Document:

Employment Agreement dated December 24, 2004 (Robert Green)

  
 Exhibit 10.63

  
 EXECUTION COPY 
  
 EMPLOYMENT AGREEMENT 
  
 This Employment Agreement (“Agreement”), dated as of December
        , 2004, is by and between St. John Knits, Inc., a California corporation (“Company”), and Robert Green, an individual (“Executive”). In consideration of the mutual covenants
and agreements set forth herein, the parties hereto agree as follows. 
  
 ARTICLE I 
 EMPLOYMENT 
  
 The Company hereby employs Executive and Executive accepts employment with the Company upon the terms and conditions herein set forth. 
  
 1.1 Employment. Subject to the provisions of Article IV of this
Agreement, the Company hereby employs Executive, and Executive agrees to serve as the Executive Vice President – Sales and Marketing of the Company and St. John Knits International, Incorporated (“SJKII”) from the period beginning on
the date on which Executive commences employment with the Company (the “Effective Date”) and ending 5 years after such Effective Date (the “Term”); provided, however, that commencing with the fifth anniversary of
the Effective Date and on each anniversary thereof (each, an “Extension Date”), the Term shall be automatically extended for an additional one-year period, unless the Company or Executive provides the other party hereto 90 days prior
written notice before the applicable Extension Date that the Term shall not be so extended. In such position, Executive shall have such duties and authority commensurate with the position of an executive vice president of sales and marketing for a
company of similar size and nature and as the Company’s Chief Executive Officer shall otherwise determine from time to time. Executive agrees to devote substantially his full business time and attention and best efforts to the affairs of SJKII
and the Company during the Term, unless this Agreement is terminated sooner in accordance with the provisions hereto. Executive shall report to the Chief Executive Officer and shall have his principal place of business in New York City, New York.

  
 ARTICLE II 
 COMPENSATION 
  
 2.1 Annual Salary. During the Term, the Company shall pay Executive at the annual rate of: 
  

				
		
	 Year 1:
	  	$	520,000
		
	 Year 2:
	  	$	520,000
		
	 Year 3:
	  	$	570,000
		
	 Year 4:
	  	$	620,000
		
	 Year 5:
	  	$	620,000

  

 Executive’s annual base salary, as in effect from time to time, is hereinafter referred to as the
“Base Rate”. The Base Rate shall be payable in accordance with the Company’s normal pay periods for exempt employees (bi-weekly). For any extension period, Executive’s Base Rate shall be determined by the Chief Executive Officer
and approved by the Board of Directors. 
  
 2.2 Stock
Options. 
  
 (a) Option Grant. 
  
 (i) On the Effective Date or as soon as practicable
thereafter, Executive shall be granted an option under an option agreement, in the form attached hereto as Exhibit A (the “Option Agreement”), to purchase 37,500 Shares, at the price of $40.00 per Share, which shall be subject to
the terms and conditions set forth in the Amended and Restated St. John Knits International, Incorporated 1999 Stock Option Plan (the “Stock Option Plan”) and the Option Agreement. 
  
 (ii) The Option Agreement shall be modified to include a
provision whereby, upon Executive’s termination by the Company without Cause or by the Executive for Good Reason (as defined herein) during the first 2 years of the Term, then (A) Executive shall automatically become vested for those number of
option shares they would have been vested in under the Option Agreement had they remained employed as of the second anniversary of the Grant Date (as defined in the Option Agreement) and all other option shares shall be cancelled and (B) Executive
shall not be required to exercise vested option shares until the 5th anniversary of the Grant Date. 
  
 (iii) In the event of any conflict or inconsistency between
the terms and conditions of the Stock Option Plan and the Option Agreement, the terms and conditions of the Option Agreement shall control. 
  
 (b) Subscription Agreement. All Shares acquired by Executive upon the exercise of an Option shall be subject to the terms and conditions of a
subscription agreement, substantially in the form attached hereto as Exhibit B. 
  
 2.3 Reimbursement of Expenses. During the Term, Executive shall be entitled to receive prompt reimbursement of all reasonable expenses incurred by Executive in performing services hereunder, including all
expenses of travel, entertainment and living expenses while away from home on business at the request of, or in the service of, the Company; provided that such expenses are incurred and accounted for in accordance with the policies and
procedures established by the Company. 
  
 2.4 Bonuses.

  
 (a) Starting Bonus. Executive shall receive a starting
bonus in the amount of $50,000 (the “Starting Bonus”) that shall be paid out in Executive’s first paycheck after the Effective Date; provided, however, if at any time within the first 18 months after the Effective Date,
Executive’s employment with the Company is terminated by Executive without Good Reason (as defined in Article 4.1 below) or by the Company for Cause, Executive shall, within 

  

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20 business days after any such termination, repay to the Company the Starting Bonus. Nothing in this paragraph is to be read as guaranteeing
Executive’s employment longer than the Term or in any other way. 
  
 (b) Annual Bonus. Executive shall be eligible to receive an annual bonus (the “Annual Bonus”) with respect to each fiscal year during the Term of up to 50% of the Base Rate, which shall be determined by, and paid based
upon, both (i) performance goals of the Company as established by the Board of Directors of the Company and (ii) performance goals for the Executive individually, which shall be set by the Chief Executive Officer in consultation with Executive (and
approved by the Board of Directors of the Company) within the first 90 days of each fiscal year (or in the case of the first year, within the first 90 days after the Effective Date); provided, however, that Executive shall be entitled
to an Annual Bonus with respect to the first fiscal year in which he is employed of no less than 25% of Executives Base Rate, as may be prorated as set forth below (the “Minimum Annual Bonus Amount”); and further provided,
however, that except as expressly set forth in this Agreement, to be eligible for any Annual Bonus, Executive must be employed by the Company as of the end of each respective fiscal year. In the event the Term begins or ends on a date other
than the beginning or end of a fiscal year, respectively, then the Annual Bonus shall be prorated in accordance with the following calculation: the Annual Bonus shall be equal to the product of (A) the Annual Bonus that Executive would have actually
earned in the fiscal year (if Executive had been employed by the Company and based upon achievement of the performance goals established for such full fiscal year), multiplied by (B) a fraction, the numerator of which is the number of days that
Executive was employed during the fiscal year and the denominator of which is 365. 
  
 2.5 Benefits. 
  
 (a)
General Benefits. Except as provided pursuant to Article 2.5(b) below, during the Term, Executive shall be entitled to participate in and be covered by all health, insurance, pension and other employee plans and benefits currently established
for the employees of the Company on at least the same terms as other senior executives of the Company, subject to meeting applicable eligibility requirements. 
  

(b) Minimum Benefits. During the Term, the Company shall provide Executive with the following minimum benefits, subject to Executive meeting
applicable eligibility requirements: 
  
 (i) The
Company shall obtain, and pay the premiums on, a 5-year term life policy in the amount of $2,000,000 on the life of Executive, naming Executive’s designated beneficiary as the beneficiary thereof. 
  
 (ii) The Company shall add Executive to, and pay the
premiums on, its existing supplemental health policy. 
  
 (iii) The Company shall obtain, and pay the premiums on, a long-term disability policy consistent with Executives existing coverage, but such premiums shall not exceed $10,000 per annum. 
  

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 2.6 Vacations and Holidays. During Executive’s employment with the Company, Executive shall
be entitled to an annual vacation leave of 4 weeks at full pay, or such greater vacation benefits as may be provided for by the Company’s vacation policies applicable to senior executives. Executive shall be entitled to such holidays as are
established by the Company for all employees. 
  
 ARTICLE III

 CONFIDENTIALITY AND NONDISCLOSURE 
  
 3.1 Confidentiality. Executive will not during Executive’s employment by the Company or thereafter at any time disclose, directly or
indirectly, to any person or entity or use for Executive’s own benefit any trade secrets or confidential information relating to the Company’s business operations, marketing data, business plans, strategies, employees, negotiations and
contracts with other companies, or any other subject matter pertaining to the business of the Company or any of its affiliates, clients, customers, consultants, or licensees, known, learned, or acquired by Executive during the period of
Executive’s employment by the Company (unless generally known to the public or to trade sources other than as a result of Executive’s breach of this Article 3.1 or any breach of other confidentiality obligations by third parties)
(collectively “Confidential Information”), except as may be necessary in the ordinary course of performing Executive’s particular duties as an employee of the Company. Except as required by law, prior to the Effective Date, (a)
Executive will not disclose to anyone, other than Executive’s immediate family and legal or financial advisors, the contents of this Agreement and (b) the Company will not disclose to anyone, other than its affiliates and legal or financial
advisors, the contents of this Agreement. 
  
 3.2 Return of
Confidential Material. Executive shall promptly deliver to the Company on termination of this Agreement, whether or not for Cause and whatever the reason, or at any time the Company may so request, all memoranda, notes, records, reports,
manuals, drawings, blueprints, Confidential Information and any other documents of a confidential nature belonging to the Company or any of its affiliates, including all copies of such materials which Executive may then possess or have under
Executive’s control. Upon termination of this Agreement, Executive shall not take any document, data, or other material of any nature containing or pertaining to the proprietary information of the Company. 
  
 3.3 Prohibition on Solicitation of Customers. During the term of
Executive’s employment with the Company and for a period of one year thereafter (the “Restricted Period”), Executive shall not, directly or indirectly, either for Executive or for any other person or entity, solicit any person or
entity to terminate such person’s or entity’s contractual and/or business relationship with the Company or any of its affiliates, nor shall Executive interfere with or disrupt or attempt to interfere with or disrupt any such relationship.
None of the foregoing shall be deemed a waiver of any and all rights and remedies the Company may have under applicable law. 
  
 3.4 Prohibition on Solicitation of Employees, Agents or Independent Contractors. During the Restricted Period, Executive will not solicit any of
the employees, agents, or independent contractors of the Company or any of its affiliates to leave the employ of the Company or any of its affiliates for a competitive company or business. However, Executive 

  

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may solicit any employee, agent or independent contractor who voluntarily terminates his or her employment with the Company or any of its affiliates after a
period of 120 days have elapsed since the termination date of such employee, agent or independent contractor. None of the foregoing shall be deemed a waiver of any and all rights and remedies the Company may have under applicable law. 
  
 3.5 Right to Injunctive and Equitable Relief. Executive’s
obligations not to disclose or use Confidential Information and to refrain from the solicitations described in this Article III are of a special and unique character which gives them a peculiar value. The Company cannot be reasonably or adequately
compensated for damages in an action at law in the event Executive breaches such obligations. Therefore, Executive expressly agrees that the Company shall be entitled to injunctive and other equitable relief without bond or other security in the
event of such breach in addition to any other rights or remedies which the Company may possess or be entitled to pursue. Furthermore, the obligations of Executive and the rights and remedies of the Company under this Article III are cumulative and
in addition to, and not in lieu of, any obligations, rights, or remedies created by applicable law relating to misappropriation or theft of trade secrets or Confidential Information. 
  
 3.6 Survival of Obligations. Executive agrees that the terms of this Article III shall survive the Term and the
termination of Executive’s employment with the Company. 
  
 ARTICLE IV 
 TERMINATION 
  
 4.1 Definitions. For purposes of this Article IV, the following definitions shall apply to the terms set forth below: 
  
 (a) Cause. “Cause” shall include the following: 

 
 (i) Executive’s conviction of, or plea of guilty or
nolo contendere to, (A) a felony under the laws of the United States or any state thereof or (B) any other crime (excluding a petty misdemeanor) involving theft, fraud, dishonesty or moral turpitude; 
  
 (ii) Executive engages in willful misconduct that results in
any material harm to the Company; 
  
 (iii)
Executive’s willful failure to substantially carry out Executive’s duties (except where such failure is a result of Executive’s death or Disability) within 10 days after a written demand for substantial performance approved by a
resolution of the Board of Directors is delivered to Executive by the Board of Directors that specifically identifies the manner in which the Board of Directors believes Executive has not substantially performed Executive’s duties; 

 
 (iv) a material breach of this Agreement by Executive and
Executive fails to cure such breach within 30 days following written notice delivered by the Company; or 
  

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 (v) Executive’s material violation of any written Company policy and Executive fails
to cure such violation within 10 days following written notice delivered by the Company; provided, however, that a repeat violation of the same or similar policy shall not be subject to a cure period. 
  
 For purposes of this Article 4.1(a), no act, or failure to act, on the part
of Executive shall be considered “willful” to the extent such act, or failure to act, is based upon a directive given pursuant to a resolution duly adopted by the Board of Directors. 
  
 (b) Good Reason. “Good Reason” shall mean, without
Executive’s prior written consent: 
  
 (i)
the assignment to Executive of duties inconsistent with the position and status of Executive as set forth in this Agreement; 
  
 (ii) a substantial alteration or diminution in the nature, status or prestige of Executive’s responsibilities or a diminution in
Executive’s title or reporting level from that set forth in this Agreement; provided, however, that after a Change in Control (as defined hereinafter), a change in Executive’s title or reporting level shall not be deemed Good Reason so
long as Executive maintains substantially the same duties as Executive had prior to the Change in Control; 
  
 (iii) the relocation of the Executive’s principal business location to a point more than 50 miles from the location of such office as
of the date of this Agreement; 
  
 (iv) a
reduction by the Company of (A) Executive’s Base Rate, (B) Executive’s Annual Bonus opportunity as described in Article 2.4(b), or (C) the minimum benefits described in Article 2.5(b) of this Agreement; 
  
 (v) a failure by the Company to obtain from any successor,
before the succession takes place, an agreement to assume and perform this Agreement; or 
  
 (vi) a material breach of this Agreement by the Company (including, without limitation, the Company’s failure to grant the Option or
pay the Minimum Annual Bonus Amount). 
  
 provided that any event described
in clauses (i) through (vi) above shall constitute Good Reason only if the Company fails to cure such event within 20 days after receipt from Executive of written notice of the event which constitutes Good Reason; provided, further,
that Good Reason shall cease to exist for an event on the 180th day following the later of its occurrence or Executive’s actual knowledge thereof, unless Executive has given the Company written notice thereof prior to such date. For purposes of
clause (ii) above, a “Change in Control” shall be deemed to mean when Vestar Capital Partners, and the partners therein and the respective affiliates thereof (“Vestar”), hold, in the aggregate, less than 50% of the stock of SJKII
beneficially owned by Vestar as of the Effective Date. 
  

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 (c) Disability. “Disability” shall mean a physical or mental incapacity as a result of
which Executive becomes unable to substantially perform his duties hereunder (reasonable absences because of sickness for up to four consecutive months excepted; provided, however, that any new period of incapacity or absences shall be
deemed to be part of a prior period of incapacity or absences if the prior period terminated within 90 days of the beginning of the new period of incapacity or absence and the incapacity or absence is determined by the Board of Directors, in good
faith, to be related to the prior incapacity or absence). A determination of Disability shall be subject to the certification of a qualified medical doctor agreed to by the Company and Executive or in the event of Executive’s incapacity to
designate a doctor, Executive’s legal representative. In the absence of agreement between the Company and Executive, each party shall nominate a qualified medical doctor and the two doctors so nominated shall select a third doctor, who shall
make the determination as to Disability. 
  
 4.2 Termination by
Company. The Company may terminate Executive’s employment hereunder immediately for Cause. Subject to the other provisions contained in this Agreement, the Company may terminate this Agreement for any reason other than Cause upon 30
days’ written notice to Executive. The effective date of termination (the “Termination Date”) shall be considered to be 30 days subsequent to written notice of termination; however, the Company may elect to have Executive leave the
Company immediately. 
  
 4.3 Termination by Executive.
Executive may terminate his employment hereunder upon 30 days’ written notice to the Company. The Termination Date shall be considered to be 30 days subsequent to written notice of termination; however, the Company may elect to have Executive
leave the Company immediately. 
  
 4.4 Death or Disability of
Executive. Executive’s employment hereunder shall terminate immediately upon the death or Disability of Executive. In such event, the Termination Date shall be the date of death or the date of the determination of Executive’s
Disability in accordance with the provisions of Article 4.1(c), as applicable. 
  
 4.5 Severance Benefits Received Upon Termination. 
  
 (a) Termination by the Company for Cause or by Executive Without Good Reason. If Executive’s employment is terminated by the Company for Cause or by Executive other than for Good Reason, then Executive
shall be entitled to (i) the Base Rate through the Termination Date, (ii) any Annual Bonus earned but unpaid as of the Termination Date for any previously completed year, (iii) reimbursement for any unreimbursed business expenses properly incurred
by Executive in accordance with Company policy prior to the Termination Date, (iv) credit for any vacation earned but not taken, and (v) such employee benefits, if any, to which Executive may be entitled under the employee benefit plans of the
Company (the amounts described in clauses (i) through (v) hereof being referred to as the “Accrued Rights”). The Company shall thereafter have no further obligations to Executive under this Agreement. 
  
 (b) Termination Due to Death or Disability. If Executive’s
employment is terminated due to Executive’s death or Disability, then Executive shall be entitled to the Accrued Rights. The Company shall thereafter have no further obligations to Executive under this Agreement. 
  

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 (c) Termination by the Company Without Cause or by Executive for Good Reason. If Executive’s
employment is terminated by the Company without Cause or by Executive for Good Reason, then, subject to Executive’s continued compliance with the provisions of Article III and entering into a general release agreement with the Company,
Executive shall be entitled to: 
  
 (i) continued
payment of the Base Rate for a period of 18 months following the Termination Date (the “Severance Period”), payable in equal monthly installments; 
  
 (ii) a lump sum payment, within 60 days following the beginning of the fiscal year subsequent to the fiscal year in which the Termination
Date occurs, equal to the product of (A) the Annual Bonus that Executive would have actually earned in the fiscal year in which the Termination Date occurs (if Executive had remained employed by the Company and based upon achievement of the
performance goals established for such fiscal year), multiplied by (B) a fraction, the numerator of which is the number of days that Executive was employed during the fiscal year in which the Termination Date occurs and the denominator of which is
365; 
  
 (iii) during the Severance Period,
continuation of health insurance coverage as then in effect for Executive pursuant to Executives continuing coverage rights under COBRA; and 
  
 (iv) the Accrued Rights. 
  
 (d) Expiration of the Agreement. If the Company should give Executive notice, pursuant to Section 1.1, that it does not intend to renew this
Agreement beyond the Agreement’s expiration date (the “Expiration Date”), then, subject to Executive remaining employed through the Expiration Date and entering into a general release agreement with the Company, Executive shall be
entitled to: 
  
 (i) continued payment of the
Base Rate (in effect as of the Expiration Date) for a period of 9 months following the Expiration Date (the “Severance Period”), payable in equal monthly installments; 
  
 (ii) a lump sum payment, within 60 days following the beginning of the fiscal year subsequent to the fiscal
year in which the Expiration Date occurs, equal to the product of (A) the Annual Bonus that Executive would have actually earned in the fiscal year in which the Expiration Date occurs (if Executive had remained employed by the Company and based upon
achievement of the performance goals established for such fiscal year), multiplied by (B) a fraction, the numerator of which is the number of days that Executive was employed during the fiscal year in which the Expiration Date occurs and the
denominator of which is 365 (i.e. Executive shall not receive credit towards a bonus for performance goals that are met after the Expiration Date); 
  
 (iii) during the Severance Period, continuation of health insurance coverage as then in effect for Executive pursuant to Executives
continuing coverage rights under COBRA; and 
  

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 (iv) the Accrued Rights. 
  
 ARTICLE V 
 GENERAL PROVISIONS 
  
 5.1 Notice. For purposes of
this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered by hand with written acknowledgment of receipt, or when received by the addressee, if
mailed by United States registered mail, return receipt requested, postage prepaid, or when received by the addressee, if sent by a national recognized overnight delivery service as follows: 
  

			
	If to the Company:	    	 St. John Knits, Inc.

	 	    	 17622 Armstrong Avenue

	 	    	 Irvine, California 92614

	 	    	 Attn: CEO

		
	If to Executive:	    	 Robert Green

	 	    	 c/o St. John Knits, Inc.

	 	    	 17622 Armstrong Avenue

	 	    	 Irvine, California 92614

  
 or such other address as either party
may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt. 
  
 5.2 No Waivers. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in
writing signed by Executive and the Company. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. 
  
 5.3 Beneficial Interests. This Agreement shall inure to the benefit of and be enforceable by Executive’s personal and legal representatives,
executors, administrators, successors, heirs, distributees, devisees and legatees. If Executive should die while any amounts are still payable to him hereunder, all such amounts, unless otherwise provided herein, shall be paid in accordance with the
terms of this Agreement to Executive’s devisee, legatee, or other designee or, if there be no such designee, to Executive’s estate. 
  
 5.4 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to
conflicts of laws principles thereof. 
  
 5.5 Severability or
Partial Invalidity. The invalidity or unenforceability of any provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 
  

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 5.6 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall
be deemed to be an original but all of which together will constitute one and the same instrument. 
  
 5.7 Legal Fees and Expenses. Should any party institute any action or proceeding to enforce this Agreement or any provision hereof, or for damages
by reason of any alleged breach of this Agreement or of any provision hereof, or for a declaration of rights hereunder, the prevailing party in any such action or proceeding shall be entitled to receive from the other party all costs and expenses,
including reasonable attorneys’ fees, incurred by the prevailing party in connection with such action or proceeding. 
  
 5.8 Entire Agreement. This Agreement constitutes the entire agreement of the parties and supersedes all prior written or oral and all
contemporaneous oral agreements, understandings, and negotiations between the parties with respect to the subject matter hereof. This Agreement is intended by the parties as the final expression of their agreement with respect to such terms as are
included in this Agreement and may not be contradicted by evidence of any prior or contemporaneous agreement. The parties further intend that this Agreement constitutes the complete and exclusive statement of its terms and that no extrinsic evidence
may be introduced in any judicial proceeding involving this Agreement. 
  
 5.9 Assignment. This Agreement and the rights, duties, and obligations hereunder may not be assigned or delegated by any party without the prior written consent of the other party and any attempted assignment or delegation without
such prior written consent shall be void and be of no effect. Notwithstanding the foregoing provisions of this Section 5.9, the Company may assign or delegate its rights, duties, and obligations hereunder to any of its affiliates or to any person or
entity which succeeds to all or substantially all of the business of the Company through merger, consolidation, reorganization, or other business combination or by acquisition of all or substantially all of the assets of the Company. 
  
 5.10 Set-Off. The Company’s obligation to pay Executive the
amounts provided hereunder shall be subject to set-off, counterclaim or recoupment of any amounts loaned or advanced by the Company or any of its affiliates to Executive. 
  
 5.11 Indemnity. Upon Executives request, the Company and Executive shall enter into an indemnification agreement
consistent to indemnification agreement entered into between the Company and other officers and directors of the Company. 
  
 5.12 Representations. 
  
 (a) Executive hereby represents to the Company that the execution and delivery of this Agreement by Executive and the Company and the performance by
Executive of his duties hereunder shall not constitute a breach of, or otherwise contravene, the terms of any employment agreement or other agreement or policy to which Executive is a party or otherwise bound. 
  
 (b) The Company hereby represents to Executive that (i) the Company is fully
authorized and empowered by action of the Board of Directors to enter into this Agreement and 

  

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(ii) the performance of the Company’s obligations under this Agreement will not violate any agreement between the Company and any other person, firm or
organization. 
  
 5.13 Withholding. The Company may
withhold from any amounts payable under this Agreement such Federal, state and local taxes as may be required to be withheld pursuant to any applicable law or regulation. 
  
 5.14 Arbitration. Except as provided in Article 3.5 of this Agreement, any controversy arising out of or relating to
Executive’s employment, this Agreement, its enforcement or interpretation, or because of an alleged breach, default, or misrepresentation in connection with any of its provisions, shall be resolved by arbitration before the American Arbitration
Association in Orange County, California. Final resolution of any dispute through arbitration may include any remedy or relief which the arbitrator deems just and equitable. Any award or relief granted by the arbitrator hereunder shall be final and
binding on the parties hereto and may be enforced by any court of competent jurisdiction. The parties agree that they are hereby waiving any rights to trial by jury in any action, proceeding or counterclaim brought by either of the parties against
the other in connection with any matter whatsoever arising out of or in any way connected with this Agreement or Executive’s employment. 
  
 5.15 Survival. The respective rights and obligations of the parties to this Agreement shall survive any termination of Executive’s employment
to the extent necessary to the intended preservation of such rights and obligations. 
  
 5.16 No Mitigation. Except as expressly provided in this Agreement, the Company agrees that any income and other employment benefits received by Executive from any and all sources other than the Company or any
of its affiliates before, during or after the Term shall in no way reduce or otherwise affect the Company’s obligation to make payments and afford benefits to Executive as provided in this Agreement. 
  

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

  

			
	 St. John Knits, Inc.,
 a California corporation

		
	By:	 	 
	 	 	 Name: Richard Cohen

  

	
	
	 
	 Robert Green

  

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 EXHIBIT A 

 
 [FORM OF OPTION AGREEMENT] 
  

  
 EXHIBIT B 

 
 [SUBSCRIPTION AGREEMENT]Time Option Agreement dated January 11, 2005 (Robert Green)

  
 Exhibit 10.64

  
 TIME OPTION AGREEMENT 
  
 THIS AGREEMENT (the “Agreement”), is made effective as of the 11th
day of January 2005, (hereinafter called the “Grant Date”), between ST. JOHN KNITS INTERNATIONAL, INCORPORATED, a Delaware corporation (hereinafter called the “Company”), and Robert Green (hereinafter called the
“Participant”): 
  
 R E C I
T A L S: 
  
 WHEREAS, the Company has
adopted the Amended and Restated St. John Knits International, Incorporated 1999 Stock Option Plan (the “Plan”), which Plan is incorporated herein by reference and made a part of this Agreement. Capitalized terms not otherwise defined
herein shall have the same meanings as in the Plan; 
  
 WHEREAS,
the Committee has determined that it would be in the best interests of the Company and its stockholders to grant the option provided for herein (the “Option”) to the Participant pursuant to the Plan and the terms set forth herein; and

  
 WHEREAS, simultaneous with the Company’s grant of this
Option to the Participant, the Participant acknowledges that Participant shall, if the Participant has not already, become a party to the Management Stockholders’ Agreement between and among St. John Knits, Inc., the Company, Vestar/Gray
Investors LLC, Vestar/SJK Investors LLC and all other members of management of the Company who have received or will receive options to acquire shares of Common Stock (the “Management Stockholders’ Agreement”). 
  
 NOW THEREFORE, in consideration of the mutual covenants hereinafter set
forth, the parties agree as follows: 
  
 1. Grant of the
Option. The Company hereby grants to the Participant the right and option (the “Option”) to purchase, on the terms and conditions hereinafter set forth, all or any part of an aggregate of 37,500 shares of Common Stock, subject to
adjustment as set forth in the Plan. The per share purchase price of the shares of Common Stock subject to the Option (the “Exercise Price”) shall be $40.00. The Option is intended to be a non-qualified stock option, and is not intended to
be treated as an option that complies with Section 422 of the Internal Revenue Code of 1986, as amended. 
  
 2. Vesting. At any time, the portion of the Option which has become vested and exercisable as described in this Section 2 is hereinafter referred
to as the “Vested Portion.” 
  
 (a) Time Vesting.
Subject to paragraphs (b) and (c) of this Section 2, the Option shall vest and become exercisable with respect to twenty percent (20%) of the shares of Common Stock initially covered by the Option on each of the first, second, third, fourth and
fifth anniversaries of the Grant Date. 
  

 (b) Termination of Employment. If Participant’s employment is terminated by the Company
without Cause or by the Participant for Good Reason (as defined herein) within the first 2 years of the Participant’s employment, then Participant shall automatically become vested for those number of Options he would have been vested in under
this Agreement had he remained employed through the second anniversary of the Grant Date and all other Options shall be canceled, and the Vested Portion of the Option shall remain exercisable for the period set forth in Section 3(a). If
Participant’s employment with the Company is terminated for Cause or by the Participant without Good Reason, then the Option shall, to the extent not then vested, be canceled by the Company without consideration and the Vested Portion of the
Option shall remain exercisable for the period set forth in Section 3(a). 
  
 (c) Change of Control. Notwithstanding any other provisions of this Agreement to the contrary, in the event of a change of control, the Option shall, to the extent not then vested and not previously canceled,
immediately become fully vested and exercisable. For purposes of this Agreement, a change of control shall be deemed to occur as determined in the sole discretion of the Committee. 
  
 3. Exercise of Option. 
  
 (a) Period of Exercise. Subject to the provisions of the Plan and this Agreement, the Participant may exercise all or any part of the Vested
Portion of the Option at any time prior to the earliest to occur of: 
  
 (i) the tenth anniversary of the Grant Date; 
  
 (ii) six
months following the date of the Participant’s termination of employment as a result of death or Disability; 
  
 (iii) the fifth anniversary of the Grant Date, in the event of the Participant’s termination of employment by the Company without Cause (other than
as a result of death or Disability) or by the Participant for Good Reason; and 
  
 (iv) the date of the Participant’s termination of employment by the Company for Cause or by the Participant without Good Reason. 
  
 For purposes of this Agreement: 
  
 “Cause” shall mean “cause” as defined in any employment agreement entered into by and between the Participant and the
Company or any of its Subsidiaries which is in effect as of or after the Grant Date (as the same may be amended in accordance with the terms thereof) or if not defined therein or if there shall be no such agreement, “Cause” shall mean (i)
willful malfeasance or willful misconduct in connection with the performance of his duties as such, (ii) the commission of (a) any felony or (b) a misdemeanor involving moral turpitude; 
  
 “Disability” shall mean “disability” as defined in any employment agreement entered into
by and between the Participant and the Company or any of its Subsidiaries which is in effect as of or after the Grant Date (as the same may be amended in 

  

 2 

 
accordance with the terms thereof) or if not defined therein or if there shall be no such agreement, as defined in the Company long-term disability plan as
in effect from time to time, or if there shall be no plan or if not defined therein, the Participant’s becoming physically or mentally incapacitated and consequent inability for a period of six (6) months in any twelve (12) consecutive month
period to perform the Participant’s duties to the Company or any Subsidiary; 
  
 “Good Reason” shall mean, if the Participant has entered into an employment agreement with the Company or any of its
Subsidiaries which is in effect as of or after the Grant Date, the occurrence of such events which, under the terms of such employment agreement (as the same may be amended in accordance with the terms thereof), would expressly enable the
Participant to resign from employment and be treated under such employment agreement as though the Participant’s employment had been terminated by the Company without “Cause” or, if the employment agreement does not include such
provisions or if there shall be no such employment agreement, “Good Reason” shall mean: (i) the Company or any Subsidiary has failed to pay the Participant his salary; (ii) the office where the Participant performs his duties is moved more
than 30 miles from where the Participant performed the Participant’s duties on the Grant Date; (iii) a substantial reduction of the Participant’s base salary (other than an across the board reduction similarly affecting other comparable
employees of the Company or its Subsidiaries) or (iv) a substantial diminution of the Participant’s duties, which, in each case, has not been remedied within a reasonable time specified by the Participant that is not less than thirty (30) days
after delivery to the Company of written notice describing the event constituting Good Reason. 
  
 (b) Method of Exercise. 
  
 (i)
Subject to Section 3(a), the Vested Portion of the Option may be exercised by delivering to the Company at its principal office written notice of intent to so exercise; provided that, the Option may be exercised with respect to whole
shares of Common Stock only. Such notice shall specify the number of shares of Common Stock for which the Option is being exercised and shall be accompanied by payment in full of the Exercise Price. The payment of the Exercise Price shall be made in
cash or, subject to the consent of the Committee, in shares of Common Stock which have been owned by the Participant for at least six months, such shares to be valued at their Fair Market Value (as such term is defined in the Management
Stockholders’ Agreement) as of the date of exercise. 
  
 (ii)
Notwithstanding any other provision of the Plan or this Agreement to the contrary, the Option may not be exercised prior to the completion of any registration or qualification of the Option or the shares of Common Stock that is required to comply
with applicable state and federal securities or any ruling or regulation of any governmental body or national securities exchange that the Committee shall in its sole discretion determine in good faith to be necessary or advisable. 
  
 (iii) Upon the Company’s determination that the Option has been validly
exercised as to any of the shares of Common Stock, the Company shall issue certificates in the Participant’s name for such shares. However, the Company shall not be liable to the Participant 

  

 3 

 
for damages relating to any delays in issuing the certificates to him, any loss of the certificates, or any mistakes or errors in the issuance of the
certificates or in the certificates themselves. 
  
 (iv) In the
event of the Participant’s death, the Vested Portion of the Option shall remain exercisable by, the Participant’s executor or administrator, or the person or persons to whom the Participant’s rights under this Agreement shall pass by
will or by the laws of descent and distribution as the case may be, to the extent set forth in Section 3(a) (any of the foregoing, a “Permitted Transferee”). Any heir or legatee of the Participant shall take rights herein granted subject
to the terms and conditions hereof. During the Participant’s lifetime, the Option is exercisable only by the Participant. 
  
 (v) As a condition to exercising the Option, the Participant shall become a party to the Management Stockholders’ Agreement. 
  
 4. No Right to Continued Employment. Neither the Plan nor this
Agreement shall be construed as giving the Participant the right to be retained in the employ of, or in any consulting relationship to, the Company or any Affiliate. Further, the Company or an Affiliate may at any time dismiss the Participant or
discontinue any consulting relationship, free from any liability or any claim under the Plan or this Agreement, except as otherwise expressly provided herein. 
  

5. Legend on Certificates. To the extent provided by the Management Stockholders’ Agreement, the certificates representing the shares of
Common Stock purchased by exercise of the Option shall contain a legend stating that they are subject to the Management Stockholders’ Agreement and may be subject to such stop transfer orders and other restrictions as the Committee may deem
advisable under the Plan or the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which such shares are listed, and any applicable Federal or state laws, and the Committee may cause an
additional legend or legends to be put on any such certificates to make appropriate reference to such other restrictions. 
  
 6. Transferability. The Option may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant
otherwise than to a Permitted Transferee, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate; provided that the
designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance. No such permitted transfer of the Option to a Permitted Transferee shall be effective to bind the Company unless the
Committee shall have been furnished with written notice thereof and a copy of such evidence as the Committee may deem necessary to establish the validity of the transfer and the acceptance by the Permitted Transferee or Transferees of the terms and
conditions hereof. 
  
 7. Withholding. A Participant shall
be required to pay to the Company or any Affiliate, and the Company shall have the right and is hereby authorized to withhold, any applicable withholding taxes in respect of an Option, its exercise or any payment or transfer under an Option or under
the Plan and to take such other action as may be necessary in the opinion of the Company to satisfy all obligations for the payment of such withholding taxes. 
  

 4 

 8. Securities Laws; Representations. 
  
 (a) Upon the acquisition of any shares of Common Stock pursuant to the exercise of the Option, the Participant will make or
enter into such written representations, warranties and agreements as the Committee may reasonably request in order to comply with applicable securities laws or with this Agreement. 
  
 (b) Participant represents and warrants that Participant, either alone or with a representative advisor, has sufficient
knowledge and experience in financial and business matters that Participant is capable of evaluating the merits and risks of this Option grant and, in the event such Option is exercised, the ownership of such shares of Common Stock. 
  
 9. Notices. Any notice necessary under this Agreement shall be
addressed to the Company in care of its Secretary at the principal executive office of the Company and to the Participant at the address appearing in the personnel records of the Company for the Participant or to either party at such other address
as either party hereto may hereafter designate in writing to the other. Any such notice shall be deemed effective upon receipt thereof by the addressee. 
  
 10. Choice of Law. THE INTERPRETATION, PERFORMANCE AND ENFORCEMENT OF THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF DELAWARE
WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. 
  
 11.
Option Subject to Plan and Management Stockholders’ Agreement. By entering into this Agreement the Participant agrees and acknowledges that the Participant has received and read a copy of the Plan and the Management Stockholders’
Agreement. The Option is subject to the Plan and the Management Stockholders’ Agreement. The terms and provisions of the Plan and the Management Stockholders’ Agreement as they may be amended from time to time in accordance with their
respective terms are hereby incorporated herein by reference. In the event of a conflict between any term or provision contained herein and a term or provision of the Plan or the Management Stockholders’ Agreement, the applicable terms and
provisions of the Plan or the Management Stockholders’ Agreement, as applicable, will govern and prevail. In the event of a conflict between any term or provision of the Plan and any term or provision of the Management Stockholders’
Agreement, the applicable terms and provisions of the Management Stockholders’ Agreement will govern and prevail. 
  
 12. Signature in Counterparts. This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument. 
  

 5 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement. 
  

			
	ST. JOHN KNITS INTERNATIONAL,
	INCORPORATED
		
	By:	 	 
	 Title:  
	 	 

  

			
	Agreed and acknowledged as of the date first above written:
	
	 
	 ROBERT GREEN

  

 6

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