the Securities Act, as the same may from time to time be in effect, and the Company shall have received an opinion of counsel acceptable to the Company to such effect.
	 	 
	(d)	Legend on Certificates. The Company may require that any certificate evidencing shares issued pursuant to the Plan bear a restrictive legend and be subject to stop-transfer orders or other actions, intended to effect compliance with the Securities Act or any other applicable regulatory measure. 

 

Section 16. Election With Respect to Restricted Property

 

A Participant who receives an award of Restricted Stock including Restricted
Stock granted as a Performance Award (but not Restricted Stock Units) shall be entitled to make, at his or her discretion, within thirty
(30) days of receipt of such restricted property and in accordance with applicable laws and regulations, the election provided for under
Section 83(b) of the Code to be taxed on the fair market value of such restricted property at the time it is received. Participants should
consult their individual tax advisors as to the tax consequences to them of the election under Section 83(b).

 

Section 17. Section 409A

 

The Plan is intended to provide either stock-based compensation that is not
governed by Section 409A or for the deferral of compensation pursuant to a nonqualified deferred compensation plan that complies with
the requirements of Section 409A. With respect to any Awards granted under this Plan that provide for the deferral of compensation that
is governed by Section 409A, the Plan shall be interpreted in a manner consistent with Section 409A and in the event that any provision
that is necessary for the Plan to comply with Section 409A is determined by the Committee, in its sole discretion, to have been omitted,
such omitted provision shall be deemed included herein and is hereby incorporated as part of the Plan. Any payments described in the Plan
that are due within the “short-term deferral period” as defined in Section 409A shall not be treated as deferred compensation
unless applicable laws require otherwise. Notwithstanding anything to the contrary in the Plan, to the extent required to avoid accelerated
taxation and tax penalties under Section 409A, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant
to the Plan during the six (6) month period immediately following the Participant’s “separation from service” as
defined in Section 409A shall instead be paid on the first payroll date after the six-month anniversary of the Participant’s “separation
from service” (or the Participant’s death, if earlier). In addition, and notwithstanding any provision of the Plan to the
contrary, the Company reserves the right to amend the Plan or any Award granted under the Plan, by action of the Committee, without the
consent of any affected Participant, to the extent deemed necessary or appropriate for purposes of maintaining compliance with Section
409A and the regulations promulgated thereunder. Notwithstanding the foregoing, neither the Company nor the Committee shall have any obligation
to take any action to prevent the assessment of any excise tax or penalty on any Participant under Section 409A and neither the Company
nor the Committee will have any liability to any Participant for such tax or penalty.

 

 

     

     

    

 

Section 18. Dividend Equivalents 

 

For any Restricted Stock Units granted under the Plan, the Committee shall
have the discretion, upon the Date of Grant or thereafter, to provide for the payment of dividend equivalents to the Participant in connection
with such Award or to establish a Dividend Equivalent Account with respect to the Award, and the applicable Award Agreement or an amendment
thereto shall confirm the terms of such arrangement. For purposes of payment of dividend equivalents or settlement of any Dividend Equivalent
Account, the amount to be paid or otherwise settled (if expressed in cash) shall be rounded to the nearest cent ($0.01). If a Dividend
Equivalent Account is established, the following terms shall apply:

 

	(i)	Dividend Equivalent Accounts shall be subject to such terms and conditions as the Committee shall determine and as shall be set forth in the applicable Award Agreement. Such terms and conditions may include, without limitation, for the Participant’s Account to be credited as of the record date of each cash dividend on the Common Stock with an amount (expressed either in cash or shares of Common Stock of equivalent Fair Market Value) equal to the cash dividends which would be paid with respect to the number of shares of Common Stock then covered by the related Award if such shares of Common Stock had been owned of record by the Participant on such record date.
	 	 
	(ii)	Dividend Equivalent Accounts shall be established and maintained only on the books and records of the Company and no assets or funds of the Company shall be set aside, placed in trust, removed from the claims of the Company’s general creditors, or otherwise made available until such amounts are actually payable as provided hereunder.
	 	 
	(iii)	Dividend equivalents and amounts credited to a Dividend Equivalent Account with respect to any Performance Award or Restricted Stock Unit shall be distributed only when, and to the extent that, the underlying Award is earned.
	 	 
	(iv)	Notwithstanding the foregoing, the right to any dividends or dividend equivalents declared and paid on the number of shares underlying the Award may not be contingent, directly or indirectly, on the exercise of the Award, and any Award providing a right to dividend equivalents must comply with or qualify for an exemption from Section 409A.

 

Section 19. Cancellation and Rescission of Awards 

 

The Committee or the Board of Directors may cancel, rescind, suspend or otherwise
limit or restrict any unexpired Award at any time if a Participant engages in “Detrimental Activity.”

 

Section 20. Certain Reduction of Parachute Payments

 

The benefits that a Participant may be entitled to receive under this Plan
and other benefits that a Participant is entitled to receive under other plans, agreements and arrangements (which, together with the
benefits provided under this Plan, are referred to as “Payments”), may constitute Parachute Payments that are subject to Code
Sections 280G and 4999. As provided in this Section 20, the Parachute Payments will be reduced pursuant to this Section 20 if, and only
to the extent that, a reduction will allow a Participant to receive a greater Net After Tax Amount than a Participant would receive absent
a reduction.

 

The Accounting Firm will first determine the amount of any Parachute Payments
that are payable to a Participant. The Accounting Firm also will determine the Net After Tax Amount attributable to the Participant’s
total Parachute Payments.

 

The Accounting Firm will next determine the largest amount of Payments that
may be made to the Participant without subjecting the Participant to tax under Code Section 4999 (the “Capped Payments”).
Thereafter, the Accounting Firm will determine the Net After Tax Amount attributable to the Capped Payments.

 

The Participant will receive the total Parachute Payments or the Capped Payments,
whichever provides the Participant with the higher Net After Tax Amount. If the Participant will receive the Capped Payments, the total
Parachute Payments will be adjusted by first reducing the amount of any benefits under this Plan or any other plan, agreement or arrangement
that are not subject to Section 409A of the Code (with the source of the reduction to be directed by the Committee) and then by reducing
the amount of any benefits under this Plan or any other plan, agreement or arrangement that are subject to Section 409A of the Code (with
the source of the reduction to be directed by the Committee) in a manner that results in the best economic benefit to the Participant
(or, to the extent economically equivalent, in a pro rata manner). The Accounting Firm will notify the Participant and the Company if
it determines that the Parachute Payments must be reduced to the Capped Payments and will send the Participant and the Company a copy
of its detailed calculations supporting that determination.

 

 

     

     

    

 

As a result of the uncertainty in the application of Code Sections 280G and
4999 at the time that the Accounting Firm makes its determinations under this Section 20, it is possible that amounts will have been paid
or distributed to the Participant that should not have been paid or distributed under this Section 20 (“Overpayments”), or
that additional amounts should be paid or distributed to the Participant under this Section 20 (“Underpayments”). If
the Accounting Firm determines, based on either the assertion of a deficiency by the Internal Revenue Service against the Company or the
Participant, which assertion the Accounting Firm believes has a high probability of success or controlling precedent or substantial authority,
that an Overpayment has been made, the Participant must repay to the Company, without interest; provided, however, that no loan will be
deemed to have been made and no amount will be payable by the Participant to the Company unless, and then only to the extent that, the
deemed loan and payment would either reduce the amount on which the Participant is subject to tax under Code Section 4999 or generate
a refund of tax imposed under Code Section 4999. If the Accounting Firm determines, based upon controlling precedent or substantial
authority, that an Underpayment has occurred, the Accounting Firm will notify the Participant and the Company of that determination and
the amount of that Underpayment will be paid to the Participant promptly by the Company.

 

For purposes of this Section 20, the term “Accounting Firm” means
the independent accounting firm engaged by the Company immediately before the Control Change Date. For purposes of this Section 20, the
term “Net After Tax Amount” means the amount of any Parachute Payments or Capped Payments, as applicable, net of taxes imposed
under Code Sections 1, 3101(b) and 4999 and any State or local income taxes applicable to the Participant on the date of payment. The
determination of the Net After Tax Amount shall be made using the highest combined effective rate imposed by the foregoing taxes on income
of the same character as the Parachute Payments or Capped Payments, as applicable, in effect on the date of payment. For purposes of this
Section 20, the term “Parachute Payment” means a payment that is described in Code Section 280G(b)(2), determined in accordance
with Code Section 280G and the regulations promulgated or proposed thereunder.

 

Nothing in this Section 20 shall limit or otherwise supersede the provisions
of any other agreement or plan which provides that a Participant cannot receive Payments in excess of the Capped Payments.

 

Section 21. Return of Awards; Repayment

 

Each Award granted under this Plan is subject to the condition that the Company
may require that such award be returned, and that any payment made with respect to such award must be repaid, if such action is required
under the terms of any Company recoupment or “clawback” policy as in effect on the date that the payment was made, on the
date the award was granted or the date the Stock Option or Stock Appreciation Right was exercised or the date any Restricted Stock, Restricted
Stock Unit or Performance Award or Incentive Award became vested or earned.

 

Section 22. Term of Plan

 

This Plan shall be effective upon its approval by the stockholders of the
Company (the “Effective Date”). It shall continue in effect until February 14, 2032, the day before the tenth anniversary
of date of Board adoption. Awards granted on or before that date shall remain valid in accordance with their terms, notwithstanding the
expiration of the Plan.EX-10.1

  EXHIBIT 10.1*

   

  *CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL. [***]  INDICATES THAT INFORMATION HAS BEEN REDACTED.

   

   

   

   

  L i c e n s e  A g r e e m e n t

   

   

   

   

  between

   

   

  HUGO BOSS Trade Mark Management GmbH & Co. KG Dieselstrasse 12

  72555 Metzingen Germany

   

  with its branch

   

  HUGO BOSS Trade Mark Management GmbH & Co KG, D-Metzingen, Niederlassung CH-Zug

  Baarerstr. 135

  6300 Zug

  Switzerland

   

   

  – hereinafter referred to as "HUGO BOSS" –

   

   

  and

   

   

  MGI Luxury Group S.A. Bahnhofplatz 2B

  2502 Bienne Switzerland

   

   

  – hereinafter referred to as "Licensee" –

   

  -	each separately referred to as “Party” or jointly as “Parties” -

   

  

  2

  Preface

   

   

  a)	HUGO BOSS is entitled to grant licences for the trademarks "BOSS", "HUGO BOSS", “BOSS HUGO BOSS”, “HUGO”, and “HUGO HUGO BOSS” which are registered or under application for registration for various products in numerous countries around the world.

   

  The HUGO BOSS Group (as hereinafter defined) enjoys an excellent reputation world- wide as an established fashion house, which is based upon the high quality of HUGO BOSS’ products and the special HUGO BOSS image.

   

  b)	Licensee is aware that HUGO BOSS grants production and distribution licenses to third parties for the above trademarks.

   

  c)	The Parties previously entered into a license agreement dated as of December 15, 2004 (“Original License Agreement”) under which HUGO BOSS granted Licensee the right to use the Trademarks, Traditional Trademarks and BOSS ORANGE trademarks (all as hereinafter defined) in connection with Watches. The Original License Agreement was amended and restated by the License Agreement dated as of March 3, 2012 (“Second License Agreement”). The Parties now wish to amend and restate the Second License Agreement while incorporating the terms set out in the Term Sheet dated as of October 11, 2017 and last amended on December 23, 2021 (“Term Sheet”).

   

  d)	Now therefore, the Original License Agreement, the Second License Agreement and the Term Sheet are terminated and replaced by the present agreement and its annexes attached hereto (“Agreement”):

   

   

  1	Definitions

   

  1.1	“Above-the-Line Activations” shall mean the activities set forth in Clause 11.3.

   

  1.2	“Action Plan” shall mean the annual operating plan, which shall set forth in detail Licensee’s plans for conducting the Licensed Products business for each brand and each Product Category for at least the next three years, with particular emphasis on the marketing, promotion and sales of the Licensed Products and the meetings to be held during the respective year. The content of such Action Plan is set out in Annex 4.

   

  1.3	“Additional Marketing Investment” shall have the meaning as set forth in Clause 12.12.

   

  1.4	“Advertising Fee” shall be the fee as set forth in Clause 5.3.

   

  1.5	“Affiliates” shall mean all entities controlling, controlled by, or under common control with such party and/or consolidated by the respective Party, provided that control shall be presumed not to exist if the percentage ownership in the voting interests of the entity at issue does not exceed 50% + one share.

   

  1.6	“Annual Return Right” shall have the meaning as set forth in Clause 10.3.

   

  

  3

  1.7	"Below-the-Line Activations” shall mean the activities set forth in Clause 12.2.

   

  1.8	“Business Plan” shall mean the Licensee’s Business Plan attached to this Agreement in Annex 5 as amended or updated by mutual written agreement between the Parties, during the Term of this Agreement.

   

  1.9	“BOSS Trademarks” shall mean the BOSS logo, word and image marks as set forth in Annex 1 to this Agreement as well as BOSS trademarks under application or registration in the future in Nice classes 14 and 35 and excluding any Traditional Trademarks.

   

  1.10		“Distributor” shall mean a person or business who is either (i) a party to a selective distribution agreement with the Licensee that specifies the Selective Criteria and authorizes or appoints it to sell or distribute Licensed Products, usually within a given territory, but who acts in his own name, on his own account and risk and does not act as Agent for the Licensee or (ii) a retailer who purchases Licensed Products directly from another Distributor and is obliged to adhere to the Selective Criteria.

   

  1.11	“Force Majeure Event” shall have the meaning as set forth in Clause 21.11.

   

  1.12	“Full-Price to Outlet Transfers” shall have the meaning as set forth in Clause 10.7.

   

  1.13	“Gross Sales” shall mean the sales of the Licensed Products as produced, sold and invoiced by Licensee or by any Affiliate of Licensee at wholesale basis in arms-length transactions to independent retailers or distributors, Licensee Retail Stores and HUGO BOSS Retail Stores.

   

  1.14	“Guaranteed Minimum Annual Fee” shall be the total of the Guaranteed minimum License Fee and the Guaranteed Minimum Advertising Fee for the respective year and as set out in the Business Plan.

   

  1.15	“Guaranteed Minimum Advertising Fee” shall be the fee set forth in Clause 5.3.

   

  1.16	“Guaranteed Minimum License Fee” shall be the fee set forth in Clause 5.2.

   

  1.17	“HB Category Content” shall have the meaning as set forth in Clause 11.5

   

  1.18	“HUGO BOSS Designs” shall mean any legally-protectible intellectual property rights (including without limitation any and all copyright, trademark, trade dress, and design rights) in any design for Licensed Products that HUGO BOSS approves hereunder which is not in the public domain and which was not previously or substantially simultaneously used by Licensee on products other than the Licensed Products, including usage of special materials, creation of special colour effects and shapes, to the extent the respective Licensed Products are actually offered for sale in any jurisdiction.

   

  1.19	“HUGO BOSS Group” shall mean HUGO BOSS, the ultimate parent company HUGO BOSS AG, Dieselstrasse 12, 72555 Metzingen, Germany and companies that are Affiliates thereof.

   

  

  4

  1.20	“HUGO BOSS Retail Stores” shall mean directly operated stores by HUGO BOSS or HUGO BOSS Group, including HUGO BOSS Group own retail stores, shops, outlets, marketplaces, and e-commerce channels.

   

  1.21	“HUGO Trademarks” shall mean the HUGO logo, word and image marks as set forth in Annex 1 to this Agreement as well as HUGO trademarks under application or registration in the future in Nice classes 14 and 35 and excluding any Traditional Trademarks.

   

  1.22	“Jewelry” shall mean fashion jewelry for men and women, but excluding cufflinks.

   

  1.23	“Key Markets” shall mean:

  	[***]

   

  1.24	“Licensee Retail Stores” shall mean directly operated stores by Licensee or Licensee’s Affiliates, including own retail stores, shops, outlets, marketplaces and e-commerce channels.

   

  1.25	“Licensed Products” shall mean Watches and Jewelry.

   

  1.26	“License Fee” shall mean the fee set forth in Clause 5.2.

   

  1.27	“License Territory” shall mean all countries of the world.

   

  1.28	“Marketing Spending” shall have the meaning as defined in Clause 12.7.

   

  1.29	“Mass Distribution” shall mean broad distribution channels other than department stores, speciality stores and premium catalogues and online marketplaces of the sort which have traditionally distributed Licensed Products, and Mass Distribution shall include, among others, [***].

   

  1.30	“Net Sales” shall mean Gross Sales of Licensed Products, sold by Licensee or its Affiliates, at wholesale basis in arms-length transactions to independent retailers or distributors, Licensee Retail Stores and HUGO BOSS Retail Stores, after the deduction of:

  a)	actual credits for returns that Licensee actually authorizes and receives, not exceeding in any year an amount equal to [***] of Licensee’s total Gross Sales of Licensed Products in such year; and

  b)	actual, reasonable and normal trade discounts and allowances to independent third parties (including HUGO BOSS Retail Stores but not Licensee’s Affiliates/Licensee Retail Stores) and actual, reasonable and normal volume and early payment rebates to customers that are defined as credits to a customer after delivery and that Licensee actually grants in writing to the extent auditable, not exceeding in any year an amount equal to [***].

   

   

  1.31	“Net Sales Monthly Statement” shall mean the reporting format for Licensee’s monthly statements as outlined in Annex 6.

   

  1.32	“Net Sales Projection” shall have the meaning as set forth in Clause 5.3.

   

  1.33	“Product Category” shall mean (i) Traditional Watches, (ii) Technology-Enabled Watches, and (iii) Jewelry.

   

  1.34	“RRP” shall mean Licensee’s published recommended retail price for a given Licensed Product in the applicable region.

   

  

  5

  1.35	“Selective Criteria” shall mean the qualitative and/or quantitative criteria promulgated by Licensee from time to time for the admission of Distributors into, and for their continued membership in, Licensee’s selective distribution network for the resale of the Licensed Products. The Selective Criteria shall initially be as set forth in Annex 12, and any material changes to the Selective Criteria must be approved by HUGO BOSS.

   

  1.36	“Subcategory” shall have the meaning as set forth in Clause 2.5.

   

  1.37	“Technology-Enabled Watches” shall mean smart Watches, software enabled watches and connected Watches, including but not limited to display Watches, analogue-smart watches, hybrid smartwatches, and trackers for men and women bearing the Trademarks on labelling, tags and/or on the products themselves.

   

  1.38	“Term” shall mean the duration of this Agreement, as set forth in Section 19.

   

  1.39	“Term Sheet” shall have the meaning as set forth in the Preface.

   

  1.40	“Trademarks” shall mean the HUGO Trademarks, BOSS Trademarks, and “HUGO BOSS” trademarks as set forth in Annex 1 to this Agreement as well as HUGO BOSS trademarks under application or registration in the future in Nice classes 14 and 35.

   

  1.41	“Traditional Trademarks” shall mean the trademarks “BOSS HUGO BOSS” and “HUGO HUGO BOSS” as set forth in Annex 2 to this Agreement.

   

  

  6

  1.42	“Traditional Watches” shall mean Watches for men and women bearing the Trademarks and/or Traditional Trademarks on labelling, tags and/or on the products themselves, but excluding Technology-Enabled Watches.

   

  1.43	“Transferred Marketing Spendings” shall have the meaning as set forth in Clause 11.6.

   

  1.44	“Watches” shall mean watches including wristwatches, wall clocks, alarm clocks, and watch straps.

   

   

  2	Grant of License

   

  2.1	Subject to the terms of this Agreement, HUGO BOSS hereby grants to the Licensee an Exclusive non-transferable license to use the Trademarks for the creation, design, production, labelling, packaging, marketing, advertising, promotion, sale and distribution of Watches and the BOSS Trademarks for the creation, design, production, labelling, packaging, marketing, advertising, promotion, sale and distribution of Jewelry in the License Territory, and in connection therewith, and subject to the terms of this Agreement, to use the reputation and the image of HUGO BOSS and the products of HUGO BOSS.

   

  "Exclusive" shall mean that during the term of this Agreement, HUGO BOSS will not grant any further licenses for the creation, design, production, labelling, packaging, marketing, advertising, promotion, sale and/or distribution in the License Territory of the Licensed Products and/or the HUGO BOSS Designs and moreover will not itself produce and/or distribute any Licensed Products (other than distribution in HUGO BOSS Retail Stores) and/or HUGO BOSS Designs in the License Territory, unless covered by Clauses 2.5 and /or 2.6. Notwithstanding the foregoing, “Exclusive” shall not be interpreted to prohibit HUGO BOSS from itself producing and distributing Jewelry bearing the HUGO Trademarks prior to the HUGO Jewelry Longstop Date (as defined in Section 2.6 below).

   

  2.2	Further, HUGO BOSS grants to the Licensee an Exclusive, non-transferrable license to use the Traditional Trademarks for the sale and distribution of Traditional Watches already manufactured under the Second Licensing Agreement and Term Sheet. This license does not contain the right to create, design or produce new Traditional Watches but shall be limited to the sale and distribution of the existing stock.

   

  2.3	The license granted includes, besides the right to use the Trademarks, the right to use the Trademarks in advertising and PR materials, in promotional materials and on the packaging of the Licensed Products, subject to and within the limitations of the other provisions of this Agreement, in particular Clause 12.

   

  2.4	The license further includes the Exclusive non-transferable right to use the HUGO BOSS Designs and the non-exclusive right to use the promotional material and all associated copyrights, trade dress rights, and other design rights produced by HUGO BOSS according to Clause 12.

   

  2.5	[***]

   

  2.6	Licensee may at any time notify HUGO BOSS that Licensee wishes to launch Jewelry under the HUGO Trademarks (“HUGO Jewelry”). Such notification shall include a reasonably detailed business plan in respect of such launch. HUGO BOSS shall promptly review such business plan and shall approve or disapprove 

  

  such business plan acting reasonably, in good faith and in a spirit of collaboration. After any such business plan is approved, HUGO BOSS shall discontinue producing and distributing HUGO Jewelry no later than the later of (i) Licensee’s proposed launch date or (ii) the date [***] after the date on which Licensee first furnished such business plan to HUGO BOSS or (iii) after termination or expiration of a third-party license agreement for HUGO Jewelry, which was entered into subject to the terms below (such later date, the “HUGO Jewelry Longstop Date”), whereas HUGO BOSS shall have a sell-off right of [***] after the “HUGO Jewelry Longstop Date. Effective on the date of approval of Licensee’s business plan for the launch of HUGO Jewelry, Section 2.1 above shall be deemed amended to provide that Licensee’s Exclusive license shall encompass HUGO Jewelry. [***]

   

  

  8

   

   

  2.7	Without prejudice to the above, Licensee acknowledges that HUGO BOSS is the firm, business, company and trade name of the HUGO BOSS Group and is not licensed in such capacity or as part of an internet domain name. Therefore, HUGO BOSS and the HUGO BOSS Group are not restricted in the use of their firm, business, company and trade name in any respect. The use of the Trademarks by Licensee on letterhead, forms, business cards, etc. requires the prior written approval of HUGO BOSS.

   

  2.8	It is the intention of the Parties that the Licensee exploits the rights granted hereunder throughout the whole of the License Territory to the extent commercially reasonable. Subject to the terms of this Agreement, it shall be considered commercially reasonable for the Licensee to make use of the license and engage in an active course of distribution and marketing activities in those countries within the License Territory where the HUGO BOSS Group has a significant existing marketing and distribution structure for its core products. However, the Parties agree that Licensed Products shall be distributed, marketed and sold – at a minimum - in the Key Markets.

   

  2.9	Notwithstanding the foregoing, HUGO BOSS retains the right to produce and/or distribute Licensed Products bearing the Trademarks to the extent it in good faith deems such use necessary or useful in order to perfect or preserve its rights in the Trademarks and only to the extent that Licensee has refused or failed to provide HUGO BOSS with the necessary Licensed Products within a reasonable time after written request made to Licensee by HUGO BOSS. All such Licensed Products provided by Licensee to HUGO BOSS shall be under terms of sale that are [***] consistent with Clause 9 hereof. Moreover, nothing set forth herein shall limit in any way HUGO BOSS' right to manufacture and/or distribute and/or grant licenses for manufacture and/or distribution of products other than Licensed Products.

   

  2.10	Licensee had the right to create and sell BOSS Orange Watches under the Second License Agreement. However, Licensee agrees that it has no right anymore for the creation, design, production, labelling, packaging, marketing, advertising, promotion, sale and distribution of any product under the BOSS

   

  

  9

  Orange trademark. Any remaining stocks of products under the trademark BOSS Orange must be destroyed immediately after the full execution of this Agreement.

   

   

  3	Subcontractors

   

  3.1	The Licensee may not sublicense the rights granted hereunder, provided however, that the Licensee is entitled to have the Licensed Products manufactured by third parties acting as subcontractors under the provisions stipulated herein. In any case, manufacturers of the Licensed Product are to be considered as subcontractors according to this regulation. Licensee shall inform HUGO BOSS in a timely manner of new subcontractors at the latest [***] after production start.

   

  3.2	Licensee warrants to HUGO BOSS that each subcontractor will be bound to all applicable requirements of this Agreement and will perform all relevant obligations under this Agreement.

   

  3.3	HUGO BOSS may request for cause, upon written notice to Licensee, at any time that a subcontractor shall discontinue the manufacturing of the License Products. It shall be considered as cause if, based on reasonable grounds which shall be set forth in the written notice delivered to Licensee as provided above, it appears likely that the subcontractor engages in acts or omissions that cause or are likely to cause damage to the brands, marketing concept, image or reputation of HUGO BOSS and/or the Trademarks and/or Traditional Trademarks, in particular but not limited to through the production of Licensed Products of inferior quality. The Licensee warrants that its agreements with subcontractors shall provide for immediate termination on the aforementioned grounds in a manner to ensure that the Licensee can comply with its obligations under this Agreement.

   

   

  4	HUGO BOSS Team

   

  4.1	Licensee shall at all times maintain a product development team of highly experienced and qualified people in charge of the global product, marketing and brand development as well as the overall distribution and sales strategy of the Licensed Products according to the chart in Annex 3, and including [***].

   

  

  10

  4.2	Licensee shall give due consideration to HUGO BOSS’ input regarding the appointment, or continued support of team members dedicated to the HUGO BOSS Licensed Products. From time to time, the Parties shall in good faith discuss adding additional team members.

   

  4.3	Licensee shall entrust the distribution of the Licensed Products as follows:

  	[***] The distribution system, as well as the countries included within Licensee’s key market plan and Licensee’s organizational structure with respect to the License Products, are set forth in the Business Plan.

  	Licensee will select its sales personnel in accordance with and inform its sales personnel of the product philosophy of the Licensed Products as communicated by HUGO BOSS. Upon request by HUGO BOSS, Licensee shall cause its employees who are entrusted with the distribution of the Licensed Products to be trained regularly by HUGO BOSS or by persons or companies instructed by HUGO BOSS. Licensee will require each such employee to abide by such product philosophy.

   

   

  5	License Fees / Advertising Fees

   

  5.1	[***].

   

  5.2	As compensation for the rights and opportunities for use provided in this Agreement, Licensee shall pay to HUGO BOSS a license fee each year equal to the greater of (i) the amount of [***] of the Net Sales (“License Fee”) (excluding Net Sales derived from sales to HUGO BOSS Group) or (ii) the guaranteed minimum license fee calculated on the basis of the Minimum Net Sales as set forth in the Business Plan in Annex 5 (“Guaranteed Minimum License Fee”).

   

  5.3	Further, Licensee shall pay to HUGO BOSS an Advertising Fee each year equal to the greater of (i) [***] of actual Net Sales in such year or (“Advertising Fee”) or (ii) the guaranteed minimum advertising fee calculated on the basis of the Minimum Net Sales as set forth in the Business Plan in Annex 5 (“Guaranteed Minimum Advertising Fee”).

   

  5.4	The Guaranteed Minimum License Fee and the Guaranteed Minimum Advertising Fee for each year shall be payable in twelve (12) equal monthly instalments throughout such year subject to receipt of an invoice, which can be issued on the last day of each month.

   

  5.5	Transferred Marketing Spendings shall be invoiced immediately upon occurrence or as agreed between the Parties.

   

  

  11

  5.6	No later than 30 days after the last day of each calendar quarter (April 30, July 30, October 30, and January 31, respectively, or if such date shall fall on a weekend or holiday, the following business day), Licensee shall submit to HUGO BOSS a written statement setting forth the License Fee and Advertising Fee due for the immediately preceding calendar quarter, giving a count [***] of total Licensed Products sold and the applicable Gross Sales, deductions and Net Sales. Based on this statement, HUGO BOSS shall issue invoices for the Advertising Fee and License Fee due for the calendar quarter then ended, which shall be reduced by the amount of Guaranteed Minimum License Fees and Guaranteed Minimum Advertising Fees already paid in respect of such calendar quarter.

   

  After the fourth quarter each year, Licensee shall determine the License Fee and the Advertising Fee due for such year and, where necessary, the difference between the Guaranteed Minimum Annual Fees and the License Fees and Advertising Fees paid for such year.

   

  5.7	Moreover, the Licensee shall submit written Net Sales Monthly Statements of the Gross Sales, deductions and Net Sales of Licensed Products of [***]. This Net Sales Monthly Statement shall be sent to HUGO BOSS no later than [***] days after the last day of the relevant month. Reporting currency will be EUR.

   

   

  6	Payments / Taxes

   

  6.1	All payments shall be subject to receipt of an invoice. Invoices for the License Fee and Guaranteed Minimum License Fee shall be payable within [***] days. Invoices for the Advertising Fee, Guaranteed Minimum Advertising Fee, Transferred Marketing Spendings, and Signing Fee shall be payable within [***] days.

   

  All License Fees and Advertising Fees shall be paid in Euro. All exchange rates for sales in local currencies to CHF or USD counting towards the calculation of the License Fees and Advertising Fees, shall be made in a transparent and auditable manner. The USD-EUR and CHF-EUR exchange rate for the reporting statements under this Agreement shall be [***].

   

  6.2	Payments shall be made to the following account: [***]

  

  12

   

  or such other account as HUGO BOSS may from time to time designate to Licensee in writing. Any amounts owing to HUGO BOSS which are more than [***] days past due shall bear interest at a rate of [***].

   

  6.3	All payments to be made by Licensee to HUGO BOSS under this Agreement do not include any VAT (or equivalent sales or turnover tax) and, if applicable, the respective VAT (or equivalent sales or turnover tax) amount shall be added to each amount payable in accordance to the applicable rate and to be paid by Licensee. The Parties shall closely cooperate and assist each other in order to avoid any withholding taxes or reduce the amount of withholding taxes to the extent permitted by applicable laws. To the extent that Licensee is required to withhold taxes on any payments under this Agreement, Licensee shall deduct and pay the amounts of such taxes to the proper governmental authority in a timely manner and promptly transmit to HUGO BOSS an official tax certificate or other evidence of such withholding sufficient to enable HUGO BOSS to claim such payments of taxes. Each Party shall provide the other with reasonable assistance to enable the recovery, as permitted by law, of withholding taxes, VAT (or equivalent sales or turnover tax), or similar obligations resulting from payments made under this Agreement, such recovery to be for the benefit of the Party bearing such withholding tax or VAT (or equivalent sales or turnover tax).

   

   

  7	Product Development, Product Design

   

  7.1	To ensure the uniformity of upper premium quality and image in all products sold by HUGO BOSS and Licensee and bearing Trademarks or Traditional Trademarks, the principal design guidelines and general structure of the collection shall be provided by HUGO BOSS to Licensee for development of the Licensed Products. Licensee agrees to observe and comply with all such guidelines and briefings and acknowledges HUGO BOSS’ high quality standards and reputation in high end fashion products. HUGO BOSS will notify Licensee in due time when such guidelines will be materially modified.

   

  7.2	[***]each year, the Parties will agree on a timeline for the design approval steps and meetings for the following [***] product releases. Licensee will organise the approval meetings according to the agreed timeline to allow selection discussions and approval of prototypes and creative sketches for all the upcoming collections. Watches and Jewelry for the respective BOSS Trademarks and HUGO Trademarks shall always be discussed during the same meeting.

   

  7.3	At every design approval meeting, and for each of the Licensed Products and/or line/collection of Licensed Products, Licensee will provide HUGO BOSS with:

   

  a)	[***];

   

  

  13

  b)	[***];

   

  c)	[***]; and

   

  d)	[***].

   

  7.4	HUGO BOSS and Licensee can mutually agree to change product development classifications and add/replace wearing occasions. A product calendar will be provided, substantially in the form of Annex 7.

   

  7.5	HUGO BOSS shall, with respect to each submission made by Licensee for approval, notify Licensee in writing without undue delay, and in any event within [***] days, as to whether it approves the submission. Any approval is [***]. Unless HUGO BOSS disapproves any submission with the specified time period, it will be deemed approved. In the event HUGO BOSS disapproves any submission, it will furnish Licensee with the reasons for such disapproval together with notice thereof.

   

  7.6	Licensee shall not proceed with the manufacture of a new product design for any Licensed Product without the written approval of HUGO BOSS as provided hereunder.

   

  7.7	Following approval by HUGO BOSS of any prototype as provided hereunder, Licensee shall provide HUGO BOSS with samples of the Licensed Products from the first production run using the approved designs [***].

   

  7.8	The Parties acknowledge and agree that it is essential to the image and reputation of HUGO BOSS to regularly adjust the range of designs of the Licensed Products (like those of HUGO BOSS and its other licensees) to meet new demands and fashion trends. The intervals of the renewal and expansion of product designs will be mutually determined by the Parties acting in good faith. [***],

   

  

  14

  HUGO BOSS and Licensee will organise and engage together on design trends research trips, i.e. fairs, HUGO BOSS showroom visits and trend areas in selected locations.

   

  7.9	Licensee shall provide HUGO BOSS, [***] working samples of each launched Licensed Product. For selected advertising, maximum [***] PR & Influencer pieces per year and per Product Category will be provided as per Clause 12.3.

   

  7.10	Licensee shall prepare and submit to HUGO BOSS for review and comment specific non-binding retail price recommendations for the Licensed Products. All comments on non-binding retail price recommendations and any changes thereto must be provided in writing by HUGO BOSS not later than [***] working days after Licensee’s request for input has been submitted to HUGO BOSS. [***]. Nothing contained in this Agreement is intended or will be construed as giving either Party any right of approval with respect to any of the prices at which the other Party sells or offers to sell any of the Licensed Products.

   

  7.11	The Parties shall agree on an annual general launch schedule, and on further seasonal launch schedules based on said annual launch schedule.

   

   

  8	Quality and Compliance

   

  8.1	The Parties acknowledge that the maintenance of HUGO BOSS’s standards of quality, design and presentation is essential in order to preserve the upper premium prestige of the Trademarks and Traditional Trademarks, the HUGO BOSS Intellectual Property and the goodwill and reputation associated with them. Accordingly, HUGO BOSS shall have control over the quality of the Product and Licensee undertakes to adhere to HUGO BOSS’s reasonable standards of quality in accordance with this Agreement. In furtherance and not in limitation of the foregoing, Licensee shall use all commercially reasonable efforts to ensure that all Licensed Products comply with Licensee’s General Acceptance Requirements for the Licensed Products, the current edition of which is attached hereto as Annex 13.

   

  8.2	The Licensee is obliged to comply with the applicable national laws and international standards and specifications for the manufacture and sale of Licensed Products, including but not limited to the respective customs requirements or health and safety provisions. Licensee ensures that, at all times, its commercial methods in the Licensed Territory comply with the generally accepted standards in the Licensed Territory. The Licensee also undertakes to respect all applicable international treaties and the national legislation in terms of the laws on employment and working conditions, environmental protection, competition and consumption.

   

  

  15

  8.3	The Licensee agrees to comply with all documents, which are uploaded from time to time on the so called “HUGO BOSS Vendor Management Platform”, being understood that, [***].

   

  8.4	Licensee also undertakes to comply to the standards of quality (including, without limitation, materials, design and workmanship) provided for under the relevant laws in force (as such standards may be mutually updated by the Parties), and safeguard the quality of Licensed Products by means of quality-control measures detailed in Annex 4 and already approved by HUGO BOSS. Any modifications of Annex 4 need the prior written approval of HUGO BOSS. The Licensee shall conduct reasonable and sufficient product safety tests using an accredited test institute such as UL or SGS.

   

  8.5	The Licensee maintains comprehensive records of the development and production of Licensed Products and shall provide such documents to HUGO BOSS upon request, including but not limited to [***]

   

   

  8.6	Furthermore, the Licensee shall deliver exclusively goods that have not been imported or exported in violation of the Washington Convention on International Trade in Endangered Species (CITES) or Directive EU 338/97 or any other relevant international or national agreements on the protection of endangered species. Licensee shall without being requested to do so present any required permit(s) upon delivery of the goods, in the event that an import and/or export permit is required under the provisions of the above-mentioned endangered species conventions. Licensee guarantees to act in compliance with the relevant provisions.

   

  

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  8.7	Licensee assures to fulfil its obligations according to the respective local packaging ordinance referring to post-consumer packaging placed on the respective local market directly or through its local distributors. [***].

   

  8.8	In order to ensure (i) the quality of the Licensed Products as regulated pursuant to this Agreement, (ii) Licensee’s compliance with applicable laws, regulations and industry standards relating to the Licensed Products, and (iii) Licensee’s compliance with all related material terms of this Agreement, HUGO BOSS, through its employees, may [***].

   

  8.9	In the event that the Parties should determine that Licensed Products produced or in production do not conform to the required specifications under this Agreement or that there are other quality problems with Licensed Products (such problems becoming apparent [***]) each Party shall give written and motivated notice of such objective quality problem to the other Party. HUGO BOSS shall determine, in [***], whether the affected Licensed Products may be sold. In any case in which such a quality problem has been noted, no affected Licensed Products shall be distributed (i) until HUGO BOSS, upon discussing with the Licensee, has approved and monitored modifications to said products or otherwise indicated in writing that the products are acceptable; and (ii) Licensee has adopted any kind of alternative solutions in order to make the Licensed Products saleable, removing the quality problem.

   

  8.10	In the event that quality problems should appear which cannot be solved by the Licensee, HUGO BOSS shall be notified prior to the distribution of these Licensed Products, so that HUGO BOSS can make appropriate decisions that shall be binding upon the Licensee. In any questionable case, these Licensed Products cannot be distributed until HUGO BOSS has approved in writing and monitored the modifications to them. If modifications or improvements are not possible, the affected Licensed Products will be destroyed, with the exception of usable components, giving proof to HUGO BOSS and the costs thereof borne by Licensee.

   

  

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  8.11	The Licensee

  a)	guarantees that employees of Licensee will not offer, grant or promise any financial or other advantages (e.g. money, gifts, benefits, etc.) to employees of HUGO BOSS or third parties (in particular business partners or civil servants, public employees or other office holders in a position of trust) in return for unfair acts in relation to a decision, task or measure (prohibition of corruption). A person acts in an unfair manner who does not act in accordance with the principle of good faith or performs a task in a legally impermissible manner;

  b)	shall observe and comply with the applicable competition and antitrust regulations. Improper conduct in the market or towards HUGO BOSS and other market participants is prohibited;

  c)	shall not support money laundering or the financing of terrorism and shall comply with the national and international regulations applicable in this area; and

  d)	shall respect and comply with any applicable national and international sanctions and boycotts. Sanctions and similar against the supplier itself or upstream suppliers shall be reported immediately.

   

  8.12	The Licensee undertakes to report violations of the provisions of this clause to HUGO BOSS without delay in order to avoid damage to its reputation or other damage to the detriment of HUGO BOSS. This also applies to violations by affiliated companies of the Licensee (e.g. subsidiary). Violations may be reported to [***].

   

  8.13	In the event of a breach of the provisions of this clause, the Licensee is obliged to support HUGO BOSS in obtaining information concerning the Licensee (including affiliated companies) or its upstream suppliers and to [***]transmit the documents requested by HUGO BOSS in electronic form and English translation. If the responsibility for the violation of the provisions of this clause lies within the sphere of the Licensee, HUGO BOSS shall be entitled to charge the Licensee for its own expenses.

   

   

  9	Distribution

   

  9.1	Licensee shall be responsible for the distribution of the Licensed Products throughout the License Territory. The Parties agree that the Licensed Products shall be distributed through a selective distribution system ensuring that distribution of the Licensed Products meets the image of the Trademarks as well as Traditional Trademarks and complies with the reasonable, generally- applicable sales and marketing policies of HUGO BOSS as well as the Online Guidelines attached as Annex 8.

   

  9.2	Licensee shall prepare and submit to HUGO BOSS for approval a template selective distribution agreement to be used with all distributors appointed by Licensee to distribute the Licensed Products. The selective distribution agreement shall contain all qualitative and/or quantitative criteria for the admission of Distributors to the selective distribution system and shall oblige all Distributors (i) to meet these criteria at all times and (ii) to sell the Licensed Products only to consumers or to other Distributors. All template selective distribution agreements and any changes to an individual selective distribution agreement that alters the

   

  

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  Selective Criteria or may otherwise adversely affect the reputation of the Trademarks and/or Traditional Trademarks must be approved in writing by HUGO BOSS not later than [***] working days after Licensee’s request for approval has been submitted to HUGO BOSS. Licensee acknowledges that in order to preserve the goodwill attached to the Trademarks as well as Traditional Trademarks, the admission criteria shall be designed to ensure that Licensed Products are distributed through the following distribution channels only: [***]

   

   

  9.3	Within the framework of the Business Plan and based on the Selective Criteria, Licensee shall suggest, and the Parties shall agree on, individual distribution channels (importers, retail dealers, “points of sale”) for the Licensed Products. Without limitation, [***] and Mass Distribution is not considered to be in line with the quality, upper premium prestige and international reputation of the Trademark. As a benchmark, the Licensed Product should be sold preferably to doors that primarily stock premium brands from internationally recognised manufacturers for each of the Product Categories.

   

  9.4	Licensee shall undertake [***] to set up a world-wide selective distribution network within the scope of the rights granted in this License Agreement. Licensee shall enter into separate selective distribution agreements with its wholesale Distributors [***]. No rights or duties shall be derived for HUGO BOSS from the resulting direct contract relationship between Licensee and its Distributors. However, Licensee guarantees that the agreements between Licensee and its Distributors will terminate if this License Agreement between HUGO BOSS and the Licensee terminates for any reason whatsoever. If HUGO BOSS or any of its Affiliates entered into an agreement with such Distributor, and such agreement terminates or expires for whatever reason, the Parties will in good faith discuss whether HUGO BOSS shall terminate its agreement with such Distributor as well, provided, however, that [***].

   

  

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  9.5	Licensee is obliged to terminate its contract relationship with a Distributor with notice of [***] upon request by HUGO BOSS if HUGO BOSS deems that such Distributor no longer meets the Selective Criteria or otherwise repeatedly or materially breaches its obligations under the selective distribution agreement. In addition, Licensee is obliged to terminate its contract relationship with a Distributor with immediate effect if HUGO BOSS has a reasonable basis to believe that the further collaboration with such Distributor will provide serious damages to the reputation and image of the Trademarks and/or the Traditional Trademarks. Licensee warrants that such a remedy and termination clause will be provided for in the respective agreements.

   

  9.6	Licensee shall handle all customer inquiries and complaints relating to the Licensed Products in a manner consistent with the manner in which it handles customer inquiries and complaints relating to licensed products it sells at comparable prices under other brand names. Licensee shall provide substantially the same service, warranties, repair and replacement rights to wholesale purchasers and consumers of the Licensed Products as it provides to purchasers of such other products. Licensee shall be solely responsible for all costs associated with the handling of such inquiries and complaints and the provision of such service. The after sales service is subject to the quality requirements as stated in Clause 8 of this Agreement and may be controlled by HUGO BOSS in accordance with the same conditions. Licensee will provide a central contact for all after sales service requests to ensure a smooth coordination and timely processing of all requests.

   

  9.7	HUGO BOSS and Licensee will agree on a minimum of [***]joint market visits to subsidiaries and/or distributors for each year. Licensee shall organize meetings with key representatives of each market to perform a business assessment of each selected market.

   

  9.8	In case Licensee grants return rights to wholesale partners and wholesale partners make use of such return right, Licensee shall either claim back the goods or shall ensure to receive a proof of destruction of the goods.

   

   

  10	Sales to and by HUGO BOSS

   

  10.1	At the request of HUGO BOSS, Licensee will sell the Licensed Products to HUGO BOSS itself (including HUGO BOSS Retail Stores), to organisations within HUGO BOSS’ distribution network for further distribution to its local customers (e.g. franchising stores, BOSS Shops in Shops, etc.) [***]. The Parties will use their[***] to ensure that the Licensed Products will have a permanent presence in these stores with mutually agreed presentation standards in accordance with the yearly assortment planning aligned between the Parties.

   

  10.2	All sales by Licensee to HUGO BOSS and the HUGO BOSS Group shall generally be at [***]and delivered within the European Union according to the ICC’s INCOTERMS® 2020 [***] and outside the European Union according to the ICC’s

   

  

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  INCOTERMS® 2020 [***], unless expressly agreed otherwise.

   

  10.3	Licensee will grant HUGO BOSS an annual return right (the “Annual Return Right”) in the amount of [***] of the Licensed Products sold to HUGO BOSS’ owned full-priced retail stores.

   

  10.4	Licensee acknowledges that Licensed Products supplied to HUGO BOSS and/or the HUGO BOSS Group, as well as organisations within HUGO BOSS’ distribution network may need to be relabelled. Upon HUGO BOSS’ request, Licensee will use its [***] to provide labels which meet HUGO BOSS’ labelling requirements.

   

  10.5	Licensee shall not materially breach the applicable terms and dates of delivery and shall in a timely and complete manner inform HUGO BOSS of any material problems which arise in connection therewith, particularly delivery delays.

   

  10.6	Licensee shall inform HUGO BOSS every season about the changes of the assortment such as carry over and phase-out products. Dates need to be mutually agreed but are expected to occur in [***].

   

  10.7	[***], Licensee will provide a phase-out list of the discontinued styles [***]. HUGO BOSS’ owned full-priced retail stores shall be free either (i) to return the discontinued styles to Licensee in saleable condition, in which case such returns shall count against the Annual Return Right, or (ii) to transfer the discounted styles directly to HUGO BOSS’ Outlet Stores (“Full-Price to Outlet Transfers”). In case of any Full-Price to Outlet Transfer, a total discount of [***] shall apply, and Licensee shall, promptly after receiving written notice of such transfer containing such information as Licensee shall reasonably require, issue to HUGO BOSS a credit for [***] (representing the difference between the price originally paid by HUGO BOSS as specified by the immediately preceding paragraph and the price calculated using the [***] discount specified by this paragraph).

   

  10.8	Licensee will grant a discount of [***] on RRP on Licensed Products to be sold at HUGO BOSS’ Outlet Stores (excluding Full-Price to Outlet Transfers). The Parties will use their [***] to ensure that the Licensed Products will have a permanent presence in these stores with mutually agreed presentation standards. There are no return rights from HUGO BOSS’ Outlet Stores.

   

   

  11	HUGO BOSS Marketing

   

  11.1	With regard to the general HUGO BOSS marketing activities, HUGO BOSS alone is in charge of all activities including all marketing, advertising (e.g. newspapers, magazines, billboards, TV, radio, online, social media) and promotional as well as sport and art sponsoring activities.

   

  11.2	Within the framework of the Business Plan, marketing and advertising activities by HUGO BOSS in connection with the Licensed Products shall be agreed upon

   

  

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  with the Licensee, with both Parties acting reasonably. If the Parties do not agree, [***], until a reasonable understanding between the Parties is reached. The Parties shall inform each other regularly about the implementation of the Business Plan.

   

  11.3	Subject to the provisions of clauses 11.2 and 11.5, HUGO BOSS is in charge of the conception, design, execution, and payment of the global above-the-line communication channels, meaning print (e.g. newspapers, magazines), out-of- home (e.g. billboards), TV, radio, online, social media, paid media (paid social, paid display advertising, paid native advertising), app, newsletters, and websites, which highlights the Product Categories (“Above-the-Line Activations”). A Product Category is considered highlighted if the Product is [***].

   

  11.4	HUGO BOSS shall receive an Advertising Fee or Guaranteed Minimum Advertising Fee. Such fee shall be used to contribute to the costs for the Above- the-Line Activations. Licensee shall timely and regularly inform HUGO BOSS about the projected License Fees to allow HUGO BOSS to project and spend the Advertising Fee in a given year. The information and projections shall be as precise as possible to ensure that the unspent amount, if any, does not exceed [***] of the agreed annual amount and will be spent [***].

   

  11.5	Subject to the provisions of clause 11.2 and the below provisions of this clause 11.5, HUGO BOSS is further in charge of the conception, execution, and post- production of the following content creation, featuring and/or highlighting the Product Category:

   

  	Campaign shootings (concept, organization, execution);

  	Product still lifes, which will be shown along the main fashion campaign (concept, organization, execution); and

  	Negotiation and contracting with celebrities, famous athletes, or other comparable talents, which are also part of the main fashion campaign (hereinafter “HB Category Content”).

   

  The Parties shall agree on deliverables to be produced by HUGO BOSS and to be provided to Licensee. The Parties acknowledge that deviations from the agreed deliverables may occur during the creative process and that such deviation shall not be a breach of a contractual obligation. In case of substantial deviations from the agreed deliverables, the Parties shall agree on a solution both acting [***].

   

  In case HUGO BOSS does not wish to create the HB Category Content, [***].

   

  11.6	The costs for the HB Category Content shall be borne by [***]. The Parties shall agree on costs to be covered by Licensee beforehand (“Transferred Marketing Spendings”).

   

  

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  12	Licensee Marketing

   

  12.1	Licensee is in charge of the conception, execution, and post-production of the following content creation: Product still lifes, beauty and pack shots (not on a model), which are intended for wholesale and pure online retail activations as well as product catalogues or cooperative advertising.

   

  12.2	Licensee is responsible for the global conception, design, and execution and shall cover the cost for below-the-line activations meaning sales promotions tools (give- aways, catalogues, bags, gift boxes), corporate posters, exhibitions/fairs/trade shows, showrooms, public relations (for events), press relations, corner and shop fixturing, commercial furniture, Point of Sale advertising, signs and markings; visual merchandise with regard to the Licensed Products, i.e. stand-ups, window cards, product displays, other promotional material, catalogues for retailers and/or sales representatives; cooperative online and offline advertising with retailers (“Below-the-Line Activations”). Licensee shall in general use the HB Category Content for all Below-the-Line Activations, unless otherwise agreed between the Parties.

   

  12.3	Licensee shall be responsible for public relations activities with regard to the Licensed Products, i.e. texts, PR shootings, placement in end-consumer press and trade press throughout the License Territory. However, all public relations activities require the prior written approval of HUGO BOSS. In furtherance of the foregoing public relations activities, HUGO BOSS may also conduct PR services. To this end, Licensee shall furnish to HUGO BOSS at its request each calendar year up to [***] units of Licensed Products for HUGO BOSS to use solely in connection with public relations activities promoting the Licensed Products, including, without limitation, gifts to celebrities, press events and other related purposes.

   

  12.4	Licensee shall be responsible for any category specific influencer activations. Any such influencer activation must be approved by HUGO BOSS and HUGO BOSS may provide Licensee pre-approved influencer lists, which Licensee will take into account in good faith when organising such influence activation.

   

  12.5	Licensee may carry out all marketing activities set forth under Clause 12 using its own personnel and at its own cost. In addition, Licensee has the right to work with an external agency for the activities under Clauses 12.3 and 12.4, subject to HUGO BOSS’ prior approval. For the avoidance of doubt, HUGO BOSS shall have an approval right over the selection of such agency. If HUGO BOSS reasonably believes that the latter services cannot be performed by Licensee itself, HUGO BOSS may request that such services be performed by an external agency and Licensee shall be obliged to contract with an external agency.

   

  12.6	Licensee shall be responsible for ad hoc market research dedicated to the Licensed Products and for the conception, design and carry out of point-of-sale activities.

   

  12.7	Licensee shall bear responsibility for all costs for the activities referred to in Clauses 12.1 - 12.6. For those activities Licensee shall spend or cause its distributors to spend at least [***] of the Net Sales throughout the term of this agreement (“Marketing Spending”).

   

  

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  12.8	Licensee will provide HUGO BOSS with [***]Marketing Spending appraisals. The Marketing Spending shall be auditable by HUGO BOSS.

   

  12.9	All Below-the-Line Activations and marketing activities by Licensee are subject to the prior approval of HUGO BOSS, not to be unreasonably withheld. The Parties will consult at least [***], to review the level of actual expenditures for (i) the production and placement of advertising for the Licensed Products in print and electronic media and (ii) the activities set forth under this Clause 12, relative to sales growth, including consideration of whether certain increases in such expenditures are appropriate. Licensee shall provide HUGO BOSS with a detailed appraisal of the previous investment(s) and actions/results obtained by [***]. At the latest by [***], Licensee shall propose for HUGO BOSS’ feedback and input a detailed [***]investment plan, including the on- and offline media/advertising plans directly booked by Licensee or its Affiliates/distributors, by [***], which is mutually to be agreed by the Parties acting reasonably. If the Parties disagree as to whether amendments or increases are appropriate, a top management meeting of the Parties can be called by either Party and the Parties will use their best efforts to resolve such disagreement.

   

  12.10	For the avoidance of doubt, use of the Trademarks on promotional gifts is only permitted upon obtaining the prior written approval of HUGO BOSS.

   

  12.11	The Parties agree that their respective Above-the-Line and Below-the-Line Activations shall benefit all Product Categories in a ratio to be agreed upon by the Parties.

   

  12.12	Licensee will invest additional funds at a minimum percentage of Net Sales as agreed by the Parties to support Licensee’s marketing activities referred to in this Clause 12 in order to ensure driving sales and brand messaging while giving due consideration to prevailing market conditions in each Key Market and to the financial implications for both Parties (“Additional Marketing Investment”). The Additional Marketing Investment is set out for the respective year in the Business Plan in Annex 5. The investment will be covered by a guarantee of Movado Group, Inc., the ultimate mother company of Licensee, as per Annex 9.

   

  Any such Additional Marketing Investment shall be made in close co-operation with and upon prior approval of the marketing plans by HUGO BOSS in [***].

   

  The Additional Marketing Investment referred to in this Clause 12.12 shall not count towards the Marketing Spending.

   

  12.13	Costs incurred by Licensee in connection with customer accommodation or after sales service, customer gifts or invitations, dealers' meetings and training of marketing and sales personnel shall be borne solely by Licensee in addition to the Marketing Spending.

   

  12.14	Licensee undertakes, and shall ensure that its Distributors undertake, to only use the Trademarks and/or Traditional Trademarks in combination with the terms

   

  

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  “watches’ and “jewelry” [***].

   

   

  13	Business Plan and Action Plan

   

  13.1	The Parties have agreed upon a Business Plan for the period 2022 through [***], as set forth in Annex 5.

   

  13.2	No later than [***] of each calendar year during the term of this Agreement, Licensee shall prepare and present to HUGO BOSS for feedback and input the updated Action Plan.

   

  13.3	HUGO BOSS and Licensee shall agree on the [***] Action Plan in a joint annual strategy meeting. If the Parties cannot agree on the [***] Action Plan, a top management meeting of the Parties can be called by either party and both Parties will use their best efforts to solve the issue.

   

  13.4	On request by HUGO BOSS, Licensee shall inform HUGO BOSS in writing of actions taken and confirm compliance with the individual steps of the [***] Action Plan and the implementation of the planned activities.

   

  13.5	Each [***], Licensee will submit to HUGO BOSS, a schedule showing in detail the projected sales and marketing plans of the Licensed Products for the next following [***].

   

   

  14	Information, Co-ordination and Co-operation / Audit

   

  14.1	Any and all public statements, publications and information given to third parties concerning this Agreement or the relationship between Licensee and HUGO BOSS generally must be previously agreed upon by the Parties, except where such statements are required by law or government act. However, the Parties shall inform each other of such statements required by law or government act. Normal company information of Licensee and HUGO BOSS that does not contain any statements regarding the contents of this Agreement or its relationship with HUGO BOSS is exempted from this provision.

   

  14.2	Licensee shall refrain from any activity which would reasonably be expected to adversely affect the cooperation of the Parties under this Agreement and any third party licensee of HUGO BOSS with respect to production, distribution, sales and

   

  

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  promotion campaigns or any other activity using or in connection with the Trademarks.

   

  14.3	Licensee shall inform HUGO BOSS in a timely manner, if it terminates the collaboration with a distributor.

   

  14.4	HUGO BOSS and the Licensee shall each designate a person at their respective companies to be in charge of the development, design and marketing of the Licensed Products.

   

  14.5	In co-ordination with Licensee, HUGO BOSS has defined all reporting data relevant to HUGO BOSS' quality control of the manufacture, distribution and sale of Licensed Products (Annex 6) and shall specify the frequency with which such data is to be made available. The Parties acknowledge that separate reports are required for Watches and Jewelry. This data must be electronically processed and made available to HUGO BOSS via data transmission in a complete and timely manner. The Parties shall jointly decide on changes to the reporting data format.

   

  14.6	HUGO BOSS may specify and furnish the data processing interfaces necessary for a smooth exchange of data in accordance with Licensee; provided that, in any event, it shall be sufficient if Licensee furnishes the required reporting data to HUGO BOSS via email.

   

  14.7	The Parties will endeavour to keep each other fully informed on a timely basis of all issues that reasonably could be expected to have a material impact on the creation, design, production, labelling, packaging, marketing, advertising, promotion, sale or distribution of the Licensed Products and Licensee shall furnish HUGO BOSS with such reports in respect thereof as HUGO BOSS may reasonably request from time to time.

   

  14.8	In addition, Licensee shall furnish HUGO BOSS with the following management information:

  	Budget and planning for [***];

  	[***]reports on problems concerning product quality and customer complaints.

   

  The Parties shall, on a routine basis but no less often than [***], fully inform each other on all other matters, problems and actions which affect the creation, design, production, labelling, packaging, marketing, advertising, promotion, sale or distribution of the Licensed Products.

   

  14.9	During the term of the Agreement and for [***] after its termination, Licensee shall keep complete and accurate records of sales subject to License Fees, Advertising Fees and Marketing Spending, maintain and preserve the underlying documents and permit representative or authorised third parties, e.g. auditing companies, of HUGO BOSS to examine such records, copy them and audit the respective accounting entries in the Licensee’s group books and Licensee’s Affiliates’ books during business hours on at least [***] notice.

   

  

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  14.10	The audit can be conducted in respect of the [***] preceding the date of the audit. The receipt of acceptance by HUGO BOSS of the License Fees, Advertising Fees, Marketing Spending statements or any other statement or any payment shall not preclude HUGO BOSS from auditing or otherwise questioning the correctness thereof at any time during the Term of the Agreement. [***].

   

  14.11	During the course of the audit, Licensee shall provide HUGO BOSS or its representative with the audit reports concerning the annual reports of the Licensee group and all its Affiliates. If for any Affiliate no audit report exists, the Licensee's group auditor shall hand over a financial statement with a review statement (no full scope audit) and confirmation. Furthermore Licensee shall provide a consolidated Net Sales Statement report divided by SKU for each contractual year. These reports shall be only available for the representative or authorised third party of HUGO BOSS and for reconciliation purposes only. Licensee’s local audit team has to fill in and to confirm the AUP (Agreed upon procedure) master file as defined in Annex 10 for each audited Affiliate and for each contractual year. In case there is no AUP, Licensee has to provide the requested data during the auditing process.

   

  14.12	During the course of the audit and for the purpose of the audit of the declaration of the License Fee, Advertising Fee and Marketing Spending, the representative or authorised third parties of HUGO BOSS will have:

  	access to all relevant information regarding pricing and the price structure within Licensee’s group, i.e. access to all relevant inter-company agreements and relevant third party agreements and

  	access to information from the IT Systems of Licensee as it is reasonably necessary to check the sales process and other influence on the calculation of the Licensee Fees, Advertising Fees and Marketing Spending.

   

  14.13	The Licensee acknowledges that tracking and verifying Gross Sales, Net Sales, License Fees, Advertising Fees and Marketing Spending for each of the Product Categories and in each of the markets which belong to the License Territory is essential for HUGO BOSS, and will ensure its accounting structure and booking processes allow for traceability of all relevant data. After each audit conducted by HUGO BOSS, Licensee and HUGO BOSS will meet in order to review and discuss the findings and conclusions of the audit. The Parties shall agree on the necessary improvements, changes as well as audited statements to provide with, that should reasonably be made by Licensee in its accounting, reporting and auditing process for Licensed Products. If Licensee fails to make available sufficient information necessary to complete the audit as confirmed by the representative or authorised third party of HUGO BOSS, which relates to more than [***] of the total Net Sales for any audited period of at least [***], then a change in information rights for the audit may be requested by HUGO BOSS, e.g. additional information rights, access rights.

   

  

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  14.14	Licensee confirms by signing this Agreement, that, except for online sales (which needs to be approved by HUGO BOSS), each of Licensee and each of its Affiliates conduct only one kind of business, i.e. no mix between wholesale and retail business within one company. Changes to this structure will be notified to HUGO BOSS without undue delay. In case of an impact on the calculation of the License Fees and Advertising Fees due to the change, an agreement must be reached on the calculation.

   

  14.15	Any shortfall on License and/or Advertising Fees and/or Marketing Spending identified and duly justified during the audit will be paid (or spent, as the case may be) by Licensee not later than [***] after the final audit report submitted by the representative or authorised third party of HUGO BOSS; provided, however, that any payment by Licensee hereunder shall not preclude Licensee from contesting the results of any audit conducted under this Clause 14.

   

   

  15	Trademarks, HUGO BOSS Designs, Internet Domains, other Intellectual Property Rights and Customer Data

   

  15.1	The Parties acknowledge that the Licensed Products to be sold pursuant to this Agreement may require product names, sub-brands, logos, taglines, campaign slogans, or other designations beyond the Trademarks licensed hereunder. The Parties agree to cooperate in the development of any such product names, taglines, campaign slogans, or other designations, provided however that all such product names, sub-brands, logos, taglines, campaign slogans, or other designations require HUGO BOSS’ written approval prior to implementation.

   

  15.2	As between the Parties, Licensee shall be responsible for the development and legal clearance (including all associated costs) of routine non-trademark product names, taglines, campaign slogans, or other designations. Any distinctive product names, sub-brands, logos, taglines, campaign slogans, or other designations developed for use with the Licensed Products under this Agreement shall be solely owned by HUGO BOSS and shall be automatically included in the definition of Trademarks under this Agreement.

   

  15.3	To ensure that usage of the foregoing product names, taglines, campaign slogans, or other designations are legally compliant and do not create unnecessary infringement or other legal exposure, the Parties shall mutually develop, implement and abide by appropriate usage guidelines for the routine non- trademark product names, taglines, campaign slogans, or other designations, and for the distinctive product names, sub-brands, logos, taglines, campaign slogans, or other designations developed under this Agreement for use with Licensed Products.

   

  15.4	Licensee agrees that HUGO BOSS shall become and remain the sole owner of any HUGO BOSS Designs. To the extent that intellectual property rights in the HUGO BOSS Designs and respective marketing materials are not already the property of HUGO BOSS, Licensee hereby assigns to HUGO BOSS all right, title, and interest in and to all intellectual property rights (including without limitation any and all trade secret, patent, copyright, trademark, trade dress, and design rights) in the HUGO BOSS Designs and respective marketing material. If and insofar as the effective transfer and assignment of rights by Licensee to

   

  

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  HUGO BOSS requires additional assignment or other documentation to be prepared and executed, Licensee agrees that upon reasonable notice it will execute any such assignment or other documentation as needed to achieve a full and effective transfer of such rights. HUGO BOSS shall protect all HUGO BOSS Designs, where it in its own discretion deems appropriate, in accordance with Clause 15 of this Agreement. In addition, HUGO BOSS remains the sole owner of any design for the Licensed Products which was developed by HUGO BOSS. Licensee shall remain the owner of designs proposed to HUGO BOSS but not used on any Licensed Products sold to third parties.

   

  15.5	During the Term of this Agreement, Licensee shall be entitled to use the Trademarks, Traditional Trademarks and HUGO BOSS Designs only as provided herein in connection with the Licensed Products, subject to the terms hereof, and for no other purpose. Upon termination of this Agreement for any reason, Licensee shall immediately discontinue all use of the Trademarks, Traditional Trademarks and HUGO BOSS Designs, except as otherwise provided herein or as otherwise agreed in writing by HUGO BOSS, and thereafter will not, either directly or indirectly, use any other name, title, expression, design or packaging so nearly resembling the Trademarks, Traditional Trademarks, or HUGO BOSS Designs as would be likely to lead to confusion or uncertainty or to deceive the public.

   

  15.6	Licensee agrees that, to the extent such guidelines are not inconsistent with any of the provisions of this Agreement, it will fully comply with any and all reasonable guidelines notified to Licensee by HUGO BOSS regarding the utilisation of the Trademarks and, to the extent licensed under this Agreement, Traditional Trademarks on or in connection with the creation, design, production, labelling, packaging, marketing, advertising, promotion, distribution and sale of Licensed Products, including, without limitation, any Corporate Identity Policies of HUGO BOSS on the use of the Trademarks and Traditional Trademarks.

   

  15.7	The Trademarks, Traditional Trademarks and, subject to Clause 15.4, the HUGO BOSS Designs, whether or not registered by HUGO BOSS, are the sole property of HUGO BOSS. HUGO BOSS warrants that is has the full and exclusive right, power and authority to grant this license for the Trademarks, Traditional Trademarks and the HUGO BOSS Designs to Licensee and that neither this Agreement nor the grant of such license conflicts with or will result in a breach of the terms, conditions, provisions, representations, warranties or covenants contained in any other agreement to which HUGO BOSS, or any of the HUGO BOSS Group Companies, is a party. Licensee recognises the exclusive rights of HUGO BOSS with respect to the Trademarks, Traditional Trademarks and HUGO BOSS Designs and acknowledges that all rights of use of the Trademarks, Traditional Trademarks or HUGO BOSS Designs on or in connection with the Licensed Products by Licensee inure solely to the benefit of HUGO BOSS. The Parties agree that any and all rights to the Trademarks, Traditional Trademarks or HUGO BOSS Designs that may arise from their use by the Licensee shall vest solely in HUGO BOSS. Licensee agrees that it shall take no action that might impair in any way HUGO BOSS' rights with respect to the Trademarks, Traditional Trademarks or HUGO BOSS Designs, including, without limitation, registering the Trademarks, Traditional Trademarks or HUGO BOSS Designs in its own name, or might damage HUGO BOSS' license relationships with third parties with respect to manufacture, distribution or otherwise.

   

  

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  15.8	Licensee is aware that all internet domains incorporating the Trademarks or Traditional Trademarks are the sole property of HUGO BOSS AG, Dieselstrasse 12, D-72555 Metzingen, Germany, and recognises the exclusive rights of HUGO BOSS AG of such internet domains. The Parties agree that the provisions of this Clause 15.8 also apply, mutatis mutandis, to said internet domains. Licensee is further aware that HUGO BOSS is entitled to use such internet domains.

   

  15.9	HUGO BOSS shall have the sole responsibility between the Parties to maintain the Trademarks, Traditional Trademarks and the HUGO BOSS Designs, in particular, to pay all pertaining prolongation fees, initiate and conduct opposition proceedings against similar trademark or design applications, in any applicable country of the License Territory. HUGO BOSS shall do so on its own costs. Licensee agrees to provide any and all information to HUGO BOSS which may reasonably be required in such actions, e.g. invoices to prove use of any given Trademark, Traditional Trademarks or HUGO BOSS Design. Licensee shall give immediate notice to HUGO BOSS of any application or registration of a sign, trade name, trademark, or product packaging or product design which comes to Licensee's attention and which appears to violate any of HUGO BOSS' rights with respect to the Trademarks, Traditional Trademarks, HUGO BOSS Designs or any packaging or product design.

   

  15.10	Subject to this Clause 15.10, HUGO BOSS shall further have the sole right as between the Parties to defend the rights to the Trademarks, Traditional Trademarks, HUGO BOSS Designs and any other rights of HUGO BOSS in any applicable country of the License Territory against third party infringements of the Trademarks, Traditional Trademarks or HUGO BOSS Designs, e.g. counterfeits, use of the Trademarks or Traditional Trademarks, HUGO BOSS product or packaging design without authorization of HUGO BOSS, or of brand names or product or packaging design by third parties confusingly similar to the Licensed Products. Licensee agrees to provide any and all information to HUGO BOSS which may reasonably be required in such actions which HUGO BOSS in its [***] may initiate. In particular, but without limitation, Licensee shall provide prompt notice to HUGO BOSS of products which come to Licensee’s attention and which infringe upon HUGO BOSS' rights, providing the names and addresses of the manufacturer, the supplier or seller, as the case may be, together with bills, receipts and other records, if any. Licensee shall use [***] to develop and implement reasonable measures which shall allow HUGO BOSS to distinguish between genuine Licensed Products and counterfeits. [***]. In addition to that, the Parties will discuss, in good faith, further measures to effectively proceed against counterfeits. Licensee agrees to co-operate fully with HUGO BOSS at [***] of the relevant costs, being agreed that the Parties shall also share [***]the recovery obtained, in any action or proceeding to redress any violations of HUGO BOSS' rights in respect of the Licensed Products pursuant to this Agreement which HUGO BOSS in its reasonable discretion may initiate. Licensee shall give prompt notice to HUGO BOSS of any use of a sign,

   

  

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  trade name, trademark, website, or product packaging or product design which comes to Licensee's attention and which appears to be an infringement upon or to violate any of HUGO BOSS' rights with respect to the Trademarks, Traditional Trademarks, HUGO BOSS Designs or any packaging or product design. Nothing set forth herein shall be construed as requiring HUGO BOSS to prosecute any infringements if in its own discretion it decides not to do so.

   

  15.11	HUGO BOSS shall continue to take all reasonable and necessary actions to obtain trademark registrations in those countries of the License Territory, where such registrations for the Trademarks have been applied for but are not yet issued, as identified in Annex 1 to this Agreement. In addition, in the event that HUGO BOSS determines that it is necessary to do so, HUGO BOSS shall take all reasonable and necessary actions to obtain additional registrations for the Trademarks in those countries identified in Annex 1 where such registrations have not yet been applied for. However, HUGO BOSS is not liable for ensuring the successful registration of the Trademarks in these countries. HUGO BOSS shall keep Licensee informed as to the legal status of the Trademarks. HUGO BOSS shall not be liable for ensuring that the Trademarks are utilised in a manner which maintains their protection.

   

  Upon request by Licensee, HUGO BOSS shall take all reasonable and necessary actions to obtain trademark registrations of the Trademarks in other countries of the License Territory not named in Annex 1 to this Agreement, provided that HUGO BOSS accepts no liability for failure to successfully register such Trademarks in such countries.

   

  In the event that trademark registrations for the Trademarks cannot be obtained in a country where, according to this Clause 15.11, HUGO BOSS is to seek such registrations, and such country is specifically mentioned in the Business Plan and the failure to obtain any such registrations has a material adverse effect on Licensee’s ability to sell Licensed Products in such country, the Business Plan shall be adjusted proportionately to reflect the elimination of such country.

   

  15.11.1	Licensee shall use its [***] to assist and otherwise co-operate with HUGO BOSS in applying for and maintaining the registration and protection of the Trademarks or Traditional Trademarks, such efforts to include without limitation, executing any registered user or other agreement or document as may be appropriate, through the making of necessary declarations, delivery of necessary documents and by providing useful or appropriate information. HUGO BOSS shall reimburse Licensee for its out-of-pocket costs incurred therefor.

   

  Licensee shall supply to HUGO BOSS upon its reasonable request copies of invoices and other records of sales for each country where necessary or useful to establish proof of use of the Trademarks or Traditional Trademarks in such countries on the Licensed Products. For this purpose, Licensee shall also regularly inform HUGO BOSS of the countries in which deliveries of the Licensed Products are expected in the then current year.

   

  15.11.2	Licensee agrees that it will be listed as "Registered User" of the Trademarks and/or Traditional Trademarks for the Licensed Products to the extent possible and/or required under relevant local law. HUGO BOSS will reimburse Licensee for its costs incurred therefor.

   

  

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  15.11.3	Licensee agrees: (a) to use the Trademarks and Traditional Trademarks exclusively in the design format indicated by HUGO BOSS, and, to the extent not contrary to any of the provisions hereof, in conformity with the "Corporate Identity Policy" of HUGO BOSS, (b) to designate them with the markings prescribed by HUGO BOSS (such as "(R)" or "Marca registrada," "HUGO BOSS is the registered trademark of HUGO BOSS AG" or the like); provided that no such designation shall be required on the Licensed Products themselves, and (c) to the extent not contrary to any of the provisions hereof, to observe any and all other restrictions and conditions reasonably notified by HUGO BOSS to Licensee, including those which may arise from agreements between HUGO BOSS and any third party.

   

  Licensee shall not itself use the Trademarks or Traditional Trademarks in connection with sub-brands or accompanying brands of Licensee or otherwise in any way not explicitly permitted by this Agreement or HUGO BOSS. In particular, and without limiting the foregoing, designations such as "BOSS HUGO BOSS by ........." are prohibited. All references to the manufacturer and/or Licensee require the prior written approval of HUGO BOSS. Notwithstanding the foregoing, Licensee shall not be prohibited from using model names for individual collections of Licensed Products or from applying for trademark registrations for such model names, provided that Licensee shall be solely responsible for all costs associated therewith.

   

  15.11.4	The Parties acknowledge and agree that, as provided in Clause 15.4, HUGO BOSS is the owner of all rights (including without limitation any and all copyright, trademark, trade dress, and design rights) to the HUGO BOSS Designs and of the designs of the promotional material. HUGO BOSS grants the Licensee for the duration of this Agreement the right of use of these designs for the purpose of this Agreement in the License Territory. Furthermore, except as otherwise provided in Article 18, the Licensee undertakes to no longer use the above-mentioned designs and promotional material after termination of this Agreement.

   

  Notwithstanding and without limiting the foregoing, Licensee shall provide to HUGO BOSS any and all instruments or documents necessary or useful to confirm HUGO BOSS' ownership of such copyright and design rights, including, without limitation, any assignments of rights that HUGO BOSS may reasonably request.

   

  15.11.5	HUGO BOSS shall own all inventions made by Licensee or its employees, whether or not patentable, to the extent based on Confidential Information from HUGO BOSS as hereinafter defined in Clause 16. Licensee shall promptly notify HUGO BOSS of the making of each such invention and shall co-operate in securing to HUGO BOSS the benefits of each such invention throughout the world by executing assignments, patent applications and similar documents necessary for HUGO BOSS to perfect rights in the invention; provided that HUGO BOSS reimburses Licensee all amounts incurred by Licensee in assigning such rights to HUGO BOSS, including, without limitation, any and all amounts Licensee may be required to pay by law to the inventing employee.

   

  15.12	Any and all intellectual property rights in display and sales promotional materials related to the Licensed Products shall be the property of HUGO BOSS. Licensee shall co-operate upon HUGO BOSS’ request in securing to HUGO BOSS the benefits of any such rights throughout the world by executing assignments and similar documents necessary for HUGO BOSS to perfect its rights in such

   

  

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  matters; provided that HUGO BOSS reimburses Licensee all disbursements reasonably incurred by Licensee in assigning such rights to HUGO BOSS (including reasonable attorney's fees only to the extent the incurrence thereof by Licensee is reasonably necessary to protect Licensee’s legitimate interests).

   

  15.13	[***]. If necessary a separate agreement shall be concluded with regard to the Technology Enabled Watches.

   

  15.14	The provisions contained in this Clause 15 shall not affect Clause 20.

   

   

  16	Public Announcements / Confidentiality

   

  16.1	Each Party acknowledges that their relevant holding companies, are listed at the respective competent local Stock Exchange and subject to all the rules and regulations stated for the German and US listed companies respectively.

   

  16.2	Consequently, Licensee informs HUGO BOSS that the information relevant to the Agreement, its execution, expiration or termination, and in particular Confidential Information herein defined, is or may be “price-sensitive” information according to German Law and that the use of such information may be regulated or prohibited by applicable laws relating to insider dealing legislation, and the Parties undertake not to use any Confidential Information for any such purpose. For this purpose, either Party’s press releases and other public announcements related to HUGO BOSS and/or the Licensee in connection with the present Agreement hereunder and otherwise naming HUGO BOSS or the Trademarks, if qualified as price sensitive under German Laws, shall be previously and mutually agreed between the Parties and handled in accordance with the applicable laws and regulations. To the extent that any such announcement is required by securities or other laws of general application, neither Party shall unreasonably withhold, delay or condition such consent.

   

  16.3	Furthermore, the Parties agree that communication, in case of product liability matters, non-compliance with quality or safety regulations, or any other communication concerning the Licensed Products and/or the Parties, will be previously agreed upon by the Parties and handled by HUGO BOSS or, as the case may be and upon prior approval of HUGO BOSS, handled by the Licensee directly in case the business relation to the clients and the related sales are concerned. Each Party shall timely inform the other Party of any steps taken. To this purpose, each Party undertakes to deliver to the other, upon request, any and all relevant information which shall not be unreasonably withhold or delayed.

   

  16.4	The Parties agree to use all Confidential Information (as hereinafter defined) of the other Party provided to it or obtained by it pursuant to this Agreement only in its capacity as Party to this Agreement and as contemplated in this Agreement. "Confidential Information" shall mean any and all technical data, knowledge or information, trade secrets or advice relating to the design development, manufacture, assembly, use, sale, and customer servicing of the Licensed Products and any and all information concerning the business of the other Party.

   

  

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  Either Party acknowledges the other Party’s sole rights in the Confidential Information. Either Party shall ensure that, without the prior written approval of the other Party, no Confidential Information shall be used for any purpose other than as set forth herein or copied or disclosed to any third party during the term of this Agreement or after its termination.

   

  16.5	This confidentiality provision does not apply to information

   

  a)	which was or comes into the public domain through no fault of the receiving Party, or

  b)	which was obtained from a third party legally entitled to use and disclose such information, or

  c)	the disclosure of which is required by law, or

  d)	which was already in possession of the receiving Party before closing this Agreement and not otherwise subject to any confidentiality obligation as between the Parties.

   

  Upon termination of this Agreement, either Party shall either return to the other Party, or at the request of the other Party, destroy all Confidential Information in its possession.

   

   

  17	Other Products

   

  Licensee manufactures and/or distributes watches, jewelry and related products under the third party trademarks listed in Annex 11 hereto. The Parties agree that Licensee may continue to manufacture and/or distribute all existing products if they are sold under the trademarks listed in Annex 11 and Licensee has a current contractual obligation (including renewals of existing contracts) to the licensor of these trademarks to manufacture and/or distribute the products. However, HUGO BOSS shall be informed, if Licensee enters into an agreement with any other third party for the production and/or distribution of watches, jewelry or related products.

   

   

  18	Liability Issues

   

  18.1	Licensee undertakes to procure that the manufacture of the Licensed Products will neither infringe any trade secret, copyright, registered design or other similar right of any third party nor will the sale of the Licensed Products give rise to any claims by any third party and Licensee shall be responsible for any and all defects in the Licensed Products and in no event shall HUGO BOSS be liable for any direct, indirect, special, incidental or consequential damages or any lost revenues or profits or any other damages arising with respect to the Licensed Products, whether based in contract, tort, breach of express or implied warranty, including without limitation, negligence or product liability.

   

  18.2	If either Party becomes aware of any law, or other rule, regulation or order having the force of law issued by any duly constituted authority having appropriate jurisdiction, in any country included within the Business Plan that would have the effect of making it impractical to sell or to continue selling Licensed Products in or into such country, the Parties shall consult in good faith and attempt to agree on an appropriate adjustment to the Business Plan, including, without limitation, a proportionate reduction in target Net Sales.

   

  

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  18.3	HUGO BOSS will indemnify, defend and hold harmless Licensee, each Licensee Affiliate, and their respective officers, directors, agents, employees, shareholders, legal representatives, successors, Affiliates and assigns, from and against any and all claims, actions, suits, liabilities, damages and expenses (including reasonable attorneys’ fees, costs and expenses) which Licensee or any Licensee Affiliate may incur or be obligated to pay in any action or claim for infringement of any other person’s claimed right to use a trademark or other intellectual property right (except claimed rights relating to the designs of the Licensed Products or to any intellectual property used by Licensee and not granted by HUGO BOSS hereunder) in the License Territory, including such infringements as may be contained in any advertising placed by HUGO BOSS, where such action or claim results from Licensee’s proper use of the Trademarks or other rights (except rights related to the HUGO BOSS Designs) granted hereunder in the License Territory, in accordance with the terms of this Agreement. Licensee will give HUGO BOSS timely written notice of any such claim or action, and thereupon HUGO BOSS will undertake and conduct the defence of any suit so brought. HUGO BOSS further agrees that the provisions contained in this Clause shall survive the termination or expiration of this Agreement.

   

  18.4	Licensee agrees to indemnify, defend and save harmless HUGO BOSS and its officers, directors, agents, employees, shareholders, legal representatives, successors, Affiliates and assigns, and each of them, from any and all claims, actions and suits and from and against any and all liabilities, judgements, losses, damages, costs, charges, reasonable attorneys' fees and other expenses of every nature and character incurred in any action between HUGO BOSS and any third party, relating to Licensee's business and/or with respect to the Licensed Products (including, without limitation, any breach by Licensee of this Agreement). Licensee further agrees that the provisions contained in this Clause shall survive the termination or expiration of this Agreement.

   

  18.5	Licensee will maintain at all times during the Term of the Agreement and for [***] thereafter and provide evidence thereof to HUGO BOSS from time to time upon its request, product liability insurance of a kind and in an amount reasonably satisfactory to HUGO BOSS naming HUGO BOSS as beneficiary as its interests shall appear.

   

   

  19	Term and Termination

   

  19.1	This Agreement enters into force and effect on January 1, 2022, and, unless sooner terminated as herein provided, expires on December 31, 2026. Between [***] before the final expiration of the Agreement, Licensee may request an extension of this Agreement by submitting to HUGO BOSS [***] (the “Extended Business Plan”) in the format of the Business Plan but covering the period from January 1, 2027 through December 31, 2031 (the “Extension Period”). In such case, the Parties will, no later than June 30, 2026, [***] an extension of this Agreement for the Extension Period i[***]. Such extension (if any) shall be effective only upon the physical or digital signature, extending the term of this Agreement. If [***], the Agreement ends December 31, 2026 at the latest.

   

  19.2	HUGO BOSS may terminate the Agreement if [***]. In this case the notice of termination must be provided in writing no later than [***] before the end of t[***] and will be effective as of the end of the calendar year following the relevant time periods. For the avoidance of doubt, all payment obligations of Licensee under this Agreement shall continue during such [***] period.

  

   

  19.3	Further, the Agreement may be terminated by either Party upon a notice period of [***] where there are material changes in the ownership composition of the ultimate parent entity of the other Party, i.e. a change of fifty (50) % or more of the voting ownership rights. The right of termination must be exercised within [***] after receiving the information about the material change in ownership composition.

   

  19.4	Notwithstanding the foregoing, HUGO BOSS shall not have any such right of termination where the new owner of Licensee is either [***]

   

   

  Licensee shall not have any such right of termination where the new owner of HUGO BOSS is either [***]

   

   

  19.5	After a warning letter with a period of maximum [***] for fulfilling its non- financial obligations set forth in the Business Plan and any further Action Plans as referred to in Clause 13, HUGO BOSS may also terminate the Agreement upon a notice period of [***] of a particular year, if Licensee fails to fulfil its above-mentioned obligations. The right to terminate for cause remains unaffected. Such cause shall in particular exist,

  a)	in the event of (i) filing by the other Party of a petition in bankruptcy or insolvency,

  (i)	the appointment of a receiver for the other Party of all or substantially all of its property relevant to the business activities under this Agreement, (iii) the making by the other Party of any assignment or attempted assignment for the benefit of creditors for all or substantially all of its properties relevant to its business activities under this Agreement, (iv) or the institution of any proceedings for the liquidation or winding up of the other Party’s business or for the termination of its corporate charter, if any such proceeding is not dismissed within [***] of institution;

  b)	if - insofar as not otherwise indicated in this Agreement - the other Party fails to fulfil within [***] a contractual obligation or one undertaken in order to fulfil this Agreement despite prior written notice, or fails to desist from conduct that is in violation of the Agreement within this period;

   

  

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  c)	if the other Party is in breach of a material obligation hereunder and fails to remedy such breach (if it reasonably can be remedied) within [***] after receipt of notice thereof from the Party not in breach;

  d)	without prior written notice, if the other Party has [***]; or

  e)	[***].

   

  19.6	HUGO BOSS may also terminate the Agreement with a notice period of [***] for cause if Licensee falls more than [***] into arrears in paying the License Fees, the Advertising Fee, or any other financial obligations.

   

  19.7	If Licensee or any of its Affiliates engage in any negligent acts or omissions that cause [***] considerable damages to the reputation or image of the Trademarks or the HUGO BOSS Group, HUGO BOSS may likewise terminate the Agreement without notice and without opportunity for cure.

   

  19.8	Terminations and notices under this provision must be communicated by registered mail or reputable overnight international courier including FedEx, UPS or DHL and email to the addresses mentioned in Clause 21.10, and must (i) state the reason(s) for termination, (ii) cite the relevant clauses of this Agreement, and

  (ii)	state what cure (if any) is required to avoid termination.

   

   

  20	Consequences of Termination of the Agreement

   

  20.1	The termination of this Agreement according to one of the above provisions does not release either of the Parties from any of its obligations under this Agreement accrued prior to the date of termination. Upon the justified termination for cause as defined in Clause 19.5 by HUGO BOSS, all earned but unpaid License and Advertising Fees will become immediately due and payable. Further rights of indemnity etc. will not be affected by extraordinary notice of termination, regardless of whether such rights are founded upon the Agreement or in law. The regular or extraordinary notice of termination and termination as such does not in itself give rise to any sort of damages or compensation claims.

   

  20.2	Upon termination of this Agreement, or, if no extension is agreed upon between the Parties in accordance with Clause 19.1 of this Agreement, during the period from [***] (or such earlier date in [***] on which Licensee indicates that it does not wish to extend this Agreement) through the expiration of this Agreement, HUGO BOSS shall have the right to take any actions and make whatever arrangements it may deem appropriate to ensure continuity of distribution of collections for Watches and Jewelry which will follow the last collection under this Agreement, including but not limited to appointing one or more new licensees which shall commence to create, design, produce, label, pack, market, advertise, promote, distribute and sell such collections; provided that [***]until expiration or termination of this Agreement.

   

  

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  20.3	Subject to the following provisions of this Clause 20, on the date of termination or expiration of this Agreement, all rights of the Licensee to use the HUGO BOSS Designs, the Trademarks, Traditional Trademarks or the designations "BOSS" and/or "BOSS HUGO BOSS" and/or any other trademark or intellectual property rights in the design of the Licensed Products or the marketing material belonging to HUGO BOSS shall end. The Licensee shall also cease making any reference to HUGO BOSS and/or its Trademarks or Traditional Trademarks and any reference to previous activity/co-operation for/with HUGO BOSS as Licensee of HUGO BOSS, and will also be responsible therefor on behalf of its subcontractors. Further, the Licensee shall, no later than as of the date of termination of the Agreement, extinguish all Licensed Products "Registered User" registrations at its own cost or - upon the request and at the cost of HUGO BOSS - transfer them, to the extent legally possible, to third persons designated by HUGO BOSS.

   

  20.4	Licensee shall as soon as reasonably practicable, but no later than [***] after expiration or termination, deliver to HUGO BOSS a complete and accurate written schedule of Licensee's and [***] ("Licensee Parties") inventory of all Licensed Products, packaging, labels, marketing materials, and any other materials bearing or displaying the Trademarks, Traditional Trademarks and/or HUGO BOSS Designs, broken down by [***] ("Inventory Schedule"). The lnventory Schedule shall list all inventory at the Licensee Parties' actual manufacturing costs as indicated in the books and records of the Licensee Parties, which books and records shall be made available for inspection by HUGO BOSS. HUGO BOSS has the right to purchase all or some of the inventory listed on the Inventory Schedule at [***]. To exercise such right, HUGO BOSS shall give Licensee written notice of the inventory of the Inventory Schedule HUGO BOSS intends to purchase no later than [***] prior to the effective termination date.

   

  20.5	Licensee shall be permitted to distribute all its remaining Licensed Products not purchased by HUGO BOSS for up to [***] after the termination of the Agreement upon the previously customary conditions and through the previously utilised or similar channels of distribution and Licensee acknowledges that no new accounts may be opened for purposes of sell off without the prior written approval of HUGO BOSS, which may be granted or denied in HUGO BOSS' [***]; provided however that the quantity of Licensed Products Licensee shall be permitted to sell during such nine month period may not exceed [***], and provided further that any quantity in excess thereof and any Licensed Products remaining in inventory after the aforementioned [***] period either will be destroyed (in which event Licensee shall furnish to HUGO BOSS appropriate evidence of such destruction as HUGO BOSS may request) or may be sold by Licensee for an additional period not exceeding [***] through its outlet stores. The marketing, sale, and/or disposal of the inventory shall be subject to and in full compliance with all the terms and conditions of this Agreement. Licensee hereby acknowledges and agrees that it is essential to protect HUGO BOSS' premium brand image, and reputation during the sell-off of inventory and that full compliance with the terms and conditions of this Agreement during sell-off is essential. After the aforementioned [***] period, Licensee shall destroy all remaining inventory and shall furnish HUGO BOSS appropriate evidence of such destruction. Licensee shall account

   

  

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  for these sales and pay the computed license fees to HUGO BOSS no later than within [***] after the last such sale. Costs for destruction will be borne by Licensee.

   

  20.6	In addition to its rights under Clause 20.4, in case Licensee has still remaining inventory after the [***] distribution period, HUGO BOSS shall also have the right of election:

  a)	to purchase the remaining inventory, completely or in part on terms to be mutually agreed upon,

  or

  b)	to request the transfer of the remaining inventory to a third party designated by HUGO BOSS on terms to be mutually agreed upon. These sales will not be subject to the payment of License Fees.

   

   

  21	Miscellaneous

   

  21.1	Licensee may not assign, delegate to third parties or sublicense rights or duties under this Agreement or assign the Agreement as a whole, without the express prior written consent of HUGO BOSS. This does not apply to an assignment, delegation, or sublicense to any Licensee Affiliate (provided that notwithstanding any such assignment, delegation or sublicense, MGI Luxury Group S.A. shall remain liable for performance of Licensee’s obligations hereunder) or to any change in control otherwise permitted under Clause 19.3 Licensee shall notify HUGO BOSS any such assignment. HUGO BOSS shall not assign any rights or delegate any duties to any party other than an Affiliate.

   

  21.2	This Agreement constitutes the entire agreement between the Parties and supersedes all prior agreements and understandings, oral or written, between the Parties hereto with respect to the subject matter hereof. This Agreement may be modified, amended or supplemented (including this clause) only by the mutual written agreement of the Parties hereto.

   

  21.3	This Agreement is made and shall be construed in all respects in accordance with the laws of Switzerland, without regard to its conflicts of law principles. The Parties irrevocably agree that all disputes related to this Agreement shall be brought exclusively before the courts of Zurich provided that HUGO BOSS may, but is not obliged to, seek relief in any court located in the place of Licensee's principal place of business.

   

  21.4	In the event any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, unless the unenforceability or invalidity thereof causes a substantial departure from the underlying intent and sense of the remainder of this Agreement, the validity and enforceability of the remaining provisions shall not be affected thereby, except those remaining provisions of which the unenforceable or invalidated provisions comprise an integral part of or from which they are otherwise clearly inseparable. In the event any provision is held unenforceable or invalid, the parties shall use their best efforts to agree upon an enforceable and valid provision which shall be a reasonable substitute for such unenforceable or invalid provision in light of the purpose of this Agreement, and, upon so agreeing, shall incorporate such substitute provision in the Agreement. The same applies if omissions in the

   

  

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  Agreement become apparent. The relevant provision, which is unenforceable or missing, is then to be replaced by a valid provision corresponding to the meaning and purpose of this Agreement.

   

  21.5	The Agreement is executed in duplicate. The following Annexes to this Agreement constitute a part of this Agreement.

   

  Annex 1:   Trademarks

  Annex 2:	Traditional Trademarks

  Annex 3:	Licensee’s HUGO BOSS Team Annex 4:	Action Plan

  Annex 5:	Business Plan

  Annex 6:	Net Sales Monthly Statement Template Annex 7:	Product Development Calendar Template Annex 8:	HUGO BOSS Online Guidelines

  Annex 9:	Guarantee

  Annex 10:	Audit Template (AUP)

  Annex 11:	Licensee’s Existing Licensed Trademarks Annex 12:	Selective Criteria for Distributors

  Annex 13	Licensee’s General Acceptance Requirements and Brand Elements for the Licensed Products

   

  21.6	No delay or omission by either of the Parties hereto in exercising any right or remedy provided for herein shall constitute a waiver of such right or remedy, nor shall it be construed as a bar to or a waiver of any such right or remedy on any future occasion. No waiver by either Party of any provision of this Agreement, or of any breach of default shall be effective unless in writing and signed by the Party against whom such waiver is to be enforced.

   

  21.7	Nothing contained herein shall be deemed to place the Parties in the relationship of employer-employee, partners, joint ventures, or either as agent of the other. Licensee shall not represent itself as the employee, partner, agent or legal representative of HUGO BOSS for any purpose whatsoever and shall have no right to create or to assume any obligation of any kind, express or implied, for or on behalf of HUGO BOSS; provided, however, that Licensee may describe itself as the exclusive licensee of the Licensed Products in the License Territory.

   

  21.8	Notwithstanding the provisions in Clause 21.3 above, HUGO BOSS may enforce its rights under Clauses 15 and 16 and Licensee may enforce its rights under Clause 16, in any court having competent jurisdiction.

   

  21.9	The English language version of this Agreement shall be the definitive version and any issues that may arise in connection with this Agreement or its interpretation shall be resolved by reference only to that version.

   

  21.10	Any notice to be given pursuant to this Agreement shall be written in English and shall be deemed duly given when sent by registered mail or reputable overnight international courier including FedEx, UPS or DHL to the respective address set forth below and by email to the respective email address set forth below confirmed by letter as aforesaid, or to such other address and/or email address as a Party hereto may designate by like notice.

   

  

  40

  To Licensee:

  MGI Luxury Group S.A. Bahnhofplatz 2B

  2502 Biel/Bienne Switzerland

  Attn: General Manager – HUGO BOSS Watches Email: [***]

   

  Copies to:

  Movado Group, Inc.

  650 From Road, Ste 375 Paramus, New Jersey 07652 U.S.A.

  Attn: Legal Department

  Email: [***]

   

  To HUGO BOSS:

  HUGO BOSS Trade Mark Management GmbH & Co. KG Niederlassung Zug

  Baarerstr. 135

  6300 Zug

  Switzerland

  Attn: Legal Department

  Email: [***]

   

  21.11	The obligations of either Party hereunder, except for the obligations of Licensee to pay License Fees, Advertising Fees and other amounts to be paid to HUGO BOSS hereunder, shall be excused for a period equal to the time by which such performance is prevented or delayed as a result of strikes, labour, disputes, acts of God, or any other causes beyond the reasonable control of the Party obligated to perform (a “Force Majeure Event”). Notwithstanding the foregoing, if a Force Majeure Event renders achievement of the Minimum Net Sales set forth in Clause 6.2 for a given calendar year impracticable, the Parties will review the impact of such Force Majeure Event on the market in general and the Licensee’s business in particular, and discuss and in good faith, acting reasonably, agree upon appropriate adjustments to the Guaranteed Minimum License Fee and Guaranteed Minimum Advertising Fee for such contractual year, provided both Parties reasonably consider such adjustments necessary.

   

   

   

   

  Date, 17-Mar-2022  Place Zug	Date, 17-Mar-2022  Place Bienne

   

  /s/ Paul Daly           /s/ Carey S. Pepper	/s/ Pellegrini            /s/ Xavier Gauderlot

  Managing Director  SVP Global Licenses/	Managing Director  President International

                                  Managing Director HB TMM                                                                        

  HUGO BOSS TRADE MARK	MGI Luxury Group S.A. MANAGEMENT GMBH & CO. KG

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