Document:

Ex-10.17 Amendment to Event-Based Stock Option Agr

 

Exhibit
10.17

AMENDMENT TO

EVENT-BASED VESTING INCENTIVE STOCK OPTION AGREEMENT

     This Amendment to the Event-Based Vesting Incentive Stock Option Agreement (this
“Amendment”) is entered into and effective as of November 16, 2006 between FGX
International Holdings Limited, a British Virgin Islands company (the “Company”) and Alec
Taylor (the “Optionee”).

     WHEREAS, the Company and the Optionee are parties to that certain Event-Based Vesting
Incentive Stock Option Agreement, dated as of December 15, 2005 (the “Agreement”) pursuant
to which the Company granted the Optionee the Option to purchase the Option Shares;

     WHEREAS, the parties desire to amend the Agreement to correct a scrivener’s error and clarify
the intent of the parties regarding the treatment of the Option upon termination of the Optionee’s
employment with the Company; and

     WHEREAS, pursuant to Section 8(j) of the Agreement, the Agreement may be amended, supplemented
or modified in whole or in part by an instrument in writing signed by the parties against whom
enforcement of any such amendment, supplement or modification is sought;

     NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:

     1. Capitalized Terms. Capitalized terms used but not defined herein shall have the
meanings set forth in the Agreement.

     2. Addition of New Section 8. Following Section 7 in the Agreement, a new Section 8
shall be added as follows, Section 8 in the Agreement shall be renumbered as Section 9 and all
corresponding references to Section 8 in the Agreement shall be deemed to refer to Section 9:

“8. TERMINATION OF EMPLOYMENT

          (a) Voluntary Termination by Optionee. If the Optionee voluntarily terminates his
employment with the Company or its subsidiaries, as applicable, (i) the portion, if any, of this
Option that has vested as of the date of such termination shall be exercisable for a period not to
exceed thirty (30) days after the date of such termination, at which time, the vested and
unexercised portion of this Option shall terminate, and the Optionee shall have no further right to
purchase Ordinary Shares pursuant to the vested but unexercised portion of this Option, and (ii)
the portion, if any, of this Option that has not vested as of the date of such termination shall
terminate immediately, and the Optionee shall have no further right to purchase Ordinary Shares
pursuant to the unvested portion of this Option.

 

 

          (b) Termination for Cause. If the Company or any of its subsidiaries, as applicable,
terminates the Optionee’s employment with the Company or such subsidiary for Cause, this Option
(including that portion of the Option that has vested and that portion of the Option that has not
vested as of the date of such termination) shall terminate immediately, and the Optionee shall have
no further right to purchase Ordinary Shares pursuant to this Option. The Board shall determine
whether Cause exists for purposes of this Agreement and such determination shall be final, binding
and conclusive.

          (c) Termination Without Cause. If the Company or any of its subsidiaries, as
applicable, terminates the Optionee’s employment with the Company or such subsidiary without Cause,
then (i) the portion of this Option, if any, that has vested as of the date of such termination
shall be exercisable by the Optionee for a period of time not to exceed thirty (30) days after the
date of such termination, at which time, the vested and unexercised portion of this Option shall
terminate, and the Optionee shall have no further right to purchase Ordinary Shares pursuant
thereto, and (ii) the portion, if any, of this Option that has not vested as of the date of such
termination shall terminate immediately, and the Optionee shall have no further right to purchase
Ordinary Shares pursuant to the unvested portion of this Option.

          (d) Death. If the Optionee dies while serving as an employee of the Company or any of
its subsidiaries, as applicable, then (i) the portion of this Option, if any, that has vested as of
the date of his death shall be exercisable by the executors or administrators or legatees or
distributees of the Optionee’s estate for a period of time not to exceed ninety (90) days after the
date of the Optionee’s death, at which time, the vested and unexercised portion of this Option
shall expire, and such persons shall have no further right to purchase Ordinary Shares pursuant to
the vested but unexercised portion of this Option and (ii) the portion, if any, of this Option that
has not vested as of the date of the Optionee’s death shall terminate immediately, and the
executors, administrators, legatees and/or distributees of the Optionee’s estate shall have no
further right to purchase Ordinary Shares pursuant to the unvested portion of this Option.

          (e) Disability. If the Optionee’s employment with the Company or any of its
subsidiaries, as applicable, is terminated by reason of the “permanent and total disability”
(within the meaning of Section 22(e)(3) of the Code) of such Optionee, then (i) the portion of this
Option, if any, that has vested as of the date of such termination, shall be exercisable by the
Optionee for a period of time not to exceed ninety (90) days after the date of such termination, at
which time, the vested and unexercised portion of this Option shall terminate, and the Optionee
shall have no further right to purchase Ordinary Shares pursuant to the vested but unexercised
portion of this Option, and (ii) the portion, if any, of this Option that has not vested as of the
date of such termination shall terminate immediately, and the Optionee shall have no further right
to purchase Ordinary Shares pursuant to the unvested portion of this Option. Whether a termination
of employment is to be considered by reason of “permanent and total disability” for
purposes of this Agreement shall be determined by the Board, which determination shall be
final, conclusive and binding on the Optionee.

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          (f) General. Notwithstanding the foregoing, the Board may provide, in its sole and
absolute discretion, that following termination of employment of the Optionee with the Company or
any of its subsidiaries, as applicable, the Optionee may exercise an Option, in whole or in part,
at any time subsequent to such termination of employment and prior to termination of the Option,
either subject to or without regard to any vesting or other limitation on exercise imposed
hereunder. Unless otherwise determined by the Board, temporary absence from employment because of
illness, vacation, approved leaves of absence, military service and transfer of employment shall
not constitute a termination of employment with the Company or any of its subsidiaries, as
applicable.”

     3. Complete Agreement. The Agreement, as amended by this Amendment, (including the
Plan and the other documents and exhibits referred to in the Agreement) constitutes the entire
agreement among the parties with respect to the subject matter hereof and supersedes any prior
understandings, agreements, or representations by or among the parties, written or oral, that may
have related in any way to the subject matter hereof. Except as modified by this Amendment, the
Agreement shall remain unchanged and shall continue in full force and effect. No representations,
warranties, covenants or agreements have been made concerning or affecting this subject matter of
the Amendment, except as are contained herein.

     4. Counterparts. This Amendment may be executed in one or more counterparts, each of
which will be deemed an original and all of which together will constitute one and the same
instrument.

     5. Governing Law. This Amendment shall be construed in accordance with and governed
by the laws of the State of Rhode Island applicable to contracts executed and to be wholly
performed within such State (without regard to the choice of law provisions thereof). Each party
hereby irrevocably and unconditionally consents and submits to the exclusive jurisdiction of the
courts of the State of Rhode Island sitting in Providence County, Rhode Island and of the United
States District Court for the District of Rhode Island for any actions, suits or proceedings
arising out of or relating to this Amendment and the transactions contemplated hereby and each
party agrees not to commence any action, suit or proceeding relating thereto except in such courts.
Each party further agrees that any service of process, summons, notice or document sent by U.S.
registered mail to its address set forth herein shall be effective service of process for any
action, suit or proceeding brought against it in any such court. Each party irrevocably and
unconditionally waives any objection to the laying of venue of any action, suit or proceeding
arising out of this Amendment or the transactions contemplated hereby in such courts, and
irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any
action.

[Signatures Appear on Following Page]

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     IN WITNESS WHEREOF, the parties have executed this Amendment as of the day and year first
above written.

	 	 	 	 	 
	 	FGX INTERNATIONAL HOLDINGS LIMITED

 	 
	 	By:  	/s/ Brian J. Lagarto
 	 
	 	 	Name:  	Brian Lagarto 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	OPTIONEE

 	 
	 	/s/ Alec Taylor
 	 
	 	Alec Taylor 	 
	 	Address:      64 Keene Street, #2

Providence, RI 02906 	 
	 

4Ex-10.19 Registration Rights Agreement

 

EXHIBIT 10.19

REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT is dated as of November 17, 2006 by and between FGX
International Holdings Limited, an International Business Company organized under the laws of the
British Virgin Islands (the “Company”) and Berggruen Holdings North America Ltd., an
International Business Company organized under the laws of the British Virgin Islands
(“Berggruen”).

     WHEREAS, Berggruen currently owns 59.05624 Ordinary Shares, representing approximately 93% of
the Company’s currently issued and outstanding Ordinary Shares; and

     WHEREAS, the Company is contemplating an initial public offering of its Ordinary Shares and
Berggruen intends to sell certain of its Ordinary Shares in that offering, following which it will
continue to be the majority shareholder of the Company; and

     WHEREAS, Berggruen and the Company desire to enter into this Agreement to provide for the
terms and conditions pursuant to which Berggruen can require the Company to file a registration
statement with the United States Securities and Exchange Commission for the remainder of its
Ordinary Shares.

     NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
to this Agreement hereby agree as follows:

     1. Definitions. As used herein, the following terms shall have the following meanings.

          “Affiliate” means, when used with reference to a specified Person, any Person that
directly or indirectly controls or is controlled by or is under common control with the specified
Person. As used in this definition, “control” (including, with its correlative meanings,
“controlled by” and “under common control with”) shall mean possession, directly or indirectly, of
power to direct or cause the direction of management or policies (whether through ownership of
securities or partnership or other ownership interests, by contract or otherwise). With respect to
any Person who is an individual, “Affiliates” shall also include, without limitation, any member of
such individual’s Family Group.

          “Berggruen Registrable Securities” means all Ordinary Shares owned or acquired by, or
issued or issuable to, Berggruen or any of Berggruen’s Affiliates on or after the date hereof and
all equity securities issued or issuable directly or indirectly with respect to any Ordinary Shares
described above by way of a share dividend or share split or in connection with a combination of
shares, recapitalization, merger, consolidation, or other reorganization. As to any particular
Berggruen Registrable Securities, such securities shall cease to be Berggruen Registrable
Securities when they have been distributed to the public pursuant to an offering registered under
the Securities Act or sold to the public in compliance with Rule 144.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the SEC promulgated thereunder.

 

 

          “Family Group” means, with respect to any Person who is an individual, (i) such
Person’s spouse, former spouse and descendants (whether natural or adopted), parents and their
descendants and any spouse of the foregoing persons (collectively, “relatives”) or (ii) the
trustee, fiduciary or personal representative of such Person and any trust solely for the benefit
of such Person and/or such Person’s relatives.

          “Ordinary Shares” means the Company’s Ordinary Shares, par value $1.00 per share.

          “Other Registrable Securities” means (i) all fully vested Ordinary Shares acquired by,
or issued or issuable to, a transferee of Berggruen Registrable Securities that executes a valid
joinder to this Agreement, on or after the date hereof, and (ii) all fully vested equity securities
issued or issuable directly or indirectly with respect to any Ordinary Shares described above by
way of a share or stock dividend or share or stock split or in connection with a combination of
shares, recapitalization, merger, consolidation or other reorganization. As to any particular
Other Registrable Securities, such securities shall cease to be Other Registrable Securities when
they have been distributed to the public pursuant to an offering registered under the Securities
Act or sold to the public in compliance with Rule 144.

          “Person” means an individual, a partnership, a corporation, an international business
company, a limited liability company, an association, a joint stock company, a trust, a joint
venture, an unincorporated organization, a bank, a trust company, a land trust, a business trust, a
governmental entity or any department, agency or political subdivision thereof or any other entity
or organization, whether or not it is a legal entity.

          “Public Offering” means an underwritten public offering and sale of Ordinary Shares
pursuant to an effective registration statement under the Securities Act; provided that a Public
Offering shall not include an offering made in connection with a business acquisition or
combination pursuant to a registration statement on Form S-4 or any similar form, or an employee
benefit plan pursuant to a registration statement on Form S-8 or any similar form.

          “Registrable Securities” means, collectively, the Berggruen Registrable Securities and
the Other Registrable Securities.

          “Registration Expenses” means all expenses incident to the Company’s performance of or
compliance with this Agreement, including without limitation all registration and filing fees, fees
and expenses of compliance with securities or blue sky laws, printing and distributing expenses,
messenger and delivery expenses, fees and expenses of custodians, internal expenses (including all
salaries and expenses of its officers and employees performing legal or accounting duties), the
expense of any annual audit or quarterly review and the expenses and fees for listing the
securities to be registered on each securities exchange on which similar securities issued by the
Company are then listed or on the NASD automated quotation system, and fees and disbursements of
counsel for the Company and the underwriters and all independent certified public accountants,
underwriters (excluding discounts and commissions) and other Persons retained by the Company.

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          “Rule 144” means Rule 144 under the Securities Act (or any similar rule then in
force).

          “SEC” means the Securities and Exchange Commission.

          “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations of the SEC promulgated thereunder.

          “Subsidiary” means, with respect to any Person, any corporation, international
business company, limited liability company, partnership, association or other business entity of
which (i) if a corporation or a limited liability company with voting securities, a majority of the
total voting power of shares of stock (or units) entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers or trustees thereof is at the time
owned or controlled, directly or indirectly, by such Person or one or more of the other
Subsidiaries of such Person or a combination thereof, or (ii) if a limited liability company
without voting securities, partnership, association or other business entity, a majority of the
partnership or other similar ownership interest thereof is at the time owned or controlled,
directly or indirectly, by any Person or one or more Subsidiaries of such Person or entity or a
combination thereof. For purposes of this Agreement, a Person or Persons shall be deemed to have a
majority ownership interest in an international business company, a limited liability company,
partnership, association or other business entity if such Person or Persons shall be allocated a
majority of limited liability company, partnership, association or other business entity gains or
losses or shall be or control any managing director, managing member, or general partner of such
limited liability company, partnership, association or other business entity.

     2. Demand Registrations.

          (a) Requests for Registration.

               (i) At any time after the date hereof, the holder(s) of a majority of the Berggruen
Registrable Securities may request registration under the Securities Act of all or any portion of
their Registrable Securities (provided, however, that such request shall be for not less than 1% of
the Company’s total outstanding Ordinary Shares) on Form S-1 or any similar long-form registration
(a “Long-Form Registration”), or on Form S-2 or S-3 or any similar short-form registration
(a “Short-Form Registration”) if such a short form is available.

               (ii) All registrations requested pursuant to this Section 2(a) are referred to herein
as “Demand Registrations.” Each request for a Demand Registration (a “Demand
Request”) shall specify the approximate number of Registrable Securities requested to be
registered, the anticipated method or methods of distribution and the anticipated per share price
range for such offering. Within ten days after receipt of any such Demand Request, the Company
will give written notice of such requested registration (which shall specify the intended method of
disposition of such Registrable Securities) to all other holders of Registrable Securities (a
“Company Notice”) and the Company will include (subject to the provisions of this
Agreement) in such registration, all Registrable Securities with respect to which the Company has
received written requests for inclusion therein within 20 days after the delivery of such Company
Notice; provided that any such other holder may withdraw its request for inclusion at
any time prior to executing the underwriting agreement or, if none, prior to the applicable
registration statement becoming effective.

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          (b) Long-Form Registrations. The holders of Berggruen Registrable Securities will be entitled
to two Long-Form Registrations. The Company will pay all Registration Expenses in connection with
any registration initiated as a Long-Form Registration whether or not it has become effective.

          (c) Short-Form Registrations. The holders of Berggruen Registrable Securities will be
entitled to unlimited Short-Form Registrations. Demand Registrations by holders of Berggruen
Registrable Securities will be Short-Form Registrations whenever the Company is permitted to use
any applicable short form. After the Company has become subject to the reporting requirements of
the Exchange Act, the Company will use its commercially reasonable efforts to make Short-Form
Registrations on Form S-3 available for the sale of Berggruen Registrable Securities. The Company
will pay all Registration Expenses in connection with any registration initiated as a Short-Form
Registration by the holders of Berggruen Registrable Securities whether or not it has become
effective.

          (d) Priority on Demand Registrations.

               (i) The Company will not include in any Demand Registration any securities which are not
Registrable Securities unless holder(s) of a majority of the Registrable Securities initiating such
Demand Registration pursuant to Section 2(a) otherwise consent.

               (ii) If a Demand Registration is an underwritten offering and the managing underwriters advise
the Company in writing that in their opinion the number of Registrable Securities and, if permitted
hereunder, other securities, requested to be included in such offering exceeds the number of
Registrable Securities and other securities, if any, which can be sold in an orderly manner in such
offering within a price range acceptable to holder(s) of a majority of the Registrable Securities
initiating such Demand Registration pursuant to Section 2(a) and without adversely
affecting the marketability of the offering, then the Company will include in such Demand
Registration (A) first, the number of Registrable Securities requested to be included in such
Demand Registration (by holders initiating such Demand Registration as well as other holders who
are permitted under this Agreement to request the inclusion of Registrable Securities in such
Demand Registration), pro rata from among the holders of such Registrable Securities according to
the number of Registrable Securities requested by them to be so included, and (B) second, any other
securities of the Company requested to be included in such registration, in such manner as the
Company may determine.

          (e) Restrictions on Demand Registrations.

               (i) The Company will not be obligated to file any registration statement with respect to any
Long-Form Registration within 180 days after the effective date of a previous Long-Form
Registration or a previous registration in which the holders of Registrable Securities were given
piggyback rights pursuant to Section 3 and in which there were included not less than 80%
of the number of Registrable Securities requested to be included.

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               (ii) The Company may postpone for up to 90 days the filing or the effectiveness of a
registration statement for a Demand Registration if the Company determines that such Demand
Registration would reasonably be expected to have a material adverse effect on any proposal or plan
by the Company or any of its Subsidiaries to engage in any acquisition of assets (other than in the
ordinary course of business) or any merger, consolidation, tender offer, reorganization or similar
transaction; provided that in such event the holders of Registrable Securities initiating such
Demand Registration pursuant to Section 2(a) will be entitled to withdraw such request and,
if such request is withdrawn, such Demand Registration will not count as one of the permitted
Demand Registrations hereunder and the Company will pay all Registration Expenses in connection
with such requested registration. The Company may use the provisions of this clause (ii) to delay
a Demand Registration initiated by holders of Berggruen Registrable Securities only once during any
twelve-month period.

          (f) Selection of Underwriters. In the case of any Demand Registration, the holders of a
majority of the number of Berggruen Registrable Securities to be included in such Demand
Registration will have the right to select the investment banker(s) and manager(s) to administer
the offering (which investment banker(s) and manager(s) will be nationally recognized).

          (g) Other Registration Rights. Except as provided in this Agreement, after the date hereof,
the Company will not grant to any Persons the right to request the Company to register any Ordinary
Shares, or any securities convertible or exchangeable into or exercisable for Ordinary Shares,
without the prior written consent of the holders of a majority of the number of Berggruen
Registrable Securities.

     3. Piggyback Registrations.

          (a) Right to Piggyback. Whenever the Company proposes to register any of its Ordinary Shares
under the Securities Act for its own account or for the account of any holder of Ordinary Shares
(other than (i) pursuant to a Demand Registration (in which case the ability of a holder of
Registrable Securities to participate in such Demand Registration shall be governed by Section
2 hereof) or (ii) pursuant to a registration statement on Form S-8 or S-4 or any similar or
successor form) (a “Piggyback Registration”), the Company will give prompt written notice
to all holders of Registrable Securities of its intention to effect such a registration and of such
holders’ rights under this Section 3(a). Upon the written request of any holder of
Registrable Securities (which request shall specify the Registrable Securities intended to be
disposed of by such holder and the intended method of disposition thereof), the Company shall
include in such registration (subject to the provisions of this Agreement) all Registrable
Securities requested to be registered pursuant to this Section 3(a), subject to Section
3(b) below, with respect to which the Company has received written requests for inclusion
therein within 20 days after the receipt of the Company’s notice; provided that any such other
holder may withdraw its request for inclusion at any time prior to executing the underwriting
agreement or, if none, prior to the applicable registration statement becoming effective.

          (b) Priority on Primary Registrations. If a Piggyback Registration is in part an underwritten
primary registration on behalf of the Company and the managing underwriters advise the Company in
writing that in their opinion the number of securities requested to be

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included in such registration exceeds the number which can be sold in an orderly manner in
such offering within a price range acceptable to the Company and without adversely affecting the
marketability of the offering, then the Company will include in such registration (i) first, the
securities the Company proposes to sell, (ii) second, the Registrable Securities requested to be
included in such registration, pro rata from among the holders of such Registrable Securities
according to the number of Registrable Securities requested by them to be so included and (iii)
third, any other securities requested to be included in such registration, in such manner as the
Company may determine.

          (c) Priority on Secondary Registrations. If a Piggyback Registration is an underwritten
secondary registration on behalf of holders of the Company’s securities, and the managing
underwriters advise the Company in writing that in their opinion the number of securities requested
to be included in such registration exceeds the number which can be sold in an orderly manner in
such offering within a price range acceptable to the holders initially requesting such registration
and without adversely affecting the marketability of the offering, then the Company will include in
such registration (i) first, (A) the securities requested to be included therein by the holders
requesting such registration and (B) the Registrable Securities requested to be included in such
registration, pro rata from among such holders and the holders of such Registrable Securities
according to the number of Registrable Securities requested by them to be so included, and (ii)
second, any other securities requested to be included in such registration, in such manner as the
Company may determine.

          (d) Other Registrations. If the Company has previously filed a registration statement with
respect to Registrable Securities pursuant to Section 2 or pursuant to this Section
3, and if such previous registration has not been withdrawn or abandoned, then all the parties
hereto agree that the Company shall not be required to effect any other registration of any of its
equity or similar securities or securities convertible or exchangeable into or exercisable for its
equity or similar securities under the Securities Act (except on Forms S-4 or S-8 or any successor
or similar form or in connection with a Demand Registration), whether on its own behalf or at the
request of any holder or holders of such securities, until a period of at least 180 days has
elapsed from the effective date of such previous registration.

          (e) Registration Expenses. The Company will pay all Registration Expenses in connection with
any Piggyback Registration whether or not such Piggyback Registration has become effective.

     4. Holdback Agreements.

          (a) Each holder of Registrable Securities hereby agrees (i) not to effect any sale or
distribution of Ordinary Shares, or any securities convertible into or exchangeable or exercisable
for Ordinary Shares, during the seven days prior to and the 180-day period beginning on the
effective date of an initial Public Offering (except as part of such initial Public Offering),
unless the underwriters managing such initial Public Offering otherwise agree (which agreement
shall be equally applicable to all holders of Registrable Securities) and (ii) to execute and
deliver any reasonable agreement which is consistent with the provisions of clause (i) of this
Section 4(a) and which may be required by the underwriters managing such initial Public
Offering.

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          (b) The Company will not effect any sale or distribution of Ordinary Shares, or any securities
convertible into or exchangeable or exercisable for Ordinary Shares, during the seven days prior to
and during the 180-day period beginning on the effective date of an initial Public Offering (except
as part of such initial Public Offering), unless the underwriters managing such initial Public
Offering otherwise agree (which agreement shall be equally applicable to all holders of Registrable
Securities).

     5. Registration Procedures. Whenever the holders of Registrable Securities have
requested that any Registrable Securities be registered pursuant to this Agreement, the Company
will use its commercially reasonable efforts to effect the registration and the sale of such
Registrable Securities in accordance with the intended method of disposition thereof, and pursuant
thereto the Company will as expeditiously as possible:

          (a) prepare and file with the SEC a registration statement with respect to such Registrable
Securities and use its commercially reasonable efforts to cause such registration statement to
become effective (provided that before filing a registration statement or prospectus or any
amendments or supplements thereto, the Company will furnish to the counsel selected pursuant to
Section 6(b) below copies of all such documents proposed to be filed, which documents will
be subject to the prompt review and reasonable comment of such counsel), and upon filing such
documents, the Company shall promptly notify in writing such counsel of the receipt by the Company
of any written comments by the SEC with respect to such registration statement or prospectus or any
amendment or supplement thereto or any written request by the SEC for the amending or supplementing
thereof or for additional information with respect thereto;

          (b) notify each holder of Registrable Securities of the effectiveness of each registration
statement filed hereunder and prepare and file with the SEC such amendments and supplements to such
registration statement and the prospectus used in connection therewith as may be necessary to keep
such registration statement effective for a period of not less than 180 days or, if such
registration statement relates to an underwritten offering, such longer period as, in the opinion
of counsel for the underwriters, a prospectus is required by law to be delivered in connection with
sales of Registrable Securities by any underwriter or dealer or such shorter period as will
terminate when all of the securities covered by such registration statement have been disposed of
in accordance with the intended methods of disposition by the seller or sellers thereof as set
forth in such registration statement (but in any event not before the expiration of any longer
period required under the Securities Act), and comply with the provisions of the Securities Act
with respect to the disposition of all securities covered by such registration statement during
such period in accordance with the intended methods of disposition by the sellers thereof set forth
in such registration statement and cause the prospectus to be supplemented by any required
prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 under the Securities
Act;

          (c) furnish to each seller of Registrable Securities such number of copies of such
registration statement, each amendment and supplement thereto, the prospectus included in such
registration statement (including each preliminary prospectus) and such other documents as such
seller may reasonably request in order to facilitate the disposition of the Registrable Securities
owned by such seller;

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          (d) if requested by the holders of a majority of Berggruen Registrable Securities in
connection with any Demand Registration requested by such holders, use its commercially reasonable
efforts to cause to be included in such registration Ordinary Shares having an aggregate value
(based on the midpoint of the proposed offering price range specified in the registration statement
used to offer such securities) of up to $500.0 million, to be offered in a primary offering of the
Company’s securities contemporaneously with such offering of Registrable Securities;

          (e) use its commercially reasonable efforts to register or qualify such Registrable Securities
under such other securities or blue sky laws of such jurisdictions as any seller reasonably
requests and do any and all other acts and things which may be reasonably necessary or advisable to
enable such seller to consummate the disposition in such jurisdictions of the Registrable
Securities owned by such seller (provided that the Company will not be required to (i) qualify
generally to do business in any jurisdiction where it would not otherwise be required to qualify
but for this subsection, (ii) subject itself to taxation in any such jurisdiction in any
jurisdiction where it is not so subject or (iii) consent to general service of process (i.e.,
service of process which is not limited solely to securities law violations) in any such
jurisdiction in any jurisdiction where it is not so subject);

          (f) promptly notify each seller of such Registrable Securities, at any time when a prospectus
relating thereto is required to be delivered under the Securities Act, upon discovery that, or upon
the discovery of the happening of any event as a result of which the prospectus included in such
registration statement contains an untrue statement of a material fact or omits any fact necessary
to make the statements therein not misleading in light of the circumstances under which they were
made, and, at the request of any such seller, the Company will, as soon as reasonably practicable,
file and furnish to all sellers a supplement or amendment to such prospectus so that, as thereafter
delivered to the purchasers of such Registrable Securities, such prospectus will not contain an
untrue statement of a material fact or omit to state any fact necessary to make the statements
therein not misleading in light of the circumstances under which they were made;

          (g) cause all such Registrable Securities to be listed on each securities exchange on which
similar securities issued by the Company are then listed and, if not so listed, to be listed on the
Nasdaq Global Market System (“Nasdaq Market”) and, if listed on the Nasdaq Market, use its
commercially reasonable efforts to secure designation of all such Registrable Securities covered by
such registration statement as a Nasdaq “national market system security” within the meaning of
Rule 11Aa2-1 under the Exchange Act or, failing that, to secure Nasdaq Market authorization for
such Registrable Securities and, without limiting the generality of the foregoing, to arrange for
at least one market maker to register as such with respect to such Registrable Securities with the
National Association of Securities Dealers;

          (h) provide a transfer agent and registrar for all such Registrable Securities not later than
the effective date of such registration statement;

          (i) enter into such customary agreements (including underwriting agreements in customary form,
subject to review and comment by Company counsel) and take all such other actions as the holders of
a majority of the Registrable Securities being sold or the underwriters, if

8

 

any, reasonably request in order to expedite or facilitate the disposition of such Registrable
Securities (including, without limitation, effecting a split or a combination of stock or shares);
provided that no holder of Registrable Securities shall have any indemnification or contribution
obligations inconsistent with Section 7 hereof;

          (j) make available for inspection by any seller of Registrable Securities, any underwriter
participating in any disposition pursuant to such registration statement and any attorney,
accountant or other agent retained by any such seller or underwriter, all financial and other
records, pertinent corporate documents and properties of the Company, and cause the Company’s
officers, directors, employees and independent accountants to supply all information and
participate in due diligence sessions reasonably requested by any such seller, underwriter,
attorney, accountant or agent in connection with such registration statement;

          (k) otherwise use its commercially reasonable efforts to comply with all applicable rules and
regulations of the SEC, and make available to its security holders, as soon as reasonably
practicable, an earnings statement covering the period of at least twelve months beginning with the
first day of the Company’s first full calendar quarter after the effective date of the registration
statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities
Act and Rule 158 promulgated thereunder;

          (l) use commercially reasonable efforts to prevent the issuance of any stop order (“Stop
Order”) suspending the effectiveness of a registration statement, or of any order suspending or
preventing the use of any related prospectus or suspending the qualification of any securities
included in such registration statement for sale in any jurisdiction, and, in the event of such
issuance, the Company shall immediately notify the holders of Registrable Securities included in
such registration statement of the receipt by the Company of such notification and shall use its
commercially reasonable efforts promptly to obtain the withdrawal of such order;

          (m) use its commercially reasonable efforts to cause such Registrable Securities covered by
such registration statement to be registered with or approved by such other governmental agencies
or authorities as may be necessary to enable the sellers thereof to consummate the disposition of
such Registrable Securities, and cooperate and assist with any filings to be made with the NASD;

          (n) obtain one or more “cold comfort” letters, dated the effective date of such registration
statement (and, if such registration includes an underwritten public offering, dated the date of
the closing under the underwriting agreement), signed by the Company’s independent public
accountants in customary form and covering such matters of the type customarily covered by “cold
comfort” letters as the holders of a majority of the Registrable Securities being sold reasonably
request; and

          (o) provide a legal opinion of the Company’s outside counsel, dated the effective date of such
registration statement (and, if such registration includes an underwritten public offering, dated
the date of the closing under the underwriting agreement), with respect to the registration
statement, each amendment and supplement thereto, the prospectus included therein (including the
preliminary prospectus) and such other documents relating thereto in
customary form and covering such matters of the type customarily covered by legal opinions of
such nature.

9

 

If any such registration or comparable statement refers to any holder by name or otherwise as the
holder of any securities of the Company and if in such holder’s sole and exclusive judgment, such
holder is or might be deemed to be an underwriter or a controlling person of the Company, such
holder shall have the right to (i) require the insertion therein of language, in form and substance
reasonably satisfactory to such holder and presented to the Company in writing, to the effect that
the holding by such holder of such securities is not to be construed as a recommendation by such
holder of the investment quality of the Company’s securities covered thereby and that such holding
does not imply that such holder will assist in meeting any future financial requirements of the
Company, or (ii) in the event that such reference to such holder by name or otherwise is not
required by the Securities Act or any similar Federal statute then in force, require the deletion
of the reference to such holder.

     6. Registration Expenses.

          (a) All expenses incident to the Company’s performance of or compliance with this Agreement,
including without limitation all Registration Expenses, will be borne by the Company.

          (b) In connection with each Demand Registration and each Piggyback Registration, the Company
will reimburse the holders of Registrable Securities included in such registration for the
reasonable fees and disbursements of one counsel chosen by the holders of a majority of the
Registrable Securities initially requesting such registration (which counsel shall be retained to
represent all such holders).

     7. Indemnification.

          (a) By the Company. The Company agrees to, and will cause each of its Subsidiaries to agree
to, indemnify, to the fullest extent permitted by law, each holder of Registrable Securities, its
officers, directors, members, employees, agents, stockholders and general and limited partners and
each Person who controls such holder (within the meaning of the Securities Act and Exchange Act)
against any and all losses, claims, damages, liabilities and expenses (or actions or proceedings,
whether commenced or threatened, in respect thereof), joint or several, arising out of or based
upon any untrue or alleged untrue statement of material fact contained in any registration
statement, reports required and other documents filed under the Exchange Act, prospectus or
preliminary prospectus or any amendment thereof or supplement thereto, together with any documents
incorporated therein by reference, or any omission or alleged omission of a material fact required
to be stated therein or necessary to make the statements therein not misleading, or any violation
or alleged violation by the Company or any of its Subsidiaries of any federal, state, foreign or
common law rule or regulation and relating to action or inaction in connection with any such
registration, disclosure document or other document and shall reimburse such holder, officer,
director, member, employee, agent, stockholder, partner or controlling Person for any legal or
other expenses, including any amounts paid in any settlement effected with the consent of the
Company, which consent will not be unreasonably withheld or delayed, incurred by such holder,
officer, director, member, employee,

10

 

agent, stockholder, partner or controlling Person in connection with the investigation or
defense of such loss, claim, damage, liability or expense, except insofar as the same are caused by
or contained in any information furnished in writing to the Company by such holder expressly for
use therein. In connection with an underwritten offering, the Company will indemnify such
underwriters, their officers, directors, agents and employees and each Person who controls such
underwriters (within the meaning of the Securities Act) to the same extent as provided above with
respect to the indemnification of the holders of Registrable Securities.

          (b) By the Holders. In connection with any registration statement in which a holder of
Registrable Securities is participating, each such holder will furnish to the Company in writing
such information and affidavits about such holder as the Company reasonably requests for use in
connection with any such registration statement or prospectus and, to the extent permitted by law,
will indemnify the Company, its directors and officers and each Person who controls the Company
(within the meaning of the Securities Act) and the other holders of Registrable Securities against
any losses, claims, damages, liabilities and expenses resulting from any untrue or alleged untrue
statement of material fact contained in the registration statement, prospectus or preliminary
prospectus or any amendment thereof or supplement thereto or any omission or alleged omission of a
material fact required to be stated therein or necessary to make the statements therein not
misleading, but only to the extent that such untrue statement or omission is contained in any
information or affidavit so furnished in writing by such holder which authorizes its use in the
applicable document; provided, that the obligation to indemnify will be individual, not joint and
several, for each holder and will be limited to the net amount of proceeds received by such holder
from the sale of Registrable Securities pursuant to such registration statement.

          (c) Claim Procedures. Any Person entitled to indemnification hereunder will (i) give prompt
written notice to the indemnifying party of any claim with respect to which it seeks
indemnification (provided that the failure to give prompt notice will not impair any Person’s right
to indemnification hereunder to the extent such failure has not prejudiced the indemnifying party)
and (ii) unless in such indemnified party’s reasonable judgment a conflict of interest between such
indemnified and indemnifying parties may exist with respect to such claim, permit the indemnifying
party to assume the defense thereof, jointly with any other indemnifying party similarly notified
to the extent it may wish, with counsel reasonably satisfactory to the indemnified party. If such
defense is assumed, the indemnifying party will not be subject to any liability for any settlement
made by the indemnified party without its consent (but such consent will not be unreasonably
withheld or delayed) and the indemnifying party shall not, without the consent of the indemnified
party, consent to entry of any judgment or enter into any settlement which does not include as an
unconditional term thereof, a full release from all liability in respect of such claim or
litigation provided by the claimant or plaintiff to such indemnified party. An indemnifying party
who is not entitled to, or elects not to, assume the defense of a claim will not be obligated to
pay (i) the fees and expenses of more than one counsel for all parties indemnified by such
indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified
party a conflict of interest may exist between such indemnified party and any other of such
indemnified parties with respect to such claim or (ii) any settlement made by any indemnified party
without such indemnifying party’s consent (but such consent will not be unreasonably withheld or
delayed).

11

 

          (d) Survival; Contribution. The indemnification provided for under this Agreement will remain
in full force and effect regardless of any investigation made by or on behalf of the indemnified
party or any officer, agent or employee and each other Person who participates as an underwriter in
the offering or sale of such securities and each other Person, if any, who controls such
indemnified party (within the meaning of the Securities Act), and will survive the transfer of
securities. The Company also agrees to make such provisions, as are reasonably requested by any
indemnified party, for contribution to such party in the event the Company’s indemnification is
unavailable for any reason.

     8. Participation in Underwritten Registrations. No Person may participate in any
registration hereunder which is underwritten unless such Person (a) agrees to sell such Person’s
securities on the basis provided in any underwriting arrangements approved by the Person or Persons
entitled hereunder to approve such arrangements (including, without limitation, pursuant to the
terms of any over-allotment or “green shoe” option requested by the managing underwriter(s),
provided that no holder of Registrable Securities will be required to sell more than the number of
Registrable Securities that such holder has requested the Company to include in any registration)
and (b) completes and executes all customary questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents required under the terms of such underwriting
arrangements; provided, that no holder of Registrable Securities included in any underwritten
registration shall be required to make any representations or warranties to the Company or the
underwriters (other than representations and warranties regarding such holder and such holder’s
intended method of distribution) or to undertake any indemnification or contribution obligations to
the Company or the underwriters with respect thereto, except as otherwise provided in Section
7.

     9. Rule 144 Reporting. With a view to making available to the holders of Registrable
Securities the benefits of certain rules and regulations of the SEC which may permit the sale of
the Registrable Securities to the public without registration, the Company agrees at its expense to
use its commercially reasonable efforts to:

          (a) make and keep current public information available, within the meaning of Rule 144 or any
similar or analogous rule promulgated under the Securities Act, at all times after it has become
subject to the reporting requirements of the Exchange Act;

          (b) file with the SEC, in a timely manner, all reports and other documents required of the
Company under the Securities Act and Exchange Act (after it has become subject to such reporting
requirements); and

          (c) so long as any party hereto owns Registrable Securities in an amount in excess of 1% of
the Company’s total outstanding Ordinary Shares, furnish to such Person forthwith upon request, a
written statement by the Company as to its compliance with the reporting requirements of said Rule
144 (at any time commencing 90 days after the effective date of the first registration filed by the
Company for an offering of its securities to the general public), the Securities Act and the
Exchange Act (at any time after it has become subject to such reporting requirements); a copy of
the most recent annual or quarterly report of the Company; and such other reports and documents as
such Person may reasonably request in availing itself of any rule or regulation of the SEC allowing
it to sell any such securities without registration.

12

 

     10. Notices. All notices, demands or other communications to be given or delivered under
or by reason of the provisions of this Agreement will be in writing and will be deemed to have been
given when delivered if delivered personally, sent via a nationally recognized overnight courier,
or sent via facsimile to the recipient, or if sent by certified or registered mail, return receipt
requested, will be deemed to have been given two business days thereafter. Such notices, demands
and other communications shall be sent to any holder of Registrable Securities at such holder’s
last address on the records of the Company, and to the Company at the address indicated below:

to the Company:

FGX International Holdings Limited

500 George Washington Highway

Smithfield, Rhode Island 02917

Attention: Chief Executive Officer

Tel: (401) 231-3800

Fax: (401) 232-7235

with a copy, which shall not constitute notice, to:

Berggruen Holdings North America Ltd.

1114 Avenue of the Americas, 41st Floor

New York, NY 10036

Attention: Jared Bluestein

Tel: (212) 380-2230

Fax: (212) 382-0121

          and

Greenberg Traurig

401 E. Las Olas Boulevard, Suite 2000

Fort Lauderdale, FL 33301

Attention: Bruce I. March, Esq.

Tel: (954) 765-0500

Fax: (954) 765-1477

or such other address, telecopy number or to the attention of such other person as the recipient
party shall have specified by prior written notice to the sending party.

     11. Miscellaneous.

          (a) Remedies. Any Person having rights under any provision of this Agreement will be entitled
to enforce such rights specifically to recover damages caused by reason of any breach of any
provision of this Agreement and to exercise all other rights granted by law. The parties hereto
agree and acknowledge that money damages may not be an adequate remedy for any breach of the
provisions of this Agreement and that any party may in its sole discretion apply to any court of
law or equity of competent jurisdiction (without posting any
bond or other security) for specific performance and for other injunctive relief in order to
enforce or prevent violation of the provisions of this Agreement.

13

 

          (b) Amendments and Waivers. The provisions of this Agreement may be amended or waived only
upon the prior written consent of (i) the Company, (ii) the holders of at least a majority of the
number of Berggruen Registrable Securities, and (iii) the holders of at least a majority of the
number of Other Registrable Securities (other than Berggruen Registrable Securities) if any; and
any amendment to which such written consent is obtained will be binding upon the Company and all
holders of Registrable Securities.

          (c) Successors and Assigns. All covenants and agreements in this Agreement by or on behalf of
any of the parties hereto will bind and inure to the benefit of the respective successors and
assigns of the parties hereto whether so expressed or not, including any corporation which is a
successor to the Company.

          (d) Severability. Whenever possible, each provision of this Agreement will be interpreted in
such manner as to be effective and valid under applicable law, but if any provision of this
Agreement is held to be prohibited by or invalid under applicable law, such provision will be
ineffective only to the extent of such prohibition or invalidity, without invalidating the
remainder of this Agreement.

          (e) Counterparts. This Agreement may be executed simultaneously in two or more counterparts,
any one of which need not contain the signatures of more than one party, but all such counterparts
taken together will constitute one and the same Agreement.

          (f) Descriptive Headings. The descriptive headings of this Agreement are inserted for
convenience only and do not constitute a part of this Agreement.

          (g) Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of Delaware, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of Delaware.

          (h) No Strict Construction. The parties hereto have participated jointly in the negotiation
and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation
arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no
presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any of the provisions of this Agreement.

          (i) Transfer. Prior to transferring any Registrable Securities (other than a transfer
pursuant to which such securities cease to be Registrable Securities) to any Person, the Person
transferring such Registrable Securities will cause the prospective transferee to execute and
deliver to the Company, a joinder to this Agreement substantially in the form of Exhibit A
hereto pursuant to which the prospective transferee agrees to be bound by this Agreement to the
same extent as the Person transferring such Registrable Securities with respect to the Registrable
Securities so transferred; provided, however that, notwithstanding the foregoing or anything
contained herein to the contrary, in the event any holder of Berggruen Registrable Securities
transfers such Berggruen Registrable Securities to any Person that is not an Affiliate of such

14

 

holder, then, subject to approval by the Company (which approval will be deemed granted by the
Company if an officer of the Company signs the applicable joinder to this Agreement), once
transferred to such Person, such Registrable Securities may be deemed “Other Registrable
Securities” for all purposes of this Agreement rather than “Berggruen Registrable Securities”.

          (j) Issuance by the Company of Additional Ordinary Shares. The parties hereto hereby
acknowledge that, after the date hereof, the Company may issue additional Ordinary Shares to
certain Persons (the “New Shareholders”). In connection with any such issuance, the
parties hereto agree that the Company may grant (but shall be under no obligation to grant) such
New Shareholders rights substantially similar to the rights granted to the holders of Other
Registrable Securities hereunder (provided that, if such grant is made, each such New Shareholder
is also subject to the obligations of holders of Other Registrable Securities hereunder) by causing
each such New Shareholder to execute a joinder to this Agreement substantially in the form of
Exhibit A hereto.

[Signature Page to Follow]

15

 

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

	 	 	 	 	 
	 	COMPANY:

FGX INTERNATIONAL HOLDINGS LIMITED

 	 
	 	By:  	/s/ Alec Taylor
 	 
	 	 	Name:  	Alec Taylor 	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	BERGGRUEN HOLDINGS NORTH AMERICA LTD.

 	 
	 	By:  	/s/ Jared S. Bluestein
 	 
	 	 	Name:  	Jared S. Bluestein 	 
	 	 	Title:  	Director 	 

16

 

	 	 	 	 	 

EXHIBIT A

FORM OF JOINDER TO

REGISTRATION RIGHTS AGREEMENT

     THIS JOINDER to the Registration Rights Agreement dated as of ___, 200___by and among FGX
International Holdings Limited, an International Business Company organized under the laws of the
British Virgin Islands (the “Company”), and certain securityholders of the Company (the
“Agreement”), is made and entered into as of ___by and between the Company and
___(“Holder”). Capitalized terms used herein but not otherwise defined
shall have the meanings set forth in the Agreement.

     WHEREAS, Holder has acquired ___Ordinary Shares from ___.

     NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
to this Joinder hereby agree as follows:

     1. Agreement to be Bound. Holder hereby (i) acknowledges that it has received and
reviewed a complete copy of the Agreement and (ii) agrees that upon execution of this Joinder, it
shall become a party to the Agreement and shall be fully bound by, and subject to, all of the
covenants, terms and conditions of the Agreement as though an original party thereto. In addition,
Holder hereby agrees that all Ordinary Shares held by Holder shall be deemed Other Registrable
Securities and Registrable Securities for all purposes of the Agreement.

     2. Successors and Assigns. Except as otherwise provided herein, this Joinder shall bind
and inure to the benefit of and be enforceable by the Company and its successors, heirs and assigns
and Holder and any subsequent holders of Registrable Securities and the respective successors,
heirs and assigns of each of them, so long as they hold any Registrable Securities.

     3. Notices. For purposes of Section 10 of the Agreement, all notices, demands or
other communications to the Holder shall be directed to:

[Name]

[Address]

     4. Counterparts. This Joinder may be executed in separate counterparts each of which
shall be an original and all of which taken together shall constitute one and the same agreement.

     5. Governing Law. This Joinder shall be governed by and construed in accordance with the
laws of the state of Delaware, without giving effect to any rules, principles or provisions of
choice of law or conflict of laws.

     6. Descriptive Headings. The descriptive headings of this Joinder are inserted for
convenience only and do not constitute a part of this Joinder.

 

 

     IN WITNESS WHEREOF, the parties hereto have executed this Joinder to the Registration Rights
Agreement as of the date set forth in the introductory paragraph hereof.

	 	 	 	 	 
	 	COMPANY:

FGX INTERNATIONAL HOLDINGS LIMITED

 	 
	 	By:  	/s/
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[HOLDER]

 	 
	 	By:  	/s/
 	 
	 	 	Name:  	 	 
	 	 	Title:

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