Document:

EXHIBIT 10.24
	 

	 
		FINLAY ENTERPRISES,
		INC.
	 

	 
		CASH BONUS PLAN
	 

	 
		ARTICLE
		1—DEFINITIONS
	 

	 
		The following terms have the
		meanings indicated unless a different meaning is clearly required by the
		context:
	 

	 
		1.1 “Board of
		Directors” means the Board of Directors of the Corporation.
	 

	 
		1.2 “Code” means the
		Internal Revenue Code of 1986, as amended.
	 

	 
		1.3 “Committee” means
		the Compensation Committee of the Board of Directors or a subcommittee thereof.
		The Committee at all times shall be composed of at least two directors of
		Finlay Enterprises, Inc., each of whom shall be “outside directors”
		within the meaning of Section 162(m) of the Code.
	 

	 
		1.4 “Corporation”
		means Finlay Enterprises, Inc. and its and their subsidiaries.
	 

	 
		1.5 “Executive
		Officer” has the meaning set forth in Rule 3b-7 promulgated under the
		Securities Exchange Act of 1934, as amended.
	 

	 
		1.6 “Participant”
		means an individual who participates in the Plan pursuant to Section 3.1

	 

	 
		1.7 “Plan” means the
		Finlay Enterprises, Inc. Cash Bonus Plan, as amended from time to time.
	 

	 
		ARTICLE
		2—PURPOSE
	 

	 
		The purpose of the Plan is to
		provide annual incentives to certain senior executive officers in a manner
		designed to reinforce the Corporation’s performance goals; to link a
		significant portion of participants’ compensation to the achievement of
		such goals; and to continue to attract, motivate and retain key executives on a
		competitive basis, while seeking to preserve for the benefit, to the extent
		practicable, a tax deduction by the Corporation for payments of incentive
		compensation to such executives through payment of qualified
		“performance-based” compensation within the meaning of Section
		162(m)(4)(C) of the Code.
	 

	 
		ARTICLE
		3—PARTICIPATION
	 

	 
		3.1 Participants in the Plan
		are those Executive Officers who are designated by the Committee to participate
		in the Plan from time to time.
	 

	 
		ARTICLE 4—PERFORMANCE
		GOALS
	 

	 
		4.1 Prior to the ninety-first
		(91st) day of each fiscal year of the Corporation, but no later than the
		expiration of the first 25% of any performance period of less than one year,
		the Committee shall set one or more objective performance goals for each
		Participant for such year or period, as the case may be. Such goals shall be
		expressed in terms of the attainment of specified levels of one or any
		variation or combination of the following: revenues, net revenues, cost
		reductions and savings, operating income, 
	 

	 
		 
	 

	 
		 
	 

	 
		-1- 
	 

	 
		 
	 

	 
	 

	 

	 
		income before taxes, net
		income, adjusted net income, earnings before interest, taxes, depreciation and
		amortization (EBITDA), earnings per share, adjusted earnings per share,
		operating margins, stock price, working capital measures, return on assets,
		return on revenues or productivity, return on equity, return on invested
		capital, cash flow measures, market share, stockholder return or economic value
		added. In addition, the Committee may establish, as an additional performance
		measure, the attainment by a participant in the Cash Bonus Plan of one or more
		personal objectives and/or goals that the Committee deems appropriate,
		including but not limited to implementation of Corporation policies,
		negotiation of significant corporate transactions, development of long-term
		business goals or strategic plans for the Corporation, or the exercise of
		specific areas of managerial responsibility. Each goal may be expressed on an
		absolute and/or relative basis, may include comparisons with past performance
		of the Corporation (including one or more divisions thereof, if any) and/or the
		current or past performance of other companies.
	 

	 
		4.2 Except as otherwise
		provided herein, the measures used in performance goals set under the Plan
		shall be determined in accordance with generally accepted accounting principles
		(“GAAP”) and in a manner consistent with the methods used in the
		Corporation’s Annual Reports on Form 10-K and Quarterly Reports on Form
		10-Q, without regard, however, to any of the following unless otherwise
		determined by the Committee consistent with the requirements of Section
		162(m)(4)(C) of the Code and the regulations thereunder: 
	 

	 
		(a) all items of gain, loss or
		expense for the fiscal year that are related to special, unusual or
		non-recurring items, events or circumstances affecting the Corporation or the
		financial statements of the Corporation; 
	 

	 
		(b) all items of gain, loss or
		expense for the fiscal year that are related to (i) the disposal of a business
		or discontinued operations or (ii) the operations of any business acquired by
		the Corporation during the fiscal year; and
	 

	 
		(c) all items of gain, loss or
		expense for the fiscal year that are related to changes in accounting
		principles or to changes in applicable law or regulations.
	 

	 
		4.3 To the extent any objective
		performance goals are expressed using any earnings or revenue-based measures
		that require deviations from GAAP, such deviations shall be at the discretion
		of the Committee except that the items in (a) through (c) in Section 4.2 shall
		be disregarded unless determined otherwise by the Committee.
	 

	 
		The Committee will not have
		discretion to increase bonus amounts over the level determined by application
		of the performance goal formula(s) and will be required to certify that the
		performance goals underlying the bonus payments have been satisfied.
	 

	 
		ARTICLE 5—BONUS
		AWARDS
	 

	 
		5.1 At the time that annual
		performance goals are set for Participants, the Committee shall establish a
		maximum award opportunity for each Participant for the performance year or any
		period of less than one year. The maximum award opportunity shall be related to
		the Participant’s base salary at the start of the performance year or such
		other period by a formula that takes account of the degree of achievement of
		the goals set for the Participant.
	 

	 
		5.2 The maximum award paid to a
		Participant in respect of a particular fiscal year shall in no event exceed $2
		million.
	 

	 
		5.3 Bonuses determined under
		the Plan shall be paid to Participants in cash at such time as bonuses are
		generally paid to other Executive Officers; provided, however, that no such
		payment shall be made until the Committee has certified (in the manner
		prescribed under applicable regulations under Section 162(m) of the Code) that
		the performance goals and any other material terms related to the award 

	 

	 
		 
	 

	 
		 
	 

	 
		-2- 
	 

	 
		 
	 

	 
	 

	 

	 
		were in fact satisfied; and
		provided further that the timing of any such payment may be deferred pursuant
		to an agreement between the Corporation and a Participant.
	 

	 
		5.4 In the event of the death
		of a Participant after the end of a fiscal year and prior to any payment
		otherwise required pursuant to Section 5.3 hereof, such payment shall be made
		to the designated beneficiary of the Participant or, if no beneficiary shall
		have been designated, the representative of the Participant’s
		estate.
	 

	 
		5.5 The Committee shall have
		the absolute discretion to determine amounts payable under the Plan in the
		event of the death, disability, retirement or other termination of employment
		of a Participant during a fiscal year, subject to the terms of any bonus
		arrangements agreed to by the Corporation and the Participant pursuant to a
		written agreement or otherwise.
	 

	 
		5.6 The right of a Participant
		or of any other person to any payment under the Plan shall not be assigned,
		transferred, pledged or encumbered in any manner, and any attempted assignment,
		transfer, pledge or encumbrance shall be null and void and of no force or
		effect.
	 

	 
		ARTICLE
		6—ADMINISTRATIVE PROVISIONS
	 

	 
		6.1 The Plan shall be
		administered by the Committee. The Committee shall have full, exclusive and
		final authority in all determinations and decisions affecting the Plan and
		Participants, including sole authority to interpret and construe any provision
		of the Plan, to adopt such rules and regulations for administering the Plan as
		it may deem necessary or appropriate under the circumstances, and to make any
		other determination it deems necessary or appropriate for the administration of
		the Plan. Decisions of the Committee shall be final and conclusive, and binding
		on all parties. All expenses of the Plan shall be borne by the
		Corporation.
	 

	 
		6.2 No member of the Committee
		shall be liable for any action, omission, or determination relating to the
		Plan, and the Corporation shall indemnify and hold harmless each member of the
		Committee and each other director or employee of the Corporation or its
		affiliates to whom any duty or power relating to the administration or
		interpretation of the Plan has been delegated against any cost or expense
		(including counsel fees, which fees shall be paid as incurred) or liability
		(including any sum paid in settlement of a claim with the approval of the
		Committee) arising out of or in connection with any action, omission or
		determination relating to the Plan, unless, in each case, such action, omission
		or determination was taken or made by such member, director or employee in bad
		faith and without reasonable belief that it was in the best interests of the
		Corporation.
	 

	 
		ARTICLE
		7—MISCELLANEOUS
	 

	 
		7.1 The Plan shall become
		effective on June 19, 2007 and shall apply beginning with bonuses earned in
		respect of the Corporation’s fiscal year beginning February 3,
		2008.
	 

	 
		7.2 The Board of Directors may
		at any time amend the Plan in any fashion or terminate or suspend the Plan,
		provided that (a) no amendment shall be made which would cause bonuses payable
		under the Plan to fail to qualify for the exemption from the limitations of
		Section 162(m) of the Code provided in Section 162(m)(4)(C) of the Code and (b)
		no such action shall adversely affect a Participant’s rights under the
		Plan with respect to bonus arrangements agreed to by the Corporation and the
		Participant, pursuant to a written agreement or otherwise, before the date of
		such action, without the consent of the Participant.
	 

	 
		7.3 The Plan shall be governed
		by and construed in accordance with the internal laws of the State of New York
		applicable to contracts made, and to be wholly performed, within such State,
		without regard to principles of choice of laws.
	 

	 
		7.4 All amounts required to be
		paid under the Plan shall be subject to any required Federal, state, local and
		other applicable withholdings or deductions.
	 

	 
		 
	 

	 
		 
	 

	 
		-3- 
	 

	 
		 
	 

	 
	 

	 

	 
		7.5 Nothing contained in the
		Plan shall confer upon any Participant or any other person any right with
		respect to the continuation of employment by the Corporation or interfere in
		any way with the right of the Corporation at any time to terminate such
		employment or to increase or decrease the compensation payable to the
		Participant from the rate in effect at the commencement of a fiscal year or to
		otherwise modify the terms of such Participant’s employment. No person
		shall have any claim or right to participate in or receive any award under the
		Plan for any particular fiscal year or any part thereof.
	 

	 
		7.6 The Corporation’s
		obligation to pay a Participant any amounts under the Plan shall be subject to
		setoff, counterclaim or recoupment of amounts owed by a Participant to the
		Corporation.
	 

	 
		 
	 

	 
		 
	 

	 
		-4-EXHIBIT 10.23(a)
	 

	 
		FORM OF RESTRICTED STOCK
		AGREEMENT
	 

	 
		UNDER THE 2007 LONG TERM
		INCENTIVE PLAN
	 

	 
		OF FINLAY ENTERPRISES,
		INC.
	 

	 
		(for awards granted prior to
		termination of 
	 

	 
		Stockholders’ Agreement
		and Registration Rights Agreement)
	 

	 
		AGREEMENT, made as of                ,
		20      , between FINLAY ENTERPRISES,
		INC., a Delaware corporation (the “Company”), and                          (the “Grantee”).
	 

	 
		1. Purpose. The purpose of this Restricted Stock Agreement (the
		“Agreement”) is to provide an incentive and reward to the Grantee,
		who, through employment and by the Grantee’s industry and exceptional
		service, will continue to contribute to the growth and development of the
		Company.
	 

	 
		2. Shares Awarded.
	 

	 
		(a) Subject to the terms of
		this Agreement, provided that the Grantee is at such time employed by the
		Company or its Subsidiaries (as defined in the Plan), the Company shall issue
		to the Grantee, on                        , 20      (the “Vesting Date”) or as soon
		thereafter as is reasonably practicable but in no event later than 60 days
		after the Vesting Date,                      shares of common stock, $.01 par value
		(“Common Stock”), of the Company (the “Shares”), which
		Shares shall be fully vested on the Vesting Date but shall be subject to the
		restrictions set forth herein.
	 

	 
		(b) The Shares are granted
		pursuant to the Company’s 2007 Long Term Incentive Plan (the
		“Plan”). The Shares are subject 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.
	 

	 
		(c) Notwithstanding anything to
		the contrary herein contained, in the event (i) that the Grantee’s
		employment is terminated by reason of the Grantee’s death or Disability
		(as such term is defined in the Plan), or (ii) upon the occurrence of a Change
		in Control (as defined below), then in any such case, all of the Shares shall
		be deemed immediately vested and the Shares shall be distributed to the Grantee
		or his or her estate (as applicable) as promptly as possible thereafter but in
		no event later than 60 days following the vesting date.
	 

	 
		(d) A “Change in
		Control” shall be deemed to have occurred if: (i) the stockholders of the
		Company shall have approved: (A) any consolidation or merger of the Company in
		which the Company is not the continuing or surviving corporation or pursuant to
		which shares of Common Stock would be converted into cash, securities or other
		property, other than a merger of the Company in which the holders of Common
		Stock immediately prior to the merger have the same proportionate ownership of
		common stock of the surviving corporation immediately after the merger; (B) any
		sale, lease, exchange or other transfer (in one transaction or a series of
		related transactions) of all, or substantially all, of the assets of the
		Company; or (C) the adoption of any plan or proposal for the liquidation or
		dissolution of the Company; (ii) any person (as defined in Sections 13(d)(3)
		and 14(d)(2) of the Exchange Act), corporation or other entity (other than the
		Company or any employee benefit plan sponsored by the Company or any
		subsidiary) shall have become the “beneficial owner” (as defined in
		Rule 13d-3 of the Exchange Act), directly or indirectly, 
	 

	 
		 
	 

	 
		 
	 

	 
		-1-
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		of securities of the Company
		representing 30% or more of the issued and outstanding Common Stock; or (iii)
		individuals who on the date of the adoption of the Plan constituted the entire
		Board of Directors shall have ceased for any reason to constitute a majority
		unless the election, or the nomination for election by the Company’s
		stockholders, of each new director was approved by a vote of at least a
		majority of the directors then still in office.
	 

	 
		3. Certificates.
	 

	 
		(a) Certificates. Upon issuance by the Company to the Grantee of the
		Shares in accordance with Section 2 hereof, the Company shall deliver to the
		Grantee or his or her estate (as applicable) a certificate covering such
		Shares, which shall be in the name of the Grantee or such estate and shall have
		stamped thereon the legends set forth in Section 6 hereof.
	 

	 
		(b) Adjustments. In the event that 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 Company, the number
		and/or type of securities issuable to the Grantee pursuant to Section 2 hereof
		after the effective date of such event shall be proportionately and equitably
		adjusted in such manner as the Committee shall determine in order to retain the
		economic value or opportunity to the Grantee under this Agreement. 
	 

	 
		4. Stockholders’ and Registration Rights
		Agreements.
	 

	 
		It is a condition to the grant
		of any Shares hereunder that the Grantee execute and deliver to the Company,
		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, each as amended (respectively, the “Stockholders’
		Agreement” and the “Registration Rights Agreement”), by and
		among the Company, David B. Cornstein, Arthur E. Reiner and certain other
		parties. If the Grantee fails to enter into such agreements within 60 days of
		the Vesting Date, the Shares hereunder shall be forfeited. 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 Shares (and any other securities issued to the Grantee
		pursuant to Section 3(b) hereof). Capitalized terms used but not otherwise
		defined herein, shall have the same meaning as defined in the
		Stockholders’ Agreement.
	 

	 
		5. Restrictions on
		Transfer.
		The Grantee hereby
		represents and warrants to and agrees with the Company as follows:
	 

	 
		The Shares (and any other
		securities issued to the Grantee pursuant to Section 3(b) hereof) will not be
		sold, exchanged, pledged, hypothecated, transferred or otherwise disposed of by
		the Grantee in any manner, directly or indirectly, (i) without registration
		thereof under the Securities Act of 1933, as amended, and any applicable state
		“Blue Sky” laws unless an exemption from such registration is
		available and, if the Company so requests, the Grantee causes counsel
		satisfactory to the Company to deliver to
		the Company a written opinion of such counsel in form and substance
		satisfactory to the Company; or (ii) in violation of any law; or (iii) in
		violation of the Stockholders’ Agreement or the Registration Rights
		Agreement.
	 

	 
		 
	 

	 
		 
	 

	 
		-2-
	 

	 
		 
	 

	 
	 

	 

	 
		6. Restrictive Legends. All certificates representing Shares
		issued hereunder (and all certificates representing any other securities issued
		to the Grantee pursuant to Section 3(b) hereof) shall bear restrictive legends
		thereon substantially as follows:
	 

	 
		“THE SALE, ASSIGNMENT,
		TRANSFER OR OTHER DISPOSITION OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE
		IS SUBJECT TO THE PROVISIONS OF A RESTRICTED STOCK AGREEMENT DATED AS OF
		                    , 20      BETWEEN THE COMPANY AND THE HOLDER, AND AN
		AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT DATED AS OF MARCH 6, 1995 AND
		A REGISTRATION RIGHTS AGREEMENT, DATED AS OF MAY 26, 1993, EACH AS AMENDED, BY
		AND AMONG THE COMPANY, DAVID B. CORNSTEIN, ARTHUR E. REINER AND CERTAIN OTHER
		PARTIES, COPIES OF WHICH ARE ON FILE WITH THE SECRETARY OF THE
		COMPANY.”
	 

	 
		“THE SHARES REPRESENTED
		BY THIS CERTIFICATE ARE HELD BY AN AFFILIATE OF THE COMPANY (AS DEFINED IN RULE
		144 OF THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”)), AND MAY
		ONLY BE TRANSFERRED (i) TO THE EXTENT APPLICABLE, PURSUANT TO RULE 144 UNDER
		THE ACT (OR ANY SIMILAR RULE UNDER SUCH ACT RELATING TO THE DISPOSITION OF
		SECURITIES), OR (ii) UPON THE DELIVERY BY THE HOLDER TO THE COMPANY OF AN
		OPINION OF COUNSEL, SATISFACTORY TO COUNSEL TO THE COMPANY, STATING THAT
		COMPLIANCE WITH RULE 144 IS UNNECESSARY.”
	 

	 
		7. General Provisions. Nothing contained in this Agreement shall confer upon
		the Grantee any right to continue in the employ of the Company or shall in any
		way affect the right and power of the Company 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. This
		Agreement shall be binding upon the heirs, executors, administrators and
		successors of the parties hereto.
	 

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

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  FINLAY ENTERPRISES,
				  INC.
				

			 
	 	 	 	 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name: Arthur E.
				  Reiner
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title: Chairman and
				  CEO
				

			 

 

	 
		 
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  THE GRANTEE:
				

			 
	 	 	 	 
	 	 	 	 
	
				
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Signature
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		-3-

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"}]]