Document:

Unassociated Document

    Exhibit
10.2(b)(ii)

     

    December
4, 2008

     

    Mr.
Joseph Melvin

    133
Stephen Mather Road

    Darien,
CT 06820

     

    Dear
Joseph:

     

    This
letter (the “2008 Letter”) supplements the letter dated April 18, 1997 (the
“1997 Letter”) that confirms the terms of your employment as President and Chief
Operating Officer of Finlay Fine Jewelry Corporation (the “Company”). The
purpose of this 2008 Letter is to clarify the time and form of payments
specified under the 1997 Letter with the intent of addressing Section 409A of
the Internal Revenue Code of 1986, as amended.

     

    
      Except as
set forth below, the 1997 Letter remains in effect. Capitalized terms used and
not otherwise defined in this 2008 Letter have the meaning ascribed to them in
the 1997 Letter.

       

      
        
          
            
              
                	
                        Annual
      Bonus:

                      	
                        The
      Annual Bonus, if any, shall be paid no later than March 15th
      of the calendar year following the end of the calendar year in which the
      applicable fiscal year to which such Annual Bonus relates
      ends.

                      
	 	 
	
                        Severance:

                      	
                        Upon
      termination of your employment by the Company without cause (not including
      death or disability) or if you terminate employment with the Company
      because the Company gives you a lesser title, you shall receive one year
      of Base Salary payable in accordance with the Company’s payroll practices
      and subject to the Delay Period set forth under the Subsection (c) of the
      Section titled “Code Section 409A” below.

                      
	 	 
	
                        Code
      Section 409A:

                      	
                        (a)             It
      is intended that the payments and benefits under the 1997 Letter, as
      supplemented by this 2008 Letter (collectively, the “Letters”) be exempt
      from, or comply with, Section 409A of Code and the regulations and
      guidance promulgated thereunder (collectively “Code Section 409A”), and
      all provisions of the Letters shall be construed in a manner consistent
      with the requirements under Code Section 409A.  The Company
      shall have no liability to you with regard to any failure to comply with
      Code Section 409A.

                      
	 	 
	 	
                        (b)             A
      termination of employment shall not be deemed to have occurred for
      purposes of any provision of the Letters providing for the payment of any
      amounts or benefits upon or following a termination of employment unless
      such termination is also a “Separation from Service” within the meaning of
      Code Section 409A and, for purposes of any such provision of the Letters,
      references to “termination,” “termination of employment” or like terms
      shall mean Separation from
Service.

                      

              

            

          

        

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        Mr.
Joseph Melvin

        December
4, 2008

        Page
2

      

       

      
        
          
            
              	 
      	
                      (c)             Solely
      to the extent any payments and/or benefits provided pursuant to the
      Letters constitute “deferred compensation” as defined under Code Section
      409A, if you are deemed on the date of termination of your employment to
      be a “specified employee,” within the meaning of that term under Section
      409A(a)(2)(B) of the Code and using the identification methodology
      selected by the Company from time to time, or if none, the default
      methodology, then any such payment or benefit, to the extent required to
      be delayed in compliance with Section 409A(a)(2)(B) of the Code, shall not
      be made or provided prior to the earlier of (i) the expiration of the
      six-month period measured from the date of your Separation from Service or
      (ii) the date of your death (the “Delay Period”).  On the first
      day of the seventh month following the date of your Separation from
      Service or, if earlier, on the date of your death, all payments delayed
      pursuant to this Subsection (c) (whether they would have otherwise
      been payable in a single sum or in installments in the absence of such
      delay) shall be paid or reimbursed to you in a lump sum, and any remaining
      payments and benefits due under the Letters shall be paid or provided in
      accordance with the normal payment dates set forth in the
      Letters.  Promptly following the expiration of such six-month
      period, all compensation suspended pursuant to the foregoing sentence
      (whether it would have otherwise been payable in a single sum or in
      installments in the absence of such suspension) shall be paid or
      reimbursed to you in a lump sum.

                    
	 	 
	 	
                      (d)
      With regard to any provision in the Letters that provides for
      reimbursement of costs and expenses or in-kind benefits, except as
      permitted by Code Section 409A, (i) the right to reimbursement or in-kind
      benefits shall not be subject to liquidation or exchange for another
      benefit, (ii) the amount of expenses eligible for reimbursement, or
      in-kind benefits, provided during any taxable year shall not affect the
      expenses eligible for reimbursement, or in-kind benefits to be provided,
      in any other taxable year, provided, that
      the foregoing clause (ii) shall not be violated with regard to expenses
      reimbursed under any arrangement covered by Section 105(b) of the
      Code solely because such expenses are subject to a limit related to the
      period the arrangement is in effect, and (iii) such payments shall be made
      on or before the last day of your taxable year following the taxable year
      in which the expense was
incurred.

                    

            

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        Mr.
Joseph Melvin

        December
4, 2008

        Page
3

      

       

      If you
agree with the terms of this 2008 Letter clarifying the time and form of
payments specified under the 1997 Letter, please so indicate by signing and
returning the enclosed copy, whereupon this letter shall constitute a binding
agreement between you and the Company.

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	 	Sincerely,
	 	 
	 
      	
                                      FINLAY
      FINE JEWELRY CORPORATION

                                    
	 
      	
                                      By:

                                    	
                                      /s/ Joyce Manning

                                    
	 
      	 
      	
                                      Name:
      Joyce Manning

                                    
	 
      	 
      	
                                      Title
      EVP Administration

                                    
	 
      	 
      	 
      
	
                                      Accepted
      and agreed:

                                    	 
      	 
      
	 
      	 
      	 
      
	 /s/ Joseph
      Melvin	 	 	 
	
                                      Joseph
      MelvinExhibit
10.2(e)(i)

     

    AMENDMENT
NO. 1

     

    TO

     

    EMPLOYMENT
AGREEMENT

     

    AMENDMENT (“Amendment”) made
as of this 7th day of November, 2008 to the employment agreement dated as of
February 28, 2006, as amended (the “Employment Agreement”), among Finlay Fine
Jewelry Corporation, a Delaware Corporation (the “Company”), and Bruce E.
Zurlnick (the “Executive”).

     

    WHEREAS, the Company and the
Executive have previously entered into the Employment Agreement;
and

     

    WHEREAS, the Company and the
Executive desire to amend the Employment Agreement.

     

    NOW, THEREFORE, effective as
of November 7, 2008, the Employment Agreement is hereby amended as
follows:

     

    1.           Section
2 of the Employment Agreement is hereby amended to insert a new sentence at the
end thereof to read as follows:

     

    “Any
reimbursements made pursuant to this Section 5 shall be subject to Section 8(d)
hereof.”

     

    2.           Sections
4(a) and (b) of the Employment Agreement are amended in their entirety to read
as follows:

     

    “4(a)  If
the Company terminates your employment at any time for any reason other than
“good cause” or pursuant to section 4(b) below, subject to the following
sentence, you shall be entitled to receive, as severance pay, in a lump sum, an
amount equal to the greater of (i) your Base Salary at your then current rate up
to an including February 28, 2009 or (ii) one year’s Base Salary at your then
current rate plus one year’s bonus calculated by averaging the Annual Bonus
amounts paid or payable to your over the course of the prior three fiscal
years.  The foregoing payment shall be made within sixty (60) days
following such termination, provided that you have executed and delivered a
release and waiver of all claims against the Company relating to employment in a
form satisfactory to the Company (the “Release”), and such Release is no longer
subject to revocation, if applicable, within such sixty (60) day
period.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)  In
the event your employment is terminated by reason of your death, Total
Disability, by you voluntarily or by the Company with or without “good cause,”
you shall receive (i) any accrued but unpaid salary for services rendered
through and including the date of your death, payable in accordance with the
Company’s normal payroll practices, (ii) any accrued but unpaid expenses,
payable in accordance with the Company’s policy, subject to Section 8(b), and
(iii) any benefits to which you may be entitled pursuant to the Company’s
employee benefits plans then in effect.”

     

    3.           A
new Section 8 is hereby inserted at the end of Section 7 of the Employment
Agreement to read as follows:

     

    “8.  Section 409A of the
Code.

     

    (a)  It
is intended that the payments and benefits under this Agreement be exempt from,
or comply with, Section 409A of Code and the regulations and guidance
promulgated thereunder (collectively “Code Section 409A”), and all provisions of
this Agreement shall be construed in a manner consistent with the requirements
for avoiding taxes or penalties under Code Section 409A.  The Company
shall have no liability with regard to any failure to comply with Code Section
409A.

     

    (b)  A
termination of employment shall not be deemed to have occurred for purposes of
any provision of this Agreement providing for the payment of any amounts or
benefits upon or following a termination of employment unless such termination
is also a “Separation from Service” within the meaning of Section 409A and, for
purposes of any such provision of this Agreement, references to a “termination,”
“termination of employment” or like terms shall mean Separation from
Service.

     

    (c)  Solely
to the extent any payments and/or benefits provided pursuant to this Agreement
constitute “deferred compensation” as defined under Code Section 409A, if you
are deemed on the date of termination of your employment to be a “specified
employee,” within the meaning of that term under Section 409A(a)(2)(B) of the
Code and using the identification methodology selected by the Company from time
to time, or if none, the default methodology, then any such payment or benefit,
to the extent required to be delayed in compliance with Section 409A(a)(2)(B) of
the Code, shall not be made or provided prior to the earlier of (i) the
expiration of the six-month period measured from the date of your Separation
from Service or (ii) the date of your death (the “Delay. Period”).  On
the first day of the seventh month following the date of your Separation from
Service or, if earlier, on the date of your death, all payments delayed pursuant
to this Section 8(c) (whether they would have otherwise been payable in a single
sum or in installments in the absence of such delay) shall be paid or reimbursed
to you in a lump sum, and any remaining payments and benefits due under this
Agreement shall be paid or provided in accordance with the normal payment dates
specified for them herein.  Promptly following the expiration of such
six-month period, all compensation suspended pursuant to the foregoing sentence
(whether it would have otherwise been payable in a single sum or in installments
in the absence of such suspension) shall be paid or reimbursed to you in a lump
sum.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d)  With
regard to any provision herein that provides for reimbursement of costs and
expenses or in-kind benefits, except as permitted by Code Section 409A, (i) the
right to reimbursement or in-kind benefits shall not be subject to liquidation
or exchange for another benefit, (ii) the amount of expenses eligible for
reimbursement, or in-kind benefits, provided during any taxable year shall not
affect the expenses eligible for reimbursement, or in-kind benefits to be
provided, in any other taxable year, provided, that the
foregoing clause (ii) shall not be violated with regard to expenses reimbursed
under any arrangement covered by Section 105(b) of the Code solely because such
expenses are subject to a limit related to the period the arrangement is in
effect, and (iii) such payments shall be made on or before the last day of your
taxable year following the taxable year in which the expense was
incurred.”

     

    IN WITNESS WHEREOF, the
undersigned has caused this Amendment to be executed this 7th day of November,
2008.

    
       

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        	 	EXECUTIVE
	 	 
	 
      	
                                                                /s/ Bruce Zurlnick

                                                              
	 
      	
                                                                Bruce
      Zurlnick

                                                              
	 
      	 
      
	 
      	
                                                                FINLAY
      FINE JEWELRY CORPORATION

                                                              
	 	 
	 
      	

                                                                By

                                                              	     /s/ Joyce Manning
      Magrini
	 
      	 
      	
                                                                Name:   Joyce
      Manning Magrini

                                                              
	 
      	 
      	
                                                                Title:     EVP
      Administration

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