Document:

EXHIBIT 10.23(c)
	 

	 
		FORM OF AGREEMENT AND CERTIFICATE OF
		OPTION
	 

	 
		PURSUANT TO THE 2007 LONG TERM INCENTIVE
		PLAN 
	 

	 
		OF FINLAY ENTERPRISES, INC.
	 

	 
		(for awards granted prior to termination of
		
	 

	 
		Stockholders’ Agreement and
		Registration Rights Agreement)
	 

	 
		Agreement and Certificate of Option (this
		“Agreement”) dated ________, 20__ (the “Date of Grant”),
		between FINLAY ENTERPRISES, INC. (the “Corporation”) and
		_______________ (the “Grantee”):
	 

	 
			
				
				   
				

			 	
				
				  1.
				

			 	
				
				  The Option.
				

			 

 

	 
		(a) Subject to the provisions of this
		Agreement, the Corporation hereby grants to the Grantee a stock option (the
		“Option”) to purchase, on the terms and conditions herein set forth,
		up to ________ shares of the Corporation’s fully paid, non-assessable
		shares of Common Stock, par value $0.01 per share (the “Shares”), at
		the option price set forth in Section 2 below.
	 

	 
		(b) The Option is granted pursuant to the
		Corporation’s 2007 Long Term Incentive Plan (the “Plan”), a copy
		of which is delivered herewith by the Corporation and receipt thereof is
		acknowledged by the Grantee. The Option is subject in its entirety to all of
		the applicable provisions of the Plan which are incorporated herein by
		reference, and any conflict between the terms of this Agreement and those of
		the Plan shall be resolved in favor of the terms of the Plan. The Option is a
		“Nonqualified Stock Option” as that term is defined in the
		Plan.
	 

	 
			
				
				   
				

			 	
				
				  2.
				

			 	
				
				  Exercise Price.
				

			 

 

	 
		The purchase price of the Shares shall be
		$_______ per Share (the “Exercise Price”).
	 

	 
			
				
				   
				

			 	
				
				  3.
				

			 	
				
				  Exercise of
				  Option.
				

			 

 

	 
		(a) Except as otherwise provided in the Plan
		and this Agreement, the Option is exercisable over a period of ten (10) years
		from the date hereof (the “Option Period”) in accordance with the
		following schedule (the portion of the Option exercisable in accordance with
		such schedule being referred to herein as “Vested”):
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
		-1-
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				  Date
				

			 	
				
				   
				

			 	
				
				  Percent of Shares
				  Subject
 to Option
				  Exercisable
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Commencing on the first anniversary
				  of the Date of Grant until (but not including) the second anniversary of the
				  Date of Grant
				

			 	
				
				   
				

			 	
				
				  [__]%
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Commencing on the second anniversary
				  of the Date of Grant until (but not including) the third anniversary of the
				  Date of Grant
				

			 	
				
				   
				

			 	
				
				  [__]%
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Commencing on the third anniversary
				  of the Date of Grant until (but not including) the fourth anniversary of the
				  Date of Grant
				

			 	
				
				   
				

			 	
				
				  [__]%
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Commencing on the fourth anniversary
				  of the Date of Grant until (but not including) the fifth anniversary of the
				  Date of Grant
				

			 	
				
				   
				

			 	
				
				  [__]%
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Commencing on the fifth anniversary
				  of the Date of Grant until (but not including) the tenth anniversary of the
				  Date of Grant
				

			 	
				
				   
				

			 	
				
				  [__]%
				

			 

 

	 
		Subject to the terms hereof, the Option may
		be exercised from time to time during the Option Period as to the total number
		of Shares allowable under this Section 3, or any lesser amount thereof, as long
		as the Grantee is employed by the Corporation. For purposes of this Agreement,
		employment by the Corporation or any Subsidiary (as defined in the Plan) shall
		be deemed to be employment by the Corporation.
	 

	 
		(b) In the event that the Grantee’s
		employment is terminated other than by reason of Retirement, death or
		Disability (as such terms are defined in the Plan), (1) any portion of the
		Option not yet Vested shall thereupon expire and terminate and (2) any portion
		of the Option that has Vested may be exercised during the period ending
		twenty-one (21) days following such termination, after which period any
		unexercised portion of the Option shall expire and terminate; provided, however, that in the event that the Grantee’s employment
		is terminated for Cause (as hereinafter defined), the Option or any unexercised
		portion thereof shall immediately upon such termination be permanently
		cancelled. 
	 

	 
		(c) In the event that the Grantee’s
		employment is terminated by reason of death, the entire Option (or any
		unexercised portion thereof) shall thereupon be deemed Vested and may be
		exercised during the period ending on (but not including) the first anniversary
		of such termination, and in the event that the Grantee’s employment is
		terminated by reason of Retirement or Disability, the entire Option (or any
		unexercised portion thereof) shall thereupon be deemed Vested and may be
		exercised during the period ending twenty-one (21) days following such
		termination, after which period any unexercised portion of the Option shall
		expire and terminate.
	 

	 
		(d) If this Option shall extend to one
		hundred (100) or more Shares, then this Option may not be exercised for less
		than one hundred (100) Shares at any one time, and if this Option shall extend
		to less than one hundred (100) Shares, then this Option must be exercised for
		all such Shares at one time.
	 

	 
		 
	 

	 
		 
	 

	 
		-2- 
	 

	 
		 
	 

	 
	 

	 

	 
		(e) The number of Shares to which the
		Grantee shall be entitled and the Exercise Price shall be proportionately and
		equitably adjusted in such manner as the Committee shall determine to maintain
		the economic value of the Option in the event any stock dividend, stock split,
		recapitalization, merger, reorganization, exchange of shares or similar event
		occurs in which the number or class of shares of Common Stock is changed
		without the receipt or payment of consideration by the Corporation. Nothing
		contained herein shall be deemed to require the Corporation to issue any
		fractional Shares, and any fractional Shares issuable upon exercise of the
		Option may, at the discretion of the Corporation, be settled in cash or
		otherwise or shall be forfeited or otherwise eliminated.
	 

	 
		(f) At such time as the Grantee desires to
		exercise the Option granted hereby, in whole or in part, the Grantee shall
		provide to the Corporation an Exercise Form in the form of Annex A hereto or in
		such other form authorized by the Corporation’s General Counsel. The
		Grantee’s signature at the place provided on said Exercise Form will
		evidence the Grantee’s election to purchase Shares of Common Stock
		pursuant to the terms and subject to the conditions and limitations contained
		in the Plan, in this Agreement and in said Exercise Form. The Option shall be
		considered exercised (in full or part, as the case may be) on the date such
		Exercise Form is received by the Secretary, together with payment of the
		Exercise Price for the Shares to be purchased plus any withholding tax required
		under any federal, state and local statutes. The Grantee may elect to have the
		amount of any withholding tax withheld from the Shares of Common Stock
		purchased. 
	 

	 
		(g) The Exercise Price shall be paid in full
		at the time of purchase of the Shares in cash or by check [ONLY INCLUDE FOR
		NON-EXECUTIVE OFFICERS: or by cashless exercise in accordance with the
		Corporation’s cashless exercise procedures as in effect from time to
		time]. If the Option is exercised in accordance with the provisions of the Plan
		and this Agreement, then the Corporation shall deliver to the Grantee
		certificates representing the number of Shares in respect of which the Option
		is being exercised, which Shares shall be registered in the Grantee’s
		name.
	 

	 
			 	
				
				  4.
				

			 	
				
				  Stockholders’ and
				  Registration Rights Agreements; Additional Repurchase
				  Provisions.
				

			 

 

	 
		(a) It is a condition to the grant of the
		Option that the Grantee execute and deliver to the Corporation, simultaneously
		with the execution and delivery of this Agreement by the Grantee, counterparts
		of the Amended and Restated Stockholders’ Agreement dated as of March 6,
		1995 and the Registration Rights Agreement, dated as of May 26, 1993, as
		amended (respectively the “Stockholders’ Agreement” and the
		“Registration Rights Agreement”), by and among the Corporation, David
		B. Cornstein, Arthur E. Reiner and certain other parties. Upon the
		Grantee’s execution and delivery of such agreements, the Grantee will be
		deemed to be a “Management Holder” under the Stockholders’
		Agreement and a “Management Stockholder” under the Registration
		Rights Agreement, and as such the Grantee will be subject, in addition to the
		provisions of this Agreement, to all of the terms, conditions and obligations
		of such agreements, including, without limitation, restrictions on the
		transferability of the Option and any Shares purchased upon exercise thereof.
		Two copies of each of such agreements are enclosed herewith. Capitalized terms
		used but not otherwise defined herein are used as defined in the
		Stockholders’ Agreement.
	 

	 
		(b) Notwithstanding anything to the contrary
		contained herein or in the Stockholders’ Agreement, in the event that the
		Grantee’s employment is terminated for Cause, the Corporation shall have
		the right, exercisable by written notice within twenty-one (21) days of such
		termination of employment, to repurchase from the Grantee (and any of
		Grantee’s Permitted Transferees, if applicable), any and all Shares
		theretofore purchased by the Grantee hereunder at a price per Share equal to
		the Exercise Price in respect of such Shares. For purposes of this Agreement,
		termination for “Cause” shall mean termination by reason of the
		Grantee’s fraud, dishonesty or commission of a crime, whether or not in
		the course of his or her employment. 
	 

	 
		 
	 

	 
		 
	 

	 
		-3-
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				   
				

			 	
				
				  5.
				

			 	
				
				  Transferability of Option and
				  Shares.
				

			 

 

	 
		(a) The Option is not transferable other
		than by will or by the laws of descent and distribution and during a
		Grantee’s lifetime is exercisable only by the Grantee. Any assignment in
		violation of this Section 5(a) shall be void and of no force or effect.
	 

	 
		(b) The transferability of the Option and
		the Shares is limited by the terms of the Stockholders’ Agreement and the
		Registration Rights Agreement and by applicable law.
	 

	 
		(c) Without limiting the generality of the
		foregoing, no purported sale, assignment or other transfer of the Shares shall
		be effective unless and until the transferee of the Shares so transferred
		executes and delivers to the Corporation its agreement, in form and substance
		satisfactory to the Corporation, to be bound by the provisions of this
		Agreement.
	 

	 
			
				
				   
				

			 	
				
				  6.
				

			 	
				
				  Covenants of the
				  Grantee.
				

			 

 

	 
		The Grantee’s exercise of the Option
		shall be subject to the Grantee acknowledging and agreeing to the following at
		the time of such exercise:
	 

	 
		(a) The Shares may not be sold or otherwise
		disposed of except in compliance with the Securities Act of 1933, as amended
		(the “Act”), and any applicable securities or “Blue Sky”
		laws of any state.
	 

	 
		(b) The Shares will not be sold,
		hypothecated, transferred or otherwise disposed of by the Grantee in any
		manner, directly or indirectly, (i) without registration thereof under the Act
		and any applicable Blue Sky laws unless an exemption from such registration is
		available and, if the Corporation so requests, the Grantee causes counsel
		satisfactory to the Corporation to deliver to the Corporation a reasoned
		written opinion of such counsel in form and substance satisfactory to the
		Corporation; or (ii) in violation of any law; or (iii) in violation of the
		Stockholders’ Agreement or the Registration Rights Agreement.
	 

	 
		(c) The certificate or certificates
		representing the Shares shall have an appropriate legend referring to the terms
		of this Option.
	 

	 
		(d) The Grantee acknowledges that in the
		event of termination of his or her employment with the Corporation, his or her
		rights to exercise this Option are restricted as set forth in Section 3
		above.
	 

	 
			
				
				   
				

			 	
				
				  7.
				

			 	
				
				  General
				  Provisions.
				

			 

 

	 
		This Agreement is subject in all respects to
		the terms and conditions of the Plan, which terms and conditions the Grantee is
		deemed to accept and consent to by the Grantee’s acceptance of the Option.
		Nothing contained in this Agreement shall confer upon the Grantee any right to
		continue in the employ of the Corporation or any of it Subsidiaries or shall in
		any way affect the right and power of the Corporation or any of its
		Subsidiaries to dismiss or otherwise terminate the employment of the Grantee at
		any time for any reason with or without cause. This Agreement shall be governed
		and construed in accordance with the laws of the State of Delaware. Any dispute
		arising hereunder shall be brought before a court of competent jurisdiction in
		the City, County and State of New York.
	 

	 
		If the foregoing is in accordance with the
		Grantee’s understanding and accepted and agreed to by the Grantee, the
		Grantee may so confirm by signing and returning the duplicate of this Agreement
		delivered for that purpose, as well as one copy of the enclosed
		Stockholders’ Agreement and Registration Rights Agreement.
	 

	 
		 
	 

	 
		 
	 

	 
		-4-
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  FINLAY ENTERPRISES, INC.
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  By
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Arthur E. Reiner

				  Chairman and CEO
				

			 

 

	 
		 
	 

	 
		The foregoing is in accordance with my
		understanding and is hereby accepted and agreed.
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  GRANTEE
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Date: 
				

			 	

				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		-5- 
	 

	 
		 
	 

	 
	 

	 

	 
		ANNEX A
	 

	 
		EXERCISE FORM
	 

	 
		The undersigned hereby irrevocably
		exercises, pursuant to the Agreement and Certificate of Option dated as of
		_________________, _____ (the “Option”), by and between Finlay
		Enterprises, Inc. (the “Corporation”) and the undersigned, the option
		to purchase ________ Shares of Common Stock (the “Subject Shares”) of
		the Corporation at the exercise price of $ _______ per Subject Share. Payment
		of the exercise price shall be made as follows:
	 

	 
			
				
				   
				

			 	
				
				  o
				

			 	
				
				  cash for $_______ enclosed
				  herewith
				

			 

 

	 
		[INCLUDE ONLY FOR NON-EXECUTIVE
		OFFICERS:
	 

	 
		and/or
	 

	 
			
				
				   
				

			 	
				
				  o
				

			 	
				
				  by cashless exercise in accordance
				  with the Corporation’s cashless exercise procedures as in effect from time
				  to time.]
				

			 

 

	 
		The undersigned o does o does not [select
		one] elect to have the Corporation withhold the number of Subject Shares needed
		to satisfy the undersigned’s tax withholding obligations. If the
		undersigned does not elect to have withholding taxes paid with Subject Shares,
		the undersigned further agrees to pay to the Corporation any withholding tax
		required by any federal, state and local statutes and regulations.
	 

	 
		Dated: ________________, _____
	 

	 
		 
	 

	 
			
				
				

			 	
				
				   
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  (Name of Option Grantee - Please
				  Type or Print)
				

			 

 

	 
		 
	 

	 
			
				
				

			 	
				
				   
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  (Signature of Option Grantee)

				

			 

 

	 
		 
	 

	 
			
				
				

			 	
				
				   
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  (Address-Please Type or
				  Print)
				

			 

 

	 
		 
	 

	 
			
				
				

			 	
				
				   
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  (Social Security No.)
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		-6-EXHIBIT 10.23(d)
	 

	 
		FORM OF AGREEMENT AND CERTIFICATE OF
		OPTION
	 

	 
		PURSUANT TO THE 2007 LONG TERM INCENTIVE
		PLAN 
	 

	 
		OF FINLAY ENTERPRISES, INC.
	 

	 
		(for awards granted after termination of
		
	 

	 
		Stockholders’ Agreement and
		Registration Rights Agreement)
	 

	 
		Agreement and Certificate of Option (this
		“Agreement”) dated ________, 20__ (the “Date of Grant”),
		between FINLAY ENTERPRISES, INC. (the “Corporation”) and
		_______________ (the “Grantee”):
	 

	 
			
				
				   
				

			 	
				
				  1.
				

			 	
				
				  The Option.
				

			 

 

	 
		(a) Subject to the provisions of this
		Agreement, the Corporation hereby grants to the Grantee a stock option (the
		“Option”) to purchase, on the terms and conditions herein set forth,
		up to ________ shares of the Corporation’s fully paid, non-assessable
		shares of Common Stock, par value $0.01 per share (the “Shares”), at
		the option price set forth in Section 2 below.
	 

	 
		(b) The Option is granted pursuant to the
		Corporation’s 2007 Long Term Incentive Plan (the “Plan”), a copy
		of which is delivered herewith by the Corporation and receipt thereof is
		acknowledged by the Grantee. The Option is subject in its entirety to all of
		the applicable provisions of the Plan which are incorporated herein by
		reference, and any conflict between the terms of this Agreement and those of
		the Plan shall be resolved in favor of the terms of the Plan. The Option is a
		“Nonqualified Stock Option” as that term is defined in the
		Plan.
	 

	 
			
				
				   
				

			 	
				
				  2.
				

			 	
				
				  Exercise Price.
				

			 

 

	 
		The purchase price of the Shares shall be
		$_______ per Share (the “Exercise Price”).
	 

	 
			
				
				   
				

			 	
				
				  3.
				

			 	
				
				  Exercise of
				  Option.
				

			 

 

	 
		(a) Except as otherwise provided in the Plan
		and this Agreement, the Option is exercisable over a period of ten (10) years
		from the date hereof (the “Option Period”) in accordance with the
		following schedule (the portion of the Option exercisable in accordance with
		such schedule being referred to herein as “Vested”):
	 

	 
		 
	 

	 
		 
	 

	 
		-1- 
	 

	 
		 
	 

	 

	 
	 

	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  Percent of Shares
				  Subject
				

			 
	
				
				  Date
				

			 	
				
				   
				

			 	
				
				  to Option Exercisable
				

			 
	
				
				  Commencing on the first anniversary
				  of the Date of Grant until (but not including) the second anniversary of the
				  Date of Grant
				

			 	
				
				   
				

			 	
				
				  [__]%
				

			 
	 	 	 
	
				
				  Commencing on the second anniversary
				  of the Date of Grant until (but not including) the third anniversary of the
				  Date of Grant
				

			 	
				
				   
				

			 	
				
				  [__]%
				

			 
	 	 	 
	
				
				  Commencing on the third anniversary
				  of the Date of Grant until (but not including) the fourth anniversary of the
				  Date of Grant
				

			 	
				
				   
				

			 	
				
				  [__]%
				

			 
	 	 	 
	
				
				  Commencing on the fourth anniversary
				  of the Date of Grant until (but not including) the fifth anniversary of the
				  Date of Grant
				

			 	
				
				   
				

			 	
				
				  [__]%
				

			 
	 	 	 
	
				
				  Commencing on the fifth anniversary
				  of the Date of Grant until (but not including) the tenth anniversary of the
				  Date of Grant
				

			 	
				
				   
				

			 	
				
				  [__]%
				

			 

 

	 
		Subject to the terms hereof, the Option may
		be exercised from time to time during the Option Period as to the total number
		of Shares allowable under this Section 3, or any lesser amount thereof, as long
		as the Grantee is employed by the Corporation. For purposes of this Agreement,
		employment by the Corporation or any Subsidiary (as defined in the Plan) shall
		be deemed to be employment by the Corporation.
	 

	 
		(b) In the event that the Grantee’s
		employment is terminated other than by reason of Retirement, death or
		Disability (as such terms are defined in the Plan), (1) any portion of the
		Option not yet Vested shall thereupon expire and terminate and (2) any portion
		of the Option that has Vested may be exercised during the period ending
		twenty-one (21) days following such termination, after which period any
		unexercised portion of the Option shall expire and terminate; provided, however, that in the event that the Grantee’s employment
		is terminated for Cause (as hereinafter defined), the Option or any unexercised
		portion thereof shall immediately upon such termination be permanently
		cancelled. 
	 

	 
		(c) In the event that the Grantee’s
		employment is terminated by reason of death, the entire Option (or any
		unexercised portion thereof) shall thereupon be deemed Vested and may be
		exercised during the period ending on (but not including) the first anniversary
		of such termination, and in the event that the Grantee’s employment is
		terminated by reason of Retirement or Disability, the entire Option (or any
		unexercised portion thereof) shall thereupon be deemed Vested and may be
		exercised during the period ending twenty-one (21) days following such
		termination, after which period any unexercised portion of the Option shall
		expire and terminate.
	 

	 
		(d) If this Option shall extend to one
		hundred (100) or more Shares, then this Option may not be exercised for less
		than one hundred (100) Shares at any one time, and if this Option shall extend
		to less than one hundred (100) Shares, then this Option must be exercised for
		all such Shares at one time.
	 

	 
		 
	 

	 
		 
	 

	 
		-2- 
	 

	 
		 
	 

	 
	 

	 

	 
		(e) The number of Shares to which the
		Grantee shall be entitled and the Exercise Price shall be proportionately and
		equitably adjusted in such manner as the Committee shall determine to maintain
		the economic value of the Option in the event any stock dividend, stock split,
		recapitalization, merger, reorganization, exchange of shares or similar event
		occurs in which the number or class of shares of Common Stock is changed
		without the receipt or payment of consideration by the Corporation. Nothing
		contained herein shall be deemed to require the Corporation to issue any
		fractional Shares, and any fractional Shares issuable upon exercise of the
		Option may, at the discretion of the Corporation, be settled in cash or
		otherwise or shall be forfeited or otherwise eliminated.
	 

	 
		(f) At such time as the Grantee desires to
		exercise the Option granted hereby, in whole or in part, the Grantee shall
		provide to the Corporation an Exercise Form in the form of Annex A hereto or in
		such other form authorized by the Corporation’s General Counsel. The
		Grantee’s signature at the place provided on said Exercise Form will
		evidence the Grantee’s election to purchase Shares of Common Stock
		pursuant to the terms and subject to the conditions and limitations contained
		in the Plan, in this Agreement and in said Exercise Form. The Option shall be
		considered exercised (in full or part, as the case may be) on the date such
		Exercise Form is received by the Secretary, together with payment of the
		Exercise Price for the Shares to be purchased plus any withholding tax required
		under any federal, state and local statutes. The Grantee may elect to have the
		amount of any withholding tax withheld from the Shares of Common Stock
		purchased. 
	 

	 
		(g) The Exercise Price shall be paid in full
		at the time of purchase of the Shares in cash or by check [ONLY INCLUDE FOR
		NON-EXECUTIVE OFFICERS: or by cashless exercise in accordance with the
		Corporation’s cashless exercise procedures as in effect from time to
		time]. If the Option is exercised in accordance with the provisions of the Plan
		and this Agreement, then the Corporation shall deliver to the Grantee
		certificates representing the number of Shares in respect of which the Option
		is being exercised, which Shares shall be registered in the Grantee’s
		name.
	 

	 
			
				
				   
				

			 	
				
				  4.
				

			 	
				
				  Additional Repurchase
				  Provisions.
				

			 

 

	 
		Notwithstanding anything to the contrary
		contained herein, in the event that the Grantee’s employment is terminated
		for Cause, the Corporation shall have the right, exercisable by written notice
		within twenty-one (21) days of such termination of employment, to repurchase
		from the Grantee (and any of Grantee’s Permitted Transferees, if
		applicable), any and all Shares theretofore purchased by the Grantee hereunder
		at a price per Share equal to the Exercise Price in respect of such Shares. For
		purposes of this Agreement, termination for “Cause” shall mean
		termination by reason of the Grantee’s fraud, dishonesty or commission of
		a crime, whether or not in the course of his or her employment. 
	 

	 
			
				
				   
				

			 	
				
				  5.
				

			 	
				
				  Transferability of Option and
				  Shares.
				

			 

 

	 
		(a) The Option is not transferable other
		than by will or by the laws of descent and distribution and during a
		Grantee’s lifetime is exercisable only by the Grantee. Any assignment in
		violation of this Section 5(a) shall be void and of no force or effect.
	 

	 
		(b) The transferability of the Option and
		the Shares is limited by applicable law.
	 

	 
		(c) Without limiting the generality of the
		foregoing, no purported sale, assignment or other transfer of the Shares shall
		be effective unless and until the transferee of the Shares so transferred
		executes and delivers to the Corporation its agreement, in form and substance
		satisfactory to the Corporation, to be bound by the provisions of this
		Agreement.
	 

	 
			
				
				   
				

			 	
				
				  6.
				

			 	
				
				  Covenants of the
				  Grantee.
				

			 

 

	 
		The Grantee’s exercise of the Option
		shall be subject to the Grantee acknowledging and agreeing to the following at
		the time of such exercise:
	 

	 
		 
	 

	 
		 
	 

	 
		-3- 
	 

	 
		 
	 

	 
	 

	 

	 
		(a) The Shares may not be sold or otherwise
		disposed of except in compliance with the Securities Act of 1933, as amended
		(the “Act”), and any applicable securities or “Blue Sky”
		laws of any state.
	 

	 
		(b) The Shares will not be sold,
		hypothecated, transferred or otherwise disposed of by the Grantee in any
		manner, directly or indirectly, (i) without registration thereof under the Act
		and any applicable Blue Sky laws unless an exemption from such registration is
		available and, if the Corporation so requests, the Grantee causes counsel
		satisfactory to the Corporation to deliver to the Corporation a reasoned
		written opinion of such counsel in form and substance satisfactory to the
		Corporation; or (ii) in violation of any law.
	 

	 
		(c) The certificate or certificates
		representing the Shares shall have an appropriate legend referring to the terms
		of this Option.
	 

	 
		(d) The Grantee acknowledges that in the
		event of termination of his or her employment with the Corporation, his or her
		rights to exercise this Option are restricted as set forth in Section 3
		above.
	 

	 
			
				
				   
				

			 	
				
				  7.
				

			 	
				
				  General
				  Provisions.
				

			 

 

	 
		This Agreement is subject in all respects to
		the terms and conditions of the Plan, which terms and conditions the Grantee is
		deemed to accept and consent to by the Grantee’s acceptance of the Option.
		Nothing contained in this Agreement shall confer upon the Grantee any right to
		continue in the employ of the Corporation or any of it Subsidiaries or shall in
		any way affect the right and power of the Corporation or any of its
		Subsidiaries to dismiss or otherwise terminate the employment of the Grantee at
		any time for any reason with or without cause. This Agreement shall be governed
		and construed in accordance with the laws of the State of Delaware. Any dispute
		arising hereunder shall be brought before a court of competent jurisdiction in
		the City, County and State of New York.
	 

	 
		If the foregoing is in accordance with the
		Grantee’s understanding and accepted and agreed to by the Grantee, the
		Grantee may so confirm by signing and returning the duplicate of this Agreement
		delivered for that purpose.
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  FINLAY ENTERPRISES, INC.
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Arthur E. Reiner

				  Chairman and CEO
				

			 

 

	 
		The foregoing is in accordance with my
		understanding and is hereby accepted and agreed.
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  GRANTEE
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Date:
				

			 	 

 

	 
		 
	 

	 
		 
	 

	 
		-4- 
	 

	 
		 
	 

	 
	 

	 

	 
		ANNEX A
	 

	 
		EXERCISE FORM
	 

	 
		The undersigned hereby irrevocably
		exercises, pursuant to the Agreement and Certificate of Option dated as of
		_________________, _____ (the “Option”), by and between Finlay
		Enterprises, Inc. (the “Corporation”) and the undersigned, the option
		to purchase ________ Shares of Common Stock (the “Subject Shares”) of
		the Corporation at the exercise price of $ _______ per Subject Share. Payment
		of the exercise price shall be made as follows:
	 

	 
			
				
				   
				

			 	
				
				  o
				

			 	
				
				  cash for $_______ enclosed
				  herewith
				

			 

 

	 
		[INCLUDE ONLY FOR NON-EXECUTIVE
		OFFICERS:
	 

	 
		and/or
	 

	 
			
				
				   
				

			 	
				
				  o
				

			 	
				
				  by cashless exercise in accordance
				  with the Corporation’s cashless exercise procedures as in effect from time
				  to time.]
				

			 

 

	 
		The undersigned o does o does not [select one]
		elect to have the Corporation withhold the number of Subject Shares needed to
		satisfy the undersigned’s tax withholding obligations. If the undersigned
		does not elect to have withholding taxes paid with Subject Shares, the
		undersigned further agrees to pay to the Corporation any withholding tax
		required by any federal, state and local statutes and regulations.
	 

	 
		Dated: ________________, _____
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  (Name of Option Grantee - Please
				  Type or Print)
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  (Signature of Option Grantee)

				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  (Address-Please Type or
				  Print)
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  (Social Security No.)
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		-5-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]